Jun 30, 2010
IOL Netcom Limited (formerly known as IOL Broadband Ltd.) was
incorporated on 18th February 1985. The Company is licensed to provide
Internet Services (ISP) & Internet Protocol Television (IPTV) Services.
1. Contingent Liabilities not provided for:
Guarantees given by the Companys bankers on behalf of the Company
amount to Rs.384 Lacs (P.Y. Rs. 384 Lacs)
Claims against the Company not acknowledged as debt are as under:
Name of the Claimant Amount (Rs. in Lacs) Status
Current Previous
Year Year
M/s Supreme
Telecommunications Ltd. 1,634.90 1,634.90 Under Arbitration
M/s B G Broadband Networks
India Pvt. Ltd. 2,301.44 2,301.44 Counter claim
under arbitration
M/s Dishnet Wireless Ltd. 35.18 35.18 Under Arbitration
Bharti Airtel 56.30 56.30 Under Arbitration
Indus Media Communications
Ltd. 2.33 2.33 -
Notice of show cause from
Service 454.27 467.88 -
Tax Department
TOTAL 4,484.42 4,498.03
2. The Company has not provided interest of Rs. 138.47 lacs (P.Y. Rs.
31.33 lacs) and Rs. 104 lacs (P.Y. Rs. 102 lacs) on delay in payment of
statutory liabilities relating to Tax Deducted at Source and Service
Tax respectively till June 2010. In view of the above, the accumulated
losses and loss for the year are understated by 138.47 lacs and 31.33
lacs respectively and outstanding liabilities are understated by the
same amount.
3. The Company has sent written notices to certain debtors and is in
the process of taking legal action against the same. Further, there are
some debit and credit balances that are subject to confirmation.
However, the management is of the opinion that the realizable value of
the above debtors is not less than the value stated in the Balance
Sheet and accordingly no provision is considered necessary.
The assessment for A.Y. 2006-07, 2007-08, & 2008-09 have erosion out of
section 144 assessment and are contested in appeals before the CIT
(Appeals) and the ITAT.
4. The Company has converted 750000 zero coupan unsecured fully
convertible debentures of the face value of Rs. 100/- each to
20,38,043 equity shares of Rs. 10/- each @ 36.80, price calculated as
per SEBI (ICDR) Regulations, on December 29, 2009 which is compulsory
convertible on or after Sept 30, 2009. We have given undertaking to
exchange for share holder approval for delay in allotment.
5. The Authorized Capital is Rs. 70, 00, 00,000/- divided into 7,
00,00,000 of shares of Rs. 10 each in period 2008- 09, It was
proposed.to increase the Authorized Capital. How ever, the same was
shown erroneously in the last Balance Sheet 2008-09.
6. Employee Benefits
- Defined Contribution Plan: Amount recognized as expenses Rs.15.21
Lacs for the year ended 31s1 March, 2009.
- Defined Benefit Plan: During the year the company has not contributed
to Defined Benefit Plan.
7. Segment Reporting
During the year the Company has operated in only one business segment
and one geographic segment. Henee, in the opinion of the management,
segment reporting is not considered as applicable.
8. Related party disclosures as required by AS-18 "Related Party
Transactions" are given as below:
Name Relationship
Key Managerial Personnel
Name Designation
Mr. Siddhartha Srivastava President
Mr. A. S. Oberoi Whole Time Director
9. In view of current and unabsorbed depreciation and losses, in the
opinion of the management, no provision for tax is considered
necessary.
10. In the opinion of the management, the realizable value of current
assets including sundry debtors, loan and advances is not less than the
value at which they are stated in the balance sheet, in the ordinary
course of business.
11. The purchase & sale of software & broadcasting rights cannot be
expressed in generic unit. Hence, it is not possible to give
quantitative details of the same as required under Para 3 of Part II of
Schedule VI to the Companies Act, 1956.
12. Micro, Small and Medium Enterprises Development Act, 2006
The management is currently in the process of identifying enterprises
which have been provided goods and services to the company which
qualify under the definition of medium and small enterprises as defined
under Micro, Small and Medium Enterprises Development Act, 2006.
Accordingly, the disclosure in respect of the amount payable to such
Micro, Small, and Medium enterprises as at 31st March 2009 has not been
made in the financial statements. However, in view of the management,
the impact of interest, if any, that may be payable in accordance with
the provisions of the Act is not expected to be material.
13. Previous years figures have been regrouped and / or rearranged
wherever necessary to conform to current years classification.
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