1 Corporate information:
S Kumars Online Ltd. is a public company domiciled in India and
incorporated under the provisions of the Companies Act, 1956. Its
shares are listed on Bombay Stock Exchange in India. The company is
mainly engaged in E-Commerce business. The company also provides IT
Management Consultancy and Equipment Rental Services.
(fig. in lacs)
Mar. 31,2012 Mar. 31,2011
Rs. Amount in
2.1 Contingent liabilities and commitments
(to the extent not provided for)
(a) Income Tax Matters
(Details given in table below) 1,360.78 1,360.78
(b) Legal cases with Franchisees and
Strategic Business Associates 34.63 40.78
2.2 The Company has during the year, continued to incur pre-operative
expenses in one of its new lines of business viz., Bollywood portal
(BCOL) amounting to Amount in Rs. 21.87 Lacs which has been grouped under
Fixed Assets in Balance Sheet. The management is of the opinion that
the business is of enduring nature and the benefits will flow to the
Company in the subsequent years. However during the year Company has
written off pre-operative expenses amounting to Amount in 7 9.45 Lacs
pertaining Media Centre (BTA), a new business which has been
discontinued during the year.
2.3 The Company is in regular communication, asking for account
confirmations from all the Franchisees and Strategic Business
Associates (SBAs) of which a substantial j part have been received and
duly settled by the Company from time to time. The balances of
remaining Franchisees and SBAs as represented by the books of account
of the Company are subject to regular confirmation/reconciliation, if
any, and the consequential effect on the loss for the year and on the
respective assets and liabilities are presently unascertainable.
However, the Company is of the opinion that no significant liability
would arise on account of the said confirmation/reconciliation.
2.4 During the year, the Company has settled certain pending legal
cases with the Franchisees and SBAs by opting for Out of Court
Settlements with the said parties. This has resulted in a charge to
the Profit and Loss Account by Rs. 2.79 Lacs under the head Loss on
Settlement (Net) (Previous Year-Rs. 4.07 Lacs).
2.5 In the opinion of the management, the Current Assets, Loans and
Advances are realizable at the values represented in the accounts and
adequate provision has been made in the accounts for all known
liabilities, except to the extent wherever stated otherwise.
2.6 The following table summarizes the components of the net employee
benefit expenses recognized in the Profit and Loss Account and in the
Balance Sheet for the gratuity as per the recommendations of the
Accounting Standard -15 Employee Benefits. No provision towards leave
encashment is considered in the Company''s accounts.
The defined Gratuity benefit obligation of the Company is unfunded and
hence there are no planned assets which are maintained exclusively
therefore. Accordingly, the said disclosure is not given. Also, no
gratuity payments were made during the year ended 31st March 2012.
2.7 Outstanding amounts payable to Micro, Small and Medium Enterprises
included under Current Liabilities, as per the information available
with the Company and relied upon by the auditors-Nil (Previous
a) Current Taxation
No provision has been made towards Current taxation keeping in view the
carried forward losses under the Income Tax Act, 1961.
b) Deferred Taxation
(i) Breakup of Net Deferred Tax asset for the year
(ii) Deferred Tax Asset on carried forward losses as per the Income-tax
Act, 1961 has not been recognised in the accounts upon consideration of
prudence aspect. ''
2.9 The Company has two reportable segments i.e. E-Commerce and IT
Management Consultancy. The disclosure requirements as per the
recommendations of Accounting Standard -17 Segment Reporting, during
the year under review, are given as under: ''
2.10 The Company is of the view that there are no indications of
material impairment and the carrying amount of its fixed assets or
where applicable, the cash generating unit to which these assets
belong, do not exceed their recoverable amounts (i.e., the higher of
the assets'' net selling price and value in use). Hence, no impairment
had arisen during the year as per the recommendations of AS 28 -
Impairment of Assets.
2.11 Expenditure in Foreign Currency- 7 3.16 Lacs (Previous Year - Rs.
78.79 Lacs) Earnings in Foreign Currency- Rs. 5.32 Lacs (Previous
2.12 Till the year ended 31 st March, 2011 the company was using
pre-revised Schedule VI To the Companies Act, 1956, for preparation and
presentation of its Financials Statement. During the year ended 31st
March, 2012, the revised Schedule VI notified under the Companies Act,
1956, has become applicable to the company. The adoption of revised
schedule VI does not impact recognition and measurement principles,
however it impacts disclosure and presentation of financials