Notes to Accounts of Paramount Communications Ltd.
Mar 31, 2023
Provisions and contingencies Provisions
Provisions are recognised when the Company has a present
obligation (legal or constructive) as a result of a past event, it
is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation. If the
effect of the time value of money is material, provisions are
discounted using equivalent period government securities
interest rate. Unwinding of the discount is recognised in the
Statement of Profit and Loss as a finance cost. Provisions
are reviewed at each balance sheet date and are adjusted to
reflect the current best estimate.
Contingent liabilities are disclosed when there is a possible
obligation arising from past events, the existence of which
will be confirmed only by the occurrence or non-occurrence
of one or more uncertain future events not wholly within
the control of the Company or a present obligation that
arises from past events where it is either not probable that
an outflow of resources will be required to settle or a reliable
estimate of the amount cannot be made. Information on
contingent liability is disclosed in the Notes to the Financial
Statements. Contingent assets are not recognised. However,
when the realisation of income is virtually certain, then
the related asset is no longer a contingent asset, but it is
recognised as an asset.
The Company, as a lessee, recognises a right-of-use asset and
a lease liability for its leasing arrangements, if the contract
conveys the right to control the use of an identified asset.
The contract conveys the right to control the use of an
identified asset, if it involves the use of an identified asset
and the Company has substantially all of the economic
benefits from use of the asset and has right to direct the use
of the identified asset. The cost of the right-of-use asset shall
comprise of the amount of the initial measurement of the lease
liability adjusted for any lease payments made at or before
the commencement date plus any initial direct costs incurred.
The right-of-use assets is subsequently measured at cost less
any accumulated depreciation, accumulated impairment
losses, if any and adjusted for any re-measurement of the
lease liability. The right-of-use assets is depreciated using
the straight-line method the commencement date over the
shorter of lease term or useful life of right-of-use asset.
The Company measures the lease liability at the present value
of the lease payments that are not paid at the commencement
date of the lease. The lease payments are discounted using
the interest rate implicit in the lease, if that rate can be readily
determined. If that rate cannot be readily determined, the
Company uses incremental borrowing rate.
The lease liability is subsequently remeasured by increasing
the carrying amount to reflect interest on the lease liability,
reducing the carrying amount to reflect the lease payments
made and remeasuring the carrying amount to reflect
any reassessment or lease modifications. The Company
recognises the amount of the re-measurement of lease
liability as an adjustment to the right-of-use asset. Where
the carrying amount of the right-of-use asset is reduced to
zero and there is a further reduction in the measurement of
the lease liability, the Company recognises any remaining
amount of the re-measurement in statement of profit and
loss.
For short-term and low value leases, the Company recognises
the lease payments as an operating expense on a straight-line
basis over the lease term.
For a lease modification or termination, the lessee shall
account for the remeasurement of lease liability by
a) Decreasing the carrying amount of the right of use
assets to reflect the partial or full termination for
lease modification or lease termination. The lessee
shall recognise any profit and loss on the partial or full
termination of the lease in the statement of profit and
loss account.
b) Making a corresponding adjustment to the right of use
assets for all other modifications.
3.16 Current /non-current classification
The Company presents assets and liabilities in statement
of financial position based on current/non-current
classification.
The Company has presented non-current assets and current
assets before equity, non-current liabilities and current
liabilities in accordance with Schedule III, Division II of
Companies Act, 2013 notified by MCA.
An asset is classified as current when it is:
a) Expected to be realised or intended to be sold or
consumed in normal operating cycle,
b) Held primarily for the purpose of trading,
c) Expected to be realised 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 classified as 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.
The operating cycle is the time between the acquisition of
assets for processing and their realisation in cash or cash
equivalents.
Deferred tax assets and liabilities are classified as non-current
assets and liabilities.
Government Grant Government grants with a condition to
purchase, construct or otherwise acquire long-term assets
are initially measured based on grant receivable under the
scheme. Such grants are recognised in the Statement of
Profit and Loss on a systematic basis over the useful life of
the asset. Amount of benefits receivable in excess of grant
income accrued based on usage of the assets is accounted as
Government grant received in advance. Changes in estimates
are recognised prospectively over the remaining life
of the assets.
The company has option to present the government grant
related to fixed assets by deducting the grant from the
carrying value of the asset and to present the non-monetary
grant at a nominal amount. The company has not availed this
option in current financial year.
Grants from the government are recognised at their fair value
where there is a reasonable assurance that the grant will
be received and the company will comply with all attached
condition.
Government revenue grants relating to income are deferred
and recognised in the Statement of Profit and Loss over the
period necessary to match them with the costs that they are
intended to compensate.
3.18 Recent accounting pronouncements
Ministry of Corporate Affairs (âMCAâ) notifies new standards
or amendments to the existing standards under Companies
(Indian Accounting Standard) Rules as issued from time
to time. On March 31, 2023, MCA amended the Companies
(Indian Accounting Standard) Amendments Rules, 2023, as
below:
Ind AS -1 Presentation of Financial Statements - This
amendment requires the entities to disclose their material
accounting policies rather than their significant accounting
policies. The effective date of adoption of this amendment
is annual periods beginning on or after April 1, 2023. The
Company has evaluated the amendments and the impact of
the amendment is insignificant in the standalone financial
statements.
Ind AS - 8 Accounting Policies, Changes in Accounting
Estimates and Errors - This amendment has introduced
a definition of ''Accounting Estimatesâ and included
amendments to Ind AS 8 to help entities distinguish changes
in accounting policies from changes in accounting estimates.
The effective date for adoption of this amendments is annual
periods beginning on or after April 1, 2023. The Company has
evaluated the amendments and there is no impact on its
standalone financial statements.
Ind AS 12-Income Taxes-This amendment has narrowed the
scope of initial recognition exemption so that it does not
apply to transactions that give rise to equal and offsetting
temporary differences. The effective date for adoption of this
amendment is annual periods beginning on or after April 1,
2023.The Company has evaluated the amendment and there
is no impact on its standalone financial statement.
4. CRITICAL ACCOUNTING ESTIMATES, ASSUMPTIONS AND
JUDGEMENTS
In the process of applying the Companyâs accounting policies,
management has made the following estimates,assumptions
and judgements, which have significant effect on the amounts
recognised in the financial statement:
(a) Property, plant and equipment
External adviser and internal technical team assess the
remaining useful lives and residual value of property,
plant and equipment. Management believes that the
assigned useful lives and residual value are reasonable,
the estimates and assumptions made to determine their
carrying value and related depreciation are critical to
the Companyâs financial position and performance.
Management judgment is required for the calculation
of provision for income taxes and deferred tax assets
and liabilities. The Company reviews at each balance
sheet date the carrying amount of deferred tax assets.
The factors used in estimates may differ from actual
outcome which could lead to significant adjustment to
the amounts reported in the financial statements.
Management judgement is required for estimating
the possible outflow of resources, if any, in respect of
contingencies/claim/litigations against the Company
as it is not possible to predict the outcome of pending
matters with accuracy.
(d) Allowance for uncollected accounts receivable and
advances
Trade receivables do not carry any interest and are
stated at their normal value as reduced by appropriate
allowances for estimated irrecoverable amounts.
Individual trade receivables are written off when
management deems them not to be collectible.
Impairment is made on the expected credit losses,
which are the present value of the cash shortfall over the
expected life of the financial assets.
(e) Fair valuation of Financial Assets and Liabilities
When the fair value of financial assets and financial
liabilities recorded in the balance sheet cannot be
measured based on quoted prices in active markets,
their fair value is measured using valuation techniques
including the Discounted Cash Flow (DCF) model.
The input to these models are taken from observable
markets where possible, but where this is not feasible,
a degree of judgement is required in establishing fair
value. Judgements include consideration of input
such as liquidity risk, credit risk and volatility. Changes
in assumptions about these factors could affect the
reported fair value of financial instruments.
The cost of the defined benefit plan and other post¬
employment benefits and the present value of such
obligation are determined using actuarial valuations. An
actuarial valuation involves making various assumptions
that may differ from actual developments in future.
These includes the determination of the discount rate,
future salary increases, mortality rates and attrition
rate. Due to the complexities involved in the valuation
and its long-term nature, a defined benefit obligation
is highly sensitive to changes in these assumptions. All
assumptions are reviewed at each reporting date.
Mar 31, 2018
1. CRITICAL ACCOUNTING ESTIMATES, ASSUMPTIONS AND JUDGEMENTS
In the process of applying the Company''s accounting policies, management has made the following estimates, assumptions and judgments, which have significant effect on the amounts recognized in the financial statement:
(a) Property, plant and equipment
External adviser and internal technical team assess the remaining useful lives and residual value of
Note:-
1) Property, plant and equipment is hypothecated for long term borrowings from banks/Assets Reconstruction Company.(Refer note no. 20)
2) The impact of change in depreciation for 2016-17 due to change in life result in lower depreciation byRS, 13,391,952. (Refer Note 49)
3) The Company has elected to measure the items of Property, Plant and Equipment at their value on date of transition. (Refer note no 49)
4) Title deeds of factory land measuring 3,108.72 sq. mtr.at Prahladpur, Bawana Road, Delhi of RS, 60,417,500 are yet to be registered/transferred in the name of company
5) The Company has capitalized such exchange fluctuation to Property, Plant and Equipment. ( Refer Note no 47)
General reserve represents the statutory reserve, this is in accordance with Indian corporate law wherein a portion of profit is apportioned to General Reserve. Under Companies Act 1956 it was mandatory to transfer amount before a company can declare dividend. However under Companies Act 2013 transfer of any amount to General Reserve is at the discretion of the company.
Securities Premium Reserve represents the amount received in excess of par value of securities (equity share, preference shares and debentures). Premium on redemption of securities is accounted in security premium available. Where security premium is not available, premium on redemption of securities is accounted in statement of Profit and Loss. section 52 of Companies Act 2013 specify restriction and utilization of security premium.
Capital Reserve represents project subsidy from State Government.
Nature of Security :-
Term Loan from Banks/Securitization and Assets Reconstruction Company (ARC)
Term loans from banks/Securitization and Assets Reconstruction Company (ARC) are secured by 1st pari-passu charge on present and future fixed assets of the company and 2nd pari-passu charge on present and future current assets of the Company. Further they are secured through collateral by way of 2nd charge on a property owned by a Corporate, personal guarantees of Mr. Sanjay Agawam and Mr. Sandeep Agawam, Directors of the Company and pledge of 100% equity shares of the company held by Promoters/ Promoters Group Companies.
Term Loan from Financial Institution
Loan from Financial Institution is secured against surrender value/ maturity value of key man insurance policy of Mr. Sanjay Agawam and Mr. Sandeep Agawam, Directors of the Company.
765,000 0% Non-Convertible Redeemable Preference Shares (NCRPS)
0% Non - Convertible Redeemable Preference Shares ("NCRPS'') of face value of '' 100/- per share have been redeemed at a price of '' 121.25 out of fresh issue of equity shares of the company during the FY 2017-18. Prior to conversion The NCRPS has been accounted as compound financial instruments and the discounted amount at prevailing rate of interest has been accounted in equity and balance as liability.
Nature of Security:
Working Capital facilities from Banks are secured by 1st Pari-Passu charge by way of hypothecation on the entire current assets including raw material, stocks in process, finished goods, consumable stores & spares and receivables of the Company, 1st Pari-Passu charge on company''s property situated at Prahaladpur, Bawana Road, Delhi, 2nd Pari-Passu charge on other present and future fixed assets. Further they are secured through collateral by way of 2nd charge on a property owned by a Corporate, personal guarantees of Mr. Sanjay Agawam and Mr. Sandeep Agawam, Directors of the Company and pledge of 100% equity shares of the company held by Promoters/ Promoters Group Companies.
* In terms of Section 22 of the Micro, Small and Medium Enterprises Development Act 2006 and the companies Act 2013, the outstanding, interest due thereon, interest paid etc. to these enterprises are required to be disclosed. However, these enterprises are required under the Act. In absence of information about registration of the enterprises under the above Act, the required information could not be furnished.
2. FINANCIAL RISK MANAGEMENT Financial risk factors
The Company''s principal financial liabilities, comprise borrowings, trade and other payables. The main purpose of these financial liabilities is to manage finances for the Company''s operations. The Company has short term trade receivable and bank deposits which are under lien with banks for availing credit facilities. The Company''s activities expose it to a variety of financial risks:
i) Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise three types of risk: currency rate risk, interest rate risk and other price risks, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits and investments. Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. This is based on the financial assets and financial liabilities held as of 31st March 2017 and 31stMarch 2018.
ii) Credit risk
Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss.
iii) Liquidity risk
Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses.
The Company''s overall risk management programmed focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company''s financial performance.
Market Risk
The sensitivity analysis excludes the impact of movements in market variables on the carrying value of post-employment benefit obligations provisions and on the non-financial assets and liabilities. The sensitivity of the relevant Statement of Profit and Loss item is the effect of the assumed changes in the respective market risks. The Company''s activities expose it to a variety of financial risks, including the effects of changes in foreign currency exchange rates and interest rates. However, such effect is not material.
(a) Foreign exchange risk and sensitivity
The Company transacts business primarily in Indian Rupee. However, the Company has transactions in USD, Euro, and GBP.The Company has foreign currency trade payables and receivables and is therefore, exposed to foreign exchange risk, though not material.
The following table demonstrates the sensitivity in the USD, Euro & GBP to the Indian Rupee with all other variables held constant. The impact on the Company''s profit before tax and other comprehensive income due to changes in the fair value of monetary assets and liabilities is given below:
The assumed movement in exchange rate sensitivity analysis is based on the currently observable market environment. Foreign Currency Sensitivity
(b) Interest rate risk and sensitivity
The Company''s exposure to the risk of changes in market interest rates relates primarily to long term debt. All borrowings are at fixed rate and hence, there is no interest risk sensitivity. Weighted average cost of borrowing is 10.85% for the year ended 31st March 2018 (10% for the year ended 31st March 2017) excluding borrowings which are assigned/negotiated with banks with no interest liability.
Credit risk
The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks which are under lien with banks for availing credit facilities.
- Trade Receivables
The Company extends credit to customers in normal course of business. The Company considers factors such as credit track record in the market and past dealings for extension of credit to customers. The Company monitors the payment track record of the customers. Outstanding customer receivables are regularly monitored .The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.
structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.
The Company''s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and market confidence and to sustain future development and growth of its business. The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.
The Company monitors capital using a gearing ratio, which is net debt divided by total capital. Net debt is calculated as loans and borrowings less cash and cash equivalents.
Fair value hierarchy
The Company measures financial instruments at fair value in accordance with the accounting policies mentioned above. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:
- Level 1: Quoted prices/NAV for identical instruments in an active market;
- Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs; and
- Level 3: Inputs which are not based on observable market data.
For assets and liabilities which are measured at fair value as at Balance Sheet date, the classification of fair
When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The Company recognizes transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.
The following table provides the fair value measurement hierarchy of Company''s asset and liabilities, grouped into Level 1 to Level 2 as described below:
During the year ended 31st March, 2017 and 31st March 2018, there were no transfers between Level 1 and Level 2 fair value measurements, and no transfer into and out of Level 3 fair value measurements.
Following table describes the valuation techniques used and key inputs to valuation for level 2 31st March 2017 and 31st March 2018, respectively:
The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (projected unit credit method) has been applied as when calculating the defined benefit obligation recognized within the Balance Sheet.
The following table sets out the funded status of the plan and the amounts recognized in the Company''s balance sheet.
(j) Current and non-current provision for gratuity, leave encashment and other benefits
For the year ended 31st March 2017
farm into in
Other Comprehensive Income presentation of defined benefit plan
- Gratuity is defined benefit plan, Re-measurement gains/(losses) on defined benefit plans is shown under Other Comprehensive Income as Items that will not be reclassified to profit or loss and also the income tax effect on the same.
- Leave encashment cost is in the nature of short term employee benefits.
Presentation in Statement of Profit & Loss and Balance Sheet
Expense for service cost, net interest on net defined benefit liability (asset) is charged to Statement of Profit & Loss.
IND AS 19 do not require segregation of provision in current and non-current, however net defined liability (Assets) is shown as current and non-current provision in balance sheet as per IND AS 1.
Actuarial liability for short term benefits (leave encashment cost) is shown as current and non-current provision in balance sheet.
The Company assesses these assumptions with its projected long-term plans of growth and prevalent industry standards. The mortality rates used are as published by one of the leading life insurance companies in India.
43. RELATED PARTY TRANSACTIONS
I n accordance with the requirements of IND AS 24, on related party disclosures, name of the related party, related party relationship, transactions and outstanding balances including commitments where control exits and with whom transactions have taken place during reported periods, are:
Related party name and relationship
a) Subsidiary Companies
Paramount Holdings Limited, Cyprus
"06196375 Cables Limited" (formerly AEI Cables Limited), United Kingdom (in Administration/Liquidation)
AEI Power Cables Limited, United Kingdom
b) Other related parties in the Group where common control exists:
Paramount Telesales Limited
c) Key Management Personnel
Shri Sanjay Agawam, Chairman and CEO Shri Sandeep Aggrawal, Managing Director Shri Shambhu Kumar Agawam, Chief Financial Officer Ms Tannu Sharma, Company Secretary
d) Relatives of Key Managerial Personnel with whom transactions have taken place:
Mrs. Shashi Agawam Mrs. Archana Agawam
3. IMPAIRMENT Review
Assets are tested for impairment whenever there are any internal or external indicators of impairment.
Impairment test is performed at the level of each Cash Generating Unit (''CGU'') or groups of CGUs within the Company at which the goodwill or other assets are monitored for internal management purposes, within an operating segment.
The impairment assessment is based on higher of value in use and value from sale calculations.
During the year, the testing did not result in any impairment in the carrying amount of goodwill and other assets.
The measurement of the cash generating units'' value in use is determined based on financial plans that have been used by management for internal purposes. The planning horizon reflects the assumptions for short to- midterm market conditions.
Key assumptions used in value-in-use calculations:
- Operating margins (Earnings before interest and taxes)
- Discount rate
- Growth rates
- Capital expenditures
Operating margins: Operating margins have been estimated based on past experience after considering incremental revenue arising out of adoption of valued added and data services from the existing and new customers, though these benefits are partially offset by decline in tariffs in a hyper competitive scenario. Margins will be positively impacted from the efficiencies and initiatives driven by the Company; at the same time, factors like higher churn, increased cost of operations may impact the margins negatively.
Discount rate: Discount rate reflects the current market assessment of the risks specific to a CGU or group of CGUs. The discount rate is estimated based on the weighted average cost of capital for respective CGU or group of CGUs.
Growth rates: The growth rates used are in line with the long term average growth rates of the respective industry and country in which the Company operates and are consistent with the forecasts included in the industry reports.
Capital expenditures: The cash flow forecasts of capital expenditure are based on past experience coupled with additional capital expenditure required
4. FOREIGN CURRENCY FLUCTUATION ON LONG TERM BORROWING
The Company has opted to continue the policy to capitalize foreign currency fluctuation on long term borrowings which was followed as per previous I-GAAP as per optional election of In AS -101, on all long term foreign currency borrowings outstanding on 31st March 2016. Accordingly, the Company has capitalized such exchange fluctuation to Property, Plant and Equipment of '' 1,44,000/- and '' (51,84,000/-) for the year ended 31st March 2018 and 31st March 2017 respectively.
5. OPERATING LEASE:
The Company has entered into lease transactions mainly for leasing of storage / office premises and company leased accommodations for its employees for periods upto 10 years. Terms of Lease include terms of renewal, increase in rents in future periods and terms of cancellation. There are no subleases. The Operating lease payments recognized in the Profit & Loss account amount to '' 22,433,324/- (Previous year '' 22,615,006/-) for the leases, which commenced on or after 1st April 2001.
6. DISCLOSURES REQUIRED AS PER INDIAN ACCOUNTING STANDARD (IND AS) 101- FIRST TIME ADOPTION OF INDIAN ACCOUNTING STANDARD Transition to IND AS
Basis of preparation
For all period up to and including the year ended 31st March 2017, the Company has prepared its financial statements in accordance with generally accepted accounting principles in India (Indian GAAP). These financial statements for the year ended 31st March 2018, are the Company''s first annual IND AS financial statements and have been prepared in accordance with IND AS.
Accordingly, the Company has prepared financial statements which comply with IND AS applicable for periods beginning on or after 1st April 2017, as described in the accounting policies. In preparing these financial statements, the Company''s opening
Balance Sheet was prepared as of 1st April 2016, the Company''s date of transition to IND AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP Balance Sheet as of 1st April 2017 and its previously published Indian GAAP financial statements for the year ended 1st March 2017.
Exemptions Applied
I ND AS 101 First-time adoption of Indian Accounting Standards allows first time adopters certain exemptions from the retrospective application of certain IND AS, effective for 1st April 2016 opening balance sheet.
I. Exemptions availed
1. The Company has elected to measure items of Property, Plant and Equipment and intangible assets at the date of transition to IND AS at their fair value. Company has used the fair value of assets, which is considered as deemed cost on transition. The impact on fair valuation of Property, Plant and Equipment and intangible assets on transition from previous GAAP is Rupees 71,77,40,703/- and the deemed cost considered on transition including intangible assets is '' 146,59,65,174/-. The details of the same on each line item is described below:-
Life and salvage value of assets has been revisited on transition date and revised estimated life less life expired on date of transition has been considered as revised life for all assets. The impact of change in life and salvage value is provided in Note no 5.
2. Under previous GAAP, company was carrying assets of one location at revaluation assessed on 31st March 2016, to fair value assets with corresponding increase in revaluation reserve. On transition to IND AS the Company has elected not to carry those assets at revaluation done under previous GAAP and those assets are fair valued as on transition date. On transition revaluation reserve has been adjusted against retained earnings. The impact of such measurement is provided in summary of effect of transition.
3. Investments in subsidiaries and other investment.
The Company has elected to recognize investment in subsidiaries at previous GAAP carrying values on the date of transition. Other investments are accounted for at fair value.
4. Long Term Foreign Currency Monetary Items
The Company has opted to continue the policy adopted for accounting for exchange differences arising from translation of long term foreign currency monetary items recognized in the financial statements for the period ending immediately before the beginning of the first IND AS financial reporting period as per the previous GAAP, accordingly the Company has continued the capitalization of foreign exchange fluctuation on long term loan outstanding on the date of transition i.e. 1st April 2016 and such capitalized amount is mortised over the remaining useful life of the asset. Refer Note no 47 for exchange differences capitalized during 2016-17 and 2017-18.
5. The Company has decided to disclose prospectively from the date of transition the following as required by IND AS 19
i. The present value of the defined benefit obligation, the fair value of the plan assets and the surplus or deficit in the plan, and
ii. The experience adjustments arising on;
a) The plan liabilities expressed as either an amount or a percentage of the plan liabilities at the end of the reporting period; and
b) The plan assets expressed as either an amount or a percentage of the plan liabilities at the end of the reporting period.
Under previous GAAP the Company was considering leave encashment as defined benefit plan as there was no difference in previous GAAP for accounting of experience adjustments and impact of change in actuarial assumption. On transition to IND AS, the Company has considered leave encashment as short term benefit and consequently experience adjustments and impact of change in actuarial assumption is accounted in profit and loss account.
6. Fair value of financial assets and liabilities
The Company has financial receivables and payables that are non-derivative financial instruments. Under previous GAAP, these were carried at transactions cost less allowances for impairment, if any. Under IND AS, these are financial assets and liabilities are initially recognized at fair value and subsequently measured at mortised cost, less allowance for impairment, if any. For transactions entered into on or after the date of transition to IND AS, the requirement of initial recognition at fair value is applied prospectively.
7. Fair value of stressed borrowings under assignment/settlement.
The Company has fair valued certain stressed borrowings through profit and loss account which are under assignment/settlement.
8. Security Deposit
Under Previous IGAAP, the security deposits for leases are accounted at an undiscounted value. Under In AS, the security deposits for leases have been recognized at discounted value and the difference between undiscounted and discounted value has been recognized as ''Deferred lease rent'' which has been mortised over respective lease term as rent expense under ''other expenses''. The discounted value of the security deposits is increased over the period of lease term by recognizing the notional interest income under ''other income''.
9. Foreign Currency Convertible Bonds (FCCB) financial Instrument
Foreign Currency Convertible Bonds (FCCB) is treated as liability under Indian GAAP.
Under IND AS Foreign Currency Convertible Bonds (FCCB) with fixed to fixed conversion of shares is accounted for as equity.
10. Compound financial instrument
(i) Under Indian GAAP, -0% Non-Convertible Redeemable Preference Shares are accounted for as Share Capital. Under IND AS, the same is analyzed as a compound financial instrument and is separated into a liability and an equity component. The fair value of the liability component is initially measured at mortised cost determined using a market rate for an equivalent non-convertible preference shares. The residual amount is recognized in equity. The finance cost arising on the liability component is included in finance cost in the Statement of Profit and Loss.
11. Re measurement of defined benefit plan i.e. gratuity is accounted for in other comprehensive income.
Impact of transition to IND AS
The following is a summary of the effects of the differences between IND AS and Indian GAAP on the Company''s total equity shareholders'' funds and profit and loss for the financial period for the periods previously reported under Indian GAAP following the date of transition to IND AS
Principal differences between IND AS and Indian GAAP
Measurement and recognition difference for year ended 31st March 2017
1. Asset carried at Deemed cost in IND AS
The Company has elected to measure items of PPE at the date of transition to IND AS at their fair value. Company has used the fair value of assets of assets, which is considered as deemed cost on transition. The impact of such fair value is disclosed in Exemption availed under Para 41 above. The Company has not revalued fair value of any items of PPE subsequent to the year ended 31st March 2016.
2. Financial instruments
i. Fair valuation of financial assets and liabilities
Under Indian GAAP, receivables and payables were measured at transaction cost less allowances for impairment, if any. Under IND AS, these financial assets and liabilities are initially recognized at fair value and subsequently measured at mortised cost using the effective interest method, less allowance for impairment, if any. The resulting finance charge or income is included in finance expense or finance income in the Statement of Profit and Loss for financial liabilities and financial assets respectively.
3. The impact of change in actuarial assumption and experience adjustments for defined benefit obligation towards gratuity liability is accounted in the Statement of Other Comprehensive Income and corresponding tax impact on the same.
4. Security Deposit
Under Previous IGAAP, the security deposits for leases are accounted at an undiscounted value. Under In AS, the security deposits for leases have been recognized at discounted value and the difference between undiscounted and discounted value has been recognized as ''Deferred lease rent'' which has been mortised over respective lease term as rent expense under ''other expenses''. The discounted value of the security deposits is increased over the period of lease term by recognizing the notional interest income under ''other income''.
5. Compound financial instrument
Under Indian GAAP, -0% Non-Convertible Redeemable Preference Shares are accounted for as Share Capital. Under IND AS, the same is analyzed as a compound financial instrument and is separated into a liability and an equity component. The fair value of the liability component is initially measured at mortised cost determined using a market rate for an equivalent nonconvertible preference shares. The residual amount is recognized in equity. The finance cost arising on the liability component is included in finance cost in the Statement of Profit and Loss.
6. Fair value of financial assets and liabilities
The Company has financial receivables and payables that are non-derivative financial instruments. Under previous GAAP, these were carried at transactions cost less allowances for impairment, if any. Under IND AS, these are financial assets and liabilities are initially recognized at fair value and subsequently measured at mortised cost, less allowance for impairment, if any. For transactions entered into on or after the date of transition to IND AS, the requirement of initial recognition at fair value is applied prospectively.
7. Statement of Cash Flows
The impact of transition from Indian GAAP to IND AS on the Statement of Cash Flows is due to various reclassification adjustments recorded under IND AS in Balance Sheet, Statement of Profit & Loss and difference in the definition of cash and cash equivalents and these two GAAP''s.
8. The impact of change in actuarial assumption and experience adjustments for defined benefit obligation towards gratuity liability is accounted in the Statement of Other Comprehensive Income and corresponding tax impact on the same.
Subsequent reconciliations post transition on 31st March 2017
9. Previous year figures have been regrouped/ rearranged, wherever considered necessary to conform to current year''s classification.
10. Notes 1 to 50 are annexed and form integral part of Financial Statements.
Mar 31, 2017
1. Rights, preferences and restrictions attached to Equity Shares
Equity Shares : The company has one class of equity shares having a par value of Rs.2 /- per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholdings.
Rights, preferences and restrictions attached to 0% Non-Convertible Redeemable Preference Shares (NCRPS)
Rate of Dividend: 0% rate of dividend. NCRPS are not convertible in equity shares. Redeemable on day and date falling next to date of expiry of a period of 10 years calculated from the date of allotment of these shares. Option of an earlier redemption after expiry of period of 6 months shall be open to Board and can be made by a Board resolution to this effect passed in a duly convened meeting and when consented by the NCRPS shareholders, where the premium payable on redemption shall be adjusted proportionately. Redemption Value & Premium: The redemption premium shall be @ 50% of par value and thereby the redemption value shall be 150% of par value after 10 (Ten) years term. There is no right to vote in general. The voting rights shall be restricted to the matters concerning their interest only. Right to share of Assets: In the event of winding up of the Company, the NCRPS shareholders shall be entitled to share of assets of the Company in proportion of the preference share capital to aggregate of total paid up capital after settlement of all the liabilities of the Company. The NCRPS shareholders shall have a preferential right on the assets of Company over the Equity shareholders while distribution of assets among shareholders in the event of winding up of Company.
2. During the year Redemption Premium payable on prorata basis Rs.3,825,000/- (Previous Year Rs.3,825,000/-) on 0% Non-Convertible Redeemable Preference share (NCRPS) has been charged to Securities Premium Account.
3. In view of losses Capital Redemption Reserve required under Section 55 of the Companies Act, 2013 has not been created.
4. Are amortized over period of foreign currency monetary item or up to 31st March, 2020, whichever is earlier.
5. As per amendments made in Accounting Standard -10, on Property, Plant & Equipment (AS-10), w.e.f. 01.04.2016 all fixed assets of a particular category are to be revalued. In case of selective revaluation done in earlier years the AS-10 offered the alternative of adjusting outstanding balance in Revaluation Reserve against the carrying amount of that item in case company opts for not revaluing all fixed assets of that particular category. The company has transferred outstanding balance in Revaluation Reserve of Rs.15,057,484/- as on 01.04.2016 to land ''7,650,950/- and Building Rs.7,406,534/- and accumulated depreciation Rs.6,219,131/- thereon. This has no material impact on loss for the year.
6. Nature of Security :-
i Term Loan from Banks/Securitization and Assets Reconstruction Company(ARC) :-
Term loans from banks/Securitization and Assets Reconstruction Company (ARC) are secured by 1st pari-passu charge on present and future fixed assets of the company and 2nd pari-passu charge on present and future current assets of the Company. Further they are secured through collateral by way of 2nd charge on a property owned by a Corporate, personal guarantees of Mr. Sanjay Aggarwal and Mr. Sandeep Aggarwal, Directors of the Company and pledge of 100% equity shares of the company held by Promoters/ Promoters Group Companies .
ii Term Loan from Financial Institution:-
Loan from Financial Institution is secured against surrender value/ maturity value of keyman insurance policy of Mr. Sanjay Aggarwal and Mr. Sandeep Aggarwal, Directors of the Company.
7. Period and Amount of Default in Repayment :-
8. Due to continuing losses and delays in monetization of an asset stipulated in Corporate Debt Restructuing, EG approved Rework Package, Company is in default as per details given below:
9. Nature of Security :-
Working Capital facilities from Banks are secured by 1st Pari-Passu charge by way of hypothecation on the entire current assets including raw material, stocks in process, finished goods, consumable stores & spares and receivables of the Company, 1st Pari-Passu charge on company''s property situated at Prahaladpur, Bawana Road, Delhi, 2nd Pari-Passu charge on other present and future fixed assets. Further they are secured through collateral by way of 2nd charge on a property owned by a Corporate, personal guarantees of Mr. Sanjay Aggarwal and Mr. Sandeep Aggarwal, Directors of the Company and pledge of 100% equity shares of the company held by Promoters/ Promoters Group Companies.
10. Period and amount of default:
â Working Capital Loans from banks are overdrawn to the extent of Rs.539,432,964/- (Previous Year Rs.539,432,964/-) due to devolvement of Letter of Credits from November, 2014 to December, 2016. Subsequently these loans have been assigned by bank to ARC.
â Interest on Working Capital Loans from banks are overdrawn to the extent of :
â The above information for the period and amount of default as at the year end is after considering loans/interest which have been transferred to Securitization and Assets Reconstruction Company as per intimation received from the banks.
â Working Capital Loans from a bank are in default due to non repayment of recalled loan by a bank since February,2017.
11. In terms of Sectio in 22 of the Micro, Small and Medium Enterprises Development Act 2006 and the companies Act 2013, the outstanding, interest due thereon, interest paid etc to these enterprises are required to be disclosed. However, these enterprises are required under the Act. In absence of information about registration of the enterprises under the above Act, the required information could not be furnished.
12. Period and Amount of Default in repayment and interest :-
i. Principal amount of Rs.488,775,000/- of 1% Foreign Currency Convertible Bonds (''FCCBs'') is overdue for repayment since 23rd November, 2011. Interest on FCCBs Rs.36,612,174/- due up to 31st December, 2016 has also not been paid and is over due. Premium on redemption of FCCB''s of Rs.222,628,876/- is also over due for payment since 23rd November, 2011.
ii. Refer Note 4.2 for default in repayment of Term Loans.
13. No amount is due as on 31st March, 2017 for credit to Investor Education and Protection Fund (Fund).
14. For Banks who have assigned and transferred the loan together with all underlying securities thereto and rights etc., to a Securitization and Asset Reconstruction Company, dues to those banks have been transferred and shown as due to Securitization and Asset Reconstruction Company.
15. Subsequent to the year end company has entered into Settlement with a bank. Dues of settlement are to be paid to the bank on or before 31st March, 2018. Outstanding (including interest) to this bank as on 31st March, 2017 has been stated on the basis of prorata calculation of amount outstanding acknowledged by the company in settlement.
16. Title deeds of factory land at prahladpur, Bawana Road, Delhi measuring 2147.17 sq. mtrs. are in the name of erstwhile Paramount Cable Corporation.
17. Title deeds of a part of factory land measuring 961.55 sq. mtr.at prahladpur, Bawana Road, Delhi shown in Balance Sheet at Rs.2,386,250 are yet to be registered in name of the Company.
18. Land (Freehold) of Rs.235,739/- as of 31st March, 2017 situated at Prahaladpur, Delhi is under acquisition as per the Land Acquisition Act, 1894. The matter is being contested.
19. As per changes made in AS 11 vide Companies(Accounting Standards) Amendment Rules 2009, further amended vide Amendment Rules 2011, during financial year 2008-09 the company exercised option of deferring foreign exchange difference arising on long term foreign currency monetary items viz âFCCBs'', Foreign Currency Term Loan to the Profit and Loss account, in respect of accounting periods commencing on or after December 22, 2006. As a result, such foreign exchange difference relating to the acquisition of depreciable capital assets have been adjusted with cost of such assets and would be depreciated over the balance life of the assets and in other cases has been accumulated in âFCMITDA''. Exchange gain(loss) (net) Rs.5,184,000/-(Previous year exchange gain/(loss) (net) Rs. (13,860,000/-) has been adjusted in gross block of Fixed Assets. Exchange difference on External Commercial Borrowing (ECBs) raised for repurchasing FCCBs has been transferred to âFCMITDA
20. Additions are after adjusting exchange gain /(loss) (net) Rs.5,184,000/- (Previous Year exchange gain/ (loss) (net) Rs. (13,860,000/-))
21. Aggregate Provision for diminution in value of investments in Paramount Holdings Limited, Cyprus ,"06196375 Cables Limited" (formerly AEI Cables Limited), United Kingdom and AEI Power Cables Limited, United Kingdom has been made keeping in view negative net worth.
22. AEI Power Cables Limited, United Kingdom has ceased to trade. From 1st April, 2017 it is dormant company, but the intention is still to remain in existence for the forseeable future.
23. The board of directors of Paramount Holdings Limited, Cyprus are taking steps to liquidate Paramount holdings Limited.
24. In respect of dues to ARC which have been assigned by banks and in respect of which Settlement between company and ARC, no interest has been provided, since, the company is in the process of making settlement with the ARC. As per terms & conditions of Settlements with ARC during the year, no interest was charged by ARC.
25. âFrom 1st July, 2016 company has not provided for interest and other dues on borrowings from a bank which have become NPA account as per bank classification and are outstanding at the year end and in respect of which interest has been reversed/not charged in statements provided by the Bank. Amount of interest not provided ''29,917,920/-. Company has obtained balance confirmation from aforesaid bank as on 31st March, 2017 and there are no material difference between outstandings as per the bank & company. Management is of the opinion that no further interest is to be provided other than already accounted for.
26. Amount of Excise Duty deducted from the turnover is for sales made during the year and the amount recognized separately in the statement of Profit & Loss is related to the difference between the closing stock and opening stock.
27. Insurance Premium of Rs. Nil (Previous Year Rs.3,818,207/-) on Keyman Insurance Policy has been charged to Profit & Loss. Maturity value of such policies will be accounted for on receipt basis.
28. Company has received and accepted Sanction letter / in principle approval with ARC for payment of Rs.373,800,000/towards full & final payment of the amount due & payable to ARC Subject to Company complying with âSchedule of Payments'' referred to in Sanction letter / in principle approval. As per schedule of payment Rs.167,500,000 /- is ought to be paid before 29th March, 2021 in half yearly installments and Rs.206,300,000/- is ought to be paid before 30th September, 2021 in half yearly installments. Company has paid all the installments due upto 31st March, 2017 and is confident of meeting all payment schedules specified in Sanction letter / in principle approval. In opinion of the management the settled amounts with ARC are new borrowing/ liability since the lender is different from earlier lenders and the new borrowings/ liability are on substantially different terms viz as amount of settlement, schedule of payment etc. Hence, this modification is treated as de-recognition of the original liability and the recognition of a new liability.
Accordingly, Company has written back Rs.714,204,200/- as exceptional item (settlement of dues) as difference between loans assigned to ARC by banks & Settlement amount between Company & ARC.
b. Non-Financial Transactions:
i. Mr. Sanjay Aggarwal and Mr. Sandeep Aggarwal have given personal guarantees to banks/financial institutions for Company''s borrowings and also have pledged their share holding in the company with banks.
ii. Guarantee of Rs.Nil (Previous Year Rs.10,000,000/-) given to a Bank for credit facilities sanctioned to Paramount Wires & Cables Limited. Credit facilities availed by the said company as on 31.03.2017 Rs.Nil (Previous year Rs.Nil/-).
iii. Paramount Telecables Limited has given its property as collateral by way of 2nd charge to the banks of the company.
iv. The remuneration does not include Gratuity and Provision for Leave Encashment under Accounting Standard -15 (Revised) and personal accident insurance premium, since same is not available for individual employees.
29 Operating Leases:
The Company has entered into lease transactions during the current financial year mainly for leasing of storage / office premises and company leased accommodations for its employees for periods upto 10 years. Terms of Lease include terms of renewal, increase in rents in future periods and terms of cancellation. There are no subleases. The Operating lease payments recognized in the Profit & Loss account amount to Rs.22,615,006/- (Previous year Rs.22,568,522/-) for the leases, which commenced on or after April 1, 2001. Minimum lease payments under non-cancellable operating leases are:
30. In opinion of the management Company''s business activity mainly falls within a single primary business segment "Cables", the disclosures requirements of Accounting Standard-17 (âAS-17â) "Segment Reporting" are not applicable.
31. Outstanding 1 % Foreign Currency Convertible Bonds (FCCBs) amounting to USD 7.5 million were due for redemption on 23rd November, 2011 and are yet to be redeemed. The Company was to redeem these FCCBs at a Premium equal to 145.54% of the outstanding principal amount. The said premium amounts to Rs.248,192,727/- (Gross of tax). A winding up petition was filed against the Company on behalf of the FCCB holders which has been dismissed by the court in earlier years.
32. Going Concern :
The company has recorded a net loss of Rs.3,132,832/- for the year end and has accumulated losses of Rs.4,390,714,878/- as at 31st March, 2017, resulting in negative net worth. The company has also defaulted in payments of interest and redemption amount of Foreign Currency Convertible Bonds (FCCBs) and interest and term loans installments to banks and other working capital facilities from banks. The accompanying financial statements have been prepared on a going concern basis based on cumulative impact of following mitigating factors:
a) The company has not defaulted in payment of statutory dues or its trade creditors etc.
b) The company has entered in Settlement agreement with ARC for dues of two banks assigned to ARC. Further Company is negotiating with ARC for settlement of dues for another bank.
c) Subsequent to year end company has entered in to Settlement agreement with one bank.
d) The terms of settlements with ARC and Banks will reduce substantially company''s negative net worth. Also Company has reasonable assurance of meeting terms and conditions of settlement with ARC/Bank. This reasonable assurance is based upon future cash flows of the Company and undertaking from the promoters of infusing necessary funds for meeting the obligations of settlement .
e) The Company and promoters have undertaken to raise and had raised adequate finances by way of disposal of assets and induction of fresh funds by promoters and/or promoter group companies.
f) The company has strong order book position.
33. Name of AEI Cables Limited, United Kingdom was changed to "06196375 Cables Limited" w.e.f. 28th February, 2014. This Company is "in Administration/Liquidation" (as per UK laws).
34. Disclosures as to holdings as well as dealing in Specified Bank Notes (SBN) during the period from 8th November, 2016 to 30th December ,2016
Explanation: For the purpose of this clause, the term ''Specified Bank Notes'' shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs numbers S.O. 3407 (E), dated 08th November, 2016''.
35. Previous Year''s figures have been regrouped / rearranged wherever necessary.
Mar 31, 2016
1 Rights, preferences and restrictions attached to Equity Shares
Equity Shares : The company has one class of equity shares having a par value of ''2 /- per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholdings.
Rights, preferences and restrictions attached to 0% Non-Convertible Redeemable Preference Shares (NCRPS)
Rate of Dividend: 0% rate of dividend. NCRPS are not convertible in equity shares. Redeemable on day and date falling next to date of expiry of a period of 10 years calculated from the date of allotment of these shares. Option of an earlier redemption after expiry of period of 6 months shall be open to Board and can be made by a Board resolution to this effect passed in a duly convened meeting and when consented by the NCRPS shareholders, where the premium payable on redemption shall be adjusted proportionately. Redemption Value & Premium: The redemption premium shall be @ 50% of par value and thereby the redemption value shall be 150% of par value after 10 (Ten) years term. There is no right to vote in general. The voting rights shall be restricted to the matters concerning their interest only. Right to share of Assets: In the event of winding up of the Company, the NCRPS shareholders shall be entitled to share of assets of the Company in proportion of the preference share capital to aggregate of total paid up capital after settlement of all the liabilities of the Company. The NCRPS shareholders shall have a preferential right on the assets of Company over the Equity shareholders while distribution of assets among shareholders in the event of winding up of Company.
2. During the year Redemption Premium payable on prorata basis ''3,825,000/- (Previous Year ''3,825,000/-) on 0% Non Convertible Redeemable Preference share (NCRPS) has been charged to Securities Premium Account.
3. In view of losses Capital Redemption Reserve required under Section 55 of the Companies Act, 2013 has not been created.
4. Are amortized over period of foreign currency monetary item or up to 31st March, 2020, whichever is earlier.
5. Amount of Depreciation pertaining to revaluation in case of Buildings has been transferred from Revaluation Reserve.
6. Written Down Value of Asstes whose useful life is already exhausted as on 1st April, 2014 ,amounting to ''Nil/- (previous year ''10,100,787/-) has been recognized in the opening balance of Profit & Loss Account (debit).
7. Nature of Security :-
i Term Loan from Banks:-
Term loans from banks are secured by 1st pari-passu charge on present and future fixed assets of the company and 2nd pari-passu charge on present and future current assets of the Company. Further they are secured through collateral by way of 2nd charge on a property owned by a Corporate, personal guarantees of Mr. Sanjay Aggarwal and Mr. Sandeep Aggarwal, Directors of the Company and pledge of 100% equity shares of the company held by Promoters/ Promoters Group Companies .
ii Term Loan from Financial Institution:-
Loan from Financial Institution is secured against surrender value/ maturity value of keyman insurance policy of Mr. Sanjay Aggarwal and Mr. Sandeep Aggarwal, Directors of the Company.
8. Period and Amount of Default in Repayment :-
9. Due to continuing losses and delays in monetization of an asset stipulated in Corporate Debt Restructuring, EG approved Rework Package, Company is in default as per details given below:
10. As required by Accounting Standard-22 (âAS-22â) in view of existence of Carried forward losses and unabsorbed depreciation under tax laws, Deferred Tax Assets have been recognized only to the extent they are virtually certain to be realized.
11. Nature of Security :-
Working Capital facilities from Banks are secured by 1st Pari-Passu charge by way of hypothecation on the entire current assets including raw material, stocks in process, finished goods, consumable stores & spares and receivables of the Company, 1st Pari-Passu charge on companyâs property situated at Prahaladpur, Bawana Road, Delhi, 2nd Pari-Passu charge on other present and future fixed assets. Further they are secured through collateral by way of 2nd charge on a property owned by a Corporate, personal guarantees of Mr. Sanjay Aggarwal and Mr. Sandeep Aggarwal, Directors of the Company and pledge of 100% equity shares of the company held by Promoters/ Promoters Group Companies .
12. Period and amount of default:
â Working Capital Loans from banks are overdrawn to the extent of ''539,432,964/- (Previous Year ''598,744,744/-) due to devolvement of Letter of Credits since January, 2014.
â Working Capital Loans from a bank are in default ''Nil/- (Previous Year ''281,665,199) due to non repayment of recalled loan by a bank since November, 2014.
â Interest on Working Capital Loans from banks are overdrawn to the extent of ''549,716,008/- (Previous Year ''246,705,450/-) due since October, 2013.
â The above information for the period and amount of default as at the year end is after considering loans/interest which have been transferred to Securitization and Assets Reconstruction Company as per intimation received from the bank.
13. In terms of Section 22 of the Micro, Small and Medium Enterprises Development Act 2006 and the companies Act 2013, the outstanding, interest due thereon, interest paid etc to these enterprises are required to be disclosed. However, these enterprises are required under the Act. In absence of information about registration of the enterprises under the above Act, the required information could not be furnished.
14. Period and Amount of Default in repayment and interest :-
i. Principal amount of ''499,575,000/- of 1% Foreign Currency Convertible Bonds (âFCCBsâ) is overdue for repayment since 23rd November, 2011. Interest on FCCBs ''29,837,012/- due up to 31st December, 2015 has also not been paid and is overdue. Premium on redemption of FCCBâs of ''227,548,097/- is also over due for payment since 23rd November, 2011.
ii. Refer Note 4.2 for default in repayment of Term Loans.
15. No amount is due as on 31st March, 2016 for credit to Investor Education and Protection Fund (Fund). Amount remaining due after adjustment of amounts to be claimed from the Company will be transferred on the respective due dates to the Fund.
16. During the year a bank has assigned and transferred the loan together with all underlying securities thereto and rights etc., to a Securitization and Asset Reconstruction Company. Accordingly all dues to that bank have been transferred and shown as due to Securitization and Asset Reconstruction Company.
17. Land includes addition made due to revaluation as on 31st March, 1994 in erstwhile Paramount Cable Corporation '' 7650950 Building includes addition made due to revaluation as on 31st March, 1994 in erstwhile Paramount Cable Corporation '' 7406534 Amount of Depreciation pertaining to revaluation in case of Buildings '' 60275
18. Title deeds of factory land at prahladpur, Bawana Road, Delhi measuring 2147.17 sq. mtrs. are in the name of erstwhile Paramount Cable Corporation.
19. Title deeds of a part of factory land measuring 961.55 sq. mtr.at prahladpur, Bawana Road, Delhi shown in Balance Sheet at ''2,386,250 are yet to be registered in name of the Company.
20. Land (Freehold) of ''7,886,689/- as of 31st March, 2016 situated at Prahaladpur, Delhi is under acquisition as per the Land Acquisition Act, 1894. The matter is being contested.
21. As per changes made in AS 11 vide Companies(Accounting Standards) Amendment Rules 2009, further amended vide Amendment Rules 2011, during financial year 2008-09 the company exercised option of deferring foreign exchange difference arising on long term foreign currency monetary items viz âFCCBsâ, Foreign Currency Term Loan to the Profit and Loss account, in respect of accounting periods commencing on or after December 22, 2006. As a result, such foreign exchange difference relating to the acquisition of depreciable capital assets have been adjusted with cost of such assets and would be depreciated over the balance life of the assets and in other cases has been accumulated in âFCMITDAâ. Exchange loss (net) ''13,860,000/- (Previous year exchange loss (net) ''8,892,000/-) has been adjusted in gross block of Fixed Assets. Exchange difference on External Commercial Borrowing (ECBs) raised for repurchasing FCCBs has been transferred to âFCMITDAâ
22. Aggregate Provision for diminution in value of investments in Paramount Holdings Limited, Cyprus, â06196375 Cables Limitedâ (formerly AEI Cables Limited), United Kingdom and AEI Power Cables Limited, United Kingdom has been made keeping in view negative net worth.
23. AEI Power Cables Limited, United Kingdom has ceased to trade and since the year end it is intention of the Management to strike off the company in due couse as per applicable Laws.
24. The board of directors of Paramount Holdings Limited, Cyprus are taking steps to liquidate Paramount holdings Limited .
25. âRelated party disclosuresâ, for the year ended 31st March, 2016, as required by Accounting Standard-18 (âAS-18â) are given below:
Relationships:
i) Subsidiaries of the Company:
Paramount Holdings Limited, Cyprus
â06196375 Cables Limitedâ (formerly AEI Cables Limited), United Kingdom (in Administration/Liquidation)
AEI Power Cables Limited, United Kingdom
ii) Associate of the Company:
Paramount Wires & Cables Limited (upto 26th May, 2014)
iii) Other related parties in the Group where common control exists:
Sanjay Aggarwal (HUF)
Sandeep Aggarwal (HUF)
26. Aggarwal (HUF)
April Investment & Finance Private Limited Worth Finance & Leasing Private Limited Paramount Telecables Limited
27. Aggarwal Foundation
iv) Key Managerial Personnel:
Shri Sanjay Aggarwal, Chairman and CEO Shri Sandeep Aggrawal, Managing Director
Shri Shambhu Kumar Agarwal, Chief Financial Officer (w.e.f 1st October, 2014)
Ms Tannu Sharma,Company Secretary (w.e.f 1st October, 2014)
v) Relatives of Key Managerial Personnel with whom transaction have taken place:
Ms Parul Aggarwal
vi) Enterprises over which relatives of Key Managerial Personnel have significant infulence and with whom transactios have taken place:
Paramount Wires & Cables Limited (w.e.f 27th May,2014)
Surya Laboratories Private Limited (w.e.f 1st April,2014)
b. Non-Financial Transactions:
i. Mr. Sanjay Aggarwal and Mr. Sandeep Aggarwal have given personal guarantees to banks/financial institutions for Companyâs borrowings and also have pledged their share holding in the company with banks.
ii. Guarantee of ''10,000,000/- (Previous Year ''10,000,000/-) given to a Bank for credit facilities sanctioned to Paramount Wires & Cables Limited. Credit facilities availed by the said company as on 31.03.2016 ''Nil (Previous year ''867,329/-).
iii. Paramount Telecables Limited has given its property as collateral by way of 2nd charge to the banks of the company.
iv. The remuneration does not include Gratuity and Provision for Leave Encashment under Accounting Standard -15 (Revised) and personal accident insurance premium ,since same is not available for individual employees.
28. Operating Leases:
The Company has entered into lease transactions during the current financial year mainly for leasing of storage / office premises and company leased accommodations for its employees for periods up to 10 years. Terms of Lease include terms of renewal, increase in rents in future periods and terms of cancellation. There are no subleases. The Operating lease payments recognized in the Profit & Loss account amount to ''22,568,522/- (Previous year ''22,447,992/-) for the leases, which commenced on or after April 1, 2001. Minimum lease payments under non-cancellable operating leases are:
29. In opinion of the management Companyâs business activity mainly falls within a single primary business segment âCablesâ, the disclosures requirements of Accounting Standard-17 (âAS-17â) âSegment Reportingâ are not applicable.
30. Outstanding 1% Foreign Currency Convertible Bonds (FCCBs) amounting to USD 7.5 million were due for redemption on 23rd November, 2011 and are yet to be redeemed. The Company was to redeem these FCCBs at a Premium equal to 145.54% of the outstanding principal amount. The said premium amounts to ''253,676,808/- (Gross of tax). A winding up petition was filed against the Company on behalf of the FCCB holders which has been dismissed by the court during the year.
31.. Going Concern :
The company has recorded a net loss of ''1,222,901,933/- for the year and has accumulated losses of ''4,387,582,046/- as at 31st March, 2016, resulting in negative net worth. The company has also defaulted in payments of interest and redemption amount of Foreign Currency Convertible Bonds (FCCBs) and interest and term loans installments to banks and other working capital facilities from banks. The management is confident that the company will be able to generate profits in future years and meet its financial obligations as may arise .The Management is also exploring inducting financial investor/s in the company and/or joint venture with foreign companies. The accompanying financial statements have been prepared on a going concern basis based on cumulative impact of following mitigating factors:
a) The company has not defaulted in payment of statutory dues or its trade creditors etc.
b) CDR package was approved during financial year 2010-11 and further âRework Packageâ has been approved by CDR-EG vide Letter of Approval (LOA) dated 11th July, 2012. The Company has again proposed banks to reschedule term loans repayments.
c) The Company and promoters have undertaken to raise and had raised adequate finances by way of disposal of assets and induction of fresh funds by promoters and/or promoter group companies .The Management is also exploring inducting financial investor in the company and/or joint venture with foreign companies.
d) The Company has strong order book position.
32. Company has been registered with the Board for Industrial and Financial Reconstruction (BIFR) under section 15 (1) of Sick Industrial Companies (Special Provisional Act, 1985 vide order dated 31.10.2013, BIFR has restrained company from disposing of or alienating in any manner any fixed assets of the Company without consent of BIFR.
33. Name of AEI Cables Limited, United Kingdom was changed to â06196375 Cables Limitedâ w.e.f. 28th February, 2014. This Company is âin Administration/Liquidationâ (as per UK laws).
34. Previous Yearâs figures have been regrouped / rearranged wherever necessary.
Mar 31, 2015
1. Rights, preferences and restrictions attached to Equity Shares
Equity Shares : The company has one class of equity shares having a
face value of Rs. 2/- per share. Each shareholder is eligible for one
vote per share held. The dividend proposed by the Board of Directors is
subject to the approval of the shareholders in the ensuing Annual
General Meeting, except in case of interim dividend. In the event of
liquidation, the equity shareholders are eligible to receive the
remaining assets of the company after distribution of all preferential
amounts, in proportion to their shareholdings.
2. Rights, preferences and restrictions attached to 0% Non-Convertible
Redeemable Preference Shares (NCRPS)
Rate of Dividend: 0% rate of dividend. NCRPS are not convertible in
equity shares. Redeemable on day and date falling next to date of
expiry of a period of 10 years calculated from the date of allotment of
these shares. Option of an earlier redemption after expiry of period of
6 months shall be open to Board and can be made by a Board resolution
to this effect passed in a duly convened meeting and when consented by
the NCRPS shareholders, where the premium payable on redemption shall
be adjusted proportionately. Redemption Value & Premium: The redemption
premium shall be @ 50% of par value and thereby the redemption value
shall be 150% of face value after 10 (Ten) years term. There is no
right to vote in general. The voting rights shall be restricted to the
matters concerning their interest only. Right to share of Assets: In
the event of winding up of the Company, the NCRPS shareholders shall be
entitled to share of assets of the Company in proportion of the
preference share capital to aggregate of total paid up capital after
settlement of all the liabilities of the Company. The NCRPS
shareholders shall have a preferential right on the assets of Company
over the Equity shareholders while distribution of assets among
shareholders in the event of winding up of Company.
3. Premium on redemption of FCCBs (Gross of tax) Rs. Nil (Previous
Year Rs.229,607,788/-) has been set off against Securities Premium
Account.
4. During the year Redemption Premium payable on prorata basis Rs.
3,825,000/- (Previous Year Rs. 3,825,000/-) on 0% Non- Convertible
Redeemable Preference share (NCRPS) has been charged to Securities
Premium Account.
5. In view of losses Capital Redemption Reserve required under Section
55 of the Companies Act, 2013 has not been created.
6. Are amortised over period of foreign currency monetary item or up
to 31st March, 2020, whichever is earlier.
7. Amount of Depreciation pertaining to revaluation in case of
Buildings has been transferred from Revaluation Reserve.
8. During the current year, depreciation has been provided on fixed
assets as per the useful life specified in Part C of Schedule II of the
Companies Act 2013 and as per internal assessment by the management and
independent technical evaluation carried out by external valuers. In
case of existing assets, depreciation has been provided based on
remaining useful life of the assets. Assets whose useful life is
already exhausted as on 1st April, 2014, amounting to Rs. 10,100,787/-
has been recognised in the opening balance of Profit & Loss Account
(debit).
9. Nature of Security
i. Term Loan from Banks:-
Term loans from banks are secured by 1st pari-passu charge on present
and future fixed assets of the company and 2nd pari-passu charge on
present and future current assets of the Company. Further they are
secured through collateral by way of 2nd charge on a property owned by
a Corporate, personal guarantees of Mr. Sanjay Aggarwal and Mr. Sandeep
Aggarwal, Directors of the Company and pledge of 100% equity shares of
the company held by Promoters/ Promoters Group Companies.
ii. Term Loan from Financial Institution:-
Loan from Financial Institution is secured against surrender value/
maturity value of keyman insurance policy of Mr. Sanjay Aggarwal and
Mr. Sandeep Aggarwal, Directors of the Company.
10. Period and Amount of Default in Repayment :-
11. Nature of Security
Working Capital facilities from Banks are secured by 1st Pari-Passu
charge by way of hypothecation on the entire current assets including
raw material, stocks in process, finished goods, consumable stores &
spares and receivables of the Company, 1st Pari-Passu charge on
company's property situated at Prahaladpur, Bawana Road, Delhi, 2nd
Pari- Passu charge on other present and future fixed assets. Further
they are secured through collateral by way of 2nd charge on a property
owned by a Corporate, personal guarantees of Mr. Sanjay Aggarwal and
Mr. Sandeep Aggarwal, Directors of the Company and pledge of 100%
equity shares of the company held by Promoters/ Promoters Group
Companies .
12. Period and amount of default:
* Working Capital Loans from banks are overdrawn to the extent of Rs.
598,744,744/- (Previous Year Rs. 97,434,093/-) due to devolvement of
Letter of Credits since January, 2014.
* Working Capital Loans from a bank are in default Rs.281,665,199/-
(Previous Year Rs.NIL) due to non repayment of recalled loan by a bank
since November, 2014.
* Interest on Working Capital Loans from banks are overdrawn to the
extent of Rs.246,705,450/- (Previous Year Rs.46,675,155/-) due since
October, 2013.
13. Principal amount of Rs.470,700,000/- of 1% Foreign Currency
Convertible Bonds ('FCCBs') is overdue for repayment since 23rd
November, 2011. Interest on FCCBs Rs.21,284,901/- due up to 31st
December, 2014 has also not been paid and is over due. Premium on
redemption of FCCB's of '214,936,015/- is also over due for payment
since 23rd November, 2011.
14. Refer Note 4.2 for default in repayment of Term Loans.
15. No amount is due as on 31st March, 2015 for credit to Investor
Education and Protection Fund (Fund). Amount remaining due after
adjustment of amounts to be claimed from the Company will be
transferred on the respective due dates to the Fund.
16. Title deeds of factory land at prahladpur, Bawana Road, Delhi are
in the name of erstwhile Paramount Cable Corporation.
17. Title deeds of a part of factory land measuring 954.50 sq. mtr. at
prahladpur, Bawana Road, Delhi shown in Balance Sheet at '2,386,250 are
yet to be registered in name of the Company.
18. Land (Freehold) of Rs.7,886,689/- as of 31st March, 2015 situated
at Prahaladpur, Delhi is under acquisition as per the Land Acquisition
Act, 1894. The matter is being contested.
19. During the current year, depreciation has been provided on fixed
assets as per the useful life specified in Part C of Schedule II of the
Companies Act 2013 and as per internal assessment by the management and
independent technical evaluation carried out by external valuers. In
case of existing assets, depreciation has been provided based on
remaining useful life of the assets. Assets whose useful life is
already exhausted as on 1st April, 2014, amounting to Rs.10,100,787/-
has been recognised in the opening balance of Profit & Loss Account
(debit). Had there been no change in useful life of the assets,
depreciation expense for the year would have been higher by
Rs.12,371,596/- .
20.As per changes made in AS 11 vide Companies(Accounting Standards)
Amendment Rules 2009, further amended vide Amendment Rules 2011, during
financial year 2008-09 the company exercised option of deferring
foreign exchange difference arising on long term foreign currency
monetary items viz 'FCCBs', Foreign Currency Term Loan to the Profit
and Loss account, in respect of accounting periods commencing on or
after December 22, 2006. As a result, such foreign exchange difference
relating to the acquisition of depreciable capital assets have been
adjusted with cost of such assets and would be depreciated over the
balance life of the assets and in other cases has been accumulated in
'FCMITDA'. Exchange loss (net) '8,892,000/-(Previous year exchange
loss (net) '20,448,000/-) has been adjusted in gross block of Fixed
Assets. Exchange difference on External Commercial Borrowing (ECBs)
raised for repurchasing FCCBs has been transferred to 'FCMITDA'
21. Aggregate Provision for diminution in value of investments in
Paramount Holdings Limited, Cyprus,"06196375 Cables Limited" (formerly
AEI Cables Limited), United Kingdom and AEI Power Cables Limited,
United Kingdom has been made keeping in view negative net worth.
22. During the year company purchased Equity shares and preference
shares of "06196375 Cables Limited" (formerly AEI Cables Limited),
United Kingdom and AEI Power Cables Limited, United Kingdom from
Paramount Holdings Limited, Cyprus at the at aggregate value of euro 1.
Hence, "06196375 Cables Limited" (formerly AEI Cables Limited), United
Kingdom and AEI Power Cables Limited, United Kingdom have become direct
subsidiaries during the year.
23. The board of directors of Paramount Holdings Limited, Cyprus are
taking steps to liquidate Paramount holdings Limited.
24. During the current year, depreciation has been provided on fixed
assets as per the useful life specified in Part C of Schedule II of the
Companies Act, 2013 and as per internal assessment by the management
and independent technical evaluation carried out by external valuers.
In case of existing assets, depreciation has been provided based on
remaining useful life of the assets. Assets whose useful life is
already exhausted as on 1st April, 2014, amounting to Rs. 10,100,787/-
has been recognised in the opening balance of Profit & Loss Account
(debit). Had there been no change in useful life of the assets,
depreciation expense for the year would have been higher by
Rs.12,371,596/-.
25. Amount of Excise Duty deducted from the turnover is for sales made
during the year and the amount recognized separately in the statement
of Profit & Loss is related to the difference between the closing stock
and opening stock.
26. Insurance Premium of Rs.3,823,586/- (Previous Year Rs.3,801,438/-)
on Keyman Insurance Policy has been charged to Profit & Loss. Maturity
value of such policies will be accounted for on receipt basis.
27. Following reimbursements from "06196375 Cables Limited" (formerly
AEI Cables Limited), United Kingdom for the portion of expenses
attributable to them have been netted off from respective account
heads:
28. "Related party disclosures", for the year ended 31s1 March, 2015, as
required by Accounting Standard-18 ("AS-18") are given below:
Relationships:
i) Subsidiaries of the Company:
"06196375 Cables Limited" (formerly AEI Cables Limited), United Kingdom
(in Administration)
AEI Power Cables Limited, United Kingdom
ii) Associate of the Company:
Paramount Wires & Cables Limited (upto 26th May, 2014)
iii) Other related parties in the Group where common control exists:
Sanjay Aggarwal (HUF)
Sandeep Aggarwal (HUF)
S.S. Aggarwal (HUF)
April Investment & Finance Private Limited Worth Finance & Leasing
Private Limited Paramount Telecables Limited
S.S. Aggarwal Foundation
iv) Key Managerial Personnel:
Shri Sanjay Aggarwal, Chairman and CEO Shri Sandeep Aggrawal, Managing
Director
Shri Shambhu Kumar Agarwal, Chief Financial Officer (w.e.f 1st October,
2014)
Ms. Tannu Sharma,Company Secretary (w.e.f 1st October, 2014)
v) Relatives of Key Managerial Personnel with whom transactions have
taken place:
Shri Dhruv Aggarwal
Shri Tushar Aggarwal
Ms. Parul Aggarwal
vi) Enterprises over which relatives of Key Managerial Personnel have
significant influence and with whom transactions have taken place:
Paramount Wires & Cables Limited (w.e.f 27th May, 2014)
Surya Laboratories Private Limited (w.e.f 1st April, 2014)
b. Non-Financial Transactions:
i. Mr. Sanjay Aggarwal and Mr. Sandeep Aggarwal have given personal
guarantees to banks/financial institutions for Company's borrowings and
also have pledged their share holding in the company with banks.
ii. Guarantee of Rs.10,000,000/- (Previous Year Rs.10,000,000/-) given
to a Bank for credit facilities sanctioned to Paramount Wires & Cables
Limited. Credit facilities availed by the said company as on 31.03.2015
Rs.867,329/- (Previous year Rs. 7,586,617/-).
iii. The Company has executed a Parental Guarantee of Rs.Nil (sterling
pounds Nil) [Previous Year Rs. 1,634,655,000/- (sterling pounds
1,65,00,000/-)] given to a Bank for credit facilities ((sanctioned
limit (sterling pounds 11,500,000/-)) sanctioned to "06196375 Cables
Limited" (formerly AEI Cables Limited), United Kingdom (Subsidiary).
iv. Paramount Telecables Limited has given its property as collateral
by way of 2nd charge to the banks of the company.
v. The remuneration does not include Gratuity and Provision for Leave
Encashment under Accounting Standard -15 (Revised) and personal
accident insurance premium, since same is not available for individual
employees.
29. In opinion of the management Company's business activity mainly
falls within a single primary business segment "Cables", the
disclosures requirements of Accounting Standard-17 ("AS-17") "Segment
Reporting" are not applicable.
30. Contingent Liabilities & Commitments
(to the extent not provided for) Figures in Rs.
Contingent Liabilities
Particulars As At 31st
March, 2015
31. Claims Against the Company
not acknowledged as Debt 8,970,854
32. Guarantees
i. Financial Bank Guarantees
outstanding 15,255,296
ii. Guarantee of Rs.10,000,000/-
(Previous Year Rs.10,000,000/-)
given to a Bank for credit
facilities sanctioned to
Paramount Wires & Cables Ltd.
* Credit Facilities availed by
Paramount Wires & Cables Ltd. 867,329
iii. Parental Guarantee of ' Nil
(sterling pounds Nil)
[Previous Year Rs. 1,634,655,000/-
(sterling pounds £1,65,00,000/-)]
given to a Bank for credit
facilities ((sanctioned limit
(sterling pounds 11,500,000/-))
sanctioned to "06196375 Cables
Limited" (formerly AEI Cables
Limited), United Kingdom
(Subsidiary).
* Credit Facilities availed (Rs.) -
(Sterling
Pound £) -
33. Duties & Taxes
i. Income Tax
* Demands under appeal 44,298,650 -
* Matter which have been
decided in favour of the
Company in first appeal
stage, however, Income tax
department has filed appeal
against orders of first
appellate authority. 27,008,740 71,307,390
ii. Excise demands under appeal 87,307,710
iii. Service tax demands under appeal 22,108,874
iv. Custom duty demand due to
denial of concessional custom
duty, under appeal 6,434,896
34. Other money for which
company is contingently liable
i. Unutilised Letter of Credits 33,400,477
ii. Outstanding Bill discounted 94,312,312
iii Right of recompense of CDR
lenders for reliefs/ Amount
sacrifices/waivers extended by
respective CDR unascertainable
lenders to the company.
iv. Letter of demand from a bank due
to guarantee given for borrowings (Rs.) 33,733,615
of "06196375 Cables Limited"
(formerly AEI Cables Limited),
United Kingdom (Subsidiary).
In opinion of the company
the amount of demand is yet
to be finalised and agreed by the
company. (This is co guaranteed
by the Chairman and CEO and
Managing Director of the
Company in their individual
capacity due to which company
expects no final liability
will arise on the company).
-
(Sterling 345,846
Pound)
35. Commitments
i. Estimated amount of contracts (net of advances)
remaining to be executed on Capital Account. 2,067,000
Particulars As At 31st
March, 2014
31. Claims Against the Company
not acknowledged as Debt 8,822,654
32. Guarantees
i. Financial Bank Guarantees
outstanding 33,661,802
ii. Guarantee of Rs.10,000,000/-
(Previous Year Rs.10,000,000/-)
given to a Bank for credit
facilities sanctioned to
Paramount Wires & Cables Ltd.
* Credit Facilities availed by
Paramount Wires & Cables Ltd. 7,586,617
iii. Parental Guarantee of ' Nil
(sterling pounds Nil)
[Previous Year Rs. 1,634,655,000/-
(sterling pounds £1,65,00,000/-)]
given to a Bank for credit
facilities ((sanctioned limit
(sterling pounds 11,500,000/-))
sanctioned to "06196375 Cables
Limited" (formerly AEI Cables
Limited), United Kingdom
(Subsidiary).
* Credit Facilities availed 5,646,990
57,000
33. Duties & Taxes
i. Income Tax
* Demands under appeal
* Matter which have been
decided in favour of the
Company in first appeal
stage, however, Income tax
department has filed appeal
against orders of first
appellate authority. 27,008,740 27,008,740
ii. Excise demands under appeal 79,448,401
iii. Service tax demands under appeal 22,593,046
iv. Custom duty demand due to
denial of concessional custom
duty, under appeal 6,434,896
34. Other money for which
company is contingently liable
i. Unutilised Letter of Credits 112,518,884
ii. Outstanding Bill discounted 81,477,573
iii Right of recompense of CDR
lenders for reliefs/
sacrifices/waivers extended by Amount
respective CDR
lenders to the company.
unascertainable
iv. Letter of demand from a
bank due to guarantee given
for borrowings of "06196375
Cables Limited"
(formerly AEI Cables Limited),
United Kin gdom (Subsidiary).
In opinion of the company
the amount of demand is yet
to be finalised and agreed
by the company.
(This is co guaranteed
by the Chairman and CEO and
Managing Director of the Company
in their individual capacity
due to which company expects
no final liability will arise -
on the company).
35. Commitments
i. Estimated amount of contracts (net of advances) 8,270,000
remaining to be executed on Capital Account.
36. Outstanding 1% Foreign Currency Convertible Bonds (FCCBs)
amounting to USD 7.5 million were due for redemption on 23rd November,
2011 and are yet to be redeemed. The Company was to redeem these FCCBs
at a Premium equal to 145.54% of the outstanding principal amount. The
said premium amounts to Rs.239,014,509/- (Gross of tax). A winding up
petition was filed against the Company on behalf of the FCCB holders
which has been dismissed by the court during the year.
37. Going Concern:
The company has recorded a net loss of Rs.1,031,384,218/- for the year
and has accumulated losses of Rs.3,164,680,113/- as at 31st March,
2015, resulting in negative net worth. The company has also over dues
in payments of interest and redemption amount of Foreign Currency
Convertible Bonds (FCCBs) and interest and term loans installments to
banks and other working capital facilities from banks. The management
is confident that the company will be able to generate profits in
future years and meet its financial obligations as may arise.The
Management is also exploring inducting financial investor/s in the
company and/or joint venture with foreign companies. The accompanying
financial statements have been prepared on a going concern basis based
on cumulative impact of following mitigating factors:
a) The company has not over dues in payment of statutory dues or its
trade creditors etc.
b) CDR package was approved during financial year 2010-11 and further
"Rework Package" has been approved by CDR- EG vide Letter of Approval
(LOA) dated 11th July, 2012. The Company has again proposed banks to
reschedule term loans repayments.
c) The Company and promoters have undertaken to raise and had raised
adequate finances by way of disposal of assets and induction of fresh
funds by promoters and/or promoter group companies. The Management is
also exploring inducting financial investor in the company and/or joint
venture with foreign companies.
d) The Company has strong order book position.
38. Company has been registered with the Board for Industrial and
Financial Reconstruction (BIFR) under section 15 (1) of Sick Industrial
Companies (Special Provisions) Act, 1985 vide order dated 31.10.2013,
BIFR has restrained company from disposing of or alienating in any
manner any fixed assets of the Company without consent of BIFR.
39. Name of AEI Cables Limited, United Kingdom was changed to
"06196375 Cables Limited" w.e.f. 28th February, 2014. This Company is
"in Administration" (as per UK laws).
40. Previous Year's figures have been regrouped / rearranged wherever
necessary
Mar 31, 2014
1.1 Rights, preferences and restrictions attached to Equity Shares
Equity Shares : The company has one class of equity shares having a par
value of Rs. 2/- per share. Each shareholder is eligible for one vote per
share held. The dividend proposed by the Board of Directors is subject
to the approval of the shareholders in the ensuing Annual General
Meeting, except in case of interim dividend. In the event of
liquidation, the equity shareholders are eligible to receive the
remaining assets of the company after distribution of all preferential
amounts, in proportion to their shareholdings.
Rights, preferences and restrictions attached to 0% Non-Convertible
Redeemable Preference Shares (NCRPS)
Rate of Dividend: 0% rate of dividend. NCRPS are not convertible in
equity shares. Redeemable on day and date falling next to date of
expiry of a period of 10 years calculated from the date of allotment of
these shares. Option of an earlier redemption after expiry of period of
6 months shall be open to Board and can be made by a Board resolution
to this effect passed in a duly convened meeting and when consented by
the NCRPS shareholders, where the premium payable on redemption shall
be adjusted proportionately. Redemption Value & Premium: The redemption
premium shall be @ 50% of par value and thereby the redemption value
shall be 150% of par value after 10 (Ten) years term. There is no right
to vote in general. The voting rights shall be restricted to the
matters concerning their interest only. Right to share of Assets: In
the event of winding up of the Company, the NCRPS shareholders shall be
entitled to share of assets of the Company in proportion of the
preference share capital to aggregate of total paid up capital after
settlement of all the liabilities of the Company. The NCRPS
shareholders shall have a preferential right on the assets of Company
over the Equity shareholders while distribution of assets among
shareholders in the event of winding up of Company.
1.2.1 Nil (Previous Year 32,206,500) Equity Shares of par value of Rs.
2/- each have been allotted on Preferential basis at Securities Premium
of Rs. 0.30 per share as per SEBI (ICDR) regulations, 2009 and as amended
from time to time in terms of Regulation 10(2) of SEBI (SAST)
Regulations, 2011.
1.2.2 Equity Shares of par value of Rs.2/- each have been allotted to
warrant holders at Securities Premium of Rs.11/- each upon exercise of
option by them.
1.2.3 Nil (Previous Year 765,000) Preference Shares of par value of
Rs.100/- each have been allotted at par to M/s Paramount Telecables
Limited.
2.1 Premium on redemption of FCCBs (Gross of tax) Rs. 229,607,788/-
(Previous Year Rs. Nil ) has been set off against Securities Premium
Account.
2.2 During the year Redemption Premium payable on prorata basis Rs.
3,825,000/- (Previous Year Rs. 20,959/-) on 0% Non- Convertible
Redeemable Preference share (NCRPS) has been charged to Securities
Premium Account.
2.3 In view of losses Capital Redemption Reserve required under Section
80 of the Companies Act, 1956 has not been created.
2.4 Are amortised over period of foreign currency monetary item or up
to 31st March, 2020, whichever is earlier.
3.1 Nature of Security
i Term Loan from Banks:-
Term loans from banks are secured by 1st pari-passu charge on present
and future fixed assets of the company and 2nd pari-passu charge on
present and future current assets of the Company. Further they are
secured through collateral by way of 2nd charge on a property owned by
a Corporate, personal guarantees of Mr. Sanjay Aggarwal and Mr. Sandeep
Aggarwal, Directors of the Company and pledge of 100% equity shares of
the company held by Promoters/Promoters Group Companies.
ii Term Loan from Financial Institution:-
Loan from Financial Institution is secured against surrender value/
maturity value of keyman insurance policy of Mr. Sanjay Aggarwal and
Mr. Sandeep Aggarwal, Directors of the Company.
iii Finance Lease Obligations:-
Hire Purchase Finance is secured against assets financed from it.
3.2 Period and Amount of Default in Repayment :-
Due to continuing losses and delays in monetization of an asset
stipulated in Corporate Debt Restructuring, EG approved Rework Package,
Company is in default as per details given below:
4.1 As required by Accounting Standard-22 (''AS-22'') in view of
existence of Carried forward losses and unabsorbed depreciation under
tax laws, Deferred Tax Assets have been recognised only to the extent
they are virtually certain to be realised.
5.1 Nature of Security
Working Capital facilities from Banks are secured by 1st Pari-Passu
charge by way of hypothecation on the entire current assets including
raw material, stocks in process, finished goods, consumable stores &
spares and receivables of the Company, 1st Pari-Passu charge on
company''s property situated at Prahaladpur, Bawana Road, Delhi, 2nd
Pari-Passu charge on other present and future fixed assets. Further
they are secured through collateral by way of 2nd charge on a property
owned by a Corporate, personal guarantees of Mr. Sanjay Aggarwal and
Mr. Sandeep Aggarwal, Directors of the Company and pledge of 100%
equity shares of the company held by Promoters/Promoters Group
Companies.
5.2 Period and amount of default:
 Working Capital Loans from banks are overdrawn to the extent of Rs.
97,434,093/- (Previous Year Rs. NIL) due to devolvement of Letter of
Credits since January, 2014.
 Interest on Working Capital Loans from banks are overdrawn to the
extent of Rs. 46,675,155/- (Previous Year Rs. NIL) due since October, 2013.
6.1 Period and Amount of Default in repayment and interest
i. Principal amount of Rs. 452,175,000/- of 1% Foreign Currency
Convertible Bonds (''FCCBs'') is overdue for repayment since 23rd
November, 2011. Interest on FCCBs Rs. 13,865,875/- due up to 31st
December, 2013 has also not been paid and is over due. Premium on
redemption of FCCB''s of Rs. 205,958,186/- is also over due for payment
since 23rd November, 2011.
ii. Refer Note 4.2 for default in repayment of Term Loans.
6.2 No amount is due as on 31st March, 2014 for credit to Investor
Education and Protection Fund (Fund). Amount remaining due after
adjustment of amounts to be claimed from the Company will be
transferred on the respective due dates to the Fund.
6.3 Land includes addition made due to revaluation as on 31st March,
1994 in erstwhile Paramount Cable Corporation Rs. 7650950
Building includes addition made due to revaluation as on 31st March,
1994 in erstwhile Paramount Cable Corporation Rs. 7406534 Amount of
Depreciation pertaining to revaluation in case of Buildings Rs. 110754
6.4 Title deeds of factory land at Prahladpur, Bawana Road, Delhi are
in the name of erstwhile Paramount Cable Corporation.
6.5 Title deeds of a pari of factory land measuring 954.50 sq. mtr. at
Prahladpur, Bawana Road, Delhi shown in Balance Sheet at Rs.2,386,250 are
yet to be registered in name of the Company.
6.6 Land (Freehold) of Rs. 7,886,689/- as of 31st March, 2014 situated
at Prahaladpur, Delhi is under acquisition as per the Land Acquisition
Act, 1894. The Company has decided to contest the acquisition
proceedings.
6.7 Carrying value of Assets acquired under hire purchase as on
31.03.2013 exclude the amount related to hire purchase agreement
settled during the current year.
6.8 As per changes made in AS 11 vide Companies (Accounting Standards)
Amendment Rules 2009, further amended vide Amendment Rules 2011, during
financial year 2008-09 the company exercised option of deferring
foreign exchange difference arising on long term foreign currency
monetary items viz ''FCCBs'', Foreign Currency Term Loan to the Profit
and Loss Account, in respect of accounting periods commencing on or
after December 22, 2006. As a result, such foreign exchange difference
relating to the acquisition of depreciable capital assets have been
adjusted with cost of such assets and would be depreciated over the
balance life of the assets and in other cases has been accumulated in
''FCMITDA''. Exchange loss (net) Rs. 20,448,000/- (Previous year exchange
loss (net) Rs. 11,664,000/-) has been adjusted in gross block of Fixed
Assets. Exchange difference on External Commercial Borrowing (ECBs)
raised for repurchasing FCCBs has been transferred to ''FCMITDA''.
7.1 Aggregate Provision for diminution in value of investments in
Paramount Holdings Limited, Cyprus has been made keeping in view that
step down subsidiary "06196375 Cables Limited" (formerly AEI Cables
Limited), United Kingdom is under Administration as per UK Laws and
negative net worth in AEI Power Cables Limited, United Kingdom. In case
of Associate, no provision for diminution in value is required since
the investment of Company has been sold off at book value subsequent to
the year end.
8.1 Managerial Remuneration of Rs. 9,032,489/- and Rs. 853,720/- to
Chairman & CEO and Managing Director for year ended 31st March, 2014
and for March, 2013 respectively, is as approved by the shareholders by
way of postal ballot. However, this is subject to final approval from
the Central Government.
8.2 The disclosures required under Accounting Standard 15 "Employee
Benefits" ("AS-15") are given below:
Defined Benefit Plan
The company is having following Defined Benefit Plans:
Gratuity (Funded)
Leave Encashment (Unfunded)
9.1 Amount of Excise Duty deducted from the turnover is for sales made
during the year and the amount recognized separately in the statement
of Profit & Loss is related to the difference between the closing stock
and opening stock.
9.2 Insurance Premium of Rs. 3,801,438/-(Previous Year Rs. 3,793,545/-) on
Keyman Insurance Policy has been charged to Profit & Loss. Maturity
value of such policies will be accounted for on receipt basis.
9.3 Following reimbursements from "06196375 Cables Limited" (formerly
AEI Cables Limited), United Kingdom for the portion
of expenses attributable to them have been netted off from respective
account heads: Figures in Rs. 28.1 Exceptional item of Rs. Nil (Previous
Year Rs. 208,201,325/-) is on account of write back of secured loan from
some banks upon one time settlement.
10.1 Exceptional item of Rs. Nil (Previous Year Rs.211,883,864/-) is on
account of profit on sale of assets (net of WDV and expenses)
consisting of factory land, building and some plant & machineries
situated at SP - 76, 77 & 77 A, Khushkhera Industrial Area, Alwar
(Rajasthan). These assets were sold as per the terms of approved CDR
Rework Package dated 11th July, 2012.
10.2 "06196375 Cables Limited" (formerly AEI Cables Limited), United
Kingdom, a step down subsidiary of the Company, is under
''Administration'' and AEI Power Cables Limited, United Kingdom has
negative net worth. In view of this development, management has made
following provisions pertaining to subsidiaries during the year:
11 "Related party disclosures", for the year ended 31st March, 2014, as
required by Accounting Standard-18 ("AS-18") are given below:
Relationships:
i) Subsidiaries of the Company:
Paramount Holdings Limited, Cyprus "06196375 Cables Limited"
(formerly AEI Cables Limited), United Kingdom (in Administration)
AEI Power Cables Limited, United Kingdom
ii) Associate of the Company: Paramount Wires & Cables Limited
iii) Other related parties in the Group where common control exists:
Sanjay Aggarwal (HUF)
Sandeep Aggarwal (HUF)
5.5. Aggarwal (HUF)
April Investment & Finance Private Limited
Worth Finance & Leasing Private Limited
Paramount Telecables Limited
s.s. Aggarwal Foundation
iv) Key Managerial Personnel:
Shri Sanjay Aggarwal, Chairman and CEO
Shri Sandeep Aggrawal, Managing Director
v) Relatives of Key Managerial Personnel with whom transaction have
taken place:
Smt. Kamla Aggarwal
Shri. Dhruv Aggarwal
Shri. Tushar Aggarwal
Smt. Shashi Aggarwal
Smt. Archana Aggarwal
Ms Parul Aggarwal
b) Non-Financial Transactions:
i. Mr. Sanjay Aggarwal and Mr. Sandeep Aggarwal have given personal
guarantees to banks/financial institutions for Company''s borrowings and
also have pledged their share holding in the company with banks.
ii. Guarantee of Rs. 10,000,000/-(Previous Year Rs. 10,000,000/-) given to
a Bank for credit facilities sanctioned to Paramount Wires & Cables
Limited. Credit facilities availed by the said company as on
31.03.2014Rs.7,586,617/- (Previous year Rs. 7,153,292/-).
iii. The Company has executed a parental guarantee of Rs. 1,634,655,000/-
(sterling pounds 16,500,000) (Previous Year Rs. 1,347,885,000/- (sterling
pounds 16,500,000) given to a Bank for credit facilities sanctioned to
its wholly owned subsidiary, "06196375 Cables Limited" (formerly AEI
Cables Limited), United Kingdom. Credit facilities availed by the said
company as on 31.03.2014 was Rs. 5,646,990/- (sterling pounds 57,000)
(Previous year Rs.805,231,504/- (sterling pounds 9,858,263).
iv. Paramount Telecables Limited has given its property as collateral
by way of 2nd charge to the banks of the company.
v. The remuneration does not include Gratuity and Provision for Leave
Encashment under Accounting Standard -15 (Revised) and personal
accident insurance premium ,since same is not available for individual
employees.
12 Future lease obligation by way of lease rental:
Fixed Assets taken on lease on or after April 1, 2001 include motor
vehicles at an aggregate cost of Rs. 57,61,531/- (Previous year
Rs. 5,761,531/-) with future lease obligation by way of lease rental
as follows:
12.1 Operating Leases:
The Company has entered into lease transactions during the current
financial year mainly for leasing of storage/office premises and
company leased accommodations for its employees for periods up to 10
years. Terms of Lease include terms of renewal, increase in rents in
future periods and terms of cancellation. There are no subleases. The
Operating lease payments recognized in the Profit & Loss account amount
to Rs. 22,064,899/- (Previous year Rs. 22,867,167/-) for the leases, which
commenced on or after April 1, 2001. Minimum lease payments under
non-cancellable operating leases are:
13 In opinion of the management Company''s business activity mainly
falls within a single primary business segment "Cables", the
disclosures requirements of Accounting Standard-17 ("AS-17") "Segment
Reporting" are not applicable.
14 Contingent Liabilities & Commitments (to the extent not provided for)
Figures in ''Rs
Particulars As at 31st As at 31st
March 2014 March 2014
Contingent Liabilities
Claims Against the Company not acknowledged 8,822,654 6,097,504
as Debt
Guarantees
i. Financial Bank Guarantees outstanding 33,661,802 46,986,124
ii. Guarantee of Rs. 10,000,000/- (Previous
Year Rs. 10,000,000/-) given to a Bank for
credit facilities sanctioned to Paramount
Wires & Cables Ltd. (Associate)
- Credit Facilities availed by Paramount
Wires & Cables Ltd. 7,586,617 7,153,292
iii. Parental Guarantee of Rs. 1,634,655,000/-
(sterling pounds 16,500,000/-) [Previous Year
Rs 1,347,885,000/- (sterling pounds 1,65,00,000/
given to a Bank for credit facilities
(sanctioned limit (sterling pounds 11,500,000/-
sanctioned to "06196375 Cables Limited"
(formerly AEI Cables Limited), United Kingdom
(Subsidiary).
- Credit Facilities availed (Rs) 5,646,990 805,321,504
(£) 57,000 9,858,263
iv. Right of recompense of CDR lenders for Amount Amount
reliefs / sacrifices / waivers extended by unascer- unascer-
tainable tainable
respective CDR lenders to the company.
15. Outstanding 1% Foreign Currency Convertible Bonds (FCCBs) amounting
to USD 7.5 million were due for redemption on 23s1 November, 2011 and
are yet to be redeemed. The Company was to redeem these FCCBs at a
Premium equal to 145.54% of the outstanding principal amount. The said
premium amounts to Rs. 229,607,788/-(Gross of tax). A winding up petition
has been filed against the Company on behalf of the the FCCB holders,
wherein an interim order has been passed by the Hon''ble High Court of
Delhi restricting the Company from alienation, disposal or creation of
third party interest or charge on any of its immovable assets. The
Company is contesting the case. The matter is presently subjudice.
16. Till Previous Year Company had not provided Premium due on
redemption on FCCBs. During the year Company has provided Premium due
on redemption on FCCBs Rs. 229,607,788/- (Gross of Tax) and the same has
been adjusted against the Securities Premium Account. Had Company
followed earlier practice of non provision of Premium due on redemption
on FCCBs. Current Liabilities would have been lower by Rs. 229,607,788/-
and balance in Securities Premium Account would have been higher by Rs.
229,607,788/-.
17. Going Concern :
The company has recorded a net loss of Rs. 1,034,334,169/- for the year
and has accumulated losses of Rs. 2,123,195,108/- as at 31st March, 2014,
resulting in negative net worth. The company has also defaulted in
payments of interest and redemption amount of Foreign currency
Convertible Bonds (FCCBs) and interest and term loans installments to
banks and other working capital facilities from banks. A winding up
petition has also been filed against the Company on behalf of the FCCB
holders, whereas an interim order has been passed by the Hon''ble High
Court of Delhi restricting the Company from alienation, disposal or
creation of third party interest or charge on any of its immovable
assets. The management is confident that the company will be able to
generate profits in future years and dispose off some assets to meet
its financial obligations as may arise. The accompanying financial
statements have been prepared on a going concern basis based on
cumulative impact of following mitigating factors:
a) The company has not defaulted in payment of statutory dues or its
trade creditors etc.
b) CDR package was approved during financial year 2010-11 and further
"Rework Package" has been approved by CDR-EG vide Letter of Approval
(LOA) dated 11th July, 2012. The Company has again proposed banks to
reschedule term loans repayments.
c) The Company and promoters have undertaken to raise and have raised
adequate finances by way of disposal of assets and induction of fresh
funds by promoters and/or promoter group companies.
d) The Company is contesting the Winding up petition filed against it.
The matter is presently subjudice.
e) The Company has strong order book position.
18. Company has been registered with the Board for Industrial and
Financial Reconstruction (BIFR) under section 15 (1) of Sick Industrial
Companies (Special Provisional Act, 1985 vide order dated 31.10.2013,
BIFR has restrained company from disposing of or alienating in any
manner any fixed assets of the Company without consent of BIFR.
19. Name of AEI Cables Limited, United Kingdom was changed to "06196375
Cables Limited" w.e.f. 28th February, 2014. This Company is "in
Administration" (as per UK laws).
20. Previous Year''s figures have been regrouped / rearranged wherever
necessary.
Mar 31, 2013
1.1 Amount of Excise Duty deducted from the turnover is for sales made
during the year and the amount recognized separately in the statement
of Profit & Loss is related to the difference between the closing stock
and opening stock.
1.2 Insurance Premium of Rs. 3,793,545/-(Previous Year Rs. 3,793,545/-) on
Keyman Insurance Policy has been charged to Profit & Loss. Maturity
value of such policies will be accounted for on receipt basis.
2.1 Exceptional item of Rs. 208,201,325/- for the year ended 31st March,
2013 is on account of write back of secured loan from some banks upon
one time settlement.
2.2 Exceptional item of Rs. 211,883,864/- for the year ended 31st March,
2013 is on account of profit on sale of assets (net of WDV and
expenses) consisting of factory land, building and some plant &
machineries situated at SP - 76 ,77 & 77 A, Khushkhera Industrial Area,
Alwar (Rajasthan). These assets were sold as per the terms of approved
CDR Rework Package dated 11th July, 2012.
3 ''Related party disclosures'', for the year ended 31st March, 2013, as
required by Accounting Standard-18 (''AS-18'') are given below:
Relationships:
i) Subsidiaries of the Company:
Paramount Holdings Limited, Cyprus AEI Cables Limited, United Kingdom
AEI Power Cables Limited, United Kingdom
ii) Associate of the Company:
Paramount Wires & Cables Limited
iii) Other related parties in the Group where common control exists:
Sanjay Aggarwal (HUF)
Sandeep Aggarwal (HUF)
S.S. Aggarwal (HUF)
April Investment & Finance Private Limited
Worth Finance & Leasing Private Limited
Paramount Telecables Limited
S.S. Aggarwal Foundation
iv) Key Managerial Personnel:
Shri Sanjay Aggarwal, Chairman and CEO Shri Sandeep Aggrawal, Managing
Director
v) Relatives of Key Managerial Personnel with whom transaction have
taken place:
Smt. Kamla Aggarwal Shri. Dhruv Aggarwal Shri. Tushar Aggarwal Smt.
Shashi Aggarwal Smt. Archana Aggarwal Ms Parul Aggarwal
4.1 Operating Leases:
The Company has entered into lease transactions during the current
financial year mainly for leasing of storage / office premises and
company leased accommodations for its employees for periods upto 10
years. Terms of Lease include terms of renewal, increase in rents in
future periods and terms of cancellation. There are no subleases. The
Operating lease payments recognized in the Profit & Loss account amount
to Rs. 22,640,818/- (Previous year Rs. 22,867,167/-) for the leases, which
commenced on or after April 1, 2001. Minimum lease payments under
non-cancellable operating leases are:
5 In opinion of the management Company''s business activity mainly
falls within a single primary business segment Rs.Cables'', the
disclosures requirements of Accounting Standard-17 (''AS-17'') "Segment
Reporting" are not applicable.
6. Outstanding 1% Foreign Currency Convertible Bonds (FCCBs)
amounting to USD 7.5 million were due for redemption on 23rd November,
2011 and are yet to be redeemed. The Company was to redeem these FCCBs
at a Premium equal to 145.54% of the outstanding principal amount. The
said premium amounts to Rs. 207,976,137/-(Gross of tax) and the same has
not been provided. A winding up petition has been filed against the
Company on behalf of the the FCCB holders, wherein an interim order has
been passed by the Hon''ble High Court of Delhi restricting the Company
from alienation, disposal or creation of third party interest or charge
on any of its immovable assets. The Company is contesting the case.
The matter is presently subjudice. Pending settlement /outcome of Court
case no provision for premium on Redemption has been made in the
accounts. The premium, if paid, would be adjusted against the
Securities Premium Account ,hence ,will not have any effect on loss for
the year.
7. Going Concern :
The company has recorded a net loss of Rs. 46,430,784/- for the year and
has accumulated losses of Rs. 1,088,860,938/- as at 31st March, 2013,
resulting in substantial erosion of the net worth. The company has also
defaulted in payments of interest and redemption amount of Foreign
currency Convertible Bonds (FCCBs). A winding up petition has also been
filed against the Company on behalf of the FCCB holders, whereas an
interim order has been passed by the Hon''ble High Court of Delhi
restricting the Company from alienation, disposal or creation of third
party interest or charge on any of its immovable assets. The management
is confident that the company will be able to generate profits in
future years and dispose off some assets to meet its financial
obligations as may arise. The accompanying financial statements have
been prepared on a going concern basis based on cumulative impact of
following mitigating factors:
a) The company has not defaulted in payment of statutory dues or its
trade creditors etc.
b) CDR package was approved during financial year 2010-11 and further
"Rework Package" has been approved by CDR-EG vide Letter of Approval
(LOA) dated 11th July, 2012. As per the Rework Package, there is no
default in payment of Principal and/or interest to banks as on date.
c) The Company and promoters have undertaken to raise and have raised
adequate finances by way of disposal of assets and induction of fresh
funds by promoters and/or promoter group companies.
d) The Company is contesting the Winding up petition filed against it.
The matter is presently subjudice.
8. Previous Year''s figures have been regrouped/rearranged wherever
necessary.
Mar 31, 2012
1.1 Rights, preferences and restrictions attached to Equity Shares
Equity Shares : The company has one class of equity shares having a par
value of Rs 2 /- per share. Each shareholder is eligible for one vote
per share held. The dividend proposed by the Board of Directors is
subject to the approval of the shareholders in the ensuing Annual
General Meeting, except in case of interim dividend. In the event of
liquidation , the equity shareholders are eligible to receive the
remaining assets of the company after distribution of all preferential
amounts, in proportion to their shareholdings.
2.1 Nature of Security :-
i Term Loan from Banks:-
Term loans from banks are secured by 1st pari-passu charge on present
and future fixed assets of the company and 2nd pari-passu charge on
present and future current assets of the Company. Further they are
secured through collateral by way of 2nd charge on a property owned by
a Corporate, personal guarantees of Mr. Sanjay Aggarwal and Mr. Sandeep
Aggarwal, Directors of the Company and pledge of 100% equity shares of
the company held by Promoters/ Promoters Group Companies.
ii Term Loan from Financial Institution:-
Loan from Financial Institution is secured against surrender value/
maturity value of keyman insurance policy of Mr. Sanjay Aggarwal and
Mr. Sandeep Aggarwal, Directors of the Company.
iii Finance Lease Obligations :-
Hire Purchase Finance is secured against assets financed from it.
2.2 Period and Amount of Default in repayment :-
i Principal amount of Rs 360,616,477 (Previous Year Rs Nil) of Term Loan
from Banks included in Current Maturities of Term Loan were due for
repayment on 31st March, 2012 and have not been paid. Corporate Debt
Restructuring- EG has approved "Rework Package" vide letter of Approval
(LOA) dated 11th July, 2012. As per the Rework Package, there is no
default as on date.
ii During previous year interest of Rs 3,964,725 on loan from a
financial institution overdue as on 31st March, 2011 was subsequently
paid during F.Y. 2011-12.
iii During previous year, Company defaulted in payment of interest of Rs
157,673,859/- and principal of Rs 832,808,360/- to banks on various
dates. Corporate Debt Restructuring (CDR) for the company was approved
by CDR-EG and LOA was issued on 22nd November, 2010. The CDR inter-alia
includes restructuring of repayment schedule, reduction in interest
rates, additional securities and pledge of 100% promoter's
shareholding. Master Restructuring Agreement (MRA) has been executed by
all the CDR lenders and the CDR Scheme has been implemented. The banks
that were not part of the CDR scheme, have also restructured their
credit facilities in line with CDR scheme with varied terms and
conditions regarding repayment schedule and interest rates. As at 31st
March, 2011 there was no default of interest and principle to the
banks.
3.1 As required by Accounting Standard-22 ('AS-22') in view of
existence of Carried forward losses and unabsorbed depreciation under
tax laws, Deferred Tax Assets have been recognised only to the extent
they are virtually certain to be realised.
4.1 Nature of Security :-
Working Capital facilities from Banks are secured by 1st Pari-Passu
charge by way of hypothecation on the entire current assets including
raw material, stocks in process, finished goods, consumable stores &
spares and receivables of the Company, 1st Pari-Passu charge on
company's property situated at Prahaladpur, Bawana Road, Delhi, 2nd
Pari-Passu charge on other present and future fixed assets. Further
they are secured through collateral by way of 2nd charge on a property
owned by a Corporate, personal guarantees of Mr. Sanjay Aggarwal and
Mr. Sandeep Aggarwal, Directors of the Company and pledge of 100%
equity shares of the company held by Promoters/ Promoters Group
Companies.
5.1 1% Foreign Currency Convertible Bonds ('FCCBs') had an option
to convert bonds into Equity Shares at Conversion Price Rs 42.60 per
share(adjusted for sub-division of equity shares & subsequent reset of
conversion price pursuant to Clause 5 of the Terms & Conditions of
Bonds) at a fixed exchange rate ( Rs 44.99=US$1) between 22nd November,
2006 and 13th November, 2011. Unless previously converted, redeemed or
repurchased or cancelled, the Company is liable to redeem these bonds
at 145.54 percent of the principal amount on 23rd November, 2011.
5.2 Period and Amount of Default in repayment and interest :-
i. Principal amount of Rs 385,275,000/- of 1% Foreign Currency
Convertible Bonds ('FCCBs') is overdue for repayment since 23rd
November,2011. Interest on FCCBs Rs 675,042/- due as on 31st
December,2011 has also not been paid and is over due. Premium on
redemption of FCCB's of Rs 195,636,955/- is also over due for payment
since 23rd November,2011.
ii. Refer Note 4.2 for default in repayment of Term Loans.
6.1 No amount is due as on 31st March, 2012 for credit to Investor
Education and Protection Fund (Fund). Amount remaining due after
adjustment of amounts to be claimed from the Company will be
transferred on the respective due dates to be Fund.
7.1 Land includes addition made due to revaluation as on 31st March,
1994 in erstwhile Paramount Cable Corporation Rs 7,650,950 Building
includes addition made due to revaluation as on 31st March, 1994 in
erstwhile Paramount Cable Corporation Rs 7,406,534 Amount of
Depreciation pertaining to revaluation in case of Buildings Rs 132,514
7.2 Title deeds of factory land at Prahladpur, Bawana Road, Delhi-110
042 are in the name of erstwhile Paramount Cable Corporation.
7.3 Title deeds of a pari of factory land measuring 954.50 sq. mtr. at
Prahladpur, Bawana Road, Delhi-110042 shown in Balance Sheet at
Rs 2,386,250 are yet to be registered in name of the Company.
7.4 Carrying value of Assets acquired under hire purchase as on
31.03.2011 exclude the amount related to hire purchase agreement settled
during the current year.
7.5 As per changes made in AS 11 vide Companies(Accounting Standards)
Amendment Rules 2009, further amended vide Amendment Rules 2011, during
financial year 2008-09 the company exercised option of deferring
foreign exchange difference arising on long term foreign currency
monetary items viz 'FCCBs', Foreign Currency Term Loan to the Profit
and Loss account, in respect of accounting periods commencing on or
after December 22, 2006. As a result, such foreign exchange difference
relating to the acquisition of depreciable capital assets have been
adjusted with cost of such assets and would be depreciated over the
balance life of the assets and in other cases has been accumulated in
'FCMITDA'. Exchange loss (net) Rs 23,607,000/-(Previous year exchange
gain (net)Rs 882,000/-) has been adjusted in gross block of Fixed Assets.
Exchange difference on External Commercial Borrowing (ECBs) raised for
repurchasing FCCBs has been transferred to 'FCMITDA'.
8.1 Although the book value of investments in subsidiary and associate
companies (book value amounting to Rs 166,021,133/- previous year
Rs 176,652,560/- ) is lower than the cost, In opinion of the management,
diminution in the value of investment in shares of Paramount Wires &
Cables Limited (Associate) and Paramount Holdings Limited (Subsidiary)
is temporary in nature considering in case of AEI Cables Limited,
United Kingdom CVA scheme has been implemented, business restructuring
undertaken , expected cash flows from operations, possibility of
successfully additional arranging finance from the bankers and /or
alternate finance providers and /or potential investors, orders in hand
and assets base .In case of Associate considering future prospects
,orders in hand and assets base of the investee company , no provision
for diminution in value is required.
9.1 Amount of Excise Duty deducted from the turnover is for sales made
during the year and the amount recognized separately in the statement
of Profit & Loss is related to the difference between the closing stock
and opening stock.
9.2 Insurance Premium of Rs 3,793,545/-(Previous Year Rs 3,793,545/-) on
Keyman Insurance Policy has been charged to Profit & Loss Account.
Maturity value of such policies will be accounted for on receipt basis.
10 "Related party disclosures", for the year ended 31st March,
2012, as required by Accounting Standard-18 ("AS-18") are given
below:
Relationships:
i) Subsidiaries of the Company:
Paramount Holdings Limited, Cyprus
AEI Cables Limited, United Kingdom
AEI Power Cables Limited, United Kingdom
ii) Associate of the Company:
Paramount Wires & Cables Limited
iii) Other related parties in the Group where common control exists:
Sanjay Aggarwal (HUF)
Sandeep Aggarwal (HUF)
S.S. Aggarwal (HUF)
April Investment & Finance Private Limited
Worth Finance & Leasing Private Limited
Paramount Telecables Limited
S.S. Aggarwal Foundation
iv) Functional Directors:
Mr. Sanjay Aggarwal Mr. Sandeep Aggarwal
v) Relatives of functional Directors:
Mrs. Kamla Aggarwal Mr. Dhruv Aggarwal Mr. Tushar Aggarwal Mrs. Shashi
Aggarwal Mrs. Archana Aggarwal Ms Parul Aggarwal
b) Non-Financial Transactions:
i. Mr. Sanjay Aggarwal and Mr. Sandeep Aggarwal have given personal
guarantees to banks/financial institutions for Company's borrowings and
also have pledged their share holding in the company with banks.
ii. Guarantee of Rs 10,000,000/-(Previous Year Rs 10,000,000/-) given to a
Bank for credit facilities given to Paramount Wires & Cables Limited.
Credit facilities availed by the said company as on 31.03.2012 Rs
9,301,250/- (Previous year Rs 8,780,673/-) for fund based limits and Rs Nil
(Previous year Rs NIL) for non-fund based limits.
iii. The Company has executed a parental guarantee in favour of One
North East, U.K., an agency of British Government responsible for
promoting investment in U.K., on behalf of its wholly owned subsidiary,
AEI Cables Limited for guaranteeing the repayment of Grant of
Rs 40,555,000/- (sterling pounds 500,000) (previous year Rs 35,601,250/-
(sterling pounds 500,000)) extended to it together with the interest at
the rate of 1.5 percentage points above the UK base rate of Bank of
England calculated from the date of first demand to AEI Cables Limited
till the date of actual payment, in case AEI Cables Limited fails to
observe the terms and conditions stipulated in the offer letter while
giving the Grant.
iv. The Company has executed a parental guarantee of Rs 1,338,315,000/-
(sterling pounds16,500,000) (Previous Year Rs 1,174,841,250/- (sterling
pounds 16,500,000) given to a Bank for credit facilities given to its
wholly owned subsidiary, AEI Cables Limited. Credit facilities availed
by the said company as on 31.03.2012 was Rs 817,106,908/- (sterling
pounds 10,074,059) (Previous year Rs 1,107,693,804 (sterling pounds
15,556,951).
v. Paramount Telecables Limited has given its property as collateral
by way of 2nd charge to the banks of the company.
vi. During the year Paramount Telecables Limited and Worth Finance &
Leasing Private Limited have been alloted 4,391,795 Equity Shares of
par value of Rs 2/- each at Securities Premium of Rs 11/- each upon
conversion of warrants. Full amount was received against this allotment
in previous year.
11.1 Operating Leases:
The Company has entered into lease transactions during the current
financial year mainly for leasing of storage / office premises and
company leased accommodations for its employees for periods upto 10
years. Terms of Lease include terms of renewal, increase in rents in
future periods and terms of cancellation. There are no subleases. The
Operating lease payments recognized in the Profit & Loss account amount
to Rs 22,867,167/- (Previous year Rs 23,361,456/-) for the leases, which
commenced on or after April 1, 2001. Minimum lease payments under
non-cancellable operating leases are:
11 In opinion of the management Company's business activity mainly
falls within a single primary business segment 'Cables', the
disclosures requirements of Accounting Standard-17 ("AS-17")
"Segment Reporting" are not applicable.
12 Contingent Liabilities & Commitments
(to the extent not provided for) Figures in Rs
Particulars As At As At
31st March, 31st March,
2012 2011
Contingent Liabilities
Claims Against the Company not acknowledged
as Debt 5,662,454 2,580,254
Guarantees
i. Financial Bank Guarantees outstanding 72,634,926 12,986,404
ii. Guarantee of Rs 10,000,000/- (Previous
Year Rs 10,000,000/-) given to a Bank for
credit facilities given to Paramount Wires
& Cables Ltd (Associate)
- Credit Facilities availed by Paramount
Wires & Cables Ltd. 9,301,250 8,780,673
iii. Parental guarantee in favour of One
North East, UK, an agency of British
Government responsible for promoting
investment in U.K., on behalf of its
wholly owned subsidiary, AEI Cables Limited
for guaranteeing the repayment of Grant
extended to it together with the interest
at the rate of 1.5 percentage points above
the UK base rate of Bank of England
calculated from the date of first demand to
AEI Cables Limited till the date of actual
payment, in case AEI Cables Limited fails
to observe the terms and conditions
stipulated in the offer letter while giving
the Grant.
- Grant Facilities availed by AEI
Cables Ltd. (Rs) 40,555,000 35,601,250
(GBP) 500,000 500,000
iv. Parental Guarantee of Rs 1,338,315,000/-
(sterling pounds 16,500,000/-)[Previous Year
Rs 1,174,841,250/- (sterling pounds
1,65,00,000/-)] given to a Bank for credit
facilities given to AEI Cables Limited
(Subsidiary).
- Credit Facilities availed by
AEI Cables Ltd. (Rs) 817,106,908 1,107,693,804
(GBP) 10,074,059 15,556,951
v. Right of recompense of CDR lenders for
reliefs/sacrifices/ waivers extended by
respective CDR lenders to the company.
Amount Amount
unascertainable unascertainable
Other money for which company is
contingently liable
i. Unutilised Letter of Credits 131,663,116 348,435,379
ii. Outstanding Bill discounted 155,435,607 -
iii. Income Tax
- Demand under appeal/rectification arising
out of disallowances and non-credit of tax
deduction at source 1,726,165 3,309,048
- Matter which have been decided in favour
of the Company in first appeal stage,
however, Income tax department has filed
appeal against orders of first appellate
authority. 27,008,740 28,734,905 30,317,788
iv. Excise demands under appeal 76,480,446 70,318,388
v. Service tax demands under appeal 24,760,595 1,328,068
vi. Custom duty demand due to denial of
concessional custom duty, under appeal 1,836,570 1,836,570
vii. Premium on Redemption of 1% Foreign
Currency Convertible Bonds (FCCBs) - 128,893,428
Commitments
i. Estimated amount of contracts (net of
advances) remaining to be executed on
Capital Account. - 22,500,000
13. Outstanding 1% Foreign Currency Convertible Bonds (FCCBs)
amounting to USD 7.5 million were due for redemption on 23rd November,
2011 and are yet to be redeemed. The Company was to redeem these FCCBs
at a Premium equal to 145.54% of the outstanding principal amount. The
said premium amounts to Rs 195,636,955/- (gross of tax) and the same has
not been provided. The Company has duly informed the FCCBs holders
about its financial position and is in discussion with the FCCBs
hofslders, through the trustee, for re-schedulement of payment due on the
outstanding FCCBs. In view of this redemption amount is subject to
re-scheduling / final settlement with FCCBs holders. The premium, if
paid, would be adjusted against the Securities Premium Account.
14. Going Concern :
The company has recorded a net loss of Rs 583,546,626/- for the year and
has accumulated losses of Rs 1,042,430,155/- as at 31st March, 2012,
resulting in substantial erosion of the net worth. During the year the
company has also defaulted in payments of interest and redemption
amount of Foreign currency Convertible Bonds (FCCBs) and principal
amount of term loan from banks. The management is confident that the
company will be able to generate profits in future years and dispose
off some assets to meet its financial obligations as may arise. The
accompanying financial statements have been prepared on a going concern
basis based on cumulative impact of following mitigating factors:
a) The company has not defaulted in payment of statutory dues or its
trade creditors etc.
b) CDR package was approved during previous year and further "Rework
Package" has been approved by CDR- EG vide Letter of Approval (LOA)
dated 11th July, 2012. As per the Rework Package, there is no default
in payment of Principal and/or interest to banks as on date.
c) The Company and promoters have undertaken to raise adequate finances
by way of disposal of assets and induction of fresh funds by promoters
and/or promoter group companies.
15 Previous Year's figures have been regrouped / rearranged wherever
necessary.
Mar 31, 2010
1. CONTINGENT LIABILITIES
i. Guarantee of Rs. 5,00,00,000/- (Previous Year Rs. 5,00,00,000/-)
given to a Bank for credit facilities given to Paramount Wires & Cables
Limited. Credit facilities availed by the said company as on 31.03.2010
Rs. 97,63,962/- (Previous year Rs.95,05,496/-) for fund based limits
and Rs. NIL (Previous year Rs.NIL) for non-fund based limits.
ii. The Company has executed a parental guarantee in favour of One
North East, UK, an agency of British Government responsible for
promoting investment in U.K., on behalf of its wholly owned subsidiary,
AEI Cables Limited for guaranteeing the repayment of Grant of Rs.
3,43,50,000/- (sterling pounds 5,00,000) (previous year Rs.
3,69,15,000/- (sterling pounds 5,00,000)) extended to it together with
the interest at the rate of 1.5 percentage points above the UK base
rate of Bank of England calculated from the date of first demand to AEI
Cables Limited till the date of actual payment, in case AEI Cables
Limited fails to observe the terms and conditions stipulated in the
offer letter while giving the Grant.
iii. Unused letter of credit outstanding Rs. 28,28,44,807/- (Previous
year Rs. 6,36,87,737/-)
iv. Financial Bank Guarantees outstanding Rs. 2,94,33,278/- (Previous
year Rs. 2,50,11,913/-)
v. Outstanding Bills discounted Rs. 12,10,44,102/- (Previous year Rs.
20,70,72,925/-).
vi. Effect of Income tax demands/disallowances against which
appeal/rectifications have been filed by the company is Rs.
2,95,18,775/- (Previous year Rs.31,05,522/-)
vii. Excise and Service tax demands under appeal Rs.
5,61,33,651/-(Previous year Rs. 2,73,32,535/-)
viii. Custom duty demand under appeal Rs. 18,36,570/- ( Previous year
Rs. NIL)
ix. Claim pending against company not acknowledged as debt Rs.
25,80,254/- ( Previous year Rs. NIL)
2. 1% Foreign Currency Convertible Bonds (FCCBs) have an option to
convert these bonds into Equity Shares at an initial conversion rate of
Rs.265/- per share (Rs.53/- per share post-split) at a fixed exchange
rate (Rs.44.99 = US$1). The conversion price will be reset on the
first, second and third anniversaries of the Bonds. The conversion
price has been reset on the first anniversary of the Bonds at Rs. 213
(Rs. 42.60 per share post-split). The reset conversion price can not be
lower than Rs. 213 (Rs. 42.60 per share post-split) or the applicable
reset floor price as prescribed by SEBI from time to time. The
conversion price will be subject to certain adjustments as detailed in
the offering circular such as dilution, bonus, dividends, right issue,
special dividend etc. Unless previously converted, redeemed or
repurchased or cancelled, the Company will redeem these bonds at 145.54
percent of the principal amount on 23rd November, 2011. Up to March 31,
2010 out of the total issue, FCCBs aggregating to USD 19.50 Million
have been repurchased at discount. Balance of FCCBs of USD 7.50
Million outstanding as on March, 31, 2010 have been included and
disclosed in the schedule of "Unsecured Loans". In view of these
developments the Company expects that no premium would be payable and
on that basis the same is not provided for. However, the premium, if
paid would be adjusted against the Securities Premium Account.
Accordingly maximum premium amount payable being Rs. 15,38,93,891/-
(Previous year Rs. 62,94,22,002/-) would be accounted for and adjusted
against Securities Premium Account in the year of such redemption or
repurchase or cancellation.
3. Estimated amount of contracts (net of advances) remaining to be
executed on capital account Rs. 15,25,67,000/- (Previous year Rs.
26,08,14,000/-)
4. i. Working Capital facilities from Banks are secured by 1st
Pari-Passu charge by way of hypothecation on the entire
current assets including raw material, stocks in process, finished
goods, consumable stores & spares and receivables of the Company and
2nd Pari-Passu charge on present and future fixed assets other than
land and building at Prahaladpur, Bawana Road, Delhi. Further they are
secured by personal guarantees of Shri Sanjay Aggarwal and Shri Sandeep
Aggarwal, Directors of the Company.
ii. Term loans from banks are secured by 1st pari-passu charge on
present and future fixed assets of the company other than land and
building at Prahaladpur, Bawana Road, Delhi and 2nd pari-passu charge
on present and future current assets of the Company. Further they are
secured by personal guarantees of Shri Sanjay Aggarwal and Shri Sandeep
Aggarwal, Directors of the Company.
iii. Hire Purchase Finance is secured against assets financed from it.
iv. Loan from Financial Institution is secured against surrender
value/ maturity value of keyman insurance policy of Shri Sanjay
Aggarwal and Shri Sandeep Aggarwal, Directors of the Company.
5. Fixed Deposits with banks amounting to Rs. 7,80,44,077/- (Previous
year Rs. 7,73,64,311/-) are under lien/custody with banks/ sales tax
department.
6. During the year the Company has allotted 5,000,000 (Fifty Lakhs)
Warrants on Preferential basis. The Warrant holders have option of
subscribing one equity shares of face value of Rs.2/- each per Warrant
at a price of Rs.13/- per equity share any time up to 8th June, 2011.
Proceeds from issue of warrants have been utilized as per objects of
the issue.
7. Interest on working capital facilities has been shown net of
interest earned by the company Rs. 1,08,90,394/-(Previous Year
Rs.1,66,65,698/-).
8. During the year 1% Foreign Currency Convertible Bonds (FCCBs) of
USD 19.50 million have been bought back. This has resulted in profit of
Rs. 45,64,91,290/- (Previous Year Rs.NIL) which has been included under
Other Income. Prorata exchange difference on these FCCBs
transferred to Foreign Currency Monetary Item Translation Difference
Account ("FCMITDA") has been written off to Profit & loss account.
9. As per changes made in AS 11 vide Companies(Accounting Standards)
Amendment Rules 2009, during financial year 2008-09 the company
exercised option of deferring foreign exchange difference arising on
long term foreign currency monetary items viz FCCBs, Foreign Currency
Term Loan to the Profit and Loss account, in respect of accounting
periods commencing on or after December 22, 2006. As a result, such
foreign exchange difference relating to the acquisition of depreciable
capital assets have been adjusted with cost of such assets and would be
depreciated over the balance life of the assets and in other cases has
been accumulated in FCMITDA. Exchange gain (net) Rs.
5,52,42,598/-(Previous year Exchange Loss(Net) Rs. 9,61,63,200/-) has
been adjusted in gross block of fixed assets.
Exchange difference on External Commercial Borrowing (ECBs) raised for
repurchasing FCCBs has been transferred to FCMITDA
10. Insurance Premium of Rs.37,93,545/- (Previous Year Rs.
37,96,025/-) on Keyman Insurance Policy has been charged to Profit &
Loss Account. Maturity value of such policies will be accounted for on
receipt basis.
11. Amount of Excise Duty deducted from the turnover is for sales made
during the year and the amount recognized separately in the statement
of Profit & Loss is related to the difference between the closing stock
and opening stock.
12. In view of the inadequate profit, minimum managerial remuneration
as approved and as per the Companies Act, 1956 has been paid /
provided.
13. Sundry Debtors include due from Paramount Wires & Cables Limited,
in which Company holds 44.49% of shareholding, Rs. 5,58,62,311/-
(Previous year Rs. 25,75,30,697/-)
14. Sundry Debtors include due from AEI Cables Limited, a subsidiary
of the company Rs.10,28,93,415/- (Previous year Rs 4,84,31,738/-) and
Sundry Creditors include due to AEI Cables Limited, a subsidiary of the
company Rs. 19,61,403/-(Previous year Rs 4,90,622/-).
15. Loans & advances include due from Paramount Holdings Limited, a
subsidiary of the company Rs. 23,73,880/- (Previous year Rs 6,33,225/-)
Maximum Balance outstanding during the year Rs. 23,73,880/- (Previous
year Rs. 6,33,225/-).
16. Loans & Advances include Security Deposit given to Paramount
Telecables Limited for premises taken on rent Rs. 1,80,00,000/-
(Previous year Rs. 1,80,00,000) Maximum Balance outstanding during the
year Rs. 1,80,00,000/- (Previous year Rs. 1,80,00,000/-).
17. Loans and Advances include recoverable from Shri Sanjay Aggarwal,
Chairman & CEO and Shri Sandeep Aggarwal, Managing Director of the
Company on account of remuneration paid in excess of minimum
remuneration due to unforeseen losses during the year Rs. NIL (Previous
year Rs.6,95,776). Maximum Balance outstanding during the year Rs.
6,95,776/- (Previous year Rs. 6,95,776/-).
Note: Security deposit for premises taken on rent by the Company and
adjustable/refundable as per terms & conditions. Paramount Telecables
Limited has not invested in shares of the company.
18. In opinion of the management Companys business activity mainly
falls within a single primary business segment `Cables, the
disclosures requirements of Accounting Standard-17 ("AS-17") "Segment
Reporting" are not applicable.
(b) Operating Leases- Other than non-cancelable
The Company has entered into lease transactions during the current
financial year mainly for leasing of factory / office premises and
company leased accommodations for its employees for periods upto 10
years. Terms of Lease include terms of renewal, increase in rents in
future periods and terms of cancellation. The Operating lease payments
recognized in the Profit & Loss account amount to Rs. 2,53,35,284/-
(Previous year Rs. 2,70,40,041/-) for the leases, which commenced on or
after April 1, 2001.
19. Due to Micro, Small and Medium Enterprises
Sundry creditors include Rs. 1,46,82,712/- (Previous year Rs.
4,22,612/-) due to micro and small enterprises covered under The
Micro, Small and Medium Enterprises Development Act, 2006 to the
extent such parties have been identified from the available
information. The Company has not received any claim for interest from
any party covered under the said Act.
Note: The Company has not remitted any amount in foreign currencies on
account of dividends during the year and does not have information as
to the extend to which remittances, if any, in foreign currencies on
account of dividend have been made by / on behalf of non-resident
shareholders.
20. Related Party disclosures, as required by Accounting Standard-18
("AS-18") are enclosed as per Annexure-1.
21. Previous years figures have been regrouped / rearranged where
necessary.
22. Additional information as required under Part IV of Schedule VI to
the Companies Act, 1956 has been given under "Balance Sheet Abstract
and Companys General Business Profile".
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