Mar 31, 2015
Note :
a) Clean Overdraft Facility and Cash Credit Facility is secured by
equitable mortgage by deposit of title deeds of office premises of the
Company situated at Andheri(Mumbai) and further secured by
hypothecation of book debts/ receivables and other current assets of
the Company.
b) Clean Overdraft Facility and Cash Credit Facility is repayable on
demand subject to annual review. The rate of interest for Clean
Overdraft Facility is Base Rate 5.70% and Base Rate 4.70% on Cash
Credit Facility.
* Amount Written off in respect of Leasehold land for the period of
lease which has expired.
** Building was revalued on 1st April, 2005 with reference to the fair
market value; amount added on revaluation was Rs.76,558,113; the
revalued amount substituted for historical cost on 1st April 2005 was
Rs. 126,130,511, based on report issued by approved independent valuer.
Note:
1 Adjustments/ deductions include obsolete fixed assets discarded
during the year. Cost Rs. 168758/- accumulated depreciation and
amortization Rs. 168758/- (Previous year Cost Rs.405523/- and
depreciation and amortization Rs 302100/-)
2 Consequent to enactment of the Companies Act, 2013 and its
applicability w.e.f. 1st April 2014, the Company has reworked
depreciation on the basis of the useful lives of assets as prescribed
in Part 'C' of schedule II of the Act. As a result depreciation for the
year ended 31st March, 2015 is lower by Rs.634,536 due to change in the
useful lives of certain assets.
In case of assets where the remaining useful life as on 1st April 2014
is Nil, the carrying amount of such assets have been adjusted to the
opening balance of Retained Earnings after retaining their residual
value. Accordingly, a sum of Rs. 2,822,670 has been adjusted against
Opening Reserves.
1. The Company, considering the erosion/substantial erosion in the
net worth of its wholly-owned subsidiaries located at U.S.A., U.K. and
Singapore, had made provision for diminution in the value of
investments in the said subsidiaries aggregating to Rs. 214,674,767
(Previous year Rs.214,674,767) and for doubtful loans/advances given to
said subsidiaries aggregating to Rs.114,306,058 (Previous year
Rs.114,306,058) and also for doubtful debts being debts due from one of
the step down subsidiary located at UK and a wholly-owned subsidiary
located at U.S.A. of Rs.17,167,788(Previous year Rs. 17,167,788).
The two subsidiaries and one step down subsidiary, located at U.K.
stands dissolved in the earlier year. Pursuant to application made to
the Regulatory Authority, the name of the subsidiary located at
Singapore had been Struck Off in the earlier year.
Consequent to such dissolutions/ struck off, the Company is in the
process of seeking approvals from the Reserve Bank of India (RBI), for
writing off these amounts from the books of account. The Company would
make the necessary adjustments as and when approvals from the RBI are
received. Such adjustments would have no impact on the Profit and Loss
Account.
2. In the earlier year, the Company had given Inter Corporate
Deposits to one party amounting to Rs. 17,854,503 including interest
accrued thereon. This deposits is due for repayment for more than six
months. Consequent to liquidation proceedings initiated against the
said party, the Company has provided Rs.17,854,503 (including interest)
towards doubtful advances, being Exceptional Item.
3. Consequent to enactment of the Companies Act, 2013 and its
applicability w.e.f. 1st April 2014, the Company has reworked
depreciation on the basis of the useful lives of assets as prescribed
in Part 'C' of schedule II of the Act. As a result depreciation for the
year ended 31st March, 2015 is lower by Rs.634,536 due to change in the
useful lives of certain assets.
In case of assets where the remaining useful life as on 1st April 2014
is Nil, the carrying amount of such assets have been adjusted to the
opening balance of Retained Earnings after retaining their residual
value. Accordingly, a sum of Rs. 2,822,670 has been adjusted against
Opening Reserves.
The deferred tax assets, not recognized as at the year end on the basis
of prudence, would be accounted for in the subsequent year/years
considering the requirements of the Accounting Standard (AS) 22 on "
Accounting for Taxes on Income", regarding reasonable/virtual certainty
and the accounting policy followed by the Company in this respect.
Note: Expenses of Foreign branches Rs. 1,038,339 (Previous year Rs.
10,326,758 ) have been included in the appropriate heads above.
*Excludes Service Tax
4. Additional information pursuant to the provisions of paragraph
5(ii)(d) part II of the revised schedule VI to the Companies Act, 1956.
(To the extent applicable)
5. Related parties disclosures
1) Names of related parties and description of relationship:
i. Subsidiaries and step down subsidiary Melstar Inc.
Melstar Limited (Dissolved on 19th May, 2010)
Linkhand Support Limited (Dissolved on 12th August, 2008)
Melstar UK Limited (Dissolved on 26th April, 2011)
Melstar Singapore Pte. Limited (Struck Off as on 05th October, 2010)
ii. Key Management Personnel with whom Mr. P. V. R. Murthy
(Non-Executive Director) (Up to 24th October, 2013)
the transactions have taken place during
Mr. Richard D'Souza (Chief Executive Officer and Manager) (Up to 22nd
May,2013) &
the year (Managing Director) (Up to 09th December, 2013)
Mr. Vijay Mishra (Managing Director) (w.e.f.13th November, 2013)
Mr. Anil S. Korpe (Chief Financial Officer)
Mr. Vijaykumar H. Modi (Company Secretary)
iii. Enterprises Over which Key Birla Edutech Limited(Up to 25th June,
2013)
Management Personnel and / or their
Birla Power Solutions Limited (Up to 14th August, 2013)
relatives have significant influence with
Birla Global Corporate Limited whom the transactions have taken place
during the year
** Interest bearing loan @7% p.a. up to March 31,2005, interest free
thereafter and repayable by March 31, 2007 as per revised repayment
schedule, as approved by the Board of Directors and intimated to
Reserve Bank of India as per Foreign Exchange Management Act, 1999
(FEMA).
# Amounts outstanding as at March 31, 2015 stand fully provided for
towards doubtful recoveries.
Note: There are no investments by the loaners in the shares of the
parent company and /or subsidiary companies.
6. The Company has presented the data relating to its segments based
on its consolidated financial statements, which are presented in the
same annual report. Accordingly in terms of provisions of Accounting
Standard (AS) 17 on 'Segment Reporting', no disclosures related to
segments are presented in its stand-alone financial statements.
* Of these, Rs. 42,787,667 (previous year Rs. 42,787,667) has been
provided towards doubtful recoveries. ** Fully provided towards
doubtful recoveries (previous year Rs.71,954,100). Note: Figures in
Brackets indicate previous year figures.
8. Post Employment Benefit Plans
(i) Defined contribution plans
The Company makes contributions towards provident fund to a Defined
contribution retirement benefit plan for qualifying employees. The
Provident Fund plan is operated by Regional Provident Fund
Commissioner. Under the plan, the Company is required to contribute a
specified percentage of payroll cost to the retirement benefit plan to
fund the benefits.
The Company recognized Rs. 5,486,908 (Previous year Rs. 5,164,474) for
provident fund contributions in the Profit and loss account. The
contributions payable to these plans by the Company are at rates
specified in the rules of the schemes.
(ii) Defined benefit plan
The Company has Defined benefit plan for qualifying employees in
respect of Gratuity benefits. The scheme provides for payment to vested
employees as under:
On Normal retirement/early retirement/withdrawal/resignation:
As per the provisions of Payment of Gratuity Act, 1972 with vesting
period of 5 years of service.
On death in service:
As per the provisions of Payment of Gratuity Act, 1972 without any
vesting period.
The most recent actuarial valuation of the present value of Defined
benefit obligation for gratuity was carried out at March 31, 2015 by an
actuary. The present value of the Defined benefit obligations and the
related current service cost and past service cost, were measured using
the Projected Unit Credit Method.
The liability towards short-term compensated absences is Rs. 1,626,427
(Previous year Rs. 1,343,503) is provided on actual basis.
Note:
Provision towards compensated absences made on the basis of actuarial
valuation as per Accounting Standard 15 (Revised). Actuarial value
liability is Rs.771,437 (Previous year Rs.418,711 ) based upon the
following assumptions:
9. Trade receivables, trade payables, short term loans and advances,
other current assets and other current liabilities are subject to
confirmation and reconciliation if any.
10. Previous year's figures have been regrouped wherever necessary, to
correspond with the figures of the current year. Amounts and other
disclosures for the preceding year are included as integral part of the
current year financial statements and are to be read in relation to the
amounts and other disclosures relating to the current year. Figures
have been rounded off to the nearest rupee.
Mar 31, 2014
1. Contingent Liability:
(In rupees)
As at As at
31.03.2014 31.03.2013
(i) Claims against Company not acknowledged
as debt and pending before the Courts in
Mumbai. 457,392 387,620
The Company expects that the matter will be
resolved in Company''s favour and no liability
is expected.
(ii) Disputed ESIC Liability:
ESIC demand disputed and pending decisions
before higher authorities. Amount paid there 135,627 135,627
against and included under "Short Term Loans
and Advances" Note No. 13 Rs. 35,000 Previous
year (Rs. 35,000)
(iii) Disputed Property Tax Liability:
Property Tax demand disputed and pending before
the Court in Mumbai. Amount paid there 1,613,047 -
against and included under " Short Term Loans
and Advances" Note No.13 Rs.806,524 Previous
year (Rs. Nil)
2. The Company, considering the erosion/substantial erosion in the net
worth of its wholly-owned subsidiaries located at U.S.A., U.K. and
Singapore, had made provision for diminution in the value of
investments in the said subsidiaries aggregating to Rs. 214,674,767
(Previous year Rs.214,674,767) and for doubtful loans/advances given to
said subsidiaries aggregating to Rs.114,306,058 (Previous year
Rs.114,306,058) and also for doubtful debts being debts due from one of
the step down subsidiary located at UK and a wholly-owned subsidiary
located at U.S.A. of Rs.17,167,788(Previous year Rs. 17,167,788).
The two subsidiaries and one step down subsidiary, located at U.K.
stands dissolved in the earlier year. Pursuant to application made to
the Regulatory Authority, the name of the subsidiary located at
Singapore had been Struck Off in the earlier year.
Consequent to such dissolutions/ struck off, the Company is in the
process of seeking approvals from the Reserve Bank of India (RBI), for
writing off these amounts from the books of account. The Company would
make the necessary adjustments as and when approvals from the RBI are
received. Such adjustments would have no impact on the Profit and Loss
Account.
3. One of the Overseas Branch located at U.K., has been closed w.e.f.
22.07.2013. Consequently, the related exchange difference of Rs.744,755
accumulated in the Foreign Currency Translation Reserve, has been
credited to Profit and Loss Account under "Other Operating Income", in
accordance with AS-11(Revised) "The Effect of Changes in Foreign
Exchange Rates".
4. The break-up of deferred tax assets as at 31st March, 2014 is as
under:
The deferred tax assets, not recognised as at the year end on the basis
of prudence, would be accounted for in the subsequent year/years
considering the requirements of the Accounting Standard (AS) 22 on "
Accounting for Taxes on Income", regarding reasonable/virtual certainty
and the accounting policy followed by the Company in this respect.
FOB Value of Exports includes:
Software Services Exports Rs. 1,248,809 (Previous year Rs. 1,951,922)
and Income from Software Services by foreign Branch Rs. 9,387,776
(Previous year Rs. 20,015,247)
5. Related parties disclosures
1) Names of related parties and description of relationship: i.
Subsidiaries and step down subsidiary :
Melstar Inc.
Melstar Limited (Dissolved on 19th May, 2010)
Linkhand Support Limited (Dissolved on 12th August, 2008)
Melstar UK Limited (Dissolved on 26th April, 2011)
Melstar Singapore Pte. Limited (Struck Off as on 05th October, 2010)
ii. Key Management Personnel with whom the transactions have taken
place during the year :
i Mr. Yashovardhan Birla (Chairman)(Up to 06th November, 2012)
Mr. P. V. R. Murthy (Non-Executive Director)(Up to 24th October, 2013)
Mr. Richard D''Souza (Chief Executive Officer and Manager)
(Up to 22nd May, 2013) (Managing Director) (Up to 09th December, 2013)
Mr. Vijay Mishra (Managing Director)(w.e.f.13th November, 2013)
iii. Enterprises Over which Key
Management Personnel and / or their relatives have significant
influence with whom the transactions have taken place during the year
Birla Shloka Edutech Limited(Up to 06th November, 2012)
Birla Edutech Limited(Up to 25th June, 2013)
Birla Viking Travels Limited (Up to 06th November, 2012)
Birla Cotsyn India Limited(Up to 06th November, 2012)
Birla Power Solutions Limited (Up to 14th August, 2013)
Birla Global Corporate Limited
* Repayable on demand and interest free.
** Interest bearing loan @7% p.a. upto March 31,2005, interest free
thereafter and repayable by March 31,2007 as per revised repayment
schedule, as approved by the Board of Directors and intimated to
Reserve Bank of India as per Foreign Exchange Management Act, 1999
(FEMA).
# Amounts outstanding as at March 31,2014 stand fully provided for
towards doubtful recoveries.
Note: There are no investments by the loanees in the shares of the
parent company and /or subsidiary companies.
6. The Company has presented the data relating to its segments based
on its consolidated financial statements, which are presented in the
same annual report. Accordingly in terms of provisions of Accounting
Standard (AS) 17 on ''Segment Reporting'', no disclosures related to
segments are presented in its stand-alone financial statements.
7. The year-end foreign currency exposures that have not been hedged
by a derivative instrument or otherwise are as follows:
Amount receivable in foreign currency on account of the following
Of these, Rs. 42,787,667 (previous year Rs. 42,348,262) has been
provided towards doubtful recoveries.
** Fully provided towards doubtful recoveries (previous year
Rs.71,954,100).
Note: Figures in Brackets indicate previous year figures.
8. Post Employment Benefit Plans (i) Defined contribution plans
The Company makes contributions towards provident fund to a defined
contribution retirement benefit plan for qualifying employees. The
Provident Fund plan is operated by Regional Provident Fund
Commissioner. Under the plan, the Company is required to contribute a
specified percentage of payroll cost to the retirement benefit plan to
fund the benefits.
The Company recognized Rs. 5,164,474 (Previous year Rs. 5,529,994) for
provident fund contributions in the profit and loss account. The
contributions payable to these plans by the Company are at rates
specified in the rules of the schemes.
(ii) Defined benefit plan
The Company has defined benefit plan for qualifying employees in
respect of Gratuity benefits. The scheme provides for payment to vested
employees as under:
On Normal retirement/early retirement/withdrawal/resignation:
As per the provisions of Payment of Gratuity Act, 1972 with vesting
period of 5 years of service.
On death in service:
As per the provisions of Payment of Gratuity Act, 1972 without any
vesting period.
The most recent actuarial valuation of the present value of defined
benefit obligation for gratuity was carried out at March 31, 2014 by an
actuary. The present value of the defined benefit obligations and the
related current service cost and past service cost, were measured using
the Projected Unit Credit Method.
Note:
Provision towards compensated absences made on the basis of actuarial
valuation as per Accounting Standard 15 (Revised). Actuarial value
liability is Rs.418,711 (Previous year Rs. 857,796 ) based upon the
following assumptions:
The liability towards short-term compensated absences is Rs. 1,343,503
(Previous year Rs. 1,369,551) is provided on actual basis.
9. Disclosures relating to amounts payable as at the yearend together
with interest paid / payable to Micro, Small and Medium Enterprises
have been made in the accounts, as required under the Micro, Small and
Medium Enterprises Development Act, 2006 to the extent of information
available with the Company determined on the basis of intimation
received from suppliers regarding their status and the required
disclosure are given below:
10. Trade receivables, trade payables, short term loans and advances,
other current assets and other current liabilities are subject to
confirmation and reconciliation if any.
11. Previous year''s figures have been regrouped wherever necessary, to
correspond with the figures of the current year. Amounts and other
disclosures for the preceding year are included as integral part of the
current year financial statements and are to be read in relation to the
amounts and other disclosures relating to the current year. Figures
have been rounded off to the nearest rupee.
Mar 31, 2013
1. The Company, considering the erosion/substantial erosion in the net
worth of its wholly-owned subsidiaries located at U.S.A., U.K. and
Singapore, had made provision for diminution in the value of
investments in the said subsidiaries aggregating to Rs. 214,674,767
(Previous year Rs.214,674,767) and for doubtful loans/advances given to
said subsidiaries aggregating to Rs.114,306,058 (Previous year
Rs.114,306,058) and also for doubtful debts being debts due from one of
the step down subsidiary located at UK and a wholly-owned subsidiary
located at U.S.A. of Rs.17,167,788(Previous year Rs.17,393,388).
Out of the two subsidiaries located at U.K. one subsidiary stands
dissolved in the earlier year and another stands dissolved in the
previous year. The step down subsidiary was also dissolved in the
earlier year. Pursuant to application made to the Regulatory Authority,
the name of the subsidiary located at Singapore had been Struck Off in
the earlier year.
Consequent to such dissolutions/ struck off, the Company is in the
process of seeking approvals from the Reserve Bank of India (RBI), for
writing off these amounts from the books of account. The Company would
make the necessary adjustments as and when approvals from the RBI are
received. Such adjustments would have no impact on the Profit and Loss
Account.
Software Services Exports Rs. 1,951,922 (Previous year Rs. 3,203,139)
and Income from Software Services by foreign Branch Rs.
20,015,247(Previous year Rs. 8,103,801)
Notes: Related party relationship is as identified by the Company and
relied upon by the auditors.
* Repayable on demand and interest free.
** Interest bearing loan @7% p.a. up to March 31,2005, interest free
thereafter and repayable by March 31, 2007 as per revised repayment
schedule, as approved by the Board of Directors and intimated to
Reserve Bank of India as per Foreign Exchange Management Act, 1999
(FEMA).
# Amounts outstanding as at March 31, 2013 stand fully provided for
towards doubtful recoveries.
Note: There are no investments by the loaners in the shares of the
parent company and /or subsidiary companies.
2. The Company has presented the data relating to its segments based
on its consolidated financial statements, which are presented in the
same annual report. Accordingly in terms of provisions of Accounting
Standard (AS) 17 on ''Segment Reporting'', no disclosures related to
segments are presented in its stand-alone financial statements.
* Of these, Rs. 42,348,262 (previous year Rs. 42,348,262) has been
provided towards doubtful recoveries.
** Fully provided towards doubtful recoveries (previous year
Rs.71,954,100).
Note: Figures in Brackets indicate previous year figures.
3. Post Employment Benefit Plans
(i) Defined contribution plans
The Company makes contributions towards provident fund to a defined
contribution retirement benefit plan for qualifying employees. The
Provident Fund plan is operated by Regional Provident Fund
Commissioner. Under the plan, the Company is required to contribute a
specified percentage of payroll cost to the retirement benefit plan to
fund the benefits.
The Company recognized Rs. 5,529,994 (Previous year Rs. 6,775,404) for
provident fund contributions in the profit and loss account. The
contributions payable to these plans by the Company are at rates
specified in the rules of the schemes.
(ii) Defined benefit plan
The Company has defined benefit plan for qualifying employees in
respect of Gratuity benefits. The scheme provides for payment to vested
employees as under:
On Normal retirement/early retirement/withdrawal/resignation:
As per the provisions of Payment of Gratuity Act, 1972 with vesting
period of 5 years of service.
On death in service:
As per the provisions of Payment of Gratuity Act, 1972 without any
vesting period.
The most recent actuarial valuation of the present value of defined
benefit obligation for gratuity was carried out at March 31, 2013 by an
actuary. The present value of the defined benefit obligations and the
related current service cost and past service cost, were measured using
the Projected Unit Credit Method.
4. Trade receivables, trade payables, short term loans and advances,
other current assets and other current liabilities are subject to
confirmation and reconciliation if any.
5. Previous year''s figures have been regrouped wherever necessary,
to correspond with the figures of the current year. Amounts and other
disclosures for the preceding year are included as integral part of the
current year financial statements and are to be read in relation to the
amounts and other disclosures relating to the current year. Figures
have been rounded off to the nearest rupee.
Note:
Indian Rupee equivalent figures have been arrived at by applying the
year end inter-bank Exchange Rate : 1 US$ = Rs. 54.395
Mar 31, 2012
Terms /Rights attached to Equity Shares
The Company has only one class of equity shares having a par value of
Rs. 10 per share. Each holder of equity shares is entitled to one vote
per share.
In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive remaining assets of the Company,
after distribution of all preferential amounts. The distribution will
be in proportion to the number of equity shares held by the
shareholders.
* Amount Written off in respect of Leasehold land for the period of
lease which has expired.
** Building was revalued on 1st April, 2005 with reference to the fair
market value; amount added on revaluation was Rs.76,558,113; the
revalued amount substituted for historical cost on 1st April 2005 was
Rs. 126,130,511, based on report issued by approved independent valuer.
Note:
1. Adjustments/ deductions include obsolete fixed assets discarded
during the year. (Cost Rs.Nil accumulated depreciation and amortization
Rs.Nil) (Previous year Cost Rs.66,180 and depreciation and amortization
Rs 13,373)
2. Figures shown in brackets are in respect of Previous Period.
1. (i) In rupees As at 31.03.2012 As at 31.03.2011
Claims against Company not
acknowledged as debt and
pending before the Courts in 887,150 882,963
Mumbai. The Company expects
that the matter will be re
solved in Company's favour
and no liability is expected.
(ii) Contingent Liability :
In rupees
Particulars As at 31.03.2012 As at 31.03.2011
Disputed ESIC Liability: 135,627 135,627
ESIC demand disputed and
pending decisions before
higher authorities.
Amount paid there against
and included under "Short
Term Loans and Advances"
Note No.15 Rs.35,000
Previous year (Rs.35,000)
2. (a) The Company, considering the erosion/substantial erosion in
the net worth of its wholly-owned subsidiaries located at U.S.A.,
U.K. and Singapore, had made provision for diminution in the value of
investments in the said subsidiaries aggregating to Rs. 214,674,767
(Previous year Rs.214,674,767) and for doubtful loans/advances given to
said subsidiaries aggregating to Rs.114,306,058 (Previous year
Rs.114,306,058) and also for doubtful debts being debts due from one of
the step down subsidiary located at UK and a wholly-owned subsidiary
located at U.S.A. of Rs.17,393,388(Previous year Rs.17,393,388).
Out of the two subsidiaries located at U.K. one subsidiary stands
dissolved in the previous year and another stands dissolved in the
current year. The step down subsidiary was also dissolved in the
earlier year. Pursuant to application made to the Regulatory Authority,
the name of the subsidiary located at Singapore had been Struck Off in
the previous year.
Consequent to such dissolutions/ struck off, the Company is in the
process of seeking approvals from the Reserve Bank of India (RBI), for
writing off these amounts from the books of account. The Company would
make the necessary adjustments as and when approvals from the RBI are
received. Such adjustments would have no impact on the Profit and Loss
Account.
(b) A wholly-owned subsidiary located at UK, was dissolved during the
year. Accordingly, in the previous year, Exceptional Item of
Rs.1,517,688 on account of loan written back as no longer payable to
said subsidiary, was credited to Profit and Loss Account.
The deferred tax assets, not recognized as at the year end, would be
accounted for in the subsequent year/years considering the requirements
of the Accounting Standard (AS) 22 on " Accounting for Taxes on
Income", regarding reasonable/virtual certainty and the accounting
policy followed by the Company in this respect.
FOB Value of Exports includes:
Software Services Exports Rs. 3,203,139 (Previous year Rs. 3,799,578)
and Income from Software Services by foreign Branch Rs. 8,103,801
(Previous year Rs. 5,594,564)
* Repayable on demand and interest free.
** Interest bearing loan @7% p.a. up to March 31,2005, interest free
thereafter and repayable by March 31, 2007 as per revised repayment
schedule, as approved by the Board of Directors and intimated to
Reserve Bank of India as per Foreign Exchange Management Act, 1999
(FEMA).
# Amounts outstanding as at March 31, 2012 stand fully provided for
towards doubtful recoveries.
Note: There are no investments by the loaners in the shares of the
parent company and /or subsidiary companies.
3. The Company has presented the data relating to its segments based
on its consolidated financial statements, which are presented in the
same annual report. Accordingly in terms of provisions of Accounting
Standard (AS) 17 on 'Segment Reporting, no disclosures related to
segments are presented in its stand-alone financial statements.
* Of these, Rs.42,348,262 (previous year Rs. 42,348,262) has been
provided towards doubtful recoveries.
** Fully provided towards doubtful recoveries (previous year
Rs.71,954,100).
Note: Figures in Brackets indicate previous year figures.
4. Post Employment Benefit Plans
(i) Defined contribution plans
The Company makes contributions towards provident fund to a defined
contribution retirement benefit plan for qualifying employees. The
Provident Fund plan is operated by Regional Provident Fund
Commissioner. Under the plan, the Company is required to contribute a
specified percentage of payroll cost to the retirement benefit plan to
fund the benefits.
The Company recognized Rs. 6,775,404 (Previous year Rs. 6,335,783) for
provident fund contributions in the profit and loss account. The
contributions payable to these plans by the Company are at rates
specified in the rules of the schemes.
(ii) Defined benefit plan
The Company has defined benefit plan for qualifying employees in
respect of Gratuity benefits. The scheme provides for payment to vested
employees as under:
On Normal retirement/early retirement/withdrawal/resignation:
As per the provisions of Payment of Gratuity Act, 1972 with vesting
period of 5 years of service.
On death in service:
As per the provisions of Payment of Gratuity Act, 1972 without any
vesting period.
The most recent actuarial valuation of the present value of defined
benefit obligation for gratuity was carried out at March 31, 2012 by an
actuary. The present value of the defined benefit obligations and the
related current service cost and past service cost, were measured using
the Projected Unit Credit Method.
5. Trade receivables, trade payables, short term loans and advances,
other current assets and other current liabilities are subject to
confirmation and reconciliation if any.
6. Previous year's figures have been regrouped wherever necessary,
to correspond with the figures of the current year. Amounts and other
disclosures for the preceding year are included as integral part of the
current year financial statements and are to be read in relation to the
amounts and other disclosures relating to the current year. Figures
have been rounded off to the nearest rupee.
Mar 31, 2011
(i) Contingent Liability :
Rupees
Particulars As at 31.03.2011 As at 31.03.2010
Disputed ESIC Liability: 135,627 135,627
ESIC demand disputed and pending
decisions before higher authorities.
Amount paid there against and
included under "Loans and advances"
Schedule 10 (Rs.35,000) Previous
year (Rs.35,000)
2. (a) The Company, considering the erosion/substantial erosion in the
net worth of its wholly-owned subsidiaries (including a wholly-owned
subsidiary located at Singapore which was Struck Off during the year
and the two wholly-owned subsidiaries located at UK, one of which was
dissolved during the year and another stands dissolved subsequent to
the year-end), has made provision for diminution in the value of
investments in the said subsidiaries aggregating to Rs. 214,674,767
(Previous year Rs.214,674,767) and for doubtful loans/advances and
debts due from such subsidiaries (includes Rs.16,303,514 (Previous
year Rs.16,303,514) being debts due from one of the step down
subsidiary located at UK which was dissolved in the earlier year)
aggregating to Rs. 131,699,446 (Previous year Rs. 131,699,446).
The Company is in the process of seeking approvals from the Reserve
Bank of India (RBI) for writing off these amounts from the books of
account. The Company would make thenecessary adjustments as and when
approvals from the RBI is received.Such adjustments would have no
impact on the Profit and Loss Account.
(b) A wholly-owned subsidiary located at UK, was dissolved subsequent
to the year-end. Accordingly, Exceptional Item for the year of
Rs.1,517,688 on account loan written back as no longer payable to said
subsidiary, credited to Profit and Loss Account.
Notes:
1) Remuneration for the current year is the minimum managerial
remuneration paid to one of the Directors for the period from 1st
April, 2010 to 30th June, 2010, in accordance with Schedule XIII of the
Companies Act, 1956 and is in accordance with the shareholders
resolution.
2) The Company has received the approval of the Central Government
under section 269, 198/309, 310 and 637AA of the Companies Act, 1956
vide its letter no. SRN No.A96579347/4/2011 Ã CL-VII dated 21st April,
2011 with respect to appointment and remuneration of a Manager of the
Company for a period of three years from 5th May, 2010 to 4th April,
2013.
3) The above amount does not include remuneration paid by a foreign
subsidiary company to one of the non executive director of the Company
Rs. Nil (previous year Rs. 1,450,087).
4) In addition to the aforesaid remuneration, the Company has paid
notice pay to an Executive Director Rs. Nil (Previous year Rs.750,000),
in terms of service agreement with the said Director.
5) Since the employee wise break up of liabilities on account of
retirement schemes based on actuarial valuation is not ascertainable,
the amount relatable to Directors could not be included in above.
6. Additional information pursuant to the provisions of paragraphs 3
and 4D of part II of schedule VI to the Companies Act, 1956. (To the
extent applicable.)
Notes:
1. Related party relationship is as identifi ed by the Company and
relied upon by the auditors.
2. Previous year fi gures are given in brackets.
* Includes notice pay paid to an Executive Director Rs. Nil (Previous
year Rs.750,000), in terms of service agreement with the said Director.
7. The Company has presented the data relating to its segments based
on its consolidated fi nancial statements, which are presented in the
same annual report. Accordingly in terms of provisions of Accounting
Standard (AS) 17 on ÃSegment Reporting', no disclosures related to
segments are presented in its stand-alone fi nancial statements.
8. Post Employment Benefit Plans
(i) Defined contribution plans
The Company makes contributions towards provident fund to a defined
contribution retirement benefit plan for qualifying employees. The
Provident Fund plan is operated by Regional Provident Fund
Commissioner. Under the plan, the Company is required to contribute a
specified percentage of payroll cost to the retirement benefit plan to
fund the benefits.
The Company recognised Rs. 6,335,783 (Previous year Rs. 5,355,331) for
provident fund contributions in the profit and loss account. The
contributions payable to these plans by the Company are at rates
specified in the rules of the schemes.
(ii) Defined benefit plan
The Company has defined benefit plan for qualifying employees in
respect of Gratuity benefits. The scheme provides for payment to vested
employees as under:
On Normal retirement/early retirement/withdrawal/resignation:
As per the provisions of Payment of Gratuity Act, 1972 with vesting
period of 5 years of service.
9. The Company achieved higher turnover during the current year,
compared to the previous year. The Company has earned profit for the
year and the net worth though eroded, continues to be positive. The
Company continues its efforts for rationalization of resources to
achieve maximum operational efficiencies and is further considering
various business strategies/ avenues of growth in revenues. On that
basis, the Company expects increase in its business operations,
turnover and operational efficiencies in the subsequent period
resulting in better margins and profitability.
10. The Company has received confirmations from few debtors/
creditors. Remaining Debtors/ Creditors are subject to confirmation and
reconciliation if any.
11. Previous year's figures have been regrouped wherever necessary, to
correspond with the figures of the current year. Amounts and other
disclosures for the preceding year are included as integral part of the
current year financial statements and are to be read in relation to the
amounts and other disclosures relating to the current year. Figures
have been rounded off to the nearest rupee.
Mar 31, 2010
1 Contingent Liabilities in respect of :- Rupees
Particulars As at 31.03.2010 As at 31.03.2009
ESIC demand disputed and
pending decisions before
higher authorities. 135,627 135,627
Amount paid there against
and included under "Loans
and advances"
Schedule 10 (Rs.35,000)
Previous year (Rs.35,000)
Other claims against
Company not acknowledged
as debt and pending 695,982 91,286
before the Courts in
Mumbai. The Company
expects that the matter
will be resolved in
Companys favour and no
liability is expected.
2. The Company, considering the erosion/substantial erosion in the net
worth of its wholly-owned subsidiaries (including the wholly-owned
subsidiary located at UK, in respect of which the Company Voluntary
Arrangement (CVA) was completed during the previous year and which
stands dissolved subsequent to the year-end), has made provision for
diminution in the value of investments in the said subsidiaries
aggregating to Rs. 214,674,767 (Previous year Rs.214,674,767) and for
doubt- ful loans/advances and debts due from such subsidiaries
aggregating to Rs. 131,699,446 (Previous year Rs.130,457,103). The
Company is seeking approvals from the Reserve Bank of India (RBI) for
writing off these amounts from the books of account. The Company would
make the necessary adjustments as and when approvals from the RBI is
received. Such adjustments would have no impact on the Profit and Loss
Account.
3. The Company has presented the data relating to its segments based
on its consolidated financial statements, which are presented in the
same annual report. Accordingly in terms of provisions of Accounting
Standard (AS) 17 on ÃSegment Reporting, no disclosures related to
segments are presented in its stand-alone financial statements.
4. Post Employment Benefit Plans
(i) Defined contribution plans
The Company makes contributions towards provident fund to a defined
contribution retirement benefit plan for qualifying employees. The
Provident Fund plan is operated by Regional Provident Fund
Commissioner. Under the plan, the Company is required to contribute a
specified percentage of payroll cost to the retirement benefit plan to
fund the benefits.
The Company recognised Rs. 5,355,331 (Previous year Rs. 4,761,437) for
provident fund contributions in the profit and loss account. The
contributions payable to these plans by the Company are at rates
specified in the rules of the schemes.
(ii) Defined benefit plan
The Company has defined benefit plan for qualifying employees in
respect of Gratuity benefits. The scheme provides for payment to vested
employees as under:
On Normal retirement/early retirement/withdrawal/resignation:
As per the provisions of Payment of Gratuity Act, 1972 with vesting
period of 5 years of service.
On death in service:
As per the provisions of Payment of Gratuity Act, 1972 without any
vesting period.
5. The Company achieved higher turnover during the current year,
compared to the previous year. Though the Company has incurred loss for
the year, the net worth continues to be positive. The Company continues
its efforts for rationalization of resources to achieve maximum
operational efficiencies and is further considering various business
strategies/ avenues of growth in revenues. On that basis, the Company
expects increase in its business operations, turnover and operational
efficiencies in the subsequent period resulting in better margins and
profitability.
6. Previous years figures have been regrouped wherever necessary, to
correspond with the figures of the current year. Amounts and other
disclosures for the preceding year are included as integral part of the
current year financial statements and are to be read in relation to the
amounts and other disclosures relating to the current year. Figures
have been rounded off to the nearest rupee.
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