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Notes to Accounts of NEPC India Ltd.

Mar 31, 2014

1. Contingent & Accrued Liabilities

a) On account of delayed/non – compliance or in dispute with various statutes are

(i) Income Tax Rs. 5558.93 Lacs (Previous Year-Rs.608.43 Lacs)

(ii) Provident Fund Rs. 14.17 Lacs (Previous year - Rs. 7.73 Lacs).

b) Redemption of Prefererence Shares amounting to Rs. 509 Lakhs (Previous Year Rs.509 Lakhs)

2. The balances appearing under Unsecured Loan certain sundry debtors, loans and advances, deposits and current liabilities are subject to confirmations and/or reconciliations.

3. The Company was to transfer certain assets and all liabilities of wind energy division as a going concern to M/S. Southern Wind Farm Limited as on 1st May 2006 as per the slump sale agreement dated 16-01-2006. The Company transferred certain assets and all liabilities of wind energy division and accounted accordingly in the books as on 1st May 2006. Dispute arose due to Non fulfillment of all the obligations and non payment of consideration by the other party. The transactions could not be completed and the matter is referred to arbitration.

Since this slump sale is not complete the gain/loss due to transfer of assets and liabilities was not accounted in the profit and loss account during the period ended 31st December, 2006 and thereafter.

4. Physical verification of the fixed assets is carried on by the management in a phased program covering all the assets and the said assets have been certified by the Management.

5. Permanent diminution/erosion, if any, in the book value of quoted Investments

has not been considered in the accounts, since the said investments are of long term in nature.

6. On account of nil commercial operation taking place in the joint venture Turkestanenergo NEPC, the Company is not in a position to comply with the disclosure requirements as stipulated in para 54 of the Accounting Standard 27 - Financial Reporting of Interests in Joint Ventures issued by the Institute of Chartered Accountants of India.

7. The Company has not granted interest-free advances to any of the related parties covered in the register maintained under Section 301 of the Companies Act 1956.

8. During the year, the Company has not complied with the provisions as prescribed by Accounting Standard 28 – Impairment of Assets issued by the Institute of Chartered Accountants of India and has not recognised any impairment in the value of assets pertaining to Airline Division, though conditions exist for the impairment of the same. The amount of such non recognition is presently unascertainable.

9. Amounts due to Small Scale Industrial undertakings under Current Liabilities, based on the information available with the Company and relied upon by the auditors- Nil (Previous year- Nil).

10. The Company has not made provision for Retirement Benefits as prescribed under Accounting Standard 15 – Accounting for Retirement Benefits in the Financial Statements of Employers issued by the Institute of Chartered Accountants of India.

11. Current Taxation:

No provision towards current taxation has been made in view of the accumulated carried forward losses during the current financial year.

12. Deferred Taxation:

The Company has not provided for Deferred Tax Assets that may be created on account of Timing Differences that may arise due to disallowances of certain expenses under the Income Tax Act 1961. The provision was not considered since future year operations results and consequently adjustment of tax provision are not certain

13. Segment Reporting:

The operations of the Company are in essence concentrated in a particular geographical area and in a particular product/service only. Hence, Segment Reporting as prescribed by the Accounting Standard 17 – Segment Reporting issued by the Institute of Chartered Accountants of India is not applicable.

14. Related Party Disclosure:

In pursuance of Accounting Standard 18 pertaining to Related Party Disclosure issued by The Institute of Chartered Accountants of India, there are no related party transaction during the year.

15. Previous year figures have been regrouped, rearranged and reclassified wherever considered necessary.


Mar 31, 2013

1. Contingent Liabilities

a) Estimated amount of contracts remaining to be executed on capital accounts and not provided for - Nil (Previous year Nil).

b) On account of delayed/non - compliance or in dispute with various statutes are (i) Sales Tax Rs. 1.63 Lacs (Previous Year Rs.1.63 Lacs) (ii) Income Tax Rs. 608.43 Lacs (Previous Year Rs.608.43 Lacs) and (iii) Provident Fund Rs. 7.73 Lacs (Previous year - Rs. 7.73 Lacs).

2. The Preference Shares issued in earlier years amounting to Rs.590.00 Lacs were liable to be redeemed three years after their respective issue dates, ranging from 13th September 1998 to 27th March 2000 and remained overdue for redemption.

3. The balances appearing under Unsecured Loan certain sundry debtors, loans and advances, deposits and current liabilities are subject to confirmations and/or reconciliations.

4. The Company was to transfer certain assets and all liabilities of wind energy division as a going concern to M/S. Southern Wind Farm Limited as on Is'' May 2006 as per the slump sale agreement dated 16-01-2006. The Company transferred certain assets and all liabilities of wind energy division and accounted accordingly in the books as on 1st May 2006. Dispute arose due to Non fulfillment of all the obligations and non payment of consideration by the other party. The transactions could not be completed and the matter is referred to arbitration.

Since this slump sale is not complete the gain/loss due to transfer of assets and liabilities was not accounted in the profit and loss account during the period ended 31st December, 2006 and thereafter.

5. Physical verification of the fixed assets is carried on by the management in a phased program covering all the assets and the said assets have been certified by the Management

6. Permanent diminution/erosion, if any, in the book value of quoted Investmentshas not been considered in the accounts, since the said investments are of long term in nature.

6.1 On account of nil commercial operation taking place in the joint venture Turkestanenergo NEPC, the Company is not in a position to comply with the disclosure requirements as stipulated in para 54 of the Accounting Standard 27 - Financial Reporting of Interests in Joint Ventures issued by the Institute of Chartered Accountants of India.

7. Loans and Advances include one of the related parties in which the directors are interested which are purely in the nature of business advances, with maximum balance during the year of Rs. 31,19,89,895/- and closing balance of Rs. 31,19,89,895/-

8. During the year, the Company has not complied with the provisions as prescribed by Accounting Standard 28 - Impairment of Assets issued by the Institute of Chartered Accountants of India and has not recognised any impairment in the value of assets pertaining to Airline Division, though conditions exist for the impairment of the same. The amount of such non recognition is presently unascertainable.

9. Amounts due to Small Scale Industrial undertakings under Current Liabilities, based on the information available with the Company and relied upon by the auditors- Nil (Previous year- Nil).

10. The Company has not made provision for Retirement Benefits as prescribed under Accounting Standard 15 - Accounting for Retirement Benefits in the Financial Statements of Employers issued by the Institute of Chartered Accountants of India.

11 Current Taxation:

No provision towards current taxation has been made in view of the accumulated carried forward losses during the current financial year.

11.1 Deferred Taxation:

The Company has not provided for Deferred Tax Assets that may be created on account of Timing Differences that may arise due to disallowances of certain expenses under the Income Tax Act 1961. The provision was not considered since future year operations results and consequently adjustment of tax provision are not certain

12. Segment Reporting:

The operations of the Company are in essence concentrated in a particular geographical area and in a particular product/service only. Hence, Segment Reporting as prescribed by the Accounting Standard 17 - Segment Reporting issued by the Institute of Chartered Accountants of India is not applicable.

13. Related Party Disclosure:

In pursuance of Accounting Standard 18 pertaining to Related Party Disclosure issued by The Institute of Chartered Accountants of India and based on available information, the disclosure are as under:


Mar 31, 2012

1. Contingent Liabilities

a) Estimated amount of contracts remaining to be executed on capital accounts and not provided for - Nil (Previous year Nil).

b) On account of delayed/non - compliance or in dispute with various statutes are (i) Sales Tax Rs. 1.63 Lacs (Previous Year Rs.1.63 Lacs) (ii) Income Tax Rs. 608.43 Lacs (Previous Year Rs.608.43 Lacs) and (iii) Provident Fund Rs. 7.73 Lacs (Previous year - Rs. 7.73 Lacs).

2. The Preference Shares issued in earlier years amounting to Rs.590.00 Lacs were liable to be redeemed three years after their respective issue dates, ranging fi;om 13th September 1998 to 27th March 2000 and remained overdue for redemption.

3. The balances appearing under Unsecured Loan certain sundry debtors, loans and advances, deposits and current liabilities are subject to confirmations and/or reconciliations.

4. The Company was to transfer certain assets and all liabilities of wind energy division as a going concern to M/S. Southern Wind Farm Limited as on 1st May 2006 as per the slump sale agreement dated 16-01-2006. The Company transferred certain assets and all liabilities of wind energy division and accounted accordingly in the books as on 1st May 2006. Dispute arose due to Non fulfillment of all the obligations and non payment of consideration by the other party. The transactions could not be completed and the matter is referred to arbitration.

Since this slump sale is not complete the gain/loss due to transfer of assets and liabilities was not accounted in the profit and loss account during the period ended 31st December, 2006 and thereafter.

5. Physical verification of the fixed assets is carried on by the management in a phased program covering all the assets and the said assets have been certified by the Management.

6. Permanent diminution/ erosion, if any, in the book value of quoted Investmentshas not been considered in the accounts, since the said investments are of long term in nature.

6.1 On account of nil commercial operation taking place in the joint venture Turkestanenergo NEPC, the Company is not in a position to comply with the disclosure requirements as stipulated in para 54 of the Accounting Standard 27 - Financial Reporting of Interests in Joint Ventures issued by the Institute of Chartered Accountants of India.

7. Loans and Advances include one of the related parties in which the directors are interested which are purely in the nature of business advances, with maximum balance during the year of Rs. 31,19,89,895/- and closing balance of Rs. 31,19,89,895/-

8. During the year, the Company has not complied with the provisions as prescribed by Accounting Standard 28 - Impairment of Assets issued by the Institute of Chartered Accountants of India and has not recognised any impairment in the value of assets pertaining to Airline Division, though conditions exist for the impairment of the same. The amount of such non recognition is presently unascertainable. ,

9. Amounts due to Small Scale Industrial undertakings under Current Liabilities, based on the information available with the Company and relied upon by the auditors- Nil (Previous year- Nil).

10. The Company has not made provision for Retirement Benefits as prescribed under Accounting Standard 15 - Accounting for Retirement Benefits in the Financial Statements of Employers issued by the Institute of Chartered Accountants of India.

11 Current Taxation:

No provision towards current taxation has been made in view of the accumulated carried forward losses during the current financial year.

11.1 Deferred Taxation:

The Company has not provided for Deferred Tax Assets that may be created on account of Timing Differences that may arise due to disallowances of certain expenses under the Income Tax Act 1961. The provision was not considered since future year operations results and consequently adjustment of tax provision are not certain

12. Segment Reporting:

The operations of the Company are in essence concentrated in a particular geographical area and in a particular product/service only. Hence, Segment Reporting as prescribed by the Accounting Standard 17 - Segment Reporting issued by the Institute of Chartered Accountants of India is not applicable.

13. Related Party Disclosure:

In pursuance of Accounting Standard 18 pertaining to Related Party Disclosure issued by The Institute of Chartered Accountants of India and based on available information, the disclosure are as under:

14. Previous year figures have been regrouped, rearranged and reclassified wherever considered necessary.


Mar 31, 2010

1. Contingent Liabilities

a) Estimated amount of contracts remaining to be executed on capital accounts and not provided for - Nil (Previous year Nil).

b) On account of delayed/non - compliance or in dispute with various statutes are (i) Sales Tax Rs. 1.63 Lacs (Previous Year Rs.1.63 Lacs) (ii) Income Tax Rs. 608.43 Lacs (Previous Year Rs.608.43 Lacs) and (iii) Provident Fund Rs. 7.73 Lacs (Previous year - Rs. 7.73 Lacs).

2. The Preference Shares issued in earlier years amounting to Rs.590.00 Lacs were liable to be redeemed three years after their respective issue dates, ranging from 13th September 1998 to 27th March 2000 and remained overdue for redemption during the current year.

3. The balances appearing under Unsecured Loan certain sundry debtors, loans and advances, deposits and current liabilities are subject to confirmations and/or reconciliations.

4. The Company was to transfer certain assets and all liabilities of wind energy division as a going concern to M/S. Southern Wind Farm Limited as on 1st May 2006 as per the slump sale agreement dated 16-01-2006. The Company transferred certain assets and all liabilities of wind energy division and accounted accordingly in the books as on 1st May 2006. Dispute arose due to Non fulfillment of all the obligations and non payment of consideration by the other party. The transactions could not be completed and the matter is referred to arbitration.

Since this slump sale is not complete the gain/loss due to transfer of assets and liabilities was not accounted in the profit and loss account during the period ended 31st December, 2006 and thereafter.

5. Physical verification of the fixed assets is carried on by the management in a phased program covering all the assets and the said assets have been certified by the Management.

6.1 Permanent diminution/erosion, if any, in the book value of quoted Investments has not been considered in the accounts, since the said investments are of long term in nature.

6.2 On account of nil commercial operation taking place in the joint venture Turkestanenergo NEPC, the Company is not in a position to comply with the disclosure requirements as stipulated in para 54 of the Accounting Standard 27 - Financial Reporting of Interests in Joint Ventures issued by the Institute of Chartered Accountants of India.

7. Loans and Advances include one of the related parties in which the directors are interested which are purely in the nature of business advances, with maximum balance during the year of Rs. 30,24,72,875/- and closing balance of Rs. 31,19,89,895.

8. During the year, the Company has not complied with the provisions as prescribed by Accounting Standard 28 - Impairment of Assets issued by the Institute of Chartered Accountants of India and has not recognised any impairment in the value of assets pertaining to Airline Division, though conditions exists for the impairment of the same. The amount of such non recognition is presently unascertainable.

9. The Company has received a part refund of Provident Fund enormusly paid in prior years after the discussion of the Honble High court.

10. Amounts due to Small Scale Industrial undertakings under Current Liabilities, based on the information available with the Company and relied upon by the auditors- Nil (Previous year- Nil).

11. The Company has not made provision for Retirement Benefits or as prescribed under Accounting Standard 15 - Accounting for Retirement Benefits in the Financial Statements of Employers issued by the Institute of Chartered Accountants of India.

12.1 Current Taxation:

No provision towards current taxation has been made in view of the accumulated carried forward losses during the current financial year.

12.2 Deferred Taxation:

The Company has not provided for Deferred Tax Assets that may be created on account of Timing Differences that may arise due to disallowances of certain expenses under the Income Tax Act 1961. The provision was not considered since future year operations results and consequently adjustment of tax provision are not certain

13. Segment Reporting:

The operations of the Company are in essence concentrated in a particular geographical area and in a particular product/service only. Hence, Segment Reporting as prescribed by the Accounting Standard 17 - Segment Reporting issued by the Institute of Chartered Accountants of India is not applicable.

14. Related Party Disclosure:

In pursuance of Accounting Standard 18 pertaining to Related Party Disclosure issued by The Institute of Chartered Accountants of India and based on available information, the disclosure are as under:

a) List of Related Parties and Relationships:

Nature of Relation Name of Party

1. Associates NEPC Agro Foods Ltd.

National Wind Power Corporation Ltd. NEPC Textiles Ltd. Skyline NEPC Ltd. Sai Televisions Ltd.

2. Enterprises over which Directors have SRC Industries (Partner ship firm) significant influence Al Merchant Exporr(Partner ship firm) Tamilnadu Bluemetal (Partner ship firm)

3. Subsidiaries and Fellow Subsidiaries None

4. Joint Venture Turkestanenergo NEPC

5. Key Management Personnel Mr. Ravi Prakash- Chairman

Mr. Raj Kumar - Wholetime director

Mr. Tirupathi Kumar-Managing Director

6. Relatives of Key Management Personnel Mrs.Champa Devi (wife of Chairman)

Mrs. Ritu Devi (wife of wholetime Director) Mrs. Shivani Devi (Wife of Managing Director)

15. Previous year figures have been regrouped, rearranged and reclassified wherever considered necessary.

 
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