Note 1. Retain earning
Pursuant to the enactment of Companies Act 2013, the company has
applied the estimated useful lives as specified in schedule - II.
Accordingly the unamortised carrying value is being depreciated /
amortised over the revised/ remaining useful lives. The written down
value of Fixed assets whose lives have expired as at 1st April, 2014
have been adjusted in the opening balance of Profit & Loss account
amounting to Rs. 21.14 lakhs.
Note 2. Related party disclosures:
As per Accounting Standard 18, the disclosures of transactions with the
related parties are given below:
Transactions during the Year with Related Parties:
Note 3. Service tax payable
Liability for Service Tax Payable of Rs. 8,85,217/- is pending and till
now the company has not recived the outstanding amount from debtors.
Note 4. Terms and Conditions of Short Term Borrowings
Cash Credit facility is secured by hypothecation of book debts,
outstanding monies, receivables, claims, bills etc.
Note 5. Dues to Micro, Small and medium enterprises
Dues to Micro, Small and medium enterprises is Nil as per the records
of the Company
Note 6. TDS Adjustment Account
Since, the Appeal is pending before the Honourable High Court of A.P.,
in respect of Income Tax for the Assessment years 1996-97 and 1997-98
of Northeast Spinners Limited, a company in existence prior to
amalgamation with Nettlinx Limited, the balance lying in TDS Adjustment
account Rs. 28,62,989/- is shown in Advance Taxes.
Note 7. Long Term Receivables
Long term trade receivables includes the balance debt of Rs.
32,62,114/-receivable from M/s.Integrated Broadcasting Private Limited
which was in arbitration proceedings.The Company has recovered an
amount of Rs. 33,35,914/- out of outstanding debt of Rs. 65,98,028/-(as at
31st March,2012) by withdrawing the winding up petition and entering
into arbitration proceedings. As on 24th January 2015, The arbitral
tribunal of sole arbitrator, Hyderabad has passed the decision in
favour of the company and arbitral has ordered the respondent party i.e
M/s Integrated broadcasting company private limited to pay an amount of
Rs. 29,08,037 with interest at 10% p.a from the date of 05th April 2014
till the date of payment. The respondent party i.e M/s Integrated
broadcasting company private limited has filled the petition in the
city civil court against above order.
Company has received Revised provisional license fee assessment notice
from Department of Telecommunications-AP circle for the years 2005-06,
2006-07,2007-08and 2008-09 w.r.t ISP(IT) License for Rs. 43,30,195/-
which is disclosed as contingent liability for the year ended 31st
March 2012.However the management feels that even this demand is not
tenable and hence liability is not provided in the books of accounts.
Note 9.: Employee benefits
The Company has a defined gratuity plan. Every employee who has
completed five years or more of service gets a gratuity on departure at
15 days last drawn salary for each completed years of services.
B) Leave Encashment:
The Company has a defined policy for Leave Encashment.
The following tables summarize the components of net benefit expense
recognized in the statement of profit and loss and balance sheet
Note 10 Figures for the previous year have been regrouped, recast and