Mar 31, 2015
1. COMPANY INFORMATION
Nicco Corporation Limited ("the Company") is a domestic public limited
company and is listed on the National Stock Exchange (NSE).The company
has two divisions, cable and project, cable being it's core area of
operation. The Company enjoys rich heritage among cable manufacturers
of this subcontinent and widely known among cqnsumers across the length
and breath of the country. Notwithstanding stagnant phase over last few
years, the company aspires to re establish itself in terms of its old
vigour in days ahead.
2. Refer Note 9(a) in schedule 21 to accounts contingent
liabilities not provided for :
(a) Claims not acknowledged as debt Rs. 4,818.02 (Rs. 4,921.77).
(b) Commitments for Capital Contracts Rs. Nil (Rs. 60.64).
(c) Guarantee furnished Rs. 11,809.89 (Rs. 11,784.25).
(d) Bills Discounted Rs. Nil (Rs. 590.00)
(e) Arrear dividend on cumulative preference share Rs. 1,204.45 (Rs.
1,095.30).
(f) Guarantees invoked and contested in appeal Rs. 535.41 (Rs. 535.41)
3. Refer Note 9(b) in schedule 21 to accounts
Contingent liabilities provided for in terms of AS 29.
a) Particulars Opening Provisions made Provisions withdrawn
Provision during the year during the year
Provision for 10.00 Nil Nil
doubtful
advance
a) Particulars Closing Forum where the dispute
Provision is pending
Provision for 10.00 Kerala High Court
doubtful
advance
4. Refer Note 16 in schedule 21 to accounts
Information pursuant to AS 28.
Cable Divisions at Baripada, Shyamnagar and Project Division constitute
three cash generating units (CGU).
Common fixed assets have been apportioned among CGU's in the ratio of
written down value of fixed assets held by respective units.
Since recoverable value of each CGU under net selling price method
prima facie proves higher than carrying cost of relevant CGUs' no
provision is called for against impairment loss thereon.
5. Refer Note 17 in schedule 21 to accounts
Information pursuant to AS 7 (relates to contracts entered into since
01.04.2003) :
(a) Contract revenue recognised as revenue gross of service tax Rs.
1,193.39 Lac (Rs. 3,933.88 Lac).
(b) Retention amount (forming part of debtors) Rs. 268.14 Lacs (Rs.
268.14 Lacs).
(c) Due from customers on account of contract work Rs. 3,586.60 Lac
(Rs. 4,018.15 Lacs).
(d) Aggregate of cost incurred on construction contract Rs. 1,142.43
Lac (Rs. 3,888.98 Lac).
(e) Aggregate of profit (Loss) recognized against construction contract
Rs. 50.56 Lac (Rs. 44.90 Lacs) on the basis of direct cost only.
(f) The amount of advances received Rs. Nil Lacs (Nil).
6. Refer Note 19 in schedule 21 to accounts
(a) Following reference to Board for Industrial and Financial
Reconstruction under section 15 of Sick Industrial Companies (Special
Provisions) Act, 1985, the Company has been declared sick vide order
dated August 23, 2011. Pending finalisation of rehabilitation scheme in
terms of approval of BIFR status of borrowings from bank, institutional
sources including due/overdue/installment/interest thereon have been
considered herein as last enjoined in CDR package, except for providing
for 15% interest on unsettled dues of ARCIL as a measure of abundant
precaution.
(b) Relevant package is poised for updation in terms of revised cut off
date. All banks under consortium except Central bank have conveyed
their approval in principal towards rehabilitation measure.
(c) Events occurring after the Balance Sheet date :
Subsequent to the Balance Sheet, date pursuant to invocation of Bank
gurantee worth of Rs. 65 Crore contributed to enhancement of fund based
exposure of banks, for which the company has proposed an addendum to
the rehabilitation scheme in support of its ability to honour debt
service obligation for approval of BIFR including the other
participants in the scheme.
(d) The Company's two units at Baripada and Shyamnagar have undergone
temporary suspension of work with effect from 23.04.2015 due to acute
fund constraints and associated IR issues.
7. Employee Benfits :
Following adjustments relating to employee benefits have been made in
these accounts in keeping with Accounting Standard 15 (Revised) issued
by the Institute of Chartered Accountants of India..
Mar 31, 2014
A. COMPANY INFORMATION
Nicco Corporation Llmitd ("the Company") Is a domestic public limited
company and is listed on the National Stock Exchange (NSE).The company
has two divisions, cable and pro|ect,'' cable being it''s core area of
operation. The Company enjoys rich heritage among cable manufacturers
of this subcontinent and widely known among cqnsumers across the length
and breath of the country. Notwithstanding stagnant phase over last few
years, the company aspires to re establish itself In terms of Its old
vigour in days ahead.
Note 1 : Refer Note 9(a) in schedule 21 to accounts contingent
liabilities not provided for:
(a) Claims not acknowledged as debt Rs. 4,921.77 (Rs. 3,824.81).
(b) Commitments for Capital Contracts Rs. 60.64 (Rs. Nil).
(c) Guarantee furnished Rs. 11,784.25 (Rs. 11,561.15).
(d) Bills Discounted Rs. 590.00 (Rs. 344.12)
(e) Arrear dividend on cumulative preference share Rs. 1,095.30 (Rs.
986.15).
Note 2 : Refer Note 9(b) in schedule 21 to accounts
Contingent liabilities provided for in terms of AS 29.
a) Particulars Opening Provisions Provisions Closing Forum where
Provision made withdrawn Provision the dispute
during the during the is pending
year year
Provision 10.00 Nil Nil 10.00 Kerala High
for Court
doubtful
advance
Note 3 : Refer Note 11 in schedule 21 to accounts
Deferred Tax :
(a) Recognition of deferred tax asset upto 31.03.2011 on an absorbed
loss & depreciation in attributed to management affirmation of virtual
certainty of future profit evidenced by viability of the rehabilitation
scheme under progress for submission to BIFR, However no further
addition to deferred tax asset, whatever may be the contributory of it,
has been recognized ds a measure of abundant prudence dfter relevant
date.
(b) Deferred tgx asset (net) accrued till date vis-a-vis provision
retained in accounts.
Note 4 : Refer Note 12(a) in schedule 21 to accounts
(a) Parties in micro and small category under MSMED Act, 2006, have
been identified on the basis of disclosure made by respective parties
in their involces/chalians.
Note 5
Segment Report : The business segments have been identified based on
the nature of products of the Company and accordingly Cable segment as
a business segment for Power Cables and Project as a segment for
Turnkey Engineering Projects have been identified.
Note 6 : Refer Note 16 In schedule 21 to accounts Information pursuant
to AS 28.
Cable Divisions at Baripada, Shyamnagar and Project Division constitute
three cash generating units (CGU).
Common fixed assets have been apportioned among CGU''s In the ratio of
written down value of fixed assets held by respective units.''
Since value In use of the last two CGUs'' arrived at by way of
discounting future cash flow as on date as estimated by management
during assessed life of plants In terms of technical evaluation for
each CGU, exceeds written down value of assets relevant thereon, no
provision for any loss on account of Impairment of fixed asset has been
made in accounts therkjy also ruling out the cause of ascertaining Ihe
net selling price of the assets. For the first mentioned CGU, the net
selling price based on proposed buyer of same proving higher than
carrying cost of same, no provision Is called for thereon oh account of
Impairment loss. ''
Discount factor @ 12% p.a. has been applied tor arriving at as on date
value of future cash flow which Includes 2% aglnst risk factors.
Certain fixed assets are earmarked for transfer to cable operations at
book value for which no Impairment Is deemed necessary fa obvious
reason,
Note 7 : Refer Note 17 in schedule 21 to accounts
Information pursuant to AS 7 (relates to contracts entered Into since
01.04.2003):
(I) la) Contract revenue recognised as revenue gross of service tax Rs.
3,933.88 Lac (Rs. 1,370.49 Lac).
(b) Retention amount (faming part of debtors) Rs. 268.14 Lacs (Rs. Nil
Lacs).
(c) Due from customers on account of contract work Rs. 4,018.15 Lac
(Rs. 5,463.27 Lacs),
(d) Aggregate of cost Incurred on construction contract Rs. 3,888.98
Lac (Rs. 980.00 Lac).
(e) Aggregate of profit (Loss) recognized against construction contract
Rs. 44.90 Lac (Rs. 358.70 Lacs) on the basis of direct cost only.
(f) The amount of advances received Rs. Nil Lacs (Nil).
(ii) Loss arising out Rs. 124.78 lacs during the period due to change
In scope In a TISCO (C-290/291) contract earlier assessed as profitable
is provided for.
Note 8 : Refer Note 4 in schedule 1 to accounts and notes referred in
schedule 21 to accounts
(a) Preference Share Capital relates to 21,83,000 number of 5%
cumulative preference shares of Rs. 100/- each fully paid up, 1846000
number of which is convertible at the option of share holders.
(c) Conversion right has not been excersied by cohcemed shareholders
till date.
Pending approval from appropriate authority of the paid up value of
shares poised for allotment to Nlcco Restructuring Employees Trust
Fund, Rs. 66 lac (previous year Rs. 301 lacs) received from the trust
on account of share application has not been reckoned by determination
of EPS - basic as well as diluted.
Note 9 : Refer Note 20 in schedule 21 to accounts
Following reference to Board for Industrial and Financial
Reconstruction under section 15 of Sick Industrial Companies (Special
Provisions) Act, 1985, the Company has been declared sick vide order
dated August 23,2011. Pending finalisation of rehabilitation scheme In
terms of approval of BIFR status of borrowings from bank, institutional
sources including due/overdue/installment/lnterest thereon have been
considered herein as last enjoined in CDR package, except for providing
for 15% interesf on unsettled dues of ARCIL as a measure of abundant
precaution.
Note 10 : Refer Note 18 in schedule 21 to accounts
Disclosure in conformity to AS 27
(i) List of jointly controlled operation JwithOEPL (Formerly OMPL)
(a) SAIL Bhilai project.
(b) SAIL Chandrapura project.
(c) SAIL Bokaro project.
(d) SAILTISCO project.
(il) Interest in jointly controlled operations:
OMPL - 90%, Nicco Corporation Ltd. - 10%.
(iii) The aggregate amount of assets and liabilities, income and
expenditure pertaining to share of the company in jointly controlled
operation forming part of financial status. ''
(a) Cash and Bank - (10% of Rs. 46.78 Lac) Rs. 4.68 Lac.
(b) Debtors-(10% of Rs. 462.35 Lac) Rs. 46.24 Lac.
(c) The Aggregate amount of liabillty/creditors - (10% of Rs. 465.06
Lac) Rs. 46.51 Lac.
(d) The aggregate amount of Income - (10% of Rs. 3064.20 Lac) Rs.
306.42 Lac.
(e) The aggregate amount of Exjoenses - (10% Of Rs. 3064.20 Lac) Rs.
306.42 Lac.
11. Employee Benfits :
Following adjustments relating to employee benefits have been made in
these dccounts in keeping with Accounting Standard 15 (Revised) issued
by the Institute of Chartered Accountants of India.
Mar 31, 2013
Note 1: Refer Note 16 in schedule 21 to accounts
Information pursuant to As 28.
Cable Divisions at Baripada, Shyamnagar and Project Division constitute
three cash generating units (CGU).
Common fixed assets have been apportioned among CGU''s in the ratio of
written down value of fixed assets held by respective units.
Since value in use, arrived at by way of discounting future cash flow
as on date as estimated by management during assessed life of plants in
terms of technical evaluation for each CGU, exceeds written down value
of assets relevant thereon, no provision for any loss on account of
Impairment of fixed asset has been made in accounts thereby also ruling
out the cause of ascertaining the net selling price of the assets.
Discount factor @ 12% p.a has been applied for arriving at as on date
value of future cash flow which includes 2% against risk factors.
Certain fixed assets are earmarked for transfer to cable operations at
book value for which no impairment is deemed necessary for obvious
reason.
Note 2: Refer Note 17 in schedule 21 to accounts
Information pursuant to AS 7 (relates to contracts entered into since
01.04.2003):
(a) Contract revenue recognized as revenue gross of service tax Rs.
1370.49 Lacs (Rs. 11834.31 Lacs).
(b) Retention amount (forming part of debtors) Rs. Nil Lacs (Rs. 68.10
Lacs).
(c) Due from customers on account of contract work Rs. 5463.27 Lacs
(Rs. 1396.23 Lacs).
(d) Aggregate of cost incurred on construction contract Rs. 980.00 Lacs
(Rs. 12903.56 Lacs).
(e) Aggregate of profit (Loss) recognized against construction contract
Rs. 358.70 Lacs (Rs. 620.37 Lacs) on the basis of direct cost only.
(0 The amount of advances received Rs. Nil Lacs (nil)
Note 3 : Refer Note 4 in schedule 1 to accounts and notes referred in
schedule 21 to accounts
(a) Preference Share Capital relates to 21,83,000 number of 5%
cumulative preference shares of Rs. 100/- each fully paid up, 1846000
number of which is convertible at the option of share holders.
(b) Period of redemption of Preference Shares :
Note 4: Refer Note 18
Information pursuant to AS 24:
Further to JFTC manufacturing unit at Kalyani discontinuing it''s
operation on 15.07.2002, net fixed assets worth Rs. 524.97 lacs (Rs.
589,19 lacs) have been transferred to Shyamnagar unit on 01.01.2013 to
add to plant & mqchlnery network of the later. This read with bringing
long term loans and advances and trade receivable for Rs. 46.82 lacs
(Rs. 46.82 lacs) and Rs. 337.38 lacs (Rs. 337.38 lacs) under corporate
account on relevant date, discontinued operation ceases to exists on
year end.
Mar 31, 2012
Deferred Tax:
(a) Recognition of deferred tax asset upto 31.03.2011 on an absorbed
loss & depreciation is attributed to management affirmation of virtual
certainty of future profit evidenced by viability of the rehabilitation
scheme under progress for submission to BIFR. However no further
addition to deferred tax asset, whatever may be the contributory of it,
has been recognized as a measure of abundant prudence unlike previous
year.
Note 1: Refer Note 12 in schedule 21 to accounts
(a) Parties in micro and small category under MSMED Act, 2006, have
been identified on the basis of disclosure made by respective parties
in their invoices/challans.
(b) Particulars of due to relevant creditors are given hereunder
* Relates to unallocated segment.
Note : 1. Capital Employed include long term loans.
2. Revaluation Reserve has been left out of the purview of the Total
Asset.
3. Unallocated segment results, Assets and Liabilities include the
following of the erstwhile Kalyani unit, since discontinued:
a) Depreciation of Rs. 85.87 Lacs (Rs. 140.45 Lacs)
b) Assets amounting to Rs, 961 Lacs (Rs. 1,072 Lacs)
c) Liability amounting to Rs. 25 Lacs (Rs. 25 Lacs) - Current
Liabilities.
Note 2 : Refer Note 17 in schedule 21 to accounts Information pursuant
to As 28.
Cable Divisions at Baripada, Shyamnagar and Project Division constitute
three cash generating units (CGU).
Common fixed assets have been apportioned among CGU's in the ratio of
written down value of fixed assets held by respective units.
Since value in use, arrived at by way of discounting future cash flow
as on date as estimated by management auring assessed life of plants in
terms of technical evaluation for each CGU, exceeds written down value
of assets relevant thereon, no provision for any loss on account of
impairment of fixed asset has been made in accounts thereby also ruling
out the cause of ascertaining the net selling price of the assets.
Discount factor @ 12% p.a has been applied for arriving at as on date
value of future cash flow which includes 2% against risk factors.
Certain fixed assets are earmarked for transfer to cable operations at
book value for which no impairment is deemed necessary for obvious
reason.
Note 3: Refer Note 18 in schedule 21 to accounts
Information pursuant to AS 7 (relates to contracts entered into since
01.04.2003) :
(a) Contract revenue recognized as revenue gross of service tax Rs.
4080.44 Lacs (Rs. 11834.31 Lacs).
(b) Retention amount (forming part of debtors) Rs. 1.37 Lacs (Rs. 68.10
Lacs).
(c) Due from customers on account of contract work Rs. 5218.67 Lacs
(Rs. 1396.23 Lacs).
(d) Aggregate of cost incurred on construction contract Rs. 2704.40
Lacs (Rs. 12903.56 Lacs),
(e) Aggregate of profit (Loss) recognized against construction contract
Rs. 1376.04 Lacs (Rs. 620.37 Lacs) on the basis of direct cost only.
(f) The amount of advances received Rs, Nil Lacs (nil)
Note 4: Refer Note 4 in schedule 1 to accounts
(a) Preference Share CapitaKfelates to 21,83,000 number of 5%
cumulative preference shares of Rs. 100/- each fully paid up, 1846000
number of which is convertible at the option of share holders.
5. Information pursuant to AS 24:
1) Company's unit at Kanyani manufacturing Jelly Filled Telecom Cable
(JFTC) has discontinued operation with effect from 15.07.2002.
2) Lone expense relating to relevant discontinued operation relates to
depreciation charge of Rs. 85.87 lacs (Rs. 140.45 Lacs) attributable
against ordinary activities.
3) Net fixed assets (Tangible) relating to discontinued operation
amounts to Rs. 589.19 Lacs (Rs. 675.06 Lacs). Considering absence of
binding agreement with any party to dispose off relevant assets, the
same are carried at book value.
4) Other current liability includes Rs. 25.31 Lacs (Rs. 25.31 Lacs)
relating to discontinued operation.
5) Current/Non Current assets pertaining to discontinued operation
include Rs. 46.82 Lacs (Rs. 46.82 Lacs), Rs. 12.87 Lacs (Rs. 12.87
Lacs), Rs. 337.38 Lacs (Rs. 337.38 Lacs) towards long term loans and
advances, inventories and trade receivables outstanding for a period of
more than 6 months respectively,
Mar 31, 2010
(Figures have been stated in Rs. Lacs)
(I) Contingent liabilities not being provided for include:
(a) Counter guarantees aggregating Rs. 12303.18 Lacs (Rs. 12312.20
Lacs) provided to the bankers against guarantees issued by them. There
is hardly any possibility of cash outflow.
(b) Bills discounted Rs. 1045 Lacs (Rs. 343.34 Lacs) Ã possibility of
cash outflow is remote.
(c) (i) Demands aggregating Rs. 0.24 Lacs (Rs. 0.24 Lacs) raised by
Central Excise Authority during 1977 and 1978 were contested as not
payable. The Company was subsequently advised to pay Rs. 13.14 Lacs
(Rs. 13.14 Lacs). But the excise authorities continued claiming the
full amount. The claim was stayed by the Calcutta High Court by its
order dated 15th May 1992. Based on the merit of the case, a favourable
judgment is expected. The possibility of future cash outflow against
the claim is remote and no provision for the deposit has been made for
the outflow.
(ii) Other claims of central excise authority not admitted Rs. 660.43
Lacs (Rs. 396.58 Lacs) and Service Tax authority Rs. 79.76 Lacs (Rs.
79.76 Lacs) in respect of which no reliable payment obligation can be
estimated and as such it is also not possible to assess the impact on
future cash outflow.
(iii) Disallowance on six numbers central excise cases amount involving
Rs. 6.59 Lacs (Rs. 2.43 Lacs) and disallowance on three numbers of
service tax cases amounting to Rs. 13.52 Lacs (Rs. 13.52 Lacs). The
above cases are being agitated before the appropriate authority through
appeals and no cash outflows are envisaged as of now.
(d) Income tax demand of Rs. 27.59 Lacs (Rs. 27.59 Lacs) pertaining to
Assessment Year 92-93 is pending in appeal at Orissa High Court. Going
by merit of the case, possibility of future cash outflow seems remote.
(e) Sales Tax Demands
(i) On account of reassessment from 01/04/98 to 31/03/01. demand of
Rs.258.44 Lacs (Rs.258.44 Lacs) which has been stayed by Orissa High
Court on deposit of Rs. 66.44 Lacs (Rs. 66.44 Lacs). Favourable
judgment is expected from Honble Court. Going by the merit of the case
possibility of any future cash outflow seems remote. No provision is
made due to above reason.
(ii) On account of assessment for years 2001-02 & 2002-03 demand
aggregates to Rs. 83.75 Lacs (Rs. 83.75 Lacs) were raised. The case for
the year 2001-02 involving demand of Rs. 12.14 Lacs (Rs. 12.14 Lacs)
under appeal with Assistant Commissioner of Sales Tax, Orissa has been
stayed against deposit of Rs. 2.50 Lacs (Rs. 2.50 Lacs). In respect of
assessment year 2002-03 involving demand of Rs. 71.61 Lacs (Rs. 71.61
Lacs), the same has been stayed by Commissioner of Sales Tax, Orissa
against deposit of Rs. 18 Lacs (Rs. 18 Lacs). Going by the merit of the
case, possibility of any future cash outflow seems remote. No provision
has been made for the outflow.
(iii) Rs. 33.40 Lacs (Rs. 33.40 Lacs) has been claimed by the Sales Tax
Officer, Baripada in respect ol assessment of sales tax for the year
2003-04 which has been disputed by the Company. In this connection
stay has been granted by Asst. Commissioner of Commercial Tax against
paymen of Rs. 0.23 Lacs (Rs. 0.23 Lacs) which has been accounted for
as Loans and Advances. Goinj , by the merit of the case, possibility of
future cash outflow seems remote. No provision has beei made due to
above reason.
(iv) Rs. 56.74 Lacs (Rs. 56.74 Lacs) has been claimed by the Sales Tax
Officer, Baripada, Orissa on assessment of Sales Tax for the year
2004-2005 which has been reduced to Rs. 10.60 Laci. In respect of such
claims a stay petition has been granted by Commissioner of Commercial
Tax I against payment of Rs. 18 Lacs (Rs. 18 Lacs) which has been
accounted for as Loans and Advances. Going by merit of the case, the
possibility of future cash outflow seems remote. No provision has been
made.
(v) Estimated amount of contingent liability on account of sales tax
amount of Rs. 475.29 Lacs (Rs. 475.29 Lacs) arising out of demands not
admitted by the Company and for which "appeal have been filed with the
appropriate authorities as the Company is of the opinion that the
disputes will be resolved in its favour. Going by the merit of the
case, possibility of any future cash outflow seems remote no provision
for the deposit has been made for the outflow.
(vi) (a) Rs. 115.97 Lacs (Rs. 115.97 Lacs) has been claimed by the
Asst. Commissioner of Commercial Tax, Balasore, on assessment of Sales
Tax for the year 2005-06 which has also been disputed by the Company.
In respect of such claims payment of Rs. 35 Lacs (Rs. 35 Lacs) has been
made. This has been accounted for as Loans and Advances till 31st
December, 2008.
(b) Rs. 21.89 Lacs (Rs. 21.89 Lacs) has been claimed by the Asst.
Commissioner of Commercial Tax, Balasore, on assessment of Entry Tax
for the year 2005-06 which has also been disputed by the Company. In
respect of such claims payment of Rs. 5.50 Lacs (Rs. 5.50 Lacs) has
been made. This has been accounted for as Loans and Advances till 30th
June, 2008. Going by the merit of the cases, possibility of any future
cash outflow in respect of both the demand seems remote. No provision
has been made due to above reason.
(c) Rs. 106.50 Lacs (Rs. 106.50 Lacs) has been claimed by the Asst.
Commissioner of Commercial Tax, Balasore, on assessment of Entry Tax
for the year 2006-07 which has also been disputed by the Company. In
respect of such claims stay appeal is pending against deposit of Rs,
15.00 Lacs. Going by merit of the case, the possibility of future cash
outflow in this regard seems remote.
(d) Rs. 11.38 Lacs (Rs. 11.38 Lacs) has been claimed by the Asst.
Commissioner of Commercial Tax, Balasore, on assessment of Entry Tax
for the year 2006-07 which has also been disputed by the Company. In
respect of such claims stay appeal is pending against deposit of Rs.
0.76 Lacs. Going .by merit of the case, the possibility of future cash
outflow in this connection seems remote.
(f) Arbitration award for Rs. 45.23 Lacs (Rs. 45.23 Lacs) in favour of
the Indian Railways which has been stayed by the Allahabad District
Court. Moreover, invocation of the performance guarantee has been
stayed till disposal of the Companys petition against the award. Since
disposal of the petition is being delayed, a writ petition through
Allahabad High Court is being moved for speedy disposal of the
petition. No reliable estimate can be made for the amount of
obligation, if any, with possible impact thereof on future cash
outflow.
(g) Advances recoverable in cash or in kind or for value to be received
include Rs. 96.85 Lacs (Rs. 96.85 Lacs) pertaining to a guarantee
invoked by a customer. The action of the customer was challenged in
High Court, Ranchi and was favourably disposed of in favour of the
Company. But the customer has taken up the matter to Supreme Court.
Supreme Court advised to expedite completion of arbitration filed by
the Company. The arbitration award was also issued in favour of the
Company. The Company has now filed application for execution of award.
(h) ONGC has invoked performance guarantee for Rs. 438 Lacs furnished
by bank on behalf of the Company following dispute between the Company
and ONGC management concerning execution of a contract. The Company has
contested action of ONGC in Honble High Court, Kolkata on the ground
of unilateral action deliberately undertaken to thwart the progress of
execution of contract for latters own reason. Based on legal opinion,
suggestive of merit of the case in companys favour, no provision has
been made against the amount involved under bank guarantee invoked
(including payments already made to bank) and dues from ONGC against
relevant contract. The High Court now referred the matter to
arbitration.
(II) Contingent liabilities provided for in terms of AS 29 issued by
ICAI.
a) Particulars Opening Provisions made Provisions wthdrawn
Provision during the year during the year
Provision for
doubtful 10.00 Nil Nil
advance
a) Particulars Closing Forum where the
Provision dispute is pending
Provision for 10.00 Kerala High Court
doubtful
advance
b) Following dispute between Company and Kerala State Electricity
Board, the latter has encashed the Performance Guarantee issued by bank
in favour of the Company. The action of customer has been challenged by
the Company in Kerala High Court.
(III) Sales of finished goods is net of claims etcrelating to earlier
periods settled in the current period.
(IV) Sales include sale of manufacturing scrap Rs. 421.09 Lacs (Rs.
692.16 Lacs).
(V) Deferred Tax :
Deferred tax assets include part of carry forward loss disallowed, in
assessment but pending in appeal on the ground of management assertion
of virtual certainty of admissibility of loss in due course based on
merits of the case.
(VI) (a) Parties under MSMED Act, 2006 including the category they
belong to, have being identified on the basis of information from
respective parties responses.
(b) Particulars of due to creditors registered under MSMED Act, 2006
are given here under
(VII) Segment Report: (Pursuant to AS 17 issued by ICA1)
Note : 1. Liabilities do not include long term loans.,
2. Revaluation Reserve has been left out of the purview of the Total
Asset.
3. Unallocated segment results inter alia include the following of the
erstwhile Kalyani unit not presently in operation :
a) Expenses of Rs. Nil Lacs (Rs. 6.50 Lacs), interest Rs. Nil Lacs (Rs.
Nil Lacs) and depreciation of Rs. 173.99 Lacs (Rs. 191.00 Lacs).
b) Segment Assets amounting to Rs. 1,338 Lacs (Rs. 1,512 Lacs)
c) Segment Liability amounting to Rs. 25 Lacs (Rs. 25 Lacs) Ã Current
Liabilities.
d) PY relates to previous year,
(VIII) Information on Related parties pursuant to AS 18 issued by ICAI
The following transactions were carried out with related parties in the
ordinary course of business.
(IX) Employee Benefits
Following adjustments relating to employee benefits have been made in
these accounts in keeping with Accounting Standard 15 (Revised) issued
by the Institute of Chartered Accountants of India.
(IX) Employee Benefits
Following adjustments relating to employee benefits have been made in
these accounts in keeping with Accounting Standard 15 (Revised) issued
by the Institute of Chartered Accountants of India.
G. Off balance sheet liability towards Superannuation against
transitional provisions works out to Rs. 44.50 Lacs amortisable equally
over next 2 years after providing Rs. 22.25 Lacs for the year.
d) The deal relates to 3 years lease agreement with NESL, a subsidiary,
for letting out office premises under arrangement of operational lease.
(XI) One of the banks has charged companys cash credit account by Rs.
59 Lacs during the nine months period contrary to accepted settlement.
The conduct of the bank has not being accepted by the Company and is
taken up with appropriate authority.
(XII) Customs duty on imported goods payable on clearance of goods are
estimated at Rs. 12.42 Lacs (Rs. 7.93 Lacs) which is neither included
in expenditure nor included in the value of such stocks.
(XIII) Information pursuant to AS 28.
Cable Divisions at Baripada, Shyamnagar and Project Division constitute
three cash generating units (CGU). Common fixed assets have been
apportioned among CGUs in the ratio of written down value of fixed
assets held by respective units.
Since value in use, arrived at by way of discounting future cash flow
as on date as estimated by management during assessed life of plants in
terms of technical evaluation for each CGU, exceeds written down value
of assets relevant thereon, no provision for any loss on account of
impairment of fixed asset has been made in accounts thereby also ruling
out the cause of ascertaining the net selling price of the assets.
Discount factor @ 12% p.a has been applied for arriving at as on
date-value of future cash flow which includes 2% against risk factors.
Certain fixed assets are earmarked for transfer to cable operations at
book value for which no impairment is deemed necessary for obvious
reason.
(XIV) Information pursuant to AS 7 (relates to contracts entered into
since 01.04.2003) :
(a) Contract revenue recognized as revenue Rs. 11834.31 Lacs (Rs.
3696.13 Lacs).
(b) Retention amount (forming part of debtors) Rs. 236.01 Lacs (Rs.
68.10 Lacs).
(c) Due from customers on account of contract work Rs. 5051.96 Lacs
(Rs. 1396.23 Lacs).
(d) Aggregate of cost incurred on construction contract Rs. 12903.56
Lacs (Rs. 3075.76 Lacs).
(e) Aggregate of profit (loss) recognized against construction contract
Rs. 1069.25 Lacs (Rs. 620.37 Lacs) on the basis of direct cost only.
(f) The amount of advances received Rs. 123.42 lacs (nil)
Note ; EPS of the previous year has been adjusted in terms of current
status.
(XVI) Arrears of Dividend on Cumulative Preference Shares Rs. 659.15
Lacs (Rs. 550 Lacs).
(XVII) During the year ended on March 2010 restructuring of the
Companys debt under CDR mechanism was implemented. Furthermore, normal
operations of the cable manufacturing units were adversely affected due
to continuing labour unrest leading to suspension of work in Baripada
factory since mid November 2009.
(XVIII) Out of total collection of application money under capital
restructuring scheme, Rs. 0.74 Crores are pending allotment to NRETF
for which necessary formalities are being complied.
(XIX) In compliance with the CDR approved package and pursuant to a
High Court approval, a reduction of share capital of Nicco Engineering
Services Limited (NESL) a wholly owned subsidiary, was carried out.
This resulted in:
a) Nicco Corporation Limited (NCL) receiving an amount of Rs. 506 Lacs
in cash and consequent reduction of investment in subsidiary company.
b) A profit of Rs. 101 Lacs, in cash, being the excess payment received
from the said subsidiary vis-a-vis proportionate book value of the
investment surrendered. This has been recognized as extra ordinary
income.
(XX) Capital base of the Company has been enhanced by Rs. 200 Lacs
pursuant to allotment of 36,56,307 equity shares of Rs. 21- each at a
premium of Rs. 3.47 per share to Nicco Employees Restructuring Trust
Fund in line with CDR package.
(XXI) Advances recoverable in cash or in kind or value to be received
includes expenditure in progress aggregating Rs. 39.48 lacs towards
partial repair of building damaged by fire, the building being
adequately insured against fire damages. Said amount has not been
provided for the expectation of insurance compensation claim thereof to
be lodged on completion of repair work.
(XXIV) 1,10,000 5% cumulative redeemable preference shares of Rs. 100/-
each, pertaining to a preference share holder only, was due for
redemption on February 1, The same is expected to be renewed for a
further period with the consent of the preference shareholder.
(XXV) Unsecured loan, repayable within a year but renewable as felt by
management, is not to be disclosed under short term category.
(XVI) Figures in brackets relates to previous period/year.
(XVII) Figures have been regrouped and rearranged wherever necessary
(XVIII) Schedule 1 to 24 form an integral part of these accounts.