1. Nature of Operations
SWELECT ENERGY SYSTEMS LIMITED (''the Company'') was incorporated as
a public limited company on September 12, 1994 and was formerly known
as NUMERIC POWER SYSTEMS LIMITED. The Company is engaged in the
manufacture, sale and trading of Uninterrupted Power Supply (''UPS'')
systems and accessories and has its manufacturing facilities in
Pondicherry, Chennai, Salem and Himachal Pradesh. The Company provides
maintenance and other after sale services in respect of UPS systems
through a network of branches situated across the country. The
Company''s operating activities/investments also include Solar and
Wind Power generation, installation and maintenance services, energy
efficient lighting services, and manufacture of iron and aluminium
alloy foundry castings.
Pursuant to the consummation of transfer of the UPS business on May 29,
2012, as more fully discussed in Note 26 of financial statements, the
name of the Company has been changed to SWELECT ENERGY SYSTEMS LIMITED.
a. Terms/rights attached to equity shares
The Company has only one class of equity shares having a par value of
Rs.10 per share. Each holder of equity shares is entitled to one vote
per share. The dividend proposed by the Board of Directors is subject
to the approval of the shareholders in the ensuing Annual General
During the year ended 31 March 2012, the amount of per share dividend
recognized as distributions to equity shareholders was Rs. 3 (31 March
In the event of the liquidation of the Company, the holder of equity
share will be entitled to receive remaining assets of the Company,
after distribution of all preference amounts. The distribution will be
proportionate to the number of equity shares held by the shareholders.
There is no overdue amount payable to Micro, Small and Medium
Enterprises as defined under The Micro Small and Medium enterprises
Development Act, 2006. Further, the Company has not paid any interest
to any Micro, Small and Medium Enterprises during the year.
2. Discontinuing operation
During the year, the Company had entered into a Business Transfer
Agreement dated February 9, 2012 to sell its UPS business undertaking.
The UPS business undertaking comprising of the operations in India,
Singapore and its investment in Srilanka is being transferred as a
going concern on a slump sale basis for an aggregate consideration of
Rs. 837.08 Crores including, an amount of USD 4.5 Million for the
Singapore operations. The shareholders of the Company approved the
transaction by way of postal ballot on March 16, 2012 and the Company
has, upon fulfillment of the various conditions precedent, transferred
the UPS business undertaking subsequent to the year end, on May 29,
As this transaction would qualify as an initial disclosure event,
within the meaning of Accounting Standard 24 Discontinuing operations,
the profit attributable to the discontinuing operation net of related
income tax expense has been disclosed seperately in the statement of
profit and loss. The following table summarizes the revenues, profits,
assets, liabilities and cash flows attributable to the discontinuing
3. Employee benefit plans
The Company has a defined benefit gratuity plan. Every employee who has
completed five years or more of service gets a gratuity on departure at
15 days salary (last drawn salary) for each completed year of service.
The scheme is funded with an insurance company in the form of a
qualifying insurance policy.
Long term compensated absences are provided for based on actuarial
valuation as per projected unit credit method made at the end of each
The following tables summarise the components of net benefit expense
recognised in the profit and loss account and the funded status and
amounts recognised in the balance sheet for the gratuity plan.
4. Segment information
A. Primary segment information (By Business segments)
The Company''s operations predominantly relates to the manufacture and
trading in UPS systems and accordingly this is the only primary
5. Contingent Liabilities not provided for _
31 March 2012 31 March 2011
Claims against the Company not
acknowledged as debts
a) Excise / CENVAT related matters 26,30,000 26,30,000
b) Sales tax related matters 1,19,36,446 10,00,000
6. Derivative instruments and Foreign currency exposures
The Company uses foreign currency forward contracts to hedge its risks
associated with foreign currency fluctuations on payable balance.
7. Capital and other commitments
a) At 31st March, 2012, the estimated amount of contracts remaining to
be executed on capital account and not provided for is Rs. 1,94,53,447
(31st March 2011: Rs 47,44,827)
b) Commitments relating to lease arrangements, please refer to note 28
8. During the year ended 31 March 2012, the revised Schedule VI
notified under the Companies Act 1956, became applicable to the
Company, for preparation and presentation of its financial statements.
The Company has presented its financial statements in accordance with
the requirements of revised Schedule VI and has hence reclassified and
regrouped the previous year figures to conform to current year''s