1. Company has not adopted the enhanced estimated useful life of the
asset, suggested by registered valuer as this would have resulted in
not complying with the requirment of charging minimum depreciation
contemplated by schedule XIV of Companies Act, 1956. Consquently
company charged off Rs.1877.88 Lakhs (Previous year Rs.2509.04 Lakhs) as
depreciation on revalued asset for the year. However this has no effect
on the losses of the year, as this amount is transferred from the
2. There is a charge of Rs.7 lakhs on 400 D type and 624 E type quarters
in favour of Govt. of Karnataka towards subsidy received in terms of
Subsidised Industrial housing Scheme.
3. Factory building is on the leased land,measuring 36 Kanals and 13
Marlas for which extension for lease is under process with J&K
4. With reference to Accounting Policy No.6 depreciation has been
charged on Fixed assets over their assessed useful life as under.
However, in respect of assets having original cost of Rs.50,000/- and
above, a residual balance of Rs.5/- has been retained in the books.
* i) Includes Rs.25 Lakhs value of land (Before revaluation) gifted by UP
Govt. credited to Capital Reserve.
ii) (a) Land measuring 4653.75 sq.metres has been leased to Department
of Tele communications for a period of 99 years commencing from
(b) Formal Conveyance/lease deeds in respect of Land (excepting part of
lands at Bangalore & Mankapur) are yet to be executed by the respective
(c) Land measuring 1256.86 Sq. metres has been leased to Dept. of
Telecommunications for a period of 99 years commencing from 10.07.1991.
(d) Registered valuers have revalued Land of the company on 31.3.2006.
Land with original cost of Rs Rs.1000 Lakhs and written down value of
Rs.1000 Lakhs have been revalued at Rs.228637 Lakhs, resulting in an
increase in value by Rs. 227637 Lakhs.
(iii) 1.83 acres of land is leased to Southern Railways and 0.286 acres
of land is leased to ESI corporation.
** Registered valuers have revalued Buildings of the company on
31.3.2006. Buildings with original cost of Rs.15277 Lakhs and written
down value of Rs. 4631 Lakhs have been revalued at Rs. 42388 Lakhs,
resulting in an increase in value by Rs. 37757 Lakhs.
*** i) Includes Rs.85 Lakhs of plant & machinery given free of cost by
ii) Includes Rs.60 Lakhs of plant & machinery cost of which is borne by
Ministry of Information Technology.
iii) Includes cost of fixed assets worth Rs.5000 Lakhs procured out of
Grant received from Government of India during 2004-05
iv) includes Rs.937 Lakhs of plant, machinery and Equipments received
free of cost by Rae Bareli unit.
**** Includes Rs.26.94 Lakhs payment made to J&K Govt for which lease
deed proceedings are in process.
In respect of Interest charged In excess of State Bank Advance Rate
w.e.f. 01.04.2009, aggregate refund received upto 31.03.2012 is Rs.
241.20 Lakhs from State Bank of Hyderabad,State Bank of Patiala,State
Bank of Travancore and Canara Bank. The remaining Banks vIz.StateBanak
Of India,State banak of Bikaner& Jaipur, State Bank of Mysore, Bank of
Baroda.Central Bank of India,Punjab National Bank.Development Credit
Bank Ltd.Jndus Ind Bank Ltd..Axis Bank Ltd.,Vljaya Bank and Indian Bank
are expected to refund excess Interest during 2012-2013.
1 Corporate information:
ITI Limited is a public Company domiciled in India and incorporated
under the provisions of the Companies Act, 1956. The Company is
primarily engaged in the business of Manufacture and sale of
2 Presentation and disclosure of financial statements:
The revised Schedule VI notified under the Companies Act 1956, has
become applicable to the Company, for preparation and presentation of
its financial statements for the year ended 31.03.2012. The adoption of
revised Schedule VI does not impact recognition and measurement
principles followed for preparation of financial statements. However,
it has significant impact on presentation and disclosures made in the
financial statements. The Company has also reclassified the previous
year figures in accordance with the requirements applicable in the
3 Insurance and Customs Duty Claims are accounted as and when the
claims are accepted by respective authorities.
4 Execution and registration of sale deed for assets sold to DRDO forRs.
2600 lacs during 2003-2004 is under process .
5 As per the Presidential directives and Tripartite agreement on wage
settlement with employees, wage revision arrears for the period from
01.01.1997 to 31.03.2000 is to be paid by the Company in a phased
manner on the improvement of profitability position and also generation
and availability of funds. Since the company has already been declared
by BIFR as a sick company and the condition for payment of wage
revision arrears as per directives/agreement aforesaid are not
prevalent, company has not provided any liability for payment of
arrears of wage revision for this period amounting to Rs. 16500 lakhs.
This amount has been included in the Draft Rehabilitation Scheme(DRS)
submitted to BIFR.
6 Balances in the accounts of creditors, debtors, advances from
customers. Claims recoverable, loans and advances, materials with
fabricators , sub-contractors/others,material in transit, deposits.
Loans, Creditors, and other payables are subject to confirmation.
7 The company is engaged in the business of manufacture and sale of
telecommunication equipments and there are no separate reportable
segments as per Accounting Standard 17 issued by the Institute of
Chartered Accountants of India.
8 As per Accounting Standard 18 on Related Party Disclosures the
following transactions are entered into with the Joint Ventures of the
company viz. India Satcom Ltd and ITI Communications Pte. Ltd,
9 Since the company has no virtual certainty of sufficient future
taxable income, no deferred tax asset is being recognised on unabsorbed
depreciation and carried forward losses of the company under Accounting
Standard (AS)-22 Accounting for Taxes on Income
10 Accretion/Decretion to stock-in-trade is arrived after considering
due adjustment to difference in excise duty element in respect of
opening and closing stock-in-trade.
11 Salaries, Wages & Bonus includes Rs. 42.10 Lakhs as Salaries of
Srinagar employees presently posted at different units of ITI due to
disturbed Law & Order situation in Kashmir Vally(P.Y.Rs. 37.51 Lakhs)
12 12.15 acres of land has been agreed to be sold to BMTC not revalued.
Out of which 8.22 acres already in possession of BMTC. Sale deed
registration is pending as Govt, approval is awaited for which an
advance ofRs. 285 lacs has been received.
13 National Highway Authority has acquired 1.375 acres of land for road
widening in Electronics City for a compensation of Rs. 146lacs(yet to be
received) during 2007-08. The land is in possession of NHAI pending
transfer of title. However value of land continues in the books of
Accounts. NHAI has also notified for acquisition of about 0.5495 acres
of land & some building at Palakkad for which compensation is yet to be
14 KPTCL is in possession of 5 acres of land and not revalued.
15 Rent from C-Dot aggregating to Rs. 5847.90 lakhs has not been received
for the last 6 years. The Company has deferred recognition of revenue
aggregating to Rs. 992.70 Lakhs for the current financial year due to
uncertainty in receiving the amount which is in conformity with AS-9.
16 Previous year''s figures have been regrouped and reclassified
wherever necessary to conform to current year''s classification.
17 Figures in brackets indicated in the Accounts reflect negative