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Delta Corp
BSE: 532848|NSE: DELTACORP|ISIN: INE124G01033|SECTOR: Finance - General
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« Mar 13
Notes to Accounts Year End : Mar '14
1. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED
 FOR)
 
                                                           (Rs. in Lacs)
 
                                                        As at 31st March
 
 Particulars                                            2014        2013
 
 (i)  Contingent Liabilities
 
 (a)  Claims against the Company''s Disputed 
      Liabilities not Acknowledged as Debts.
      Appeal filed in respect of disputed demand 
      of Income Tax for Assessment Year 2007-08       146.22      146.22
 
 (b)  Guarantees
 
      * Corporate Guarantees given for Credit 
        facilities taken by Subsidiary Companies   15,836.54   22,825.15
 
      * Guarantees given by the Company''s Banker 
        in the normal course of business              566.17           -
 
 (c)  Other money for which the Company is 
      contingently liable for litigation matter
 
      * Bond given to Custom Authority              3,580.75           -
 
                                                   20,129.69   22,971.37
 
 (ii) Commitments
 
      Estimated Amount of Contracts Remaining to 
      be Executed on Capital Account and not 
      Provided for in respect of Capital Assets 
      (Net of Advances paid)                           80.43           -
 
                                                       80.43           -
 
 (iii) The Company has obtained licenses under the Export Promotion
 Credit Guarantee (''EPCG'') Scheme for importing capital goods at a
 concessional rate of custom duty against submission of bank guarantee
 and bonds.
 
 Under the terms of the respective schemes, the Company is required to
 earn foreign exchange value equivalent to, eight times and in certain
 cases six times of the duty saved in respect of licenses where export
 obligation has been fixed by the order of the Director General Foreign
 Trade, Ministry of Finance, as applicable with in a specified period
 from the date of import of capital goods. The Export Promotion Capital
 Goods Schemes, Foreign Trade Policy 2009-2014 as issued by the Central
 Government of India, covers both manufacturer''s exports and service
 providers. Accordingly, in accordance with the Chapter 5 of Foreign
 Trade Policy 2009-2014, the Company is required to export goods of FOB
 value of Rs. 3,675.32 Lacs (Previous Year : Rs. Nil). Non fulfillment
 of of the balance of such future obligation, if any entails to the
 Government to recover full duty saved amount and other penalties under
 the above referred scheme.
 
 (iv) Subsequent to the balance sheet date, there was a search action at
 the premises of the Company under section 132 of the Income Tax Act,
 1961. Proceedings related to it are yet not concluded.  Hence, with
 regard to the said matter, tax liability, if any, which is not
 quantifiable, is not provided in the books of accounts. Tax & related
 consequential amounts, if any, will be provided on completion of the
 proceedings.
 
 2. SEGMENT DISCLOSURES
 
 As per Accounting Standard (AS) 17 - Segment Reporting, segment
 information has been provided under notes to Consolidated Financial
 Statements.
 
 Notes:
 
 * Loans and Advances shown above, to subsidiaries and associates fall
 under the category of Loans and Advances in nature of Loans where there
 is no repayment schedule and are re-payable on demand. Investment made
 in Compulsory Convertible Debenture (CCD) are not reported here.
 
 * Loan to employees as per Company''s policy is not considered.
 
 b) Investment by the loanee in the share of the Company
 
 None of the loanees and loanees of subsidiary Companies has, per se,
 made investments in shares of the Company.
 
 
 3. Pursuant to the Scheme of Amalgamation (''the Scheme'') between the
 Company and AAA Township Private Limited, Aman Infrastructure Private
 Limited, Argyll Hotel Private Limited, Delta Adventures and
 Entertainment Private Limited, Samarpan Township Private Limited,
 Samarpan Properties and Construction Private Limited, Shree Mangesh
 Realty Private Limited having business in real estate, Delta
 Hospitality and Leisure Private Limited, Delta Hospitality and
 Entertainment Private Limited, Victor Hotels and Motels Limited and
 Delta Leisure and Entertainment Private Limited all having business in
 hospitality & gaming segment and as approved by the respective
 shareholders of transferor and transferee Companies and subsequently
 approved by the Honorable High Court of Bombay Judicature at Goa and
 High Court of Judicature at Bombay vide its Order dated 2nd May, 2014
 and 9th May, 2014 respectively, which has been filed with the Registrar
 of Companies on 21st May, 2014 and 26th May, 2014 (the Effective Date),
 the entire business and the whole undertakings of all transferor
 Companies were transferred to, as a going concern and became vested in
 the Company, effective from 1st April, 2013 (the appointed date) for
 all transferor Companies except Victor Hotels & Motels Limited. Entire
 business and whole undertaking of Victor Hotels & Motels Limited were
 transferred with effective date of 1st October, 2013. As per the
 conditions prescribed in the Accounting Standard (AS) 14 - Accounting
 for Amalgamations (AS 14), the Company has adopted Purchase Method
 prescribed under the AS 14.  Accordingly, accounting treatment given as
 per the scheme approved by the Hon''ble High Court has been given effect
 in the above financial statements and the same is as under:
 
 * All the Assets and Liabilities of transferor Companies as at
 respective dates were incorporated in the financials of the Company at
 their fair value.
 
 * Inter-Company balances, if any, stands Cancelled.
 
 * The Equity Shares, if any held by the Transferee Company or its
 Wholly Owned Subsidiary in the Transferor Company stands cancelled and
 there shall be no further obligation/outstanding in that behalf and no
 consideration paid on account of amalgamation.
 
 * The excess/(shortage) of Net Assets of the Transferor Companies
 transferred to the Transferee Company over the Investment value held by
 transferor Company, in case of shortage debited to Goodwill account and
 in case of excess credited to Capital Reserve of the Transferee
 Company.
 
 4. a) According to the merger scheme approved by the Honorable High
 Court of Bombay and Goa,
 
 the Company has taken all the assets and liabilities according to their
 Fair Value. Fair value for all such purposes is taken as on the
 amalgamation date i.e. appointed date: 1st April, 2013 and 1s October,
 2013, which is being worked upon by a recognized valuer. While deriving
 upon the valuation as on the appointed date, the valuer has factored
 all the events which took place between the appointed date & effective
 date and accordingly, the impact of difference, if any, arising on
 account of such factoring has been adjusted in the value of such assets
 on the appointed date for recognizing the Capital Reserve in accordance
 with Accounting Standard 14 - Accounting for Amalgamations. In the
 absence of the fair value report as on the appointed date without
 considering the subsequent events to the appointed date, impact of such
 adjustment, if any, is not quantifiable.
 
 b) According to the merger scheme approved by the Honorable High Court
 of Bombay and Goa, in one of the valuation aspect, the Company has
 taken the assets based on the management estimate. Such management
 estimate is derived upon after considering all the events which took
 place between the appointed date & effective date and accordingly, the
 impact of difference of Rs. 1,386.60 Lacs, arising on account of such
 factoring has been adjusted in the value of such assets on the
 appointed date for recognizing the Capital Reserve in accordance with
 Accounting Standard 14 - Accounting for Amalgamations.
 
 5. Post balance sheet date, the Company has received an order towards
 the merger scheme from the Honorable High Court of Bombay Judicature at
 Goa and High Court of Judicature at Bombay. Same has been filed with
 Registrar of Companies on 21st of May, 2014 and 26th May, 2014 i.e. an
 effective date. Based on the EAC opinion issued by the ICAI Accounting
 for amalgamation after the balance sheet date and the practical
 approach being followed by the Corporate World, effect of the said
 court order has been incorporated in the financial statement of
 2013-14, though it is strictly not in conformity with the paragraph 46
 of Accounting Standard -14 Accounting for Amalgamations.
 
 6. EXCEPTIONAL ITEMS
 
 An exceptional item included in financial statement is on account of
 gain of Rs. 1,546.11 Lacs arising on partial liquidation proceeds
 received from overseas subsidiary (in Liquidation) in Current Year and
 provision made for diminution in value of Investment and loans &
 advances in Foreign Subsidiary in the business of online gaming
 amounting to Rs. 268.02 Lacs and Rs. 1,156.03 Lacs respectively.  In
 Previous Year, an exceptional item included in financial statement is
 comprised of employee compensation expenses written back during the
 year. Due to the unexpected decrease in share price of the Company,
 which has fallen beyond exercise price of Rs. 51 for ESOP granted in
 November, 2012 tranche, employee of the Company and its subsidiaries
 companies have surrendered their rights of ESOP to the Company. The
 Compensation Committee of the Board of Directors of the its Company at
 its meeting held on March 30, 2013, has accordingly, cancelled
 23,15,100 options granted to grantees under ESOP Scheme of the Company.
 In view of the same, the Compensation Cost debited
 
 7. MAT CREDIT ENTITLEMENT
 
 MAT Credit Entitlement of Rs. 2,015.81 Lacs (Previous Year Rs. 1,808.11
 Lacs) is based on future business projections of Company as projected
 by Management, and the same have been relied upon the Auditors.
 
 8. Borrowing cost capitalized for the year amounts to Rs. Nil (Previous
 year Rs. Nil Lacs).
 
 9. PREVIOUS YEAR COMPARATIVES
 
 Previous year''s figures have been regrouped/ rearranged/
 recasted/reclassified/ re-adjusted wherever necessary to conform to the
 Current Year''s classifications. Current Year Figures are really not
 Comparable with corresponding Previous Year figures as Current Year
 Figures includes the figures of amalgamated Companies.
Source : Dion Global Solutions Limited
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