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Notes to Accounts of Nicco Corporation Ltd.

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a) Particulars Opening Provisions made Provisions withdrawn Provision during the year during the year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,

 
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