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Notes to Accounts of Voltas Ltd.

Mar 31, 2014

1. NATURE OF BUSINESS

Voltas Limited, a premier Air-Conditioning and Engineering company was established intheyear1954.lt is aTata Group company in the field of air conditioning, refrigeration, in the business of electro-mechanical projects as an EPC contractor both in domestic and international geographies (Middle East and Singapore), and also in the business of engineering product services for mining, water management and treatment, construction equipments and textile industry.

2. (a) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 2132.26 Lakhs

(31-3-2013: Rs. 2257.46 Lakhs). [Tangible assets : Rs. 1975.16 Lakhs (31-3-2013: Rs. 2230.73 Lakhs) and Intangible assets of Rs. 157.10 Lakhs (31-3-2013: Rs. 26.73 Lakhs)]. Advance paid against such contracts: Rs. 61.95 Lakhs (31-3-2013: Rs. 90.85 Lakhs).

(b) On account of Other Commitments :

(i) Foreign currency exposures (Refer note 30)

(ii) Minimum future lease rental payable (Refer note 31)

3. Contingent liabilities not provided for

(a) Guarantees on behalf of other companies :

Limits Rs. 26989.72 Lakhs (31-3-2013: Rs. 22829.48 Lakhs) against which amount outstanding was Rs. 16589.98 Lakhs (31-3-2013: Rs. 14995.39 Lakhs).

(b) Claims against the Company not acknowledged as debts :

In respect of various matters aggregating Rs. 21470.41 Lakhs (31-3-2013: Rs. 23592.38 Lakhs), net of tax Rs. 14172.62 Lakhs (31-3-2013: Rs. 15937.83 Lakhs) against which a provision has been made for contingencies Rs. 1125 Lakhs (31-3-2013: Rs. 1125 Lakhs). In respect of a contingent liability of Rs. 1889.93 Lakhs (31-3-2013: Rs. 1841.62 Lakhs), the Company has a right to recover from third party.

(d) Income tax demands :

In respect of matters decided in Company''s favour by appellate authorities where the department is in further appeal Rs. 1568.42 Lakhs (31-3-2013: Rs. 1115.73 Lakhs).

In respect of matters decided against the Company and where Company has appealed amounted to Rs. 1564.04 Lakhs ( 31-3-2013: Rs. 2017.97 Lakhs).

(e) Staf demands under adjudication : Amount indeterminate.

(f) Liquidated damages, except to the extent provided, for delay in delivery of goods / execution of projects : Amount indeterminate.

4. In respect of guarantees aggregating Rs. 141156.74 Lakhs (31-3-2013:Rs. 137745.05 Lakhs) issued by Banks at the request of the Company in favour of third parties, the Company has given security by way of hypothecation of a part of tangible movable assets, trade receivables and inventories.

5. Derivative Instruments

The Company has entered into the following derivative instruments:

(a) Forward Exchange Contracts (being derivative instruments), which are not intended for trading or speculative purposes but for hedge purposes to establish the amount of reporting currency required or available at the settlement date of certain payables and receivables.

6. Assets under Operating Leases

(a) The Company has taken on operating lease certain assets. The total lease rent paid on the same amounts to Rs. 4119.33 Lakhs (2012-13: Rs. 4636.82 Lakhs).

(c) The Company has given on operating lease certain assets. The total lease rent received on the same amounts to Rs. 3197.19 Lakhs (2012-13: Rs. 3332.49 Lakhs) and is included under Other Income.

7. Employee benefits expenses

(a) The Company makes contribution towards provident funds, defined benefit retirement plans, and towards superannuation fund.These funds are administered by the trustees appointed by the Company. Under the schemes, the Company is required to contribute a specified percentage of salary to the retirement benefit schemes to fund the benefits.

(b) The Company makes annual contributions to Gratuity Funds, which are funded defined benefit plans for qualifying employees. The schemes provide for lumpsum payment to vested employees at retirement, death while in employment, or on termination of employment as per the Company''s Gratuity Scheme. Vesting occurs upon completion of 5 years of service.

The Company is also providing post retirement medical benefits to qualifying employees.

The most recent actuarial valuations of plan assets and the present values of the defined benefit obligations were carried out as at 31st March, 2014. The present value of the defined benefit obligation and the related current service cost and past service cost, are measured using the projected unit credit method.

The following tables set out the the position of and the amounts recognised in the Company''s financial statements as at 31 st March, 2014 for Defined Benefit / Contribution Plans :

8. Segmental Reporting

Segment information has been presented in the Consolidated Financial Statements as permitted by Accounting Standard (AS-17) on Segment Reporting, notified under the Companies (Accounting Standards) Rules, 2006.

9. Related Party Disclosures

(a) List of Related Parties and Relationships

Party Relation

A. Simto Investment Company Ltd. (upto 31-8-2012) Subsidiary Auto Aircon (India) Ltd .

Voltas Netherlands B.V.

Lalbuksh Voltas Engineering Services &Trading LLC.

Voice Antilles N.V. (upto 14-9-2012)

Weathermaker Ltd.

Saudi Ensas Company for Engineering Services W.L.L.

Rohini Industrial Electricals Ltd.

Universal Comfort Products Ltd.

Voltas Oman L.L.C.

Agro Foods Punjab Ltd. (Under liquidation)

Westerwork Engineers Ltd. (Under liquidation)

B. Brihat Trading Private Ltd. Associate Voltas Material Handling Private Ltd. (w.e.f. 1 -5-2011 and upto 2-11-2012)

C. Universal Voltas L.L.C. JointVenture Naba Diganta Water Management Ltd.

Olayan Voltas Contracting Company Ltd. (w.e.f. 8-2-2012) Universal Weathermaker Factory L.L.C. Voltas Qatar W.L.L. (w.e.f. 2-4-2012) AVCO Marine S.a.S. (Under liquidation) Agrotech Industries Ltd. (Under closure)

D. Tata Sons Ltd. Promoter holding together with its

subsidiary more than 20%

E. Mr. Sanjay Johri - Managing Director Key Management Personnel

10. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.


Mar 31, 2013

1. NATURE OF BUSINESS

Voltas Limited, a premier Air-Conditioning and Engineering company was established in the year 1954. It is a Tata Group company in the field of air conditioning, refrigeration, in the business of electro-mechanical projects as an EPC contractor both in domestic and international geographies (Middle East and Singapore), and also in the business of engineering product services for mining, water management and treatment, construction equipments and textile industry.

2.(a) In the previous year, due to significant upward revision in estimated cost of a major project in Qatar, Sidra Medical and Research Centre, the Company accounted for the estimated costs on the project in accordance with the requirement of Accounting Standard (AS) 7. During the current year, the Main Contractor has instructed a revised schedule of completion, expected to end on 31st March, 2014, including additional time for Testing and Commissioning. The cost to come for the extended duration of the project along with the possible enhancement of revenue from variations have been estimated based on current technical data. In view of continuing uncertainties in the process of approval of variations and the complex nature of the project, additional net cost overruns of Rs. 9555.08 Lakhs have been accounted for, while the Company continues to pursue its entitlements vigorously.

3. (a) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 2257.46 Lakhs (31-3-2012: Rs. 4748.18 Lakhs) [Tangible assets : Rs. 2230.73 Lakhs (31-3-2012: Rs. 4690.28 Lakhs) and Intangible assets of Rs. 26.73 Lakhs (31-3-2012: Rs. 57.90 Lakhs)]. Advance paid against such contracts: Rs. 90.85 Lakhs (31-3-2012: Rs. 666.72 Lakhs).

(b) On account of Other Commitments :

(i) Foreign currency exposures (refer note 30)

(ii) Minimum future lease rental payable (refer note 31)

4. Contingent liabilities not provided for

(a) Guarantees on behalf of other companies :

Limits Rs. 22829.48 Lakhs (31-3-2012 : Rs. 22639.29 Lakhs) against which amount outstanding was Rs. 14995.39 Lakhs (31-3-2012 : Rs. 14621.44 Lakhs).

(b) Claims against the Company not acknowledged as debts :

In respect of various matters aggregating Rs. 23592.38 Lakhs (31-3-2012: Rs. 26898.56 Lakhs), net of tax Rs. 15937.83 Lakhs (31-3-2012: Rs. 18171.32 Lakhs) against which a provision has been made for contingencies Rs. 1125 Lakhs (31-3-2012: Rs. 1125 Lakhs). In respect of a contingent liability of Rs. Nil (31-3-2012: Rs. 5086.36 Lakhs), the Company has a right to recover the same from a third party.

(c) Contractual matters under arbitration : Amount indeterminate.

(d) Income tax demands :

In respect of matters decided in Company''s favour by appellate authorities where the department is in further appeal Rs. 1115.73 Lakhs (31-3-2012: Rs. 1350.36 Lakhs).

In respect of matters decided against the Company and where Company has appealed amounted to Rs. 2017.97 Lakhs (31-3-2012: Rs. 517.51 Lakhs) and in respect of others Rs. Nil (31-3-2012: Rs. 941.03 Lakhs).

(e) Staff demands under adjudication : Amount indeterminate.

(f) Liquidated damages, except to the extent provided, for delay in delivery of goods : Amount indeterminate.

5. In respect of guarantees aggregating Rs. 137745.05 Lakhs (31-3-2012: Rs. 147616.29 Lakhs) issued by Banks at the request of the Company in favour of third parties, the Company has given security by way of hypothecation of a part of tangible movable assets, trade receivables and inventories.

6. Derivative Instruments

The Company has entered into the following derivative instruments :

(a) Forward Exchange Contracts (being derivative instruments), which are not intended for trading or speculative purposes but for hedge purposes to establish the amount of reporting currency required or available at the settlement date of certain payables and receivables.

The following are the outstanding Forward Exchange Contracts entered into by the Company :

7. Assets under Operating Leases

(a) The Company has taken on operating lease certain assets. The total lease rent paid on the same amounts to Rs. 4636.82 Lakhs (2011-12: Rs. 5226.26 Lakhs).

(i) The minimum future lease rentals payable in respect of non-cancellable leases are as under:

(b) The Company has given on operating lease certain assets. The total lease rent received on the same amounts to Rs. 3332.49 Lakhs (2011-12: Rs. 3595.29 Lakhs) is included under Other Income.

(i) The minimum future lease rentals receivable in respect of non-cancellable leases are as under:

(ii) The Original Cost, Depreciation for the year and Written Down Value are Rs. 2940.22 Lakhs, Rs. 24.82 Lakhs and Rs. 2425.07 Lakhs (2011-12: Rs. 1415.66 Lakhs, Rs. 27.76 Lakhs and Rs. 938.69 Lakhs), respectively.

8. 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 the extent 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 paid to non-resident shareholders which were declared during the year, are as under :

9. Employee benefits expenses

(a) The Company makes contribution towards provident funds, defined benefit retirement plans, and towards superannuation fund. These funds are administered by the trustees appointed by the Company. Under the schemes, the Company is required to contribute a specified percentage of salary to the retirement benefit schemes to fund the benefits.

(b) The Company makes annual contributions to Gratuity Funds, which are funded defined benefit plans for qualifying employees. The schemes provide for lumpsum payment to vested employees at retirement, death while in employment, or on termination of employment as per the Company''s Gratuity Scheme. Vesting occurs upon completion of 5 years of service.

The Company is also providing post retirement medical benefits to qualifying employees.

The most recent actuarial valuations of plan assets and the present values of the defined benefit obligations were carried out as at 31st March, 2013. The present value of the defined benefit obligation and the related current service cost and past service cost, are measured using the projected unit credit method.

The following tables set out the funded status and the amounts recognised in the Company''s financial statements as at 31st March, 2013 for the Defined Benefit Plans :

10. Segmental Reporting

Segment information has been presented in the Consolidated Financial Statements as permitted by Accounting Standards (AS-17) on Segment Reporting as notified under the Companies (Accounting Standards) Rules, 2006.

11. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current yearss classification/disclosure.


Mar 31, 2012

1. (a) Equity Shares: The Company has one class of equity shares having a par value of Rs. 1 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding and are subject to preferential rights of the Preference shares (if issued).

2. Investments (contd.)

Footnotes :

2 (a) Under a loan agreement for Rs. 60 Lakhs (fully drawn and outstanding) entered into between Agro Foods Punjab Ltd. (AFPL) and the Punjab State Industrial Development Corporation Ltd. (PSIDC), the Company has given an undertaking to PSIDC that it will not dispose off its shares in AFPL till the monies under the said loan agreement between PSIDC and AFPL remain due and payable by AFPL to PSIDC. During 1998-99, the Company had transferred its beneficial rights in the shares of AFPL.

2 (b) In respect of the Company's investment in 2,640 equity shares of Reliance Industries Ltd., there is an Injunction Order passed by the Court in Kanpur restraining the transfer of these shares. The share certificates are, however, in the possession of the Company. Pending disposal of the case, dividend on these shares has not been recognised.

abortive engineering/rework. An extensive Techno Commercial review was carried out to assess the costs incurred/ to be incurred till completion of the project, and as per the requirements of Accounting Standard (AS) 7, the Company has accounted for the estimated costs on this project. However, uncertainties exist on variations to be claimed and costs to come till the completion of the project due to the complex nature of the 'design and build' project, changes in the designs still being made by the Client and delay in the completion of an evolving world-class hospital facility.

3. (a) Estimated amount of contracts remaining to be executed on capital account and not provided for: Rs. 4748.18 Lakhs.

(31-3-2011: Rs. 3511.10 Lakhs). Advance paid against such contracts: Rs. 666.72 Lakhs (31-3-2011: Rs. 233.99 Lakhs).

(b) On account of Other Commitments : (i) Foreign currency exposures (refer note 30)

(ii) Minimum future lease rental payable (refer note 31)

4. Contingent liabilities not provided for

(a) Guarantees on behalf of other companies :

Limits Rs. 22639.29 Lakhs (31-3-2011: Rs. 22024.65 Lakhs) against which amount outstanding was Rs. 14621.44 Lakhs (31-3-2011 : Rs. 10435.87 Lakhs).

(b) Claims against the Company not acknowledged as debts :

In respect of various matters aggregating Rs. 26898.56 Lakhs (31-3-2011 : Rs. 25691.90 Lakhs), net of tax Rs. 18171.32 Lakhs (31-3-2011 : Rs. 17157.05 Lakhs) against which a provision has been made for contingencies Rs. 1125 Lakhs (31-3-2011 : Rs. 1125 Lakhs). In respect of a contingent liability of Rs. 5086.36 Lakhs (31-3-2011 : Rs. 4928.10 Lakhs), the Company has a right to recover the same from a third party.

2010-11

Rs. in Lakhs Rs. in Lakhs

Taxes, Cess and Duties (other than income tax) 18396.58 17260.62

Contractual matters in the course of business 4347.31 4615.31

Real Estate Disputes and Demands 3519.76 3519.76

Ex-employees matters 248.63 248.63

Others 386.28 47.58

26898.56 25691.90

(c) Contractual matters under arbitration : Amount indeterminate.

(d) Income tax demands :

In respect of matters decided in Company's favour by appellate authorities where the department is in further appeal Rs. 1350.36 Lakhs (31-3-2011 : Rs. 1055.04 Lakhs).

In respect of matters decided against the Company and where Company has appealed amounted to Rs. 517.51 Lakhs (31-3-2011 : Rs. Nil) and in respect of others Rs. 941.03 Lakhs (31-3-2011 : Rs. Nil).

(e) Staff demands under adjudication : Amount indeterminate.

(f) Liquidated damages, except to the extent provided, for delay in delivery of goods : Amount indeterminate.

5. In respect of guarantees aggregating Rs. 147616.29 Lakhs (31-3-2011 : Rs.140683.39 Lakhs) issued by Banks at the request of the Company in favour of third parties, the Company has given security by way of hypothecation of a part of tangible movable assets, book debts and stocks.

6. Derivative Instruments

The Company has entered into the following derivative instruments :

(a) Forward Exchange Contracts (being derivative instruments), which are not intended for trading or speculative purposes but for hedge purposes to establish the amount of reporting currency required or available at the settlement date of certain payables and receivables.

7. 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 the extent 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 paid to non-resident shareholders which were declared during the year, are as under :

8. Employee benefits expenses

(a) The Company makes contribution towards provident funds, defined benefit retirement plans, and towards superannuation fund. These funds are administered by the trustees appointed by the Company. Under the schemes, the Company is required to contribute a specified percentage of salary to the retirement benefit schemes to fund the benefits.

(b) The Company makes annual contributions to Gratuity Funds, which are funded defined benefit plans for qualifying employees. The schemes provide for lumpsum payment to vested employees at retirement, death while in employment, or on termination of employment as per the Company's Gratuity Scheme. Vesting occurs upon completion of 5 years of service.

The Company is also providing post retirement medical benefits to qualifying employees.

The most recent actuarial valuations of plan assets and the present values of the defined benefit obligations were carried out as at 31st March, 2012. The present value of the defined benefit obligation and the related current service cost and past service cost, are measured using the projected unit credit method.

The following tables set out the funded status and the amounts recognised in the Company's financial statements as at 31st March, 2012 for the Defined Benefit Plans :

9. Segmental Reporting

Segment information has been presented in the Consolidated Financial Statements as permitted by Accounting Standards (AS-17) on Segment Reporting as notified under the Companies (Accounting Standards) Rules, 2006.


Mar 31, 2011

1. SHARE CAPITAL

Equity Share Capital includes :

(a) 9,76,61,300 shares of Rs 1 each allotted as fully paid bonus shares by capitalising Rs 80.82 Lakhs out of the Securities Premium Account, Rs 100 Lakhs from Capital Reserve and Rs 795.79 Lakhs out of General Reserve.

(b) 1,77,29,040 shares of Rs 1 each allotted to the erstwhile shareholders of Tata-Merlin & Gerin Ltd. (TMG), The National Electrical Industries Ltd. (NEI), Volrho Ltd., Wandleside National Conductors Ltd. (WNC) and Hyderabad Allwyn Ltd. (HAL) consequent upon the amalgamation of these companies with the Company.

(c) 11,97,84,000 shares of Rs 1 each allotted to the holders of Convertible Part RsA' of Rs 60 of the 14% Secured Redeemable Partly Convertible Debentures 1992-99 on compulsory conversion thereof into equity shares.

2. INVESTMENTS

(a) Under a loan agreement for Rs 60 Lakhs (fully drawn and outstanding) entered into between Agro Foods Punjab Limited (AFPL) and the Punjab State Industrial Development Corporation Limited (PSIDC), the Company has given an undertaking to PSIDC that it will not dispose of its shares in AFPL till the monies under the said loan agreement between PSIDC and AFPL remain due and payable by AFPL to PSIDC. During 1998-99, the Company had transferred its benefcial rights in the shares of AFPL.

(b) In respect of the Company's investment in 2,640 equity shares of Reliance Industries Limited, there is an Injunction Order passed by the Court in Kanpur restraining the transfer of these shares. The share certificates are, however, in the possession of the Company. Pending disposal of the case, dividend on these shares has not been recognised.

Note :

Loans and Advances shown in (a) and (b) above to subsidiaries fall under the category of "Loans and Advances" in nature of Loans in terms of Clause 32 of the Listing Agreement. There is no repayment schedule and no interest is payable.

3. CURRENT LIABILITIES AND PROVISIONS

(a) According to information available with the Management, on the basis of the intimations received from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006, the Company has the following amounts due to Micro and Small Enterprises under the said Act.

The provision for Trade Guarantee is expected to be utilised for warranty expenses / settlement of claims within a period of 1 to 10 years depending on the contractual obligation.

Note : Figures in brackets are of the previous year.

4. SALES AND SERVICES

With regard to long term Construction Contracts undertaken, the amount of net revenue recognised is Rs 239094.45 Lakhs (2009-10 : Rs 243858.40 Lakhs).

5. COST OF SALES, SERVICES AND EXPENSES

(i) (a) The Company makes contribution towards provident funds, defned benefit retirement plans, and towards superannuation fund, a defned contribution retirement plan for qualifying employees. These funds are administered by the trustees appointed by the Company. Under the schemes, the Company is required to contribute a specifiedpercentage of salary to the retirement benefit schemes to fund the benefits.

(b) The Company makes annual contributions to Gratuity Funds, which are funded defned benefit plans for qualifying employees. The schemes provide for lumpsum payment to vested employees at retirement, death while in employment or on termination of employment as per the Company's Gratuity Scheme. Vesting occurs upon completion of 5 years of service.

The Company is also providing post retirement medical benefits to qualifying employees.

The most recent actuarial valuations of plan assets and the present values of the defned benefit obligations were carried out as at 31st March, 2011. The present value of the defned benefit obligation and the related current service cost and past service cost are measured using the Projected Unit Credit Method.

The following tables set out the funded status and the amounts recognised in the Company's financial statements as at 31st March, 2011 for the Defned benefit Plans other than Provident Fund. According to the Management, the Actuary has opined that actuarial valuation cannot be applied to reliably measure provident fund liabilities in the absences of guidance from the Actuarial Society of India. Accordingly, the Company is currently not in a position to provide other related disclosures as required by AS 15 read with the Accounting Standards Board Guidance. However, having regard to the position of the Fund, the shortfall, if any, between the earnings guaranteed by the statute and the actual earnings of the Fund is provided for by the Company and contributed to the Fund.

(a) The Actuarial calculations used to estimate defned benefit commitments and expenses are based on the above assumptions which if changed would afect the defned benefit commitment's size, the funding requirement and expenses.

(c) The details of the Company's Defned benefit Plans for its employees given above arecertifiedby the actuary and relied upon by the auditors.

(d) Expected contribution of Rs 589.25 Lakhs (2009-10: Rs 784.65 Lakhs) to Defned benefits (other than Provident Fund) for the next year.

(e) The Company has recognised the following amounts in the profit and Loss Account under the head Company's Contribution to Provident Fund and Other Funds :

6. Derivative Instruments :

The Company has entered into the following derivative instruments :

(a) Forward Exchange Contracts (being a derivative instrument), which are not intended for trading or speculative purposes but for hedge purposes to establish the amount of reporting currency required or available at the settlement date of certain payables and receivables.

7. Estimated amount of contracts remaining to be executed on capital account and not provided for : Rs 3511.10 Lakhs (31-3-2010 : Rs 1208.10 Lakhs). Advance paid against such contracts : Rs 233.99 Lakhs (31-3-2010 : Rs 642.02 Lakhs).

8. Contingent liabilities not provided for :

(a) Guarantees on behalf of other companies :

Limits Rs 22024.65 Lakhs (31-3-2010: Rs 7599.18 Lakhs) against which amount outstanding was Rs 10435.87 Lakhs (31-3-2010: Rs 5648.60 Lakhs) against which a provision has been made for contingencies Rs Nil (31-3-2010: Rs Nil ).

(b) Claims against the Company not acknowledged as debts :

In respect of various matters aggregating Rs 25691.90 Lakhs (31-3-2010: Rs 25139.01 Lakhs), net of tax Rs 17157.05 Lakhs (31-3-2010: Rs 16594.26 Lakhs) against which a provision has been made for contingencies Rs 1125 Lakhs (31-3-2010: Rs 1125 Lakhs). In respect of a contingent liability of Rs 4928.10 Lakhs (31-3-2010: Rs 4513.74 Lakhs), the Company has a right to recover the same from a third party.

(c) Income tax demands :

In respect of matters decided in Company's favour by Appellate Authorities where the Department is in further appeal - Rs 1055.04 Lakhs (31-3-2010 : Rs 1295.63 Lakhs).

(d) Staf demands under adjudication : Amount indeterminate.

(e) Liquidated damages, except to the extent provided, for delay in delivery of goods : Amount indeterminate.

9. In respect of guarantees aggregating Rs 140683.39 Lakhs (31-3-2010 : Rs 87905.05 Lakhs) issued by Banks at the request of the Company in favour of third parties, the Company has given security by way of hypothecation of a part of tangible movable assets, book debts and stocks.

10. In respect of certain property transactions, conveyance deed are pending, as under:

(a) In terms of agreement dated 30th September, 1998, Company's Refrigerators manufacturing facility at Nandalur was transferred on a running business / going concern basis to Electrolux Voltas Limited (EVL) on the close of the business hours on 31st March, 1999. In respect of land for the Nandalur Plant, Deed of Conveyance is pending completion.

(b) The Company had accounted in 1999-2000, the profit on transfer of development rights of Rs 734.12 Lakhs in respect of property at Lalbaug, Mumbai for which agreement for assignment was executed and clearance from the Income Tax Department under Section 269 UC of the Income Tax Act, 1961 was received but for which conveyance formalities are pending completion.

(c) The Company had accounted in 2003-04, the profit on transfer of development rights of Rs 1735.95 Lakhs in respect of property at Thane and Rs 2145.53 Lakhs in respect of property at Pune for which agreements were executed and consideration received but for which conveyance formalities are pending completion.

(d) The Company had accounted in 2004-05, the profit on transfer of development rights of Rs 505.53 Lakhs in respect of property at Thane for which agreement was executed and consideration received but for which conveyance formalities are pending completion.

(e) The Company had accounted in 2006-07, the profit on transfer of development rights in respect of Upvan land and Henkel Switchgear Limited approach land at Thane for which agreements were executed and consideration received (Rs 2070 Lakhs and Rs 223.40 Lakhs, respectively) but for which conveyance formalities are pending completion.

(f) The Company had accounted in 2007-08, the profit on transfer of development rights in respect of land adjoining Simtools at Thane for which an Agreement was executed and consideration received (Rs 919.96 Lakhs) but for which conveyance formalities are pending completion.

(g) The Company had accounted in 2009-10, the profit on transfer of development rights in respect of Nala land at Thane for which an Agreement was executed and consideration received Rs 238.18 Lakhs but for which conveyance formalities are pending completion.

11. 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 the extent 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 paid to non-resident shareholders which were declared during the year, are as under :

Notes:

(i) As per the Industrial Policy declared in July 1991 and as amended in April 1993, no licenses are required for the products manufactured by the Company.

(ii) Installed capacities are ascertifiedby the Management and relied upon by the Auditors. These are alternative and not cumulative and as such production is not strictly comparable with the same.

(iii) Production includes for captive consumption.

* As the accounting year of these companies ends on 31st December, 2010, the fgures are as of that date.

Notes : (i) Lalbuksh Voltas Engineering Services & Trading L.L.C. ceased to be a joint venture company on acquisition of additional 11% shareholding on 31-3-2011. (ii) Figures in the brackets are of the previous year.

12. Segmental Reporting:

Segment information has been presented in the Consolidated Financial Statements as permitted by Accounting Standards (AS-17) on Segment Reporting as notifed under the Companies (Accounting Standards) Rules, 2006.

13. Discontinuing Operations

The Board of Directors of the Company has, at its Meeting held on 19th March, 2011, approved the proposal for formation of a joint venture with KION Group, Germany for the Materials Handling (MH) business, which forms part of the Engineering Products and Services segment of the Company. The transfer of MH business is subject to fulfllment/satisfaction of certain conditions precedent to closing of the transaction. Subsequent to close of the financial year, the Company has on 1st May, 2011, upon satisfaction/deferral of the precedent conditions, which were agreed to by the concerned partners, transferred the MH business to an afliate of KION group.

On the efective date of the Scheme of Arrangement, all identifed tangible assets, including current assets, liabilities, movable assets (excluding immovable assets), intangible assets, business contracts, certain employees, etc. of the MH business would be transferred to JVC.

14. Figures for the previous year have been regrouped, wherever necessary.


Mar 31, 2010

1. SHARE CAPITAL

Equity Share Capital includes :

(a) 9,76,61,300 shares of Re.1 each allotted as fully paid bonus shares by capitalising Rs.80.82 Lakhs out of the Securities Premium Account, Rs.100 Lakhs from Capital Reserve and Rs.795.79 Lakhs out of General Reserve.

(b) 1,77,29,040 shares of Re.1 each allotted to the erstwhile shareholders of Tata-Merlin & Gerin Ltd. (TMG), The National Electrical Industries Ltd. (NEI), Volrho Ltd., Wandleside National Conductors Ltd. (WNC) and Hyderabad Allwyn Ltd. (HAL) consequent upon the amalgamation of these companies with the Company.

(c) 11,97,84,000 shares of Re.1 each allotted to the holders of Convertible Part `A of Rs.60 of the 14% Secured Redeemable Partly Convertible Debentures 1992-99 on compulsory conversion thereof into equity shares.

2. INVESTMENTS

(a) Under a loan agreement for Rs.60 Lakhs (fully drawn and outstanding) entered into between Agro Foods Punjab Limited (AFPL) and the Punjab State Industrial Development Corporation Limited (PSIDC), the Company has given an undertaking to PSIDC that it will not dispose off its shares in AFPL till the monies under the said loan agreement between PSIDC and AFPL remain due and payable by AFPL to PSIDC. During 1998-99, the Company had transferred its beneficial rights in the shares of AFPL.

(b) In respect of the Companys investment in 2640 equity shares of Reliance Industries Limited, there is an Injunction Order passed by the Court in Kanpur restraining the transfer of these shares. The share certificates are, however, in the possession of the Company. Pending disposal of the case, dividend on these shares has not been recognised.

3. SALES AND SERVICES

With regard to long term Construction Contracts undertaken, the amount of net revenue recognised is Rs.243858.40 Lakhs (2008-09: Rs.212332.80 Lakhs).

4. COST OF SALES, SERVICES AND EXPENSES

(i) Opening and Closing Stock - In - Trade excludes WIP for Long Term Contracts Rs.476378.73 Lakhs (1-4-2008 : Rs.268742.82 Lakhs) and Rs 593388.31 Lakhs (31-3-2009 : Rs.476378.73 Lakhs), respectively.

(ii) (a) The Company makes contribution towards provident funds, a defned beneft retirement plan, and towards superannuation fund, a defned contribution retirement plan for qualifying employees. These funds are administered by the trustees appointed by the Company. Under the schemes, the Company is required to contribute a specifed percentage of salary to the retirement beneft schemes to fund the benefts.

(b) The Company makes annual contribution to Gratuity Funds, which are funded defned beneft plans for qualifying employees. The scheme provides for lumpsum payment to vested employees at retirement, death while in employment or on termination of employment as per the Companys Gratuity Scheme. Vesting occurs upon completion of 5 years of service. The Company is also providing post retirement medical benefts to qualifying employees.

The most recent actuarial valuations of plan assets and the present values of the defned beneft obligations were carried out as at 31st March, 2010. The present value of the defned beneft obligation and the related current service cost and past service cost are measured using the Projected Unit Credit Method.

The following tables set out the funded status and amounts recognised in the Companys fnancial statements as at 31st March, 2010 for the Defned Beneft Plans other than Provident Fund. According to the Management, the Actuary has opined that actuarial valuation cannot be applied to reliably measure provident fund liabilities in the absence of guidance from the Actuarial Society of India. Accordingly, the Company is currently not in a position to provide other related disclosures as required by AS 15 read with the Accounting Standards Board Guidance. However, having regard to the position of the Fund, the shortfall if any, between the guaranteed by the statute and actual earnings of the Fund is provided for by the Company and contributed to the Fund.

(a) The Actuarial calculations used to estimate defned beneft commitments and expenses are based on the above assumptions which if changed would afect the defned beneft commitments size, the funding requirement and expenses.

(b) The estimates of future salary increases, considered in the Actuarial valuation, take account of infation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

(d) The details of the Companys Defned beneft plans for its employees are given above which is certifed by the actuary and relied upon by the auditors.

(e) Expected contribution of Rs.784.65 Lakhs (2008-09 : Rs. 782 Lakhs) to Defned Benefts (other than Provident Fund) for the next year.

(f) The Company has recognised the following amounts in the Proft and Loss Account under the head Companys Contribution to Provident Fund and Other Funds :

5. Derivative Instruments :

The Company has entered into the following derivative instruments :

(a) Forward Exchange Contracts (being a derivative instrument), which are not intended for trading or speculative purposes, but for hedge purposes, to establish the amount of reporting currency required or available at the settlement date of certain payables and receivables.

6. Estimated amount of contracts remaining to be executed on capital account and not provided for : Rs.1208.10 Lakhs (31-3-2009 : Rs.1544.54 Lakhs). Advance paid against such contracts : Rs.642.02 Lakhs (31-3-2009 : Rs.706.25 Lakhs).

7. Contingent liabilities not provided for :

(a) Guarantees on behalf of other companies :

Limits Rs.7599.18 Lakhs (31-3-2009 : Rs.4692.93 Lakhs) against which amount outstanding was Rs.5648.60 Lakhs (31-3-2009 : Rs.2076.26 Lakhs) against which a provision has been made for contingencies Rs. Nil (31-3-2009 : Rs.583.59 Lakhs).

(b) Claims against the Company not acknowledged as debts :

In respect of various matters aggregating Rs.25139.01 Lakhs (31-3-2009 : Rs.22615.80 Lakhs), net of tax Rs.16594.26 Lakhs (31-3-2009 : Rs.14928.69 Lakhs) against which a provision has been made for contingencies Rs.1125 Lakhs (31-3-2009 : Rs.1125 Lakhs). In respect of a contingent liability of Rs.4502.84 Lakhs (31-3-2009 : Rs.4502.84 Lakhs) the Company has a right to recover the same from a third party.

(c) Income tax demands :

In respect of matters decided in Companys favour by Appellate Authorities where the Department is in further appeal - Rs.1295.63 Lakhs (31-3-2009 : Rs.350.06 Lakhs).

(d) Staf demands under adjudication : Amount indeterminate.

(e) Liquidated damages, except to the extent provided, for delay in delivery of goods : Amount indeterminate.

8. In respect of guarantees aggregating Rs. 87905.05 Lakhs (31-3-2009 : Rs. 88991.07 Lakhs) issued by Banks at the request of the Company in favour of third parties, the Company has given security by way of hypothecation of a part of tangible movable assets, book debts and stocks.

9. Amounts paid by the Company to Directors as remuneration for services rendered in any capacity (See Schedule ‘O for Computation of Net Proft in accordance with Sections 198 and 309 of the Companies Act, 1956):

10. In respect of certain property transactions, conveyance deed are pending, as under:

(a) In terms of agreement dated 30th September, 1998, Companys Refrigerators manufacturing facility at Nandalur was transferred on a running business / going concern basis to Electrolux Voltas Limited (EVL) on the close of the business hours on 31st March, 1999. In respect of land for the Nandalur Plant, Deed of Conveyance is pending completion.

(b) The Company had accounted in 1999-2000, the proft on transfer of development rights of Rs.734.12 Lakhs in respect of property at Lalbaug, Mumbai for which agreement for assignment was executed and clearance from the Income Tax Department under Section 269 UC of the Income Tax Act, 1961 was received but for which conveyance formalities are pending completion.

(c) The Company had accounted in 2003-04, the proft on transfer of development rights of Rs.1735.95 Lakhs in respect of property at Thane and Rs.2145.53 Lakhs in respect of property at Pune for which agreements were executed and consideration received but for which conveyance formalities are pending completion.

(d) The Company had accounted in 2004-05, the proft on transfer of development rights of Rs.505.53 Lakhs in respect of property at Thane for which agreement was executed and consideration received but for which conveyance formalities are pending completion.

(e) The Company had accounted in 2006-07, the proft on transfer of development rights in respect of Upvan land and Henkel Switchgear Limited approach land at Thane for which agreements were executed and consideration received (Rs. 2070 Lakhs and Rs.223.40 Lakhs, respectively) but for which conveyance formalities are pending completion.

(f) The Company had accounted in 2007-08, the proft on transfer of development rights in respect of land adjoining Simtools at Thane for which an Agreement was executed and consideration received (Rs.919.96 Lakhs) but for which conveyance formalities are pending completion.

(g) The Company has accounted in 2009-10 the proft on transfer of development rights in respect of Nala land at Thane for which an Agreement was executed and consideration received Rs.238.18 Lakhs but for which conveyance formalities are pending completion.

11. Figures for the previous year have been regrouped, wherever necessary.