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Notes to Accounts of Nile Ltd.

Mar 31, 2015

1. The Company has only one class of shares i.e. equity shares with equal rights for dividend and repayment. Each holder of the shares is entitled to one vote per share.

2. Term Loans from banks - secured:

(I) Rupee term loan from Andhra Bank [Limit Rs. 1350.00 Lakhs ] outstanding as at 31st March,2015: Rs. 270.00 Lakhs shown as 'current maturities of long-term debt' under the head "Other Current Liabilities", Note - 8 (Previous year - Rs. 540.00 Lakhs) carries interest @ Base Rate 2%, repayable in 60 monthly installments of Rs. 22.50 Lakhs each.

The above loan is secured by equitable mortgage/hypothecation of Land, Buildings & Equipment of the Lead Units at Choutuppal and Tirupati and collaterally secured by charge on the unencumbered Plant & Machinery of Wind Mills at Ramagiri and guarantee by Managing Director of the company in his personal capacity.

3. Deferred payment liabilities:

Deferred payment liability is the sales tax collected and retained under deferment scheme of Government of Andhra Pradesh repayable as per the sanctioned scheme. As per the scheme, the company is eligible to retain the sales tax collected in the first 14 years of operations subject to a maximum of ' 405.79 Lakhs. The Sales Tax deferred in a year should be repaid at the end of 14th year without interest. First repayment of this deferred payment is commenced in financial year 2014-15.

4. Deposits: Deposits carry interest @12% per annum, payable quarterly, repayable as per the terms of repayment agreed, over a period of 24 months from the date of acceptance.

5. There are no continuing defaults as on the Balance sheet date in repayment of the above term loans, deposits and interest thereon and deferred liabilities.

(i) Open cash credit from Andhra Bank (Limit Rs. 4,000 Lakhs , Previous year Rs. 2,500 Lakhs ) and FUBD backed by LC- outside MPBF [(limit) Rs.500 Lakhs , Previous year Rs.750 Lakhs ] carries interest @ Base rate 1.50% and secured by hypothecation of all raw materials, work-in-progress, finished goods, receivables and collaterally secured by book value of unencumbered fixed assets of the company consisting Plant & Machinery of Wind Mills at Ramagiri and Fixed assets i.e Land & Buildings, Plant & Machinery and other assets of Lead Units situated at Choutuppal and Tirupathi and guaranteed by the Managing Director of the company in his personal capacity.

(ii) Inter-corporate and other deposits carry interest @12% per annum, payable quarterly, repayable as per the terms of repayment agreed, over a period ranging from 6 to 12 months from the date of acceptance.

(iii) There are no defaults as on the Balance sheet date in repayment of the above loans, deposits and interest thereon.

6. Employee Benefits (AS-15):

The company has classified various benefits to employees as under:

A) Defined Contribution Plans i) Provident Fund:

Provident fund is operated through the Regional Provident Fund Authority under the scheme. The company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the benefits. These fund is recognized by Income tax authorities. The company has recognized the following amounts in the Statement of Profit and Loss for the year:

(Rs. In lakhs)

SI Particulars 2014-15 2013-14 No.

a) Contribution to 29.22 26.28 provident fund

B) Defined Benefit Plan

i) Gratuity

ii) Leave Encashment

Leave encashment is payable to eligible employees who have earned leaves during the employment and / or on superannuation as per the Company's policy.

Actuarial Valuation in respect of Gratuity and Leave Encashment has been carried out by an independent actuary as at the Balance Sheet date and the details are as under:

7. Segment Reporting - (AS-17):

For management purposes, the Company is organized into two operating divisions - Lead and Wind energy. Lead Division produces Lead and Lead alloys and the Windmills generate electrical energy. However, for the purpose of segment reporting as per AS-17, Segment Reporting, since Wind energy division is not meeting the criteria laid down in the Standard as a reportable segment, the same is not considered as a reportable segment. Hence, the operations are reported under one segment only.

8. Related party disclosures (AS-18):

(a) Name of the related parties and Relationship:

(1) Key Management Personnel:

(i) Sri V.Ramesh, Chairman and Managing Director

(ii) Sri. Sandeep V Ramesh, Executive Director

(iii) Sri. Bikram Keshari Prusty, Company Secretary

(iv) Sri. B Seshagiri Rao, Chief Financial Officer

(2) Related parties:

(i) Smt V.Hemalatha (relative of Chairman and Managing Director & Executive Director)

(ii) Smt. V. Shilpa (relative of Chairman and Managing Director & Executive Director)

(iii) Smt. P.Lalithamaba (relative of Executive Director)

(iv) Smt V.Rajeswari, (relative of Chairman and Managing Director & Executive Director)

(3) Others (companies in which some of the Directors are interested):

(i) Trigeo Technologies Pvt Ltd.

(ii) G.S.R Advisory Services Pvt Ltd.

9. Leases (AS-19):

The Company has taken certain equipment under non cancelable operating lease agreements for a period of 60 months. The lease rental charges, shown under the head 'Operating Lease Charges' during the year ended March, 2015 is Rs.67,86,388/- (Previous year Rs. 48,07,468/-) and maximum obligation on long-term non-cancelable operating lease payable as per the respective agreements are as follows:

10. Contingent Liabilities and commitments – (AS-29):

(to the extent not provided for)

(A) Contingent Liabilities:

(i) Claims against the company not acknowledged as debt:

(a) Service tax demand (including interest), pending appeal preferred by the company - Rs.1.47 lakhs (Previous year - Rs. 7.16 lakhs). This demand has been paid under protest in full.

(b) The company received favorable orders from ITAT on the appeal filed by it for assessment years 1996-97 and 1997-98 and the demand of Rs.42.23 lakhs was nullified. The I.T. Department has filed further appeal against the orders of ITAT in the Hon'ble High Court of A.P and the same is pending disposal. The Management is of the view that no liability will arise in this regard. Accordingly, no contingent liability is recognized for the same.

(ii) Guarantees and letters of credit:

(a) Bank Guarantees issued by Bankers - Rs.14.24 lakhs (Previous year - Rs. 42.81 lakhs)

(b) Letters of Credit issued by Bankers - Rs.952.74 lakhs (Previous year - Rs.1636.76 lakhs).

(iii) Other money for which the company is contingently liable:

Amount claimed by a supplier, not accepted as liability, pending before the Court - Rs.197.74 lakhs (Previous year Rs. 197.74 lakhs). One of the suppliers filed this claim against the Company in the year 1998 in the City Civil Court, Secunderabad and the matter is pending since then. Based on the opinion of the legal counsel, no liability will arise to the Company in this regard.

(B) Commitments: - Nil - (Previous year - Nil-)

11. Additional Information as required under Schedule III to the Companies Act, 2013 to the extent applicable to the company:

12. In the opinion of the board, the assets other than fixed assets and non-current investments, have a value on realization in the ordinary course of business of atleast equal to the amount at which they are stated in the balance sheet.

13. Previous year's figures have been regrouped wherever necessary to conform to the layout adopted in the current year.


Mar 31, 2014

1. Share Capital

The Company has only one class of shares i.e. equity shares with equal rights for dividend and repayment. Each holder of the shares is entitled to one vote per share. Dividend on equity proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

2. Reserves and surplus

Notes:

a) Term Loans from banks-secured:

Rupee term loan from Andhra Bank [Limit Rs. 1,350.00 Lakhs outstanding as at 31st March, 2013: Rs. 540.00 Lakhs including Rs. 270.00 Lakhs shown as ''current maturities of long-term debt'', under the head "Other Current Liabilities", Note - 8 (Previous year - Rs. 810.00 Lakhs) carries interest @ Base Rate 2%, repayable in 60 monthly installments of Rs. 2.25 Lakhs each. The above loan is secured by equitable mortgage/hypothecation of Land, Buildings & Equipment of the Lead Units at Choutuppal and Tirupati and collaterally secured by charge on the unencumbered Plant & Machinery of Wind Mills at Ramagiri and guaranteed by Managing Director of the company in his personal capacity.

b) Deferred payment liabilities:

Deferred payment liability is the sales tax collected and retained under deferment scheme of Government of Andhra Pradesh repayable as per the sanctioned scheme. As per the scheme, the company is eligible to retain the sales tax collected in the first 14 years of operations subject to a maximum of Rs. 405.80 Lakhs. The Sales Tax deferred in a year should be repaid at the end of 14th year without interest. First repayment this of loan commences in financial year 2014-15.

c) Deposits carry interest @12% per annum, payable quarterly, repayable as per the terms of repayment agreed, over a period of 24 months from the date of acceptance.

d) There are no continuing defaults as on the Balance sheet date in repayment of the above term loans, deposits and interest thereon and deferred liabilities.

3. Short-term borrowings

Notes:

(i) Open cash credit from Andhra Bank (limit Rs. 2,500.00 Lakhs, Previous year Rs. 2,500.00 Lakhs) and FUBD backed by LC-outside MPBF (limit) Rs. 750.00 Lakhs, Previous year Rs. 750.00 Lakhs carries interest @ Base rate 2% and secured by hypothecation of all raw materials, work-in-progress, finished goods, receivables and collaterally secured by book value of unencumbered fixed assets of the company consisting Plant & Machinery of Wind Mills at Ramagiri and Fixed assets i.e Land & Buildings, Plant & Machinery and other assets of Lead Units situated at Choutuppal and Tirupati and guaranteed by the Managing Director of the company in his personal capacity.

(ii) Intercorporate and other deposits carry interest @12% per annum, payable quarterly, repayable as per the terms of repayment agreed, over a period ranging from 6 to 12 months from the date of acceptance.

(iii) There are no defaults as on the Balance sheet date in repayment of the above loans, deposits and interest thereon.

4. MEASUREMENT AND DISCLOSURES AS PER ACCOUNTING STANDARDS

4.1. Employee Benefits (AS-15):

The company has classified various benefits to employees as under:

A) Defined Contribution Plans

i) Provident Fund:

Provident fund is operated through the Regional Provident Fund Authority under the scheme. The company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the benefits. These funds are recognized by Income tax authorities.

B) Defined Benefit Plan

i) Gratuity

ii) Leave Encashment

Leave encashment is payable to eligible employees who have earned leaves during the employment and / or on superannuation as per the Company''s policy.

Actuarial Valuation in respect of Gratuity and Leave Encashment has been carried out by an independent actuary as at the Balance Sheet date and the details are as under:

4.2. Segment Reporting - (AS-17):

A) Primary disclosures:

Business Segments: For management purposes, the Company is organized into two major operating divisions - Lead and Wind energy. These divisions are the basis on which the Company reports its primary segment information. Lead Division produces Lead and Lead alloys and the Windmills generate electrical energy. Financial information about these business segments is presented in the table below.

Segment Revenue and Expense: All the revenues and direct expenditure attributable to a particular segment are allocated to the respective segment.

Segment Assets & Liabilities: Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets, net of allowances and provisions, which are reported as direct off sets in the balance sheet. Each of the assets could be specifically identified with the particular segment. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Segment assets and liabilities do not include deferred income taxes.

Note: During the previous financial year, the Glass Lining Division was transferred on slump sale basis. Hence, in the previous year''s figures, information on this division upto the date of transfer were shown as ''Discontinuing Operations''.

B) Secondary Disclosures:

i) Segment revenue from external customers by geographical area :

There are no external customers based on the geographical location, revenues from whom constitute more than 10% of the enterprise revenue.

ii) Total carrying amount of segment assets by geographical location of assets, for each geographical segment whose segment assets are 10% or more of the total assets of all geographical segments and the additions to the same are as under:

C) Accounting Policies:

Accounting policies for segment reporting are the same as adopted in preparation and presentation of the financial statements of the Company.

4.3. Related party disclosures (AS-18):

(i) Key Management Personnel:

(a) Sri V. Ramesh, Chairman and Managing Director

(b) Sri. Sandeep V Ramesh, Executive Director

(ii) Names of related parties:

(a) Smt V. Hemalatha (relative of Managing Director)

(b) Smt V. Rajeswari (relative of Managing Director)

(c) Smt. V. Shilpa (relative of Managing Director)

(d) Smt. P. Lalithamaba (relative of Executive Director)

(iii) Others (companies in which some of the Directors are interested):

(a) Trigeo Technologies Pvt Ltd.

(b) G.S.R Advisory Services Pvt Ltd.

4.4. Leases (AS-19):

The Company has taken certain equipment under non cancelable operating lease agreements for a period of 60 months. The lease rental charges, shown under the head ''Operating Lease Charges'' during the year ended March, 2014 is Rs. 48.07 lakhs (Previous year Rs. 46.96 lakhs) and maximum obligation on long-term non-cancelable operating lease payable as per the respective agreements are as follows:

4.5. Discontinuing operations - (AS-24):

(i) Pursuant to the Business Transfer Agreement (BTA) entered into by the company on 9th July, 2011 for sale of company''s Glass Lining Division, sale of the same was completed in June, 2012. The carrying amount of the assets and liabilities of the Glass Lining Division as on the balance sheet date is nil.

(ii) Other Disclosures:

(a) During the year, out of the amount of Rs. 1,000.00 lakhs kept in Escrow account with a bank, an amount of Rs. 150.00 lakhs together with interest thereon was received on fulfillment of the related terms and conditions of the sale agreement.

4.6. Contingent Liabilities and commitments - (AS-29):

(to the extent not provided for)

(A) Contingent Liabilities:

(i) Claims against the company not acknowledged as debt:

(a) Service tax demand (including interest), pending appeal preferred by the company - Rs. 7.16 lakhs (Previous year - Rs. 7.16 lakhs). This amount has been fully paid under protest.

(b) Property tax demand from GHMC, pending decision on writ filed by the company, aggregating to Rs. 11.70 lakhs (Previous year Rs. 11.70 lakhs). Against this liability, an amount of Rs. 2.34 lakhs (Previous year Rs. 2.34 lakhs) has been paid as per interim orders of the High Court of A.P.

(c) The company received favourable orders from ITAT on the appeal filed by it for assessment years 1996-97 and 1997-98 and the demand of Rs. 42.23 lakhs was nullified. The I.T. Department has filed further appeal against the orders of ITAT in the Hon''ble High Court of A.P. However, the Management is of the view that no liability will arise in this regard. Accordingly, no contingent liability is recognized for the same.

(ii) Guarantees and letters of credit:

(a) Bank Guarantees issued by Bankers - Rs. 42.81 lakhs (Previous year - Rs. 210.65 lakhs)

(b) Letters of Credit issued by Bankers - Rs. 1,636.76 lakhs (Previous year - Rs. 659.53 lakhs).

(iii) Other money for which the company is contingently liable: Amount claimed by a supplier, not accepted as liability, pending before the Court - Rs. 197.74 lakhs (Previous year Rs. 197.74 lakhs).

(B) Commitments: - Nil - (Previous year - Nil-)

5. Additional Information as required under Schedule VI to the Companies Act, 1956 to the extent applicable to the company:

Details of imported & indigenous Raw Materials, Spare parts and components consumed and their percentage to total consumption.

6. On 16-03-2006, the Central Power Distribution Company of Andhra Pradesh Limited (APCPDCL), to whom the company is supplying the Power generated in its Wind Power Project as per Power Purchase Agreement dt.20-05-2002, has filed an application before Andhra Pradesh Electricity Regulatory Commission (APERC) for revision of tariff after the project completed 10 years (i.e., after 29-08-2005).

Pending final adjudication, the APERC vide their interim order dated 16-11-2012 has directed the APCPDCL to pay power tariff @ 50% of the rate paid for the 10 years i.e. Rs. 1.69 per unit (50% of Rs. 3.37) for the power supplied by the company, beyond 10th year. The company has filed an appeal against the interim orders of APERC in Appellate Tribunal for Electricity and the interim order is vacated during the current year. Accordingly, during the year, the company has recorded the income at Rs. 3.37 per unit as per the original agreement.

7. In the opinion of the board, the assets other than fixed assets and non-current investments, have a value on realization in the ordinary course of business of atleast equal to the amount at which they are stated in the balance sheet.

8. General Notes:

(i) Statement of Profit & Loss for the previous year has been prepared showing the following separately as per Schedule- VI and AS-24:

* Revenue, other income, expenses, finance costs, depreciation, profit before tax, tax and profit after tax from Continuing Operations.

* Profit before tax, tax and profit after tax from Discontinuing Operations.

(ii) In the previous year''s figures, details of revenue, expenses and profit from continuing operations and discontinuing operations has been furnished in the disclosures pursuant to AS-24, Discontinuing Operations (see Note No. 4.7).

(iii) Previous year''s figures have been regrouped wherever necessary to conform to the layout adopted in the current year.


Mar 31, 2013

1.1. Employee Benefits (AS-15):

The company has classified various benefits to employees as under:

A) Defined Contribution Plans

i) Provident Fund: Provident fund is operated through the Regional Provident Fund Authority under the scheme. The company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the benefits. These funds are recognized by Income tax authorities. The company has recognized the following amounts in the Statement of Profit and Loss for the year:

B) Defined Benefit Plan

i) Gratuity

ii) Leave Encashment

Leave encashment is payable to eligible employees who have earned leaves during the employment and / or on superannuation as per the Companys policy.

Actuarial Valuation in respect of Gratuity and Leave Encashment has been carried out by an independent actuary as at the Balance Sheet date and the details are as under: 26.3. Segment Reporting – (AS-17):

A) Primary disclosures:

Business Segments: For management purposes, the Company is organized into three major operating divisions – Glass Lining, Wind energy and Lead. These divisions are the basis on which the Company reports its primary segment information. The Glass lining Division produces a broad range of glass-lined equipment. The Windmills generate electrical energy and the Lead Division produces Lead and Lead alloys. Financial information about these business segments is presented in the table below.

Segment Revenue and Expense: All the revenues and direct expenditure attributable to a particular segment are allocated to the respective segment.

egment Assets & Liabilities: Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets, net of allowances and provisions, which are reported as direct off sets in the balance sheet. Each of the assets could be specifically identified with the particular segment. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Segment assets and liabilities do not include deferred income taxes.

Note: During the year under review, the Glass Lining Division was transferred on slump sale basis. Hence, figures relating to this division upto the date of transfer are shown as Discontinuing Operations

B) Secondary Disclosures:

i) Segment revenue from external customers by geographical area :

There are no external customers based on the geographical location, revenues from whom constitute more than 10% of the enterprise revenue.

ii) Total carrying amount of segment assets by geographical location of assets, for each geographical segment whose segment assets are 10% or more of the total assets of all geographical segments and the additions to the same are as under:

C) Accounting Policies:

Accounting policies for segment reporting are the same as adopted in preparation and presentation of the financial statements of the Company.

1.2. Related party disclosures (AS-18):

(i) Key Management Personnel:

(a) Sri V. Ramesh, Chairman and Managing Director

(b) Sri Sandeep Ramesh, Executive Director

(c) Sri V. Sridharan, COO (for part of the year)

(ii) Names of related parties:

(a) Smt V. Hemalatha (relative of Managing Director)

(b) Smt V. Rajeswari (relative of Managing Director)

(c) Smt. V. Shilpa (relative of Managing Director)

(d) Sri S. V. Narasimha Rao-Non-Executive Director

(e) Sri M. R. Naidu – Non-Executive Director

(f) Sri S. Arun (relative of Director)

(iii) Others (companies in which some of the Directors are interested):

(a) Trigeo Technologies Pvt Ltd.

(b) G.S.R Advisory Services Pvt Ltd.

(c) Beardsell Ltd.

1.3. Discontinuing operations – AS 24:

(i) Pursuant to the Business Transfer Agreement (BTA) entered into by the company on 9th July, 2011 for sale of companys Glass Lining Division, sale of the same was completed in June, 2012. The carrying amount of the assets and liabilities of the Glass Lining Division as on the date of Transfer stood at Rs.3993.91 lakhs (previous year Rs.4489.13 lakhs) and Rs.559.57 lakhs (previous year Rs.718.73 lakhs) respectively.

(ii) Other Disclosures:

(a) Net selling price of the net assets for which the company has entered into the sale agreement - Rs.5402.72 lakhs.

(b) Part of the sale consideration aggregating to Rs.1000.00 lakhs has been kept with an Escrow Agent in Escrow Account and the same will be received after fulfillment of the conditions specified in the BTA.

1.4. Contingent Liabilities and commitments – (AS-29):

(to the extent not provided for)

(A) Contingent Liabilities:

(i) Claims against the company not acknowledged as debt:

(a) Service tax demand (including interest), pending appeal preferred by the company – Rs.7.16 lakhs (Previous year – Rs.3.20 lakhs). This amount has been fully paid under protest.

(b) Property tax demand, pending decision on writ filed by the company Rs.11.70 lakhs (Previous year 11.70 lakhs). Against this liability, an amount of Rs.2.34 lakhs has been paid as per interim orders of the High Court of A.P.

(c) The company received favourable orders from ITAT on the appeal filed by it for assessment years 1996-97 and 1997-98 and the demand of Rs.42.23 lakhs was nullified. The I.T. Department has filed further appeal against the orders of ITAT in the Honble High Court of A.P. However, the Management is of the view that no liability will arise in this regard. Accordingly, no contingent liability is recognized.

(ii) Guarantees and letters of credit:

(a) Guarantees issued by Bankers – Rs.210.65 lakhs (Previous year Rs.455.94 lakhs)

(b) Letters of Credit issued by Bankers–Rs.659.54 lakhs (Prev. year Rs.898.98 lakhs)

(iii) Other money for which the company is contingently liable:

Amount claimed by a supplier, not accepted as liability, pending before the Court – Rs.197.74 lakhs (Previous year Rs.197.74 lakhs).

(B) Commitments: - Nil - (Previous year – Nil-)

2. On 16.03.2006, the Central Power Distribution Company of Andhra Pradesh Limited (APCPDCL), to whom the company is supplying the Power generated in its Wind Power Project as per Power Purchase Agreement dt.20.05.2002, has filed an application before Andhra Pradesh Electricity Regulatory Commission (APERC) for revision of tariff after the project completed 10 years (i.e., after 29.08.2005).

Pending final adjudication, the APERC vide their interim order dated 16.11.2012 has directed the APCPDCL to pay power tariff @ 50% of the rate paid for the 10 year i.e. Rs.1.69 per unit for the power supplied by the company, beyond 10th year. Accordingly, during the current year, the company has accounted for the value of Wind Power supplied to APCPDCL @ Rs.1.69 per unit. The company has preferred appeal against the interim orders of APERC in Appellate Tribunal for Electricity and the same is pending.

3. In the opinion of the board, the assets other than fixed assets and non–current investments, have a value on realization in the ordinary course of business of atleast equal to the amount at which they are stated in the balance sheet.

4. General Notes:

(i) Statement of Profit & Loss for the year has been prepared showing the following separately as per Schedule-VI and AS-24:

- Revenue, other income, expenses, finance costs, depreciation, profit before tax, tax and profit after tax from Continuing Operations.

- Profit before tax, tax and profit after tax from Discontinuing Operations.

(ii) Details of revenue, expenses and profit from continuing operations and discontinuing operations has been furnished in the disclosures pursuant to AS-24, Discontinuing Operations (see Note No.26.7). (iii) Balance Sheet items and disclosures pursuant to the applicable Accounting Standards of the previous year include the assets and liabilities of discontinuing operations also. Hence, they are not directly comparable with that of current year.

(iv) Previous years figures have been regrouped wherever necessary to conform to the layout adopted in the current year.


Mar 31, 2012

A) Term Loans from banks - secured:

(i) Rupee term loan from Andhra Bank [Limit Rs. 320.00Lakhs] outstanding as at 31st March,2012: Rs. 62.21 Lakhs (Previous year - Rs. 168.88 Lakhs) carries interest @ Base Rate 2.75%, repayable in 36 monthly installments of Rs. 8.89 Lakhs each.

(ii) Rupee term loan from Andhra Bank [Limit Rs. 315.00 Lakhs] outstanding as at 31st March,2012: Rs. 61.32 Lakhs (Previous year - Rs. 166.32 Lakhs) carries interest @ Base Rate 2.75%, repayable in 36 monthly installments of Rs. 8.75 Lakhs each.

(iii) Rupee term loan from Andhra Bank [Limit Rs. 1350.00 Lakhs] outstanding as at 31st March,2012: Rs. 1102.49 Lakhs (Previous year - Rs. 657.87 Lakhs) carries interest @ Base Rate 3.75%, repayable in 60 monthly installments of Rs. 22.50 Lakhs each. .

All the above loans are secured by equitable mortgage/hypothecation of Land, Buildings & Equipment of the Glass Lining Division at Nacharam and Lead Units at Choutuppal and Tirupathi and collaterally secured by charge on the unencumbered Plant & Machinery of Wind Mills at Ramagiri and guaranteed by Managing Director of the company in his personal capacity.

(iv) Additional Working capital loan from Andhra Bank under 'Term loan facility' [Limit Rs. 500.00 Lakhs] outstanding as at 31st March,2012: Rs. 111.11 Lakhs (Previous year - Rs. 277.78 Lakhs) carries interest @ Base Rate 3.75%, repayable in 36 monthly installments of Rs. 13.89 Lakhs each. The loan is secured by first charge on all the unencumbered fixed assets of the Company and extension of the security of Term loans and collaterally secured by book value of unencumbered fixed assets consisting of Land and Building at Nacharam Unit and Plant and Machinery of Windmills at Ramagiri and first charge on all fixed assets including Land and Buildings of Lead Units at Choutuppal and Tirupathi and guaranteed by the Managing Director of the company in his personal capacity.

Note: Outstanding balance shown in (i) to (iv) above includes the amount due for less than 12 months which is shown as "current maturities of long term debt" under the head "other current liabilities", note No.8.

b) Deferred payment liabilities:

Deferred payment liability is the sales tax collected and retained under deferment scheme of Government of Andhra Pradesh repayable as per the sanctioned scheme. As per the scheme, the company is eligible to retain the sales tax collected in the first 14 years of operations subject to a maximum of Rs. 405.80 Lakhs. The Sales Tax deferred in a year should be repaid at the end of 14th year without interest. First repayment of loan commences in 2014-15.

Note: There are no continuing defaults as on the Balance sheet date in repayment of all the above term loans and interest thereon and deferred liabilities.

Notes:

(i) Open cash credit from Andhra Bank (limit Rs. 5000.00 Lakhs, Previous year Rs. 4000.00 Lakhs) and FUBD backed by LC- outside MPBF (limit) Rs. 750.00 Lakhs, Previous year Rs. 750.00 Lakhs carries interest @ Base rate 3.25% and secured by hypothecation of all raw materials, work-in-progress, finished goods, receivables and collaterally secured by book value of unencumbered fixed assets of the company consisting of Land, Building, Plant & Machinery, other assets situated at Nacharam Unit and Plant & Machinery of Windmills at Ramagiri and Fixed assets i.e Land & Buildings, Plant & Machinery and other assets of Lead Units situated at Choutuppal and Tirupathi and guaranteed by the Managing Director of the company in his personal capacity.

(ii) Intercorporate and fixed deposits carry interest @12% per annum, payable quarterly, repayable as per the terms of repayment agreed, over a period ranging from 6 to 36 months from the date of acceptance.

(iii) There are no defaults as on the Balance sheet date in repayment of the above loans, deposits and interest thereon.

Notes:

(i) Open cash credit from Andhra Bank (limit Rs. 5000.00 Lakhs, Previous year Rs. 4000.00 Lakhs) and FUBD backed by LC- outside MPBF (limit) Rs. 750.00 Lakhs, Previous year Rs. 750.00 Lakhs carries interest @ Base rate 3.25% and secured by hypothecation of all raw materials, work-in-progress, finished goods, receivables and collaterally secured by book value of unencumbered fixed assets of the company consisting of Land, Building, Plant & Machinery, other assets situated at Nacharam Unit and Plant & Machinery of Wind Mills at Ramagiri and Fixed assets i.e Land & Buildings, Plant & Machinery and other assets of Lead Units situated at Choutuppal and Tirupathi and guaranteed by the Managing Director of the company in his personal capacity.

(ii) Intercorporate and fixed deposits carry interest @12% per annum, payable quarterly, repayable as per the terms of repayment agreed, over a period ranging from 6 to 36 months from the date of acceptance.

(iii) There are no defaults as on the Balance sheet date in repayment of the above loans, deposits and interest thereon.

1.1. Employee Benefits (AS-15):

The company has classified various benefits to employees as under:

A) Defined Contribution Plans Provident Fund:

Provident fund is operated through the Regional Provident Fund Authority under the scheme. The company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the benefits. These funds are recognized by Income tax authorities. The company has recognized the following amounts in the Statement of Profit and Loss for the year:

B) Defined Benefit Plan

i) Gratuity

ii) Leave Encashment

Leave encashment is payable to eligible employees who have earned leaves during the employment and / or on superannuation as per the Company's policy.

Actuarial Valuation in respect of Gratuity and Leave Encashment has been carried out by an actuary as at the Balance Sheet date and the details are as under:

1.2. Segment Reporting - (AS-17):

A) Primary disclosures:

Business Segments: For management purposes, the Company is organized into three major operating divisions - Glass Lining, Wind energy and Lead. These divisions are the basis on which the Company reports its primary segment information. The Glass lining Division produces a broad range of glass-lined equipment. The Windmills generate electrical energy and the Lead Division produces Lead and Lead alloys. Financial information about these business segments is presented in the table below.

Segment Revenue and Expense: All the revenues and direct expenditure attributable to a particular segment are allocated to the respective segment.

Segment Assets & Liabilities: Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets, net of allowances and provisions, which are reported as direct off sets in the balance sheet. Each of the assets could be specifically identified with the particular segment. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Segment assets and liabilities do not include deferred income taxes.

B) Secondary Disclosures:

i) Segment revenue from external customers by geographical area :

There are no external customers based on the geographical location, revenues from whom constitute more than 10% of the enterprise revenue.

ii) Total carrying amount of segment assets by geographical location of assets, for each geographical segment whose segment assets are 10% or more of the total assets of all geographical segments and the additions to the same are as under:

(Note: Figures in brackets relate to previous year)

C) Accounting Policies:

Accounting policies for segment reporting are the same as adopted in preparation and presentation of the financial statements of the Company.

1.3. Related party disclosures (AS-18):

(i) Key Management Personnel:

(a) Sri V.Ramesh, Chairman and Managing Director

(b) Sri. Sandeep Ramesh, Executive Director

(c) Sri K.V.Ramana, COO - NFD & CFO (for part of the year)

(d) Sri V.Sridharan, COO - GLD

(ii) Names of related parties:

(a) Smt V.Hemalatha (relative of Director)

(b) Smt V.Rajeswari (relative of Director)

(c) Smt. V. Shilpa (relative of Director)

(d) Sri S.V. Narasimha Rao (Non-Executive Director)

(e) Sri M.R.Naidu (Non-Executive Director)

(f) Suraneni Arun (relative of Director)

(iii) Others (companies in which some of the Directors are interested):

(a) Trigeo Technologies Pvt Ltd.

(b) G.S.R Advisory Services Pvt Ltd.

(c) Beardsell Ltd.

1.4. Discontinuing operations - AS 24:

(i) Initial Disclosure

On 9th July, 2011, the Board of Directors entered into a Business Transfer Agreement (BTA) to dispose off company's Glass Lining Division, which is also a separate segment as per AS-17, Segment Reporting. The disposal is consistent with the company's long term strategy.

Sale of Glass Lining Division was completed in June, 2012. The carrying amount of the assets of the Glass Lining Division as on the date of Balance sheet was Rs. 4489.13 Lakhs (previous year Rs. 4556.22 Lakhs) and on the said date its liabilities were Rs. 718.73 Lakhs (previous year Rs. 834.66 Lakhs). The following statement shows the revenue and expenses of continuing and discontinuing operations:

(ii) Other Disclosures:

(a) Net selling price of the net assets for which the company has entered into the sale agreement: Rs. 5850.00 Lakhs, subject to change in the net current assets on the date of transfer.

(b) Expected timing of receipt of the cash flows: June,2012 onwards

(c) Carrying amount of net assets of Glass Lining Division on the balance sheet date: Rs. 3770.40Lakhs

1.5. Contingent Liabilities and commitments - (AS-29):

(to the extent not provided for)

A) Contingent Liabilities:

(i) Claims against the company not acknowledged as debt:

(a) Service tax demand, pending decision on appeal preferred by the company- Rs. 3.20 Lakhs (Previous year - Rs. 3.20 Lakhs)

(b) Income tax demand, pending decision on appeal preferred by the company - Nil- (Previous year - Rs. 42.23 Lakhs)

(c) Property tax demand, pending decision on writ filed by the company Rs. 10.93 Lakhs (Previous year -Nil-)

(ii) Guarantees and letters of credit:

(a) Bank Guarantees issued by Bankers - Rs. 455.94 Lakhs (Previous year Rs. 354.56 Lakhs)

(b) Letters of Credit issued by Bankers - Rs. 898.98 Lakhs (Previous year Rs. 2024.70 Lakhs).

(iii) Other money for which the company is contingently liable:

Amount claimed by a supplier, not accepted as liability, pending before the court - Rs. 197.74 Lakhs (Previous year Rs. 197.74 Lakhs).

(B) Commitments:

Estimated amount of works remaining to be executed on capital account, net of advances -Nil- (Previous year- Rs. 900.00 Lakhs)

2. In the opinion of the board, the assets other than fixed assets and non-current investments, have a value on realization in the ordinary course of business of atleast equal to the amount at which they are stated in the balance sheet.

3. General Notes to the financial statements:

(i) Statement of Profit & Loss for the year has been prepared showing the following separately as per Schedule-VI (Revised) and AS-24:

- Revenue, other income, expenses, finance costs, depreciation, profit before tax, tax and profit after tax from Continuing Operations.

- Profit before tax, tax and profit after tax from Discontinuing Operations.

(ii) Details of revenue, expenses and profit from continuing operations and discontinuing operations has been furnished in the disclosures pursuant to AS-24, Discontinuing Operations (see Note No.25.6).

(iii) Disclosures pursuant to the applicable Accounting Standards and additional information relating to the Balance Sheet and the Statement of Profit & Loss as required under Schedule-VI (Revised) furnished in the Notes to the financial statements include the aggregate information pertaining to the Continuing and Discontinuing Operations of the Company.

(iv) Previous year's figures have been regrouped wherever necessary to conform to the format of revised Schedule-VI and the layout adopted in the current year.


Mar 31, 2011

I) Secured Loans:

a) Working capital loans from Andhra Bank under Open Cash Credit facility (limit Rs. 4000.00 lakhs

(Prev. year Rs. 2500.00 lakhs), adhoc limit of Rs. Nil (Previous year Rs. 500.00 lakhs) and FUBD limit (backed by LC- outside MPBF) of Rs. 750.00 lakhs (Previous year Rs. 750.00 lakhs) are secured by hypothecation of all raw materials, work-in-progress, fi nished goods, receivables and collaterally secured by book value of unencumbered fi xed assets consisting of Land and Building, Plant & Machinery, other assets at Nacharam Unit and Plant & Machinery of Wind Mills at Ramagiri and Fixed assets i.e Land & Buildings, Plant & Machinery, other assets of Lead Units at Choutuppal and at Tirupathi and guaranteed by the Managing Director of the company in his personal capacity.

b) Additional Working capital loan from Andhra Bank under Term loan( Limit Rs. 500 lakhs, Prev. year Rs. 500 Lakhs) is secured by fi rst charge on all the unencumbered fi xed assets of the Company and extension of the security of Term loans I, II and III and collaterally secured by book value of unencumbered fi xed assets consisting of Land and Building at Nacharam Unit and Plant and Machinery of Wind Mills at Ramagiri and fi rst charge on all fi xed assets including Land and Buildings of Lead Units at Choutuppal and Tirupathi and guaranteed by the Managing Director of the company in his personal capacity.

c) Term Loans from Andhra Bank II , III and V [limits of Rs. 320 lakhs, Rs. 315 lakhs and 1350 lakhs] (Previous year – Rs. 320 lakhs, Rs. 315 lakhs and Rs. Nil) are secured by equitable mortgage/ hypothecation of Land, Buildings & Equipment at the Glass Lining Division Unit at Nacharam and Lead Units at Choutuppal and Tirupathi and collaterally secured by charge on the unencumbered Plant & Machinery of Wind Mills at Ramagiri and guaranteed by Managing Director of the company in his personal capacity.

d) Hire-Purchase Loans are secured by hypothecation of specifi c assets acquired with those loans.

ii) Fixed Assets:

a) Some of the fi xed assets were revalued during the fi nancial year 2000-01 based on the valuation report of an approved valuer. The resultant net surplus on such revaluation of assets amounting to Rs. 5,03,56,554/- was credited to Revaluation Reserve Account in that year.

b) Depreciation for the current year on revalued value of fi xed assets aggregating to Rs. 13,92,939/-

(previous year Rs. 20,11,347/-) has been withdrawn from Revaluation Reserve account and credited to Profi t and Loss Account by adjustment in the depreciation account.

iii) Current Assets, Loans & Advances:

a) In the opinion of the Management, the Current Assets, Loans & Advances have a value on realization will be equal to the amount at which they are stated in the Balance Sheet and provision for all known liabilities has been made.

iv) Deposits :

Fixed Deposits with Banks include:

- Rs. 1,25,78,150/-(Previous year Rs. 93,47,040) pledged to the Bank towards margin money for Bank Guarantees and Letters of Credit issued on behalf of the Company.

- Rs. 48,10,882/-(Previous year Rs. 17,29,162/-) kept as security deposit with bank for the Fixed deposits accepted as required U/s.58A of the Companies Act,1956.

vi) Capitalization of Borrowing Costs:

Out of the interest paid on term loans, an amount of Rs. 14.07 lakhs (Prev. Year Rs.13.40 lakhs), being the interest on borrowings for setting up the Lead Unit at Tirupathi up to the date of commissioning has been capitalized/kept in CWIP for capitalising to the respective capital assets in future.

ix) Related party disclosures:

(i) Key Management Personnel:

(a) Sri V.Ramesh, Managing Director

(b) Sri K.V.Ramana, CFO & COO

(c) Sri V.Sridharan, COO

(ii) Related parties:

(a) Smt V.Hemalatha, relative of Director

(b) Smt V.Rajeswari, relative of Director

(c) Smt. V. Shilpa, relative of Director

(d) Sri. Sandeep Ramesh, relative of Director

(e) Sri S.V. Narasimha Rao-Non-Executive Director

(f) Sri M.R.Naidu – Non-Executive Director

(g) Sri Suraneni Arun, relative of Director

(iii) Others:

(i) Trigeo Technologies Pvt Ltd.

x) Segmental Information:

A) Primary disclosures:

Business Segments: For management purposes, the Company is organized into three major operating divisions – Glass Lining, Wind energy and Lead. These divisions are the basis on which the Company reports its primary segment information. The Glass lining Division produces a broad range of glass-lined equipment. The Windmills generate electrical energy and the Lead Division produces Lead and Lead alloys. Financial information about these business segments is presented in the table below.

Segment Revenue and Expense: All the revenues and direct expenditure attributable to a particular segment are allocated to the respective segment.

Segment Assets & Liabilities: Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fi xed assets, net of allowances and provisions, which are reported as direct off sets in the balance sheet. Each of the assets could be specifi cally identifi ed with the particular segment. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Segment assets and liabilities do not include deferred income taxes.

B) Secondary Disclosures:

i) Segment revenue from external customers by geographical area :

There are no external customers based on the geographical location, revenues from whom constitute more than 10% of the enterprise revenue.

C) Accounting Policies:

Accounting policies for segment reporting are the same as adopted in preparation and presentation of the fi nancial statements of the Company.

xi) Employee Benefi ts:

The company has classifi ed various benefi ts to employees as under:

A) Defi ned Contribution Plans

Provident Fund:

The provident fund is operated through the Regional Provident Fund Authority under the scheme. The company is required to contribute a specifi ed percentage of payroll cost to the retirement benefi t schemes to fund the benefi ts. These funds are recognized by Income tax authorities.

B) Defi ned Benefi t Plan

i) Gratuity

ii) Leave Encashment

Leave encashment is payable to eligible employees who have earned leaves during the employment and / or on separation as per the Company's policy.

xiii) Previous year's figures have been regrouped wherever necessary to conform with the layout adopted in the current year and paisa is rounded off to the nearest rupee.


Mar 31, 2010

(i) Bank Guarantees and Letters of Credit (which are not crystallized) issued by Bankers and not provided for Rs.18.97 crores (Previous year Rs. 9.09 crores).

(ii) Amount claimed by suppliers but not accepted as liability, which is pending before the court - Rs.1.98 crores (Previous year Rs.1.98 crores).

(iii) Claims against the company not acknowledged as debts in respect of Income tax matters, pending decisions on appeals made by the company - Rs.56.73 lakhs (Previous year - Rs.22.90 lakhs).

(iv) Claims against the company not acknowledged as debts in respect of Service tax matters, pending decisions on appeals made by the company - Rs.3.20 lakhs (Previous year - Rs.3.20 lakhs).

(i) Secured Loans:

(a) Working capital loans from Andhra Bank under Open Cash Credit facility (limit Rs. 2,500.00 lakhs (previous year Rs.2,500.00 lakhs), adhoc limit of Rs.500.00 lakhs (Previous year Nil) and FUBD limit (backed by LC - outside MPBF) of Rs.750.00 Lakhs (Previous Year Nil) are secured by hypothecation of all raw materials, work-in-progress, finished goods, receivables and collaterally secured by book value of unencumbered fixed assets consisting of Land and Building, Plant & Machinery, other assets at Nacharam Unit and Plant & Machinery of Wind Mills at Ramagiri and Fixed assets i.e Land & Buildings, Plant & Machinery, other assets of Lead Units at Choutuppal and at Tirupathi and guaranteed by the Managing Director of the company in his personal capacity.

(b) Additional Working capital loan from Andhra Bank under Term loan (limit Rs. 500.00 lakhs, Previous year Nil) is secured by first charge on all the unencumbered fixed assets of the Company and extension of the security of Term loans I, II and III and collaterally secured by book value of unencumbered fixed assets consisting of Land and Building at Nacharam Unit and Plant and Machinery of Wind Mills at Ramagiri and first charge on all fixed assets including Land and Buildings of Lead Units at Choutuppal and Tirupathi and guaranteed by the Managing Director of the company in his personal capacity.

(c) Term Loans from Andhra Bank I, II and III [limits of Rs.170 lakhs, Rs.320 lakhs and Rs.315 lakhs] (Previous year - Rs.170 lakhs, Rs.320 lakhs and Rs.315 lakhs) are secured by equitable mortgage/ hypothecation of Land, Buildings & Equipment at the Glass Lining Division Unit at Nacharam and Lead Units at Choutuppal and Tirupathi and collaterally secured by charge on the unencumbered Plant & Machinery of Wind Mills at Ramagiri and guaranteed by Managing Director of the company in his personal capacity.

(d) Hire-Purchase Loans are secured by hypothecation of specific assets acquired

with those loans.

(ii) Fixed Assets:

(a) Some of the fixed assets were revalued during the financial year 2000-01 based on the valuation report of an approved valuer. The resultant net surplus on such revaluation of assets amounting to Rs.5,03,56,554/- was credited to Revaluation Reserve Account in that year.

(b) Depreciation for the current year on revalued value of fixed assets aggregating to Rs.20,11,347/- (previous year Rs.20,24,712/-) has been withdrawn from Revaluation Reserve account and credited to Profit and Loss Account by adjustment in the depreciation account.

(iii) Current Assets, Loans & Advances:

In the opinion of the Management, the Current Assets, Loans & Advances have a value on realization which will be equal to the amount at which they are stated in the Balance Sheet and provision for all known liabilities has been made.

(iv) Deposits :

Deposits with Banks include:

-Rs.93,47,040/- (Previous year Rs. 49,82,230/-) pledged to the Bank towards margin money for Bank Guarantees and Letters of Credit issued on behalf of the Company.

-Rs.17,29,162/-(Previous year Rs.10,64,162/-) kept as security deposit for the Fixed deposits as required U/s.58A of the Companies Act,1956.

(v) Investments:

The companys investment in the shares of a Foreign company viz., M/s. GLW Ltd., Georgia, as at the year end stood at Rs.91.16 lakhs (Previous year Rs.86.52 lakhs) equivalent to 19.55% (previous year 18.63%) of the capital of the said company.

(vi) Sundry Creditors:

(a) The names of the Small Scale Industrial (SSI) undertakings to whom the Company owe any sum together with interest outstanding for more than 30 days as at 31-03-2010 are Nil (Previous year Nil).

(b) The disclosures relating to Micro and small enterprises as at 31st March, 2010 are as under:-

(vii) Fraud on the company:

During the year under review, in the course of importing raw materials, one of the suppliers committed a fraud on the company by sending fictitious sale documents and encashed the letter of credit opened by the company. The resultant loss of Rs.49.20 lacs has been charged to the Profit & Loss Account. The company has initiated steps to recover the loss.

(viii) Capitalization of Borrowing Costs:

An amount of Rs.13.40 lacs (Previous Year Rs. 40.75 lakhs) being the interest on borrowings for setting up the Lead Unit at Tirupathi up to the date of commissioning has been capitalized to the respective capital assets.

(xi) Related party disclosures:

(i) Key Management Personnel :

(a) Sri V.Ramesh, Managing Director

(b) Sri K.V.Ramana, COO (NFD) & CFO

(c) Sri V.Sridharan, COO (GLD) (ii) Names of related parties:

(a) Smt V.Hemalatha (relative of Director)

(b) Smt V.Rajeswari ,,

(c) Smt. V. Shilpa ,,

(d) Sri Sandeep Ramesh ,,

(e) D.Bharati Devi ,,

(f) Dr. M.R.Naidu, Non-Executive Director

(xii) Segmental Information:

A) Primary disclosures:

Business Segments: For management purposes, the Company is organized into three major operating divisions - Glass Lining, Wind energy and Lead. These divisions are the basis on which the Company reports its primary segment information. The Glass lining Division produces a broad range of glass- lined equipment. The Windmills generate electrical energy and the Lead Division produces Lead and Lead alloys. Financial information about these business segments is presented in the table below.

Segment Revenue and Expense: All the revenues and direct expenditure attributable to a particular segment are allocated to the respective segment.

Segment Assets & Liabilities: Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets, net of allowances and provisions, which are reported as direct off sets in the balance sheet. Each of the assets could be specifically identified with the particular segment. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Segment assets and liabilities do not include deferred income taxes.

C) Accounting Policies:

Accounting policies for segment reporting are the same as adopted in preparation and presentation of the financial statements of the Company.