Mirc Electronics

1.  Scheme of amalgamation of Guviso Holdings Pvt. Ltd with the Company
 
 a.  The Scheme of Amalgamation of the erstwhile Guviso Holdings Pvt.
 Ltd., (GHPL) being the Holding Company, with the Company was approved
 by the shareholders of the Company at the Court Convened Meeting held
 on 5th January, 2009 and subsequently approved by the Honourable High
 Court of judicature at Mumbai on 2nd May, 2009. The said order has been
 filed by the Company with the Registrar of Companies on 21st May, 2009
 and the Scheme has been effective from that date.
 
 The scheme as sanctioned by the Court has accordingly been given effect
 to in the accounts from the appointed date of 15th July, 2008. The
 scheme provides adoption of Pooling of Interest method of accounting
 for the amalgamation as per accounting standard (AS) - 14 “Accounting
 for Amalgamation” issued by the Institute of Chartered Accountants of
 India. Accordingly all the assets, liabilities and reserves of GHPL
 have been recorded in the books of the Company at its carrying value
 under the respective heads. Further expenses of Rs. 111.74 related to
 the amalgamation has been debited to General Reserve of the Company as
 per the provision of the scheme. Shortfall in respect of the difference
 between the book value of the net assets of GHPL and the face value of
 shares to be alloted to the shareholders of GHPL has been debited to
 General Reserve of the company as per the scheme of amalgamation.
 Subsequent to the Balance Sheet date the shares of the Company held by
 GHPL have been cancelled and the shareholders of GHPL have been alloted
 equity and preference shares as per the scheme.
 
 b.  The summary of Assets and Liabilities acquired and discharge of
 consideration are as given below:
 
 c. In terms of the scheme, the Equity shares to be issued on
 amalgamation by the Company shall rank for the dividend, voting rights
 and in all other respects pari - passu with the existing Equity shares
 of the Company.  The Preference shares will be entitled to dividend
 from the appointed date i.e.15th July, 2008. The face value of Equity
 and Preference shares to be issued has been shown as Capital Suspense.
 
 2. The company enters into forward contract for hedgeing of foreign
 currency transaction. The premium / discount for such transactions are
 pro-rated over the period of the contract. Such premium / discount is
 accounted under material consumption. The exchange gain or loss on
 account of foreign exchange transactions settlement or on reinstatement
 at the year end is credited / debited to the Profit and Loss account.
 
 During the year net debit in respect of foreign exchange loss is
 Rs.6053.51 (previous year credit of Rs.312.32).  Out of this debit of
 Rs.5286.83 is in respect of raw material purchases, credit of Rs.44.20
 is in respect of export of goods, debit of Rs.13.89 is in respect of
 secured loans (included in financial expenses) and debit of Rs.796.99
 is in respect of derivative contract (included in miscellaneous
 expenditure).
 
 3.  Contingent Liabilities
 
 Particulars                           31st March 2009  31st March 2008
 
 a) Guarantees given to Bank against 
 which Rs.Nil                                   340.34         123.49 
 (Rs.Nil) has been deposited as margin money
 b) Guarantees given to bank on behalf 
 of subsidiary companies Akasaka Electronics 
 Limited                                       1870.00        1870.00
 c) Income tax demands in respect of           1142.73        2064.80 
 which appeals have been filed
 d) Excise and Custom Duty in respect of        771.65         339.39 
 which appeals have been filed
 e) Claims made against the Company not        2910.84        4960.02 
 acknowledged as debts
 
 4.  Research and development expenses consist of personnel expenses,
 depreciation and other expenses of Rs.724.12 (previous year Rs.535.14),
 Rs.47.20 (previous year Rs.44.54) and Rs.331.92 (previous year
 Rs.284.14) respectively.
 
 5.  a) Balances of Sundry Debtors, Creditors, Loans and Advances and
 Deposits are subject to confirmation and reconciliation.
 
 b) The Company is in process of identifying parties covered under MSMED
 Act, 2006 as a result of this information required under the said Act
 could not be provided. The management is of the view that there were no
 delay in payment of dues to any parties likely to get covered under the
 act, as the Company is generally making payment within 45 days from the
 date of supply.
 
 c) There is no amount due and outstanding, as at 31st March, 2009 to be
 credited to Investor Education and Protection Fund.
 
 6.  The company is mainly engaged in Consumer Durables business, which
 as per Accounting Standard (AS) - 17 “Segment Reporting” is considered
 the only reportable segment. There is no seperately identifiable
 geographical segment.
 
 7.  Previous year’s figures have been rearranged and regrouped
 wherever necessary.