A. NATURE OF OPERATION :
The Company offers vide range of CATV products to cable operators and
broadcasters, CATV/ SMATV and energy saving equipments to hotels and
security solutions to hotels, shopping malls and big commercial
1. Contingent Liabilities :
As At As At
i) Unexpired Bank Guarantee 4,294,074 2,616,521
ii) Claim against the company not
acknowledged as debits 5,850,053 5,850,053
iii) Unexpired Letter of Credits 1,599,900 1,025,355
iv) Estimated amount of capital
contracts remaining to be — —
executed and not provided for.
Note : Based on the favorable decisions in similar cases/legal opinions
taken by the company/discussions with its legal advisors etc. the
Company believes that it has good cases in respect of the item no. (ii)
and hence no provision there against is considered necessary.
2. Employees Benefit :
a) The Company has adopted the revised Accounting Standard (AS) 15,
''Employee Benefits'' issued by the Institute of Chartered Accountants of
India w.e.f. 1st April 2007.
b) Contribution to Provident Fund : Amount of Rs 1655238/- (Previous
year Rs 1610050/-) is recognised as an expense and included in Employees
Remuneration and benefits (Refer Schedule 15) in the Profit & Loss
account for the year ended 31st March 2011.
3. The Company has initiated the process of obtaining confirmation from
suppliers who have registered themselves under Micro and Small Medium
Enterprises Development Act. 2006 (MSMED Act, 2006). Based on the
information available with the Company, the balance due Micro and Small
Medium Enterprises as defined under the MSMSED Act, 2006 is Nil.
Further no interest during the year has been paid or payable under the
terms of the MSMED Act. 2006 4. Some of the customers and suppliers
accounts are pending confirmation/reconciliation and the same have been
taken as the balances appearing in the books. Any differences arising
on account of such reconciliation, which are not likely to be material,
will be accounted for as and when these reconciliations are completed.
4. Related Party Disclosure :
As per Accounting Standard (AS- 18) issued by the Institute of
Chartered Accountants of India, information in terms of the said
Standard, are disclosed below :
i. The Company does not have any related party transaction, where
ii. Related Parties with whome transactions have taken place during
the year ended 31st March, 2010 :
a) Key Managerial Personnel :
Mr. S. A. Abbas
Mr. Sudhir Damodaran
b) Relatives of Key Managerial Personnel :
Mrs. Hina Abbas Mrs. A.C. Damodaran
5. In the opinion of the Board of Directors, Current Assets, Loans and
Advances are approximately of the value stated, if realised in the
ordinary course of business.
Notes: The above figures do not include provision for gratuity as
separate actuarial valuation is not available for whole time directors.
6. Segment Reporting Policies:
a) Primary Segment: Based on the guiding principle given in the
Accounting Standard - 17 Segment Reporting issued by the Institute of
Chartered Accountants of India, the Company has identified two business
segments as primary segments. The reportable business segments are
Products and Operations & Services. These segments have been
identified considering the nature of the products and the internal
financial reporting systems. Revenue and expenses have been accounted
for based on the basis of their relationship to the operating
activities of the segments.
Revenue and expenses, which relate to the enterprise as whole and are
not allocable to segments on a reasonable basis, have been included
under Unallocable Revenue and Expenses. Assets and Liabilities, which
relate to the enterprise as a whole and are not allocable to segments
on a reasonable basis, have been included under Unallowable
* Including value of exports made to Nepal
Note: The quantities are material and components that has been used for
Captive Consumption for rendering/ delivering services to
Telecommunications Consultants India Ltd for Common Wealth Games, 2010
are included under the respective categories of items.
7. Figures of the previous year have been regrouped/ reclassified
8. The figures have been rounded off to the nearest Rupee.