a.Terms and rights attached to the Equity shares
The Company has only one class of Equity Shares having a par value of
10/- per Share. Each holder of equity shares is entitled to one vote
per share held. All shares ranks pari passu with respect to the
dividend, voting rights and other terms.The Dividend Proposed, if any,
by the Board of Directors is subject to the approval of the
Shareholders in the ensuing Annual General Meeting. In the event of
liquidation of the company, normally the equity shareholders are
eligible to receive remaining assets of the Company after distribution
of all preferential amounts, in proportion to their shareholding .
b. 80,69,422 (36.72%) No. of Equity Shares of the company are held by
promoter and the promoter group as on 30th June 2012
1: Leasehold Land of Salt Lake unit has been acquired under a lease of
90 years with a renewal option. 2: Leasehold Land of Falta SEZ unit
has been acquired under a lease of 15 years with a renewal option.
2. The Company has incurred substantial losses during the period
under report due to significant downturn in the global solar market,
abrupt and unprecedented decline in the inventory prices and the high
volatility in the foreign exchange rates. This severely impacted the
cash flow position of the company and prompted the company to approach
the lenders for restructuring of its debts. At the request of the
Company the lead Bank of the Company i.e., Allahabad Bank, approved and
sanctioned the restructuring scheme, under bilateral restructuring, on
27th March, 2012. Under the debt restructuring scheme, the existing
Term Loans have been restructured whereby the term of repayment has
been extended till 31st December, 2020 and rates of interest have been
linked to the Base Rates of the Banks. The existing irregularity in the
working capital facilities have been carved out and converted into
working capital term loans with the repayment commencing from 31st
October, 2013. In addition, the interest on such facilities w.e.f. 01st
October 2011 till 30th September 2013 shall be funded by way of Funded
Interest Term Loan which is repayable from 31st October 2013. As on
the Balance Sheet date three working capital provider Banks viz.,
Standard Chartered Bank, Dena Bank and HDFC Bank and one term lender
viz., EXIM Bank have not restructured the credit facilities.
3. Estimated amounts of Capital Contracts as at 30th June, 2012 and
not provided for Rs. 2013.93 Lacs (Previous period Rs. 5508.73 Lacs). Total
Advances paid there against Rs.639.93 Lacs including Rs.345.20 Lacs in
foreign currency (Previous period Rs.952.73 Lacs including Rs.313.63 Lacs
in Foreign Currency)
4. Contingent Liabilities -
(a) Outstanding Bank Guarantees 184.32 Lacs (Previous period Rs. 97.55
(b) Outstanding Letter of Credit Rs.70.00 Lacs (Previous period Rs.271.02
(c) Outstanding Bills Discounted with Banks Rs. Nil Lacs (Previous period
Rs. 2,343.91 Lacs)
(d) The Company''s product, namely, Solar Photovoltaic Modules carry a
warranty of 25 years as per International Standards. A fair estimate of
future liability that may arise on this account is not ascertainable.
The same shall be accounted for as and when any claim occurs.
(e) Demands against the company not acknowledged as debts 1029.95 Lacs
(Previous period Rs. 763.60 Lacs)
(f) Outstanding Capex Letter of Credits Rs.4667.08 Lacs (Previous period
Rs. 4,327.50 Lacs) for import of Capital Goods
5. Based on and to the extent of information obtained from the
suppliers regarding their status as Micro, Small or Medium Enterprises
under the Micro, Small and Medium Enterprises Development Act, 2006
there are no amounts due to them as at the end of the period under
6. Since there is no reasonable certainty that sufficient future
taxable income will be available, the measurement of deferred tax
asset, which may be realised, has not been considered in these
7. The cash flows prepared by the management and approved by the
Banks as per the restructuring scheme were based on the current prices
and have been considered for impairment assessment. Based on such
analysis, the cash flow projections do not indicate impairment as at
the Balance Sheet date.
8. Amounts paid / payable to Auditors -
(a) Audit fees Rs.3,12,500/- (Previous period Rs. 1,50,000/-), plus the
applicable service tax.
(b) In other capacity in respect of certification work Rs.62,500/-
(Previous period Rs.37,500/) plus the applicable service tax.
(c) For Audit under section 44AB of the Income Tax Act, 1961 Rs.93,750/-
(Previous period Rs.50,000/-), plus the applicable service tax.
9. Balances of Debtors, Creditors and Loans and Advances are subject
to confirmation and reconciliation with respective parties
10. Since the Company is dealing in only one product i.e., Solar
Photo-Voltaic Cells and Modules, segmental reporting as prescribed
under Accounting Standard 17 is not applicable.
11. Since the accounting year of the Company is from 01st April 2011
to 30th June 2012, these accounts are for a period of fifteen months
and the figures thereof are not comparable with those of previous
period to that extent which was for nine months (i.e., 01st July 2010
to 31st March 2011)
12. The financial statements for the nine months ended 31st March 2011
had been prepared as per the then applicable, pre-revised Schedule VI
to the Companies Act, 1956. Consequent to the notification of Revised
Schedule VI under the Companies Act, 1956, the financial statement for
fifteen months period ended 30th June 2012 are prepared as per Revised
Schedule VI. Accordingly, the previous period figures have also been
reclassified to conform to this period''s classification. The adoption
of Revised Schedule VI for previous period figures does not impact
recognition and measurement.