1. Deferred Tax:
During the year, the Company has accounted for Rs.5,56,029
(Rs.45,87,803 Deferred Asset) towards Deferred Tax liability and has
considered the same as charge to the Profit & Loss account as
stipulated under Accounting Standard- 22, on Accounting for Taxes on
Income, issued by the Institute of Chartered Accountants of India.
However, on conservative basis, deferred tax asset on carry forward
business losses, has not been considered.
Finished Goods includes Rs.35,81,373 (Rs.38,25,203), being value of
material at prospective customers'' premises for demonstration purposes.
3. Disclosure under Micro, Small and Medium Enterprises Development
(MSMED) Act, 2006 :
Dues in respect, Micro and Small enterprises who have duly registered
themselves under the relevant Act, and furnished the statutorily
required proof thereof, are being regularly met as per agreed terms
and, as such, there remains no liability towards interest. Principal
amount/s remaining payable in respect of such parties, as at 31 March
2012, amount to Rs.24,16,911 (Rs.47,42,858)
4. Certain balances representing debtors and creditors, are subject to
reconciliation & receipt of confirmations from parties, pursuant to
confirmation requests sent by the company.
5. ''Upkeep & Maintenance expenses'' reflected in Note - 24 includes
Repairs to Building - Rs.29,14,685 (Rs.48,56,471) and Repairs to
Machinery - Rs.15,06,992 (Rs.12,54,169).
6. No provision has been made for post-sales support expenses, as the
company is of the opinion that such expenses are not material, based on
7. Provision has been made for an estimated amount of Rs 400 lakhs in
respect of certain items of slow- moving inventory, based on Generally
Accepted Accounting Practices, even though these items continue to be
usable in the activities of the company.
8. Contingent liabilities on account of
Amount in Rs.
Counter Guarantees to
Bank (to the extent of live
guarantees issued by bank) 28,15,488 1,26,68,398
Letters of Credit 2,63,90,468 1,17,09,765
Capital Commitments 60,00,000 NIL
Sales tax liability in lieu of
Form ''C'' yet to be received 65,42,302 68,71,117
Disputed Central Excise Duty
9. Segment Reporting
Based on the guiding principles given in Accounting Standard on
''Segment Reporting'' (AS 17) prescribed by the Companies (Accounting
Standards) Rules 2006, the Company''s primary business segment is
related to ''Access & Networking Solutions''. This business segment of
the Company incorporates product groups viz., Last Mile Access, ISDN
based products, Layer 3 Switches and others which mainly have similar
risks and returns. Since all the products
stated above fall in the same segment of Access & Networking Solutions,
there remains a single segment to which the whole activity pertains to.
The secondary segment for the Company is based on location of
The segment revenue in the geographical segments for
disclosure are as follows:
a) Revenue within India includes sales to customers located within
India and earnings in India.
b) Revenue outside India includes sales to customers located outside
India and earnings outside India.
10. Related Party Disclosure
Related party disclosures, as required by AS-18:
(i) RAD-MRO Manufacturing Pvt Ltd.,
(ii) S Narayanan
(iii) H Nandi
(i) RAD-MRO Manufacturing Pvt Ltd., - Joint Venture Company
(ii) Whole time Directors -
S. Narayanan H. Nandi
Chairman & Managing Director
Managing Director B i). The following transactions were carried out
with RAD- MRO Manufacturing Private Limited, the Joint Venture Company
in the ordinary course of business.
12. Figures for the year have been rounded-off to the nearest rupee
and, those in the brackets, wherever given, correspond to respective
figures for the previous year. Figures of previous year have been
regrouped & reclassified, wherever necessary.