1.Contingent Liabilities not provided for
As at 31.03.2011 As at 31.03.2010
i) Bills Discounted with banks 689,538,265 243,961,947
ii) Bank Guarantees given by Banks 1,229,922,189 343,929,658
iii) Claims contested by the company 500,000 500,000
iv) Claims by Customs & Income Tax NIL NIL
v) Claims by Sales Tax Authorities
– contested by the company 33,891,667 NIL
3. Share capital
The company has during the financial year 2009-10 issued 7,679,410
equity shares of 10/- each at a premium of Rs. 238/- per share pursuant
to companies Initial Public Offering.
4. Security Premium
The paid up capital of the company stands increased in the financial
year 2009-10 consequent to Issue and allotment of Shares under the
Initial Public Offering of the company at Rs 248/- per share of Rs 10/-
each at a premium of Rs 238/- per share.
Consequent to the above the security premium account under Reserves &
Surplus stands at Rs.1,987,404,580/- for the financial year 2009-10.
5. Secured Loans Term Loans
a) Term Loans from IDBI Bank, Axis Bank and Punjab National Bank are
o first equitable mortgage and charge on all fixed assets, both present
and future of the company situated at Survey No. 82,83, 92 - 95 & 107,
Medchal Mandal, R.R.Dist. o first equitable mortgage and charge on all
fixed assets, both present and future of the company situated at Suvrey
No. 41, Majidpally Village, Toopran Mandal, Medak District. Andhra.
o further secured by second paripassu charge on entire current assets
of the company.
b) Term Loan from Tata Capital Limited (TCL) taken on 30th Oct 2009 to
fund the long term working capital requirement of the company. The loan
is secured by unconditional and Irrevocable Personal Guarantees of Mr.
Rajesh Agarwal and Mr. Mukesh Agarwal. Promoters have also pledged
shares held by them in the company to the tune of 2.0 times of the loan
amount till the time of satisfactory clearance of security
documentation as prescribed by TCL. Post this, the 0.5 times of such
shares pledged would be revoked back by TCL.
Further the above loan is secured by a charge on Land situated at
Sy.No. 119, 120, 121 and 122 at athvelly village, Medchal Mandal, Ranga
Reddy District admeasuring Ac.3.10 guntas.
Term Loan from Tata Capital Limited (TCL) has been paid back during the
Working Capital loans
Working Capital loans from Syndicate Bank, Axis Bank, Punjab National
Bank, State Bank of India and State Bank of Mysore & State Bank of
Hyderabad is under a working capital consortium with State Bank of
India being the consortium Leader. The working capital loans are
secured by first exclusive charge on stocks, receivables, spares,
consumables and other current assets of the Company, present and
future. Collateral security of equitable mortage of property situated
at Plot No. 42 (part) in Survey No. 258/1 & 259 situated at Jeedimetla
Industrial Area, Shapurnagar, RR District, AP admeasuring appx
22,439.26 sq. yrds in the name of Agarwal Developers and Residential
Flat No: 103, 2nd Floor Block D, Trendset Valley View Apartments at
Banjara Hills, Road Number 6, Hyderabad in the name of Mr Rakesh
Agarwal & Mr Mukesh Agarwal. The above loans are further secured by
Pari passu second charge on the entire fixed assets of our Company,
both present and future. All Term Loan (except Tata Capital Limited) &
Working Capital Loans are further secured by: o 30% pledge of equity
shares of promoters holding as collateral security ranking paripasu
o Exclusive 10.48% pledge of shares of the Promoters in favour of State
Bank of India
o Corporate guarantee of i-Vantage India Private Ltd,
o Personal guarantees of Shri Rajesh Agrawal (Managing Director), Shri
Rakesh Agarwal (Joint Managing Director) and Shri Mukesh Agarwal (Whole
time Director) of the company
6. Un-Secured Loans
Short Term Loan from Punjab National Bank taken on 31st Dec 2009 to
build up the Net working capital and for meeting the deficit on account
of cash flow mismatches.
Mr. Rajesh Agarwal, Mr Rakesh Agarwal and Mr. Mukesh Agarwal have given
personal security for the above loan by way of postdated cheque.
This loan has been paid back during the current year.
8. Micro, Small and Medium Enterprises Development Act The Company has
not received intimation from vendors regarding their status under the
Micro, Small and Medium Enterprises Development Act, 2006 and hence
names of Micro, Small and Medium Enterprises to whom the company owes
any sum together with interest unpaid as on the date of balance sheet
is not ascertainable.
11. Related Party Disclosures :
I) List of Related parties with whom transactions have taken place and
nature of relationship:
i) Subsidiary : BS InfraTel Ltd
: Sugan Automatics Private Limited
ii) Key management personnel : Mr. Rajesh Agrawal
: Mr. Rakesh Agarwal
: Mr. Mukesh Agarwal
: Mr. D G Sohony
(Executive Director till Feb 2011)
iii) Relatives of Key management personnel : Mrs. Reema Agarwal
: Mrs. Rakhee Agarwal
: Mrs. Shalini Agarwal
: Mrs. Shakuntala Devi Agarwal
iv) Concerns in which Key management personnel have substantial
interest - (significant interest entities)
: Shivganga Infrastructures Ltd.
: Agarwal Developers
: I-Vantage India Pvt. Ltd.
: I-Vantage Apac Pvt. Ltd.
17. Employee stock purchase plan (ESPP)
During the year 2008-09 the company announced an Employee Stock
Purchase Plan (ESPP) to its eligible employees as defined in Employee
Stock Purchase Plan Scheme approved by the Shareholders at the
Extraordinary General Meeting of the Company held on 20th May 2008. On
7th June 2008, 64,250 equity shares of Rs.10/- each at a price of
Rs.50/- per share including premium of Rs.40/- per share were allocated
to the eligible employees in terms of the Scheme. The fair value of
share as valued by the merchant banker as on 31st March 2008 is
Rs.33.13 per share. Since, the fair value of the share is less than the
allotted price; no disclosure is made for Employee Stock compensation
as per the Employee stock option scheme and Employee Stock Purchase
Scheme Guidelines 1999 (as amended) issued by Securities and Exchange
Board of India.
18. Segment Reporting
The Company is primarily engaged in the business of Engineering,
Procurement and Construction business (EPC). As such there is no other
separate reportable segment as defined by Accounting Standard - 17
19. Misc. Expenditure Share issue expenses:
Expenditure related to the public issue of shares amounting to Rs.
95,044,740/- will be written off / adjusted commencing with the current
year and as such an amount of Rs. 19,008,948/- is charged to Profit &
Loss account in the current financial year.
20. Balances relating to Debtors, Creditors, Loans and Advances are
subject to reconciliation & confirmation.
21. During the year the Company has made an investment of Rs 166,650/-
by acquiring 1/3rd share in SPV for BOOM Project awarded by Rural
23. Figures for the previous year have been rearranged/ regrouped /
recast wherever necessary to conform to the current year presentation/
24. Figures are rounded off to the nearest rupee.