Mar 31, 2017
1. CLAIMS AGAINST THE COMPANY NOT ACKNOWLEDGED AS LIABILITY:
Claims against the company which has not been acknowledged as debt for the year ended 31st March 2017 includes demands from the Income Tax Authorities for payment of Tax including interest for the issues mentioned hereinafter. Rs. 8.89 crores pertaining to the assessment years 1996-97, 1997-98 and 1998-99. The demands for these years are due to disallowance of Training Income in STP/EHTP. The matters are pending to these years in the Supreme Court of India. So also demand and interest of Rs. 21.53 pertaining to the assessment year 2000-01 is due to the treatment of Goodwill which is now pending in the High Court of Madras. For the assessment year 2001-02, 2002-03 and 2003-04 the demand and including interest is Rs. 109.09 crores due to the treatment of unrealized sales and opening of fresh cases u/s 263. These matters are pending in the Supreme Court of India. For the assessment years 2004-05, 2005-06 and 2006-07 the demands inclusive interest are Rs. 48.03 crores which arose due to opening of the files afresh u/s 147 due to non deduction of TDS for some matters, rate of depreciation etc. The company has appealed against the same in the High Court of Madras and has obtained a stay order. For the assessment years 2008 09, 2009-10, 2010-11, 2012-13, 2013-14, 2014-15 there is a total demand of Rs. 10.15 crores including interest because of the dispute in the rate depreciation, deduction of TDs in some matters and these matters are now with the Commissioner of Income Tax (Appeals) There is also matter pending for Pentasoft Technologies (now merged with Pentamedia Graphics) where demand inclusive interest is Rs. 6.30 crores for issues pertaining to unrealized sales. The company has contested all the demands and the Management including the advisors is very confident that they will all be upheld in the process.
CASES FILED BY THE COMPANY AGAINST INCOME TAX THE DEPARTMENT
2. We have filed a WP 2357/2010 and got a stay order dated 15.07.2010 and to dispose of all the issues /appeals from 1996 to 2000 - 07 within 8 weeks from the date of the order.
3. Revised returns has been filed by the company for the AYs 2001-02 to 2004-05 on 31.03.2008 writing off Rs. 690 Crores of impaired assets is still pending with the department . The Madras High Court vide order/ direction dated 11.01.2010 has asked the departments to consider the revised returns.
3. We have filed a WP 25120/2010 for Pentasoft Technologies and got a stay order dated 18.12.2009 till such time all the issues /appeals from 1996 to 2000 -07 are disposed off.
CASES FILED BY THE INCOME TAX THE DEPARTMENT AGAINST THE COMPANY
4. Department has filed in the Supreme Court of India against Pentasoft Technologies (now merged with Pentamedia Graphics) for Assessment Years 2001-02 and 2002-03 challenging the Depreciation on Non Compete Fees upheld by the Madras High Court The Management believes that the ultimate outcome of the proceedings will not have any adverse to the company.
5. The company has recognized deferred tax liability (Net) Rs. 36.48 lakhs as per the requirements of Accounting standard 22
6. EPS
Number if equity shares of Re.1/- each (basic) 41,50,26,168
Number if equity shares of Re.1/- each (diluted) 41,50,26,168
Net Profit/Loss after tax available for 8,539,000 Equity Shareholders Rs.
Basic EPS-Weighted Average Rs. 0.02
Diluted EPS-Weighted Average 0.02
7. computer software for multimedia
The company is mainly engaged in IT Enabled Services, Multimedia business of consultancy, training, sale of digital content, service for pre-post production, special/visual effects and distribution is not capable of being expressed in any generic units.
8. EARNING IN FOREIGN CURRENCY
2017 2016
IT Enabled Services, Multimedia Development Services & Products (Exports) NIL NIL
9. previous year comparatives
Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classifications/ disclosures.
10. All figures are rounded off to nearest in thousands
As per our separate report of even date
Mar 31, 2015
A. CORPORATE INFORMATION
Pentamedia Graphics Limited (PMGL) is a Public Limited Company
incorporated in the state of Tamilnadu and listed on the BSE Limited
(BSE). The company has been mainly in the following business during the
year:
a. Pre&Post production of digital contents for animation&Visual
effects for Film, TV & Internet.
b. Consultancy on multimedia & Software
c. Training and maintenance of media & Software products.
1. CLAIMS AGAINST THE COMPANY NOT ACKNOWLEDGE AS LIABILITY :
Pentasoft Technologies Limited has obtained a direction/stay order
dated 18.12.2009 (W.P.No.25120/2009) from the High Court of Madras to
dispose off all the issues and appeals pertaining to the Assessment
Year 1998-99 to 2006-07 where Pentasoft Technologies Limited has
claimed refunds. Also vide WP No.5174 / 2015 the company was able to
lift the attachment on its properties during February 2015 by IT
Department.
The particulars of dues of Income Tax For Pentamedia Graphics Limited
and Pentasoft Technologies which have not been deposited on account of
a dispute for the following years as follows.
Pentamedia Graphics Limited has obtained a direction/order dated
15.07.2010 (W.P.No.2357/10) from the High Court of Madaras to dispose
off all the issues and appeals pertaining to the Assessment Year:
1997-98 to 2007-2008 within 8 weeks where the company has claimed
refunds.
For the AY 2005-06 a case against Pentamedia Graphics Limited was
reopened by Income tax Department on 21/10/2014 u/s 144 r.w.s 147 of
Income tax Act demanding an amount of Rs.25,38,54,740.The above said
case was under dispute stay has been obtaining company and the appeal
was pending in supreme court.
Consequent to the modified composite scheme of Amalgamation arrangement
and compromise between Pentamedia Graphics Ltd, Media Dreams Ltd,
Kris.Srikkanth Sports Entertainment Ltd, Intelevision and Mayajaal
Entertainment Ltd and their respective creditors and shareholders.
The company filed its Revised return as per the Madras High Court Order
dated 17th December 2007 wherein Rs.690Cr of imparied assets has been
written off and the matter is still pending with the department.This
being not takenup immediately the company vide COMP.APPLN.No.330 to
333/2009 sought direction from Madras High Court and the same was given
while order dated 11th January 2010.
SERVICE TAX CLAIMS
A case against M/s.Pentasoft Technologies Ltd (stay order No.823/12 dt
10.12.12) is pending in CST, Chennai. Demand amount of which is
Rs.11,38,904 out of which Rs.8,00,000 was deposited by the company on
11th January 2013. And the said case is still in process.
2. EXCEPTIONAL ITEMS REPRESENTS:
(I) PRODUCTS RIGHTS
Pentasoft Technologies Limited was in the development and export of
software like Hospital Management Software, Banking and Financial
Software, Insurance Software ERP solutions etc.
Consequent to the merger of Pentasoft Technologies Limited with
Pentamedia Graphics Limited on 01.10.2008 high end software products
along with its rights came into Pentamedia Graphics Limited.
The above softwares being used only on main frame machines and these
machines being not in use at present, they are no longer marketable
hence these products amounting to Rs.32.70 crores are written off as
per the advice of the management.
(II) CAPITAL WORK IN PROGRESS
Animation contents for Film, TV & Internet comprising of characters,
properties & backgrounds are no longer relevant due to the present
technology changes on picture quality and resolution such as 4K,
Digital 3D etc. and a portion of Rs.62.61 Crores has been written off
as per the advice of the management
(III) LOANS AND ADVANCES
The following items pertaining to Pentasoft Technologies which has come
in due to merger with Pentamedia Graphics w.e.f 1.10.2008
A. Pentasoft Franchisee
Pentasoft Technologies Limited appointed over 150 franchisees during
the year 2000 - 2001. Upon merger of Pentasoft Technologies Limited,
the amounts receivable from franchisees were taken as advances in
Pentamedia Graphics Limited.
Due to economic slowdown and increase in competitors most of the
franchisees discontinued the business and hence the advances amounting
to Rs.6.50 crores became irrecoverable. In spite of sincere efforts
taken by the management to recover the same, they could not recover it
and hence written off.
B. Other Advances
The new provisions pertaining to governance, compliance etc has also
necessitated in writing off Rs. 14.27 crores of various advances which
were given during establishing offices/ branches all over India by
Pentasoft Technologies. Since all the branches/ offices have been
closed long back and the advances being not recoverable till now the
management has decided to write them off in line with the new
provisions.
C. Advance pertaining to IT
Advances amounting to Rs. 31.75 crores which standing on the above
mentioned account for more than 7 years have been written off in line
with new provisions after some of the appeals pertaining certain key
issues have been disposed off by the department
3. The company has recognized deferred tax liability (Net) Rs.1.05
crores as per the requirements of Accounting standard 22
4. DISCLOSURES IN RESPECT OF RELATED PARTIES PURSUANT TO ACCOUNTING
STANDARD 18: List of Related Parties:
Related parties/Promoters : Pentafour Software Employees
Welfare Foundation
Mayajaal Entertainment Ltd.
Key Management personnel : Mr.VChandrasekaran,
Managing Director
5. COMPUTER SOFTWARE FOR MULTIMEDIA
The company is mainly engaged in Multimedia business of consultancy,
training, sale of digital content, service for pre-post production,
special/visual effects and distribution is not capable of being
expressed in any generic units.
6. DUES TO SMALL SCALE INDUSTRIAL UNDERTAKINGS
As of 31 st March 2014 the company has no outstanding exceeding Rs.100
thousands to Small scale industrial undertakings as defined under the
Industrial Development Regulation Act, 1951.
7. PREVIOUS YEAR COMPARATIVES
Previous year's figures have been regrouped/reclassified wherever
necessary to correspond with the current year's classifications/
disclosures.
Mar 31, 2014
A. CORPORATE INFORMATION
Pentamedia Graphics Limited (PMGL) is a Public Limited company
incorporated in the State of Tamilnadu and listed on the BSE Limited
(BSE). The company has been mainly in the following business during the
year:
a. Pre & Post production of digital contents for animation& visual
effects for Film, TV &Internet
b. Consultancy on multimedia & software
c. Training and maintenance of media & software products.
1. CLAIMS AGAINST THE COMPANY NOT ACKNOWLEDGE AS LIABILITY :
i. Income Tax
Pentamedia Graphics Limited has obtained a direction/order dated
15.07.2010 (W.P No.2357/10) from the High court of Madras to dispose
off all the issues and appeals pertaining to the Assessment Year :
1997-98 to 2007-2008 where the company has claimed refunds. The issues
and appeals are on various stages with the Income Tax department.
Pentasoft Technologies Limited has obtained a direction/order dated
18.12.2009 (W.P.No.25120/2009) from the High Court of Madras to dispose
off all the issues and appeals pertaining to the Assessment Year :
1998-99 to 2006-07 where Pentasoft Technologies Limited has claimed
refunds. The issues and appeals are on various stages with the Income
Tax department.
The volume of claims / refunds cannot be quantified.
ii. DAL, Ireland
The company''s appeal on Dallah Albaraka (DAL) claim against the
guarantor Pentasoft Technologies Ltd which is being claimed on
Pentamedia Graphics Ltd is in progress at High Court of Madras.
2. EXEPTIONAL ITEMS REPRESENTS :
(i) Writing off of Investments in overseas subsidiaries
Num TV Limited, Mauritius (100% Subsidiary of Pentamedia Graphics
Limited) and Esoftcom (Mauritius) Limited (100% Subsidiary of Pentasoft
Technologies Limited) were formed with the approval of Reserve Bank of
India during May 2000. Consequent to the merger of Pentasoft
Technologies Limited with Pentamedia Graphics Limited from 01.10.2008
Esoftcom (Mauritius) Limited also came under the fold of Pentamedia
Graphics Limited.
The onset of sunset clause for STPs/EHTPS, increase in the cost of
operation, high competition and general economic slowdown all over the
world forced the company to windup the subsidiaries.
The company informed The Reserve Bank of India during Nov 2011 for the
write off of investments amounting to Rs.92.73 crores in subsidiaries
and RBI in turn vide their letter dated 06.01.2012 asked the company to
approach through the authorized dealers for further compliance.
In the meantime Corporate and Business Registration Department of
Mauritius also informed the company vide their letter 13.11.2013 their
intention to strike off the names of the companies due to the inactive
status of the subsidiaries.
In view of the above, the company decided to close the operations and
hence the investments of Rs. 92.73 crores are written off.
(ii) PRODUCTS RIGHTS
Pentasoft Technologies Limited was in the development and export of
software like Hospital Management Software ( Care Cure), Banking and
Financial Software, Insurance Software ERP solutions etc.
Consequent to the merger of Pentasoft Technologies Limited with
Pentamedia Graphics Limited on 01.10.2008 high end software products
along with its rights came into Pentamedia Graphics Limited.
The above softwares being used only on main frame machines and these
machines being not in use at present, these products to the tune of
Rs.10.24 crores are written off as per the advice of the management.
(iii) CAPITAL WORK IN PROGRESS
The capital work in progress consists of digital assets related to
film, Television and internet content in the category of high, medium
and low complexities.
Since most of the low complexity items have become obsolete due to high
end technology, the company wrote off to the extent of Rs.8.25 crores
as per the advice of the management.
(iv) LOANS AND ADVANCES
Pentasoft Technologies Limited appointed over 150 franchisees during
the year 2000 - 2001. Upon merger of Pentasoft Technologies Limited,
the amounts receivable from franchisees were taken as advances in
Pentamedia Graphics Limited.
Due to economic slowdown and increase in competitors most of the
franchisees discontinued the business and hence the advance amounts to
the tune of Rs.19.58 crores became irrecoverable. In spite of sincere
efforts taken by the management to recover the same, they could not
recover it and hence written off.
(v) SUNDRY DEBTORS
In spite of best efforts, the company could not recover the debtors to
the tune of Rs.0.57 crores and as such the same is written off.
(vi) INVENTORIES
Due to rapid change in digital technology, a few of the inventory items
totaling to Rs.8.01 crores became obsolete and hence written off.
3. Confirmation of balances/Reconciliation is pending in respect of
certain Banks/Long Term & Short Term Loans and Advances/ Trade
Receivables/ Trade Payables unclaimed dividend and other liabilities.
Adjustments if any which may arise upon completion of
confirmation/reconciliation will be dealt with upon
confirmation/completion of reconciliation.
4. Income Tax: As the Company has incurred losses during the current
year no provision for Taxation is made.
5. The Company has recognized deferred tax liability (Net) Rs.1.67
crores as per the requirements of Accounting Standard 22.
6. DUES TO SMALL SCALE INDUSTRIAL UNDERTAKINGS
As of 31st March 2014 the Company has no outstanding exceeding Rs.100
thousands to Small Scale Industrial Undertakings as defined under the
Industrial Development Regulation Act, 1951.
7. PREVIOUS YEAR COMPARATIVES
Previous year''s figures have been regrouped / reclassified wherever
necessary to correspond with the current year''s classifications /
disclosures.
8. All figures are rounded off to nearest in thousands
Mar 31, 2013
A. CORPORATE INFORMATION
Pentamedia Graphics Limited (PMGL) is a Public Limited company
incorporated in the State of Tamilnadu and listed on the Bombay Stock
Exchange (BSE). The company has been mainly in the following business
during the year:
a. Pre & Post production of digital contents for animation& visual
effects for Film, TV &Internet
b. Consultancy on multimedia & software
c. Training and maintenance of media & software products.
B. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The fi nancial statements are prepared to comply in all material
aspects with all the applicable accounting principles in India, the
applicable Accounting Standards notifi ed u/s 211 (3C) of the Companies
Act, 1956 and the relevant provisions of the Companies Act, 1956. The
accounting policies adopted in the preparation of the fi nancial
statements are consistent with those followed in the previous year.
Claims against the Company not acknowledge as Liability:
a. Income Tax:
Pentamedia Graphics Limited has obtained a direction/order dt.
15.07.2010 (W.P. No.2357/10) from the High Court of Madras to
dispose off all the issues and appeals pertaining to the AYs 1997-98 to
2007-08 where the Company have claimed refunds. The issues and appeals
are on various stages with the Income Tax department. Pentasoft
Technologies Limited has obtained a direction/order dt. 18.12.2009
(W.P. No.25120/2009) from the High Court of Madras to dispose off all
the issues and appeals pertaining to the AYs 1998-99 to 2006-07 where
Pentasoft have claimed refunds. The issues and appeals are on various
stages with the Income Tax department.
The volume of claims /refunds cannot be quantified.
b. DAL, Ireland
The CompanyÂs appeal on Dallah Albaraka (DAL) claim against the
guarantor M/s.Pentasoft Technologies Limited which is being claimed on
Pentamedia Graphics Ltd. is in progress.
1. Confi rmation of balances/Reconciliation is pending in respect of
certain Banks/Long Term & Short Term Loans and Advances/ Trade
Receivables/ Trade Payables unclaimed dividend and other liabilities.
Adjustments if any which may arise upon completion of confi
rmation/reconciliation will be dealt with upon confi rmation/completion
of reconciliation.
2. The Company has recognized deferred tax liability (Net) Rs. 1.76
cores as per the requirements of Accounting Standard 22.
3. Segmental Reporting Primary Business Segmental Results.
As the assets (Computers and softwareÂs) are being used interchangeably
by different segments, segment wise capital employed is not
ascertainable.
4. Disclosures in respect of related parties pursuant to Accounting
Standard 18:
List of Related Parties:
Subsidiaries: NumTV Limited, Mauritius
Esoftcom (Mauritius) Limited,
Key Management personnel: Mr.V.Chandrasekaran,
Chairman & Managing Director
5. Computer Software for Multimedia.
The Company is mainly engaged in Multimedia business of consultancy,
training, sale of digital content, service for pre-post production,
special / visual effects and distribution is not capable of being
expressed in any generic units.
6. DUES TO SMALL SCALE INDUSTRIAL UNDERTAKINGS
As of 31st March 2013 the Company has no outstanding exceeding Rs.100
thousands to Small Scale Industrial Undertakings as defi ned under the
Industrial Development Regulation Act, 1951.
7. PREVIOUS YEAR COMPARATIVES
Previous yearÂs fi gures have been regrouped / reclassifi ed wherever
necessary to correspond with the current yearÂs classifi cations /
disclosures.
8. All fi gures are rounded off to nearest in thousands.
Mar 31, 2012
1(a) Secured Loans:
The settlement due to EXIM Bank (CP No. 243 of 2008), Dhanalakshmi Bank
assigned to Pridhvi Assets Reconstruction vide O.A No. 95 of 2003 and
AXIS Bank assigned to Phoenix Assets Recovery Construction vide OA Nos.
7 of 2004 & 76 of 2005 which is pending before the Debt Recovery
Tribunal (DRT) have been settled by using the proceeds from the
dis-investment of Mayajaal Entertainment Ltd equity shares as per the
order of Company Law Board, Chennai, dated 01.03.2011 and said shares
have been extinguished vide corporate action taken by the company
through NSDL on 21.04.2011.
1(b) Claim against the company not acknowledged as Liability:
Dallah Albaraka, Ireland
Dallah Albaraka, Ireland (DAL) obtained an exparte decree before the
High Court of Justice Queen's Bench Division London against M/s.
Pentasoft Technologies Limited for the corporate guarantee issued by
them. Company Petition seeking an order of winding up (No.134 of 2008)
filed by DAL was dismissed by a single judge in the High Court of
Madras vide order dated 16.12.2008 for want of merits. DAL appealed
against the single judge order (OSA Bo. 27 of 2009& M.P. No. 1 of 2010
Pentamedia Graphics Ltd was made respondent as Pentasoft Technologies
Limited merged with Pentamedia Graphics Limited during October 2008)
and the same was also dismissed by the bench of the High Court of
Madras vide their order dated 07.07.2010 on same lines of the single
judge order. DAL also filed an unnumbered petition under Regulation 44
of Company Law Board Regulation seeking to set aside order pertaining
to the buyback of Mayajaal Entertainment Ltd shares. This petition too
was rejected by the Company Law Board vide their order dated 11.01.2012
stating that there is no merit in the DAL's application, also due to
the fact that the applicant is yet to establish its status as creditor
of Pentamedia Graphics Ltd and cannot be held with certainty that it
will be entitled to any reliefs even if the company petition is
dismissed. After DAL moved Execution Petitions (No. 299 & 300 0f 2011)
seeking attachment and sale of moveable and immovable property of
Pentamedia Grapics Ltd. However both the Execution Petitions were
dismissed by the Master Court of Chennai, vide their order dated
20.01.2012 stating that both of them are not maintainable and not
executable with the decree obtained by them which is not on merits and
without the prior permission from Reserve Bank of India or Central
Government of India. DAL filed a review petition and got the case heard
once again and also got the order that Executive Petitions are
maintainable against the assets of Pentamedia Graphics Ltd. Now
Pentamedia Graphics Ltd has appealed (Appeal No. 2801 of 2012) against
this order and DAL has sought time for reply.
According to the information and explanation given to us there are no
dues of income tax, wealth tax, sales tax, custom duty, excise duty and
cess which have not been deposited on account of any dispute except in
the following cases.
Income Tax:
The Company has obtained stay orders against Income Tax demands and
have been in touch with the Income Tax Department to settle the issues
regarding demands and refunds. The volume of claims/refunds cannot be
quantified now.
2. Confirmation of balances/Reconciliation is pending in respect of
certain Banks/Loans and Advances/Sundry Debtors/ Sundry creditors'
unclaimed dividend and other liabilities. Adjustments if any which may
arise upon completion of confirmation/reconciliation will be dealt with
upon confirmation/completion of reconciliation.
3. The Company has recognized deferred tax liability (Net) Rs. 1.97
cores as per the requirements of Accounting Standard 22.
4. DUES TO SMALL SCALE INDUSTRIAL UNDERTAKINGS
As of 31st March 2012 the Company has no outstanding exceeding Rs.100
thousands to Small Scale Industrial Undertakings as defined under the
Industrial Development Regulation Act, 1951.
5. PREVIOUS YEAR COMPARATIVES
Schedule VI to the Companies Act, 1956 is revised effective from 1
April 2011 and has significantly impacted the disclosures and
presentation made in the financial statements. Previous year's
figures have been regrouped / reclassified wherever necessary to
correspond with the current year's classifications / disclosures.
6. All figures are rounded off to nearest in thousands.
Mar 31, 2011
1. Confirmaton of balances/Reconciliation is pending in respect of
certain Banks/ Loans and Advances/Sundry Debtors/ Sundry creditors'
unclaimed dividend and other liabilities. Adjustments if any which may
arise upon completion of confirmation/reconciliation will be dealt
with upon confirmation/completion of reconciliation.
2. The Reconciliation of subsidiary records with General Ledger is in
progress relating to Fixed Assets / Capital Work in Progress and
Inventories. Adjustment if any which may arise upon
confirmation/reconciliaton of above items are unascertainable at this
stage, and are not provided for.
3. The Company has recognized deferred tax liability (Net) Rs. 2.02
cores as per the requirements of Accounting Standard 22.
4. Segmental Reporting Primary Business Segmental Results.
As the assets (Computers and software's) are being used interchangeably
by different segments, segment wise capital employed is not
ascertainable.
5. Disclosures in respect of related partes pursuant to Accountng
Standard 18: List of Related Partes:
1. Subsidiaries : NumTV Ltd, Mauritius, Esoftcom
(Mauritius) Ltd
2. Key Management personnel : Mr. V. Chandrasekaran Chairman
and CEO
3. Related partes : Mayajaal Entertainment Ltd & MAYAs
Food Court Advance received and
outstanding as on 31.03.2011
Rs. 21,95,33,452/- & Rs.5,93,112/-
respectvely
6. Computer Software for Multimedia.
The Company is mainly engaged in Multimedia business of consultancy,
training, sale of digital content, service for pre-post production,
special / visual effects and distribution is not capable of being
expressed in any generic units.
Hence it is not possible to furnish the quantitative details and the
information required under paragraphs 3, 4c and 4 d of part II of
Schedule VI of the Companies Act, 1956 of India.
7. DUES TO SMALL SCALE INDUSTRIAL UNDERTAKINGS
As of 31st March 2011 the Company has no outstanding exceeding Rs. 100
thousands to Small Scale Industrial Undertakings as defined under the
Industrial Development Regulaton Act, 1951.
8. PREVIOUS YEAR COMPARATIVES
The previous year figures have been reclassified, wherever necessary to
conform to current year's classificaton.
9. All figures are rounded of to nearest in thousands.
Mar 31, 2010
1(a) Secured Loans:
Though the Company has defaulted in repayment of the following dues,
with interest to banks, it has contested in DRT / High Court towards
settlement of Loans.
i) Dhanalakshmi Bank has approached the Debts Recovery Tribunal (DRT)
to settle the dues. The claim of Dhanalakshmi Bank in respect of
Pentasoft Technologies Ltd amounting to Rs. 10.80 crores are being
contested by the company.
ii) The claim of Axis Bank (UTI) is Rs. 24.97 crores and Rs. 14.85
crores with regard to Pentamedia & Pentasoft Technologies Ltd
respectively are being contested by the company.
iii) FIB (EXIM BANK) is claiming an amount of Rs. 19.85 crores in
respect of Pentamedia Graphics Ltd.
In this connection the companys petition is pending with High Court of
Madras and is being actively defended by the company.
The above amounts due to bank / Institution does not include any
interest that may accrue on the principle amount due from 01.04.2005.
1 (b) Claim against the company not acknowledged as Liability:
According to the information and explanation given to us there are no
dues of income tax, wealth tax, sales tax, custom duty, excise duty and
cess which have not been deposited on account of any dispute except in
the following cases.
Income Tax:
i. As per the notice dated 05.02.2009 issued by the Income Tax
Department Chennai the total Tax demand of Pentamedia Graphics Ltd
amounts to Rs.112.51 crores.-The company being an 100% EOU under
STPI/EHTP scheme has contested various issues and has obtained stay
order from the High Court of Madras restraining the Income Tax
department from taking any action till the disposal of all
issues/appeals. The company has also obtained the Court order from the
High Court of Madras, directing the Income Tax department to process
the revised returns filed by the company pursuant to the Court order
dated 17.12.2007.
ii. As per the.notice dated 19.01.2009 issued by the Income Tax
Department Chennai the total tax demand of Pentasoft Technologies Ltd
amounts to Rs. 89.97 crores. The Company being an 100% EOU under
STPI/EHTP scheme had gone on appeal against the various issues and has
subsequently obtained stay order from the High Court of Madras
restraining the Income Tax department from taking any action till the
disposal of all issues/appeals. It is not possible to ascertain the
contingent liability in this regard with respect to Accounting Standard
29.
2) Confirmation of balances/Reconciliation is pending in respect of
certain Banks/Loans and Advances/Sundry Debtors/ Sundry creditors and
other liabilities. Adjustments if any which may arise upon completion
of confirmation/reconciliation will be dealt with upon
confirmation/completion of reconciliation.
3) The Reconciliation of subsidiary records with General Ledger is in
progress relating to Fixed Assets / Capital Work in Progress and
Inventories. Adjustment if any which may arise upon
confirmation/reconciliation of above items are unascertainable at this
stage, and are not provided for.
4) The Company has recognized deferred tax liability Rs.1.92 cores as
per the requirements of Accounting Standard 22. However, the company
has not provided for deferred tax on account of depreciation in the
case of EHTP Assets as required by Accounting Standard Interpretation
(ASI) issued by the Institute of Chartered Accountants of India which
should have been adjusted against opening reserves
As the assets (computers and softwares) are being used Interchangeably
by different segments, segment wise capital employed is not
ascertainable.
5. Disclosures in respect of related parties pursuant to Accounting
Standard 18: List of Related Parties:
1. Subsidiaries : NumTV Limited, Mauritius
Esoftcom Limited, Mauritius
2. Key Management personnel : Mr. V. Chandrasekaran
Chairman and CEO
6. Computer Software for Multimedia.
The Company is mainly engaged in Multimedia business of consultancy,
training, sale of digital content, service for pre-post production,
special / visual effects and distribution is not capable of being
expressed in any generic units.
Hence it is not possible to furnish trie quantitative details and the
information required under paragraphs 3, 4c and 4 d of part II of
Schedule VI of the Companies Act, 1956 of India.
7. DUES TO SMALL SCALE INDUSTRIAL UNDERTAKINGS
As of 31st March 2010 the Company has no outstanding exceeding Rs.100
thousands to Small Scale Industrial Undertakings as defined under the
Industrial Development Regulation Act, 1951.
8. PREVIOUS YEAR COMPARATIVES
Consequent upon the implementation of the scheme of amalgamation with
effect from 1st October 2008, the figures of the current year are not
comparable with those of the previous year.
9. All figures are rounded off to nearest in thousands.