Real-time Stock quotes, portfolio, LIVE TV and more.
-3.25 (-4.12%)
-3.35 (-4.25%) | Accounting Policy | Year : Mar '12 | ||||
1 BASIS OF PREPARATION
These abridged revised financial statements have been prepared on the
basis of the complete set of revised financial statements for the year
ended March 31, 2012 in accordance with the requirements of Rule 7A of
the Companies (Central Government''s) General Rules and Forms, 1956.
2[6] FOREIGN CURRENCY COMPULSORY CONVERTIBLE BONDS
The Company had issued FCCBs of USD 115 million on June 15, 2010 and
USD 147 million on July 9, 2010 which were convertible into 38,833,443
and 45,016,372 equity shares or into 253,813 and 294,224 GDSs at a
fixed price of Rs. 138 per share and Rs. 153 per share at the option of the
holders of the FCCBs until their maturity dates of June 15, 2028 and
September 30, 2028 respectively. The bonds bear interest of 5% per
annum, subject to certain conditions, on the outstanding principal
amount of the bonds from (and including) January 1, 2016 payable semi-
annually.
During the year, the terms of the bonds have been amended whereby the
above bonds have now become compulsorily convertible into equity shares
/ GDSs on the same terms and conditions as above.
3[7(ii)(a)&(c)] REPAYMENT AND OTHER TERMS:
a) Secured redeemable non - convertible debentures (NCDs) of Rs.
105/- each consists of : 16,918,250 (Previous year 16,918,250) - 12.50%
NCDs of Rs. 105/- each amounting to Rs. 177.64 crore (Previous year Rs.
177.64 crore) with repayments starting from December 2014 ending in
June 201 8.
700,000 (Previous year 700,000)- 12.5% NCDs, of Rs. 100 each on private
placement basis partly paid up at Rs. 93.86 per debenture amounting to Rs.
6.57 crore (Previous year Rs. 6.57 crore), with repayments starting from
December 2014 ending in June 2018.
The Hon''ble High Court of Gujarat has, in response to the Company''s
petition, ruled vide its orders dated August 04, 2006 and August 1 1,
2006 that the interest on certain categories of debentures should be
accounted on cash basis. In accordance with the said petition / order,
funded / accrued interest liabilities amounting to Rs. 428.24 crore
(Previous year Rs. 355.95 crore) as at March 31, 2012 have not been
accounted for. This amount carries interest rate ranging from 5% to
12.50% and are repayable from December 2014 ending in March 2027
c) The MRA dated December 17, 2004 entered pursuant to Corporate Debt
Restructuring Scheme, gives an option, subject to consent of its
lenders, to the Company to prepay funded interest loan (FS Loan) of Rs.
2,471.63 crore (Previous year Rs. 2,471.63 crore) at any point in time
during their term at a reduced amount computed in accordance with the
mechanism provided in the MRA or in full, by one bullet payment in
March, 2026. Interest on FS loan was not payable if FS loan was prepaid
by April 24, 2012 and therefore considering the plans to prepay FS
loan, interest liability on FS was earlier considered as a contingent
liability and now recognised as loan as the same is funded. The
Company''s proposal to exit from Corporate Debt Restructuring (CDR)
was approved by CDR Empowered group and recommended to CDR Core Group
for final approval during the year. The revised terms proposed for CDR
exit, inter alia, includes an option to prepay funded interest on FS
Loan amounting to Rs. 684.08 crore as at March 31, 2012 at a reduced
amount at any point of time during its term and accelerated repayment
schedule of FS Loan with instalments during March 2021 to March 2026.
The repayment terms of funded interest on FS loan is in 40 equal
quarterly instalments beginning June 30, 2015 as per MRA and there is
no change in these terms as per CDR exit proposal.
Similarly, Rs. 206.88 crore (Previous year Rs. 206.88 crore) due to a
lender (other funded interest loan) is payable by a single bullet
payment in 2031 with an option to prepay this amount as per the agreed
terms at a reduced amount at any point of time during its term.
In order to reflect substance of the above, in terms of presentation in
balance sheet, an amount of Rs. 2,260.35 crore (Previous year Rs. 2,088.06
crore) {including Rs. 1,720.28 crore of FS loan (Previous year Rs. 1,909.88
crore ), Rs. 364.87 crore of funded interest on FS Loan (Previous year Rs.
Nil) and Rs. 175.20 crore of other funded interest loan (Previous year Rs.
178.18 crore)} being the amount not payable as at Balance Sheet date
has been presented as deduction from the funded interest facilities
under secured loans/borrowings to reflect the present obligation on the
balance sheet date. The changes in the present obligation of the said
loans subsequent to capitalisation of the Refinery Project till the
date of balance sheet is treated as finance cost/exceptional item in
the statement of profit and loss. |
|||||
![]() | |||||
| Source : Dion Global Solutions Limited | |||||
![]() | |||||