Home  »  Company  »  Salora Intl.  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Salora International Ltd.

Mar 31, 2015

1 Contingent Liabilities not provided for in respect of :

i) Bank Guarantees issued by Bankers Rs 701.18 lacs (Previous year Rs. 31.33 lacs) including for Sales Tax and Excise demand Rs 1.18 Lcas (Previous Year Rs. 28.33 lacs), against which margin kept by bank Rs. 68.68 lacs ( Previous year Rs. 2.85 lacs)

ii) Letter of Credits pending for shipment Rs.220.98(Previous year Rs. Nil. ).

iii) TV sets, VCD's and Office Automation products still under warranty for which amount is not ascertainable.

iv) Disputed Sales Tax demands of Rs.658.24 lacs (Previous year Rs.570.12 lacs), against which amount deposited Rs.178.15 lacs lacs (Previous year Rs.162.91 lacs) has not been provided for as the cases are pending in appeals with higher authorities.

v) Advance Licence utilised for Import of CPT worth Rs.87.50 lacs during the period from January, 1995 to May 1995, DGFT issued Show Cause Notice to pay duty and penalty thereof on all above imports and included the company's name in the defaulters list. Company challenged the said Notice in Delhi High Court and after admitting the petition and taking into consideration all the facts, the Delhi High Court directed the Company to deposit a sum of Rs. 20.00 lacs with the Collector of Customs and ordered DGFT to remove Company's name from the defaulters list. Accordingly Company has deposited the sum of R 20.00 lacs within the time stipulated by the Court. Duty and penalty amount is not ascertainable at this stage.. Petition has been refiled against appeal order by DGFT.

vi) The demand amounting to Rs.1113.77 lacs (previous year Rs.1113.77 lacs) and penalty Rs.1113.77 lacs (previous year Rs.1113.77 lacs) for the period April 2002 to April 2003 and demand of Rs. 28.99 lacs (previous year Rs. 28.99 lacs) and penalty of Rs.28.99 lacs (previous year Rs.28.99 lacs) for the period July 1993 to February 1994 are on the basis of differential duty on Chassis, Sub assembly parts of T.V.considered as T.V. The Honorable Supreme Court has decided on the classification issue for the period 1989-90 and the facts of these cases are different from the case decided by the Supremen Court. The company had gone in appeal before CESTAT. The appeal before CESTAT were remanded back to the Commissioner Adjudication to decide afresh while considering the differential facts of the case. The Commissioner has decided the cases against the company without considering the differential facts as per directions given by CESTAT in remand order. The company has again filed appeal against Commissioner's order before the CESTAT.

The demand for Rs.1292.45 lacs (previous year Rs.1292.45 lacs) and penalty Rs.1292.45 lacs (previous year Nil) for the period June 1998 to March 2002 raised on the same basis by the department is time barred and case had been decided in favour of the company. The department had gone in appeal before CESTAT. The CESTAT had remanded this matter to Commissioner Adjudication who has decided the case against the company without considering direction / differential facts of the CESTAT. The company has again filed appeal on the matter before CEStaT. Therefore considering directions / differential facts given by CESTAT in remand order not considered in Commissioner's orders, the company has good case on merits. Demand deposited amounting to Rs.300.00 lacs (previous year Rs.300.00 lacs).Miscellaneous Excise duty demand amounting to Rs. 98.67 lacs(previous year Rs.69.15lacs) and Service Tax demand Rs.1.97 lacs (previous year Rs.1.97 lacs) has been raised by the department against which company has filed appeals. The amount deposited against demand Rs.9.66 lacs ( previous year Rs.21.79 lacs).

vii) Income Tax Assessments of the Company have been completed upto Assessment Year 2012-2013 (in previous year upto 2010-11). Demand has been raised of Rs.57.57 lacs(previous year Rs.57.57 lacs) for earlier assessment years against which company has filed appeal before appleate authorities and amount Rs.53.00 lacs(previous year Rs.53.00 lacs) has been deposited against demands. Appeal of Income Tax department against the ITAT order for the Assessment Year 1997-98 is lying pending before Hon'ble Delhi High Court against refund of Rs.1151.57 lacs received by the Company in the Financial Year 2002-2003.

2 Sundry Debtors, considered good includes :

i) Rs.1552.33 lacs (previous year Rs.1925.72 lacs) due more than six months and Rs.24.67 lacs due less than six months (previous year Rs.42.16 lacs) from parties on whom legal action initiated for recovery.

ii) Rs.2830.46 Lacs (previous year Rs.2053.45 lacs) due more than six months are under follow-up,negotiation,reconciliation,settlement and realisation.

3 RELATED PARTIES DISCLOSURES :

1. Relationship :

(a) Subsidiary :

Salora Capital Limited (till February 2014) Salora Components Ltd

(b) Associates & Joint Ventures :

Salora Retail Ventures Ltd. (till 30.03.2014)

(c) Other related parties in which key managerial Personnel are able to exercise significant influence :

Associated Electronics Research Foundation Encompass Software & Systems Pvt.Ltd. (Till 30.3.2015) Essjay Ericsson Pvt. Ltd.

Manori Properties P Ltd

Devi Electronics P Ltd

Terminal Power Pvt Ltd. (Till 30.03.2015)

(d) Key Managerial Personnel:

Shri Gopal Sitaram Jiwarajka Shri Tarun Jiwarajka

(e) Relative of key managerial personnel where transactions have taken place:

Smt. Neetu Jiwarajka Shri Ayush Jiwarajka

Note: Related party relationship is as identified by the Company and relied upon by the Auditors.

C. OTHER DISCLOSURES :

i) Segments have been identified in line with the Accounting Standard on Segment Reporting (AS-17) taking into account the organisation structure as well as the differential risks and return of these segments.

ii) The Company has disclosed Business Segment as the primary segment.

iii) Type of products and services in each business segment :

a) Infocom Division

Mobile Phones, IT Products and Accessories thereof and other items.

b) Consumer Electronics Division

Fly Back Transformer(EHT), Loudspeaker,Deflection Yoke and TV sets, etc. and sub-assemblies thereof

c) Wind Energy Wind Energy Generation

iv) The Segment Revenues, Results, Assets and Liabilities include the respective amounts identifiable to each of the segment and allocated on a reasonable basis.

4 The useful life of Fixed Assets has been revised in accordance with the schedule II of the Companies Act 2013. The depreciation for the year is lower by Rs.3.66 lacs due to change in useful life of Fixed Assets.The Assets whose useful life is already exhausted as on 01.04.2014, yearly depeciation and deferred tax credit amounting to Rs.126.13 lacs and Rs.40.92 lacs has been adjusted to General Reserve.

5 Income Tax / Minimum Alternative Tax has not been provided for in view of brought forward unabsorbed business losses and unabsorbed depreciation.

6 Previous year figures have been re-grouped and/or re-arranged wherever necessary.


Mar 31, 2014

1 Contingent Liabilities not provided for in respect of :

i) Bank Guarantees issued by Bankers Rs. 31.33 lacs (Previous year Rs. 129.71 lacs) including for Sales Tax and Excise demand Rs. 28.33 lacs (Previous Year Rs. 24.71 lacs), against which margin kept by bank Rs. 2.85 lacs ( Previous year Rs. 4.47 lacs).

ii) Letter of Credits pending for shipment Rs. Nil (Previous year Rs. Nil).

iii) TV sets, VCD''s and office Automation products still under warranty for which amount is not ascertainable.

iv) Disputed Sales Tax demands of Rs. 570.12 lacs (Previous year Rs. 636.64 lacs), against which amount deposited Rs. 162.91 lacs (Previous year Rs.244.47lacs) has not been provided for as the cases are pending in appeals with higher authorities.

v) Advance Licence utilised for Import of CPT worth Rs. 87.50 lacs during the period from January,1995 to May 1995, DGFT issued Show Cause Notice to pay duty and penalty thereof on all above imports and included the company''s name in the defaulters list. Company challenged the said Notice in Delhi High Court and after admitting the petition and taking into consideration all the facts, the Delhi High Court directed the Company to deposit a sum of Rs. 20.00 lacs with the Collector of Customs and ordered DGFT to remove Company''s name from the defaulters list. Accordingly Company has deposited the sum of Rs. 20.00 lacs within the time stipulated by the Court. Duty and penalty amount is not ascertainable at this stage. Petition has been refled against appeal order by DGFT

vi) The demand amounting to Rs. 1113.77 lacs (previous yearRs. 1113.77 lacs) and penaltyRs. 1113.77 lacs (previous yearRs. 1113.77 lacs) for the period April 2002 to April 2003 and demand of Rs. 28.99 lacs (previous year Rs. 28.99 lacs) and penalty of Rs. 28.99 lacs (previous year Rs. 28.99 lacs) for the period July 1993 to February 1994 are on the basis of differential duty on Chassis, Sub assembly parts of TV. considered as TV The Honorable Supreme Court has decided on the classifcation issue for the period 1989-90 and the facts of these cases are different from the case decided by the Supreme Court. The company had gone in appeal order before CESTAT. The appeal before CESTAT were remanded back to the Commissioner Adjudication to decide afresh while considering the differential facts of the case. The Commissioner has decided the cases against the company without considering the differential facts as per directions given by CESTAT in remand order. The company has again fled appeal against Commissioner''s before the CESTAT.

The demand for Rs. 1292.45 lacs (previous year Rs. 1292.45 lacs) lacs and penalty Rs. 1292.45 lacs (previous year Nil) for the period 1998 to 2002 raised on the same basis by the department is time barred and case had been decided in favour of the company. The department had gone in appeal before CESTAT. The CESTAT had remanded this matter to Commissioner Adjudication who has decided the case against the company without considering direction / differential facts of the CESTAT. The company has again fled appeal on the matter before CESTAT. Therefore considering directions / differential facts given by CESTAT in remand order not considered in Commissioner''s orders, the company has good case on merits. Demand deposited amounting to Rs. 300.00 lacs (previous year Rs. 300.00 lacs). Miscellaneous Excise duty demand amounting to Rs. 67.37 lacs( previous year Rs. 67.37 lacs) and Service Tax demand Rs. 3.74 lacs (previous year Rs. 3.74 lacs) has been raised by the department against which company has fled appeals. The amount deposited against demand Rs. 21.79 lacs ( previous year Rs. 21.79 lacs).

vii) Income Tax Assessments of the Company have been completed upto Assessment Year 2010-2011 (in previous year upto 2009-10). Demand has been raised of Rs. 57.57 lacs (previous year Rs. 108.20 lacs) for earlier assessment years against which company has fled appeal before appleate authorities and amount Rs. 53.00 lacs (previous year Rs. 103.63 lacs) has been deposited against demands. Appeal of Income Tax department against the ITAT order for the Assessment Year 1997-98 is lying pending before Hon''ble Delhi High Court against refund of Rs. 1151.57 lacs received by the Company in the Financial Year 2002-2003.

2 Sundry Debtors, considered good includes :

i) Rs. 1925.72 lacs (previous year Rs. 2461.11 lacs) due more than six months andRs. 42.16 lacs due less than six months (previous year Rs. 2.17 lacs) from parties on whom legal action initiated for recovery.

ii) Rs. 1068.04 Lacs (previous yearRs. 752.90 lacs) due more than six months are under follow-up,negotiation,reconciliation,settlement and realisation. Out of which Rs. Nil (previous year Rs. 162.21 lacs ) has been considered doubtful and provided for.

iii) Rs. 985.41 lacs (previous yearRs. 884.25 lacs) due more than six months andRs. 102.26 lacs (Previous yearRs. 205.81 lacs) less than six months from Salora Retail Venture Limited, a company under the same management in previous year but not at the end of this year.

3 Income Tax / Minimum Alternative Tax has not been provided for in view of brought forward unabsorbed business losses and unabsorbed depreciation.

4 In Previous Year, Deferred Tax assets for earlier years has arised due to loss carried forward of Wind Mills consolidated which was in earlier years separately.

5 Any of the assets other than fixed assets and non current investments have the value on realisation in the ordinary course of business equal to the amount at which they are stated, subject to amounts not realised on full and final settlement / disposal.

6 Previous year fgures have been re-grouped and/or re-arranged wherever necessary.


Mar 31, 2013

1 Contingent Liabilities not provided for in respect of :

i) Bank Guarantees issued by Bankers R 129.71 lacs (Previous year R 291.82 lacs) including for Sales Tax and Excise demand R 24.71 lacs (Previous Year R 73.61 lacs), against which margin kept by bank R 4.47 lacs (Previous year R 20.76 lacs).

ii) Letter of Credits pending for shipment R Nil lacs (Previous year R 32.09 lacs.).

iii) Claim by employee of R 5.79 lacs against the company against which amount paid R 2.13 lacs is pending in High Court.

iv) TV sets, VCD''s and Offce Automation products still under warranty for which amount is not ascertainable.

v) Disputed Sales Tax demands of R 636.64 lacs (Previous year R 668.18 lacs), against which amount deposited R 244.47 lacs (Previous year R 400.09 lacs) has not been provided for as the cases are pending in appeals with higher authorities.

vi) Advance Licence utilised for Import of CPT worth R 87.50 lacs during the period from January, 1995 to May 1995, DGFT issued Show Cause Notice to pay duty and penalty thereof on all above imports and included the company''s name in the defaulters list. Company challenged the said Notice in Delhi High Court and after admitting the petition and taking into consideration all the facts, the Delhi High Court directed the Company to deposit a sum of R 20.00 lacs with the Collector of Customs and ordered DGFT to remove Company''s name from the defaulters list. Accordingly Company has deposited the sum of R 20.00 lacs within the time stipulated by the Court. Duty and penalty amount is not ascertainable at this stage. Pitition has been refled against appeal order by DGFT.

vii) Demand raised by Excise Authorities amounting to R 3649.10 lacs (Previous year R 3700.60 lacs),against which amount deposited R 321.79.lacs (Previous year R 321.79 lacs) has not been provided for as the matters are pending in appeals with higher authorities The demand amounting to R 1142.77 lacs and penalty R 1142.77 lacs for the period April 2002 to April 2003 and demand of R 28.99 lacs and penalty of R 28.99 lacs for the period July 1993 to February 1994 are on the basis of differential duty on Chassis, Sub assembly parts of T.V. considered as T.V. The Honorable Supreme Court has decided on the classifcation issue for the period 1989-90 and the facts of these cases are different from the case decided by the Supremen Court. Appeals are pending before CESTAT. The demand for R 1292.45 lacs for the period 1998 to 2002 raised on the same basis by the department is time barred for which case decided in favour of the company.The department has gone in appeal before CESTAT.

viii) Income Tax Assessments of the Company have been completed upto Assessment Year 2009-2010 (in previous year upto 2008- 09). Demand has been raised of R 108.20 lacs (previous year R 129.38 lacs) for earlier assessment years against which company has fled appeal before Appleate Authorities and amount R 103.63 lacs (previous year R 120.50 lacs) has been deposited against demands. Appeal of Income Tax department against the ITAT order for the Assessment Year 1997-98 is lying pending before Hon''ble Delhi High Court against which refund of R 1151.57 lacs received by the Company in the Financial Year 2002-2003.

2 Sundry Debtors, considered good includes :

i) R 2461.11 lacs (previous year R 1732.42 lacs)due more than six months and R 2.17 lacs due less than six months (previous year R 285.63 lacs) from parties on whom legal action initiated for recovery.

ii) R 794.96 Lacs (previous year R 1232.26 lacs) due more than six months are under follow-up,negotiation,reconciliation, settlement and realisation. Out of which R 162.21 lacs (previous year R 147.87 lacs) has been considered doubtful and provided for.

iii) R 884.25 lacs (previous year R 792.64 lacs) due more than six months and R 205.81 lacs (Previous year R 278.10 lacs) less than six months from Salora Retail Venture Limited, a company under the same management.

3 RELATED PARTIES DISCLOSURES : 1. Relationship : (a) Subsidiary :

Salora Capital Limited Salora Components Ltd

(b) Associates & Joint Ventures :

Salora Retail Ventures Ltd. H.K.Shinsei Ltd (Till Oct 2012)

(c) Other related parties in which key managerial personnel are able to exercise signifcant infuence :

Associated Electronics Research Foundation

Encompass Software & Systems Pvt. Ltd.

Essjay Ericsson Pvt. Ltd.

Manori Properties P. Ltd.

Dukan Resources Pvt. Ltd.

Devi Electronics P. Ltd.

Terminal Power Pvt. Ltd.

(d) Key Managerial Personnel:

Shri Gopal Sitaram Jiwarajka Shri Tarun Jiwarajka

(e) Relative of key managerial personnel where transactions have taken place:

Smt. Neetu Jiwarajka Shri Ayush Jiwarajka

Note: Related party relationship is as identifed by the Company and relied upon by the Auditors.

4 Income Tax / Minimum Alternative Tax has not been provided for in view of brought forward unabsorbed business losses and unabsorbed depreciation.

5 Deferred Tax assets for earlier years has arised due to loss carried forward of Wind Mills consolidated which was in earlier years separately.

6 Any of the assets other than fxed assets and non current investments have the value on realisation in the ordinary course of business equal to the amount at which they are stated, subject to amounts not realised on full and fnal settlement / disposal.

7 Previous year fgures have been re-grouped and/or re-arranged wherever necessary.


Mar 31, 2012

Additional Information:

a Details of security for secured loans

i) Vehicle Loans referred to in '1 (a)' are secured against hypothecation of cars.

ii) Interest free Loan from PICUP under sales tax deferred scheme is secured by first charge on all movable fixed assets (present & future) of Noida units and first pari-passu charge with bank(s) on immovable properties of Noida units.

b Terms of repayment of term loans and others.

i) Vehicle Loans from Banks and Others on monthly installment basis.

ii) Interest Free Loan From PICUP (Under Sales Tax Deferred Scheme) on annual installment basis.

iii) Unsecured Loans from related parties repayable on demand.

c There is no continuing default as on the balance sheet date in respect of loans and interest.

Additional Information:

1. Working Capital Loans are secured by hypothecation of inventories & receivables (other than of Wind Mills) and first pari-passu charge with PICUP on immovable properties of Noida units as collateral security.

2. Buyers Credit loan from bank are secured against FDRS.

Additional Information:

*The Company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act 2006,hence disclosure relating to amounts unpaid as at the year end together with interest paid/payable under this Act have not been given.

Additional Information:

i) Foreign currency loan were secured against first exclusive charge over immovable and movable fixed assets relating to the project situated at Dhule in the state of Maharastra.

ii) Vehicle Loans are secured against hypothecation of cars.

iii) Interest free Loan from PICUP under sales tax deferred scheme is secured by first charge on all movable fixed assets (present & future) of Noida units and first pari-passu charge with bank(s) on immovable properties of Noida units.

1 Contingent Liabilities not provided for in respect of :

i) Bank Guarantees issued by Bankers R 291.82 lacs (Previous year R 541.43 lacs) including for Sales Tax and Excise demand R 73.61 lacs (Previous Year R 97.37 lacs), against which margin kept by bank R 129.37 lacs (Previous year R 69.36 lacs).

ii) Letter of Credits pending for shipment R 32.09 lacs(Previous year R 84.58 lacs.).

iii) Claim by employee of R 5.79 lacs against the company against which amount deposited R 2.13 lacs is pending in High Court.

iv) TV sets, VCD's and Office Automation products still under warranty for which amount is not ascertainable.

v) Disputed Sales Tax demands of R 668.18 lacs (Previous year R 722.89 lacs), against which amount deposited R 400.09 lacs (Previous year R 401.81 lacs) has not been provided for as the cases are pending in appeals with higher authorities.

vi) Advance License utilised for Import of CPT worth R 87.50 lacs during the period from January, 1995 to May 1995, DGFT issued Show Cause Notice to pay duty and penalty thereof on all above imports and included the company's name in the defaulters list. Company challenged the said Notice in Delhi High Court and after admitting the petition and taking into consideration all the facts, the Delhi High Court directed the Company to deposit a sum of R 20.00 lacs with the Collector of Customs and ordered DGFT to remove Company's name from the defaulters list. Accordingly Company has deposited the sum of R 20.00 lacs within the time stipulated by the Court. Duty and penalty amount is not ascertainable at this stage. Petition has been rifled against appeal order by DGFT.

vii) Demand raised/Cenvat credit disputed, by Excise Authorities amounting to R 3700.60 lacs (Previous year R 3712.78 lacs),against which amount deposited R 321.79 lacs (Previous year R 321.79 lacs) has not been provided for as the matters are pending in appeals with higher authorities. Appellate Authority has passed an order to Pre-deposit sum of R 300 Lacs, which has been deposited Further, Company has been advised that the demand raised by Excise Authorities is purely on Technical point and on the similar point they have raised demand on most of the TV Manufactures and hence representation is being made through manufacturer association before the Government, and the Company has fled a petition on the issue before Supreme Court, and Company expects to get relief in Appeal.

viii) Income Tax Assessments of the Company have been completed upto Assessment Year 2009-2010 (in previous year upto 2008-09). Demand has been raised of R 129.38 lacs (previous year R 215.48 lacs) for earlier assessment years against which company has fled appeal before appellate authorities and amount R 120.50 lacs(previous year R 210.79 lacs) has been deposited against demands. Appeal of Income Tax department against the ITAT order for the Assessment Year 1997-98 is lying pending before Hon'ble Delhi High Court against which refund of R 1151.57 lacs received by the Company in the Financial Year 2002-2003.

2 Sundry Debtors, considered good includes :

i) R 1732.42 lacs (previous year R 1659.43 lacs) due more than six months and R 285.63 lacs due less than six months (previous year R 70.61 lacs) from parties on whom legal action initiated for recovery.

ii) R 1232.26 Lacs (previous year R 1129.51 lacs) due more than six months are under follow-up, negotiation, reconciliation, settlement and realisation. Out of which R 147.87 lacs (previous year R 115.60 lacs) has been considered doubtful and provided for.

iii) R 792.64 lacs (previous year R 930.05 lacs) due more than six months and R 278.10 lacs (Previous year R 142.15 lacs) less than six months from Salora Retail Ventures Limited, a company under the same management.

3 RELATED PARTIES DISCLOSURES :

1. Relationship :

(a) Subsidiary :

Salora Capital Limited

Salora Components Ltd.

(b) Associates & Joint Ventures :

Salora Retail Ventures Ltd.

H.K.Shinsei Ltd.

(c) Other related parties in which key managerial personnel are able to exercise significant influence Associated Electronics Research Foundation

Essjay Ericsson Pvt. Ltd.

Manori Properties Pvt. Ltd.

Dukaan Resources Pvt. Ltd.

Devi Electronics Pvt. Ltd.

Terminal Power Pvt. Ltd.

(d) Key Managerial Personnel:

Shri Gopal Sitaram Jiwarajka

Shri Tarun Jiwarajka

(e) Relative of key managerial personnel where transactions have taken place:

Shri S.R.Jiwarajka Smt. Neetu Jiwarajka Shri Ayush Jiwarajka

B. GEOGRAPHICAL SEGMENTS

The domestic sales is 54.97% (Previous year 66.35%) and the export sales is 45.03 % (Previous year 33.65%) of the total turnover of the Company, there are no separate reportable Geographical Segments.

C. OTHER DISCLOSURES :

i) Segments have been identified in line with the Accounting Standard on Segment Reporting (AS-17) taking into account the organisation structure as well as the differential risks and return of these segments.

ii) The Company has disclosed Business Segment as the primary segment.

iii) Type of products and services in each business segment :

iv) The Segment Revenues, Results, Assets and Liabilities include the respective amounts identifiable to each of the segment and allocated on a reasonable basis.

44 Any of the assets other than fixed assets and non current investments have the value on realisation in the ordinary course of business equal to the amount at which they are stated, subject to amounts not realised on full and final settlement / disposal.

4 Previous year figures have been re-grouped and/or re-arranged wherever necessary.


Mar 31, 2011

1. Contingent Liabilities not provided for in respect of :

i) Bank Guarantees issued by Bankers Rs. 541.43 lacs (Previous year Rs. 980.68 lacs) including for Sales Tax and Excise demand Rs. 97.37 lcas (Previous Year Rs. 84.28 lacs), against which margin kept by bank Rs. 69.36 lacs (Previous year Rs. 102.12 lacs).

ii) Letter of Credits pending for shipment Rs. 84.58 lacs (Previous year Rs. 299.15 lacs.).

iii) Claim by employee of Rs. 5.79 lacs against the company against which amount deposited Rs. 2.13 lacs is pending in High Court.

iv) TV sets, VCD's and Office Automation products still under warranty for which amount is not ascertainable.

v) Disputed Sales Tax demands of Rs. 722.89 lacs (Previous year Rs. 744.15 lacs), against which amount deposited Rs. 401.81 lacs (Previous year Rs. 389.21 lacs) has not been provided for as the cases are pending in appeals with higher authorities.

vi) Advance Licence utilised for Import of CPT worth Rs. 87.50 lacs during the period from January, 1995 to May 1995 , DGFT issued Show Cause Notice to pay duty and penalty thereof on all above imports and included the company's name in the defaulters list. Company challenged the said Notice in Delhi High Court and after admitting the petition and taking into consideration all the facts, the Delhi High Court directed the Company to deposit a sum of Rs. 20.00 lacs with the Collector of Customs and ordered DGFT to remove Company's name from the defaulters list. Accordingly Company has deposited the sum of Rs. 20.00 lacs within the time stipulated by the Court. Duty and penalty amount is not ascertainable at this stage.

2. Demand raised/Cenvat credit disputed, by Excise Authorities amounting to Rs. 3712.78 lacs (Previous year Rs. 2328.71 lacs),against which amount deposited Rs. 321.79 lacs (Previous year Rs. 321.79 lacs) has not been provided for as the matters are pending in appeals with higher authorities. Appelate Authority has passed an order to Pre deposit sum of Rs. 300 Lacs, which has been deposited Further, Company has been advised that the demand raised by Excise Authorities is purely on technical point and on the similar point they have raised demand on most of the TV Manufactures and hence representaion is being made through manufacturer association before the Government, and the Company has filed a petition on the issue before Supreme Court, and Company expects to get relief in Appeal.

3. Income Tax Assessments of the Company have been completed upto Assessment Year 2008-2009(in previous year upto 2007-08). Demand has been raised of Rs. 215.48.lacs (previous year Rs. 185.23 lacs) for earlier assessment years against which company has filed appeal before appleate authorities and amount Rs. 210.79 lacs (previous year Rs. 180.55 lacs) has been deposited against demands.

Appeal of Income Tax department against the ITAT order for the Assessment Year 1997-98 is lying pending before Hon'ble Delhi High Court against which refund of Rs. 1151.57 lacs received by the Company in the Financial Year 2002-2003.

4. Sundry Debtors, considered good includes :

i) Rs. 1659.43 lacs (previous year Rs. 443.22 lacs) due more than six months and Rs. 70.61 lacs due less than six months (previous year Nil.) from parties on whom legal action initiated for recovery.

ii) Rs. 1129.51 Lacs (previous year Rs. 2085.08 lacs) due more than six months are under follow-up, negotiation, reconciliation, settlement and realisation. out of which Rs. 115.60 lacs (previous year Rs. 209.93 lacs ) has been considered doubtful and provided for.

iii) Rs. 930.05 lacs (previous year Rs. 1127.99 lacs) due more than six months and Rs. 142.15 lacs (Previous year Rs. 70.20 lacs) less than six months from Salora Retail Venture Limited, a company under the same management.

iv) Rs. Nil. (Previous year Rs. 78.34 lacs) due more than six months & Rs. Nil. (Previous year Rs. 123.45 lacs) less than six months from Salora Components Limited, a subsidiary company.

v) Rs. Nil.(previous year Rs. 12.27 lacs.) due less than six months from Salora Capital Limited a subsidiary company.

5. RELATED PARTIES DISCLOSURES :

1. Relationship :

(a) Subsidiary : (b) Associates & Joint Ventures :

Salora Capital Limited Salora Retail Ventures Ltd

Salora Components Ltd. H.K. Shinsei Ltd

(c) Other related parties (d) Key Managerial Personnel: in which key managerial personnel or their Shri Gopal Sitaram Jiwarajka relatives have significant influence :

Associated Electrical (e) Relative of key managerial personnel Agencies where transactions have taken place:

Associated Electronic Shri Sitaram Jiwarajka Research Foundation

Artheon Electronics Ltd Smt. Neetu Jiwarajka

Essjay Ericsson Pvt. Ltd. Shri Tarun Jiwarajka

Manori Properties P Ltd. Shri Ayush Jiwarajka

Artheon Energy P Ltd.

Panasonic Carbon India Co Ltd.

Devi Electronics P Ltd.

Terminal Power Pvt. Ltd.

Skandsoft Technologies P. Ltd.

Artheon Emerging Technology P. Ltd.

Sharada Inventions P. Ltd.

Ultimedia Technologies Pvt. Ltd.

Nova Telesec Pvt. Ltd.

Artheon Finance Ltd.

Note: Related party relationship is as identified by the Company and relied upon by the Auditors.

6. SEGMENT REPORTING:

A. GEOGRAPHICAL SEGMENTS:

The domestic sales is 66.35% (Previous year 92.47% ) and the export sales is 33.65 % (Previous year 7.53%) of the total turnover of the Company, there are no separate reportable Geographical Segments.

B. OTHER DISCLOSURES:

i) Segments have been identified in line with the Accounting Standard on Segment Reporting (AS-17) taking into account the organisation structure as well as the differential risks and return of these segments.

ii) The Company has disclosed Business Segment as the primary segment.

iii) Type of products and services in each business segment :

Business Segment Type of Products

a) Infocom Division Mobile Phones, IT Products and Accessories thereof and other items

b) Consumer Electronics Division Fly Back Transformer (EHT), Loudspeaker, Deflection Yoke and CTV sets, etc. and sub-assemblies thereof

c) Wind Energy Wind Energy Generation

iv) The Segment Revenues, Results, Assets and Liabilities include the respective amounts identifiable to each of the segment and allocated on a reasonable basis.

7. Previous year figures have been re-grouped and/or re-arranged wherever necessary.

8. Schedules 'A' to 'U' forming part of the Balance Sheet as on 31st March, 2011 and the Profit & Loss Account for the year ended on that date.


Mar 31, 2010

1. Contingent Liabilities not provided for in respect of:

i) Bank Guarantees issued by Bankers Rs.980.68 lacs (Previous year Rs. 1057.87 lacs) including for Sales Tax and Excise demand Rs.84.28 lacs (Previous Year Rs.499.76 lacs), against which margin kept by bank Rs.100.12 lacs (Previous Yr.Rs.86.32 lacs).

ii) Letter of Credits pending for shipment Rs.299.15 lacs(Previous year Nil.).

iii) TV sets, VCDs and Office Automation products still under warranty for which amount is not ascertainable.

iv) Disputed Sales Tax demands of Rs.744.15 lacs (Previous year Rs.591.44 lacs), against which amount deposited Rs.389.21 lacs (Previous year Rs.249.35 lacs) has not been provided for as the cases are pending in appeals with higher authorities.

v) Advance Licence utilised for Import of CPT worth Rs.87.50 lacs during the period from January, 1995 to May 1995 , DGFT issued Show Cause Notice to pay duty and penalty thereof on all above imports and included the companys name in the defaulters list. Company challenged the said Notice in Honble Delhi High Court and after admitting the petition and taking into consideration all the facts, the Honble Delhi High Court directed the Company to deposit a sum of Rs. 20.00 lacs with the Collector of Customs and ordered DGFT to remove Companys name from the defaulters list. Accordingly Company has deposited the sum of Rs.20.00 lacs within the time stipulated by the Honble Court. Duty and penalty amount is not ascertainable at this stage.

2. Demand raised/Cenvat credit disputed, by Excise Authorities amounting to Rs.2328.71 lacs (Previous year Rs.2296.28 lacs), against which amount deposited Rs.321.79 lacs (Previous year Rs. 331.34 lacs) has not been provided for as the matters are pending in appeals with higher authorities. Appelate Authority has passed an order to Pre deposit sum of Rs.300 lacs, which has been deposited. Further, Company has been advised that the demand raised by Excise Authorities is purely on Technical point and on the similar point they have raised demand on most of the TV Manufactures and hence representation is being made through manufacturer association before the Government, and the Company has filed a petition on the issue before Honble Supreme Court, and Company expects to get relief in Appeal.

3. Income Tax Assessments of the Company have been completed upto Assessment Year 2007-2008 (in previous year upto 2006- 07). Demand has been raised of Rs.185.23 lacs (previous year Rs.216.95 lacs) for earlier assessment years against which company has filed appeal before appleate authorities and amount Rs. 180.55 lacs (previous year Rs. 146.70 lacs) has been deposited against demands.

Appeal of Income Tax department against the ITAT order for the Assessment Year 1997-98 is lying pending before Honble Delhi High Court against which refund of Rs.1151.57 lacs received by the Company in the Financial Year 2002-2003.

4. Sundry Debtors, considered good includes :

i) Rs.443.22 lacs due more than six months from parties on whom legal action initiated for recovery.

ii) Rs.2085.08 lacs due more than six months and Rs. 184.73 lacs are under follow-up,negotiation,reconciliation,settlement and realisation out of which Rs.209.93 lacs has been considered doubtful and provided for.

iii) Rs.1107.33 lacs (previous year Rs.Nil) due more than six months and Rs.70.20 lacs (Previous year Rs.1227.50 lacs) less than six months from Salora Retail Venture Limited, a company under the same management.

iv) Rs.78.34 lacs (Previous year Rs.17.64 lacs) due more than six months & Rs.123.45 lacs (Previous year Rs.60.94 lacs) less than six months from Salora Components Limited.a subsidiary company.

v) Rs.12.27 lacs (previous year Rs.Nil) due less than six months from Salora Capital Limited a subsidiary company.

5. Loans Given includes :

i) Rs.NIL (Previous year Nil.) due from a subsidiary company Salora Components Ltd and maximum amount outstanding at any time during the year is Rs.20.00 lacs.( Previous year Rs. 265.50 lacs)

ii) Rs. NIL (Previous year Nil.) due from Salora Retail Ventures Ltd, a company under the same management and maximum amount outstanding during the year is Rs.Nil. ( Previous year Rs.460 lacs)

6. Advances Recoverable includes :

Rs.20.66 lacs (previous year Rs.5.78 lacs) due from Salora Retail Ventures Ltd and Rs.Nil. (previous year Rs.15.17 lacs) due from H.K.Shinsei Ltd, companies under the same management.

7. In previous year Impairment loss has been recognised amounting to Rs.53.48 lacs due to obsolescence and discard of assets.This has been included in the Depreciation in the Profit & Loss account and reduced from Fixed Assets.

8. Revenue expenditure incurred on Research and Development including overheads and debited to respective head of accounts aggregating to Rs.21.79 lacs (Previous year Rs.20.47 lacs).

9. RELATED PARTIES DISCLOSURES : 1. Relationship:

(a) Subsidiary:

Salora Capital Limited (formerly Jadoonet Ltd.) Salora Components Ltd.

(b) Associates & Joint Ventures :

Salora Retail Ventures Ltd H.K. Shinsei Ltd

(c) Other related parties in which key managerial personnel or their relatives have significant influence:

Associated Electrical Agencies

Associated Electronic Research Foundation

Aerthon Electronics Ltd (formerly Sab Electronics Ltd)

Essjay Ericsson Pvt. Ltd.

Ericsson India P Ltd.

Manori Properties P Ltd.

Feature Home Products P Ltd

Panasonic Carbon India Co Ltd.

Devi Electronics P Ltd.

(d) Key Managerial Personnel:

Shri Gopal Sitaram Jiwarajka

(e) Relative of key managerial personnel where transactions have taken place:

Shri Sitaram Jiwarajka Smt. Neetu Jiwarajka Shri Tarun Jiwarajka

Note: Related party relationship is as identified by the Company and relied upon by the Auditors.

B. GEOGRAPHICAL SEGMENTS:

The sales of the Company are mainly in India and the export turnover being only 7.53 % (Previous year 5.48%) of the total turnover of the Company, there are no separate reportable Geographical Segments.

C. OTHER DISCLOSURES:

i) Segments have been identified in line with the Accounting Standard on Segment Reporting (AS-17) taking into account the organisation structure as well as the differential risks and return of these segments.

ii) The Company has disclosed Business Segment as the primary segment.

iii) Type of products and services in each business segment:

Business Segment Type of Products

a) Infocom Division Mobile Phones, IT Products and Accessories thereof and other items

b) Consumer Electronics Division Fly Back Transformer (FBT), Loudspeaker, Deflection Yoke and

TV sets, VCD & DVD Players and sub-assemblies thereof

c) Wind Energy Wind Energy Generation

iv) The Segment Revenues, Results, Assets and Liabilities include the respective amounts identifiable to each of the segment and allocated on a reasonable basis.

10. Previous year figures have been re-grouped and/or re-arranged wherever necessary.

11. Schedules A to T form part of the Balance Sheet as on 31st March, 2010 and the Profit & Loss Account for the year ended on that date.

 
Subscribe now to get personal finance updates in your inbox!