A Oneindia Venture
Click it and Unblock the Notifications
Notes to Accounts of Deep Energy Resources Ltd.
Mar 31, 2023
13.4 The Company has only one class of equity shares having a par value of Rs. 10 per share, each shareholder is elligible for one vote per share. The dividend if proposed by the Board of Directors is subject to approval of share holder in ensuing Annual General Meeting. In the event of liquidation, the Equity Sharesholders are eligible to receive the remaining Assets of the company after Distribution of all Preferential amount, in proportion to Shareholding. There are no shares issued pursuant to contract without payment being received in cash, allotted as fully paid up by way of bonus shares and bought back during the last 5 years.
Nature of Other Reserves Securities Premium Account
Securities Premium is used to record the premium on issue of shares, pursuant to scheme to demerger of Deep Energy. The reserve is utilised in accordance with the provisions of the Companies Act, 2013.
Capital Reserve
Represent a non-distributable reserve.
General Reserve
General Reserve is created out of profit after tax earned by the Company by way of transfer from surplus in the statement of profit and loss.The Company can use this Reserve for payment of dividend and issue of fully paid-up shares. As General Reserve is created by transfer of one component of equity to another and is not an item of other comprehensive income, items included in the General Reserve will not be subesquently reclassified to statement of profit and loss Retained Earning
Retained earnings represents the amount of profits or losses of the company earned till date net of appropriation.
|
27 - CONTINGENT LIABILITIES AND COMMITMENTS |
||||
|
CONTINGENT LIABILITIES |
||||
|
(a) |
Claims against the Company not acknowledged as debts (Net of Payments) |
2,280.38 |
2,280.38 |
|
|
Statute |
Amount |
|||
|
Service Tax |
150.03 |
|||
|
Income Tax |
2,125.01 |
|||
|
TDS (Income Tax) |
5.34 |
|||
|
(b) |
Guarantees given (Net) |
930.03 |
920.00 |
|
CAPITAL COMMITMENTS -
As per para 4 of Ind AS 108 âOperating Segmentsâ, if a single financial report contains both consolidated financial statements and the separate financial statements of the Parent Company, segment information may be presented on the basis of the consolidated financial statements. Thus, the information related to disclosure of operating segments required under Ind AS 108 âOperating Segmentsâ, is given in Consolidated Financial Statements.
29 - CORPORATE SOCIAL RESPONSIBILITY
Pursuant to the provisions of section 135(5) of the Companies Act, 2013 (the Act), As per the relevant provisions of the Act read with Rule 2(1)(f) of the Companies (Corporate Social Responsibility Policy) Rules, 2014, the Company is required to spend at least 2% of the average net profits (determined under section 198 of the Companies Act 2013 and section 349 of the Companies Act 1956) made during the immediately three financial years. However, due to arriving at net loss for average of preceding three financial years calculated as per Section 198 of the Companies Act, 2013, the company is not required to spend any amount on CSR activities for Financial Year 2022-23.
Gross amount required to be spent by the Company during the year: Rs. NIL (Previous year - Rs. NIL).
(i) The above related party transactions have been reviewed periodically by the Board of Directors of the Company vis-a-vis the applicable provisions of the Companies Act, 2013, and justification of the rates being charged/ terms thereof and approved the same.
(ii) The details of guarantees and collaterals extended by the related parties in respect of borrowings of the Company have been given at the respective notes.
iii) Entity under common control are disclosed only transaction has taken place during the year.
iv) All related party transaction have been taken at arm''s length price.
31. FINANCIAL INSTRUMENTS - Financial Risk and Capital Management
31.1 All financial instruments for which fair value is recognised or disclosed are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is insignificant to the fair value measurements as a whole.
Level 1 : quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2 : valuation techniques for which the lowest level inputs that has a significant effect on the fair value measurement are observable, either directly or indirectly.
Level 3 : valuation techniques for which the lowest level input which has a significant effect on fair value measurement is not based on observable market data.
There have been no transfers between Level 2 and Level 3 during the period.
31.2 The management assessed that fair value of short term financial assets and liabilities significantly approximate their carrying amounts largely due to the short term maturities of these instruments. The fair value of the financial assets and liabilities is included at the amounts at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
31.3 The Company determines fair values of financial assets or liabilities by discounting the contractual cash inflows / outflows using prevailing interest rates of financial instruments with similar terms. The initial measurement of financial assets and financial liabilities is at fair value.
31.4 The following methods and assumptions were used to estimate the fair values:
- The fair value of The Company''s interest bearing borrowings are determined using discount rate that reflects The entity''s discount rate at the end of the reporting period. The own non-performance risk as at the reporting period is assessed to be insignificant.
- The fair value of unquoted instruments and other financial assets and liabilities is estimated by discounting future cash flows using rates currently applicable for debt on similar terms, credit risk and remaining maturities.
32. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Company''s Risk Management framework encompasses practices relating to the identification, analysis, evaluation, treatment, mitigation and monitoring of the strategic, external and operational controls risks to achieving the Company''s business objectives. It seeks to minimize the adverse impact of these risks, thus enabling the Company to leverage market opportunities effectively and enhance its long-term competitive advantage. The focus of risk management is to assess risks and deploy mitigation measures.
The Company''s activities expose it to variety of financial risks namely market risk, credit risk and liquidity risk. The Company has various financial assets such as deposits,other receivables and cash and bank balances directly related to the business operations. The Company''s principal financial liabilities comprise of trade and other payables. The Company''s senior management''s focus is to foresee the unpredictability and minimize potential adverse effects on the Company''s financial performance. The Company''s overall risk management procedures to minimize the potential adverse effects of financial market on the Company''s performance are outlined hereunder:
The Company''s Board of Directors have overall responsibility for the establishment and oversight of the Company''s risk management framework.
The Company''s risk management is carried out by the management in consultation with the Board of Directors. They provide principles for overall risk management, as well as policies covering specific risk areas.
The note explains the sources of risk which the entity is exposed to and how the entity manages the risk.
(A) Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers and from its financial activities including deposits with banks and other financial instruments.
(i) Cash and cash equivalents:
The Company considers factors such as track record, size of institution, market reputation and service standard to select the banks with which deposits are maintained. The Company does not maintain significant deposit balances other than those required for its day to day operations. Credit risk on cash and cash equivalents is limited as these are generally held or invested in deposits with banks and financial institutions with good credit ratings.
(B) Liquidity Risk
Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company''s approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses. In doing this, management considers both normal and stressed conditions.
The Company''s objective is to maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company relies on a mix of borrowings, capital and excess operating cash flows to meet its needs for funds. The current committed lines of credit are sufficient to meet its short to medium term expansion needs. The Company monitors rolling forecasts of its liquidity requirements to ensure that it has sufficient cash to meet operational needs.
(C) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices.Market risk comprises following types of risks : foreign currency risk and interest risk.
(i) Interest rate risk
The Company''s exposure to the risk of changes in market interest rates relates primarily to debts having floating rate of interest. Its objective in managing its interest rate risk is to ensure that it always maintains sufficient headroom to cover interest payment from anticipated cashflows which are regularly reviewed by the Board. However, the company does not have any borrowings.
The Company''s non-current borrowings from banks are Nil as at 31st March, 2023 and 31st March, 2022 respectively thus the risk of changes in the interest rates is nil. As a result, the sensitivity affecting the profit before tax due to the Company''s exposure to the risk of changes in market interest rates is nil.
(ii) Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates and arises where transactions are done in foreign currencies. It arises mainly where receivables and payables exist due to transactions entered in foreign currencies. The Company evaluates exchange rate exposure arising from foreign currency transactions and follows approved policy parameters utilizing forward foreign exchange contracts whenever felt necessary. The Company does not enter into financial instrument transactions for trading or speculative purpose. The company does not have any outstanding foreign currency exposure at the end of the reporiting periods.
(D) Capital management
The Company manages its capital to be able to continue as a going concern while maximising the returns to shareholders through optimisation of the debt and equity balances. For the purpose of calculating gearing ratio, debt is defined as non current and current borrowings (excluding derivatives). Equity includes all capital and reserves of the Company attributable to equity holders of the Company. The Company is not subject to externally imposed capital requirements. The Board reviews the capital structure and cost of capital on an annual basis but has not set specific targets for gearing ratios. The risks associated with each class of capital are also considered as part of the risk reviews presented to the Audit Committee and the Board of Directors.
1) Current ratio (in times)
Improved due to speedier recovery of receivables.
2) Trade receivable turnover ratio (in times)
Improved due to speedier recovery of receivables.
3) Trade Payable turnover Ratio (in times)
Mainly due to improved cashflow and timely payment to suppliers.
4) Net capital turnover ratio (in times)
Decreased mainly due to strategic investments by the company.
5) Net profit ratio (%):
During the year company mainly operated in high margin service segment.
6) Return on capital employed (%)
Major impact due to better profitibility of the company during the year.
7) Return on Investment (%)
Major impact due to better profitibility of the company during the year.
34 - STRUCK OFF COMPANIES
The Company does not have any transactions with companies struck - off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956.
35 - Balances of Other Current Liabilities, Trade Receivables and Trade Payables are subject to confirmation, reconciliation and
adjustments if any.
36 - In the opinion of the Management, current assets have a value on realisation in the ordinary course of business at least equal to
the amount at which they are stated except where indicated otherwise.
37 - Previous period figures have been regrouped, re-classified and re-arranged wherever considered necessary to confirm to the
current year''s classification.
38 - The MCA wide notification dated March 24, 2021 has amended Schedule III to the Companies Act, 2013 in respect of certain
disclosures. The Company has incorporated appropriate changes in the above results.
39 - Additional information as required under para 2 of General Instruction of Division II of Schedule III to the Companies Act,
2013.
A. The Company has not carried out any revaluation of Property, Plant and Equipment in any of the period reported in this Financial Statements hence reporting is not applicable.
B. The company does not hold any benami property as defined under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder. No proceeding has been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder
C. The company is not required to submit Stock statement to Banks on quarterly basis as there are no borrowings from banks during the year.
D. The company does not have any charges or satisfaction, which is yet to be registered with ROC beyond the statutory period.
E. The Company does not have any such trasaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 ( Such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).
F. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the company (Ultimate Beneficiaries) or(b) provide any guarantee, security or the like to or on behalf of the Ultimate
Beneficiaries
G. The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Funding Party (Ultimate Beneficiaries) or(b) provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries,
H. During FY 2022-23, the company has not raised any amount from issue of securities.
I. The Company has not traded or invested in crypto currency or virtual currency during the financial year.
J. The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the Companies Act read with the Companies ( Restriction on number of Layers) Rules, 2017.
Mar 31, 2018
1. CORPORATE INFORMATION
Deep Industries Limited (DIL) is a well diversified oil & gas company serving the industry since 1991 with business interests in Air and Gas compression, Gas Dehydration, Work over, Drilling and Oil & Gas Exploration and Production. DIL is the first company in India to provide high pressure Air and Gas compressors on charter hire basis. DIL is the largest Natural Gas Compression services provider in India and has also diversified into providing of work-over services to exploration and production (E&P) players through its fleet of rigs.
2. BASIS OF PREPARATION
Ministry of Corporate Affairs notified roadmap to implement Indian Accounting Standards (âInd ASâ) notified under the Companies (Indian Accounting Standards) Rules, 2016 as amended by the Companies (Indian Accounting standards) (Amendment) Rules,2016. As per the said roadmap, the company is required to apply Ind AS starting from financial year beginning on or after 1st April 2017.
For all period, upto and including the year ended 31st March 2017, the Company prepared its financial statements in accordance with the Accounting Standards notified under Section 133 ofthe Companies Act 2013, read together with Companies (Accounts) Rules 2014 (Indian GAAP). These Financial statements for the year ended 31st March 2018 are the first, the Company has prepared in accordance with Ind AS (Refer Note 47 for information on how the company has adopted Ind AS).
The financial statements have been prepared on historical cost basis, except certain financial assets and liabilities which have been measured at fair value, defined benefits plans and contingent consideration. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.
All assets and liabilities have been classified as current or non-current as per the Companyâs normal operating cycle and other criteria set out in the Schedule III to the Act. Based on the nature of products and the time between acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purposes of current / non-current classification of assets and liabilities.
Current versus non-current classification
The Company presents assets and liabilities in the balance sheet based on current/ non-current classification.
An asset is treated as current when it is:
a. Expected to be realized or intended to be sold or consumed in normal operating cycle
b. Held primarily for the purpose of trading
c. Expected to be realized within twelve months after the reporting period, or
d. Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period
All other assets are classified as non-current.
A liability is current when:
a. It is expected to be settled in normal operating cycle
b. It is held primarily for the purpose of trading
c. It is due to be settled within twelve months after the reporting period, or
d. There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period All other liabilities are classified as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities.
2A. USEOF ESTIMATES
The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results.
Management also needs to exercise judgment in applying the groupâs accounting policies. This note provides an overview ofthe areas that involved a higher degree of judgment or complexity, and of items which are more likely to be adjusted due to estimates and assumptions turning outto be different from those originally assessed. Detailed information about each of these estimates and judgments is included in relevant notes together with information about the basis of calculation for each affected line item in the financial statements.
Critical estimates and judgments
The areas involving critical estimates or judgments are:
a) Estimation of current tax expense and payable - Refer accounting policies - 3.9
b) Estimated useful life of property, plant & equipment and intangible assets - Refer accounting policies - 3.1
c) Estimation of defined benefit obligation - Refer accounting policies - 3.8
d) Estimation of fair values of contingent liabilities - Refer accounting policies - 3.12
e) Recognition of revenue - Refer accounting policies - 3.4
f) Recognition of deferred tax assets for carried forward tax losses - Refer accounting policies - 3.9
g) Impairment of financial assets - Refer accounting policies - 3.2 & 3.5
Estimates and judgments are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the group and that are believed to be reasonable under the circumstances.
16.3 During the FY 2016-17, the Company has offered equity shares to âQualified Institutional Buyersâ(QIBs) through Qualified Institutions Placementin accordance with Chapter VII ofSEBI(Issue of Capital and Disclosure Requirements) Regulations, 2009. Accordingly 28,00,000 equity shares of Rs.10/- each were alloted to QIBs on 28th December, 2016 at an issue price of Rs.228/- per equity share.(Including premium of Rs.218/- per equity share)
3.1 The Company has only one class of equity shares having a par value of Rs. 10 per share, each shareholder is elligible for one vote per share. The Company delcares and pays dividend in Indian Rupees. Dividend Proposed by Board of Directors is subject to approval of Shareholders in the ensuing Annual General Meeting.
3.2 In the event of liquidation, the Equity Sharesholders are eligible to receive the remaining Assets ofthe company after Distribution of all Preferential amount, in proportion to Shareholding.
3.3 Company has not alloted any bonus shares, Shares without consideration in cash and/or bought backany equity shares during the priod of five years immediately preceeding the Balance sheet date.
4.1 Nature of Security and Term of Repayment for Long Term Secured borrowings
(i) Rupee Term Loan and Foreign Currency Term Loan from State Bank of India, EXIM Bank as mentioned above is secured by hypothecation of Air Compressor Package, Gas Compressor Package, Work over and Drilling Rigs and other Misc. Assets and further secured by personal guarantee of Directors and equitable mortgage of immovable properties situated at Ahmedabad held in the name of director. Rupee Term Loan and Foreign Currency Term Loan from HDFCBank, Indusind Bank and IDFC Bank as mentioned above is secured by hypothecation of Gas Dehydration Units, Gas Compressor Packages, Work over Rigs specificallyfunded by them and further secured by personal guarantee of Directors. Though Rollover Period of Foreign Currency Term Loan is less than 12 Month from the Balance Sheetdate, thetenure of Term Loan forwhich arrangement is made is more than 12 Months. Hence, Foreign Currency Term Loan arrangement is classified as Non-Current Liabilities.
(ii) Buyerâs Credits are obtained from overseas branches of State Bank of India, Bank of Baroda and HDFC Bank which are backed by Letter of Undertaking from State Bank of India, Indusind Bank, HDFC Bank and IDFC Bank whohas sanctioned the Term Loans. Though Rollover Period of some ofthe Buyers credits are less than 12 Month from the Balance Sheet date, the tenure of Term Loan forwhich arrangement is made is more than 12 Months. Hence, Buyers Credit arrangement is classified as Non-Current Liabilities.
(iii) Term Loans of HDFC Bank are repayable in Four and half years,three years and four years with moratorium period of 6 months. Term Loan of State Bank of India and Indusind Bank are repayable in Five years. Term Loan of EXIM Bank is repayable in seven years and Term Loan from IDFC Bank are repayable in three yearswith moratorium period of6 months.
A The Net Deferred Tax Expenses of INR 652.66 Lakhs [Previous Year: INR 1004.25 Lakhs) forthe year has been debited in the Statement of Profit and Loss.
B The Group offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.
C. The major components of income tax expense forthe years ended March 31, 2018 and March 31, 2017 are:
(a) Estimated amount of contracts remaining to be executed on capital account and not provided for Considering nature of activity it is not possible to ascertain the elements of Capital Commitment Expenditure to be executed on capital account.
5- SEGMENT REPORTING
The Company is not required to give segment wise revenue details and capital employed as Exploration and Production segement has not generated any revenue andthe Capital employedfor E&P segment is less than 10% of total capital employed ofthe Company.
6 - DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (IND AS) 19 EMPLOYEE BENEFITS
The Company has classified the various benefits provided to employees as under:-
(a) Defined contribution plans
- Provident fund
The Company has recognized the following amounts in the statement of profit and loss:
Employersâ contribution to provident fund :- Current Year Rs. 69.09 Lakhs (Previous YearRs. 14.87 Lakhs)
(b) Defined benefit plans
- Gratuity
In accordance with Indian Accounting Standard 19, actuarial valuation was done in respect ofthe aforesaid defined benefit plans based on the following assumptions-Economic Assum ptions
The discount rate and salary increases assumed are the key financial assumptions and should be considered together; it is the difference or âgapâ between these rates which is more important than the individual rates in isolation.
Discount Rate
The discounting rate is based on the gross redemption yield on medium to long term riskfree investments. The estimated term ofthe benefits/obligations works out to zero years. Forthe current valuation a discount rate of 7.60% p.a. (Previous Year 7.15% p.a.) compound has been used.
Salary Escalation Rate
The salary escalation rate usually consists of at least three components, viz. regular increments, price inflation and promotional increases. In addition to this any commitments by the management regarding future salary increases and the Companyâs philosophy towards employee remuneration are also to be taken into account. Again a long-term view as to trend in salary increase rates has to betaken ratherthan be guided by the escalation rates experienced in the immediate past, ifthey have been influenced by unusual factors.
The assumptions used are summarized in the following table:
7- CORPORATE SOCIAL RESPONSIBILITY
Pursuant to the provisions of section 135(5) of the Companies Act, 2013 (the Act), the Company has formed its Corporate Social Responsibility (CSR) Committee. As per the relevant provisions of the Act read with Rule 2(1)(f) ofthe Companies (Corporate Social Responsibility Policy) Rules, 2014, the Company is required to spend at least 2% ofthe average net profits (determined under section 198 ofthe Companies Act 2013 and section 349 of the Companies Act 1956) made during the immediately three financial years.
Gross amount required to be spent by the Company during the year: Rs. 1,35,45,719 (Previous year- Rs. 72,45,145/-)
8 - RELATED PARTY DISCLOSURES AS PER INDIAN ACCOUNTING STANDARD-24 (a) Related Parties
1. Subsidiaries
- Deep Energy LLC, USA
- Deep Natural Resources Limited
- Prabha Energy Pvt Ltd.
- Deep Onshore Drilling Services Pvt Ltd
- Deep International DMCC
2. Enterprises significantly influences by KMP, or Relatives of KMP
- Adinath Exim Resources Limited
- Savla Oil & Gas Pvt. Ltd
4. Relative of Key Management Personnel
- Mr. Manoj Savla
- Mrs. Avani Savla
- Mrs. Mita Manoj Savla
- Mr. Shail Manoj Savla
- Mrs. Shital Rupesh Savla
- Mr. Shanil Paras Savla
9. FINANCIAL INSTRUMENTS - ACCOUNTING CLASSIFICATIONS AND FAIR VALUE MEASUREMENTS
The fair values ofthe financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
The following methods and assumptions were used to estimate the fair values:
1. Fair values of cash and shortterm deposits, trade and other shortterm receivables, trade payables, other current liabilities, shortterm loans from banks and other financial institutions approximate their carrying amounts largely due to short-term maturities of these instruments.
2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual creditworthiness ofthe counterparty. Based on the evaluation, allowances are taken to account forthe expected losses of these receivables.
The company uses the following hierarchy for determining and disclosing the fair values of financial instruments by valuation technique:
Level 1 : Quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2 : Other techniques for which all inputs which have a significant effects on the recorded fair value are observable, either directly or indirectly.
Level 3 : Techniques which use inputs that have a significant effects on the recorded fair value that are not based on observable market data.
10. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Companyâs financial risk management is an integral part of howto plan and execute its business strategies. The companyâs financial risk management policy is set by the Managing Board.
Market risk
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. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and loan borrowings.
The Company manages market risk through a treasury department, which evaluates and exercises independent control over the entire process of market risk management. The treasury department recommends risk management objectives and policies, which are approved by Senior Management and the Audit Committee. The activities of this department include management of cash resources, implementing hedging strategies forforeign currency exposures, borrowing strategies, and ensuring compliance with market risk limits and policies.
Interest rate risk
Interest rate risk is the risk that fair value or future cashflows of a financial instrument will fluctuate because of changes in market interest rates. In order to optimize the companyâs position with regards to the interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in it total portfolio.
The company is not exposed to significant interest rate risk as at the specified reporting date.
Refer Note 19 for interest rate profile ofthe Companyâs interest-bearing financial instrument at the reporting date.
Foreign currency risk
The Company operates locally, however, the nature of its operations requires it to transact in in INR and USD and consequently the Company is exposed to foreign exchange risk in USD.
The Company evaluates exchange rate exposure arising from foreign currency transactions and the Company follows established risk management policies. Being net forex gainer Company is having natural hedge position in USD currency.
I. Foreign Currency Exposure
Refer Note 42 forforeign currency exposure as at March 31, 2018, March 31, 2017 and April 01, 2016 respectively.
II. Foreign Currency Sensitivity
1% increase or decrease in foreign exchange rates will have the following impact on the profit before tax
Credit riskarisesfrom the possibility thatcounterparty may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual risk limits are set accordingly. Almost all customers of the Company are either public sector undertakings or multinational Companies.
The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whetherthere is significant increase in credit risk the company compares the risk of a default occurring an the asset at the reporting date with the risk of default as the date of initial recognition. It considers reasonable and supportive forwarding-looking information such as:
(i) Actual or expected significant adverse changes in business,
(ii) Actual or expected significant changes in the operating results ofthe counterparty.
(iii) Financial or economic conditions thatare expected to cause a significant change to the counterpartyâs ability to mere its obligation,
(iv) Significant increase in credit risk on other financial instruments of the same counterparty.
(v) Significant changes in the value ofthe collateral supporting the obligation or in the quality of third-party guarantees or credit enhancements.
Financial assets are written off when there is no reasonable expectation of recovery, such as a debtor failingto engage in a repayment plan with the Company. The Company categorises a loan or receivable forwrite off when a debtorfails to make contractual payments greater than 2 years past due. 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 recognised in profit or loss.
The company has assets where the counter- parties have sufficient capacity to meet the obligations and where the risk of default is very low. Hence based on historic default rates, the Company believes that, no impairment allowance is necessary in respect of above mentioned financial assets.
Liquidity Risk
Liquidity Risk is defined as the risk that the company will not be able to settle or meet its obligations on time or at reasonable price. The companyâs treasury department is responsible for liquidity, funding as well as settlementmanagement. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the companyâs net liquidity position through rolling forecast on the basis of expected cash flows.
Maturity profile of financial liabilities
The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date based on contractual undiscounted payments.
11- FIRST TIME ADOPTION OF IND AS
First-time Adoption of Ind AS
The company has prepared its first Financial Statements in accordance with Ind AS for the year ended March 31, 2017. For periods upto and including the year ended 31 March 2016, the Company prepared its financial statements in accordance with Indian GAAP, including accounting standards notified underthe Companies (Accounting Standards) Rules, 2006 (as amended). The effective date for Companyâs Ind AS Opening Balance Sheet is 1 April 2016 (the date of transition to Ind AS).
The accounting policies set out in Note 3 have been applied in preparing the financial statements forthe year ended March 31, 2017, the comparative information presented in these financial statements for the year ended March 31, 2016 and in the preparation of an opening Ind AS Balance Sheet at April 01, 2015 (the Companyâs date of transition). According to Ind AS 101, the first Ind AS Financial Statements must use recognition and measurement principles that are based on standards and interpretations that are effective at March 31, 2017, the date of first-time preparation of Financial Statements according to Ind AS. These accounting principles and measurement principles must be applied retrospectively to the date of transition to Ind AS and for all periods presented within the first Ind AS Financial Statements.
Any resulting differences between carrying amounts of assets and liabilities according to Ind AS 101 as of April 01, 2015 compared with those presented in the Indian GAAP Balance Sheet as of March 31, 2015, were recognized in equity under retained earnings within the Ind AS Balance Sheet.
An explanation of how the transition from previous GAAP to Ind AS has affected the companyâs financial position, financial performance and cash flows is set out in the following notes and reconciliations.
I. Exemptions and exceptions availed:
Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from Indian GAAP to Ind AS.
A) Deemed cost:
Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to IndAS, measured as perthe Indian GAAP and use thatas its deemed cost as atthe date of transition after making necessary adjustmentsfor de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets.
Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets at their Indian GAAP carrying values.
B) Leases:
Appendix C to Ind AS 17 requires an entity to assess whether a contract or arrangement contains a lease. In accordance with Ind AS 17, this assessment should be carried out at the inception of the contract or arrangement. Ind AS 101 provides an option to make this assessment on the basis of facts and circumstances existing atthe date of transition to Ind AS, except where the effect is expected to be not material. The Company has elected to apply this exemption for such contracts/arrangements.
C) Designation of previously recognised financial instruments:
Ind AS 101 allows an entity to designate investments in equity instruments at FVOCI on the basis of the facts and circumstances atthe date of transition to IndAS. The Company has elected to apply this exemption for its investment in equity investments.
D) Estimates:
An entityâs estimates in accordance with Ind ASs at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with Indian GAAP [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 April 1, 2015 are consistentwith the estimates as atthe same date made in conformity with Indian GAAP. The Company made estimates for following items in accordance with Ind AS atthe date of transition as these were not required under Indian GAAP:
i. Investment in equity instruments carried at FVPL or FVOCI;
ii. Investment in debt instruments carried at FVPL; and
iii. Impairment of financial assets based on expected credit loss model.
E) 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 atthe date of transition to Ind AS.
F) De-recognition of financial assets and liabilities:
Ind AS 101 requires a first-time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first-time adopter to apply the derecognition requirements in Ind AS 109 retrospectively from a date ofthe entityâs choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognised as a result ofpast transactions was obtained at the time of initially accounting for those transactions._
# Deferred Tax on Ind AS adjustments:
IGAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under IGAAP. In addition, the various transitional adjustments lead to temporary differences. According to the accounting policies, the Company has to account for such differences. Deferred tax adjustments are recognised in correlation to the underlying transaction either in retained earnings or a separate component of equity.
% Actuarial loss on defined benefit plan:
Both under IGAAP and Ind AS, the Company recognised costs related to its post-employment defined benefit plan on an actuarial basis. Under IGAAP, the entire cost, including actuarial gains and losses, are charged to profit or loss. Under Ind AS, remeasurements [comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets excluding amounts included in net interest on the net defined benefit liability] are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI.
$ Effect of changes in revaluation surplus:
Para 39 to 42 ofthe Ind AS 16"Property, Plant & Equipment mandates that any change in the revaluation surplus is required to be routed through other comprehensive income (OCI). Accordingly, additional depreciation arising out of revalued property is also required to be routed through OCI account. The said effect has been eliminated from statement of profit and loss and has been shown under OCI
@ Fair valuation of borrowing through profit and loss account
Ind AS 109 mandates financial instruments that are classified as fair value through profit or loss account to be fair valued whenever the financial statements are prepared. As per the provisions of Ind AS 109, where any transaction costs have been incurred at the time of obtaining term loan, then the said costs are requiredto be amortized at âEffective Interest Rateâ (EIR) intime span ofthe said term loan.
~ Others:
Sale of goods:
Under the IGAAP, revenue from sale of products was presented exclusive of excise duty. Under Ind AS, revenue from sale of goods is presented inclusive of excise duty. The excise duty paid is presented on the face of the statement of profit and loss as part of expenses.
Other comprehensive income:
Under Ind AS, all items of income and expense recognised in a period should be included in profit or loss forthe period, unless a standard requires or permits otherwise. Items of income and expense that are not recognised in profit or loss but are shown in the statement of profit and loss as âother comprehensive incomeâ include remeasurements of defined benefit plans and fair value gains or (losses) on FVOCI equity instruments and corresponding tax impact thereon. The concept of other comprehensive income did not exist under previous GAAP.
Statement of cash flows:
The transition from IGAAP to Ind AS has not had a material impact on the statement of cash flows.
Mar 31, 2017
NOTE: During the year, the Company has offered equity shares to âQualified Institutional Buyersâ (QIBs) through Qualified Institutions Placement in accordance with Chapter VII of SEBI(Issue of Capital and Disclosure Requirements) Regulations, 2009. Accordingly 28,00,000 equity shares of Rs.10/- each were alloted to QIBs on 28th December, 2016 at an issue price of Rs. 228/- per equity share.(Including premium of Rs.218/- per equity share)
1-(i). The Company has only one class of equity shares having a par value of Rs.10 per share, each shareholder is elligible for one vote per share. The Company declares and pays dividend in Indian Rupees. Dividend Proposed by Board of Directors is subject to approval of Shareholders in the ensuing Annual General Meeting.
2-(ii) In the event of liquidation, the Equity Shareholders are eligible to receive the remaining Assets of the company after Distribution of all Preferential amount, in proportion to Shareholding.
3. Company has not alloted any bonus shares, Shares without consideration in cash and/or bought back any equity shares during the period of five years immediately preceeding the Balance sheet date.
Nature of Security and Term of Repayment for Long Term Secured borrowings
i) Rupee Term Loan and Foreign Currency Term Loan from State Bank of India, EXIM Bank as mentioned above is secured by hypothecation of Air Compressor, Gas Compressor, Work over Rigs and other Misc. Assets and further secured by personal guarantee of Directors and equitable mortgage of immovable properties situated at Ahmedabad held in the name of director. Rupee Term Loan and Foreign Currency Term Loan from HDFC Bank, Indusind Bank and IDFC Bank as mentioned above is secured by hypothecation of Gas Dehydration Units, Gas Compressor and Work over Rig funded by them and further secured by personal guarantee of Directors. Though Rollover Period of Foreign Currency Term Loan is less than 12 Month from the Balance Sheet date, the tenure of Term Loan for which arrangement is made is more than 12 Months. Hence, Foreign Currency Term Loan arrangement is classified as Non-Current Liabilities.
ii) Buyer''s Credits are obtained from overseas branches of State Bank of India, Bank of Baroda and HDFC Bank which are backed by Letter of Undertaking from State Bank of India, Indusind Bank and HDFC Bank who has sanctioned the Term Loans. Though Rollover Period of some of the Buyers credits are less than 12 Month from the Balance Sheet date, the tenure of Term Loan for which arrangement is made is more than 12 Months. Hence, Buyers Credit arrangement is classified as Non-Current Liabilities.
iii) Term Loans of HDFC Bank are repayable in Four and half years, three years and four years with moratorium period of 6 months. Term Loan of State Bank of India and Indusind Bank are repayable in Five years. Term Loan of EXIM Bank is repayable in seven years and Term Loan from IDFC Bank are repayable in three years with moratorium period of 6 months.
E Contingent Liabilities: i. Bank Guarantees
The company has given counter guarantees aggregating to Rs.7133.38 Lakhs (31st March 2016 Rs.5337.32 Lakhs) to banks as at 31st March 2017.
G. Segment Reporting
The Company is not required to give segment wise revenue details and capital employed as Exploration and Production segment has not generated any revenue and the Capital employed for E & P segment is less than 10% of total capital employed of the Company.
H. Impairment of Assets
The carrying amounts of assets are reviewed at each balance sheet date, if there is any indication of impairment based on internal/external factors. An impairment loss will be recognized wherever the carrying amount of an asset exceeds its estimated recoverable amount. The recoverable amount is greater of the assets'' net selling price and value in use. In assessing the value in use the estimated future cash flows are discounted to the present value at the weighted average cost of capital. During the year there are no impairment losses on assets of the Company.
L. Earnings per Share
The earnings considered in ascertaining the Company''s EPS represent profit for the year after tax. Basic EPS is computed and disclosed using the weighted average number of equity shares outstanding during the year.
M. Foreign Currency exposures that are not hedged by derivative instruments as on 31st March 2017 amount to Rs.182.81 Cr (P.Y. Rs.128.33 Cr). The unhedged exposures are naturally hedged by future foreign currency earnings and earnings linked to foreign currency.
N. Disclosure of the details of Specified Bank Notes (SBN) held and transacted during the period from 8th November, 2016 to 30th December, 2016, required as per Notification G.S.R 308 (E) dated 30th March 2017 issued by the Ministry of Corporate Affairs.
O. The previous year figures have been accordingly regrouped/ re-classified to conform to the current year''s classification.
Mar 31, 2015
A Contingent Liabilities:
i. Bank Guarantees
The company has given counter guarantees aggregating to Rs. 1964.44 Lacs
(31st March 2014 Rs. 1962.65 Lacs) to banks as at 31st March, 2015.
B. Segment Reporting
The Company is engaged in the one segment i.e. Oil and Gas service
activity having mainly the domestic hire charges income and there are
no separate reportable segments as per Accounting Standard 17 -
"Segment Reporting" issued by the Council of the Institute of Chartered
Accountants of India.
C. Impairment of Assets
The carrying amounts of assets are reviewed at each balance sheet date,
if there is any indication of impairment based on internal/external
factors. An impairment loss will be recognised wherever the carrying
amount of an asset exceeds its estimated recoverable amount. The
recoverable amount is greater of the assets' net selling price and
value in use. In assessing the value in use the estimated future cash
flows are discounted to the present value at the weighted average cost
of capital. During the year there are no impairment losses on assets of
the Company.
D. The Company during the Financial Year 2013-14 had issued 29,50,000
Convertible Warrants of Rs. 34/- each under Section 81(1A) of the
Companies Act, 1956. Out of these, the Company has received amount of Rs.
9,02,70,000 during the year 2013-14 towards this Convertible Warrants
i.e.against 29,50,000 Convertible Warrants at Rs. 30.60 each. During the
Year 2014-15, the balance of Rs. 3.40/- each was received. On receipt of
full value, 29,50,000 warrants were converted into equity shares and
were issued at Rs. 10/- each with premium of Rs. 24/- each.
E. In compliance of Accounting Standard 22 on "Accounting for taxes on
Income" issued by Institute of Chartered Accountants of India, the
Company has provided Accumulated net deferred tax liability in respect
of timing difference as on 31st March, 2015. The item - wise details of
deferred tax liability as on 31.03.2015 are as under:
F. Current Liability related to Micro, Small and Medium Enterprises
The Company has not received information from vendors regarding their
status under the Micro, Small and Medium Enterprises Development Act,
2006 and hence disclosure relating to amount unpaid to as at year end
together with interest paid /payable under this Act have not been
given. The Company is making efforts to get the confirmation from the
vendors as regards their status under the Act.
G. Foreign Currency exposures that are not hedged by derivative
instruments as on 31st March 2015 amount to Rs.58.21 Cr. The unhedged
exposures are naturally hedged by future foreign currency earnings and
earnings linked to foreign currency.
H. The previous year figures have been accordingly regrouped/
re-classified to conform to the current year's classification.
Mar 31, 2014
NOTE 1: CORPORATE INFORMATION
Deep Industries Limited (DIL) is a well diversified oil & gas company
serving the industry since 1991 with business interests in Air and Gas
compression, Work over, Drilling and Oil & Gas Exploration and
Production. DIL is the first company in India to provide high pressure
Air and Gas compressors on charter hire basis. DIL is the largest
Natural Gas Compression services provider in India and has also
diversified into providing of work-over services to exploration and
production (E&P) players through its fleet of rigs. From its Drilling
to Dispensing plan, DIL has also expanded its arms to Exploration and
Production Business of Oil, Gas and Coal Bed Methane.
1-(i). The Company has only one class of equity shares having a par
value of Rs. 10 per share, each shareholder is elligible for
one vote per share. The Company delcares and pays dividend in Indian
Rupees. Dividend Proposed by Board of Directors is subject to approval
of Shareholders in the ensuing Annual General Meeting. 6-(ii) In the
event of liquidation, the Equity Sharesholders are eligible to
receive the remaining Assets of the company after Distribution of
all Preferential amount, in proportion to Shareholding.
2. Company has not alloted any bonus shares, Shares without
consideration in cash and/or bought back any equity shares
during the priod of five years immediately preceeding the Balance sheet
date.
Nature of Security and Term of Repayment for Long Term Secured
borrowings
i) Rupee Term Loan and Foreign Currency Term Loan from State Bank of
India, IDBI Bank, EXIM Bank and Indusind Bank as mentioned above is
secured by hypothecation of Air Compressor, Gas Compressor, Work over
Rigs and other Misc. Assets and further secured by personal guarantee
of Directors and equitable mortgage of immovable properties situated at
Ahmedabad held in the name of director and relative of director. Though
Rollover Period of Foreign Currency Term Loan is less than 12 Month
from the Balance Sheet date, the tenure of Term Loan for which
arrangement is made is more than 12 Months. Hence, Foreign Currency
Term Loan arrangement is classified as Non-Current Liabilities.
ii) Buyer''s Credits are obtained from overseas branches of State Bank
of India and Bank of Baroda which are backed by Letter of Undertaking
from State Bank of India, IDBI Bank and Indusind Bank who has
sanctioned the Term Loans. Though Rollover Period of one of the Buyers
credit is less than 12 Month from the Balance Sheet date, the tenure of
Term Loan for which arrangement is made is more than 12 Months. Hence,
Buyers Credit arrangement is classified as Non-Current Liabilities.
iii) Repayment of Term Loan of State Bank of India and Indusind Bank
are repayable in Five years. Term Loan of EXIM Bank and IDBI Bank are
repayable in Seven years with moratorium period as stated here in
above.
v Vehicle Loan from Bank and Other Financial Institution 2
(Secured by Hypothecation of Vehicles and Personal Gurantee of
Directors) * - (Working Capital cash credit facilities of State Bank of
India is secured by Hypothecation of Inventory and Book Debt and
Further secured by Personal Gurantee of Director and Equitable Mortgage
of Immovable property situated at Ahmedabad held in the name of
Directors and Relative of Directors. - (Working Capital Facility of
IDBI is secured by Second Charge on Secutiries as mentioned in
hereinabove).
E Contingent Liabilities:
i. Bank Guarantees
The company has given counter guarantees aggregating to Rs. 1962.65
Lacs(31st March 2013 Rs. 1849.82 Lacs) to banks as at 31st March 2014.
ii. Other Contingent Liabilities not provided for
Name of Statute Amount (Rs Lacs) Amount (Rs Lacs)
31.03.2014 31.03.2013
Service tax 146.27 96.36
G. Segment Reporting
The Company is engaged in the one segment i.e. Oil and Gas service
activity having mainly the domestic hire charges income and there are
no separate reportable segments as per Accounting Standard 17 -
"Segment Reporting" issued by the Council of the Institute of Chartered
Accountants of India.
H. Impairment of Assets
The carrying amounts of assets are reviewed at each balance sheet date,
if there is any indication of impairment based on internal/external
factors. An impairment loss will be recognised wherever the carrying
amount of an asset exceeds its estimated recoverable amount. The
recoverable amount is greater of the assets'' net selling price and
value in use. In assessing the value in use the estimated future cash
flows are discounted to the present value at the weighted average cost
of capital. During the year there are no impairment losses on assets of
the Company.
I. The Company during the Financial Year has issued 29,50,000
Convertible Warrants of Rs. 34/- each under Section 81(1A) of the
Companies Act, 1956. Out of these, the Company has received amount of Rs.
9,02,70,000 during the year towards this Convertible Warrants i.e.
against 29,50,000 Convertible Warrants at Rs. 30.60 each. These
Convertible Warrants carry a right/entitlement to subscribe up to a
future date, not exceeding 18 months from the date of such issue to
equivalent number of equity shares of the Company at a price of Rs.34/-
per share having the face value of Rs. 10/- each and at a premium of Rs.
24/- per equity share.
J. As per Accounting Standard - 18, the disclosures of transactions
with the related parties as defined in the Accounting Standard are
given below:
(i) List of related parties where control exists and related parties,
with whom transactions have taken place and relationships
Subsidiary Company :
Deep Energy LLC, USA
Deep Natural Resources Limited
Deep Global PTE. LTD.
Prabha Energy Pvt. Ltd.
Enterprises significantly influenced by KMP or RKMP :
Deep Methane Private Limited
Adinath Exim Resources Limited
Key Management Personnel :
Mr. Paras Savla
Mr. Rupesh Savla
Mr. Dharen Savla
Mr. Premsingh Sawhney
Mr. Ajaykumar Singhania
Mr. Vijay Shah
Mr. Harish Bhinde
Relative of Key Management Personnel (RKMP) :
Mr. Kirit Joshi
Mr. Manoj Savla
Mrs. Avani Savla
Mrs. Mita Manoj Savla
Mrs. Priti Paras Savla
K. In compliance of Accounting Standard 22 on "Accounting for taxes on
Income" issued by Institute of Chartered Accountants of India, the
Company has provided Accumulated net deferred tax liability in respect
of timing difference as on 31st March, 2014. The item - wise details of
deferred tax liability as on 31.03.2014 are as under:
L. Earnings per Share
The earnings considered in ascertaining the Company''s EPS represent
profit for the year after tax. Basic EPS is computed and disclosed
using the weighted average number of equity shares outstanding during
the year.
M. Current Liability related to Micro, Small and Medium Enterprises
The Company has not received information from vendors regarding their
status under the Micro, Small and Medium Enterprises Development Act,
2006 and hence disclosure relating to amount unpaid to as at year end
together with interest paid /payable under this Act have not been
given. The Company is making efforts to get the confirmation from the
vendors as regards their status under the Act.
N. Foreign Currency exposures that are not hedged by derivative
instruments as on 31st March 2014 amount to Rs. 58.97 Cr. The unhedged
exposures are naturally hedged by future foreign currency earnings and
or earnings linked to foreign currency.
O. The previous year figures have been accordingly regrouped/
re-classified to conform to the current year''s classification.
Mar 31, 2013
NOTE 1: CORPORATE INFORMATION
Deep Industries Limited (DIL) is a well diversified oil & gas company
serving the industry since 1991 with business interests in Air and Gas
compression, Work over, Drilling and Oil & Gas Exploration and
Production. DIL is the first company in India to provide high pressure
Air and Gas compressors on charter hire basis. DIL is the largest
Natural Gas Compression services provider in India and has also
diversified into providing of work-over services to exploration and
production (E&P) players through its fleet of rigs. From its Drilling
to Dispensing plan, DIL has also expanded its arms to Exploration and
Production Business of Oil, Gas and Coal Bed Methane.
A Contingent Liabilities:
i. Bank Guarantees
The company has given counter guarantees aggregating to Rs. 1849.82
Lacs(31st March 2012 Rs. 1730.22 Lacs) to banks as at 31st March 2013.
ii. Other Contingent Liabilities not provided for;
Name of Statute Amount (Rs. Lacs) Amount (Rs. Lacs)
31.03.2013 31.03.2012
Service tax 96.36 69.22
B. Segment Reporting
The Company is engaged in the one segment i.e. Oil and Gas service
activity having mainly the domestic hire charges income and there are
no separate reportable segments as per Accounting Standard 17 -
"Segment Reporting" issued by the Council of the Institute of Chartered
Accountants of India.
C. Impairment of Assets
The carrying amounts of assets are reviewed at each balance sheet date,
if there is any indication of impairment based on internal/external
factors. An impairment loss will be recognised wherever the carrying
amount of an asset exceeds its estimated recoverable amount. The
recoverable amount is greater of the assets'' net selling price and
value in use. In assessing the value in use the estimated future cash
flows are discounted to the present value at the weighted average cost
of capital. During the year there are no impairment losses on assets of
the Company.
D. The Company during the Financial Year has received Rs. 7,83,75,000/-
towards the balance value on 13,75,000 Convertible Warrants which were
issued during the financial year 2011-12. The said allottees have made
full payment for 13,75,000 warrants i.e. Rs. 76 each. On full payment of
13,75,000 warrant, the said allottees have exercised their option of
conversion of Warrants to equity shares on 30.03.2013. On conversion on
30.03.2013, Rs. 1,37,50,000 is transferred to Issued Capital being issue
of 13,75,000 equity shares of Rs. 10/- each and Rs. 9,07,50,000/- is
transferred to Securities Premium account being Share premium of Rs. 66/-
each.
E. As per Accounting Standard - 18, the disclosures of transactions
with the related parties as defined in the Accounting Standard are
given below:
(i) List of related parties where control exists and related parties,
with whom transactions have taken place and relationships
Subsidiary Company Deep Energy LLC, USA
Deep Natural Resources Limited Prabha Energy Pvt. Ltd.
Enterprises significantly influenced by KMP or RKMP Deep Methane
Private Limited
Adinath Exim Resources Limited Shree Kuchhi Jain Sewa Samaj
Key Management Personnel Mr. Paras Savla
Mr. Rupesh Savla Mr. Dharen Savla Mr. Premsingh Sawhney Mr. Ajaykumar
Singhania Mr. Vijay Shah Mr. Harish Bhinde Mr. Kirit Joshi
Relative of Key Management Personnel (RKMP) Mr. Manoj Savla
Mrs. Avani Savla Mrs. Mita Manoj Savla Mrs. Priti Paras Savla Mrs.
Shital Rupesh Savla
F. Current Liability related to Micro, Small and Medium Enterprises
The Company has not received information from vendors regarding their
status under the Micro, Small and Medium Enterprises Development Act,
2006 and hence disclosure relating to amount unpaid to as at year end
together with interest paid /payable under this Act have not been
given.
The Company is making efforts to get the confirmation from the vendors
as regards their status under the Act. N. The previous year figures
have been accordingly regrouped/ re-classified to conform to the
current year''s classification.
Mar 31, 2012
NOTE 1: CORPORATE INFORMATION
Deep Industries Limited (DIL) is a well diversified oil & gas company
serving the industry since 1991 with business interests in Air and Gas
compression, Work over, Drilling and Oil & Gas Exploration and
Production. DIL is the first company in India to provide high pressure
Air and Gas compressors on charter hire basis. DIL is the largest
Natural Gas Compression services provider in India and has also
diversified into providing of work-over services to exploration and
production (E&P) players through its fleet of rigs. From its Drilling
to Dispensing plan, DIL has also expanded its arms to Exploration and
Production Business of Oil, Gas and Coal Bed Methane.
TERMS AND RIGHTS ATTACHED TO WARRANTS:
(During the year 27,50,000 Shares Warrants issued at price of 76 each
of which 13,75,000 warrant fully paid up ( 76 each) converted in to
Equity Shares. Balance 13,75,000 Warrant of 76 each paid up 19 Each is
pending for Allotment.
The offer is made selectively to the Promoters and Relatives of Prmoters
Group of the Company.
The Warrants carry a right / entitlement to subscribe up to a future
date, not exceeding 18 months from the date of such issue to equivalent
number of equity shares of the Company at a price of 76/- per share
having the face value of 10/ - each and at a premium of 66/- per equity
share.
The Equity Shares arising out of such conversion shall be allotted on
the Conversion Date and thereupon the Warrants shall be treated as
automatically extinguished. The Equity Shares so allotted shall rank
pari passu in all respects with the existing shares of the Company and
eligible for dividend, if any declared by the Company from time to
time. The name of the Warrant holder shall be entered into the Register
of Members of the Company as the holder of the Equity Shares upon such
allotment.
Warrant holders will not be entitled to any of the rights and
privileges available to the shareholders including the right to receive
notices of or to attend and vote at the General Meetings.
The Warrants are issued only in physical mode and will not be
dematerialized.
The Warrants shall not be tradable nor be listed on any of the stock
exchanges.
If the allottee of warrant does not opt for conversion and does not
make balance payment within 18 months, the amount paid on application
and allotment will be forfeited.
The amount payable on application shall be 19/- per convertible warrant
and the balance amount of 57/- shall be payable within 18 months from
the date of allotment.
Money Received towards convertible warrants have been been utilized for
the projects of the company.
2-(i). The Company has only one class of equity shares having a par
value of 10 per share, each shareholder is elligible for one vote per
share. The Company delcares and pays dividend in Indian Rupees.
Dividend Proposed by Board of Directors is subject to approval of
Shareholders in the ensuing Annual General Meeting.
2-(ii) In the event of liquidation, the Equity Sharesholders are
eligible to receive the remaining Assets of the company after
Distribution of all Preferential amount, in proportion to Shareholding.
3. Company has not alloted any bonus shares, Shares without
consideration in cash and/or bought back any equity shares during the
priod of five years immediately preceeding the Balance sheet date.
Nature of Security and Term of Repayment for Long Term Secured
borrowings
i) Rupee Term Loan and Foreign Currency Term Loan from State Bank of
India as mentioned above is secured by hypothecation of Air Compressor,
Gas Compressor, Work over Rigs and other Misc. Assets and further
secured by personal guarantee of Directors and equitable mortgage of
immovable properties situated at Ahmedabad and Modasa held in the name
of director and relative of director. Though Rollover Period of Foreign
Currency Term Loan is less than 12 Month from the Balance Sheet date,
the tenure of Term Loan for which arrangement is made is more than 12
Months. Hence, Foreign Currency Term Loan arrangement is classified as
Non-Current Liabilities.
ii) Buyer s Credits are obtained from overseas branches of State Bank
of India which are backed by Letter of Undertaking from State Bank of
India, Commercial Branch, Ahmedabad which has sanctioned the Term Loan.
Though Rollover Period of Buyers credit is lessthan 12 Month from the
Balance Sheet date, the tenure of Term Loan for which arrangement is
made is more than 12 Months. Hence, Buyers Credit arrangement is
classified as Non-Current Liabilities.
iii) During the year, Company has availed Foreign Currency Term Loan
credit facility from Export Import Bank of India (EXIM Bank),
Moratorium Period provided by the Bank for a period of 18 Months from
08/09/2011 .The Term Loan is secured by Pari Passu charge on the
securities as mentioned in para i above. As Installment is Due after
31/03/2013 (after 12 Month from Balance sheet) it is classified as
Non-Current Liabilities.
iv) During the year, Company has availed Term Loan credit facility from
Industrial Development Bank of India Ltd. (IDBI Bank) with Moratorium
Period provided by the Bank for a period of 18 Months from 1st
Disbursement i.e.17/02/2012. IDBI Term Loan is secured by Pari Passu
charge on the securities as mentioned in para i & iii above. As
Installment is Due after 31/03/2013 (after 12 Month from Balance sheet)
it is classified as Non-Current Liabilities.
v) Repayment of Term Loan of State Bank of India are repayable in Five
years. Term Loan of EXIM Bank and IDBI Bank are repayable in Seven
years with moratorium period as stated here in above.
A Contingent Liabilities:
i. Bank Guarantees
The company has given counter guarantees aggregating to 1730.22 Lacs
(31st March 2011 1767.31 Lacs) to banks as at 31st March 2012.
ii. Other Contingent Liabilities not provided for;
Name of Statute Amount (Lacs) Amount (Lacs)
31.03.2012 31.03.2011
Service tax 69.22 4.35
B. Segment Reporting
The Company is engaged in the one segment i.e. Oil and Gas service
activity having mainly the domestic hire charges income and there are
no separate reportable segments as per Accounting Standard 17 -
"Segment Reporting" issued by the Council of the Institute of
Chartered Accountants of India.
C. Impairment of Assets
The carrying amounts of assets are reviewed at each balance sheet date,
if there is any indication of impairment based on internal/external
factors. An impairment loss will be recognised wherever the carrying
amount of an asset exceeds its estimated recoverable amount. The
recoverable amount is greater of the assets net selling price and value
in use. In assessing the value in use the estimated future cash flows
are discounted to the present value at the weighted average cost of
capital. During the year there are no impairment losses on assets of
the Company.
D. The Company during the Financial Year has received 13,06,25,000/-
towards value of 27,50,000 Convertible Warrants issued during previous
year at 76 each. The said allottees have made full payment for
13,75,000 warrants i.e. 76 each. For balance 13,75,000 warrants the
said allottees have made payment of 19 each (application money). On
full payment of 13,75,000 warrant, the said allottees have exercised
the option of conversion to equity shares on 28.03.2012. On conversion
1,37,50,000 is transferred to Issued Capital being issue of 13,75,000
equity shares of 10/- each and 9,07,50,000/- is transferred to Share
Premium account being Share premium of 66/- each.
E. Earnings per Share
The earnings considered in ascertaining the Company s EPS represent
profit for the year after tax. Basic EPS is computed and disclosed
using the weighted average number of equity shares outstanding during
the year.
Calculation of EPS
F. Current Liability related to Micro, Small and Medium Enterprises
The Company has not received information from vendors regarding their
status under the Micro, Small and Medium Enterprises Development Act,
2006 and hence disclosure relating to amount unpaid to as at year end
together with interest paid /payable under this Act have not been
given.
The Company is making efforts to get the confirmation from the vendors
as regards their status under the Act.
G. The Company prepares and represents its financial statements as per
Schedule VI to the Companies Act,1956 as applicable to it from time to
time. In view of revision to the Schedule VI as per notification issue
during the year by the Central Government, the financial statements for
the financial year ended 31st March ,2012 have been prepared as per the
requirements of the Revised Schedule VI to the Companies Act, 1956. The
previous year figures have been accordingly regrouped/ re-classified to
conform to the current year s classification.
Mar 31, 2011
A. In the opinion of the board, the current assets, loans and advances
are approximately of the value stated if realized in the ordinary
course of business. The provision for all known liabilities are
adequate and not in excess of the amount reasonably necessary.
B. Other Information pursuant to paragraphs 3, 4, 4A, 4B and 4D of
Para-II of the Schedule VI is given as under so far as applicable to
the Company.
(a) The Company has not employed any person drawing remuneration of
Rs.5,00,000/- per month or more or Rs.60,00,000/ - per annum.
C. Considering nature of activity it is not possible to ascertain the
elements of Capital Commitment Expenditure to be executed on capital
account.
D. Contingent Liabilities: i. Bank Guarantees
The company has given counter guarantees aggregating to Rs. 1072.70
Lacs(31st March 2010 Rs. 1767.31 Lacs) to banks as at 31st March 2011.
ii. Other Contingent Liabilities not provided for;
Name of Statute Amount (Rs. Lacs) Amount (Rs. Lacs)
31.03.2011 31.03.2010
Income Tax Act 0.00 58.95
Service tax 4.35 4.35
E. Figures are rounded off to the nearest rupee and the previous year
figures are regrouped wherever necessary.
F. Segment Reporting
The Company is engaged in the service activity i.e. service activity
related to oil and gas operations having mainly domestic income and
there are no separate reportable primary and secondary segments as per
Accounting Standard 17 - ÃSegment Reportingà issued by the Council of
the Institute of Chartered Accountants of India.
G. Impairment of Assets
The carrying amounts of assets are reviewed at each balance sheet date,
if there is any indication of impairment based on internal/external
factors. An impairment loss will be recognised wherever the carrying
amount of an asset exceeds its estimated recoverable amount. The
recoverable amount is greater of the assetsà net selling price and
value in use. In assessing the value in use the estimated future cash
flows are discounted to the present value at the weighted average cost
of capital. During the year there are no impairment losses on assets of
the Company.
H. The Company during the Financial Year has received Rs. 9,78,75,000/-
being balance 75% value of 22,50,000 Convertible Warrants issued during
previous year. The said allottees on full payment of warrant have
exercised the option of conversion to equity shares on 17.01.2011. On
conversion Rs. 2,25,00,000 is transferred to Issued Capital being issue
of 22,50,000 equity shares of Rs. 10/- each and Rs. 10,80,00,000/- is
transferred to Share Premium account being Share premium of Rs. 48/-
per share.
The Company upto 31st March 2011, has utilized the total amount of Rs.
20,30,00,000/- received on the preferential allotment towards the
capital projects for which the preferential warrants were issued.
I. As per Accounting Standard - 18, the disclosures of transactions
with the related parties as defined in the Accounting Standard are
given below:
(i) List of related parties where control exists and related parties,
with whom transactions have taken place and relationships
Subsidiary Company
Deep Energy LLC, USA
Deep Natural Resources Limited
Prabha Energy Private Limited
Enterprises significantly influenced by KMP or RKMP
Deep Methane Private Limited
Smt. Prabhaben Kantilal Velji Savla Charitable Trust
Prabhaben Shantilal Savla Charitable Trust
Key Management Personnel
Mr. Paras Savla Mr. Rupesh Savla Mr. Dharen Savla Mr. Prabodh Baruah
Mr. Vijay Shah Mr. Harish Bhinde
Relative of Key Management Personnel (RKMP)
Mr. Manoj Savla Mrs. Mita M. Savla Mrs. Priti P. Savla Mrs. Sheetal R.
Savla Mrs. Avani Savla
J. Current Liability related to Micro, Small and Medium Enterprises
The Company has not received information from vendors regarding their
status under the Micro, Small and Medium Enterprises Development Act,
2006 and hence disclosure relating to amount unpaid to as at year end
together with interest paid /payable under this Act have not been
given.
The Company is making efforts to get the confirmation from the vendors
as regards their status under the Act.
Mar 31, 2010
A. In the opinion of the board, the current assets, loans and advances
are approximately of the value stated if realized in the ordinary
course of business. The provision for all known liabilities are
adequate and not in excess of the amount reasonably necessary.
B. Other Information pursuant to paragraphs 3, 4, 4A, 4B and 4D of
Para-ll of the Schedule VI is given as under so far as applicable to
the Company.
(a) The Company has not employed any person drawing remuneration of
Rs.2,00,000/- per month or more or Rs. 24,00,000/- per annum.
(b) As the Company is engaged in providing services there is no
manufacturing activity carried out and information in respect of
installed capacity, production capacity, raw. material consumption,
opening and closing stock of goods produced and consumption of
indigenous and imported raw materials and spares thereof and turnover
of goods produced is not
given.
C. Considering nature of activity it is not possible to ascertain the
elements of Capital Commitment Expenditure to be executed on capital
account.
D. Contingent Liabilities: . i. Bank Guarantees
The company has given counter guarantees aggregating to Rs. 1767.31
Lacs(31st March 2009 Rs. 1182.17 Lacs) to banks as at 31st March 2010.
ii. Other Contingent Liabilities not provided for;
Name of Statute Amount (Rs. Lacs) Amount (Rs. Lacs)
31.03.2010 31.03.2009
Income Tax Act 58.95 38.20
Service tax 4.35 0.0
E. Figures are rounded off to the nearest rupee and the previous year
figures are regrouped wherever necessary.
F. Segment Reporting
The Company is engaged in the service activity having mainly the
domestic hire charges income and there are no separate reportable
segments as per Accounting Standard 17 - "Segment Reporting" issued by
the Council of the Institute of Chartered Accountants of India.
G. Impairment of Assets
The carrying amounts of assets are reviewed at each balance sheet date,
if there is any indication of impairment based on internal/external
factors. An impairment loss will be recognised wherever the carrying
amount of an asset exceeds its estimated recoverable amount. The
recoverable amount is greater of the assets net selling price and
value in use. In assessing the value in use the estimated future cash
flows are discounted to the present value at the weighted average cost
of capital. During the year there are no impairment losses on assets of
the Company.
H. The Company had issued 20,00,000 Convertible Warrants of Rs. 200/-
aggregating Rs. 40,00,00,000/- and had received Rs. 4,00,00,000/- at
the time of allotment on 31st January 2008 being Rs. 20/- per
Convertible Warrants. On option exercise by the allottee for forfeiture
and /or on due date on non receipt of balance amount, the amount of Rs.
4,00,00,000/- has been forfeited and are transferred to Capital
Reserve- Preferential Warrant Forfeiture account.
I. The Company during the Financial Year has issued 35,00,000
Convertible Warrants of Rs. 58/- each aggregating to Rs.
20,30,00,000/- and has received Rs. 5,07,5Q,000/-being 25% value of
said Convertible Warrants. The said Convertible Warrants were allotted
on 11* August 2009. Further on 12,50,000 convertible warrants, the
company has received balance consideration of Rs. 5,43,75,000
aggregating to total value of Rs.7,25,00,000/-. The said allottee on
full payment of warrant have exercised the option of conversion to
equity shares. On conversion Rs. 1,25,00,000 is transferred to Issued
Capital being issue of 12,50,000 equity shares of Rs. 10/- each and Rs.
6,00,00,000 is transferred to Share Premium account being Share premium
of Rs. 48/- each.
The company has utilized Rs. 9,30,93,799/- towards the capital projects
for which the preferential warrants were issued.
J In compliance of Accounting Standard 22 on "Accounting for taxes on
Income" issued by Institute of Chartered Accountants of India, the
Company has provided Accumulated net deferred tax liability in respect
of timing difference as on 31 st March, 2010. The item - wise details
of deferred tax liability as on 31.03.2010 are as under:
K. Earnings per Share
The earnings considered in ascertaining the Companys EPS represent
profit for the year after tax. Basic EPS is computed and disclosed
using the weighted average number of equity shares outstanding during
the year.
L. Current Liability related to Micro, Small and Medium Enterprises
The Company has not received information from vendors regarding their
status under the Micro, Small and Medium Enterprises Development Act,
,2006 and hence disclosure relating to amount unpaid to as at year end
together with interest paid /payable under this Act have not been
given.
The Company is making efforts to get the confirmation from the vendors
as regards their status under the Act.
M. Information pursuant to the provision of part IV of SCHEDULE VI to
the Companies Act, 1956. Balance sheet abstract and Companys general
business profile.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article
More Information on Deep Energy Resources Ltd.
-
Deep Energy Resources Ltd. Tools
- Bulk Deals
- Block Deals
-
Deep Energy Resources Ltd. Company Details
- Company Profile
- Company History
- Management Team
- Capital Structure
- Product Mix
- Banker/Auditor/Registrar
-
Company History
- BSE Price History
- NSE Price History
-
Deep Energy Resources Ltd. Key Financial Ratios
- Ratios
-
Deep Energy Resources Ltd. Results
- Quarterly Results
- Half Yearly Results
- Nine Months Results
- Annual Results
-
Deep Energy Resources Ltd. Financial Data
- Audited Results
- Cash Flow
- Balance Sheet
-
Deep Energy Resources Ltd. Reports
- Accounting Policies
- Auditors Report
- Directors Report
- Notes To Account
-
Deep Energy Resources Ltd. Corporate Announcements
- Book Closure
- Dividend
- Board Meetings
- Change of Name
-
FY26 Market Review: Inside Nifty-Sensex's Sharpest Yearly Crash Since COVID; What's Next For Investors? -
Intraday Stocks To Buy Today, March 27: Top Picks By Anand James of Geojit Investments On Friday -
Indian equities open higher as Nifty tops 23,100 and Sensex climbs over 700 points -
Intraday Stocks To Buy Today, March 25: Top Picks By Anand James of Geojit Investments On Wednesday
-
Stock Market Today: Nifty Closes Near 23,000, Sensex Up 1.8%: IndiGo, L&T, Eternal, Asian Paints Top Gainers -
Steel Stock Gains 5.14% On Getting NCLT Nod For Key Merger; Do You Own? -
Stock Market Opens Strong: Nifty Up 1.5%, Sensex Rallies 1,516 Pts; Rupee Recovers as Trump Delays Iran Strike -
D-Street Mayhem: Rs 15 Lakh Cr Wiped Out As Nifty-Sensex Close 2.5% Lower, Rupee In Free-Fall Amid Iran-US War -
Indian equities outlook today as Bank Nifty remains weak and Nifty tests support -
Stock Market Crash: Sensex, Nifty Hit 1-Year Low; How US-Israel-Iran War Wiped Out Rs 4,753,333 Crore -
Intraday Stocks To Buy Today, March 23: Top Picks By Anand James of Geojit Investments On Monday
-
Nifty, Sensex Down 8% Amid Iran-US War, Crude Oil At Sky High: How Past Geopolitical Crises Have Shaped Market -
Stock Market Weekly Wrap: Sensex, Nifty End In Green Amid Iran-US War, Crude Surge, Rupee Slide -
Nifty Falls as Global Cues Persist and Gulf Tensions Weigh on Indian Markets -
Intraday Stocks To Buy Today, March 20: Top Picks By Anand James of Geojit Investments On Friday
-
Nifty, Sensex Stage Sharp Rebound After Biggest Crash; IT Stocks in Green | Why Is Stock Market Rising Today?
-
Block for 8 hours
-
Block for 12 hours
-
Block for 24 hours
-
Don't block
Sign in with Google- Male
- Female
- Others
- Under 18
- 18 to 25
- 26 to 35
- 36 to 45
- 45 to 55
- 55+