SENSEX NIFTY India | Notes to Account > Infrastructure - General > Notes to Account from BGR Energy Systems - BSE: 532930, NSE: BGRENERGY
BGR Energy Systems
BSE: 532930|NSE: BGRENERGY|ISIN: INE661I01014|SECTOR: Infrastructure - General
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« Mar 14
Notes to Accounts Year End : Mar '15
 BGR Energy Systems Limited (''the company'') is a public limited company
 incorporated under the provisions of the Companies Act, 1956. Its
 equity shares are listed on Bombay Stock Exchange (''BSE'') and National
 Stock Exchange (''NSE'').The company is a manufacturer of capital
 equipments for Power Plants, Petrochemical Industries, Refineries,
 Process Industries and undertakes turnkey Balance of Plant (''BOP'') and
 Erection Procurement and Construction (''EPC'') contracts for Power
 plants. The company has been achieving its objectives through its five
 business units: Power projects, Electrical projects, Oil and Gas
 equipment, Environmental engineering and Air Fin Coolers.
 2.  Terms/rights attached to equity shares
 The company has one class of shares referred to as equity shares having
 a par value of Rs 10. Each holder of equity shares is entitled to one
 vote per share.
 Gratuity plan
 The company operates gratuity plan wherein every employee is entitled
 to the benefit equivalent to fifteen days salary last drawn for each
 completed year of service. The same is payable on termination of
 service or retirement whichever is earlier. The benefit vests after
 five years of continuous service.
 Stock option granted to the employees under the stock option scheme
 established are evaluated as per the accounting treatment prescribed by
 the SEBI (Employee Stock Option Scheme and Employee Stock Purchase
 Scheme) Guidelines, 1999. The company follows the intrinsic value
 method of accounting for the options and accordingly, the excess of
 value of the stock options as determined by an independent valuer on
 the date of grant over the exercise price of the options, if any, is
 recognized as deferred employee compensation cost and is charged to the
 statement of profit and loss.
 Employee Stock Option Scheme - 2007
 Pursuant to the decision of the shareholders, at their meeting held on
 July 11, 2007, the company has established an ''Employee Stock Option
 Plan 2007'' (''ESOS 2007'' or ''the Scheme'') to be administered by the
 Compensation Committee of the Board of Directors. ESOS 2007 provides
 for grant of options amounting to not more than 1.5% of the issued and
 paid up equity capital of the company outstanding at any point of time
 to officers, directors and key employees to purchase equity shares of
 face value of Rs.10 each, with such option conferring a right upon the
 employee to apply for one equity shares of the company, in accordance
 with the terms and conditions of such issue. The exercise price of the
 option is Rs.408
 3. LEASES Operating lease
 The company has taken various residential / commercial premises and
 land under cancellable and non-cancellable operating leases. These
 lease agreements are normally renewed on expiry.
 4. PARTICULARS OF RELATED PARTIES List of related parties
 a. Subsidiary companies
 i. Progen Systems and Technologies Limited
 ii. BGR Boilers Private Limited
 iii. BGR Turbines Company Private Limited
 iv.  Sravanaa Properties Limited
 b. Associate company - Nil
 c. Other companies (enterprises where significant influence exists and
 enterprises where key management personnel have significant influence)
 i. GEA Cooling Tower Technologies (India) Private Limited
 ii. GEA BGR Energy System India Limited
 iii. Mega Funds India Limited
 iv.  Sasikala Estate Private Limited
 v.  Schmitz India Private Limited
 vi. Cuddalore Powergen Corporation Limited
 vii. ANI Constructions Private Limited
 viii. Nannilam Property Private Limited
 ix.  BGR Odisha Powergen Limited
 d. Joint venture
 Mecon - GEA Energy System (India) Limited (JV)
 e. Key Management Personnel
 i. Mr.A.Swaminathan             Joint Managing Director and CEO
 ii. Mr. VR. Mahadevan           Joint Managing Director
 iii. Ms. Swarnamugi Karthik     Director - Corporate Strategy
 f. Relatives of Key Management Personnel
 i. Mrs. Sasikala Raghupathy (Mother of Ms.Swarnamugi Karthik)
 ii. Ms. Priyadarshini Raghupathy (Sister of Ms.Swarnamugi Karthik)
 iii. Ms. Vaani Raghupathy (Sister of Ms.Swarnamugi Karthik)
 iv.  Mr. Arjun Govind Raghupathy (Brother of Ms.Swarnamugi Karthik)
 Party-wise disclosure of related party transactions:
 5.  Sales represent, GEA Cooling Tower Technologies (India) Private
 Limited Rs. 3315 lakhs ( Rs. 2736 lakhs).
 6. Purchases represent, Progen Systems and Technologies Limited Rs. 955
 lakhs (Rs. 260 lakhs), GEA Cooling Tower Technologies (India) Private
 limited Rs. 3655 lakhs (Rs.2452 lakhs), GEA BGR Energy System India
 Limited Rs. 142 lakhs (Rs. 41 lakhs), BGR Boilers Private Limited Rs.
 80354 lakhs (Rs 17707 lakhs), BGR Turbines Company Private Limited Rs.
 47430 lakhs (Rs. 492 lakhs), Schmitz India Private Limited Rs.61 lakhs
 7.  Sale of Investments represent, BGR Investment Holdings Company
 Limited Rs. Nil (Rs. 34 Lakhs), BGR Power Limited Rs. Nil (Rs.  10
 8. Remuneration to key management personnel represents, Mr.
 B.G.Raghupathy Rs. Nil (Rs. 44 lakhs), Mr. VR. Mahadevan Rs. 129 lakhs
 (Rs.147 lakhs), Mr. A. Swaminathan Rs. 181 lakhs (Rs. 206 lakhs), Mr. K
 Chandrashekhar Rs.24 lakhs (Rs. 97 lakhs), Ms. Swarnamugi Karthik Rs. 88
 lakhs (Rs. 88 lakhs).
 9.  Remuneration to relatives of key management personnel represent,
 Ms.Priyadarshini Raghupathy Rs. 28 lakhs (Rs. 32 lakhs), Ms.  Vaani
 Raghupathy Rs. 6 lakhs (Rs.8 lakhs), Mr. Arjun Govind Raghupathy Rs. 5
 lakhs (Rs.4 lakhs).
 10.  Rent paid represents, GEA BGR Energy System India Limited. Rs. 0.30
 lakhs (Rs. 0.28 lakhs), Sasikala Estate Private Limited Rs. 83 lakhs
 (Rs. 89 lakhs), ANI Construction Private Limited Rs. 9 lakhs (Rs. 9
 lakhs). Mrs. Sasikala Raghupathy Rs. 44 lakhs (Rs. 42 lakhs), Sravanaa
 Properties Limited Rs. 18 lakhs (Rs. 18 lakhs).
 11.  Sale of fixed assets represent, Progen System and Technologies Ltd
 Rs. 0.12 lakhs (Rs. Nil), GEA BGR Energy System India Ltd Rs.  4 lakhs
 (Rs. Nil)
 12.  Others represent, royalty to Mr. B.G. Raghupathy Rs. Nil (Rs. 8
 lakhs), Mrs. Sasikala Raghupathy Rs. 25 lakhs (Rs. 17 lakhs).
 13.  Advances given represent, Progen Systems and Technologies Limited
 Rs. 1043 lakhs (Rs. 931 lakhs), BGR Boilers Private Limited Rs. Nil
 (Rs. 38192 lakhs), BGR Turbines Company Private Limited Rs. Nil (Rs.
 241 lakhs), GEA BGR Energy Systems India Limited Rs. 304 lakhs (Rs. 60
 lakhs), GEA Cooling Tower Technologies (India) Private Limited Rs. 1247
 lakhs (Rs. 474 lakhs).
 14. Gurantees given represent, Progen Systems and Technologies Limited
 Rs. 20 lakhs (Rs. 51 lakhs), GEA Cooling Tower Technologies (India)
 Private limited Rs. 661 lakhs (Rs. 661 lakhs).
 15. Balances outstanding (Net) represent, Progen Systems and
 Technologies Limited Rs. 1623 lakhs (Rs.1277 lakhs), BGR Boilers
 Private Limited Rs. 7580 lakhs (cr.bal) (Rs.22898 lakhs), BGR Turbines
 Company Private Limited Rs. 16378 lakhs (cr.bal) (Rs. 12348 lakhs), GEA
 Cooling Tower Technologies (India)Private Limited Rs. 595 lakhs
 (cr.bal) (Rs.74 lakhs), GEA BGR Energy System India Limited Rs. 240
 lakhs (Rs.66 lakhs) , Cuddalore Powergen Corporation Limited Rs. 671
 lakhs (Rs.671 lakhs), Nannilam Property Private Limited Rs. 508 lakhs
 (Rs.508 lakhs), Mega Funds India Limited Rs. 39 lakhs (Rs. 39 lakhs),
 Schmitz India Private Limited Rs. Nil (Rs. 60 lakhs), B.G.Raghupathy
 Rs. Nil (Rs. 8 lakhs (cr. bal)), Sravanaa Properties Limited Rs. 6
 lakhs (Rs. 6 lakhs), Sasikala Estate Private Limited Rs. 7 lakhs
 (cr.bal) (Rs. 7 lakhs (cr.bal)), ANI Constructions Private Limited
 Rs.0.77 lakhs (cr.bal) (Rs.Nil)Mrs. Sasikala Raghupathy Rs. 36
 lakhs(cr. bal)(Rs. 39 lakhs(cr. bal)).
                                                           Rs. in Lakhs
                                                 As at        As at
 Particulars                               March 31,2015   March 31,2014
 A Contingent liabilities
 Claims against the company not
 acknowledged as debt
 a)  On account of sales tax *                 29154               4222
 b)  On account of income-tax                  10848              10848
 c)  On account of service tax **                 25                 25
 d)  On account of provident fund                521                  -
 e)  On account of contractual
 obligations                                    2350               2350
 f)  On account of royalty                      4547               4547
 B Guarantees
 Guarantees and counter guarantees given         681               712
 on behalf of subsidiary and
 other company
 C Capital commitments
 Estimated amount of contracts remaining       471                817
 to be executed on capital
 account (net of
 D Other commitments
 Commitments to fund subsidiaries              5923               5681
 * Sales tax includes an amount of Rs. 23740 lakhs (Rs. Nil) (excluding
 interest and penalty) which has been contested by the VAT authorities
 before the Rajasthan Tax Board.
 ** Service tax represents a sum of Rs. 25 lakhs (Rs. 25 lakhs)
 (excluding interest and penalty) which has been contested by the
 service tax authorities before the Customs Excise and Service Tax
 Appellate Tribunal.
 a.  Cash generating units :
 There is no impairment loss in cash generating units and hence no
 provision was made in the financial statements.
 b.  Other assets :
 The company has made a provision of Rs. Nil (Rs. 32 lakhs) in the books
 of accounts towards impairment of other fixed assets based on the
 technicial valuation.
 17. In respect to construction contracts, cost of material includes
 value added tax, central sales tax, works contract tax and service tax.
 18. Interest income from fixed deposits have been netted off with
 interest expense on working capital facilities..
 19.  As required under Section 135 of Companies Act 2013, the company
 is required to spend Rs.510 lakhs towards Corporate Social
 Responsibility (CSR) activities. The company is in the process of
 identifying programmes\projects, in accordance with the policy. Hence
 no expense has been either incurred or provided in the books during the
 financial year.
 20.  During the current financial year, notice under section 153A of
 the Income-tax Act 1961 was received and accordingly the company has
 since filed tax returns. Due to the revision, Rs.988 lakhs income tax
 has been provided during the year and adjusted against MAT credit
 available and disclosed under tax relating to earlier years.
 a) The company has made a provision / transfer of Rs. 2336 Lakhs
 (reversal) (Rs.477 Lakhs) towards warranty and contractual obligations
 on the products supplied / contracts executed by the company during the
 year. The expenses on account of provision for warranty is grouped
 under other administrative expenses.
 Figures of previous year have been regrouped / rearranged, wherever
 required to conform to the current year presentation.
Source : Dion Global Solutions Limited
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