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Notes to Accounts of RTS Power Corporation Ltd.

Mar 31, 2015

Particulars Year Ended Year Ended 31st March, 31st March, 2015 2014

1 Contingent Liabilities

Contingent Liability not provided for in respect of:

(a) WBVAT (i) 25,891,335 25,100,009

(b) CST (ii) 4,997,476 3,496,723

(c) Entry Tax <"> 286,587 8,550,596

(d) UP Sales Tax - 5,133,120

(e) Rajasthan VAT 12,913,097 8,884,848

(f) Income Tax - 2,430,439

44,088,495 53,595,735

Notes w.r.t. contingent liabilities disclosed above :

(i) The Sales Tax Authorities have raised demand for Rs. 6,23,369/- for the financial year 2008-09, Rs. 40,46,172/- for the financial year 2009-10, Rs. 2,04,21,568/- for the financial year 2010-11 and Rs. 7,91,326/- for the financial year 2011-12 denying the Company the benefit of Input Tax Credit (ITC) validly claimed as per the tax invoices. The Company has preferred an appeal with appelate authorities based on the tax invoices available with the Company and other relevant records. The Company is reasonably certain that the demand will be reversed and the same shall not have any adverse impact on the financial statements. therefore no provision for the same required to be made in the books of accounts of the Company.

(ii) The Sales Tax Authorities have raised demand for Rs.10,89,625/- for the financial year 2008-09, Rs. 5,11,027/- for the financial year 2009-10, Rs. 18,96,071/- for the financial year 2010-11 and Rs. 15,00,753/- for the financial year 2011-12 denying the Company the benefit of concessional tax under "C" Forms, way bills submitted and set off of Input Tax Credit (ITC) / Input VAT Credit against the Central Sales Tax (CST) liability. The Company has preferred an appeal with the appelate authorities based on the validly available ITC and "C" Forms available with the Company. The management is, therefore, reasonably certain that the demand will be reversed and the same shall not have any adverse impact on the financial statements and hence no provision for the same is required to be made in the books of accounts of the Company.

(iii) Contingent Liabilities with regard to Entry Tax

Commercial Taxes Officer, Special Circle III Jaipur vide Assessment Order dated 02.03.2007 for the year 2003-04 & Assessment Order dated 16.03.2009 for the year 2005-06 has communicated the demand of Entry Tax under Entry of Goods in to Local Area Act, 1999 of Rs. 214420/- for 2003- 04, Rs. 72167/- for 2005-06 which is disputed by the company.

(iv) Contingent Liabilities with regard to VAT on Freight and Insurance

Commercial Taxes Anti Evasion Rajasthan I Jaipur vide Order dated 25.02.2014, 08.10.2014, 31.12.2014 and 13.08.2014 has communicated the demand of VAT on Freight & Insurance recoverable with interest and penalty amounting Rs. 1499495/- for 2007-08, Rs. 2084185/- for 2008- 09, Rs. 1944064/- for 2009-10, Rs. 2412822/- for 2010-11 and Rs. 4972531/- for 2011-12. Based on interpretations of relevant provisions, the company has been advised that the additional demand raised is likely to be either deleted or substantially reduced and accordingly no provision is considered necessary.

2 Previous years figures have been re-grouped / re-arranged wherever considered necessary to conform to current year presentation.

3 RELATED PARTY DISCLOSURES

Related party disclosures as required by Accounting Standard (AS-18) on "Related Party Disclosures" notified under the Companies (Accounting Standard) Rules, 2006 are as under : Related Parties with whom transactions have taken place :

i) Key Management Personnel

- Mr. Rajendra Bhutoria

- Mr. Abhay Bhutoria

ii) Relatives of Key Management Personnel

- Mr. Sharad Bhutoria

iii) Wholly Owned Subsidiary

- Blue Nile Projects Ltd.

iv) Subsidiary

- ABAY Energy Private Limited Company

v) Enterprises where Key Management Personnel have significant influence.

- Abhay Transformers Pvt Ltd

- Bhutoria Agrotech Limited

- Bhutoria Brothers Limited

- Bhutoria Investments (P) Limited

- Bhutoria Properties

- Bhutoria Transformers & Rectifiers (P) Ltd.

- BLB Cables & Conductors (P) Ltd.

- Howrah Warehouse (P) Ltd.

- Kalinga Petrochemicals (P) Ltd. ( Upto 03.03.2015 )

- Kalinga Petrochemicals LLP. (w.e.f 04.03.2015)

- Ladnun Agricultural Farms (P) Ltd.

- Rajasthan Transformers & Switchgears (P) Ltd.


Mar 31, 2014

1 DEFERRED TAX LIABILITIES (NET)

In accordance with Accounting Standard 22 on Accounting for Taxes on Income, the Company has accounted for Deferred Asset / Liability. The break up of the deferred tax assets and liability as on 31st March, 2014 are as under :

Partculars Year Ended Year Ended 3/31/2014 3/31/2013

32 Contingent Liabilities

Contingent Liability not provided for in respect of:

(a) WBVAT 25,100,009 -

(b) CST 3,496,723 -

(c) Entry Tax 8,550,596 5,084,665

(d) UP Sales Tax 5,133,120 5,133,120

(e) Rajasthan VAT 8,884,848 8,794,392

(f) Income Tax 2,430,439 2,079,274

53,595,735 21,091,451

2 RELATED PARTY DISCLOSURES

Related party relationship in terms of AS-18 - Related Party Disclosures have been certified by the management and relied upon by the Auditors. There are no related parties where control exists in terms of AS-18 .

i) Key Management Personnel

- Mr. Rajendra Bhutoria

- Mr. Abhay Bhutoria

ii) Relatives of Key Management Personnel

- Mr. Sharad Bhutoria

iii) Wholly Owned Subsidiary

- Blue Nile Projects Ltd.

iv) Enterprises where Key Management Personnel have significant influence.

- ABAY Energy Private Limited Company

- Abhay Transformers Pvt Ltd

- Bhutoria Agrotech Limited

- Bhutoria Brothers Limited

- Bhutoria Investments (P) Limited

- Bhutoria Properties

- Bhutoria Transformers & Rectifiers (P) Ltd.

- BLB Cables & Conductors (P) Ltd.

- Howrah Warehouse (P) Ltd.

- Kalinga Petrochemicals (P) Ltd.

- Ladnun Agricultural Farms (P) Ltd.

- Rajasthan Transformers & Switchgears (P) Ltd.

BLUE NILE PROJECTS LIMITED

(Subsidiary Company)

1. RTS Power Corporation Limited (Holding Company) held 2,50,000 Shares of U S $ 1 each fully Paid Up out of the total Issued and Fully paid up Share Capital of the Subsidiary Company consisting of 2,50,000 Shares of U S $ 1 each, amounting to U.S. $ 2,50,000.

2. The Subsidiary Company incurred a Loss of Rs. 4,16,067/- (US $ 6,941) for the year ended March 31,2014 and no part of this Loss has been dealt with in the Holding Company''s Standalone Accounts, but dealt with in the Consolidated Accounts.

Since the Accounting Year of the Subsidiary Company coincides with that of the Holding Company furnishing of information relating to material changes of Subsidiary Company, does not arise.


Mar 31, 2013

1 Previous years figures have been re-grouped / re-arranged wherever considered necessary to conform to current year presentation.

2 Remittance in foreign currencies for dividends

The Company has not remitted any amount in foreign currencies on account of dividends during the year and does not have information as to which remittances, if any, in foreign currencies on account of dividends have been made by / on behalf of Non Resident Shareholders. The particulars of dividends payable to Non Residents Shareholders which were declared during the year, are as under:

3 RELATED PARTY DISCLOSURES

Related party relationship in terms of AS-18 - Related Party Disclosures have been certified by the management and relied upon by the Auditors. There are no related parties where control exists in terms of AS-18.

i) Key Management Personnel

- Mr. Rajendra Bhutoria

- Mr. Abhay Bhutoria

ii) Relatives of Key Management Personnel

- Mr. Sharad Bhutoria

iii) Enterprises where Key Management Personnel have significant influence

- Abhay Transformers Pvt Ltd

- Bhutoria Brothers Limited

- Bhutoria Investments (P) Limited

- Bhutoria Properties

- Bhutoria Agrotech Limited

- Rajasthan Transformers & Switchgears (P) Ltd.

- BLB Cables & Conductors (P) Ltd.

- Howrah Warehouse (P) Ltd.

- Kalinga Petrochemicals (P) Ltd.

- Ladnun Agricultural Farms (P) Ltd.

- Bhutoria Transformers & Rectifiers (P) Ltd.

- ABAY Energy Private Limited Company


Mar 31, 2010

1. The amount due to suppliers covered under the Micro & Small Enterprises Development Act, 2006 given in Schedule 11 - Current Liabilities & Provisions is based on details regarding the status of the suppliers obtained by the company. This has been relied upon by the Auditors.

2. Related party disclosures (where transactions have taken place)

(i) Key Management Personnel :

Shri Rajendra Bhutoria Shri Abhay Bhutoria

(ii) Relatives of Key Management Personnel:

Shri Sharad Bhutoria

(iii) Enterprises where key management personnel have significant influence :

Bhutoria Brothers Ltd.

Kalinga Petrochemicals Pvt. Ltd.

BLB Cables & Conductors Pvt Ltd.

Bhutoria Investments Pvt. Ltd.

Rajasthan Transformers & Switchgears (P) Ltd.

Ladnun Agricultural Farms Pvt. Ltd.

Abhay Transformers Pvt. Ltd.

Bhutoria Transformers & Rectifiers Pvt. Ltd.

Bhutoria Properties

Howrah Warehouse Pvt. Ltd.

Bhutoria Aarotech Ltd.

Related party relationship in terms of AS-18-"Related Party Disclosures" have been identified by the management and relied upon by the Auditors. There are no related parties where control exists in terms of AS-18.

3. The Company has only one reportable segment i.e Manufacturing of goods / equipment for transmission & distribution within the power sector.

4. Contingent liabilities not provided for in respect of:

A. Bank Guarantee Outstanding Rs. 1979.06 Lacs

(Rs. 1939.99l.acs)

B. Unexpired Letter of Credit Rs. 42.75 Lacs

(Rs. 35.10 Lacs)

5. Estimated amount of contracts remaining to be executed on capital account not provided for Rs.15.10 Lacs (Net of Advance) (31.03.09 Rs. 58.90 Lacs).

6. Previous years figures have been regrouped/rearranged wherever considered necessary.

7. Quantitative Information in respect of capacities Goods Manufactured, Sold, Consumption of Raw Materials & Stock of Finished Goods :

8. Foreign Currency Forward Contracts :

The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations in some cases. The Company does not use forward contracts for speculative purposes.

9. Interest received from others includes a sum of Rs. 32,07,173/- received from debtors on award of arbitration.

 
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