Mar 31, 2018
30 RELATED PARTY DISCLOSURES:-A Description of Companies:
Name of the Related Party Nature of Relationship
Walchand & Company. Pvt. Ltd. Holding Company
Walchand Netsoft Pvt Ltd Controlled Company
Walchand Diamond Jubilee Trust Directors as Trustee
B Key Management Personnel:
Name of the Related Party Nature of Relationship
Mrs. Pallavi Jha Chairperson & Managing Director
Mr. Sanjay Jha Whole Time Director
Ms Shruthi Patni Chief Financial Officer
C Relative of Key Management Personnel:
Name of the Related Party Nature of Relationship
Mrs. Kamalini Bahubali Mother of Chairperson & Managing Director
Ms. Maithili Jha Daughter of Chairperson & Managing Director
Ms. Anuja Joshi Sister of Chairperson
* 100% provision made against Investment in Equity shares of Bombay Mercantile Co-op Bank Ltd. Rs. 0.05 Lakhs and Investment in shares of Walchand Co. op. housing society Rs. 0.0025 Lakhs. Hence closing value is NIL.
** 100% provision made against Security deposit of Rs. 2.24 Lakhs. Hence closing value is NIL.
FINANCIAL RISK MANAGEMENT 1 Market risk
The Company''s financial risk management is an integral part of how to plan and execute its business strategies. Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. a Interest rate risk :
The company has investment in fixed deposits. However interest income from fixed deposits is a residuary income and will not affect the significant cash flow of the company. b Foreign currency risk:
Company has nominal amount of foreign currency exposure, hence it will not impact cash flow of the company.
2 Credit risk
Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses financial reliability of customers and other counter parties, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of financial assets. Individual risk limits are set and periodically reviewed on the basis of such information. Financial assists are written off when there is no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized as income in the statement of profit and loss. The Company measures the expected credit loss of trade receivables and loan from individual customers based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends. Based on the historical data, loss on collection of receivable is not material hence no additional provision considered.
Financial Assets are considered to be of good quality and there is no significant increase in credit risk.
33 FIRST TIME ADOPTION OF IND AS
For all periods up to and including the year ended 31st March, 2017, the Company had prepared its financial statements in accordance with the accounting standards notified under Section 133 of the Companies Act, 2013, read together with Rule 7 of the Companies (Accounts) Rules, 2014 (âPrevious GAAPâ). This note explains the principal adjustments made by the Company in restating its financial statements prepared under Previous GAAP for the following
a) Balance Sheet as at 1st April, 2016 (Transition date);
b) Balance Sheet as at 31st March, 2017; and
c) Statement of Profit and Loss for the year ended 31st March, 2017 Exemptions availed
Ind AS 101- First-time adoption of Indian Accounting Standards, allows first-time adopters, exemptions from the retrospective application and exemption from application of certain requirements of other Ind AS. The Company has availed the following exemptions as per Ind AS 101:
Optional exemptions availed
i) Property, plant and equipment & Intangible assets :
The Company has elected to consider the carrying value of all its items of property, plant and equipment and intangible assets recognized in the financial statements prepared under Previous GAAP and use the same as deemed cost in the opening Ind AS Balance Sheet.
Ind AS Mandatory exceptions :
i) Classification and measurement of financial assets:
Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist as on the date of transition to Ind AS. Accordingly Company has classified and measured all its financial assets on the basis of the facts and circumstances that exist as on the date of transition to Ind AS.
ii) Estimates :
An entityâs estimates in accordance with Ind AS as on the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous IGAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.Ind AS estimates as at 1 April 2016 are consistent with the estimates as on the same date made in conformity with previous GAAP.
Footnotes :
A Proposed dividend
In the financial statements prepared under Previous GAAP, dividend on equity shares recommended by the Board of Directors after the end of reporting period but before the financial statements were approved for issue, was recognized as a liability in the financial statements in the reporting period relating to which dividend was proposed. Under Ind AS, such dividend is recognized in the reporting period in which the same is approved by the members in a general meeting. On the date of transition, the above change in accounting treatment of proposed dividend has resulted in increase in Equity with a corresponding decrease in Provisions by Rs. 43.69 lakhs
B Rent deposit given
Under the previous GAAP, Rent deposits given were recorded at their transaction value. Under Ind AS, all financial assets are required to be valued at fair value. Difference between fair value of rent deposits and the carrying value (transaction value) as per Previous GAAP has been recognized as prepaid rent. Consequently, the amount of rent deposits given has been decreased by Rs. 3.20 Lakhs, prepaid rent increased by Rs. 3.18 Lakhs and Total Equity decreased by Rs. 0.02 Lakhs as at 1st April, 2016.The amount of rent deposits has been decreased by Rs. 8.21 Lakhs, prepaid rent increased by Rs. 8.07 Lakhs and Total Equity decreased by Rs. 0.14 Lakhs as at 31st March, 2017.Profit for the year ended 31st March 2017 and total equity as at 31st March 2017 decreased by Rs. 0.12 Lakhs (Net) Due to amortization of prepaid lease rent of Rs. 0.83 Lakhs and is partially off-set by the notional interest income on lease deposit of Rs. 0.71 Lakhs.
C Rent deposits received from tenant :
Under the previous GAAP, Rent deposits taken were recorded at their transaction value. Under Ind AS, all financial liabilities are required to be valued at fair value. Difference between fair value of rent deposits and the carrying value (transaction value) as per Previous GAAP has been recognized as Lease income received in advance. Consequently, the amount of rent deposits received from tenant has been decreased by Rs. 7.08 Lakhs, Lease income received in advance increased by Rs. 6.53 Lakhs and Total Equity increased by Rs. 0.55 Lakhs as at 1st April, 2016.The amount of rent deposits has been decreased by Rs. 4.93 Lakhs and Lease income received in advance increased by Rs. 4.35 Lakhs and Total Equity increased by Rs. 0.58 Lakhs as at 31st March, 2017.Profit for the year ended 31st March 2017 and total equity as at 31st March 2017 increased by Rs. 0.03 Lakhs (Net) Due to amortization of Lease income received in advance of Rs. 2.18 Lakhs and is paritally off-set by the notional interest expense on rent deposits taken of Rs. 2.15 Lakhs.
D Remeasurement of defined benefit plans :
In the financial statements prepared under Previous GAAP, remeasurement benefit of defined plans (gratuity), arising primarily due to change in actuarial assumptions was recognized as employee benefits expense in the Statement of Profit and Loss. Under Ind AS, such remeasurement benefits relating to defined benefit plans is recognized in OCI as per the requirements of Ind AS 19- Employee benefits. Consequently, the related tax effect of the same has also been recognized in OCI. For the year ended 31st March, 2017, measurement of gratuity liability resulted in a net benefit of Rs. 17.29 Lakhs which has now been removed from employee benefits expense in the Statement of Profit and Loss and recognized separately in OCI. Consequently, tax effect of the same amounting to Rs. 5.72 Lakhs is also recognized separately in OCI. The above changes do not affect Equity as at date of transition to Ind AS and as at 31st March, 2017. However, Profit before tax and profit for the year ended 31st March, 2017 Increased by Rs. 17.29 Lakhs and Rs. 11.58 Lakhs respectively.
Mar 31, 2016
1. Of the above Equity shares :
(a) During 2011-12, 2,90,389 Equity shares of Rs 100 each were subdivided into 29,03,890 shares of Rs 10/ each.
2. Terms and rights
The company has only one class of equity shares having a par value of Rs 10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. During the year the amount of dividend per share recommended by the Board of Directors to equity shareholders was Rs.1.25 (31st March 2015 - Re 1).
3. Holding company share holding details:-
Out of the 29,03,890 Equity shares, 15,88,234 Equity Shares are held by the holding company.
(Previous year out of 29,03,890 Equity shares, 15,20,486 Equity Shares are held by the holding company).
4. TRADE PAYABLES
Disclosures under Micro, Small and Medium Enterprises Act
Company has sent letters to suppliers to confirm whether they are covered under Micro, Small and Medium Enterprises Act, 2006 as well as they have filed required memorandum with the prescribed authorities. This information is required to be disclosed under the Micro, Small and Medium enterprises development Act,2006 and has been determined to the extent such parties have been identified on the basis of the information available with the company and have been relied upon by the auditors.
5. The company has entered into operating lease arrangements for its office premises which are cancellable and renewable as per terms. The related rent expenses is Rs 47.78 Lacs.(Previous Year - Rs 44.91 Lacs).
6. Employee benefit disclosure
The Company has classified various employee benefits as under:
7. Defined Contribution plans
The amounts recognized as expense :-
8. Defined Benefit plan - Gratuity:
The following table summarizes the components of expense related to defined benefit plan recognized in the Profit and Loss account, the funded status and amounts recognized in the Balance Sheet for the plan.
Mar 31, 2015
1A General Information:
Walchand PeopleFirst Limited (the 'company') is engaged in the
business to impart training in soft skills like leaderships,
communication, presentation, etc. The Company had acquired the
franchise rights to offer, sell, teach and impart the training methods,
techniques and programs developed by Dale Carnegie Training & Asso
ciates, U.S.A. to individual and employees of the corporate.
2.1 Of the above Equity shares :
(a) 11,666 Shares were issued in 1961 by converting 35,000 Promoters'
Shares of Rs. 3.75 each (Rs. 1,31,250) into 11,666 Shares of Rs.11.25
each and by utilising Rs. 2,18,730 from Capital Reserves for issue of
11,666 Shares of Rs. 18.74936 each and consolidating the two.
(b) 43,333 Shares of Rs. 30 each were issued in 1961 as Bonus Shares by
utilising Capital Reserve of Rs. 12,99,990.
(c) During 1966, the face value of 1,71,675 Equity Shares was increased
from Rs. 30 each to Rs. 50 each by utilising Rs. 34,33,500 from Reserve
for Investments and Advances. Further 34,335 bonus Equity Shares of Rs.
50 each were issued as fully paid by capitalisation of Rs. 17,16,750
out of General Reserve.
(d) During 1970, the face value of equity Shares was increased from Rs.
50 to Rs. 60 per share by capitalising Rs. 20,60,100 from General
Reserve.
(e) During 1984, the face value of Equity Shares was increased from Rs.
60 to Rs. 100 per share by capitalising Rs. 82,40,400 from General
Reserve.
(f) During 1994-95, 78,880 Equity Shares of Rs. 100 each were issued to
the promoters on the preferential basis.
(g) During 2009-10, 5499 Equity Shares of Rs 100 each were issued to
one of the shareholder of the transferor company - Walchand TalentFirst
Limited, on account of the scheme of amalgamation.
(h) During 2011-12, 2,90,389 Equity shares of Rs 100 each were
subdivided into 29,03,890 shares of Rs 10/ each.
2.2 Terms and rights
The company has only one class of equity shares having a par value of
Rs 10 per share. Each holder of equity shares is entitled to one vote
per share. The company declares and pays dividend in Indian rupees. The
dividend proposed by the Board ofDirectors is subject to the approval
of the shareholders in the ensuing Annual General Meeting.During the
year the amount of dividend per share recommended by the Board of
Directors to equity shareholders was Re 1. (31st March,2014 - Nil).
2.3 Holding company share holding details:-
Out of the 29,03,890 Equity shares, 15,20,486 Equity Shares are held by
the holding company.(Previous year out of 29,03,890 Equity shares,
15,05,974 Equity Shares are held by the holding company).
The Board of Directors have recommended a final dividend of 10% in its
Board meeting held on 6th May,2015 which is subject to shareholders'
approval.The total amount of dividends proposed to be distributed to
equity shareholders for the period April,2014 to March,2015 is Rs 29.04
Lacs.
Disclosures under Micro, Small and Medium Enterprises Act
Company has sent letters to suppliers to confirm whether they are
covered under Micro, Small and Medium Enterprises Act, 2006 as well as
they have filed required memorandum with the prescribed authorities.
This information is required to be disclosedunder the Micro, Small and
Medium enterprises development Act,2006 and has been determined to the
extent such parties have been identified on the basis of the
information available with the company and have been relied upon by the
auditors.
2.4 CONTINGENT LIABILITIES AND COMMITMENTS
Particulars As at As at
March 31, 2015 March 31, 2014
Income tax Demands for A.Y 09-10 to
A.Y. 12-13 amounting to Rs 178.70
lacs (previous year Rs 87.58 lacs)
has been disputed by the company
before CIT (Appeals)/Income
Tax Tribunal. The management
doesn't expect any liability
crystallizing in these cases. 178.70 87.58
Municipal Corporation of Greater
Mumbai (BMC) has demanded Rs 276.88
lacs (Previous year Rs 146.28 lacs)
on account of Property Tax payable
for the period 01st April, 2000
to 31st March, 2015. The company
had filed an appeal and has been
successful in the Court of Small
Causes, Mumbai against which BMC has
filed an appeal which is pending
in Bombay High Court. Subsequently,
around 2012 BMC changed the method
of computation w.e.f A-Y 2010 to "
Capital Based System" and had
demanded new bills amounting to Rs
134.83 Lacs for the period FY-2010-11
till FY-2014-15 and taken further
action. This has been also challenged
before the Assessment Officer.
Based on the legaladvice obtained in
this case, the management believes that
the ultimate outcome of this proceeding
will be in companies favor and will not
adversely impact the company's
financial position. 276.88 146.28
2.5 RELATED PARTY DISCLOSURES:- A Description of Companies:
Name of the Related Party Walchand & Company. Pvt. Ltd. Walchand
Netsoft Pvt Ltd.
Walchand Diamond Jubilee Trust
Nature of Relationship Holding Company Controlled Company Directors as
Trustee
B Key Management Personnel: Name of the Related Party Mrs. Pallavi Jha
Mr. Sanjay Jha Ms Shruthi Patni
Nature of Relationship
Chairperson & Managing Director Whole Time Director Chief Financial
Officer
C Relative of Key Management Personnel: Name of the Related Party Mrs.
Kamalini Bahubali Ms. Maithili Jha
Nature of Relationship
Mother of Chairperson & Managing Director Daughter of Chairperson &
Managing Director
Mar 31, 2014
1 CONTINGENT LIABILITIES AND COMMITMENTS Rs. in Lacs
Particulars As at As at
March 31, 2014 March 31, 2013
Income tax liability on disputed dues 87.58 76.89
In relation to payment of Rates and
Taxes payable to Municipal Corporation
of Great Mumbai (BMC) for the period
from 1st April,2000 to 31st March 2014
the demand amount stated is disputed
and Appeal is pending before the High
Court. 146.28 145.66
In relation to Lease rental payable to
Mumbai Port Trust the disputed amount
stated has been challenged by the
Company in the City Civil Court. 110.84 103.23
2 RELATED PARTY DISCLOSURES:- A Description of Companies: Name of the
Related Party Walchand & Company Pvt. Ltd. Walchand Netsoft Pvt Ltd.
Walchand Diamond Jubilee Trust Nature of Relationship Holding Company
Controlled Company Directors as Trustee
B Key Management Personnel: Name of the Related Party Mrs. Pallavi Jha
Mr. Sanjay Jha
Nature of Relationship Chairperson & Managing Director Whole Time
Director
C Relative of Key Management Personnel: Name of the Related Party Mrs.
Kamalini Bahubali
Nature of Relationship
Mother of Chairperson & Managing Director
3 Employee benefit disclosure
The Company has classified various employee benefits as under.
Mar 31, 2013
1.1 Of the above Equity shares:
(a) 11,666 Shares were issued in 1961 by converting 35,000 Promoters''
Shares of Rs. 3.75 each (Rs. 1,31,250) into 11,666 Shares of Rs.11.25
each and by utilising Rs. 2,18,730 from Capital Reserves for issue of
11,666 Shares of Rs. 18.74936 each and consolidating the two.
(b) 43,333 Shares of Rs. 30 each were issued in 1961 as Bonus Shares by
utilising Capital Reserve of Rs. 12,99,990.
(c) During 1966, the face value of 1,71,675 Equity Shares was increased
from Rs. 30 euch to Rs. 50 each by utilising Rs.34,33,500 from Reserve
for Investments and Advances. Further 34,335 bonus Equity Shares of Rs.
50 each were issued as fully paid by capitalisation of Rs. 17,16,750
out of General Reserve.
(d) During 1970, the face value of equity Shares was increased from Rs.
50 to Rs. 60 per share by capitalising Rs. 20,60,100 from General
Reserve.
(e) During 1984, the face value of Equity Shares was increased from Rs.
60 to Rs. 100 per share by capitalising Rs. 82,40,400 from General
Reserve.
(f) During 1994-95, 78,880 Equity Shares of Rs. 100 each were issued to
the promoters on the preferential basis.
(g) During 2009-10,5499 Equity Shares of Rs 100 each were issued to one
of the shareholder of the transferor company - Walchand TalentFirst
Limited, on account of the scheme of amalgamation.
(h) During 2011-12, 2,90,389 Equity shares of Rs 100 each were
subdivided into 29,03,890 shares of Rs. 10/ each.
1.2 Terms and rights
The company has only one class of equity shares having a par value of
Rs 10 per share. Each holder of equity shares is entitled to one vote
per share. The company declares and pays dividend in Indian rupees. The
dividend proposed by the Board of Directors is subject to the approval
of the shareholders in the ensuing Annual General Meeting.During the
year ended 31st March,2013 the amount of dividend per share recommended
by the Board of Directors to equity shareholders was Re 1. (31st
March,2012 - Re 1).
1.3 Holding company share holding details:-
Out of the 29,03,890 Equity shares, 15,01,556 Equity Shares are held by
the holding company.(Previous year out of 29,03,890 Equity shares,
15,00,064 Equity Shares are held by the holding company).
2.1 The term loan from bank which is secured by the hypothecation of
vehicles carries interest @ 10.87 % p.a. The loan is repayable in 35
equal monthly installments of Rs 1,08,162 each along with the interest
from the 10th October, 2011. The balance number of months left for the
payment of EMI from 31st March,2013 is 17.
2.2 The term loan from bank which is secured by the hypothecation of
moveable and immoveable fixed asset carries interest @ 13.50 % p.a. The
loan is repayable in 28 equal monthly installments of Rs 3,93,151 each
along with the interest from the 7th February,2011. The balance number
of months left for the payment of EMI from 31st March,2013 is 2.
Mar 31, 2012
1.1 Oi the above Equity shares :
(a) 11,666 Shares were issued in 1961 by converting 35,000 Promoters'
Shares of Rs. 3.75 each (Rs. 1,31,250) into 11,666 Shares of Rs.11.25
each and by utilising Rs. 2,18,730 from Capital Reserves for issue of
11,666 Shares of Rs. 18.74936 each and consolidating the two.
(b) 43,333 Shares of Rs. 30 each were issued in 1961 as Bonus Shares by
utilising Capital Reserve of Rs. 12,99,990.
(c) During 1966, the face value of 1,71,675 Equity Shares was increased
from Rs. 30 each to Rs. 50 each by utilising Rs.34,33,500 from Reserve
for Investments and Advances. Further 34,335 bonus Equity Shares of Rs.
50 each were issued as fully paid by capitalisation of Rs. 17,16,750
out of General Reserve.
(d) During 1970, the face value of equity Shares was increased from Rs.
50 to Rs. 60 per share by capitalising Rs. 20,60,100 from General
Reserve.
(e) During 1984, the face value of Equity Shares was increased from Rs.
60 to Rs. 100 per share by capitalising Rs. 82,40,400 from General
Reserve.
(f) During 1994-95, 78,880 Equity Shares of Rs. 100 each were issued to
the promoters on the preferential basis.
(g) During 2009-10, 5499 Equity Shares of Rs 100 each were issued to
one of the shareholder of the transferor company - Walchand Talent First
Limited, on account of the scheme of amalgamation.
(h) During 2011-12, 2,90,389 Equity shares of Rs 100 each were
subdivided into 29,03,890 shares of Rs 10/ each.
1.2 Terms and rights
The company has only one class of equity shares having a par value of Rs
10 per share. Each holder of equity shares is entitled to one vote per
share. The company declares and pays dividend in Indian rupees. The
dividend proposed by the Board of Directors is subject to the approval
of the shareholders in the ensuing Annual General Meeting.
During the year ended 31st March,2012 the amount of dividend per share
recommended by the Board of Directors to equity shareholders was Re 1.
(31st March,2011 - Nil).
1.3 Holding company share holding details:-
Out of the 29,03,890 Equity shares, 15,00,064 Equity Shares are held by
the holding company.(Previous year out of 2,90,389 Equity shares,
147,769 Equity Shares are held by the holding company).
The Board of Directors have recommended a final dividend of 10% in its
Board meeting held on 18th May,2012 which is subject to shareholders'
approval.
The total amount of dividends proposed to be distributed to equity
shareholders for the period April, 2011 to March,2012 is Rs 29.04 Lacs.
2.1 The term loan from bank which is secured by the hypothecation of
vehicles carries interest @ 10.87 % p.a. The loan is repayable in 35
equal monthly installments of Rs 1,08,162 each along with the interest
from the 10th October, 2011. The balance number of months left for the
payment of EMI from 31st March,2012 is 29.
2.2 The term loan from bank which is secured by the hypothecation of
moveable and immoveable fixed asset carries interest @ 13.50 % p.a. The
loan is repayable in 26 equal monthly installments of Rs 3,43,354 each
along with the interest from the 7th February,2011. The balance number
of months left for the payment of EMI from 31st March,2012 is 14.
Disclosures under Micro, Small and Medium Enterprises Act
Company has sent letters to suppliers to confirm whether they are
covered under Micro, Small and Medium Enterprises Act, 2006 as well as
they have filed required memorandum with the prescribed authorities.
Out of the letters send to the parties, some confirmations have been
received till the date of finalization of Balance Sheet.
b) The company has entered into operating lease arrangements for its
office premises and employee accomodation which are cancellable and
renewable as per terms. The related rent expenses is Rs 29.49
Lacs.(Previous Year - Rs 22.00 Lacs).
c) Lease training centre expenses is Rs 142.83 Lacs . (Previous year -
Rs 169.38 Lacs).
3 CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED
FOR)
Rs. in Lacs
Particulars As at As at
March 31,
2012 March 31,
2011
Income tax liability on disputed dues 59.98 46.14
Corporate Guarantee given to a bank on behalf
of Walchand and Company Private Limited - 20.26
In relation to payment of Rates and Taxes
payable to Municipal Corporation of Great
Mumbai (BMC) for the period from 1st
April,2000 to 31st March 2012 the demand
amount stated is disputed and Appeal is
pending before the High Court. 210.18 176.98
In relation to Lease rental payable to Mumbai
Port Trust the disputed amount stated has
been challenged by the Company in the City
Civil Court. 95.91 88.87
(ii) Defined Benefit plan - Gratuity:
The following table summarizes the components of expense related to
defined benefit plan recognized in the Profit and Loss account, the
funded status and amounts recognized in the Balance Sheet for the plan.
Mar 31, 2011
1) Contingent Liabilities
S. Particulars As at March 31, 2011 As at March 31, 2010
No Rs in Lakhs Rs in Lakhs
(a) Income tax liability
on disputed dues
- Disputed amount 89.16 390.05
- Tax amount on above 46.14 151.36
(b) Corporate Guarantee
given to a bank on behalf
of Walchand and
Company Private Limited
(Balance outstanding
as on March,31) 20.26 60.89
(c) In relation to payment
of Rates and Taxes payable
to Municipal Corporation
of Great Mumbai (BMC)
for the period from
1st April,2000 to 31st
March 2011 the demand
amount stated is disputed
and Appeal is pending
before the High Court. 176.98 143.78
(d) In relation to Lease
rental payable to Mumbai
Port Trust the disputed
amount stated has been
challenged by the Company
in the City Civil Court. 88.87 33.39
2) Capital commitment
The estimated amount of contract remaining to be executed on capital
account and not provided for as on March 31, 2011 is Rs 21.29 Lakhs
(Previous Year - Rs NIL).
3) Related Party Disclosures
A. Description of Companies:
Name of the Related Party Nature of Relationship
i) Walchand & Company Pvt. Ltd. Holding Company
ii) Walchand Netsoft Pvt. Ltd Controlled Company
B. Key Management Personnel:
Name of the Related Party Nature of Relationship
(i) Mrs. Pallavi Jha Chairperson & Managing Director
(ii) Mr. Sanjay Jha Whole Time Director
C. Relative of Key Management Personnel:
Name of the Related Party Nature of Relationship
(i) Mrs. Kamalini Bahubali Mother of Ms.Pallavi Jha
4) Segment Reporting
Walchand PeopleFirst Limited is engaged in the business of training in
soft skills. Also, there are investments held from which income is
derived. All the operations are carried out in India.
5) Leases taken
b) The Company has entered into operating lease arrangements for its
office premises and employee accommodation which are cancelable and
renewable as per terms. The related rent expense is Rs 22.00 Lakhs
(Previous Year - Rs 114.57 Lakhs including equipments).
c) Lease training center expense is Rs.169.38 lakhs (previous year - Rs
150.77 lakhs).
6) Disclosures under Micro, Small and Medium Enterprises Act
Company has sent Setters to suppliers to confirm whether they are
covered under Micro, Small and Medium Enterprises Act, 2006 as well as
they have filed required memorandum with the prescribed authorities.
Out of the letters send to the parties, some confirmations have been
received till the date of finalization of Balance Sheet.
7) In the opinion of the Board, the current assets, loans and advances
are realizable in the ordinary course of business at least at the value
as stated in the financials statements.
8) Additional information pursuant to the provisions of paragraph 3 &
4 of Part II of Schedule VI to the Companies Act, 1956 is either NIL or
not applicable.
9) Previous years figures have been regrouped/ recast wherever found
necessary.
Mar 31, 2010
1. In the opinion of the Board, the current assets, loans and advances
are approximately of the value stated if realised in the ordinary
course of business. The provisions for all known Liabilities are
adequate.
2. Contingent Liabilities:
Particulars As at 31st
March,2010 As at 31st
March,2009
(Rs in Lacs) (Rs in Lacs)
(a) The Income Tax assessment
of the Company is completed upto
Assessment Year 2006-2007.
The total disputed amount under
appeals are stated,tax liability on
which is not ascertainable which are
pending before the Income Tax
authorities. Management does not
foresee any tax liability
materializing from the same. 390.05 418.63
b) Corporate Guarantee given to
a bank on behalf of
Walchand & Company Pvt Ltd 240.00 240.00
(c) Corporate Guarantee given to
a bank on behalf of
Walchand TalentFirst Limited. - 250.00
(d) In relation to payment of
Rates & Taxes payable to Municipal
Corporation of Great Mumbai
(B M C) for the period from
1st April 2000 to 31st March 2010
the demand amount stated is
disputed and Appeal is
pending before the High Court. 143.78 110.60
(e) In relation to Lease rental
payable to Mumbai Port Trust the
disputed amount stated has been
challenged by the Company in the
High Court. 33.39 33.39
3. (a) Name of the amalgamating companies- Walchand TalentFirst
Limited
(b) Nature of Business - Talent Development, Training, Coaching and
other allied Management Services
(c) Method Of Accounting used for amalgamationÃPooling Of Interest
Method
(d) Effective Date of Amalgamation for Accounting Purpose - 01.04.2009
(e) Particulars of the Scheme-
During the year the scheme of Arrangement and Amalgamation ("the
Scheme") of Walchand PeopleFirst Limited (WPFL) and Walchand
TalentFirst Limited (WTFL) was duly approved by the Board of the
Company at its meeting held on 17th September,2009 and subsequently
approved by the Honorable High Court of Mumbai vide order dated 9th
April,2010 and was filed with Registrar Of Companies on 6th May,2010.
Pursuant to the above Scheme the entire business and all assets and
liabilities of Walchand TalentFirst Limited will be transferred and
vested in the Walchand PeopleFirst Limited effective from 01st
April,2009 in the financial year 2010 -11. Hence, the financial
statements are revised for the year ended 31st March 2010, which were
earlier adopted on 10th May 2010, in order to give the effect of this
scheme.
The operations of Walchand TalentFirst Limited being mainly the
training business will continue with Walchand PeopleFirst Limited. All
the assets and liabilities of Walchand TalentFirst Limited will be
merged in the books of Walchand PeopleFirst Limited in accordance with
the aforesaid scheme of merger. Consequently, Walchand TalentFirst
Limited will no longer be in existence post this merger. The merger is
consistent with the Companys long-term strategy to focus its
activities in the areas of training and to integrate, rationalize and
streamline the management structure of the merged business. This scheme
of merger is effective from the appointed date being 1st April, 2009.
The amalgamation is in the nature of merger and thus qualify to be
accounted for under "Pooling of interest Method" as per Accounting
Standard (AS-14)- "Accounting for Amalgamations" issued by the
Institute of Chartered Accountant of India as stated in the Companies
(Accounting Standards) Rules, 2006 and any amendments thereto.
Accounting treatment as per the scheme approved by the Honorable High
Court will be as under:
- All the assets and liabilities of Amalgamating Company will be
transferred to Amalgamated Company at their book values as at the close
of business of the day immediately preceding the Appointed Date.
- The investments in the Equity Share Capital of Amalgamating Company
of Rs. 1265 Lacs appearing in the books of accounts of Amalgamated
Company will stand cancelled.
- The inter-company loans, bonds, debentures, advances, deposit
balances or other obligations as between the Transferor Company and the
Transferee Company will stand cancelled.
- The amount of Goodwill appearing in the books of accounts of the
amalgamating Company as at the appointed date shall be adjusted against
the "General reserve account" in the books of the a malgamated Company.
- An amount equal to the balance lying to the debit balance of the
profit and loss in the books of the accounts of the transferor Company
shall be adjusted against the transferee Company to its "General
reserve" account.
- The Capital Redemption Reserve to the extent excess of Preference
Share Holders unclaimed liability shall be transferred to General
Reserve Account.
- The deficit of the book value of the net assets of the Transferor
Company, as appearing in the Books of Account of the Transferor
Company, over the paid up value of the shares, to be issued and
allotted, pursuant to Clause 13 above, shall be respectively credited
to the "General Reserve Account".
(f) 5499 Equity shares were issued to one of the share holder of
Walchand TalentFirst Limited pursuant to amalgamtion with the company.
The percentage of the equity shares exchanged to effect the
amalgamation is 1.8936%.
(g) Details of assets and liabilities are as follows :
- The Investment in the Equity Share Capital of the Walchand
TalentFirst Limited of Rs. 1265 Lac/- appearing in the books of
accounts of the Company stands cancelled.
- Inter- Company balance stand to be cancelled.
4. Related Party Disclosures:
A. Description of Companies: -
Name of the Related Party Nature of Relationship
i) Walchand & Co. Pvt. Ltd. Holding Company
ii) Walchand Netsoft Pvt Ltd
(Formerly WalchandCricketnext.com
Private Limited) Controlled Company
iii)Walchand TalentFirst Limited Subsidiary during 08-09
(Merged with Walchand
People First Ltd.
w.e.f April 1,2009)
B. Key Management Personnel: -
Name of the Related Party Nature of Relationship
Mrs. Pallavi Jha Chairperson & Managing Director
Mr. Sanjay Jha Whole Time Director
C. Relative of Key Management
Personnel: -
Name of the Related Party Nature of Relationship
Mrs. Kamalini Bahubali Mother of Ms.Pallavi Jha
5. Employee benefit disclosure - AS - 15
The Company has classified various employee benefits as under; (A)
Defined contribution plans
a. Provident Fund
b. Superannuation Fund
The Provident Fund are operated by the Regional Provident Fund
Commissioner and Trustee of Construction Employees Provident Fund and
the superannuation fund is administered by the Life Insurance
Corporation of India. Under the schemes, the Company is required to
contribute a specified percentage of payroll cost to the retirement
benefit schemes to fund the benefits. These funds are recognized by the
Income Tax authorities. The Company has recognized the following
amounts in the Profit and Loss Account for the year
(B) Gratuity and other post-employment benefit plans: (AS 15 120(b))
The Company has a defined benefit gratuity plan. Every employee who has
completed five years or more of service gets a gratuity on departure at
15 days salary (last drawn salary) for each completed year of service.
The scheme is funded with an insurance company in the form of a
qualifying insurance policy.
The following tables summarize the components of net benefit expense
recognized in the profit and loss account and the funded status and
amounts recognized in the balance sheet for the plans.
Other Terms
ii) Additional amount of Service Tax will be paid on these rentals as
per the applicable rates existing at the time of payment à Rs.146.19
lacs has been grouped under Training Centre expenses in Profit and Loss
Account .
- After the completion of 1 year from their respective dates of
inception, lease rent will get escalated as per the agreement.
Other Terms
i) The Operating lease arrangements extend for a maximum of 3 years
from their respective dates of inception and relate to rented premises.
ii) Additional amount of Service Tax will be paid on these rentals as
per the applicable rates existing at the time of payment
iii) After the completion of 1 year from their respective dates of
inception, lease rent will get escalated as per the agreement.
* In the absence of lease period in the agreements entered with
Assistant Collector of Central Excise and Anuditi investment Pvt Ltd.
pertaining to future years, the future rental values are not
disclosable.
* There are no restrictions on further sub lease. Some assets are given
on further sub lease by lessee.
* Additional amount of Service Tax will be collected on these rentals
as per the applicable rates existing at the time of payment
* After the completion of 1 year from their respective dates of
inception, lease rent will get escalated as per the agreement.
6. Previous years figures have been regrouped/ rearranged wherever
found necessary. Further, previous years figures are not comparable
with the current year as current years figures include the amalgamated
amounts.
7. Figures in bracket reflect the figures for previous year.