1. Share Capital Notes:
as] 26,583,845 [55.59%s] equity shares of Rs 10/- each are held by AREVA
T&D S.A. France, holding company. During the year, 7,933,335 [16.59%s]
equity shares of Rs 10/- each as fully paid up, were issued and
allotted to AREVA T&D Holdings SA, France & its subsidiary, pursuant
to the scheme of amalgamation of AREVA T&D Systems India Limited
[ATDSLs], AREVA T&D Instrument Transformers India Private Limited
[AITPLs] & AREVA T&D Lightning Arresters Private Limited [ALAPLs] with
the Company, without being payment received in cash.
bs] 15,750,000 equity shares of Rs 10/- each were allotted as fully paid
bonus shares by capitalisation of general reserve, share premium and
profit & loss Acc. balance.
cs] 11,937,992 equity shares of Rs 10/- each were issued & allotted as
fully paid up pursuant to the scheme of amalgamation with The General
Electric Comp. of India Limited in 1992-93 [11,520,000 sharess], GEC
Power Engineering Services of India Limited [PESILs] in 1993-94 [330,000
sharess] & ALSTOM T&D Distribution Transformers Limited in 2000-01
[87,992 sharess],without payment being received in cash.
ds] During 1994-95, the Comp. offered 9,950,000 equity shares of Rs
10/- each to the existing shareholders in the ratio of 1 share for
every 3 shares held at a premium of Rs 40/- per share as per letter of
offer dated May 10,1994. The shares, barring 1,034 shares, which were
kept in abeyance for technical reasons, were allotted at the Committee
of Directors meeting held on July 28, 1994. Of the 1,034 shares kept in
abeyance, 514 shares were allotted upto 2001/02.
es] The Comp. had in earlier year filed an appeal against the order of
Honble High Court of Calcutta, levying fees for increase in authorised
share capital pursuant to the scheme of amalgamation sanctioned by the
said court by its order dated July 05,2007. The said appeal has been
allowed vide order dated December 18, 2007, in favour of Company.
Note : 1. AREVA T&D SA, France has provided comfort letter to the
bankers on the above loans. 2. Short term loans from banks includes
overdraft of Rs 12,643 thousands
2. Fixed Assests Notes:
as] Land & buildings were revalued on March 31, 1992, based on the
estimated current replacement cost after considering depreciation upto
that date as per valuers reports, & the resultant surplus of Rs.
343,712 thousand was credited to fixed asset revaluation reserve. Of
this reserve, Rs 327,592 thousand has been so far transferred to profit
and loss Acc. for as an adjustment against depreciation / sale of
bs] Renewal of lease agreement [for which the Comp. has an options] in
respect of 4.84 acres of land at Chennai [which expired on September
13,1989s] is still under process. The Comp. has contested the enormous
hike in rent by State Government & the matter is sub-Judice.
cs] Freehold land includes 0.74 acres costing Rs 3,488 thousand at
Perungudi, Chennai which is pending registration.
3. CURRENT LIABILITIES
Acceptances 205,758 204,521
Micro, Small & Medium
Enterprises [Note [bs]s]
Others 3,335,420 2,602,697
Other liabilities 4,126,629 2,594,289
Payments received in advance from customers 1,886,584 1,700,418
Interest accrued but not due on loans - 5,584
Investor Education & Protection
Fund shall be credited by the
following amount: Unclaimed dividend ** 6,707 2,823
** Represents Dividend warrants issued but not encashed & there is no
amount falling due as at December 31, 2007 for transfer to Investor
Education & Protection Fund.
Note : Sundry creditors include:
4. CHARGE ON ASSETS
Non funded facilities from certain banks are secured by way of first
charge on fixed assets, investments, inventories, book debts & other
movable current assets.
5. MILESTONE BILLING ON LONG TERM CONTRACTS
During the year, the automation business unit of Comp. revised
its accounting estimates on recognising revenue & cost, for projects
that exceed a threshold amount based on certain internal milestones.
This has resulted into increase in revenue by Rs 366,769 thousands and
Profit for year by Rs 81,723 thousands.
1. Provision for Warranties are estimated based on past obligations
and are expected to be settled within next 15 to 18 months.
2. Provision for Contract losses are based on the current ascertained
difference between future revenues & cost.
3. Figures in brackets are for previous year.
6. VALUE ADDED TAX ['VAT's]
Consequent to introduction of Value added tax in certain states,
adjustments of eligible VAT credit pertaining to inventories on hand on
the date of implementation by respective states have been done in
accordance with guidelines prescribed by Institute of Chartered
Accountants of India
7. EXCISE DUTY
Excise Duty on sales for year has been disclosed as a reduction
from the turnover. Excise duty relating to the difference between
Closing stock & opening stock has been included in Schedule 17 'Other
Manufacturing , Administration & selling expenses'.