Mar 31, 2018
Notes to Investments
1. During the year, the preference shares held in Green Star Fertilizers Ltd have been completely redeemed.
2. During the year, the Company has acquired 28,33,880 equity shares representing 40% equity capital of Danish Steel Cluster Private Ltd and completed 100% acquisition.
3. During the year, the Company has received 16,48,000 equity shares of Mercantile Ventures Ltd (MVL) valuing Rs.4.12 crores, originally allotted to Manali Petrochemicals Ltd (MPL) against the old outstanding dues payable by MVL, which was adjusted against the payment due from MPL towards supply of materials by the Company before demerger.
4. The equity shares held in Southern Petrochemicals Industries Corporation Ltd which are considered as strategic in long term investments have been duly revalued at market value as per Ind AS.
5. All Quoted Investments have been fair valued at the prevailing Market Price as per Ind AS.
6. All Investments are fully paid up.
7. Refer Note 39 for valuation of Investments relating to First Time Adoption of Ind AS
The company is making provisions for loans & advances which have been outstanding for a period of three years or more based on Expected Credit Loss (ECL) model. However, any advances with cetainty of loss is provided for even with lower aging.
The Company has a detailed review mechanism for overdue customer receivables at various levels within the organisation to ensure proper attention and focus for realisation.The company is making provisions for trade receivables outstanding for a period of three years or more based on Expected Credit Loss (ECL) model. However, any trade receivable with certainty of loss is provided for even with lower aging of debt.
8. Aggregate number of bonus shares issued, share issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date: NIL
9. Credit facilities availed from Banks/NBFCs by way of Channel Financing arrangements for the Company were secured by way of hypothecation of relevant stocks.
10. Working capital facilities availed were secured by hypothecation of stocks and receivables of all Divisions and creation of equitable mortgage by way of deposit of title deeds of certain immovable assets of the Company as collateral security.
11. Contingent Liability
a. Appeal is pending at High Court for the Assessement year 2009-10 for a demand of Rs.200 Lakhs.Appeal filed with ITAT (A) for a demand of Rs.1699 Lakhs for the Assessment year 2011-12. Appeal filed with CIT (A) for a demand of Rs.151 Lakhs for the Assessement year 2015-16. Provision has not been made for any of the above demands.
b. Guarantees given by the bankers for performance of Contracts and others Rs.572.45 Lakhs (Rs.378.20 Lakhs).
A) The Company has identified Business Segment as the Primary Segment and Geographic Segment as the Secondary Segment for disclosure.
The Companyâs Primary segment has been identified as business segment based on nature of products, returns and Internal Business Reporting System as per Ind AS 108.
B) The Business Segments identified are Trading and Manufacturing.
C) The Geographical Segment considered for disclosure are India and Rest of the World. All sales facilities are located in India. Geographical segments are based on the location of the customer who is invoiced or in relation to which the revenue is otherwise recognised.
D) Segmental assets include all the operating assets used by the respective segment and principally consists of operating cash, debtors, inventories and fixed assets.
NOTES TO FIRST TIME IND AS ADOPTION RECONCILIATION :
Items relating to total equity and Other comprehensive income
(a) Impact of Fair valuation as deemed cost for Property, Plant and Equipment: Under Indian GAAP, the property, plant and equipment is carried at cost less accumulated depreciation and amortisation. Ind AS 101 allows entity to elect to measure Property, Plant and Equipment on the transition date at its fair value or previous GAAP carrying value (book value) as deemed cost. Entire classes of PPE have been fair valued as on date of transition. The resulting impact of fair valuation is reflected in the reserves.
(b) Impact on Fair Valuation of Investments: As per IND AS 101, the fair value of investments in equity is determined by reference to their quoted prices on the reporting date. In the absence of the quoted price, the fair value of the equity is measured using valuation techniques.
(c) Impact on Trade Receivables and Loans and advances: The Company is making provisions for trade receivables and loans and advances outstanding for a period of three years or more based on Expected Credit Loss (ECL) model. However, any trade receivable or advance with certainty of loss is provided for even with lower aging.
(d) Derecognition of Proposed Dividend: Proposed Dividend has to be recognized upon approval by the shareholders in the Annual General Meeting. Accordingly, Proposed Dividend has been reversed with corresponding credit to Equity as at the date of transition i.e. 1st April 2016 and recognized in the Equity during the year ended 31st March 2017 as declared and paid.
(e) Other comprehensive income: Under Indian GAAP, the Company has not presented the other comprehensive income (OCI) separately. Hence, it has reconciled Indian GAAP loss to loss as per Ind AS. Further, Indian GAAP loss is reconciled to total comprehensive income as per Ind AS.
12 DISCLOSURE OF FAIR VALUE MEASUREMENT:
12.1 The fair values of financial assets and liabilities are determined at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Fair value of cash and short-term deposits, trade and other short-term receivables, trade payables, other current liabilities, short term loans from banks and other financial instruments approximate their carrying amounts largely due to the short term maturities of these instruments.
Valuation techniques used to determine the fair value
Level 1 : Quoted (Unadjusted) prices in active markets for identical assets or liabilities.
Level 2 : Other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly. Level 3 : Techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.
13. Financial risk management
The treasury function provides services to the business, co-ordinates access to domestic financial markets, monitors and manages the financial risks relating to the operations through internal risk reports which analyse exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.
The Companyâs principal financial liabilities comprises of loans and borrowings in domestic currency, trade payables and other payables. The main purpose of these financial liabilities is to finance the Companyâs operations. The Companyâs principal financial assets include trade and other receivables.
Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations resulting in a financial loss to the Company. Credit risk arises principally from trade receivables, loans & advances, cash & cash equivalents and deposits with banks and financial institutions.
Trade receivables
The Company primarily sells goods to customers comprising, of dealers, institutions, public sector enterprises, state owned companies and large private corporates. Accordingly, the Companyâs customer credit risk is low. General payment terms include a credit period ranging from 60 to 120 days. On account of adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables and unbilled revenues. The provision matrix takes into account available external and internal credit risk factors such as credit defaults, credit ratings from international credit rating agencies and the Companyâs historical experience for customers. Management considers the factors that may influence the credit risk of its customer base, including the default risk of the industry.
Loans and advances
Cash and cash equivalents and deposits with banks
The Company has banking operations with highly rated banks including scheduled banks which are owned by Government of India and Private Sector Banks. The risk of default with government controlled entities is considered to be insignificant.
Provision for expected credit losses
For financial assets loss allowance is measured using 36 months expected credit loss model. However, any trade receivable with certainty of loss is provided for even with lower aging of debt.
The Company has assets where the counter- parties have sufficient capacity to meet the obligations and where the risk of default is very low.
Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.
The Company manages liquidity risk through cash credit limits and undrawn borrowing facilities by continuously monitoring forecast and actual cash flows.
The Company''s treasury department is responsible for managing the short term and long term liquidity requirements of the Company. Typically the Company ensures that it has sufficient cash on demand to meet expected operational expenses for a period of 60 days, including the servicing of financial obligations, this excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters.
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Company''s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.
Interest rate risk
The Company''s exposure to changes in interest rates relates primarily to the Company''s outstanding floating rate debt. While most of the Company''s outstanding debt in local currency is on fixed rate basis and hence not subject to interest rate risk.
14. Previous year''s figures have been regrouped and rearranged in line with Ind AS wherever necessary.
Mar 31, 2017
1 16,02,350 equity shares of Southern Petrochemical Industries Corporation Ltd (SPIC) pledged with lenders prior to demerger and pending under dispute were released through settlement of outstanding dues as per the Memorandum of Compromise entered into with lenders along with other entities. Further, the dispute over 38,23,600 equity shares of SPIC pledged with lenders prior to demerger was settled and the value of that shares adjusted against the outstanding dues by the the lenders prior to demerger was taken into account.
2 3,85,104 equity shares of SPIC pledged prior to demerger were released and the said shares are in the process of name transfer.
3 1,00,00,000 equity shares of South India House Estates & Properties Ltd vested in the books of the Company under the earlier demerger scheme and pending under dispute for name transfer were registered in Company''s favour upon settlement of outstanding dues.
4 No provision is considered necessary for short fall in market value of certain quoted investments ascertained on individual basis amounting to Rs.862.16 Lakhs (Rs.981.34 Lakhs) as a significant portion of it relates to companies promoted by the Company which are considered temporary in nature.
5 Certain investments held in other entities are considered as strategic long term investments and hence the evaluation of intrinsic value of such long term investments will be undertaken by the Company in an appropriate manner in future.
6. Contingent Liability
7. Appeals filed with ITAT (A) for a demand of Rs.1699 Lakhs (Assessment year 2011-12). Provision has not been made for the demand.
8. Guarantees given by the bankers for performance of Contracts and others Rs.378.20 Lakhs C265.58 Lakhs ).
9. During the year the company had obtained approval from the board for adoption of the IND AS which would be applicable from the Financial Year 2017-18 with the transition date as 1st April 2016.
10. Previous yearâs figures have been regrouped and rearranged wherever necessary.
Mar 31, 2015
1. Contingent Liability
a Appeals filed with ITAT for a likely demand of Rs. 200 Lakhs
(Assessment year 2009-10). Appeals filed with CIT(A) for a demand of Rs.
1699 Lakhs (Assessment year 2011-12). Provision has not been made for
both demands. b Guarantees given by the bankers for performance of
Contracts and others Rs.447.04 Lakhs (Rs.415.63 Lakhs).
2. Previous year's figures have been regrouped and rearranged wherever
necessary.
Mar 31, 2014
1. Out of 30,17,349 equity shares of Southern Petrochemical Industries
Corporation Ltd (Spic), 19,87,454 shares pledged with lenders prior to
demerger are yet to be released and out of which, 16,02,350 shares are
under dispute and still pending for adjudication before the Hon''ble
High Court of Madras.
2. Further 38,23,600 shares of Spic pledged with lendor prior to
demerger and entitled to be transferred to the books of accounts of the
Company are also under dispute and pending for adjudication before the
Hon''ble High Court of Madras. In the event of the above dispute being
settled in Company''s favour, the aforesaid shares shall be taken into
account in the books of the Company on the date of settlement.
3. 1,00,00,000 Equity shares of South India House Estates & Properties
Ltd vested in the books of the Company under the earlier demerger
scheme, are yet to be registered in the name of the Company due to some
pending litigations. The name transfer will be effected in Company''s in
favour after obtaining necessary judicial clearance from the Hon''ble
High Court of Madars as specified in Clause 7.5 of the earlier demerger
Scheme.
4. No provision is considered necessary for short fall in market value
of certain quoted investments ascertained on individual basis amounting
to Rs.1046.97 Lakhs (Rs.848.61 Lakhs) significant portion of which
relates to companies promoted by the Company which considered temporary
in nature.
5. The Company is in the process of evaluating the intrinsic value of
its long term investment held by it and its subsidiaries and towards
this the company is identifying an independent expert who will offer
opinion on Fair value of the various shares. The company shall endeavor
to obtain this report in ensuing financial year. On receipt of the
above report, necessary revaluation of investment shall be undertaken.
2. Contingent Liability
a Appeals filed with ITAT for a likely demand of Rs.200 Lakhs
(Assessment year 2009-10). Appeals filed with CIT(A) for a demand of
Rs.1699 Lakhs (Assessment year 2011-12). Provision has not been made
for both the demands.
b The Company has received legal notice from the lawyers of M/s
Innovative Salary Services and Payroll Advisory Private Limited (ISS)
in respect of certain matters specified in the Share Purchase Agreement
("SPA") executed between the Company & its subsidiary with ISS on
various matters including collection of receivables.
3. Guarantees given by the bankers for performance of Contracts and
others Rs. 415.63 Lakhs (Rs. 585.51 Lakhs).
4. Sales Tax demand together with penalties under appeal amounts to
Nil (Rs.1.32 Lakhs ).
5. Provision for taxation includes Rs. 0.60 Lakhs (Rs. 0.60 Lakhs)
towards wealth tax.
6. Previous year''s figures have been regrouped and rearranged wherever
necessary.
Mar 31, 2013
1.1 Out of 30,17,349 equity shares in Southern Petrochemical
Industries Corporation Ltd (Spic) as shown under the investment
schedule, 19,87,454 equity shares of Spic pledged with lenders prior to
demerger are yet to be released and out of which, 16,02,350 equity
shares of Spic are under dispute and still pending for adjudication
before the Hon''ble High Court of Judicature at Madras.
1.2 Further 38,23,600 equity shares of Spic pledged with prior to
demerger and entitled to be transferred to the books of accounts of the
Company under earlier demerger scheme, are not shown in the schedule of
investments as they are under dispute and still pending for
adjudication before the Hon''ble High Court of Madras. In the event of
the above dispute being settled in Company''s favour, the aforesaid
shares shall be taken into account in the books of the Company from the
effective date of settlement.
1.3 1,00,00,000 equity shares of South India House Estates &
Properties Ltd vested in the books of the Company under the earlier
demerger scheme, are yet to be registered in the name of the Company
due to some pending litigations. The name transfer will be effected in
Company''s favour after obtaining necessary judicial clearance from the
Hon''ble High Court of Madras as specified in Clause 7.5 of the earlier
demerger scheme.
1.4 23,60,205 equity shares of MCC Finance Limited vested in the
Company under earlier demerger scheme have till FY 2011-12 not been
accounted in the books since the value of investments relating to MCC
Finance Limited were not realizable as Company was in liquidation.The
shares of MCC Finance Limited (Now renamed as Mercantile Ventures
Limited) are now valued at Rs.10/- each based on the price at which
allotments were made to various stakeholders under the scheme of
arrangement sanctioned by Hon''ble High Court of Madras. This upward
valuation of shares of Mercantile Ventures Limited comes to Rs.2.36
crores which has been taken to Exceptional Items under Schedule 27. It
may be noted that Accounting Standard - 13 "Accounting for Investments"
permits reversal of previous permanent diminution in the value of Long
Term Investments. The Company has complied with the principles
enunciated under this standard.
1.5 No provision is considered necessary for short fall in market
value of certain quoted investments ascertained on individual basis
amounting to Rs.848.61 Lakhs (Rs.697.75 Lakhs) significant portion of
which relates to Companies promoted by the Company which is considered
temporary in nature.
2.1 Other Bank Balances include Margin Money which is due for
realization after 12 months.
2.2 The claim pending with Consumer Appellate Tribunal as at FY
2011-12 was decided against the Company during the year. The attendant
expenditure is also charged off.
3.1 The Other Non-Operative Income includes the following write back
made during the year:
a). Rs.1.59 Crores on account of Consultancy charges, provision made in
the earlier years.
b). Rs.1.57 Crores on account of Sales Tax payments for earlier years.
This liability is no longer payable on account of settlement under
Samadhaan Scheme.
4. Contingent Liability
a Income Tax - For the Assessment year 2009-10 we have filed before
CIT-Appeals against the Department order for treatment of Long Term
Capital Gain as Short Term Capital Gain. The amount disputed is Rs.1377
Lakhs for which tax provision has not been made.
b The Company has received legal notice from lawyers of M/s Innovative
Salary Services and Payroll Advisory Private Limited (ISS) in respect
of certain matters specified in the Share Purchase Agreement ("SPA")
executed between the Company & its subsidiary with ISS on various
matters including collection of receivables.
5. Guarantees given by the bankers for performance of Contracts and
others Rs. 585.51 Lakhs (Rs.518.29 Lakhs).
6. Sales Tax demand together with penalties under appeal amounts to
Rs.1.32 Lakhs (Rs.1.72 Lakhs).
7. Provision for taxation includes Rs. 0.60 Lakhs (Rs.0.33 Lakhs )
towards Wealth Tax.
8. Previous year''s figures have been regrouped and rearranged
wherever necessary.
Mar 31, 2012
1.1 Term loan facility availed from a Bank during the current FY
2011-12 for the purpose of working capital requirement as well as
modernization and expansion of existing showrooms and service stations
of commercial vehicles division was secured by way of creation of
equitable mortgage by deposit of title deeds of certain immovable
assets of the company as collateral security.
1.2 Working capital facilities availed from a Bank were secured by
hypothecation of stocks and receivables of all divisions except
commercial vehicles division and creation of equitable mortgage by way
of deposit of title deeds of certain immovable assets of the Company as
collateral security.
2.1 Others include advance from customers and others and interest
accrued.
3.1 Credit facilities availed from Banks/NBFCs by way of Channel
Financing/Inventory Funding Arrangements for commercial vehicles
division were secured by hypothecation of vehicles stocks.
4.1 Other payable includes statutory dues, security deposits and
advance from customers.
4.2 During the year, the Company has acquired 50 lakhs 11 %
Non-convertible Preference Shares of Creenstar Fertilizers Ltd
amounting to Rs 5000 lakhs. The above investment was made pursuant to
the special resolution dated 21.10.2011 passed by the shareholders
thro' postal ballot.
4.3 As at 01,04.2011, the Company has acquired 100% equity capital of
M/s Wilson Cables Private Ltd, Singapore and thus, Wilson Cables has
become a wholly owned subsidiary of the Company with effect from
01.04.2011.
4.4 1987454 equity shares of Southern Petrochemical Industries Corpn.
Ltd pledged with lenders prior to demerger are yet to be released and
out of which, 1602350 shares are under dispute and still pending for
adjudication before the Hon'ble High Court of Judicature at Madras.
4.5 3823600 equity shares of Southern Petrochemical Industries Corpn.
Ltd, pledged with lenders prior to
demerger and entitled to be transferred to the books of accounts of the
Company under earlier demerger scheme, are not shown in the schedule of
investments as they are under dispute and still pending for
adjudication before the Hon'ble High Court of Madras. In the event of
the above dispute being settled in Company's favour, the aforesaid
shares shall be taken into account in the books of the Company from the
effective date of settlement.
4.6 2450 equity shares of Southern Petrochemical Industries Corpn. Ltd
and 63 equity shares of First Leasing Co. of India Ltd which are
erroneously lying in the books and not physically available with the
Company have been eliminated from the books and rectified during the
year.
4.7 The investment value of 5000 equity shares of Coffee Products
(India) Ltd which are considered not realizable have been written off
this year.
4.8 10000000 equity shares of South India House Estates & Properties
Ltd vested in the books of the Company under the earlier demerger
scheme, are yet to be registered in the name of the Company due to some
pending litigations. The name transfer will be effected in Company's
favour after obtaining necessary judicial clearance from the Hon'ble
High Court of Madras as specified in Clause 7.5 of the earlier demerger
scheme.
4.9 2360205 equity shares of MCC Finance Ltd vested in the Company
under the earlier demerger scheme were not accounted in the books of
accounts since the value of the investments relating to MCC Finance
Ltd, a Company which is in liquidation, was considered not realizable.
During the year, the said MCC Finance Ltd has filed an application
along with a scheme of arrangement before the Hon'ble High Court of
Judicature at Madras for settlement of outstanding dues to its
creditors and revival of that Company. In the event of any dues being
settled or any steps being taken for revival upon sanction of the above
scheme by the Court, the aforesaid equity shares shall be taken into
account in the books of accounts of the Company from the effective of
date of settlement and revival.
4.10 No provision is considered necessary for short fall in market
value of certain quoted investments ascertained on individual basis
amounting to Rs 697.75 lakhs (Rs 756.20 lakhs) significant portion of
which relates to Companies promoted by the Company which is considered
temporary in nature.
4.11 5,00,000 9% Redeemable Convertible Preference Shares of Rs 100
each held in EDAC Engineering Ltd aggregating Rs 500 lakhs were
redeemed on partial redemption basis during the year.
5.1 Other Bank Balances include Margin Money which is due for
realization after 12 months.
5.2 Claim pending with Consumer Appellate Tribunal for adjudication.
6. CONTINGENT LIABILITY
The Income Tax Assessment of the Company has been completed up to the
Assessment Year 2009-10. The disputed demand outstanding up to the said
assessment year is Rs 437 lakhs. Based on the decision of the Appellate
Authority & the interpretation of other relevant provisions, the Company
has been legally advised that the demand is likely to be either decreased or
substantially reduced and accordingly no provision has been made.
7 Guarantees given by the bankers for performance of Contracts and
others Rs 518.29 lakhs (Rs 436.35 lakhs).
8 Letter of credit outstanding for purchase of materials is Rs Nil (Rs
25.04 lakhs)
9 Sales Tax demand together with penalties under appeal amounts to Rs
Nil (Rs 1.72 lakhs)
10 Provision for taxation includes Rs 0.33 lakhs (Rs 0.31 lakhs)
towards wealth tax.
11 Previous year's figures have been regrouped and rearranged
wherever necessary.
Mar 31, 2011
1 In accordance with accounting Standard-29, the following is
considered as Contingent Liability and Provision
a Sales tax and Income tax demands together with penalties under appeal
amounts to Rs.1.72 lakhs. (Rs.1.72 lakhs)
b Guarantees given by bankers for Performance of Contracts and others-
Rs.436.35 lakhs. (Rs.227.14 lakhs)
2 Letter of Credit outstanding for purchase of materials is Rs.25.04
(Rs. Nil).
3 Investments
No provision is considered necessary for shortfall in market value of
certain quoted investments ascertained on individual basis amounting to
Rs.756.20 lakhs (Rs.630.88 lakhs) significant portion of which relate
to companies promoted by the Company which is considered temporary in
nature.
4 Sundry Debtors, Loans and Advances and Deposits include certain
overdue and confirmed balances. Some of the accounts are under
reconciliation. These include
a Rs.405.82 lakhs (Rs.1238.15 lakhs) covered by court cases under
arbitration.
b Advance to a subsidiary amounting to Rs.5548.13 lakhs (Rs.6727.54
lakhs) is considered good and recoverable as the intrinsic value of
the investments held by that company are more than the values stated
in the books of that company.
5 Provision for taxation includes Rs.0.31 lakhs (Rs.0.16 lakhs) towards
Wealth tax.
6 Balance with central excise authorities includes unutilized cenvat
credit of Rs.7.55 lakhs (Rs.15.45 lakhs).
7 Letters of confirmation of balances in personal accounts of
suppliers, debtors and principals, loans and advances and in-operative
bank accounts have been called for and where not received is being
followed up.
8 During the year, the Company has divested its stake held in SDB
Cisco(India) Ltd. on 09.08.2010 and as a result, SDB Cisco and its
subsidiary viz. Modern Protection and Investigations Ltd, ceased to be
the subsidiaries of the Company w.e.f. 09.08.10.
9 Events occurring after the Balance Sheet date - The company has
acquired 100% of the equity of M/s Wilson Cables Private Limited,
Singapore as at 01.04.11 and this company will become a wholly owned
subsidiary for the year ending 31.03.12.
10 Previous year's figures have been regrouped and rearranged wherever
necessary.
11 Related Party Disclosure
1 Related parties where control exists
Subsidiary Companies
South India House Estates and Properties Ltd.
SDB Cisco (India) Ltd.
Modern Protection & Investigations Ltd. (subsidiary of SDB Cisco)
2 Other related parties with whom trade transactions have taken place
during the year Key Management Personnel
S Arumugam Managing Director
Managerial Remuneration Rs.35.00 lakhs p.a. (Rs.30 lakhs p.a.)
Mar 31, 2010
1 In accordance with Accounting Standard -29, the following is
considered as Contingent Liability and Provision.
a Sales tax and Income tax demands together with penalties under appeal
amounts to Rs.1.72 lakhs. (Rs.1.72 lakhs)
b Guarantees given by bankers for Performance of Contracts and others-
Rs.227.14 lakhs (Rs.272.60 lakhs).
2 Letter of Credit outstanding for purchase of materials is Nil (Rs.
148.03 lakhs).
3 Investments
No provision is considered necessary for shortfall in market value of
certain quoted investments ascertained on individual basis amounting to
Rs.630.88 lakhs (Rs.1047.61 lakhs) significant portion of which relate
to companies promoted by the Company which is considered temporary in
nature.
4 Sundry Debtors, Loans and Advances and Deposits include certain
overdue and confirmed balances. Some of the accounts are under
reconciliation. These include
a Rs. 1238.1 5 lakhs (Rs.2392.54 lakhs) covered by court cases under
arbitration.
b Advance to a subsidiary amounting to Rs.6727.54 lakhs (Rs.6921.16
lakhs) is considered good and recoverable as the intrinsic value of the
investments held by that company are more than the values stated in the
books of that company.
5 Provision for taxation includes Rs.0.16 lakhs (Rs.0.10 lakhs) towards
Wealth tax.
6 Balance with central excise authorities includes unutilised cenvat
credit of Rs. 1 5.45 lakhs (Rs.1.81 lakhs).
7 Letters of confirmation of balances in personal accounts of
suppliers, debtors and principals, loans and advances and in-operative
bank accounts have been called for and where not received is being
followed up.
8 Previous years figures have been regrouped and rearranged wherever
necessary.
9 Related Party Disclosure
1 Related parties where control exists
Subsidiary Companies
South India House Estates and Properties Ltd.
SDB Cisco (India) Ltd.
Modern Protection & Investigations Ltd.
2 Other related parties with whom trade transactions have taken place
during the year Key Management Personnel
S Arumugam Director and CEO * ;
* Designation was changed as Managing Director with revised terms w.e.f
01.04.10
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