(a) Terms/rights attached to equity shares
The company has only one class of equity shares having a face value of
Rs.10 per share. Each holder of equity shares is entitled to one vote per
share. The company declares and pays dividends in Indian rupees.
(b) During the year, Rs. 92 lacs was taken as loans against refinance of
existing motor vehicles owned by the company from Kotak Mahindra Prime
Ltd. This loan carries an interest of 19.467% p.a., and is payable in
36 installments, alongwith interest from the date of the loan. The
period of maturity w.r.t. balance sheet date is 2 years and 4 months
with EMI of Rs.4.49 lacs for 4 months, Rs. 3.31 lacs for 12 months and Rs.
1.82 lacs for 12 months respectively.
(c) Fixed deposits from related parties carry interest @11% to 11.75%
p.a.(previous year 10.50% to 11.25% p.a.) and are repayble after 3
years from the respective dates of deposit.
(d) Fixed deposits from shareholders and others carry interest ranging
from 11% to 11.75% p.a.(previous year 10.50% to 11.25% p.a.) and are
repayble after 2 years and 3 years from the respective dates of
(e) During the year, unsecured loan of Rs.60 lacs was taken from Kotak
Mahindra Bank, which carries interest @ 9.50% p.a. and is repayable in
24 installments. The period of maturity w.r.t. balance sheet date is 1
year and 5 months with EMI of Rs.4.35 lacs for 1 month, Rs. 2.94 lacs for 8
months and Rs.1.50 lacs for 8 months.
(a) Working capital loan from banks is secured by hypothecation of
current assets and all movables, both present and future and with a
collateral charge on immovable and movable properties. The working
capital from banks carries interest of @15.75% and 16.15% p.a.
(b) Inter-corporate deposits are having a tenure of 90 days to 120 days
and carry interest @13.50% to 17.75% p.a.
(c) Fixed deposits from others and shareholders carry interest ranging
from 10% to 10.75% p.a.(previous year 10% to 10.25% p.a.).
(a) Margin money deposits with maturity of less than I upto three
months is against letter of credit and bank guarantees.
(b) Margin money deposits with maturity more than three months and upto
12 months is against bank guarantees.
(c) Deposits with maturity of more than three months and upto 12 months
of Rs. 54 lacs (Previous Year Rs. 54 lacs) is kept as collateral against
cash credit limits with banks.
Disclosure as required by Accounting Standard 19, Leases, issued by
the Institute of Chartered Accountants of India, are given below:
a Where the company is a lessee:
The company has taken various office and godown premises under leave
and licence agreements. These are not non cancellable and range between
11 months and 5 years under leave and licence and are renewable by
mutual concent on mutually agreeable terms. The company has given
refundable interest free security deposits under certain agreements.
Amounts paid during the year under such agreements are Rs. 111.19 lacs
(previous year Rs. 88.87 lacs) and are recognized in the statement of
profit and loss under Rent Note no.28.
b Where company is a lessor:
The company has given its own office and residential premises under
leave and licence agreements. These are not non cancellable and range
between 11 months and 5 years under leave and licence and are renewable
by mutual concent on mutually agreeable terms. The company has taken
refundable interest free security deposits under certain agreements.
Amounts received during the year under such agreements are Rs. 47.08
lacs(previous year Rs. 45.29 lacs) and are recognized in the statement of
profit and loss under ''Rent Income'' in Note no. 22.
2 Contingent liabilities
a Disputed sales tax demand of Rs. 58.18 lacs (previous year Rs. 34.15
lacs). The management has been adviced that there will be no liability
arising on this account.
b Estimated tax liability Nil (previous year Nil).
c Counter indemnities given by the company in respect of guarantees
issued by the bank Rs.91.96 lacs (previous year Rs.157.29lacs).
d The company has given a corporate guarantee to a bank of Rs.350 lacs
and Rs.100 lacs for sercured loan availed by its subsidiary, Shurjo
Energy Private Limited and PAE Renewables Private Limited respectively
(previous year Rs. 350 lacs for secured loan availed by its subsidiary
Shurjo Energy Private Limited).
3 Investment in subsidiaries
a During the year, the company subscribed to 2,27,85,178 equity shares
(previous year 29,71,474) for a total consideration of Rs. 227.85 lacs
(previous year Rs. 51.00 lacs) in Shurjo Energy Private Limited thereby
increasing its stake to 85% in the company w.e.f. October 1, 2011. The
company is engaged in manufacturing of solar photovoltaic panels using
b During the year, the company subscribed to 23,00,000 equity shares of
Rs.10/- each at par on June 6, 2011 and 23,75,000 equity shares of Rs.10/-
each at premium of Rs.10/- each on September 13,2011 (previous year
1,00,000) ofRs. 10/- each for a total consideration of Rs.467.75 lacs
(previous yearRs. 10 lacs) in PAE Renewables Private Limited, PAE
Renewables Private Limited is a 100% subsidiary of PAE Limited and is
engaged in the business to design, install, sell and service renewable
energy solutions of small and medium sizes in India.
c During the year, the company subscribed to 3,52,000 equity shares
(previous year nil) of Rs.10/- each for a total consideration of Rs.35.20
lacs (previous year nil) in PAE Infrastructure Pvt. Ltd. PAE
Infrastructure Pvt. Ltd. is a 100% subsidiary of PAE Limited.
d The company has reviewed the value of long term investment made in
its subsidiary, Shurjo Energy Pvt. Ltd. Inspite of the accumulated
losses in the said subsidiary, the management is of the opinion that
there is no permanent diminution in the value of investment, after
taking into consideration the change in the business policy to be
pursued in the ensuing years.
4 Dues to micro and small enterprises
There are no amounts overdue and remaining unpaid for 30 days on
account of principal and/or over due interest at the close of the year
to micro, small and medium enterprises, as defined under''Micro Small
and Medium Enterprises Development Act, 2006. This information regarding
Micro, Small and Medium Enterprises has been determined to the extent
such parties have been identified on the basis of information available
with the company. This has been relied upon by the auditors.
5 Derivative instruments and unhedged foreign currency exposure
a In accordance with Accounting Standard 11, the exchange loss debited
to statement of profit and loss is Rs.19.92(previous year Rs.15.60 lacs).
Premium in respect of forward contracts to be debited to subsequent
years''s statement of profit and loss is Nil (previous year Rs. 18.49
b Disclosure in relation to derivative instruments for hedging foreign
currency risk for secured loans:
a In the year 2008-09 the company had filed a petition in the High
Court of Mumbai for interest charged under section 234B of the Income
Tax Act, 1961 against order passed by the settlement commission for A.Y.
1993-94, 1994-95 and 1996-97. Pending High Court order, no adjustments
have been made in respect of tax provision against these years.
b Till the year ended March 31, 2011, the company was using pre-revised
Schedule VI to the Companies Act 1956, for the preparation and
presentation of its financial statements. During the year ended March
31, 2012, the revised Schedule VI notified under the Companies Act, 1956
has become applicable to the company. The company has reclassified
previous year figures to conform to this year''s classification. The
adoption of revised Schedule VI does not impact recognition and
measurement principles followed for preparation of financial
statements, particularly presentation of balance sheet.