1. Contingent Liabilities not provided for:
(Amount in Rupees)
Particulars as on as on
a. Claims against the Company
not acknowledged as debts 8,13,03,074 8,13,03,074
b. Excise duty Demand in
dispute 15,16,541 15,16,541
c. Labour Cases in Vapi
Labour Court 1,50,00,000 Nil
d. Sales Tax Assesment
06-07 Demand 3,91,94,483 Nil
e. Rajasthan Sales Tax
Assesment 08-09 10,49,705 Nil
2. Estimated amount of contracts remaining to be executed on capital
account and not provided for (Net of Advances) Rs. 99,71,268/ -
(Previous Year Rs. 53,03,898/-).
3. As per Revised Accounting standard 15 Employee Benefits, the
disclosure of employee benefits as defined in the Accounting Standard
are given below:
a) Defined Contribution Plan:
Employers Contribution to Government managed Provident Fund & Family
Pension Fund - Rs. 37, 29,369/ - (Previous Year Rs. 34, 86,159/- ).
Employers Contribution to ESIC - Rs. 93,916/ - (Previous Year Rs.
4. Leave Encashment:
The actuarial value of leave encashment liability of Rs. 3,691,796/ -
is based on the following assumptions as per the actuarial certificate
under revised AS - 15. The assumptions are 5% as salary escalation,
average of 2% as attrition and discount rate 8.25% as an assumption.
The Company has taken office premises under operating lease or leave
and license agreements. These agreements are for a period of 11 months
to 3 years, cancelable during the life of the contract at the option of
both the parties and contain stipulation for up to 10 % increase in
lease rentals. Minimum lease payments charged during the period to the
profit and loss account aggregated to Rs. 28,83,376/ - (Previous year
Previous year, the Company had entered in to an operating lease of
Equipment for 60 months i.e. 20 quarters of 3 calendar months each,
commencing from 1st day of the month in which the Equipment is
delivered to the Company. Lease Rent charged during the period of
profit & loss account aggregated to Rs. 1, 32, 02,205/ - (Previous Year
The Company has taken lease against Land for total 120 months i.e. 40
quarters of 3 calendar months each, commencing from 01.04.2010. Lease
Rent charged during the period of Profit & Loss account aggregated to
Rs. 4, 16,748/ - (Previous Year Rs. Nil).
6. Related party disclosures as per Accounting Standard-18
LIST OF RELATED PARTIES
(A) *Key Management Personnel (KMP) and their Relatives
Dr. Narendra D. Desai - Chairman
Shri. Kushal N. Desai - Director
Shri. Chaitanya N. Desai - Director
Shri. V. K. Bajaj - Chief Operating Officer
(B) Other Related Parties with whom transactions have taken place.
1. Marine Cables & Wires Pvt Ltd. - Subsidiary Company.
2. Apar Industries Limited - Holding Company.
3. Apar Corporation Pvt. Ltd. - Director/Member
4. Petroleum Specialities Pte ltd. - Subsidiary of the Holding
(C) Other Related Parties where control exists but no transactions have
taken place during the year.
1. Kushal Chaitanya Desai Family Trust.
2. Apar Masat Conductors Ltd.
3. Apar Technologies Private Ltd.
4. Catalis World Private Ltd.
5. Kushal N. Desai Family trust
6. Scope Pvt. Ltd & its Subsidiaries
7. Chaitanya Desai Family Trust
* The Directors are the Key Management Personnel (KMP) who have the
authority and responsibility for planning, directing and controlling
the activities of the Company.
7. Segment Reporting
Due to change in Industrial environment, the assets of Telecom Cables
are being utilized for Power Cables. Due to this, there is only one
segment of operations in Cables and Conductors.
Installed capacity Cables and Conductors 69,480 KM - 2010-2011 (34,720
KM - 2009-2010).
The management is of the view that Accounting Standard (AS) 28, on
Impairment of Assets is not applicable as the carrying amount of the
assets is lower than the present value.
No provision of Tax has been made in view of losses.
10. Deferred Taxation
There is no deferred tax liability in the current year as the Book
depreciation is higher than the Income Tax depreciation. Also due to
concept of prudence, deferred tax assets is not recognized in all cases
of timing difference due to depreciation, unabsorbed losses as per Para
15 & 17 of Accounting Standard 22 Accounting for Taxes on Income
issued by the Institute of Chartered Accountants of India.
11. Depreciation and write off include Rs. 1, 47,474/ - (Previous year
Rs. Nil) on account of proportionate leasehold land value written off.
12. In the opinion of the Board, the current assets, loans and
advances have a value on realisation in the ordinary course of business
at least equal to the amount at which they are stated.
13. Sundry Debtors, Sundry Creditors, Loans and Advances, Loans to
Employees, Advances from Customers, Sundry deposits, Earnest Money
Deposits paid are subject to confirmations and are as per books of
14. There is no amount due and outstanding as at the balance sheet
date to be credited to Investors Education and Protection Fund.
15. The Previous year''s figures have been regrouped/recast wherever
considered necessary to make them comparable with that of current year.
16. Information required in terms of Part IV of Schedule VI of the
Companies Act 1956 attached.
17. Draft Rehabilitation Scheme (DRS) of the Company which Interalia
includes scheme of Amalgamation of Company with Apar Industries Ltd.,
Holding Company (AIL) with effect from 01st April 2010 (Transfer Date)
has been submitted to Board for Industrial and Financial Reconstruction
(BIFR) by Operating Agency (OA) appointed by BIFR, for its final
consideration. Shareholders of the Holding Company (AIL) have approved
the DRS subject to approval of and other regulatory approval.