Mar 31, 2015
1. Corporate information:
Southern Online Bio Technologies Limited was originally incorporated as
Southern Online Services Private Limited vide certificate of
Incorporation no.01-30463 dated November 9, 1998 with Registrar of
Companies, Hyderabad and subsequently converted into a Public Limited
Company on January 4, 2000. The name of the Company has been Changed to
Southern Online Bio Technologies Limited on 31s1 March 2004 to reflect
the new line of business in which the Company has ventured i.e.
manufacture of Biodiesel. Currently the Company's shares are listed at
Bombay Stock Exchange Limited.
The Company is one of the first private sector ISPs to commence
operations in the state of Andhra Pradesh. However, considering the
opportunities In the field of manufacture and supply of alternative
fuels to petroleum- based fuels, the promoters have decided to
diversify into production and supply of biodiesel. The Company has
established 40,000 liters per day capacity Biodiesel production unit
from non-edible vegetables oils, fatty acids, animal fats, etc for
partial substitution or using as a blend in fossil diesel. This project
is located at Samsthan Narayanpur (v), Nalgonda Dlst, Telangana. The
Second Bio diesel unit with a capacity of 250 TPD Is located at APIIC,
SEZ, vlsakhapatnam, Andhra Pradesh.
2. Share Capital:
The Equity Share Capital of the company as on 31st March, 2015 is
5,89,93,288 Equity Shares of Rs. 10/- each fully paid up.
During the year:
During the year 2014-15 the Company has allotted 77,15,414 Equity
Shares of Rs 10/- each and the same is included in the share capital as
on 31st March 2015.
3. Investments
During the year 2004-05 the Company has invested the 3,43,097 Equity
shares of Rs 10/- each fully paid up to the shareholders of Southern
Biofe Fuels Private Limited as 99.97% subsidiary company and same is
approved by Board of Directors.
No other investments were made by the Company.
4. Segment Reporting
The activities of the Company can be broadly classified into Internet
Service Provider (ISP), Manufacturing of Bio Diesel, Used Cooking Oil
trading and Corrtractand construction of Bio diesel plant for IROAF at
Tondiarpet Chennai.
The ISP Division provides Internet Bandwidth to the Corporate Clients,
Educational Institutions, Cyber Cafes & Individual etc.,
The Bio Diesel division manufactures the Bio diesel.
Income and direct expenses relation to segments are categorized based
on items that are individually identifiable to that segment, while the
reminder of cost is apportioned on appropriate basis. Certain expenses
which are not specifically allocable to individual segments as the
relevant services are used interchangeably. The company therefore
believes that it is not practical to provide segment disclosures
relating to such expenses. Accordingly, they are separately disclosed
as unallowable and directly charged against total income.
In other segment shown in the table given below includes:-
a) The income and expenditure relating to 30 TPD capacity Bio diesel
unit at Tondiarpet, Chennai.
b) The income and expenditure relating to Cross country trading of Used
Cooking Oil.
The assets of the company are used interchangeably between segments,
and the management believes that it is not practical to provide segment
disclosure relating to total assets and liabilities.
5. Details of Quantitative Information:
The Company is engaged in the Internet Service Provider (ISP) services
and Biodiesel Unit construction for Indian Railways (IROAF). The ISP
services and IROAF Construction are not capable of being expressed in
any generic unit and hence it is not possible to give the quantitative
details In respect of Bio Diesel Division and UCO Merchant trading the
quantitative information is as follows:
6. Confirmations were obtained from debtors / creditors as to the
balances receivable / payable to them as at year ended 31st March 2015.
7. BANK GUARANTEES
The Company has outstanding guarantees and counter guarantees of Rs
1,78,98,799/- as on 31.03.2015 (previous year ended 31.03.2014 is Rs
1,89,98,799/-) to bank, in respect of the guarantees given by the Bank
in favour of the President of India, Government of India, acting
through the Telegraph Authority, and Ministry of Railways., Indian
Railways Organization for Alternative Fuels (IROAF).
8. LETTER OF CREDITS
The company has outstanding Letter of Credit to the extent of Rs.
65,77,22,406/- as on 31.03.2015. (Previous year Rs 46,41,21,151/-as on
31.03.2014).
9. RIGHT OF RECOMPENSE (ROR)
a) ROR to CDR lender for the relief fi and sacrifice extended is
subject to the provisions of CDR guidelines and MRA.
b) As per CDR package the ROR amount forthe year 2014-15 is Rs 12.16
Cr.
10. The Visakhapatnam unit of the Company was effected by the natural
calamity i.e. cyclone Hudhud on 12th October 2014. Due to the cyclone,
the unit has incurred the loss of Rs 1914.29 Lakhs. The damages are
properly covered with the insurance and the petition for the claim of
such losses has been already filed to the insurance company. The claim
of the company is under process with the National Insurance Company
Limited as on balance sheet date.
11. Previous year figures have been regrouped wherever necessary.
12. The figures have been rounded off to the nearest rupee.
Mar 31, 2014
1.Corporate information:
Southern Online Bio Technologies Limited was originally incorporated as
Southern Online Services Private Limited vide certificate of
incorporation no.01-30463 dated 9th November 1998 with Registrar of
Companies, Hyderabad and subsequently converted into a Public Limited
Company on 4th January 2000. The name of the Company has been Changed
to Southern Online Bio Technologies Limited on 31st March 2004 to
reflect the new line of business in which the Company has ventured i.e
manufacture of Biodiesel. Currently the Company''s shares are listed at
Bombay Stock Exchange Limited.
The Company is one of the first private sector ISPs to commence
operations in the state of Andhra Pradesh. However, considering the
opportunities in the field of manufacture and supply of alternative
fuels to petroleum- based fuels, the promoters have decided to
diversify into production and supply of biodiesel. The Company has
established 40,000 liters per day capacity Biodiesel production unit
from non-edible vegetable oils, fatty acids, animal fats, etc for
partial substitution or using as a blend in fossil diesel. This project
is located at Samsthan Narayanpur (v), Nalgonda Dist, Telangana. The
Second Biodiesel unit with a capacity of 250 TPD is located at APIIC,
SEZ, Visakhapatnam, Andhra Pradesh.
2. Share Capital:
- The Equity Share Capital of the company as on 31st March, 2014 is
5,12,77,874 Equity Shares of Rs. 10/- each fully paid up.
During the year:
- During the year 2013-14, an amount of Rs. 7,71,54,140/- ( 77,15,414
Equity shares of Rs 10/- each fully paid up) was received towards Share
application money pending for allotment.
3. Contingent Liabilities :
1. Bank Guarantees:
The Company has outstanding guarantees and counter guarantees of
Rs.1,89,98,799/- as on 31.03.2014 (previous year ended 31.3.2013 is
Rs.1,78,98,799/-) to bank, in respect of the guarantees given by the
bank in favour of The President of India, Government of India, acting
through the Telegraph Authority, and Ministry of Railways , Indian
Railways Organization for Alternative Fuels (IROAF).
2. Letters of Credits
The Company has outstanding Letter of Credit to the extent of Rs
46,41,21,151/- as on 31.03.2014
3. Right to Recompense (ROR)
a) ROR to CDR lenders for the relief and sacrifice extended is subject
to the provisions of CDR guidelines and MRA
b) As per CDR package the ROR amount for the year 2013-14 is Rs 6.97cr.
4. Secured Loans
a) The Company''s ISP Division has Over Draft facility to the tune of Rs
35 Lakhs with Bank of India which is secured against book debts of the
company.
b) The Company''s Biodiesel Division has Working Capital facility to the
tune of Rs 4546 Lakhs which is secured against Stocks and book debts of
the company.
c) The working of your company was adversely affected due to
insufficient working capital which resulted in to low capacity
utilisation. To get the required working capital and to overcome the
adverse effects of low capacity utilisation. Your Company made a
reference to the CDR cell through Bank of India for restructuring of
the debts of the Company and to have the required working capital
limits for the company through CDR mechanism envisaged under RBI
guidelines dated August 23, 2001 and subsequent amendments thereto. The
CDR Empowered Group (CDR-EG) approved a restructuring scheme in terms
of which the existing facilities were restructured in October 2013 and
also approved the demerger of Internet Service provider and Biodiesel
businesses. The Company had executed the Master Restructuring Agreement
in February 2014 (the MRA) with CDR Lender in furtherance of CDR
scheme, besides various other related documents as envisaged under the
CDR scheme. The cut off date is 1st April 2013. The CDR proposal
includes a two year moratorium on principal and term debt interest
payments and approximately 3% reduction in interest rates. In terms of
CDR scheme, the promoters (on their own or together with friends,
relatives and associates) are required to bring in equity to the extent
of Rs 6.23 Cr into the Company within the stipulated time, which has
been infused successfully before March 2014.
During the financial year the following credit facilities have been
sanctioned/ Restructured by consortium banks under CDR EG (Bank of
India, State Bank of Hyderabad, UCO Bank and Punjab National Bank)
which is secured by way of charge on the fixed assets of the Company
and personal guarantees of the Directors.
1) Term Loan - III Restructured to Rs 39.44 Cr
2) Term Loan - IV Restructured to Rs 24.52 Cr
3) FITL - I Restructured to Rs 10.59 Cr
4) WCTL - I Restructured to Rs 22.00 Cr.
5) Additional Sanction of FITL - II Rs 24.54 Cr.
6) Additional Sanction of WCTL - II Rs 22.45 Cr.
7) WCFB enhanced from Rs 12.55 Cr (after WCTL-II Carved) to Rs 45.46
Cr.
8) WCNFB enhanced from Rs 36.75 Cr to Rs 80.83 Cr.
Term Loan I and II have been fully paid.
5. Investments
During the year 2004-05 the Company has invested 3,43,097 Equity shares
of Rs 10/- each fully paid upto the shareholders of Southern Biofe
Biofuels Private Limited as 99.97% subsidiary company and same is
approved in Board of Directors. No other investments were made by the
Company.
6. Segment Reporting
The activities of the Company can be broadly classified into Internet
Service Provider (ISP), Manufacturing of Biodiesel, Used Cooking Oil
trading and Contract and Biodiesel Plant Construction for IROAF at
Tondiarpet, Chennai.
Income and direct expenses relation to segments are categorized based
on items that are individually identifiable to that segment, while the
remainder of cost is apportioned on appropriate basis. Certain expenses
which are not specifically allocable to individual segments as the
relevant services are used interchangeably. The company therefore
believes that it is not practical to provide segment disclosures
relating to such expenses. Accordingly, they are separately disclosed
as unallowable and directly charged against total income.
In other segment shown in the table given below includes:-
a) The income and expenditure relating to 30 TPD capacity biodiesel
unit at Tondiarpet, Chennai.
b) The income and expenditure relating to Cross country trading of Used
Cooking Oil.
The assets of the company are used interchangeably between segments,
and the management believes that it is not practical to provide segment
disclosure relating to total assets and liabilities.
7. Deferred Tax Asset/ Liability:
The current charge for income tax is calculated in accordance with the
relevant tax regulations applicable to the company. Deferred tax asset
and liability is recognized for future consequences attributable to the
timing differences that result between the profit offered for income
tax and the profit as per the Financial Statements. Deferred Tax asset
and liability are measured as per the tax rates/laws that have been
enacted or substantively enacted by the balance sheet date.
During the current year, the company recognized the deferred tax asset
for an amount of Rs 983.29 lakhs on business loss of the current
financial year 2013-14. Such DTA is recognized only to the extent that
there is virtual certainty supported by convincing evidence that
sufficient future taxable income will be available against which such
DTA can be realized.
The certainty for earning future taxable income is evidence with that
the company is going to utilize the full capacity of plant for
generation of Biodiesel situated at Vizag.
8. Directors'' Remuneration
The Managerial remuneration paid or provided in accordance with
Schedule XIII of the Companies Act, 1956 to the Directors is as
follows:
The above figures exclude the gratuity and leave encashment payable
which cannot be separately identified from the composite amount advised
by the Actuary.
9. Details of Quantitative Information:
The activities of the Company can be broadly classified into Internet
Service Provider (ISP), Manufacturing of Biodiesel, Used Cooking Oil
trading and Contract and Biodiesel Plant Construction for IROAF at
Tondiarpet, Chennai. The ISP services and IROAF Construction are not
capable of being expressed in any generic unit and hence it is not
possible to give the quantitative details required under paragraph 3
and 4C of part II of the schedule VI of the Companies Act, 1956. In
respect of Biodiesel Division and UCO Merchant Trading the quantitative
information is as follows:
10. DETAILS OF RELATED PARTY TRANSACTION
The company has entered into the following related party transactions
as on 31st March, 2014 such parties and transactions are identified as
per Accounting Standard 18
(a) The following are the list of related parties:
11. PRIOR PERIOD ITEMS: NIL
12. Confirmations were obtained from debtors/ creditors as to the
balances receivable/ payable to them as at year ended 31st March, 2014.
13. Earning per share:
The earning considered in ascertaining the companies earning per share
comprise net profit after tax. The number of shares used in computing
basic earning per share is the weighted average number of shares
outstanding during the year.
Mar 31, 2013
1. Share Capital:
- The Equity Share Capital of the company as on 31st March, 2013
is 3,46,13,815 Equity Shares of Rs. 10/- each fully paid up.
During the year:
- During the year 2012-13, an amount of Rs. 9,84,40,593/- was
received towards Share application money pending for allotment.
2. Contingent Liabilities :
(i) Bank Guarantees:
The Company has outstanding guarantees and counter guarantees of
Rs.1,67,98,799 /- as on 31.03.2013 ( previous year ended 31.3.2012 is
Rs. 1,67,98,799/- ) to bank, in respect of the guarantees given by the
bank in favour of The President of India, Government of India, acting
through the Telegraph Authority, Ministry of Railways , Indian Railways
Organization for Alternative Fuels ( IROAF ).
(ii) Letter of Credit
The Company has outstanding Letter of Credit to the extent of Rs
32,48,92,159/-
3. Secured Loans
a) The Company''s ISP division has a Over Draft facility to the
tune of Rs 35 Lakhs with Bank of India. which is secured against book
debts of ISP Division of the company.
b) The Company''s Bio Diesel has a Working Capital facility to
the tune of Rs 3500 Lakhs which is secured against stock and Debtors of
the Company.
c) During the financial year the following credit facilities have been
sanctioned by consortium banks (Bank of India, State Bank of Hyderabad,
UCO Bank and Punjab National Bank )which is secured by way of charge on
the fixed assets of the Company and personal guarantees of the
Directors.
(i) Rs 36.00 crores non fund based Letter of Credit limit.
(ii) Working Capital enhancement from Rs 22.85 Cr to Rs 35.00 Cr.
4. Bio Diesel plant at Visakhapatnam
Bio diesel at Visakhapatnam is shut down due to major modification and
up gradation of the technology till January 2013. Hence Interest and
depreciation has not been charged to profit and loss account during the
period of shut down. Interest on term loans of the plant has been
capitalized during that shut down.
5. Investments
During the year 2004-05 the Company has invested in 3,43,097 Equity
Shares of Rs.10/- each fully paid in Southern Biofe Biofuels Private
Limited a 99.97% Subsidiary Company.
No other investments were made by the company.
6. Segment Reporting
The activities/segments of the Company can be broadly classified into
Internet Service Provider (ISP), Manufacturing of Bio Diesel and others
(Used Cooking Oil Trading and IROAF Contract)
The ISP division provides Internet Bandwidth to the Corporate Clients,
Educational Institutions, Cyber Cafes, & Individual etc..,
The Bio Diesel division manufactures the Bio Diesel.
Income and direct expenses relation to segments are categorized based
on items that are individually identifiable to that segment, while the
remainder of cost is apportioned on appropriate basis. Certain expenses
which are not specifically allocable to individual segments as the
relevant services are used interchangeably. The company therefore
believes that it is not practical to provide segment disclosures
relating to such expenses. Accordingly, they are separately disclosed
as unallowable and directly charged against total income.
In other segment shown in the table given below includes:- d) The
income and expenditure relating to 30 TPD capacity bio diesel unit at
Tondiarpet, Chennai.
e) The income and expenditure relating to Cross country trading of Used
Cooking Oil.
The assets of the company are used interchangeably between segments,
and the management believes that it is not practical to provide segment
disclosure relating to total assets and liabilities.
7. Deferred Tax Asset/ Liability:
The current charge for income tax is calculated in accordance with the
relevant tax regulations applicable to the company. Deferred tax asset
and liability is recognized for future consequences attributable to the
timing differences that result between the profit offered for income
tax and the profit as per the Financial Statements. Deferred Tax asset
and liability are measured as per the tax rates/laws that have been
enacted or substantively enacted by the balance sheet date.
8. Details of Quantitative Information:
The Company is engaged in the Internet Service Provider (ISP) services.
The ISP services are not capable of being expressed in any generic unit
and hence it is not possible to give the quantitative details required
under paragraph 3 and 4C of part II of the schedule VI of the Companies
Act, 1956. In respect of Bio Diesel Division the quantitative
information is as follows:
9 PRIOR PERIOD ITEMS: NIL
10. Confirmations were obtained from debtors/ creditors as to the
balances receivable / payable to them as at year ended 31st March,
2013.
11. Earning per share:
The earning considered in ascertaining the companies earning per share
comprise net profit after tax. The number of shares used in computing
basic earning per share is the weighted average number of shares
outstanding during the year.
12. Previous year figures have been regrouped wherever necessary.
Mar 31, 2012
1. Share Capital:
- The Equity Share Capital of the company as on 31st March, 2012 is
3,46,13,815 Equity Shares of Rs. 10/- each fully paid up.
During the year:
- During the year 2011-12, an amount of Rs. 6,25,00,000/- was received
towards Share application money pending for allotment.
2. Contingent Liabilities :
1. Bank Guarantees:
The Company has outstanding guarantees and counter guarantees of
Rs.1,67,98,799/- as on 31.03.2012 (previous year ended 31.3.2011 is Rs.
28,98,799/-) to bank, in respect of the guarantees given by the bank in
favour of The President of India, Government of India, acting through
the Telegraph Authority, Andhra Pradesh State Road Transport
Corporation (APS RTC) and Ministry of Railways, Indian Railways
Organization for Alternative Fuels (IROAF).
3. Secured Loans
a) The Company has a Over Draft facility for ISP Division of
Rs.0.35Lakhs with Bank of India. This is secured against book debts of
the company.
b) The Company has a Working Capital facility for Bio Diesel Division Ã
Nalgonda unit of Rs. 481 Lakhs with Bank of India, consortium (Bank of
India, State Bank of Hyderabad, UCO Bank and Punjab National Bank)
which is secured against Stock of the company.
c) During the financial year the company got additional sanction of
Rs.24.52 Cr Additional Term Loan, Rs.10.71Cr Funded Interest Term Loan
( FITL) and Previous sanctioned working capital for Bio Diesel Division
Rs. 44.65 Cr converted as Working Capital Rs.22.65 Cr and balance
Rs.22.00 Cr as Working Capital Term Loan (WCTL) for the Bio Diesel unit
from Bank of India consortium (Bank of India, State Bank of Hyderabad,
UCO Bank and Punjab National Bank) which is secured by way of charge on
the fixed assets of the Company and personal guarantees of the
Directors.
4. Investments
During the year 2004-05 the Company has invested the 3,43,097 Equity
Shares of Rs.10/- each fully paid up to the shareholders of Southern
Biofe Biofuels Private Limited as 100% subsidiary company and same is
approved in Board of Directors.
No other investments were made by the company.
5. Segment Reporting
The activities of the Company can be broadly classified into two
segments, viz., Internet Service Provider (ISP) , Manufacturing of Bio
Diesel, Used Cooking Oil trading and Contract.
The ISP division provides Internet Bandwidth to the Corporate Clients,
Educational Institutions, Cyber Cafes, & Individual etc.., The Bio
Diesel division manufactures the Bio Diesel.
Income and direct expenses relation to segments are categorized based
on items that are individually identifiable to that segment, while the
remainder of cost is apportioned on appropriate basis. Certain expenses
which are not specifically allocable to individual segments as the
relevant services are used interchangeably. The company therefore
believes that it is not practical to provide segment disclosures
relating to such expenses. Accordingly, they are separately disclosed
as unallowable and directly charged against total income.
In other segment shown in the table given below includes:- a) The
income and expenditure relating to 30 TPD capacity bio diesel unit at
Tondiarpet, Chennai.
b) The income and expenditure relating to Cross country trading of Used
Cooking Oil.
The assets of the company are used interchangeably between segments,
and the management believes that it is not practical to provide segment
disclosure relating to total assets and liabilities.
6. Deferred Tax Asset/ Liability:
The current charge for income tax is calculated in accordance with the
relevant tax regulations applicable to the company. Deferred tax asset
and liability is recognized for future consequences attributable to the
timing differences that result between the profit offered for income
tax and the profit as per the Financial Statements. Deferred Tax asset
and liability are measured as per the tax rates/laws that have been
enacted or substantively enacted by the balance sheet date.
7. PRIOR PERIOD ITEMS: NIL
8. Confirmations were obtained from debtors/ creditors as to the
balances receivable/ payable to them as at year ended 31st March, 2012.
9. Gratuity and Leave encashment etc.
(a) Gratuity Provision: During the year the Company has provided for
Gratuity on Actuarial Valuation basis to comply with AS 15 (Revised
2005).
(b) The Amount of gratuity paid during the year is Rs. NIL.( Previous
year Rs.6,67,819/-)
10. Depreciation is not accounted on additions during the year
Rs.36,69,666/- due to the assets are not put to use.
11. In respect of subsidiary company there is no transactions carried
out during the year under audit.
12. Previous year figures have been regrouped wherever necessary.
Mar 31, 2011
1.1 Share Capital:
(a) The Equity Share Capital of the company as on 31st March, 2011 is
3,46,13,815 Equity
Shares of Rs. 10/- each fully paid up. During the year;
- During the year 2010-11, Thirteen Lakh (13,00,000) warrants were
converted into equity- shares on 5 th April 2010.
- Out of 13,00,000 convertible warrants, amount for 3,00,000 warrants
was received on 31st March 2010 but the shares were allotted on 5th
April 2010.
- During the year 2010-11, the company has received a share premium of
Rs. 14.31 per share for 10,00,000 shares amounting to Rs.
1,43,10,000/-.
2.2 Contingent Liabilities : 1. Bank Guarantees:
The Company has outstanding guarantees and counter guarantees of
Rs.28,98,799/- as on3lJ03^0ll {previous year ended 31.3.2010 is Rs.
42,05,794/-) to bank, in respect of the guarantees given by the bank in
favour of The President of India, Government of India, acting through
the Telegraph Authority , Andhra Pradesh State Road Transport
Corporation (APS RTC) and Ministry of Railways.
2.3 Secured Loans
a) The Company has a Over Draft facility for ISP Division of
Rs.0.35Lakhs with Bank of India. This is secured against book debts of
the company.
b) The Company has a Working Capital facility for Bio Diesel Division -
Nalgonda unit of Rs.481 Lakhs with Bank of India consortium (Bank of
India, State Bank of Hyderabad, UCO Bank and Punjab national Bank)
which is secured against Stock of the company.
c) The Company has a working capital facility for Bio-diesel
division-Visakhapatnam unit of Rs 3894 lakhs with Bank of India
consortium (Bank of India, State Bank of I lyderabad, UCO Bank and
Punjab National Bank) which is secured against Stock of the company.
2.4 Investments
During the year 3004-05 the Company has invested Rs. 3,430,970/- in
Southern Biofe- Biofuels Limited to acquire its business by issuing
3,43,097 Equity shares of Rs. 10/- each fully paid upto the share
holders of Southern Biofe-Biofules Private Limited on swap basis.
Subsequently the company has become a 10(1% subsidiary to Southern
Online Biotechnologies Ltd, and the same is approved by the Board of
Directors and shareholders of the Company
2.5 Segment Reporting
The activities of the Company can be broadly classified into two
segments, viz., Internet Service Provider (ISP) and Manufacturing of
Bio Diesel.
The ISP division provides Internet Bandwidth to the Corporate Clients,
Educational Institutions, Cyber Cafes, & Individual etc.,
The Bio Diesel division manufactures the Bio Diesel.
Income and direct expenses relation to segments are categorized based
on items that are individually identifiable to that segment, while the
remainder of cost is apportioned on appropriate basis. Certain expenses
which are not specifically allocable to individual segments as the
relevant services are used interchangeably. The company therefore
believes that it is not practical to provide segment disclosures
relating to such expenses. Accordingly they are separately disclosed
as unallowable and directly charged against total income.
The assets of the company ate used interchangeably between segments,
and the management believes that it is not practical to provide segment
disclosure relating to total assets and liabilities.
2.6 Deferred Tax Asset/ Liability:
The current charge for income tax is calculated in accordance with the
relevant tax regulations applicable to the company. Deferred tax asset
and liability is recognized for future consequences attrihutable to the
timing differences that result between the profit offered for income
tax and the profit as per the Financial Statements, Deferred Tax asset
and liability are measured as per the tax rates/laws that have been
enacted or substantively enacted by the balance sheet date.
2.7 Foreign Exchange Earnings - NIL -
2.13 PRIOR PERIOD ITEMS: NIL
2.14 Confirmations were obtained from debtors/ creditors as to the
balances receivable/ payable to them as at year ended 31st March, 2011.
2.16 Gratuity and Leave encashment etc.
1. Gratuity Provision: During the year the Company has provided for
Gratuity on Actuarial Valuation basis to comply with AS 15 (Revised
2005), 1. The Amount of gratuity paid during the year is Rs.
6,67,819/-
2.17 Previous year figures have been regrouped wherever necessary.
Mar 31, 2010
1.1 Share Capital:
a) The Equity Share Capital of the company as on 31st March, 2010 is
3,33,13,815 Equity Shares of Rs. 10/- each fully paid up.
During the year:
- On 21.05.2009, 13.08.2009 and 30.03.2010 Out of First preferential
issue, Share warrants of number 15,84,500 and out of second
preferential issue, share warrants of number 26,50,000 and out of third
preferential issue 66,00,000 were forfeited, due to lapse of 18 months
from the date of Issue.
- Monies relating to forfeiture of Share warrants amounting to
Rs.1,08,34,500 were transferred to Capital Reserve.
- Out of preferential Issue, made on 30.09.2008,2,00,000 Share warrants
were fully converted in to Equity Shares on 05.03.2010 and 2,00,000
Share warrants are fully converted in to Equity Shares on 10.03.2010.
- Out of the preferential issues made 06.10.2008 , 2,00,000 Shares
warrants were fully converted into Equity Shares on 15.02.2010.
- Funds against share warrants of number 3,00,000 are received, pending
allotment
- Balance of Share warrants, which are pending for conversion, are
10,00,000.
(The same should be converted into Equity Shares on or before 18 months
from the date of allotment, else the entire amount will be forfeited.)
1.2 Contingent Liabilities :
1. Bank Guarantees:
The Company has outstanding guarantees and counter guarantees of Rs.
42,05,794/- as on 31.03.2010 (previous year ended 31.3.2009 is Rs.
46,97,528/- ) to bank, in respect of the guarantees given by the bank
in favour of The President of India, Government of India, acting
through the Telegraph Authority , Andhra Pradesh State Road Transport
Corporation ( APS RTC) and Ministry of Railways .
1.3 Secured Loans
a) The Company has a Over Draft facility for ISP Division of
Rs.0.35Lakhs with Bank of India. This is secured against book debts of
the company.
b) The Company has a Working Capital facility for Bio Diesel Division -
Nalgonda Division of Rs. 481 Lakhs with Bank of India, which is secured
against Stock of the company.
c) During the financial year the company got additional sanction Rs.
1255 Lakhs working capital for the Bio Diesel unit -2 at Visakhapatnam
under API1C - SEZ, from Bank of India and State Bank of Hyderabad
through consortium agreement which is secured by way of charge on the
fixed assets of the Company and personal guarantees of the Directors..
1.4 Investments
During the year 2004-05 the Company has invested the 3,43,097 Equity
Shares of Rs.10/ - each fully paid up to the shareholders of Southern
Bio fuels Private Limited as 100% subsidiary company and same is
approved in Board of Directors.
No other investments were made by the company.
1.5 Segment Reporting
The activities of the Company can be broadly classified into two
segments, viz., Internet Service Provider (ISP) and Manufacturing of
Bio Diesel.
The ISP division provides Internet Bandwidth to the Corporate Clients,
Educational Institutions, Cyber Cafes, & Individual etc.,
The Bio Diesel division manufactures the Bio Diesel.
Income and direct expenses relation to segments are categorized based
on items that are individually identifiable to that segment, while the
remainder of cost is apportioned on appropriate basis. Certain expenses
which are not specifically allocable to individual segments as the
relevant services are used interchangeably. The company therefore
believes that it is not practical to provide segment disclosures
relating to such expenses. Accordingly, they are separately disclosed
as unallowable and directly charged against total income.
The assets of the company are used interchangeably between segments,
and the management believes that it is not practical to provide segment
disclosure relating to total assets and liabilities.
1.6 Deferred Tax Asset/ Liability:
The current charge for income tax iscalculated in accordance with the
relevant tax regulations applicable to the company. Deferred tax asset
and liability is recognized for future consequences attributable to the
timing differences that result between the profit offered for income
tax and the profit as per the Financial Statements. Deferred Tax asset
and liability are measured as per the tax rates/laws that have been
enacted or substantively enacted by the balance sheet date.
1.7 Foreign Exchange Earnings
1.8 Directors Remuneration
The above figures exclude the gratuity and leave encashment payable
which can not be separately identified from the composite amount
advised by the Actuary.
1.9 Details of Quantitative Information:
1.10 DETAILS OF RELATED PARTY TRANSACTION
The company has entered into the following related party transactions
as on 31 st March,2(T10 such parties and transactions are identified as
per Accounting Standard 18
a] The following are that list of related parties:
Name of the Party Relationship
Southern Biofe Biofuels Pvt. Ltd 100 % Subsidiary
Mr. N. Satish Kumar Managing Director
Mr. K. Radha Krishna Director - Finance
Mr. B. Sreedhara Reddy Director - Admin
Mr. B. H. R. Balaji Executive Director
Mr. K. Tejesh Kumar Director
Mr. K. Venkateshwara Rao Promoter
1.11 PRIOR PERIOD ITEMS: NIL
1.12 Confirmations were obtained from debtors/ creditors as to the
balances receivable/ payable to them as at year ended 31st March, 2010.
1.13 Earning per share:
1.14 Gratuity and Leave encashment etc.
a) Gratuity Provision: During the year the Company has provided for
Gratuity on Actuarial Valuation basis to comply with AS 15 (Revised
2005).
b) The Amount of gratuity paid during the year is . 47,560.
1.15 Previous year figures have been regrouped wherever necessary.
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