Aptech
BSE: 532475 | NSE: APTECHT | ISIN: INE266F01018 | Computers - Software - Training
- Directors Report
- Chairman's Speech
- Auditors Report
- Notes To Accounts
- Accounting Policy
- Finished Products
- Raw Materials
| Notes to Accounts | Year End : Dec '07 |
1. Estimated amounts of contracts remaining to be executed on capital account and not provided for (Net of Advances) Rs. 594,460/- (Previous year: Rs. 8,457,076/-). 2. Contingent Liabilities in respect of: No. Particulars As at 31.12.07 As at 31.12.06 (a) Counter Guarantees to banks for projects 46,097,738 77,867,842 (b) Claims against the Company not acknowledged as debts 175,390,629 134,364,265 (c) Corporate Guarantee given to the bank/others on behalf of wholly 80,655 23,746,793 owned Subsidiary Company (d) Contract for subscription of shares Subsidiary Company - 50,000,132 3. a) 3,600,000 convertible warrants were allotted on 28th October, 2005, to M/s. Aptech Investments at a price of Rs.56/- per Warrant. Each warrant was convertible at the sole option of the holder into one fully paid equity share of the Company, any time before the expiry of 18 months from its allotment. These warrants have been fully converted to Equity Shares on receipt of the balance monies in Feb’07. Consequently, Rs. 36,000,000/- has been added to Equity Share Capital and Rs. 165,600,000/- in Securities Premium Account (Refer Schedule 2). b) 4,712,500 convertible warrants were allotted on 1st October, 2006 to the promoter group at a price of Rs.113/ per Warrant on receipt of Rs.13/ per warrant amounting to Rs.61,262,500/- as required by SEBI Preferential issue guidelines. Each warrant is convertible at the sole option of the holder into one fully paid equity share of the Company, any time before the expiry of 18 months from its allotment. 2,050,000 warrants have been converted on receipt of balance amount of Rs.100/- per warrant during the year. Hence, Rs.20,500,000/- has been added to Equity Share Capital and Rs. 211,150,000/- has been added to Securities Premium. Consequently, the balance in warrants stands reduced by Rs. 26,650,000/. (Refer Schedule 2). The above proceeds were utilized towards liquidation of borrowings from banks, for growth and working capital purposes in the Company as well as newly acquired subsidiaries including process automation and towards expansion of new own centers in strategic metros. 4. Pursuant to the provisions of Section 103(4) of the Companies Act, 1956, the Company has vide order dated 27th April, 2007 of the High Court, Bombay received sanction for reduction/utilization of the Securities Premium Account to the extent of Rs.388,902,555/- for adjusting the debit balance in the Profit & Loss Account of the Company. Accordingly said amount has been reduced from the Securities Premium account on 29th June, 2007. 5. During the year, some of the subsidiaries of the Company incurred losses and/on have accumulated losses as at the year-end. a) In case of certain subsidiaries, the Company has investments in the equity shares of Rs.133,045,387/- (Previous year Rs.43,000,525/-), Loans and Advances of Rs.157,493,168/- (Previous year Rs. 100,874,059/-) including advances against share application monies Rs. NIL (Previous year Rs. 7,045,381/-) as at the year end. The said subsidiaries have been set up in recent years. Considering the strategic long-term nature of the investment and the business plans of the said subsidiaries, in the opinion of the management, the decline in the book value of the investments is temporary and the investments, loans/advances and debts will be recoverable, requiring no provision. b) In case of certain other subsidiaries the Company has investments in equity shares of Rs. 245,103,427/- (Previous year Rs. 88,866,437/-), Loans and Advances of Rs.286,334,384/- (Previous year Rs. 213,685,040/-) including advance towards share application monies of Rs. NIL (Previous year Rs.156,236,990/-) at the year end. Considering the future potential and recoverability, the Company has written back Rs.11,055,000/-,being the profits earned during the year in one of the subsidiary out of the diminution in the value of the investments of Rs.66,254,855/- provided in earlier years. The Company is continuing to carry balance of Rs.55,199,855/- as provision for diminution in value of investments and Rs.160,023,144/- towards Provisions for doubtful advances. In the opinion of the management, the balance amounts are recoverable, requiring no provision. 6. The Company cannot sell, transfer, pledge, hypothecate, encumber or create any third party interest in shares of Beijing Aptech Beida Jade Bird Information Technology Company Limited (China) except as mentioned in joint venture agreement dated 16th February, 2000 and the Articles of Association of the said company. 7. The Company and Asian Institute of Communication & Research (AICAR) have formed a strategic alliance to together create premier educational institute of world-class quality. The AICAR Business School will be a world-class Residential Institute offering Graduate Students and Corporate the opportunity to enhance skills in the research and development of management and communication practices of a standard unparalleled in most other institutes. Two-year full time Post Graduate Diploma in Management offered by AICAR Business School is approved by All India Council of Technical Education, New Delhi and is affiliated to the Directorate of Technical Education Board, Government of Maharashtra. AICAR offers various general & industry specific Management Development Programs (MDPs). Its infrastructure is also used for Aptech’s “Train The Trainers” requirements. AICAR Business School was setup in 2002 on a 33 acres of land at foothills of Matheran. It’s Wi-Fi enabled campus has air-condi- tioned classrooms, well stocked library, Computer Lab, spacious cafeteria, Gymnasium, swimming pool, and a 240 bed modern hostel. The institute plans to offer a full range of Management and Technology programs and acquire status of a University. The Company has granted as advance of Rs. 43,100,000/- at an interest rate of 8% per annum during the year to AICAR. 8. During the earlier years, the Company had formed Aptech Education Society in Chattisgarh, which established a private university viz. Aptech University. The Company being the sponsor had advanced interest free unsecured loans/advances to the society which were fully provided for in the earlier years. The Aptech University was rendered null and void by the Supreme Court vide its order dated 11th February, 2005 since the manner in which the private universities were created by the state of Chattisgarh was not strictly in accordance with the technicalities of passing the law through state legislature. Although, appropriate legal steps, on behalf of Society, had been taken, the Company considering the nature of the issue had decided not to pursue the matter. The students earlier enrolled in the Aptech University have been either transferred to other reputed Universities or have been otherwise settled by way of repayment of the fees earlier paid. The society is in the process of being dissolved. During the year, a net amount of Rs. NIL (Previous year Rs. 828,000/-) recovered from the Society has been reflected as excep- tional item in the Profit and loss account. 9. Aptech Training and Education Trust was setup for promoting a college in the state of Tamilnadu. The required clearances were not obtained/received from the Government and the connected agencies and as a result, the college could not commence its functioning. The advances made by the Company to the trust for setting up the infrastructure in the college of Rs. 9,123,807/-, are fully provided for in the books of account. 10. Sundry Debtors and Sundry Creditors and some bank balances are subject to confirmation & reconciliation. 11. The debtors are net of Rs. 128,345,769/- (Previous year Rs. 174,597,751/-) being the amounts payable to franchisees/vendors for services rendered to Institutional Clients, since as per the contract terms the same are payable only after the recovery from Institutional clients. 12. During the year, an institutional project being executed by the Company, has held back Rs.11,706,819/- (Previous year Rs. 75,161,110/-) aggregating to Rs.148,355,251/- (Previous year Rs.136,648,432/-) out of the dues receivable by the Company towards certain alleged non-fulfillment of the Contract terms without giving the requisite details for many of the items. The Company is in correspondence with the client to obtain details and resolve the difference. Pending the final outcome of such discussions, the Company has recovered an amount of Rs. 98,03,000/- (Previous year Rs. 9,138,137/-) aggregating to Rs.18,941,137/-, has provided as rebate/provision for doubtful debts in the previous years of Rs.62,000,000/- and the balance of Rs.67,414,114/- (Previous year Rs.41,022,973/-) has been reflected under Contingent Li- abilities as stated in note 2 above. Further the Company has to recover since long Rs. 45,825,927/- (Previous year Rs. 45,825,927/-) from another institutional project client [net of Rs. 41,307,817/- (Previous year Rs.45,250,208/-) payable to Business Partner only on recovery from the project client ]. As a measure of caution, the Company had provided Rs. 8,700,000/- in the earlier years. The balance is considered recoverable by the management. 13. As per the requirement of Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 the Company is still in the process of obtaining the details suppliers covered by the Act and hence, the disclosure required under the said Act are not given. 14. The Deferred Tax Asset, on unabsorbed losses and depreciation, computed in accordance with AS-22 “Accounting for Taxes on Income”, has not been recognized in the books as a matter of prudence. |
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| Source : Religare Technova | |
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