Mar 31, 2015
(A) Terms attached to Equity and Preference Shares
(I) The company has equity shares having a face 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.
(ii) During the year ended March 31, 2015, the Company issued 30,00,000
(thirty lacs)(previous year 50,00,000) 11% Non- convertible,
cumulative, redeemable preference shares(NCRPS) of Rs.10/- each fully
paid up. The NCRPS holder shall have a right to vote on resolution
placed before the Company which directly affect the rights attached to
his preference share only, and any resolution for the winding up of the
Company or repayment or reduction of its equity or preference share
capital, provided that where the dividend is not paid for two or more
years such class of NCRPS holders shall have right to vote on all
resolutions placed before the Company. The NCRPS shall be redeemed by
the Company at par on expiry of 13 years from the date of allotment, or
on the request of NCRPS holders, which ever is earlier. The dividend
proposed by the Board of Directors is subject to the approval of the
shareholders in the ensuing Annual General Meeting.
(iii) During the year ended March 31,2015, the Company issued 9,00,000
11% Optionally Convertible, Cumulative, Redeemable Preference Shares of
the face value of Rs.10/- each for cash at par. On November 10, 2015,
4,30,000 (four lacs thirty thousand) 11% Optionally Convertible
Cumulative Redeemable preference shares were converted into equity
shares. The equity shares so alloted on conversion are subject to
lock-in for a period of 3 years from the date of trading approval or as
required under ICDR Regulations. The outstanding balance in this class
of shares as on March 31,2015 is 4,70,000 (four lacs seventy thousand)
shares. The said shares are convertible into equity shares (ranking
pari passu to the existing equity shares of the Company) at the option
of the allotees in one or more tranches at any time after allotment
within a period of eighteen months. If the allotees do not opt for
conversion within the said period of 18 months, then the said shares
shall be redeemable at par at the end of 20 years from the date of
allotment or earlier on the terms and conditions as may be deemed fit
by the Board of Directors of the Company, subject to the approval of
the regulatory authorities wherever applicable.
During the year ended March 31, 2015, the Company has received share
application money of Rs.40 lacs which will be utilised to issue
4,00,000 (four lacs) 11% Non-convertible, cumulative, redeemable
preference shares(NCPRS) of Rs.10/- each at par.
(a) The vehicle loan - non current maturity Rs. Nil (previous year Rs.
40 lacs) is taken from Kotak Mahindra Prime Ltd against refinance of
existing motor vehicles owned by the company. This loan carries an
interest of 18.08% p.a. and is payable in 24 installments along with
interest from the date of the loan. The period of maturity w.r.t.
balance sheet date is with EMI of Rs.1.08 lacs each for seven month.
(b) Fixed deposits from related parties carry interest @ 11% to 11.75%
p.a.(Previous Year 11% to 11.75% p.a.) and are repayable after 3 years
from the respective dates of deposit.
( c) Fixed deposits from shareholders and others carry interest ranging
from 11% to 11.75% p.a.(Previous Year 11% to 11.75% p.a.) and are
repayable after 2 years and 3 years from the respective dates of
deposit.
(a) Working capital loan from banks is secured by hypothecation of
current assets and all movables, both present and future and with a
collateral charge on immovable and movable properties. The loan carries
interest at 7% p.a. in State Bank of India and 5.10% p.a. in
Corporation Bank above Bank Rate(BR), present effective rate being 17%
p.a. and 15.35% p.a. respectively.
(b) The tenor of inter-corporate deposits is 90 days and carry interest
@16.50% p.a. and 17% p.a.
(c) Unsecured loan from "related party" is an interest free loan w.e.f.
January 1,2014.
* There is no amount due and outstanding as at Balance Sheet date to be
credited to Investor Education and Protection Fund.
Investment in subsidiary, Shurjo Energy Pvt. Ltd
a) The company's subsidiary Shurjo Energy Pvt. Ltd. (SEPL) has been
manufacturing solar panels, an industry currently in a challenging
situation worldwide. As at March 31, 2014, the accumulated losses in
SEPL have exceeded its net worth by Rs.426.57 lacs. The company is
actively pursuing the revival of it's subsidiary Shurjo Energy Pvt.
Ltd.(SEPL) by diversifying its activities. Towards this end, the
company has applied to Falta Special Economic Zone for removing the 100
% E.O.U. status to facilitate the diversification. Company is also
exploring the induction of a strategic investor for trading in power
back up systems and lead smelting activity. It is of the opinion that
losses suffered during the initial years by SEPL are temporary in
nature and no provision for diminution in the value of investment of
Rs. 785.66 lacs is considered necessary at this juncture. Also the
loans and advances of Rs.655.45 lacs due from SEPL as at the balance
sheet date are considered as fully recoverable.
Investment in subsidiary, PAE Renewables Pvt. Ltd.
b) The company holds long term investment of Rs.1176.00 lacs in PAE
Renewables Private Limited ('PAER') which in turn has invested in its
step down wholly owned subsidiary Sovox Renewables Private Limited
('SRPL'). During the year PAE Renewables Pte Limited, wholly owned
subsidiary of PAER has entered into MOU for sale of its investment in
SRPL. The management is of the opinion that, loss arising out of the
sale transaction and the impact of it on PAER investment is not
ascertainable. The same will be considered and the necessary affect
will be given on completion of the sale transaction of shares.
(a) Loans and advances to subsidiaries is for the purpose of meeting
the working capital requirement of the subsidiares. During the year,
the company has not charged any interest on these loans and advances.
(b) Loans and advances in the nature of Loans and advances/ICD given to
subsidiaries and associates and firms/companies in which directors are
interested.
During the current year, PAE Renewables Pte. Ltd.(PAER Pte), a step
down subsidiary of PAE Limited has entered into an MOU for the sale of
its investment in Sovox Renewables Pvt Ltd.(SRPL), which is step down
subsidiary of PAER Pte. Amount received by SRPL towards the sale
consideration has been utilised to repay the loans and advances given
by PAE Limited to the extent of Rs.653.31 lacs. The balance amount of
Rs.186.89 lacs represents the unrecoverable portion of the loans and
advances written off in the statement of profit & loss and included
under exceptional items.
2 Leases
Disclosure as required by Accounting Standard 19, "Leases", issued by
the Institute of Chartered Accountants of India, are given below:
a Where the company is a lessee:
The company has taken various office and godown premises under leave
and licence agreements. These are not non cancellable and range between
11 months and 5 years under leave and licence and are renewable by
mutual concent on mutually agreeable terms. The company has given
refundable interest free security deposits under certain agreements.
Amounts paid during the year under such agreements are Rs.61.05 lacs
(previous year Rs.87.42 lacs) and are recognised in the statement of
profit and loss account under "Rent" Note no.27.
b Where company is a lessor:
The company has given its own office and residential premises under
leave and licence agreements. These are not non cancellable and range
between 11 months and 5 years under leave and licence and are renewable
by mutual concent on mutually agreeable terms. The company has taken
refundable interest free security deposits under certain agreements.
Amounts received during the year under such agreements are Rs.6.42
lacs(previous year Rs.29.79 lacs) and are recognised in the statement
of profit and loss account under 'Rent Income' in Note no. 22.
3 Segment information
The company has only one reportable segment, namely "Power Products",
hence segment disclosure under Accounting Standard -17 (AS-17) is not
required.
4 Related Party Disclosure as per AS-18
A Particulars of subsidiary companies
Shurjo Energy Pvt. Limited PAE Renewables Pvt. Ltd.
(Formerly known as Sky Naturenergy Pvt. Ltd.)
PAE Infrastructure Pvt. Ltd.
Sovox Renewables Pvt. Ltd.
PAE Renewables Pte Ltd.,
Singapore Sovox Renewables Pte. Ltd., Singapore
B Particulars of Enterprises controlled by any person described as Key
Management Personnel:
Name of the related party Nature of relationship
Rajubai Investment Pvt. Ltd.
Assure Insurance Advisors Pvt. Ltd. Controlled through key management
personnel
Arvind R. Doshi HUF Pritam
A.Doshi HUF
C Key Management Personnel:
Name of related party Nature of relationship
Mr. Arvind R. Doshi Chairman
Mr. Pritam A. Doshi Managing Director & Head Finance
D Relatives of Key Management Personnel:
Name of relatives Nature of relationship
Mrs. Pratibha A. Doshi Wife of Mr. Arvind R. Doshi
Ms. Priyadarshani A. Doshi Daughter of Mr. Arvind R. Doshi
Mrs. Sohini P. Doshi Wife of Mr. Pritam A. Doshi
Master Viraj P. Doshi Son of Mr. Pritam A. Doshi
Baby Nitya P. Doshi Daughter of Mr. Pritam A. Doshi
5 Contingent liabilities
a Accrued dividend on 11% Non Convertible Redeemable Preference Shares
is Rs.60.63 lacs (previous year Rs.14.16 lacs) and on 11% Optionally
Convertible, Cumulative, Redeemable Preference Shares is Rs.3.23 lacs
(previous year nil). b Disputed sales tax demand of Rs.131.50 lacs
(previous year Rs.114.27 lacs). The management has been adviced that
there will be no liability arising on this account.
c Counter indemnities given by the company in respect of guarantees
issued by the bank Rs.3.78 lacs (prevoius year Rs.36.93 lacs).
d The company has given a corporate guarantee to a bank for Rs. Nil and
Rs.125 lacs for secured loans availed by its subsidiary namely, Shurjo
Energy Pvt Ltd and PAE Renewables Pvt. Ltd (previous year Rs.350 lacs &
Rs.125 lacs for secured loan availed by its subsidiary Shurjo Energy
Pvt. Ltd. and PAE Renewables Pvt Ltd respectively.) e Provision for
Warranties
As per AS-29, Provisions, Contingent Liabilities and Contingent Assets,
issued by the Institute of Chartered Accountants of India, given below
are the movements in the warranty provision account:
(Rsin lacs)
March 31, 2015 March 31, 2014
At the beginning of the year 90.99 94.18
Provision for warranty made
during the year 77.57 55.65
Utilised during the year (54.89) (58.84)
Closing provision for warranty
as at the end of the year 113.67 90.99
This information regarding Micro, Small and Medium Enterprises has been
determined to the extent such parties have been identified on the basis
of information available with the company. This has been relied upon by
the auditors.
6 The management and Board of Directors of the company have initiated
various steps like cost reduction, identifying non core assets for
monetisation, which will improve the cash flows. Further, steps are
also being taken to evaluate various alternatives for raising funds and
resolution of debts. The Board of Directors expects improvement in the
business results in the forthcoming years. Accordingly, the financial
statements have been prepared on going concern basis.
7 Others
Figures of the previous year have been regrouped and recast wherever
necessary.
Mar 31, 2014
1 Leases:
Disclosure as required by Accounting Standard 19, "Leases", issued by
the Institute of Chartered Accountants of India, are given below:
a Where the company is a lessee:
The company has taken various office and godown premises under leave
and licence agreements. These are not non cancellable and range between
11 months and 5 years under leave and licence and are renewable by
mutual concent on mutually agreeable terms. The company has given
refundable interest free security deposits under certain agreements.
Amounts paid during the year under such agreements are Rs. 87.42 lacs
(previous year Rs.102.60 lacs) and are recognised in the statement of
profit and loss account under "Rent" Note no.26. b Where company is a
lessor:
The company has given its own office and residential premises under
leave and licence agreements. These are not non cancellable and range
between 11 months and 5 years under leave and licence and are renewable
by mutual concent on mutually agreeable terms. The company has taken
refundable interest free security deposits under certain agreements.
Amounts received during the year under such agreements are Rs. 29.79
lacs(previous year Rs.15.95 lacs) and are recognised in the statement of
profit and loss account under ''Rent Income'' in Note no. 21.
2 Segment Information:
The company has defined its business segments as Power Products, Other
Auto Products and Solar Products, taking into account the nature of
products, and differential risks and returns.
As per the Accounting Standard 17 on ''Segment Reporting'' issued by the
Institute of Chartered Accountants of India, the segment disclosures
are as follows:
The assets and liabilities of the company not being specifically
identifiable with a particular segment, cost related thereto and other
common expenses have been shown as unallocated items. Operating income
not identifiable with a particular segment has been disclosed as
unallocated.
3 Related Party Disclosure as per AS-18:
A Particulars of subsidiary companies
Shurjo Energy Pvt. Limited PAE Renewables Pvt. Ltd.
(Formerly known as Sky Naturenergy Pvt. Ltd. )
PAE Infrastructure Pvt. Ltd.
Sovox Renewables Pvt. Ltd.
PAE Renewables Pte Ltd., Singapore
Sovox Renewables Pte. Ltd.,Singapore
B Particulars of Enterprises controlled by any person described as Key
Management Personnel:
Name of the related party Nature of relationship
Rajubai Investment Pvt. Ltd.
Assure Insurance Advisors Pvt. Ltd. Controlled through key management
personnel
Arvind R. Doshi HUF
Pritam A. Doshi HUF
C Key Management Personnel:
Name of related party Nature of relationship
Mr. Arvind R. Doshi Executive Chairman
Mr. Pritam A. Doshi Managing Director
D Relavtives of Key Management Personnel:
Name of relatives Nature of relationship
Mrs. Pratibha A. Doshi Wife of Mr. Arvind R. Doshi
Ms. Priyadarshani A. Doshi Daughter of Mr. Arvind R. Doshi
Mrs. Sohini P. Doshi Wife of Mr. Pritam A. Doshi
Master Viraj P. Doshi Son of Mr. Pritam A. Doshi
Baby Nitya P. Doshi Daughter of Mr. Pritam A. Doshi
4 Contingent liabilities:
a Disputed sales tax demand of Rs. 114.27 lacs (previous year Rs. 112.71
lacs). The management has been adviced that there will be no liability
arising on this account.
b Counter indemnities given by the company in respect of guarantees
issued by the bank Rs. 36.93 lacs (prevoius year Rs. 48.14 lacs).
c The company has given a corporate guarantee to a bank for Rs. 350 lacs
and Rs. 125 lacs for sercured loans availed by its subsidiary namely,
Shurjo Energy Pvt Ltd and PAE Renewables Pvt. Ltd (previous year Rs. 350
lacs & Rs. 100 lacs for secured loan availed by its subsidiary Shurjo
Energy Pvt. Ltd. and PAE Renewables Pvt Ltd respectively.)
5 Investment in subsidiary, Shurjo Energy Pvt. Ltd
The company''s subsidiary Shurjo Energy Pvt. Ltd. (SEPL) has been
manufacturing solar panels, an industry currently in a challenging
situation worldwide. As at March 31, 2014, the accumulated losses in
SEPL have exceeded its net worth by Rs. 309.58 lacs. The company is
actively pursuing the revival of it''s subsidiary Shurjo Energy Pvt.
Ltd.(SEPL) by diversifying its activities. Towards this end, the
company has applied to Falta Special Economic Zone for removing the
100% E.O.U. status to facilitate the diversification. Company is also
exploring the induction of a strategic investor for trading in power
back up systems and lead smelting activity. It is of the opinion that
losses suffered during the initial years by SEPL are temporary in
nature and no provision for diminution in the value of investment of Rs.
785.66 lacs is considered necessary at this juncture. Also the loans
and advances of Rs. 717.30 lacs due from SEPL as at the balance sheet
date are considered as fully recoverable.
This information regarding Micro, Small and Medium Enterprises has been
determined to the extent such parties have been identified on the basis
of information available with the company. This has been relied upon by
the auditors.
Mar 31, 2013
1 Leases:
Disclosure as required by Accounting Standard 19, "Leases", issued by
the Institute of Chartered Accountants of India, are given below:
a Where the Company is a lessee:
The company has taken various office and godown premises under leave
and licence agreements. These are not non cancellable and range between
11 months and 5 years under leave and licence and are renewable by
mutual consent on mutually agreeable terms. The company has given
refundable interest free security deposits under certain agreements.
Amounts paid during the year under such agreements are Rs. 102.60 lacs
(previous year Rs. 111.19 lacs) and are recognised in the statement of
profit and loss under "Rent" Note no.26.
b Where company is a lessor:
The company has given its own office and residential premises under
leave and licence agreements. These are not non cancellable and range
between 11 months and 5 years under leave and licence and are renewable
by mutual consent on mutually agreeable terms. The company has taken
refundable interest free security deposits under certain agreements.
Amounts received during the year under such agreements are Rs. 15.95 lacs
(previous year Rs. 47.08 lacs) and are recognised in the statement of
profit and loss under ''Rent Income'' in Note no. 21.
2 Segment information:
The company has defined its business segments as Power products, other
auto products and solar products, taking into account the nature of
products, and differential risks and returns.
As per the Accounting Standard 17 on ''Segment Reporting'' issued by the
Institute of Chartered Accountants of India, the segment disclosures
are as follows:
3 Related party disclosure as per AS-18 A Particulars of Subsidiary
Companies
Shurjo Energy Pvt. Limited
PAE Renewables Pvt. Ltd.
(Formerly known as Sky Naturenergy Pvt. Ltd. )
PAE Infrastructure Pvt. Ltd.
Sovox Renewables Pvt. Ltd.
PAE Renewables Pte Ltd., Singapore
Sovox Renewables Pte. Ltd., Singapore
B Particulars of Enterprises controlled by any person described as Key
Management Personnel:
Name of the related party
Rajubai Investment Pvt. Ltd. Assure Insurance Advisors Pvt. Lt Arvind
R. Doshi HUF Pritam A. Doshi HUF
C Key Management Personnel: Name of related party
Shri Arvind R. Doshi Shri Pritam A. Doshi
4 Contingent liabilities:
a Disputed sales tax demand of Rs. 112.71 lacs (previous year Rs. 58.18
lacs). The management has been adviced that there will be no liability
arising on this account. b Estimated tax liability Rs. Nil (previous
year Rs. Nil). c Counter indemnities given by the company in respect of
guarantees issued by the bank Rs. 48.14 lacs (prevoius year Rs. 91.96
lacs). d The company has given a corporate guarantee to a bank of Rs.
350 lacs and Rs. 100 lacs for sercured loan availed by its subsidiary,
Shurjo Energy Pvt. Ltd. and PAE Renewables Pvt. Ltd respectively
(previous year Rs. 350 lacs and Rs. 100 lacs for secured loan availed by
its subsidiary Shurjo Energy Pvt. Ltd. and PAE Renewables Pvt Ltd
respectively.)
5 Investment in subsidiaries:
a During the year, the company subscribed to Nil equity shares
(previous year 2,27,85,178) for a total consideration of Rs. Nil
(previous year Rs. 227.85 lacs) in Shurjo Energy Pvt. Ltd. thereby
increasing its stake to Nil% (previous year 85% in the company w.e.f.
1st October, 2011). The company is engaged in manufacturing of solar
photovoltaic panels using CIGS technology.
b During the year, the company subscribed to 46,00,000 equity shares
(previous year 46,75,000) of Rs. 10/- each for a total consideration of Rs.
460 lacs (previous year Rs. 467.75 lacs) in PAE Renewables Pvt. Ltd. PAE
Renewables Pvt. Ltd. is a 100% subsidiary of PAE Limited and is engaged
in the business to design, install, sell and service renewable energy
solutions of small and medium sizes in India.
c During the year, the company subscribed to Nil equity shares
(previous year 3,52,000) of Rs. 10/- each for a total consideration of Rs.
Nil (previous year 35.20) in PAE Infrastructure Pvt. Ltd. PAE
Infrastructure Pvt. Ltd. is a 100% subsidiary of PAE Limited.
d The company''s subsidiary Shurjo Energy Pvt. Ltd. (SEPL) has been
manufacturing solar panels, an industry currently in a challenging
situation worldwide. As at March 31, 2013, the accumulated losses in
SEPL have exceeded its net worth by Rs. 216.74 lacs. The management has
plans to diversify the activities of SEPL by introduction of trading in
power back up systems to Original Equipment customers and is of the
opinion that lossess sufferred during the initial years by SEPL are
temporary in nature. In view of this, and also taking into
consideration the company''s long term, strategic investment in SEPL, no
provision for diminution in the value of investment of Rs. 785.66 lacs is
considered necessary. Also the loans and advances of Rs. 1296.62 lacs due
from SEPL as at the balance sheet date are considered as fully
recoverable.
6 In accordance with Accounting Standard 11, the exchange loss debited
to profit and loss account is Rs. 25.84 lacs (previous year Rs. 19.92
lacs).
7 Others
a In the year 2008-09 the company had filed a petition in the High
Court of Mumbai for interest charged under section 234B of the Income
Tax Act, 1961 against order passed by the settlement commision for A.Y.
1993-94, 1994-95 and 1996-97. Pending High Court Order, no adjustments
have been made in respect of tax provision against these years.
b Figures of the previous year have been regrouped and recast wherever
necessary.
Mar 31, 2012
(a) Terms/rights attached to equity shares
The company has only one class of equity shares having a face value of
Rs.10 per share. Each holder of equity shares is entitled to one vote per
share. The company declares and pays dividends in Indian rupees.
(b) During the year, Rs. 92 lacs was taken as loans against refinance of
existing motor vehicles owned by the company from Kotak Mahindra Prime
Ltd. This loan carries an interest of 19.467% p.a., and is payable in
36 installments, alongwith interest from the date of the loan. The
period of maturity w.r.t. balance sheet date is 2 years and 4 months
with EMI of Rs.4.49 lacs for 4 months, Rs. 3.31 lacs for 12 months and Rs.
1.82 lacs for 12 months respectively.
(c) Fixed deposits from related parties carry interest @11% to 11.75%
p.a.(previous year 10.50% to 11.25% p.a.) and are repayble after 3
years from the respective dates of deposit.
(d) Fixed deposits from shareholders and others carry interest ranging
from 11% to 11.75% p.a.(previous year 10.50% to 11.25% p.a.) and are
repayble after 2 years and 3 years from the respective dates of
deposit.
(e) During the year, unsecured loan of Rs.60 lacs was taken from Kotak
Mahindra Bank, which carries interest @ 9.50% p.a. and is repayable in
24 installments. The period of maturity w.r.t. balance sheet date is 1
year and 5 months with EMI of Rs.4.35 lacs for 1 month, Rs. 2.94 lacs for 8
months and Rs.1.50 lacs for 8 months.
(a) Working capital loan from banks is secured by hypothecation of
current assets and all movables, both present and future and with a
collateral charge on immovable and movable properties. The working
capital from banks carries interest of @15.75% and 16.15% p.a.
(b) Inter-corporate deposits are having a tenure of 90 days to 120 days
and carry interest @13.50% to 17.75% p.a.
(c) Fixed deposits from others and shareholders carry interest ranging
from 10% to 10.75% p.a.(previous year 10% to 10.25% p.a.).
(a) Margin money deposits with maturity of less than I upto three
months is against letter of credit and bank guarantees.
(b) Margin money deposits with maturity more than three months and upto
12 months is against bank guarantees.
(c) Deposits with maturity of more than three months and upto 12 months
of Rs. 54 lacs (Previous Year Rs. 54 lacs) is kept as collateral against
cash credit limits with banks.
1 Leases:
Disclosure as required by Accounting Standard 19, "Leases", issued by
the Institute of Chartered Accountants of India, are given below:
a Where the company is a lessee:
The company has taken various office and godown premises under leave
and licence agreements. These are not non cancellable and range between
11 months and 5 years under leave and licence and are renewable by
mutual concent on mutually agreeable terms. The company has given
refundable interest free security deposits under certain agreements.
Amounts paid during the year under such agreements are Rs. 111.19 lacs
(previous year Rs. 88.87 lacs) and are recognized in the statement of
profit and loss under "Rent" Note no.28.
b Where company is a lessor:
The company has given its own office and residential premises under
leave and licence agreements. These are not non cancellable and range
between 11 months and 5 years under leave and licence and are renewable
by mutual concent on mutually agreeable terms. The company has taken
refundable interest free security deposits under certain agreements.
Amounts received during the year under such agreements are Rs. 47.08
lacs(previous year Rs. 45.29 lacs) and are recognized in the statement of
profit and loss under 'Rent Income' in Note no. 22.
2 Contingent liabilities
a Disputed sales tax demand of Rs. 58.18 lacs (previous year Rs. 34.15
lacs). The management has been adviced that there will be no liability
arising on this account.
b Estimated tax liability Nil (previous year Nil).
c Counter indemnities given by the company in respect of guarantees
issued by the bank Rs.91.96 lacs (previous year Rs.157.29lacs).
d The company has given a corporate guarantee to a bank of Rs.350 lacs
and Rs.100 lacs for sercured loan availed by its subsidiary, Shurjo
Energy Private Limited and PAE Renewables Private Limited respectively
(previous year Rs. 350 lacs for secured loan availed by its subsidiary
Shurjo Energy Private Limited).
3 Investment in subsidiaries
a During the year, the company subscribed to 2,27,85,178 equity shares
(previous year 29,71,474) for a total consideration of Rs. 227.85 lacs
(previous year Rs. 51.00 lacs) in Shurjo Energy Private Limited thereby
increasing its stake to 85% in the company w.e.f. October 1, 2011. The
company is engaged in manufacturing of solar photovoltaic panels using
CIGS technology.
b During the year, the company subscribed to 23,00,000 equity shares of
Rs.10/- each at par on June 6, 2011 and 23,75,000 equity shares of Rs.10/-
each at premium of Rs.10/- each on September 13,2011 (previous year
1,00,000) ofRs. 10/- each for a total consideration of Rs.467.75 lacs
(previous yearRs. 10 lacs) in PAE Renewables Private Limited, PAE
Renewables Private Limited is a 100% subsidiary of PAE Limited and is
engaged in the business to design, install, sell and service renewable
energy solutions of small and medium sizes in India.
c During the year, the company subscribed to 3,52,000 equity shares
(previous year nil) of Rs.10/- each for a total consideration of Rs.35.20
lacs (previous year nil) in PAE Infrastructure Pvt. Ltd. PAE
Infrastructure Pvt. Ltd. is a 100% subsidiary of PAE Limited.
d The company has reviewed the value of long term investment made in
its subsidiary, Shurjo Energy Pvt. Ltd. Inspite of the accumulated
losses in the said subsidiary, the management is of the opinion that
there is no permanent diminution in the value of investment, after
taking into consideration the change in the business policy to be
pursued in the ensuing years.
4 Dues to micro and small enterprises
There are no amounts overdue and remaining unpaid for 30 days on
account of principal and/or over due interest at the close of the year
to micro, small and medium enterprises, as defined under'Micro Small
and Medium Enterprises Development Act, 2006. This information regarding
Micro, Small and Medium Enterprises has been determined to the extent
such parties have been identified on the basis of information available
with the company. This has been relied upon by the auditors.
5 Derivative instruments and unhedged foreign currency exposure
a In accordance with Accounting Standard 11, the exchange loss debited
to statement of profit and loss is Rs.19.92(previous year Rs.15.60 lacs).
Premium in respect of forward contracts to be debited to subsequent
years's statement of profit and loss is Nil (previous year Rs. 18.49
lacs).
b Disclosure in relation to derivative instruments for hedging foreign
currency risk for secured loans:
6 Others:
a In the year 2008-09 the company had filed a petition in the High
Court of Mumbai for interest charged under section 234B of the Income
Tax Act, 1961 against order passed by the settlement commission for A.Y.
1993-94, 1994-95 and 1996-97. Pending High Court order, no adjustments
have been made in respect of tax provision against these years.
b Till the year ended March 31, 2011, the company was using pre-revised
Schedule VI to the Companies Act 1956, for the preparation and
presentation of its financial statements. During the year ended March
31, 2012, the revised Schedule VI notified under the Companies Act, 1956
has become applicable to the company. The company has reclassified
previous year figures to conform to this year's classification. The
adoption of revised Schedule VI does not impact recognition and
measurement principles followed for preparation of financial
statements, particularly presentation of balance sheet.
Mar 31, 2011
1. Contingent liabilities not provided for in respect of:
a. Disputed Sales Tax demand of Rs.34.15 lacs (Previous year Rs.56.87
lacs). The management has been advised that there will be no liability
arising on this account.
b. Estimated tax liability Nil (Previous year Nil).
c. Counter indemnities given by the Company in respect of guarantees
issued by the bank Rs. 157.29 lacs(Previous year Rs.6.14 lacs).
d. The Company has given a corporate guarantee to a bank of Rs.350
lacs for secured loan availed by its subsidiary, Shurjo Energy Pvt.
Ltd.
2. a) During the year, the Company subscribed to 29,71,474 equity
shares (previous year 95,75,437) for a total consideration of Rs.51.00
lacs (previous year Rs.331.21 lacs) in Shurjo Energy Pvt. Ltd. thereby
increasing its stake to 70% in the company w.e.f. October 25, 2010.
The company is engaged in manufacturing of solar photovoltaic panels
using CIGS technology.
b) During the year, the Company subscribed to 1,00,000 equity shares
(previous year 10,000) of Rs.10/- each for a total consideration of Rs.
10 lacs (previous year Rs. 1 lac) in PAE Renewables Pvt. Ltd. PAE
Renewables Pvt. Ltd. is a 100% subsidiary of PAE Limited and is engaged
in the business to design, install, sell and service renewable energy
solutions of small and medium sizes in India.
4. There are no amounts overdue and remaining unpaid for 30 days on
account of principal and /or over due interest at the close of the year
to micro, small and medium enterprises, as defined under "Micro, Small
and Medium Enterprises Development Act, 2006". This information
regarding Micro, Small and Medium Enterprises has been determined to
the extent such parties have been identified on the basis of
information available with the Company. This has been relied upon by
the auditors.
5 (b) Computation of net profit for commission payable to the Directors
in accordance with Section 198 of the Companies Act, 1956
i) Remuneration paid to Executive Chairman is in accordance with the
approval granted by the Ministry of Corporate Affairs, The Government
of lndia vide its letter dated December 27, 2010.
ii) Due to inadequecy of profit remuneration paid to the Managing
Director is the minimum remuneration based on the effective capital of
the company as prescribed under Schedule XIII of the said Act.
9. (i) In accordance with Accounting Standard 11, the exchange loss
debited to Profits Loss Account is Rs. 15.60 lacs (previous year Rs.
1.02 lacs). Premium in respect of Forward Exchange Contracts to be
debited to subsequent years Profit and Loss account is Rs.18.49 lacs
(Previous year Rs.0.37 lacs).
12. The company has defined its business segments as Lead Acid Storage
Batteries, Power Backup Systems, Other Auto Products and Solar Products
taking into account the nature of the products, and differential risks
and returns.
The assets and liabilities of the company not being specifically
identifiable with a particular segment, costs related thereto and other
common expenses have been shown as unallocated items Operating income
not identifiable with a particular segment has been disclosed as
unallocated.
13. Disclosure as required by Accounting Standard 19, "Leases", issued
by the lnstitute of Chartered Accountants of India, are given below:
(a) Where the Company is a lessee:
The Company has taken various office and god own premises under leave
and licence agreements. These are not non cancellable and range between
11 months and 5 years under leave and licence and are renewable by
mutual consent on mutually agreeable terms. The Company has given
refundable interest free security deposits under certain agreements.
Amounts paid during the year under such agreements are Rs.88.87 lacs
(previous year Rs.78.18 lacs) and are recognised in the Profit and Loss
Account under Rent in Schedule M.
(b) Where the Company is a lessor:
The Company has given its own office and residential premises under
leave and licence agreements. These are not non cancellable and range
between 11 months and 5 years under leave and licence and are renewable
by mutual consent on mutually agreeable terms. The Company has taken
refundable interest free security deposits under certain agreements.
Amounts received during the year under such agreements are Rs.45.29
lacs (previous year Rs.39 82 lacs) and are recognised in the Profit and
Loss Account under Rent Income in Scheduled.
14. In accordance with AS-22, Accounting for Taxes on Income, Deferred
Tax Liability as at March 31,2011 is Rs.5.25 lacs.
15. Related Party Disclosure as per AS-18:
A. Particulars of Subsidiary Companies
Shurjo Energy Pvt. Limited
PAE Renewables Pvt. Ltd.
(Formerly known as Sky Naturenergy Pvt. Ltd.)
B. Particulars of Enterprises controlled by any person described as
Key Management Personnel:
Name of the Related Party Nature of Relationship
Raiubai Investment Pvt. Ltd. }
Assure Insurance Advisors Pvt. Ltd. } Controlled through
key management personnel
Arvind R Doshi HUF }
Pritam A Doshi HUF }
C. Key Management Personnel:
Name of Related Party Nature of Relationship
Shri Arvind R. Doshi Executive Chairman
Shri Pritam A. Doshi Managing Director
D. Relatives of Key Management Personnel:
Name of Relatives Nature of Relationship
Smt. Pratibha A. Doshi Wife of Shri Arvind R. Doshi
Ms. Priyadarshani A. Doshi Daughter of Shri Arvind R. Doshi
Smt. Sohini P. Doshi Wife of Shri Pritam A. Doshi
Master Viraj P. Doshi Son of Shri Pritam A. Doshi
Baby Nitya P. Doshi Daughter of Shri Pritam A. Doshi
17. In the year 2008-09 the Company had filed a petition in the High
Court of Mumbai for interest charged under section 234B of the Income
Tax Act, 1961 against order passed by the settlement commission for
A.Y. 1993-94, 1994-95 and 1996-97. Pending High Court Order, no
adjustments have been made in respect of tax provision against these
years.
18. Previous year figures have been re-grouped/reclassified wherever
necessary.
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