A Oneindia Venture
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అకౌంట్స్ గమనికలుACCEL Ltd.
Mar 31, 2025
3.21 Provisions and Contingencies
Provision:
A provision is recognised if, as a result of
a past event, the Company has a present
legal or constructive obligation that can be
estimated reliably, and it is probable that an
outflow of economic benefits will be required
to settle the obligation. If the effect of the time
value of money is material, Provisions are
determined by discounting the expected future
cash flows (representing the best estimate of
the expenditure required to settle the present
obligation at the balance sheet date) at a pre-tax
rate that reflects current market assessments
of the time value of money and the risks specific
to the liability. The increase in the provision due
to the passage of time is recognised as interest
expense. The unwinding of the discount is
recognised as finance cost. Expected future
operating losses are not provided for.
Contingent Liability:
A contingent liability is a possible obligation
that arises from past events whose existence
will be confirmed by the occurrence or non¬
occurrence of one or more uncertain future
events not wholly within the control of the
Group or a present obligation that is not
recognised because it is not probable that an
outflow of resources will be required to settle
the obligation or it cannot be measured with
sufficient reliability. Contingent liabilities are
disclosed by way of notes to the financial
statement. Provision is made in the accounts
in respect of those liabilities which are likely to
materialize after the year end, till the finalization
of accounts and have material effect on the
position stated in the Balance sheet.
Contingent Asset:
Contingent assets are neither recognized not
disclosed in the financial statements as a
matter of prudence.
3.22 Securities Premium
Where the Company issues shares at premium,
whether for cash or otherwise, a sum equal to
the aggregate amount of premium received on
those shares shall be transferred to " Securities
Premiumâ. The Company may issue fully paid
up bonus shares to its members out of the
securities premium and the Company can use
this reserve for buy back of shares.
3.23 General Reserve
General reserve is created out of the profits
earned by the Company by way of transfer from
surplus in the Statement of profit and loss. The
Company can use this reserve for payment of
dividend and issue fully paid up and allot paid
up bonus shares.
3.24 Trade Receivable
The Company applies approach permitted by
Ind AS 109 Financial Instruments, which requires
expected lifetime losses to be recognised from
initial recognition of receivables.
Default is considered to exist when the counter
party fails to make the contractual payment
within the Contractual period. A trade receivable
is considered to be credit impaired when the
management considers the amount to be non
recoverable.
Significant increase in credit risk is said to
have occurred when the recoverability has
not occurred post 365 days of becoming due.
Receivables are provided for 50% in the books,
if the dues are unpaid for more than 365 days,
100% of value of receivable if the dues are
unpaid for more than 730 days.
The Company is writing off the provision
permanently as "Bad debtâ periodically
based on the case to case assessment after
testing the recoverability.
3.25 Measurement of fair values
A number of the Company''s accounting policies
and disclosures require the measurement of
fair values, for both financial and non-financial
assets and liabilities.
The Company has an established framework
with respect to the measurement of fair values.
The Company regularly reviews significant
unobservable inputs and valuation adjustments.
If third party information, is used to measure
fair values, then the Company assesses the
evidence obtained from the third parties to
support the conclusion that these valuation
meet the requirements of Ind AS, including
the level in the fair value hierarchy in which the
valuations should be classified.
Fair values are categorised into different levels
in a fair value hierarchy based on the inputs
used in the valuation techniques as follows:
- Level 1: Quoted prices (unadjusted) in active
markets for identical assets or
liabilities.
- Level 2: Inputs other than quoted prices
included in Level 1 that are observable
for the asset or liability, either directly
(i.e., as prices) or indirectly (i.e.,
derived from prices).
- Level 3: Inputs for the asset or liability that are
not based on observable market data
(unobservable inputs).
When measuring the fair values of an asset
or a liability, the Company uses observable
market data as far as possible. If the inputs
used to measure the fair value of an asset or a
liability fall into different levels of the fair value
hierarchy, then the fair value measurement is
categorised in its entirety in the same level of
the fair value hierarchy as the lowest level input
that is significant to the entire measurement.
The Company recognises transfer between
levels of the fair value hierarchy at the end of
the reporting period during which the change
has occurred.
3.26 Recent Accounting pronouncements
Ministry of corporate affairs (''''MCA'''') notifies
new standards or amendments to the existing
standards under the companies (Indian
accounting standards) Rules as issued from
the time to time. For the year ended 31st March
2025, MCA has notified new standards or
amendments to the existing standards which
are not applicable to the company.
(i) Interest amount incurred during the construction period amounting to INR 397.74 Lakh has been
capitalised during the year 2022-23 under Buildings as per provision of Ind AS 23.
(ii) Reclassification of items between Property,plant and Equipment and Investment Property
amounting to Rs.12.77 Lakh applied as per provisions of Ind AS 40 at the beginning of Financial
year 2022-23.
(iii) Building Includes building on lease hold land amounting to INR 3608.23 Lakh.
(iv) Reclassification of items between Property,plant and Equipment and asset held for sale amounting
to Rs.692.15 Lakh applied as per provisions of Ind AS 105 during the Financial year 2024-25.
1. The company investment of 26,09,000nos in the 6% cumulative preference share of AMVL ltd. has been
classified as loan and advances during this financial year consequent to the completion of redemption
period.
2 The company''s unquoted investments are not held for trading but for long term strategic purposes.
The company believes that recognising short term fluctuations in the fair value of these investments
in profit & loss would not be consistent with the company''s strategy of holding these investments for a
long term and realising the potential in the long term.
Rights, preferences and restrictions attached to equity shares
Equity shares
(i) The Company has only one class of equity shares having a par value of Rs.2/- per share. Each holder
of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian
Rupees.
(ii) In the event of the liquidation of the Company, the holder of equity share will be entitled to receive the
remaining assets of the Company, after distribution of all preferential amounts. The distribution will be
proportionate to the number of equity shares held by the shareholders.
Capital management policies and procedures
The Company''s capital management objectives are:
- to safeguard the Company''s ability to continue as a going concern, and continue to provide optimum
returns to the shareholders and all other stakeholders by building a strong capital base.
- to maintain an optimum capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Company may adjust the return capital to shareholders,
issue new shares, or sell investments / other assets to reduce debt.
For the purpose of the Company''s capital management, capital includes issued equity capital and all other
equity reserves attributable to the equity holders plus its borrowings and cash credit facility, if any, less
cash and cash equivalents as presented on the face of the balance sheet. The Company manages the
Capital structure and makes adjustments to it in the light of changes in economic conditions and the risk
characteristics of the underlying assets. The amounts managed as capital by the company for the reporting
years are summarized as follows:
a) Capital Reserve
Capital reserve created for the purpose of meeting company''s unexpected expenses.
b) Capital Redemption Reserve
Capital Redemption Reserve created in order to compensate for the reduction of capital base during the
buy-back of shares.
c) Securities Premium
Securities premium comprises of the amount of share issue price received over and above the face
value of Rs.2/- each.
d) Assets Revaluation reserve
The Company had revalued assets and created the Assets revaluation reserve as per provisions of the
companies Act. The Revaluation reserve were converted into general reserve to the extent of revalued
assets sold during the year.
e) Retained earnings
Retained earnings represents the amounts of accumulated earnings of the Company.
f) Other reserve
Other reserve represents an appropriation of profits by the Company.
g) Accumulated other comprehensive income
Represents remeasurement of defined benefit liability which comprises of actuarial gains and losses, the
effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability.
Fair value hierarchy
This section explains the judgements and estimates made in determining the fair values of the financial
instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and
for which fair values are disclosed in the financial statements. To provide an indication about the reliability
of the inputs used in determining fair value, the Company has classified its financial instruments into three
levels as follows:
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3 - I nputs for the assets or liabilities that are not based on observable market data (unobservable
inputs).
B. Measurement of fair values
There were no level 3 or unobservable inputs that were used in the valuation of financial assets or
liabilities noted above.
C. Financial risk management
The Company has exposure to the following risks arising from financial instruments:
- credit risk;
- liquidity risk; and
- market risk
i. Risk management framework
The Company''s Board of Directors has the overall responsibility for the establishment and
oversight of the Company''s risk management framework. The Board of Directors along with the
top management are responsible for developing and monitoring the Company''s risk management
policies.
The Company''s risk management policies are established to identify and analyse the risks faced
by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to
limits. Risk management policies and systems are reviewed regularly to reflect changes in market
conditions and the Company''s activities. The Company, through its training and management
standards and procedures, aims to maintain a disciplined and constructive control environment in
which all employees understand their roles and obligations.
ii. Credit risk
Credit risk is the risk of financial loss to the Company, if a customer or counterparty to a financial
instrument fails to meet its contractual obligations and arises principally from the Company''s
receivables from customers; loans and investments in debt securities.
The carrying amounts of financial assets represent the maximum credit risk exposure.
Credit risk is managed through credit approvals, establishing credit limits and continuously
monitoring the creditworthiness of customers to which the Company grants credit terms in
the normal course of business. The Company establishes an allowance for doubtful debts and
impairment that represents its estimate of incurred losses in respect of the Company''s trade
receivables, certain loans and advances and other financial assets.
The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each
customer. The demographics of the customer, including the default risk of the industry and country
in which the customer operates, also has an influence on credit risk assessment.
Exposures to customers outstanding at the end of each reporting period are reviewed by the
Company to determine incurred and expected credit losses. Given that the macro economic
indicators affecting customers of the Company have not undergone any substantial change, the
Company expects the historical trend of minimal credit losses to continue. Further, management
believes that the unimpaired amounts that are past due by more than 30 days are still collectible
in full , except to the extent already provided, based on historical payment behaviour and extensive
analysis of customer credit risk. The impairment loss at the reporting dates relates to several
customers who have defaulted on their payments to the Company and are not expected to be able
to pay their outstanding balances, mainly due to economic circumstances.
The Company determines credit risk based on a variety of factors including but not limited to the
age of the receivables, cash flow projections and available press information about customers. In
order to calculate the loss allowance, loss rates are calculated using a ''Roll rates'' method based on
the probability of a receivable progressing through successive stages of delinquency through write¬
off. Roll rates are calculated separately for exposures in different stages of delinquency primarily
determined based on the time period for which they are past due. The Company assumes a 100%
loss rate in case of trade receivables that are more than 730 days past due as it believes that the
probability of collection in such cases are remote.
The Company holds Cash and Bank balances of Rs.145.78 Lakhs at 31 March 2025 (31 March 2024:
Rs.914.31 Lakhs). The credit worthiness of such Banks and financial institutions are evaluated by
the management on an ongoing basis and is considered to be good.
Security deposits
This balance is primarily constituted by deposit given in relation to leasehold premises
occupied by the Company for carrying out its operations. The Company does not expect any
losses from non-performance by these counter-parties.
iii. Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations
associated with its financial liabilities that are settled by delivering cash or another financial
asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that
it will have sufficient liquidity to meet its liabilities when they are due, under both normal
and stressed conditions, without incurring unacceptable losses or risking damage to the
Company''s reputation.
Exposure to liquidity risk
The following are the remaining contractual maturities of financial liabilities at the reporting
date. The amounts are gross and undiscounted, and include contractual interest payments
and exclude the impact of netting agreements:
iv. Market risk
Market risk is the risk that changes in market prices - such as foreign exchange rates and interest
rates will affect the Company''s income or the value of holdings of financial instruments. The
objective of market risk management is to manage and control market risk exposures within
acceptable parameters and optimise the returns.
Sensitivity analysis
A reasonably possible strengthening (weakening) of the US Dollar against INR at 31 March would
have affected the measurement of financial instruments denominated in a foreign currency and
affected equity and profit or loss by the amounts shown below. This analysis assumes that all other
variables, in particular interest rates, remain constant and ignores any impact of forecast sales and
purchases.
Fair value sensitivity analysis for fixed rate instruments
In respect of the fixed rate borrowings and Bank deposits the Company is not exposed to any fair value
risk and as such any changes in the interest rates does not have any impact on equity or profit and loss.
The following table illustrates the sensitivity of profit to a reasonably possible change in interest rates
of /- 1% for the year ended 31 March 2025 and 31 March 2024. These changes are considered to be
reasonably possible based on observation of current market conditions. The calculations are based on
a change in the average market interest rate for each period, and the financial instruments held at each
reporting date that are sensitive to changes in interest rates. All other variables are held constant.
41 Due to Micro, Small and Medium enterprises
The Ministry of Micro, Small and Medium Enterprises has issued an office memorandum dated 26
August 2008 ,which recommends that the Micro and Small Enterprises should mention in their
correspondence with its customers the Entrepreneurs Memorandum Number as allocated after filing of
the Memorandum in accordance with the Micro, Small and Medium Enterprise Development Act, 2006
(''the Act''). Accordingly, the disclosure in respect of the amounts payable to such enterprises as at 31
March 2025 has been made in the financial statements based on information received and available
with the Company.
44 Property, Plant and Equipment and Investment Property
(a) Lease Hold Land
Leasehold property includes Rs.77.27 lakhs being the value of Land Lease ( for 90 years ) acquired
from KINFRA Film & Video Park (KINFRA), a Government of Kerala Undertaking to the company
for construction of building to carry on Animation related business which was later on changed
to IT and ITES business , for which the registration formalities were to be completed. As per the
original allotment, the said land is on a 90 year lease arrangement and has to be developed within
a period of 3 years from the date of allotment i.e. on or before 05 April 2010. The said Land could
not be developed within the time frame agreed on account of the difficult scenario being faced
by the Animation Industry in general and the Group in particular. KINFRA , in the meantime has
changed the status of the SEZ from Animation to include IT/ITES also. This has been approved by
the Ministry of Industries and Commerce vide its letter dated 7 February 2012. The Company has
completed the construction of a commercial building for IT/ITES under SEZ Status in May''2022.
As per the Lease Agreement dated 28 June 2021, the lease period is mentioned as 77 years and 1
month commencing from 5 March 2021 . Accordingly the Company has decided to amortise the
Land over the balance lease period as mentioned above.
(b) Impairment of Assets
In the opinion of the management there is no impairment as on the date of the balance sheet in the
value of the carrying cost of Intellectual Property Rights (IPR) of the company within the meaning
of Indian Accounting Standard - 36 on Impairment of Assets issued under Companies (Indian
Accounting Standards) Rules 2015, considering the revenue earning potential of the company
and based on the estimated future cash flows upon crystallization of enquiries received by the
company for the intellectual property rights carried in the books as intangible assets.
(c) Land and Building
The Company has created mortgage on the Land and building in favour of Banks for availing Cash
credit , Term loan, Rent securitisation loan for the Company and Cash credit facility and for availing
term loan for one of the subsidiary Company.
45 Investments
I nvestments in subsidiaries and Associate are stated at cost using the exemption provided as per
Ind AS 27 - Separate Financial Statements.
The management believes that the expected benefits from these investments , will take a longer than
earlier estimates due to various changes that have occurred in business conditions The management
believes that the carrying amounts are lower than the recoverable amounts based on discounted value
of the future cash flows to be generated and there won''t be any impairment in the long run.
46 Leases as lessee (Ind AS 116)
The leased assets of the Company include warehouse buildings and plant and machineries which
are taken on lease for providing warehousing, printer managed services to the customers. The leases
typically run for a period of 1 to 5 years, with an option to renew certain leases after that date. Previously,
these leases were classified as operating leases under Ind AS 17. On transition to Ind AS 116, the
Company recognized right to use of assets at its carrying amount as if the standard has been applied
since the commencement of the lease. The summary of the movement of right-of-use assets for the
year is given below:
On transition to Ind AS 116, the Company recognized lease liabilities measured at the present value of
remaining lease payments. The following table sets out a maturity analysis of lease payments, showing
the undiscounted lease payments to be received after the reporting date.
47 Other Financial Assets
A. The Company had Invested in Preference Shares and had given unsecured loan to Accel Media
Ventures Limited, a subsidiary of the Company to meet the working capital requirements. The
investment in preference share has been converted into loans and advances during the year
consequent to the completion of redemption period. As at 31 March 2025 , the loan and advances
amount outstanding including the converted investment net of repayment received was Rs. 663.04
Lakhs ( 31 March 2024 : Rs. 490.89 Lakhs) as disclosed in the financial statements under "Loans
" - Note 11 in the financial statements. The company has tested the impairment of these assets
and is of the view that there is no diminution to the carrying value of these loans taking cognizance
of the proposal to amalgamate the subsidiary Company with Accel Limited.
B. The Company has made an investment of Rs 487.79 lakhs in equity shares of one Associate
company M/s. Secureinteli Technologies Private Limited at cost as on 31.03.2025. The latest fair
valuation report as on 28th February 2025, obtained from an independent valuer, reveals the fair
value of the said investment at Rs.. 172.82 lakhs as on 31.03.2025. The net impact of value excess
stated amounts to Rs. 314.97 Lakhs has not been provided as on 31.03.2025. The Management
is of the view that no impairment of this investment is necessary based on the steep growth of
the business prospects of the Associate Company and its subsidiary as disclosed in the financial
statement under''lnvestment" - note 10(iii).
48 Confirmation of Balances:
Balance at the end of the financial year for Trade receivable, Trade payable, Loans and advances,
advance received from customers are subject to confirmation. The Management is of the view that
there is no permanent change to the carrying value of these loans and advances, trade receivables
and trade payables except for the provision considered in this regard in the accompanying financial
statements.
49 a) Employee Benefits(Defined Benefit Plan)
The Company operates the following post-employment defined benefit plans:
i) Gratuity
In accordance with applicable Indian laws, the Company provides for gratuity, a defined benefit
retirement plan ("the Gratuity Planâ) covering eligible employees. The Gratuity Plan provides
for a lump sum payment to vested employees on retirement (subject to completion of five
years of continuous employment), death, incapacitation or termination of employment that
are based on last drawn salary and tenure of employment. Liabilities with regard to the Gratuity
Plan are determined by actuarial valuation on the reporting date.
The company has established a trust by name , Accel Employees Group Gratuity Trust
w.e.f January 31, 2022 and has made necessary applications to Income Tax department for
approval.
These defined benefit plans expose the Company to actuarial risks, such as longevity risk and
interest rate risk.
A. Funding
The Company has a fund balance of INR 40.76 Lakhs in the gratuity fund ,maintained
with Bajaj Allianz Life Group Employee Care, net of gratuties settled , since inception,
which is approximately 15% of the total liabilily arrived at on actuarial basis as on 31
March 2025.
B. Reconciliation of the net defined benefit (asset)/ liability
The following table shows a reconciliation from the opening balances to the closing
balances for the net defined benefit (asset) liability and its components:
Although the analysis does not take account of the full distribution of cash flows expected under the
plan, it does provide an approximation of the sensitivity of the assumptions shown.
b) Employee Benefits(Defined Contribution Plan)
The Company makes contributions, determined as a specified percentage of employee salaries, in
respect of qualifying employees towards Provident Fund (PF) and employees'' state insurance (ESI)
scheme which are defined contribution plans. The Company has no obligations other than to make
the specified contributions. The contributions are charged to the statement of profit and loss as they
accrue. The amount recognised as an expense towards contribution to Provident Fund and ESI for the
year aggregated to INR 299.14 Lakhs (31 March 2024: INR 359.86 Lakhs)
ii) Compensated Absences
The liability in respect of the company, for outstanding balance of privilege leave at the balance sheet
date is determined and provided on the basis of actuarial valuation performed by an independent
actuary. The Group does not maintain any plan assets to fund its obligation towards compensated
absences.
These defined benefit plans expose the Company to actuarial risks, such as longevity risk and interest
rate risk.
52 A. The Company has obtained in principle NOC (No Objection Certificate) from BSE for merger
application with respect to merger of M/s. Accel Media Ventures Limited [Amalgamating company]
with Accel Limited effective from 1st April 2024. The company has filed a merger application with
Hon''ble NCLT on 24th March 2025 and awaited directions from NCLT.
B. The associate company namely Secureinteli Technologies Private Limited proposed for the buy
back of share dated 7th April ''2025.
54. Previous year''s Figure have been regrouped, recasted and rearranged wherever necessary, to suit the
current period layout.
As per our report of even date attached
For and on behalf of the Board of Directors
For K.S Aiyar & Co
Chartered Accountants Accel Limited
Firm''s Registration No. 100186W
Sd /- Sd /- Sd /-
S.Kalyanaraman K. Nagarajan N R Panicker
Partner Director Managing Director
Membership No. 200565 DIN: 02172617 DIN: 00236198
UDIN: 25200565BMIVSG3738 Sd /- Sd /-
Vishnu S Rajesh Kumar Nandi
Company Secretary Chief Financial Officer
Place: Chennai Place: Chennai Place: Chennai
Date: 29-05-2025 Date: 29-05-2025 Date: 29-05-2025
Mar 31, 2024
(i) interest amount incurred during the construction period amounting to INR 397.74 Lakh has been capitalised during the year 2022-23 under Buildings as per provision of ind AS 23.
(ii) Reclassification of items between Propertyplant and Equipment and Investment Property amounting to Rs.12.77 Lakh applied as per provisions of ind AS 40 at the beginning of Financial year 2022-23.
(iii) Building includes building on lease hold land amounting to INR 3608.23 Lakh.
in the opinion of the management, there is no impairment as on the date of the balance sheet in the value of the carrying cost of intellectual Property Rights (IPR) of the Company within the meaning of ind AS 36 on impairment of Assets issued under Companies (Accounting Standards) Rules 2015, considering the revenue earning potential of the assets.
1. The Company during the financial year 2019-20 made an investment of 26,09,000 6 % cumulative redeemable preference shares ( face value of Rs.10/- per share). The Investment has been fair valued In accordance with the provisions of Ind AS 109 and the equity component of Rs.116.17 Lakhs has been disclosed above and the debt component of Rs.243.91 Lakhs ( 31 March 2023 : Rs. 226.94 Lakhs ) has been disclosed separately under Note 11 (Also refer Note 40B
2. The Company has made investments of 9,00,000nos of equity shares in the year 2019 and 80,070nos of equity shares in the year 2019 which consists 100% Subsidiary Company M/s. Accel OEM Appliances Limited to the extent of Rs.98.01 Lakhs (previous year Rs.98.01 Lakhs) and the loss on account of the residual value of the investment is written off to the extent of Rs.46.01 Lakhs and has been shown in the accompanying Standalone Financial Results as an exceptional item. Though the company had carried these investments at cost and did not envisage dimunition in value till 31 March 2023 ; however decided to strike off the company and has made an application on dated 30.04.2024 to Registrar of Companies for Striking off the name under Fast Track Exit mode as prescribed in the Companies Act, 2013.
3. The company''s unquoted investments are not held for trading but for long term strategic purposes. The company believes that recognising short term fluctuations in the fair value of these investments in profit & loss would not be consistent with the company''s strategy of holding these investments for a long term and realising the potential in the long term.
4 The management believes that the expected benefits from these investments , will take a longer than earlier estimates due to various changes that have occurred in business conditions The management believes that the carrying amounts are lower than the recoverable amounts based on discounted value of the future cash flows to be generated and there won''t be any impairment in the long run.
1 These balances represent interest-bearing margin money deposits given as lien to obtain bank guarantees. They are issued to customers as collateral for the execution of contracts.
These balances are restricted and are therefore not available for general use by the Company.
2 Unpaid Dividend amounting to INR 1.83 lakhs will be transferred to Investor Education and Protection Fund during 2024-25.
Rights, preferences and restrictions attached to equity shares Equity shares
(i) The Company has only one class of equity shares having a par value of Rs.2/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees.
(ii) In the event of the liquidation of the Company, the holder of equity share will be entitled to receive the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be proportionate to the number of equity shares held by the shareholders.
Capital management policies and procedures
The Company''s capital management objectives are:
- to safeguard the Company''s ability to continue as a going concern, and continue to provide optimum returns to the shareholders and all other stakeholders by building a strong capital base.
- to maintain an optimum capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Company may adjust the return capital to shareholders, issue new shares, or sell investments / other assets to reduce debt.
For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders plus its borrowings and cash credit facility, if any, less cash and cash equivalents as presented on the face of the balance sheet. The Company manages the Capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. The amounts managed as capital by the company for the reporting years are summarized as follows:
The company is hopeful of receiving the refund of tax assets with applicable interest and the above calculations have been made without considering this asset.
Capital reserve created for the purpose of meeting company''s unexpected expenses,
b) Capital Redemption Reserve
Capital Redemption Reserve created in order to compensate for the reduction of capital base during the buy-back of shares,
c) Securities Premium
Securities premium comprises of the amount of share issue price received over and above the face value of Rs.2/- each,
d) Assets Revaluation reserve
The Company had revalued assets and created the Assets revaluation reserve as per provisions of the companies Act,
e) Retained earnings
Retained earnings represents the amounts of accumulated earnings of the Company,
f) Other reserve
Other reserve represents an appropriation of profits by the Company.
g) Accumulated other comprehensive income
Represents remeasurement of defined benefit liability which comprises of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability
21 (B) Distribution made and proposed
Cash dividend on equity shares declared and paid:
Dividend for the year ended March 31, 2023 : Rs. 0.30 /- per share (March 31,2022: Rs. 0.30 / -per share)
Proposed dividend on Equity shares:
Proposed dividend for the year ended March 31,2024: Rs.0.30 /- per share subject to the approval at the ensuing Annual General Meeting.
Company owns various immovable properties and all such properties have been mortgagaed against various facilities granted to the company by Banks,
During the financial year the company availed a foreign currency term loan, in lieu of existing term loan. The interest rate is USD SOFR (compounded) plus 150 bps , % p,a, The amount Outstanding as on the date of the Balance sheet is USD 2,444,040,56 (INR - 2038,45 Lakhs) and USD 401,209,38 ( INR - 334,63 Lakhs), The difference in exchange rates on the carrying value of the loan has been charged to the Profit & Loss account,
i) This includes Export of service INR 201.72 Lakhs (31 March 2023 : 168.15 Lakhs)
ii) This includes Export of service INR 84.62 Lakhs (31 March 2023 : 119.02 Lakhs) a) Entity''s remaining performance obligation
The aggregate amount of transaction price that is allocated to the performance obligations that are unsatisfied (or partially unsatisfied) as of the end of the reporting period is Rs. 14.87 Lakhs. The management expects to be recognise the same as revenue in the subseguent years as detailed in the below table:
For the purpose of computing the Earnings per share, the net profit after taxes has been used as the numerator and the weighted average number of shares outstanding has been considered has the denominator,
a. Basic and diluted earnings per share
The calculations of profit attributable to equity shareholders and weighted average number of eguity shares outstanding for purposes of basic and diluted earnings per share calculation are as follows;
The Company has not disclosed the fair values of financial instruments such as Trade receivables, Other Finanancial assets, Trade payables, other financial liabilities, borrowings and lease liabilities, since their carrying amounts are reasonable approximations of their fair values.
Management recognises all financial assets and liabilities at amortised cost and considers it to approximate fair value. The company does not have any assets measured at FVOCI.
Fair value hierarchy
This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into three levels as follows:
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 - Inputs other than Quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3 - I nputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
B. Measurement of fair values
There were no level 3 or unobservable inputs that were used in the valuation of financial assets or liabilities noted above.
C. Financial risk management
The Company has exposure to the following risks arising from financial instruments:
- credit risk;
- liquidity risk; and
- market risk
i. Risk management framework
The Company''s Board of Directors has the overall responsibility for the establishment and oversight of the Company''s risk management framework. The Board of Directors along with the top management are responsible for developing and monitoring the Company''s risk management policies.
The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.
ii. Credit risk
Credit risk is the risk of financial loss to the Company, if a customer or counter party to a financial instrument fails to meet its contractual obligations and arises principally from the Company''s receivables from customers; loans and investments in debt securities.
The carrying amounts of financial assets represent the maximum credit risk exposure.
Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in
The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment.
Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected credit losses. Given that the macro economic indicators affecting customers of the Company have not undergone any substantial change, the Company expects the historical trend of minimal credit losses to continue. Further, management believes that the unimpaired amounts that are past due by more than 30 days are still collectible in full , except to the extent already provided, based on historical payment behaviour and extensive analysis of customer credit risk. The impairment loss at the reporting dates relates to several customers who have defaulted on their payments to the Company and are not expected to be able to pay their outstanding balances, mainly due to economic circumstances.
The Company determines credit risk based on a variety of factors including but not limited to the age of the receivables, cash flow projections and available press information about customers. In order to calculate the loss allowance, loss rates are calculated using a ''Roll rates'' method based on the probability of a receivable progressing through successive stages of delinguency through write-off. Roll rates are calculated separately for exposures in different stages of delinguency primarily determined based on the time period for which they are past due. The Company assumes a 100% loss rate in case of trade receivables that are more than 730 days past due as it believes that the probability of collection in such cases are remote.
Cash and Bank balances (includes amounts classified under other Bank balances and deposits and other receivables)
The Company holds Cash and Bank balances of Rs.914.31 Lakhs at 31 March 2024 (31 March 2023: Rs.296.54 Lakhs). The credit worthiness of such Banks and financial institutions are evaluated by the management on an ongoing basis and is considered to be good.
Security deposits
This balance is primarily constituted by deposit given in relation to leasehold premises occupied by the Company for carrying out its operations. The Company does not expect any losses from non-performance by these counter-parties.
iii. Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.
Exposure to liquidity risk
The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include contractual interest payments and exclude the impact of netting agreements:
Market risk is the risk that changes in market prices - such as foreign exchange rates and interest rates will affect the Company''s income or the value of holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters and optimise the returns.
A reasonably possible strengthening (weakening) of the US Dollar against INR at 31 March would have affected the measurement of financial instruments denominated in a foreign currency and affected equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases.
Fair value sensitivity analysis for fixed rate instruments
In respect of the fixed rate borrowings and Bank deposits the Company is not exposed to any fair value risk and as such any changes in the interest rates does not have any impact on equity or profit and loss.
The following table illustrates the sensitivity of profit to a reasonably possible change in interest rates of /- 1% for the year ended 31 March 2024 and 31 March 2023. These changes are considered to be reasonably possible based on observation of current market conditions. The calculations are based on a change in the average market interest rate for each period, and the financial instruments held at each reporting date that are sensitive to changes in interest rates. All other variables are held constant.
41 Due to Micro, Small and Medium enterprises
The Ministry of Micro, Small and Medium Enterprises has issued an office memorandum dated 26 August 2008, which recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum in accordance with the Micro, Small and Medium Enterprise Development Act, 2006 (''the Act''). Accordingly, the disclosure in respect of the amounts payable to such enterprises as at 31 March 2024 has been made in the financial statements based on information received and available with the Company.
|
42 Contingent Liabilities and Commitments (to the extent not provided for) |
||||
|
Particulars |
As at 31 March 2024 |
As at 31 March 2023 |
||
|
A Commitments |
||||
|
Total Contract Value |
- |
4,037.92 |
||
|
Less: Advance paid |
- |
4,021.22 |
||
|
Retention Money |
- |
158.59 |
||
|
Balance |
- |
16.70 |
||
|
B Contingent liabilities in respect of |
||||
|
(i) Bank Guarantees/ Letter of credits by banks (Net of Margin Money held by banks) |
127.18 |
173.87 |
||
|
(ii) Claim against the Company not acknowledged as debt in respect of the following matters: |
||||
|
S. No |
Name of the Statute |
Nature of dues |
Disputed Amount as on 31 March 2024 |
Disputed Amount as on 31 March 2023 |
|
1 |
The Income Tax, 1961 |
Income tax |
457.89 |
457.89 |
|
2 |
Employees Provident Fund Act,1952 |
PF and others |
21.53 |
21.53 |
|
3 |
Finance Act, 1994 |
Service tax |
16.51 |
16.51 |
|
4 |
Customs Act, 1962 |
Customs duty |
49.78 |
33.88 |
|
5 |
Consumer Protection Act,1986 |
Customer complaints |
14.76 |
14.76 |
|
6 |
Civil Law Act, 1956 |
Civil suits |
93.27 |
93.27 |
|
7 |
Payment of Gratuity Act, 1972 |
Gratuity cases |
0.23 |
0.23 |
44 Property, Plant and Equipment and Investment Property(a) Lease Hold Land
Leasehold property includes Rs.77.27 lakhs being the value of Land Lease ( for 90 years ) acquired from KINFRA Film & Video Park (KINFRA), a Government of Kerala Undertaking to the company for construction of building to carry on Animation related business which was later on changed to IT and ITES business , for which the registration formalities were to be completed. As per the original allotment, the said land is on a 90 year lease arrangement and has to be developed within a period of 3 years from the date of allotment i.e. on or before 05 April 2010. The said Land could not be developed within the time frame agreed on account of the difficult scenario being faced by the Animation Industry in general and the Group in particular. KINFRA , in the meantime has changed the status of the SEZ from Animation to include IT/ITES also. This has been approved by the Ministry of Industries and Commerce vide its letter dated 7 February 2012. The Company has completed the construction of a commercial building for IT/ITES under SEZ Status in May''2022. As per the Lease Agreement dated 28 June 2021, the lease period is mentioned as 77 years and 1 month commencing from 5 March 2021 . Accordingly the Company has decided to amortise the Land over the balance lease period as mentioned above.
in the opinion of the management there is no impairment as on the date of the balance sheet in the value of the carrying cost of intellectual Property Rights (IPR) of the company within the meaning of Indian Accounting Standard - 36 on impairment of Assets issued under Companies (Indian Accounting Standards) Rules 2015, considering the revenue earning potential of the company and based on the estimated future cash flows upon crystallization of enquiries received by the company for the intellectual property rights carried in the books as intangible assets.
The Company has created mortgage on the Land and building in favour of Banks for availing Cash credit, Term loan, Rent securitisation loan for the Company and Cash credit facility and for availing term loan for one of the subsidiary Company.
investments in subsidiaries and Associate are stated at cost using the exemption provided as per ind AS 27 - Separate Financial Statements.
The management believes that the carrying amounts are lower than the recoverable amounts based on discounted value of the future cash flows to be generated and there won''t be any impairment in the long run.
46 Leases as lessee (Ind AS 116)
The leased assets of the Company include warehouse buildings and plant and machineries which are taken on lease for providing warehousing, printer managed services to the customers. The leases typically run for a period of 1 to 5 years, with an option to renew certain leases after that date. Previously, these leases were classified as operating leases under Ind AS 17. On transition to Ind AS 116, the Company recognized right to use of assets at its carrying amount as if the standard has been applied since the commencement of the lease. The summary of the movement of right-of-use assets for the year is given below:
On transition to ind AS 116, the Company recognized lease liabilities measured at the present value of remaining lease payments. The following table sets out a maturity analysis of lease payments, showing the undiscounted lease payments to be received after the reporting date.
a The company has given an inter corporate advance of Rs.329 Lakhs (PY Rs.329 Lakhs) in the books shown under "Other Financial Assets Non-Currentâ in the financial statements . The management is of the view that there is no diminution to the carrying value of these loans and advances, however a provision of Rs.329 Lakhs (PY Rs. 160 Lakhs) has been created in the books on a conservative basis during the year, though the management is confident of recovering the said advance.
b. The Company had Invested in Preference Shares and had given unsecured loan to Accel Media Ventures Limited, a subsidiary of the Company to meet the working capital reguirements . As at 31 March 2024 , the amount outstanding net of repayment received was Rs.490.89 Lakhs ( 31 March 2023 : Rs.361.69 Lakhs) as disclosed in the financial statements under "Loans " - Note 11 in the financial statements. The company has tested the impairment of these assets and is of the view that there is no diminution to the carrying value of these loans taking cognizance of the proposal to amalgamate the subsidiary Company with Accel Limited.
Balance at the end of the financial year for Trade receivable, Trade payable, Loans and advances, advance received from customers are subject to confirmation. The Management is of the view that there is no permanent change to the carrying value of these loans and advances, trade receivables and trade payables except for the provision considered in this regard in the accompanying financial statements.
49 a) Employee Benefits(Defined Benefit Plan)
The Company operates the following post-employment defined benefit plans: i) Gratuity
In accordance with applicable Indian laws, the Company provides for gratuity, a defined benefit retirement plan ("the Gratuity Planâ) covering eligible employees. The Gratuity Plan provides for a lump sum payment to vested employees on retirement (subject to completion of five years of continuous employment), death, incapacitation or termination of employment that are based on last drawn salary and tenure of employment. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation on the reporting date.
The company has established a trust by name, Accel Employees Group Gratuity Trust w.e.f. January 31, 2022 and has made necessary applications to Income Tax department for approval.
These defined benefit plans expose the Company to actuarial risks, such as longevity risk and interest rate risk.
The Company has a fund balance of INR 46.67 Lakhs in the gratuity fund, maintained with BaJaJ Allianz Life Group Employee Care, net of gratuities settled, since inception, which is approximately 20 % of the total liability arrived at on actuarial basis as on 31 March 2024.
B. Reconciliation of the net defined benefit (asset)/ liability
The following table shows a reconciliation from the opening balances to the closing balances for the net defined benefit (asset) liability and its components:
b) Employee Benefits (Defined Contribution Plan)
The Company makes contributions, determined as a specified percentage of employee salaries, in respect of Qualifying employees towards Provident Fund (PF) and employees'' state insurance (ESI) scheme which are defined contribution plans. The Company has no obligations other than to make the specified contributions. The contributions are charged to the statement of profit and loss as they accrue. The amount recognised as an expense towards contribution to Provident Fund and ESI for the year aggregated to INR 359.86 Lakhs (31 March 2023: INR 372 Lkahs ) ii) Compensated Absences
The liability in respect of the company, for outstanding balance of privilege leave at the balance sheet date is determined and provided on the basis of actuarial valuation performed by an independent actuary. The Group does not maintain any plan assets to fund its obligation towards compensated absences
These defined benefit plans expose the Company to actuarial risks, such as longevity risk and interest rate risk.
The Leave encashment plan of the Company is a unfunded plan,
B. Reconciliation of the net defined benefit (asset) / liability
The following table shows a reconciliation from the opening balances to the closing balances for the net defined benefit (asset) liability and its components:
The company is engaged in the business of IT Service, Animation, Engineering, Real Estate and academic business.
A. Geographic information:
(i) The geographic information analyses the Company''s revenue by the Company''s country of domicile and other countries. In presenting the geographical information, revenue has been determined based on the geographic location of the customers.
There are no significant subsequent events that have occurred after the reporting period till the date of this financial statements.
53. The Company has proposed to amalgamate one of its subsidiary Accel Media Ventures Limited with the Company effective 1st April 2024 and necessary steps have been initiated in this regard.
54. Previous year''s Figure have been regrouped, recasted and rearranged wherever necessary, to suit the current period layout.
Mar 31, 2023
(i) Reclassification of items between Property,plant and equipment and Investment property amounting to Rs.1,223.79 Lakh applied as per provisions of Ind AS 40 at the beginning of financial year 2021-22.
(ii) Additions during the year amounting to Rs.3,685.49 lakh represents capialisation of amount incurred towards setting up of a commercial building at KINFRA Film & Video Park (KINFRA) . The capitalisation amount includes Interest amount of Rs.397.74 Lakh during the year under Buildings as per provisions of Ind AS 23.
(iii) Reclassification of items between Property,plant and equipment and Investment property amounting to Rs.12.77 Lakh applied as per provisions of Ind AS 40 at the beginning of the financial year 2022-23.
In the opinion of the management, there is no impairment as on the date of the balance sheet in the value of the carrying cost of Intellectual Property Rights (IPR) of the Company within the meaning of Ind AS 36 on Impairment of Assets issued under Companies (Indian Accounting Standards) Rules 2015, considering the revenue earning potential of the Company and based on the estimated future cash flows upon crystallisation of enquiries received by the company for the intellectual property rights carried in the books as Other Intangible assets.
1 The Company during the financial year 2019-20 made an investment of 26,09,000 6 % cumulative redeemable preference shares ( face value of Rs.10/- per share). The Investment has been fair valued in accordance with the provisions of Ind AS 109 and the equity component of Rs.116.17 lakh has been disclosed above and the debt component of Rs.216.94 lakh ( 31 March 2022 : Rs. 192.95 lakh ) has been disclosed separately under Note 11 (Also refer Note 39B).
Rights, preferences and restrictions attached to equity shares
Equity shares
(i) The Company has only one class of equity shares having a par value of Rs.2/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees.
(ii) In the event of the liquidation of the Company, the holder of equity share will be entitled to receive the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be proportionate to the number of equity shares held by the shareholders.
(a) The grant of options to the employees under the stock option scheme is on the basis of their performance and other eligibility criteria.
(b) Options is excercised immediately and settled by way of issue of Equity Shares.
(i) Securities Premium - Where the Company issues shares at a premium, whether for cash or otherwise, a sum equal to the aggregate amount of the premium received on those shares shall be transferred to "Securities Premium". The Company may issue fully paid-up bonus shares to its members out of the Securities Premium and the Company can use this reserve for buy-back of shares.
21 (B) Distribution made and proposed Particulars
Cash dividend on equity shares declared and paid:
Dividend for the year ended 31 March 2023 : Rs. 0.30 /- per share (31 March 2022 Rs. Nil per share) Proposed dividend on Equity shares:
Proposed dividend for the year ended 31 March 2023: Rs.0.30 /- per share (31 March 2022: Rs. 0.30/- per share)
Proposed dividend of Rs. 0.30/- per share on Equity shares are subject to the approval at the Annual General Meeting and has not been recognised as a liability as at 31 March 2023.
The Company''s policy is to maintain a strong capital base so as to maintain investor and creditor confidence and to sustain future development of the business. Management monitors the return on capital, as well as the level of dividends to equity shareholders.
Details of registration of charges with Registrar of Companies (ROC) :
(a) The Company is in the process of completing the registration of charges with ROC.
(b) Registration of Memorandum of Deposit and Title Deeds ( MOD) with the Sub Registrar Office has been completed for all the properties except the properties at the registered Office of the Company at SFI complex, Chennai. The Company intends to complete the registration of charges with ROC upon completion of registration of MOD for the properties as explained above.
37 Earnings per equity share (EPS)
For the purpose of computing the Earnings per share, the net profit after taxes has been used as the numerator and the weighted average number of shares outstanding has been considered has the denominator.
The Company has not disclosed the fair values of financial instruments such as Trade receivables, Other Finanancial assets , Trade payables , other financial liabilities, borrowings and lease liabilities, since their carrying amounts are reasonable approximations of their fair values.
Fair value hierarchy
This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into three levels as follows:
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
There were no level 3 or unobservable inputs that were used in the valuation of financial assets or liabilities noted above.
C. Financial risk management
The Company has exposure to the following risks arising from financial instruments:
- credit risk;
- liquidity risk; and
- market risk
Risk management framework
The Company''s Board of Directors has the overall responsibility for the establishment and oversight of the Company''s risk management framework. The Board of Directors along with the top management are responsible for developing and monitoring the Company''s risk management policies.
The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.
i. Credit risk
Credit risk is the risk of financial loss to the Company, if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Company''s receivables from customers; loans and investments in debt securities.
The carrying amounts of financial assets represent the maximum credit risk exposure.
Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company establishes an allowance for doubtful debts and impairment that represents its estimate of incurred losses in respect of the Company''s trade receivables, certain loans and advances and other financial assets.
The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment.
Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected credit losses. Given that the macro economic indicators affecting customers of the Company have not undergone any substantial change, the Company expects the historical trend of minimal credit losses to continue. Further, management believes that the unimpaired amounts that are past due by more than 30 days are still collectible in full , except to the extent already provided, based on historical payment behaviour and extensive analysis of customer credit risk. The impairment loss at the reporting dates relates to several customers who have defaulted on their payments to the Company and are not expected to be able to pay their outstanding balances, mainly due to economic circumstances.
The Company determines credit risk based on a variety of factors including but not limited to the age of the receivables, cash flow projections and available press information about customers. In order to calculate the loss allowance, loss rates are calculated using a ''Roll rates'' method based on the probability of a receivable progressing through successive stages of delinquency through write-off. Roll rates are calculated separately for exposures in different stages of delinquency primarily determined based on the time period for which they are past due. The Company assumes a 100% loss rate in case of trade receivables that are more than 270 days past due as it believes that the probability of collection in such cases are remote.
The following table provides information about the exposure to credit risk and expected credit loss for trade receivables :
The Company holds Cash and Bank balances of Rs.296.53 Lakhs at 31 March 2023 (31 March 2022: Rs.145.01 Lakhs). The credit worthiness of such Banks and financial institutions are evaluated by the management on an ongoing basis and is considered to be good.
Security deposits
This balance is primarily constituted by deposit given in relation to leasehold premises occupied by the Company for carrying out its operations. The Company does not expect any losses from non-performance by these counter-parties.
ii. Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.
Exposure to liquidity risk
The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include contractual interest payments and exclude the impact of netting agreements:
Market risk is the risk that changes in market prices - such as foreign exchange rates and interest rates will affect the Companie''s income or the value of holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters and optimise the returns.
A reasonably possible strengthening (weakening) of the US Dollar against INR at 31 March would have affected the measurement of financial instruments denominated in a foreign currency and affected equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases.
40 Due to Micro, Small and Medium enterprises
The Ministry of Micro, Small and Medium Enterprises has issued an office memorandum dated 26 August 2008 ,which recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum in accordance with the Micro, Small and Medium Enterprise Development Act, 2006 (''the Act''). Accordingly, the disclosure in respect of the amounts payable to such enterprises as at 31 March 2022 has been made in the financial statements based on information received and available with the Company.
43 Business combinations under common control
Merger of Accel IT Services Ltd and Computer Factory ( India) Private Limited with the Company
The Board of Directors of the Company at its meeting held on 3rd September 2020 approved a Scheme of Arrangement ("the Scheme") enabling the merger of two of its wholly owned subsidiaries, namely Accel IT Services Ltd (formerly Ensure Support Services India Ltd) and Computer Factory (India) Private Limited with the Company, vide National Company Law Tribunal ( NCLT ) order dated 7th March 2023.
The accounting treatment is presented hereunder :
Assets acquired and liabilities assumed:
The values of the assets and liabilities of Accel IT Services Ltd and Computer Factory (India) Private Ltd as at the date of acquisition were:
The Company has recorded all the assets, liabilities and reserves of Accel IT Services Ltd (formerly Ensure Support Services India Ltd) and Computer Factory (India) Limited vested in it pursuant to the merger scheme, by applying the principles as set out in Appendix C of Ind AS 103 "Business Combinations" and prescribed under Companies ( Indian Accounting Standards) Rules, 2015 issued by the Institute of Chartered Accountants of India. Accordingly the Standalone Financial Results of the Company have been restated for the periods presented on account of merger of the two Companies with effect from 1 April 2020 ("Appointed date"). The effect of merger of the two Companies on Financial Results in the previous periods is as shown below:
44 Property, Plant and Equipment and Investment Property(a) Lease Hold Land
Leasehold property includes Rs.77.27 lakhs being the value of Land allotted and possession handed over by KINFRA Film & Video Park (KINFRA), a Government of Kerala Undertaking to the Company for construction of building to house its operations for which the registration formalities were to be completed. As per the original allotment, the said land is on a 90 year lease arrangement and has to be developed within a period of 3 years from the date of allotment i.e. on or before 05 April 2010. The said Land could not be developed within the time frame agreed on account of the difficult scenario being faced by the Animation Industry in general and the Company in particular. KINFRA , in the meantime has changed the status of the SEZ from Animation to include IT/iTeS also. This has been approved by the Ministry of Industries and Commerce vide its letter dated 7 February 2012. The Company has during the year completed the
construction of a commercial building for IT/ITES under SEZ Status. As per the Lease Agreement dated 28 June 2021, the lease period is mentioned as 77 years and 1 month commencing from 5 March 2021 . Accordingly the value of the Land is being amortised over the lease period as mentioned above.
(b) Impairment of Assets
In the opinion of the management there is no impairment as on the date of the balance sheet in the value of the carrying cost of Intellectual Property Rights (IPR) of the company within the meaning of Indian Accounting Standard - 36 on Impairment of Assets issued under Companies (Indian Accounting Standards) Rules 2015, considering the revenue earning potential of the company and based on the estimated future cash flows upon crystallization of enquiries received by the company for the intellectual property rights carried in the books as other intangible assets.
(c) Land and Building
The Company has created mortgage on the Land and building in favour of Banks for availing Cash credit , Term loan, Rent securitisation loan for the Company and Cash credit facility and for availing term loan for one of the subsidiary Company.
a) Investments in subsidiaries and Associate are stated at cost using the exemption provided as per Ind AS 27 "Separate Financial Statements
b) The Company on 30 March, 2022 had signed a Share Purchase agreement for strategic acquisition of 1,73,900 nos. of the equity shares forming 26% of the paid up capital of the IT security Company M/s. Secureinteli Technologies Private Limited [Formerly known as BizCarta Technologies (India) Private Limited] at Rs. 280.50/- per share aggregating to Rs. 487.79 Lakh.
46 Leases as lessee (Ind AS 116)
The leased assets of the Company include warehouse buildings and plant and machineries which are taken on lease for providing warehousing, printer managed services to the customers. The leases typically run for a period of 1 to 5 years, with an option to renew certain leases after that date. Previously, these leases were classified as operating leases under Ind AS 17. On transition to Ind AS 116, the Company recognized right to use of assets at its carrying amount as if the standard has been applied since the commencement of the lease. The summary of the movement of right-of-use assets for the year is given below:
Upon transition to Ind AS 116, the Company recognized lease liabilities measured at the present value of remaining lease payments. The following table sets out a maturity analysis of lease payments, showing the undiscounted lease payments to be received after the reporting date.
a) The Company had given an inter corporate advance of Rs.329 Lakhs (31 March 2022: Rs 329 Lakhs) in the books shown under "Other Financial Assets Non-Current" in the financial statements. The management is of the view that there is no diminution to the carrying value of these loans and advances, however a provision of Rs.160 Lakhs has been created in the books on a conservative basis, though the management is confident of recovering the said advance.
b) The Company had Invested in Preference Shares and had given unsecured loan to Accel Media Ventures Limited, a subsidiary of the Company to meet the working capital requirements . As at 31 March 2023 , the amount outstanding net of repayment received was Rs.361.69 Lakhs ( 31 March 2022 : Rs.302.40 Lakhs) as disclosed in the financial statements under "Loans " - Note 11 in the financial statements. The Management is of the view that there is no diminution to the carrying value of these loans taking cognizance of the proposal to amalgamate the subsidiary Company with Accel Limited.
Balance at the end of the financial year for Trade receivable, Trade payable, Loans and advances, advance received from the customers are subject to confirmation. The Management is of the view that there is no permanent change to the carrying value of these loans and advances, trade receivables and trade payables except for the provision considered in this regard in the accompanying financial statements.
49 a) Employee Benefits (Defined Benefit Plan)
The Company operates the following post-employment defined benefit plans: i) Gratuity
In accordance with applicable Indian laws, the Company provides for gratuity, a defined benefit retirement plan ("the Gratuity Plan") covering eligible employees. The Gratuity Plan provides for a lump sum payment to vested employees on retirement (subject to completion of five years of continuous employment), death, incapacitation or termination of employment that are based on last drawn salary and tenure of employment. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation on the reporting date.
These defined benefit plans expose the Company to actuarial risks, such as longevity risk and interest rate risk.
A. Funding
The gratuity plan of the Company is a unfunded plan.
B. Reconciliation of the net defined benefit (asset)/ liability
The following table shows a reconciliation from the opening balances to the closing balances for the net defined benefit (asset) liability and its components:
b) Employee Benefits (Defined Contribution Plan)
The Company makes contributions, determined as a specified percentage of employee salaries, in respect of qualifying employees towards Provident Fund (PF) and employees'' state insurance (ESI) scheme which are defined contribution plans. The Company has no obligations other than to make the specified contributions. The contributions are charged to the statement of profit and loss as they accrue. The amount recognised as an expense towards contribution to Provident Fund and ESI for the year aggregated to Rs. 372 lakhs (31 March 2022: Rs. 247 lakhs) .
The liability in respect of the company, for outstanding balance of privilege leave at the balance sheet date is determined and provided on the basis of actuarial valuation performed by an independent actuary. The Company does not maintain any plan assets to fund its obligation towards compensated absences .
These defined benefit plans exposes the Company to actuarial risks, such as longevity risk and interest rate risk.
A. Funding
The Leave encashment plan of the Company is a unfunded plan.
B. Reconciliation of the net defined benefit (asset)/ liability
The following table shows a reconciliation from the opening balances to the closing balances for the net defined benefit (asset) liability and its components:
Reconciliation of present value of defined benefit obligations
The Company is engaged in the business of IT Service, Animation, Engineering, Realty and Academic business.
(i) The geographic information analyses the Company''s revenue by the Company''s country of domicile and other countries. In presenting the geographical information, revenue has been determined based on the geographic location of the customers.
(ii) The Company''s operations are entirely carried in India and as such all its non-current assets are located in India.
(iii) There are no individual customers more than 10% of the total trade receivables as at 31 March 2023
There are no significant subsequent events that have occurred after the reporting period till the date of this financial statements.
53. The Company has proposed to amalgamate two of its subsidiaries Accel OEM Appliances Private Limited and Accel Media Ventures Limited with the Company effective 1 April 2023 and the necessary steps have been initiated in this regard.
54. Previous year figures have been regrouped,recasted and rearranged wherever necessary, to suite the current period layout.
Mar 31, 2018
Company Information:
Accel Transmatic Limited (the company) is a public limited company domiciled in India and is listed in the Bombay stock exchange (BSE). The company presently offers animation services and engineering services from its facilities in Trivandrum and Chennai. The Company, as part of its business operations is also in the process of development of its surplus land both freehold and leasehold at Trivandrum.
i) Lease Hold Land
Land under Fixed Assets includes Rs.67.60 lacs being the value of land allotted and possession handed over by KINFRA Film & Video Park (KINFRA), a Government of Kerala Undertaking to the Company for construction of building to house its operations for which the registration formalities are yet to be completed. As per the agreement with " the party ", the said land is on a 90 year lease and has to be developed within a period of 3 years from the date of allotment i.e. on or before 05.04.2010. The said land could not be developed within the time frame agreed on account of the difficult scenario being faced by the Animation Industry in general and the company in particular. KINFRA , in the meantime has changed the status of the SEZ from Animation to include IT/ITES also. This has been approved by the Ministry of Industries & Commerce vide its letter dated 7th February 2012 . The company is taking steps in consultation with KINFRA, to obtained a Co-developer status and develop the land.
ii.) Impairment of Assets
In the opinion of the management there is no impairment as on the date of the balance sheet in the value of the carrying cost of Intellectual Property Rights (IPR) of the company within the meaning of Accounting Standard - 28 on Impairment of Assets issued under Companies (Accounting Standards) Rules 2006, considering the revenue earning potential of the company and based on the estimated future cash flows upon crystallization of enquiries received by the company for the intellectual property rights carried in the books as intangible assets.
iii.) Fixed assets , capital work in progress & Inventory of intangible assets
The animation division of the company is engaged in the development of Animation contents, which can be under a service / co production contract or for creating its own IPR. The cumulative expenses incurred under co production and IPR creation activities are carried forward under capital work-in-progress, till the assets are ready for commercial exploitation. The expenses incurred under service contracts are carried forward as work in progress inventories till the milestone billing are achieved. As a result Rs. Nil (PY Nil)are carried forward in the Accounts as at the year end.
During the year under review Rs.7,32,052/- has been incurred towards developmental expense for Gandhipuram land location at Thiruvananthapuram. The Closing work in progress stands at Rs.17,41,666/-
iv.) Land & Building
a. During the year under review the Company has disposed of land and building at 75, Nelson Manickam Road, Aminjikari, Chennai 600 029. (Land area 8000 sqft and building 14,850 sq ft). The resultant profit arising out of this transaction is reflected in other income.
b. The company has created a mortgage on one office building, in favour of the bank, towards banking facilities extended by the bank, to a subsidiary company.
(i) Investments in subsidiary and associates are stated at cost using the exemption provided as per Ind AS 27 "Separate Financial Statements"
(ii) The investment includes investment in Accel Frontline Limited(AFL) an erstwhile subsidiary company, which became a subsidiary of the JV partner, CAC Holdings Corporation, Japan, (CAC) and as a part of this arrangement , the company had signed a Shareholders'' agreement with AFL and CAC and the company also had given certain Representations and Warranties and also given Indemnities. The JV Arrangement resulted in certain disputes in respect of Representation and Warranties and on account of litigation before NCLT as well as SIAC between parties , a settlement was arrived at between the Parties, warranting the company to transfer its balance holding in AFL, without any consideration, to a Trust during the financial year 2017-18, AFL being the beneficiary.
b. Terms / rights attached to equity shares Equity shares
The company has one class of equity shares having a par value of Rs. 2 each. Each shareholder is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts in proportion to their shareholding.
d. During the period of five years immediately preceding the date at which the Balance Sheet is prepared , the Company has not
- alloted fully paid up shares pursuant to contract without payment being received in cash.
- alloted fully paid up shares by way of bonus shares and
- brought back shares
Details of Security
(i) Asset Backed Loan
(a) The Asset Backed Loan (ABL) from bank is secured by equitable mortgage of Company''s immovable properties and corporate guarantee by the Company and personal guarantee by the Promoter Director. ABL has fully being repaid before close of year ended 31st March, 2018.
(b) Closure of Loans:
The Asset Backed Loans has been fully repaid on 06-11-2017 and the overdraft / loan was a availed form The Federal Bank Limited, RM Nagar, Chennai secured against fixed deposit of RS.1 Crore.
( c) Charge Creation:
The charge against Asset Backed Loan as per MCA database has been closed on 04-01-2018
(ii) HP Loan
The HP Loan is availed from Kotak Mahindra Prime and The Federal Bank Limited Secured against Vehicle purchased against the respective loan.
Dues to Micro , Small & Medium Enterprises
The company has initiated the process of identifying the suppliers who qualify under the definition of micro and small enterprises, as defined under the Micro, Small and Medium Enterprises Development Act 2006. Since no intimation has been received from the suppliers regarding their status under the said Act as at 31st March 2018 , disclosures relating to amounts unpaid as at the year end, if any, have not been furnished. In the opinion of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the Act is not expected to be material.
(i) Revenue from operations, computed in accordance with IndAS "Revenue", for the current year is not comparable with previous year since the same is net of Goods & Service Tax (GST) whereas excise duty form part of expenses in previous year and current year (upto 30th June, 2017) (Iby way of a Settlement Agreement and Release dated 15.03.2017, signed by and between the company, Accel Limited and other Promoters M/s. CAC Holdings Corporation, Japan and Accel Frontline Limited, a settlement has been arrived at wherein all the parties have withdrawn their disputes and the litigation and as a part of the settlement, the company had transferred its holding in Accel Frontline Limited to a Trust without any consideration, the beneficiary of which will be Accel Frontline Limited. The accounts includes loss on disposal of shares amounting to Rs.7,38,33,247/-which has been shown under Exceptional Items.
2.Tax Expenses
Provision for current tax is made on the basis of the assessable Income and /or Mat Provisions, at the tax rate applicable to the relevant assessment year. No tax provision is made under normal as well under MAT considering the brought forward losses of the company as a whole. The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date The net Deferred Tax Asset at the year end is not recognized as a matter of prudence.
Sensitivity Analysis
Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected salary increase and mortality. The sensitivity analysis below have been determined based on reasonably possible changes of the assumptions occurring at the end of the reporting period, while holding all other assumptions constant. The results of sensitivity analysis is given below:
3. Dividend
The Board of directors of the Company in its meeting held on 30th May 2018 has declared an interim dividend of 20% (Rs.0.40 per equity share) to equity shareholders amounting to Rs.22,802,960.40 and the same will be paid out of the profits of the company for the year ending 31st March 2018 subject to DDT.
4. Financial risk management
The company presently offers animation services and engineering services from its facilities in Trivandrum and Chennai. The Company, as part of its business operations is also in the process of development of its surplus land in the factory area located at Sreekariyam, Trivandrum.
The company has exposure to the following risks:
(1) Credit Risk
(2) Liquidity Risk
(3) Market Risk
(1) Credit Risk
Credit risk is a risk that counter party will not meet its obligation under the financial instrument or customer contract leading to financials loss. This risk consists primarly of default being experienced in trade receivables. The Company has provided for expected losses and hence there is no significant credit risk to the company. Before accepting any new customer, Company asses the potential customer''s credit quality.
(2) Liquity Risk
Refers to risk the company cannot meet its financial obligations. Since the Company has access to Varity sources of funding and is also continuously monitoring actual cash flows, this is not a significant risk to the company.
(3) Market Risk
Market risk is that the fair value of the future cash flows of financials instrument will fluctuate because of changes in market price. However this is not a significant risk since the company has provided in the books the fluctuation in market price of financial instruments as on the date of balance sheet for Mutual Funds.
5. GENERAL
The comparative financial information of the Company for the year ended 31 March 2017 and the transition date opening balance sheet as at 01 April 2016 included in these Standalone Ind AS Financial Statements, are based on the previously issued Statutory Financial Statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006 audited by the predecessor auditor whose report for the year ended 31 March 2017 and 31 March 2016 dated 25 May 2017 and 14 July 2016 respectively expressed an unmodified opinion on those Standalone Financial Statements, as adjusted for the differences in the accounting principles adopted by the Company on transition to the Ind AS, which have been audited by statutory auditors.
Mar 31, 2015
1. Rights, preferences and restrictions attached to shares Equity
shares
The company has one class of equity shares having a par value of Rs, 10
each. Each shareholder is eligible for one vote per share held. In the
event of liquidation, the equity shareholders are eligible to receive
the remaining assets of the company after distribution of all
preferential amounts in proportion to their shareholding. Preference
Shares
The company had issued 5,000,000 10% Cumulative Redeemable Preference
Shares of a face value of Rs.10/- to the promoter company Accel Limited
aggregating to Rs.50,000,000/-on August 14, 2013 against loan amount
outstanding due to that Company as on that day. The Issue was approved
by the share holders in the AGM held on August 14, 2013. The shares are
redeemable after 7 years of the date of issue.
2. Details of Security
The Asset Backed Loan (ABL) from bank is secured by equitable mortgage
of Company's immovable properties and corporate guarantee of its
holding company M/s Accel Limited and personal guarantee of Mr N R
Panicker, Promoter Director.
3. Terms of repayment
Asset Backed Loan (ABL) from bank carries interest @ 12.70% p.a and the
amount outstanding as on date of balance sheet is repayable in 83
monthly instalments. The terms of repayment of loan from Holding
Company is not stipulated yet.
4. Dyes to Micro, Small & Medium Enterprises
The company has initiated the process of identifying the suppliers who
qualify under the definition of micro and small enterprises, as defined
under the Micro, Small and Medium Enterprises Development: Act: 2006.
Since no intimation has been received from the suppliers regarding
their status under the said Act as at 31st March 2015, disclosures
relating to amounts unpaid as at the year end, if any, have not been
furnished. In the opinion of the management, the impact of interest, if
any, that may be payable in accordance with the provisions of the Act:
is not expected to be material.
5. Capital Advance represents consideration received from an
associated concern as advance towards proposed utilisation of
infrastructural facilities situated at leased premises in KINFRA,
Trivandrum. Since the proposal is at the intial stage and the approval
from authorities is awaited, no adjustment is made in the book of
accounts for the assets proposed to be so transferred as per
arrangement.
6. Revaluation
The company has revalued its land and buildings at Trivandrum during
the year ended 31.03,2004, at the fair values determined by an
independent external valuer. The valuer determined the fair value by
reference to market-based evidence.
The revaluation resulted in an increase in the value of freehold land
and building by Rs. 1,09,39,354 and Rs.17,50,486, respectively. The
revaluation of the building results an additional depreciation charge
of Rs.58,466 every year. In accordance with the option given in the
Guidance Note on Accounting for Depreciation in Companies, the company
recoups such additional depreciation out of revaluation reserve.
7. Lease Hold Land
Land under Fixed Assets includes Rs.67.60 lacs being the value of land
allotted and possession handed over by KIN FRA Film & Video Park (KIN
FRA), a Government of Kerala Undertaking to the Company for
construction of building to house its operations for which the
registration formalities are yet to be completed. As per the agreement:
with" the party", the said land Is on a 90 year lease and has to be
developed within a period of 3 years from the date of allotment i.e. on
or before 05.04.2010,. The said land could not be developed within the
time frame agreed on account of the difficult scenario being faced by
the Animation Industry in general and the company in particular. KIN
FRA , in the meantime has changed the status of the SEZ from Animation
to include IT/ITES also., This has been approved by the Ministry of
Industries & Commerce vide its letter dated 7th February 2012 . The
company's proposal to KIN FRA to change our status to a co developer is
still pending.
8. Fixed assets, capital work in progress & Inventory of intangible
assets
The animation division of the company Is engaged In the development of
Animation contents, which can be under a service / co production
contract or for creating its own IPR. The cumulative expenses incurred
under co production and IPR creation activities are carried forward
under capital work-in-progress, till the assets are ready for
commercial exploitation. The expenses incurred under service contracts
are carried forward as work in progress inventories till the milestone
billing are achieved. As a result Rs. Nil (PY Rs.5,14,00)are carried
forward in the Accounts as at the year end.
8. Impairment of Assets
In the opinion of the management there is no impairment as on the date
of the balance sheet in the value of the carrying cost of fixed assets
of the company within the meaning of Accounting Standard - 28 on
Impairment of Assets issued under Companies (Accounting Standards)
Rules 2006, considering the revenue earning potential of the company
and based on the estimated future cash flows upon crystallization of
enquiries received by the company for the intellectual property rights
carried In the books as intangible assets.
9 Exceptional Item
The Company has adopted the revised estimates of useful life of Fixed
Assets as stipulated in Schedule II of the Companies Act 2013 w.e.f 1st
April 2014. The additional depreciation on such adoption has been
charged to Statement of Profit & Loss which is not material. Further,
an amount of Rs.51,74,084/- is charged to Revenue as exceptional Item
being value of assets for which the useful! life hasexpired as on 1st
April 2014 asa resuit of such change.
10. Taxation:
Provision for current tax is made on the basis of the assessable Income
and /or Mat: Provisions, at the tax rate applicable to the relevant
assessment year. Mo tax provision is made under normal as well under
MAT considering the brought forward losses of the company as a whole.
The deferred tax asset and deferred tax liability is calculated by
applying tax rate and tax laws that have been enacted or substantively
enacted by the Balance Sheet date The net Deferred Tax Asset at the
year end is not recognized as a matter of prudence.
11. Related Party Disclosures Controlling Company Accel Limited
Associates
Accel Frontline Limited
Accel IT Resources Limited
Key Management Personnel:
N R Panleker Non Executive Chairman
K R Chandrasekaran Executive Director
Shoba Giridharan Company Secretary
12. Segment Reporting
The Company is engaged in the business providing animation services
which is considered to be the only reportable business segment as per
the Accounting Standard 17.
Previous year's figures have been regrouped , recasted and rearranged
wherever necessary, to suit the current period layout.
13.Merger
The Board of Directors of the Company, in its meeting held on 27th
March 2015 has approved a proposai for merger of the holding company
M/s Accel Limited, with the company w.e.f 1st April 2014 (Appointed
Date) subject to necessary statutory and other approvals. Accordingly,
a scheme of amalgamation has been drawan up and submitted to BSE Ltd.,
(Stock Exchange), which is pending for their approval. Necessary
adjustment in tha accounts would be incorported on approval of the
scheme by appropriate authorities.
Mar 31, 2014
1. Measurement of EBITDA
As permitted by the Guidance Note on the Revised Schedule VI to the
Companies Act, 1956, the company has elected to present earnings before
interest, tax, depreciation and amortization (EBITDA) as a separate
line item on the face of the statement of profit and loss. The company
measures EBITDA on the basis of profit/(loss) from continuing
operations. In its measurement, the company does not include
depreciation and amortization expense, finance costs and tax expense.
2. Rights, preferences and restrictions attached to shares Equity
shares
The company has one class of equity shares having a par value of Rs. 10
each. Each shareholder is eligible for one vote per share held. In the
event of liquidation, the equity shareholders are eligible to receive
the remaining assets of the company after distribution of all
preferential amounts in proportion to their shareholding.
3. Preference Shares
The company had issued 5,000,000 10% Cumulative Redeemable Preference
Shares to the promoter company Accel Limited, With a face value of Rs.
10/- aggregating to Rs.50,000,000/- on 27-09-2013 against loan amount
outstanding due to that Company as on that day. The Issue was approved
by the share holders in the AGM held on August 14, 2013. The shares are
redeemable after 7 years after the date of issue.
4. Going concern
The company has suffered cash losses from its operations during the
year. The accumulated losses as on the date of the balance sheet is
more than 50% of its net worth. However, considering the expected
future cash flows from the business and the intellectual property that
the company is currently exploiting through global sales, the
management is of the opinion that the company would be in a position to
continue as a going concern and hence the accounts have been drawn up
on such basis.
5.1: Details of Security : The Asset Backed Loan (ABL) from bank is
secured by equitable mortgage of Companies immovable properties and
corporate guarantee of its holding company M/s Accel Limited and
personal guarantee of Mr N R Panicker, Promoter Director.
5.2: Terms of repayment: loans from related party carry an interest of
7.50% for the holding company and 13.75% for other associate companies
and are repayable as per the loan agreement. ABL from bank carries
interest @ 12.85% p.a and the amount outstanding as on the date of
balance sheet is repayable in monthly installment over the next 83
months form the date of sanction.
6. Long term Provisions
a) Disclosure required under AS15 - "Employee Benefits" (Revised 2005)
1. Defined Contribution Plan
During the year, the company has recognized in the Profit and Loss
Account, an amount of Rs. 1,84,660 (Previous Year Rs. 286,959) on
account of defined contribution towards Provident Fund and Rs.
(Previous Year 35,371) towards Employees State Insurance Scheme.
2. Defined Benefit Plans
Gratuity - Funded Obligation
The assumption of future salary increases takes into account of
inflation, seniority, promotions and other relevant factors such as
supply and demand in the employment market.
Note: The above disclosures and the break up of liability into long
term and short term are based on valuation report of an independent
actuary and relied upon by the auditors.
3. Long Term Employee benefits
Compensated absences (Leave encashment) - Unfunded Obligation
The assumption of future salary increases takes into account of
inflation, seniority, promotions and other relevant factors such as
supply and demand in the employment market.
Note: The above disclosures and the break up of liability into long
term and short term are based on valuation report of an independent
actuary and relied upon by the auditors.
7. Short term borrowings
The Cash Credit limits, Term Loan Limits and Non Funded Limits (The
Limits) are secured by hypothecation of Intellectual property rights,
receivables and hypothecation of assets created out of bank finance and
carries interest @ 17.50% p.a and are repayable on demand.
The Limits are also secured by equitable mortgage of company''s
immovable properties at Trivandrum & Chennai
The limits are further secured by assignment of lease deposit in favour
of the bank in respect of leased property at Trivandrum. The loans are
also secured by a corporate guarantee of Accel Limited and pledge of
7,50,000 equity shares of Accel Transmatic Limited held by Accel
Limited, the holding company. Also refer note 5.3
The above loans were closed on 24-01-2014 after availing an Asset
Backed Loan (ABL) (Refer Note 5.1 above)
8. Dues to Micro, Small Enterprises
The company has initiated the process of identifying the suppliers who
qualify under the definition of micro and small enterprises, as defined
under the Micro, Small and Medium Enterprises Development Act 2006.
Since no intimation has been received from the suppliers regarding
their status under the said Act as at 31st March 2014, disclosures
relating to amounts unpaid as at the year end, if any, have not been
furnished. In the opinion of the management, the impact of interest, if
any, that may be payable in accordance with the provisions of the Act
is not expected to be material.
9. Other Current Liabilities
Note :
i. Advances received includes Security deposit including interest
accrued received from an associate company amounting to Rs. 16,246,726
(P.Y 23,771,806).
ii. Unclaimed dividend will be transferred to the Investor Protection
and Education Fund if remains unclaimed, in the year 2014-15.
10.1. Revaluation
The company has revalued its land and buildings at Trivandrum during
the year ended 31.03.2004, at the fair values determined by an
independent external valuer. The valuer determined the fair value by
reference to market-based evidence.
The revaluation resulted in an increase in the value of freehold land
and building by Rs. 1,09,39,354 and Rs. 17,50,486, respectively. The
revaluation of the building results an additional depreciation charge
of Rs. 58,466 every year. In accordance with the option given in the
Guidance Note on Accounting for Depreciation in Companies, the company
recoups such additional depreciation out of revaluation reserve.
10.2: Lease Hold Land
Land under Fixed Assets includes Rs.67.60 lacs being the value of land
allotted and possession handed over by KINFRA Film & Video Park
(KINFRA), a Government of Kerala Undertaking to the Company for
construction of building to house its operations for which the
registration formalities are yet to be completed. As per the agreement
with "the party" the said land is on a 90 year lease and has to be
developed within a period of 3 years from the date of allotment i.e. on
or before 05.04.2010. The said land could not be developed within the
time frame agreed on account of the difficult scenario being faced by
the Animation Industry in general and the company in particular.
KINFRA, in the meantime has changed the status of the SEZ from
Animation to include IT/ITES also. This has been approved by the
Ministry of Industries & Commerce vide its letter dated 7th February
2012. The company''s proposal to KINFRA to change our status to a co
developer is still pending.
10.3: Fixed assets, capital work in progress & Inventory of
intangible assets
The animation division of the company is engaged in the development of
Animation contents, which can be under a service /coproduction contract
or for creating its own IPR. The cumulative expenses incurred under
coproduction and IPR creation activities are carried forward under
capital work-in-progress, till the assets are ready for commercial
exploitation. The expenses incurred under service contracts are carried
forward as work in progress inventories till the milestone billing are
achieved. The following amounts are carried forward in the Accounts as
at the year end.:-
1. Under Fixed Assets & Capital work in progress (net of amortization)
Rs. 74,788,047 (Previous year Rs. 98,792,490)
10.4: Impairment of Assets
In the opinion of the management there is no impairment as on the date
of the balance sheet in the value of the carrying cost of fixed assets
of the company within the meaning of Accounting Standard - 28 on
Impairment of Assets issued under Companies (Accounting Standards)
Rules 2006, considering the revenue earning potential of the company
and based on the estimated future cash flows upon crystallization of
enquiries received b the company for the intellectual property rights
carried in the books as intangible assets.
The confirmation of balances from concerned parties in respect of major
accounts of sundry debtors, other receivables, loans and advances and
sundry creditors outstanding as at the year-end is yet to be received.
This also includes the revenue entitlement on the international
recoupment on one of its coproduction work completed.
11. Trade Receivables
Th confirmation of balances from concerned parties in respect of major
accounts of sundry debtors, other receivables, loans and advances and
sundry creditors outstanding as at the year-end is yet to be received.
This also inclueds the revenue entitlement on the international
recoupment on one of its production work completed.
12. Other current assets
1) In the opinion of the Directors, the current assets, loans and
advances have the value in which they are stated in the balance sheet,
if realized in the ordinary course of business.
2) Unbilled revenue represents amount recognized based on services
performed in advance of billing in accordance with contractual terms.
13. Exceptional items
During the previous year, The Company sold its Technology division
(''transferred division'') along with its subsidiary in United States of
America to Accel Frontline Limited, pursuant to a Business transfer
agreement w.e.f. August 15th, 2011 on a slump sale basis for a cash
consideration of Rs. 19.97 crores. The transaction was approved by the
Board of Directors on its meeting held on August 2nd, 2011. The profit
on sale of business of Rs. 1405.55 Lacs was credited to Profit and Loss
account as exceptional item.
As per the terms of the BTA to transfer the Technology division to
Accel Frontline Limited, the company received an additional amount of
Rs. 2 Crores as incentive on achievement of an EBITDA of Rs. 5 crores
for the twelve months ended 31st March 2012 as finalized by the audited
accounts of the said division.
Capitalization of expenditure
During the previous year, the company has capitalized certain expenses
to the cost of fixed asset classified under intangible assets/capital
work-in-progress (CWIP) being the expenses relatable to development of
such assets. Consequently, expenses disclosed under the respective
notes are net of amounts capitalized by the company. During the current
year there is no such capitalization.
Taxation:
Provision for current tax is made on the basis of the assessable Income
and/or Mat Provisions, at the tax rate applicable to the relevant
assessment year. No tax provision is made under normal as well under
MAT considering the brought forward losses of the company as a whole.
The deferred tax asset and deferred tax liability is calculated by
applying tax rate and tax laws that have been enacted or substantively
enacted by the Balance Sheet date The net Deferred Tax Asset at the
year end is not recognized as a matter of prudence.
Related Party Disclosures
Controlling Company - Accel Limited
Associates
Accel Frontline Limited
Accel IT Resources Limited
Key Management Personnel:
N R Panicker Non-Executive Chairman
K R Chandrasekaran Executive Director
S T Prabhu Company Secretary
Contingencies and commitments
(Rupees in Lacs)
March 31, March 31,
2014 2013
Outstanding bank guarantees/letter of Credits 1.10 1.10
Corporate Guarantee to a bank on behalf of an
Associate Company - 350.00
Income Tax Demands 136.11 136.11
Customs 33.87 33.87
PF & Others 21.07 21.07
Estimated amount of Contracts remaining to be executed on Capital
account and not provided for (Net of Advances) is Rs. Nil Lacs
(Previous year Rs. Nil Lacs)
It is not practicable for the company to estimate the timings of cash
flows, if any, in respect of the above pending resolutions of the
respective proceedings. The company does not expect any reimbursement
from third parties in respect of the above contingent liability.
Additional Information pursuant to Part II of Schedule VI of the
Companies Act, 1956, to the extent applicable.
(a) Number of Non Resident Shareholders and dividends paid to them. (On
payment basis)
Previous year''s figures have been regrouped, re-casted and rearranged
wherever necessary, to suit the current period layout. Vide our report
of even date.
Mar 31, 2013
Company Information:
Accel Transmatic Limited (the company) is a public limited company
domiciled in India and is listed in the Bombay stock exchange (BSE).
The company presently ofers animation services from its studios in
Chennai and Trivandrum.
1.1 Rights, preferences and restrictions attached to shares
Equity shares
The company has one class of equity shares having a par value of Rs. 10
each. Each shareholder is eligible for one vote per share held. In the
event of liquidation, the equity shareholders are eligible to receive
the remaining assets of the company after distribution of all
preferential amounts in proportion to their shareholding.
Preferential warrants
The company had issued 5,50,000 convertible warrants to a subscriber (
non promoter ) for a face value of Rs. 10/- each at a price of Rs 30.30
aggregating to Rs.16,665,000/- on December 31, 2010. The subscriber has
remitted Rs. 41,66,250 being 25% of the issue consideration. The Issue
was approved by the share holders in the EGM held on December 17, 2010.
As per the terms of the issue, each of these warrants are to be
converted into one Equity share of Rs. 10/- each at a price of Rs.30.30
each within a period of 18 months from the date of issue of warrants at
the option of the subscriber. The subscriber did not exercise the
option for such conversion before June 30, 2012 and hence the amount
remitted has been forfeited and transferred to Reserves and Surplus
account.
2.1. Details of Security : The term loan from bank is secured by
hypothecation of assets acquired out of that loan. The limits are
further secured by assignment of lease deposit in respect of leased
property at Trivandrum in favour of the bank. The loans are also
secured by a corporate guarantee of Accel Limited and pledge of
7,50,000 equity shares of Accel Transmatic Limited held by Accel
Limited, the holding company.
2.2 Terms of repayment: loans from related party carry an interest of
7.50% for the holding company and 13.75% for other associate companies
and are repayable in monthly installments of Rs. 500,000 . Term loan
from bank carries interest @ 17.50% p.a and the amount outstanding as
on the date of balance sheet is repayable in quarterly installment of
Rs 72,00,000 Public deposit carries interest @11% pa (P.Y 11%), and are
repayable after 3 years from the respective dates of acceptance of
deposits.
2.3. During the previous year the company had sold its technology
division to Accel Frontline Limited (AFL ). As per the terms of the
agreement the net assets of the division has been transferred to AFL
including the Term Loan & Cash Credit accounts with State Bank of India
pertaining to the division. However the confrmation received from the
bank includes the loans pertaining to the transferred division
amounting to Rs. 20,012,032.43 pending transfer of the loan & Cash
credit limit allocated to the technology division of AFL by the bank.
The company is pursuing with the bank for the transfer.
2.4 The company had defaulted in the payment of installments and
interest in respect of the secured loans taken from bank and
installment in respect of unsecured loans taken from holding and
associate companies. The details of the same are as under.
3.1 Dues to Micro, Small Enterprises
The company has initiated the process of identifying the suppliers who
qualify under the defnition of micro and small enterprises, as defned
under the Micro, Small and Medium Enterprises Development Act 2006.
Since no intimation has been received from the suppliers regarding
their status under the said Act as at 31st March 2013, disclosures
relating to amounts unpaid as at the year end, if any, have not been
furnished. In the opinion of the management, the impact of interest, if
any, that may be payable in accordance with the provisions of the Act
is not expected to be material.
4.1 Advances received includes Security deposit including interest
accrued received from an associate company for providing a corporate
guarantee to a bank amounting to Rs. 23,771,806 (P.Y 25,268, 776) .
4.2 Unclaimed dividend will be transferred to the Investor Protection
and Education Fund if remains unclaimed, in the year 2013-14 & 2014-15
respectively.
4.3 Revaluation
The company has revalued its land and buildings at Trivandrum during
the year ended 31.03.2004, at the fair values determined by an
independent external valuer. The valuer determined the fair value by
reference to market-based evidence.
The revaluation resulted in an increase in the value of freehold land
and building by Rs. 1,09,39,354 and Rs.17,50,486, respectively. The
revaluation of the building results an additional depreciation charge
of Rs.58,466 every year. In accordance with the option given in the
Guidance Note on Accounting for Depreciation in Companies, the company
recoups such additional depreciation out of revaluation reserve.
4.4 Lease Hold Land
Land under Fixed Assets includes Rs.67.60 lacs being the value of land
allotted and possession handed over by KINFRA Film & Video Park
(KINFRA), a Government of Kerala Undertaking to the
Company for construction of building to house its operations for which
the registration formalities are yet to be completed. As per the
agreement with " the party ", the said land is on a 90 year lease and
has to be developed within a period of 3 years from the date of
allotment i.e. on or before 05.04.2010,. The said land could not be
developed within the time frame agreed on account of the difcult
scenario being faced by the Animation Industry in general and the
company in particular. KINFRA , in the meantime has changed the status
of the SEZ from Animation to include IT/ITES also., This has been
approved by the Ministry of Industries & Commerce vide its letter dated
7th February 2012 . The company has submitted its proposal to KINFRA to
change our status to a co developer.
5.1 Fixed assets , capital work in progress & Inventory of intangible
assets
The animation division of the company is engaged in the development of
Animation contents, which can be under a service / co production
contract or for creating its own IPR. The cumulative expenses incurred
under co production and IPR creation activities are carried forward
under capital work-in-progress, till the assets are ready for
commercial exploitation. The expenses incurred under service contracts
are carried forward as work in progress inventories till the milestone
billing are achieved. The following amounts are carried forward in the
Accounts as at the year end.:- 1. Under Fixed Assets & Capital work in
progress (net of amortization) Rs.98,792,490 ( Previous year Rs.
130,414,971 )
5.2 Impairment of Assets
In the opinion of the management there is no impairment as on the date
of the balance sheet in the value of the carrying cost of fxed assets
of the company within the meaning of Accounting Standard  28 on
Impairment of Assets issued under Companies (Accounting Standards)
Rules 2006, considering the revenue earning potential of the company
and based on the estimated future cash fows upon crystallization of
enquiries received b the company for the intellectual property rights
carried in the books as intangible assets.
Note 6 : Exceptional items
During the previous year , The Company sold its Technology division
(Âtransferred division'') along with its subsidiary in United States of
America to Accel Frontline Limited, pursuant to a Business transfer
agreement w.e.f. August 15th, 2011 on a slump sale basis for a cash
consideration of Rs.19.97 crores. The transaction was approved by the
Board of Directors on its meeting held on August 2nd, 2011.. The proft
on sale of business of Rs. 1405.55 Lacs was credited to Proft and Loss
account as exceptional item.
As per the terms of the BTA to transfer the Technology division to
Accel Frontline Limited, the company received an additional amount of
Rs. 2 Crores as incentive on achievement of an EBITDA of Rs. 5 crores
for the twelve months ended 31st March 2012 as fnalized by the audited
accounts of the said division.
Note 7 Other Notes
7.1 Capitalization of expenditure
During the year, the company has capitalized the following expenses to
the cost of fxed asset classifed under intangible assets/ capital
work-in-progress (CWIP) being the expenses relatable to such assets.
Consequently, expenses disclosed under the respective notes are net of
amounts capitalized by the company.
7.2 Taxation:
Provision for current tax is made on the basis of the assessable Income
and /or Mat Provisions, at the tax rate applicable to the relevant
assessment year. No tax provision is made under normal as well under
MAT considering the brought forward losses of the company as a whole.
The deferred tax asset and deferred tax liability is calculated by
applying tax rate and tax laws that have been enacted or substantively
enacted by the Balance Sheet date The net Deferred Tax Asset at the
yearend amounts to Rs 14,235,609/- (Previous Year Asset Rs.
84,54,064/-) and is not recognized as a matter of prudence.
7.3 Related Party Disclosures
Controlling Company  Accel Limited
Subsidiaries & Associates under common control :
Accel Frontline Limited Accel IT Resources Limited Accel Media Ventures
Limited
Key Management Personnel:
N R Panicker Non Executive Chairman
Philip John Whole time Director Resigned WEF 14.08.2012
S T Prabhu Director WEF 14.08.2012
7.4 Contingencies and commitments
(Rupees in Lacs)
March 31,
2013 March 31, 2012
Outstanding bank guarantees /
letter of Credits 1.10 1.10
Corporate Guarantee to a bank on
behalf of an Associate Company @ 350.00 350.00
Income Tax Demands 136.11 135.95
Customs 33.87 33.87
PF & Others 21.07 26.87
@ The corporate guarantee was given to a bank for the limits enjoyed by
an associate company, Accel IT Resources Limited while it was a
subsidiary . This is backed by an interest bearing cash deposit of Rs.
230 Lakhs from the said company which is more than the exposure of that
company with the bank as on the date of the balance sheet..
Estimated amount of Contracts remaining to be executed on Capital
account and not provided for (Net of Advances) is Rs. Nil Lacs
(Previous year Rs.Nil Lacs)
It is not practicable for the company to estimate the timings of cash
fows, if any, in respect of the above pending resolutions of the
respective proceedings. The company does not expect any reimbursement
from third parties in respect of the above contingent liability.
Previous year''s fgures have been regrouped , recasted and rearranged
wherever necessary, to suit the current period layout.
Mar 31, 2012
Company Information:
Accel Transmatic Limited (the company) is a public limited company
domiciled in India and is listed in the Bombav stock exchange (BSE).
The company presently offers anima- tion services from its studios in
Chennai and Trivandrum.The company had demerged its technology business
to its group company M/s Accel Frontline Limited (AFL) effective August
15,2011 (refer note 23)
1.1 Measurement of EBITDA
As permitted by the Guidance Note on the Revised Schedule VI to the
Companies Act, 1956, the company has elected to present earnings before
interest, tax, depreciation and amortization (EBITDA) as a separate
line item on the face of the statement of profit and loss. The company
measures EBITDA on the basis of profit/ (loss) from continuing
operations. In its measurement, the company does not include
depreciation and amortization expense,finance costs and tax expense.
1.2 Presentation and disclosure of financial statements
During the year ended 31 March 2012, the revised Schedule VI notified
under the Companies Act 1956, has become applicable to the company, for
preparation and presentation of its financial statements. The adoption
of revised Schedule VI does not impact recognition and measurement
principles followed for preparation of financial statements. However,
it has significant impact on presentation and disclosures made in the
financial statements.The company has also reclassified the previous
year figures in accordance with the requirements applicable in the
current year.
2.1 Rights, preferences and restrictions attached to shares Equity
shares
The company has one class of equity shares having a par value of Rs. 10
each. Each shareholder is eligible for one vote per share held. The
dividend proposed by the Board of Directors is subject to the approval
of the shareholders in the ensuing Annual General Meeting, except in
case of an interim dividend. In the event of liquidation, the equity
shareholders are eligible to receive the remaining assets of the
company after distribution of all preferential amounts in proportion to
their shareholding.
Preferential warrants
The company had issued 5,50,000 convertible warrants to a subscriber
(non promoter) for a face value of Rs. 10/- each at a price of Rs 30.30
aggregating to Rs.16,665,000/- on December 31, 2010. The subscriber has
remitted Rs. 41,66,250 being 25% of the issue consideration. The Issue
was approved by the share holders in the EGM held on December 17,2010.
As per the terms of the issue, each of these warrants are to be
converted into one Equity share of Rs. 10/- each at a price of Rs.30.30
each within a period of 18 months from the date of issue of warrants at
the option of the subscriber. In case the subscriber does not exercise
the option for such conversion within the prescribed period, the amount
paid for, will be forfeited.The option has to be exercised on or before
June 30, 2012.
3.1 Going concern
The company has suffered cash losses from its operations during the
year, without considering the profit on transfer of its technologies
division. The accumulated losses as on the date ofthe balance sheet is
more than 50% of its net worth. However, considering the expected
future cash flows from the business and the intellectual property that
the company is currently exploiting through global sales , the
management is of the opinion that the company would be in a position to
continue as a going concern and hence the accounts have been drawn up
on such basis.
4.1. Details of Security: The term loan from bank is secured by
hypothecation of assets acquired out of that loan. The limits are
further secured by assignment of lease deposit in respect of leased
property at Trivandrum in favour ofthe bank.The loans are also secured
by a corporate guarantee of Accel Limited and pledge of 7,50,000 equity
shares of Accel Transmatic Limited held by Accel Limited, the holding
company.
4.2 Terms of repayment: loans from related party carry an interest of
13.75% p.a. and are repayable in monthly installments of Rs. 500,000,
beginning October 2012 .Term loan from bank carries interest @ 17.50%
p.a and the amount outstanding as on the date of balance sheet is
repayable in quarterly installment of Rs 72,00,000 lakhs . Hire
purchase loans carry an interest of 9% p.a and the amount outstanding
as on the date of balance sheet is repayable in 4 monthly installments
of Rs. 21,991 each. Public deposit carries interest @11% pa (P.Y
10%),and are repayable after 3 years from the respective dates of
acceptance of deposits.
4.3. During the year the company has sold its technology division to
Accel Frontline Limited (AFL) with effect from 15/08/2011 .As per the
terms ofthe agreement the net assets ofthe division has been
transferred to AFL including the Term Loan & Cash Credit accounts with
State Bank of India pertaining to the division. However the
confirmation received from the bank includes the loans pertaining to
the transferred division amounting to Rs. 2,12,59,363/- pending
transfer of the loan & Cash credit limit allocated to the technology
division of AFL by the bank.The company is pursuing with the bank for
the transfer.
Note:The above disclosures and the break up of liability into long term
and short term are based on valuation report of an independent actuary
and relied upon by the auditors
The Cash Credit limits, Term Loan Limits and Non Funded Limits (The
Limits) are secured by hypothecation of Intellectual property rights
and receivables and hypothecation of assets created out of bank finance
and carries interest @ 17.50% p.a and are repayable on demand.
The Limits are also secured by equitable mortgage of company's
immovable properties at Trivandrum & Chennai
The limits are further secured by assignment of lease deposit in favour
of the bank in respect of leased property at Trivandrum. The loans are
also secured by a corporate guarantee of Accel Limited and pledge of
7,50,000 equity shares of Accel Transmatic Limited held by Accel
Limited, the holding company. Also refer note 5.3.
5.1 Dues to Micro, Small Enterprises
The company has initiated the process of identifying the suppliers who
qualify under the definition of micro and small enterprises, as defined
under the Micro, Small and Medium Enterprises Development Act 2006.
Since no intimation has been received from the suppliers regarding
their status under the said Act as at 31 st March 2012, disclosures
relating to amounts unpaid as at the year end, if any, have not been
furnished. In the opinion of the management, the impact of interest, if
any, that may be payable in accordance with the provisions of the Act
is not expected to be material.
6.1 Advances received includes Security deposit including interest
accrued received from an associate company for providing a corporate
guarantee to a bank amounting to Rs. 25,268,776 (P.Y Rs. 22,936,562).
6.2 Unclaimed dividend will be transferred to the Investor Protection
and Education Fund if remains unclaimed, in the year 2012-13 & 2013- 14
respectively.
6.3 Revaluation
The company has revalued its land and buildings at Trivandrum during
the year ended 31.03.2004, at the fair values determined by an
independent external valuer.The valuer determined the fair value by
reference to market-based evidence.
The revaluation resulted in an increase in the value of freehold land
and building by Rs. 1,09,39,354 and Rs.17,50,486, respectively. The
revaluation ofthe building results an additional depreciation charge of
Rs.58,466 every year. In accordance with the option given in the
Guidance Note on Accounting for Depreciation in Companies,the company
recoups such additional depreciation out of revaluation reserve.
6.4 Lease Hold Land
Land under Fixed Assets includes Rs.67.60 lacs being the value of land
allotted and possession handed over by KINFRA Film & Video Park
(KINFRA), a Government of Kerala Undertaking to the Company for
construction of building to house its operations for which the
registration formalities are yet to be completed. As per the agreement
with" the party",the said land is on a 90 year lease and has to be
developed within a period of 3 years from the date of allotment i.e. on
or before 05.04.2010,. The said land could not be developed within the
time frame agreed on account ofthe difficult scenario being faced by
the Animation Industry in general and the company in particular.
KINFRA, in the meantime has changed the status ofthe SEZ from Animation
to include IT/ITES also., This has been approved by the Ministry of
Industries & Commerce vide its letter dated 7th February 2012 .The
company has submitted its proposal to KINFRA to change our status to a
co developer.
6.5 Fixed assets, capital work in progress & Inventory of intangible
assets
The animation division of the company is engaged in the development of
Animation contents, which can be under a service / co production
contract or for creating its own IPR. The cumulative expenses incurred
under co production and IPR creation activities are carried forward
under capital work-in-progress, till the assets are ready for
commercial exploitation. The expenses incurred under service contracts
are carried forward as work in progress inventories till the milestone
billing are achieved. The following amounts are carried forward in the
Accounts as at the year end.:- 1 .Under Fixed Assets & Capital work in
progress (net of amortization) Rs.130,414,971 ( Previous year
Rs.13,160,051 )
6.6 Impairment of Assets
In the opinion ofthe management there is no impairment as on the date
of the balance sheet in the value of the carrying cost of fixed assets
of the company within the meaning of Accounting Standard - 28 on
Impairment of Assets issued under Companies (Accounting Standards)
Rules 2006. Considering the revenue earning potential of the company
and based on estimates, of the cash generation unit of the company.
The Company has sought for confirmation of balances from concerned
parties in respect of major accounts of sundry debtors, other
receivables, loans and advances and sundry creditors outstanding as at
the year-end, which, however is received in some of the cases.
1) In the opinion of the Directors, the current assets, loans and
advances have the value in which they are stated in the balance sheet,
if realized in the ordinary course of business.
2) Unbilled revenue represents amount recognized based on services
performed in advance of billing in accordance with contractual terms.
Note 7: Exceptional items
The Company sold its Technology division ('transferred division') along
with its subsidiary in United States of America to Accel Frontline
Limited, pursuant to a Business transfer agreement w.e.f. August 15th,
2011 on a slump sale basis for a cash consideration of Rs.19.97
crores.The transaction was approved by the Board of Directors on its
meeting held on August 2nd, 2011. As per the terms of the above said
BTA, the company is eligible for an additional amount upto Rs.2 Crores
as incentive if the said division achieves an EBITDA of Rs. 5 crores
for the twelve months period ended 31st March 2012 as finalized by the
audited accounts of the said division. Since the audit of the accounts
and approval /adoption of the same by the Board of Directors of Accel
Frontline Limited has not been completed as on date of finalization of
this company's accounts, the company has not recognized any amounts
towards the incentive for the year ended 31st March 2012.
During the previous year , the company divested 100000 equity shares of
Rs. 10 each representing 10% of Share Capital of Accel IT Resources
Limited (Formerly Accel Academy Limited) for a consideration of Rs. 120
Lakhs.The profit on sale of investments of Rs.60 Lacs was credited to
Profit $nd Loss account as exceptional item.
Capitalization of expenditure
During theyear.thecompany has capitalized thefollowing expenses to the
cost of fixed asset classified under intangible assets/ capital
work-in-progress (CWIP) being the expenses relatable to such assets.
Consequently, expenses disclosed under the respective notes are net of
amounts capitalized by the company.
Taxation:
Provision for current tax is made on the basis of the assessable Income
and /or Mat Provisions, at the tax rate applicable to the relevant
assessment year. No tax provision is made under normal as well under
MAT for the income arising out of the discontinued business considering
the brought forward losses of the company as a whole. The deferred tax
asset and deferred tax liability is calculated by applying tax rate and
tax laws that have been enacted or substantively enacted by the Balance
Sheet date The net Deferred Tax Asset at the yearend amounts to Rs
84,54,064/- (Previous Year Asset Rs.1, 14,83,124) and is not recognized
as a matter of prudence.
Related Party Disclosures Controlling Company - Accel Limited
Subsidiaries & Associates under common control:
Accel Frontline Limited
Accel Frontline Services Limited
Accel IT Resources Limited
Accel Media Ventures Limited
Accel North America Inc - Subsidiary Upto 15.08.2011
Accel Systems Group Inc.
Key Management Personnel:
N R Panicker Non Executive Chairman
Philip John Whole time Director
@ The corporate guarantee was given to a bank for the limits enjoyed by
an associate company, Accel IT Resources Limited while it was a
subsidiary .This is backed by an interest bearing cash deposit of Rs.
230 Lakhs from the said company which is more than the exposure of that
company with the bank as on the date ofthe balance sheet..
Estimated amount of Contracts remaining to be executed on Capital
account and not provided for (Net of Advances) is Rs. Nil Lacs (Previ-
ous year Rs.144.68 Lacs)
It is not practicable for the company to estimate the timings of cash
outflows, if any, in respect of the above pending resolutions of the
respective proceedings.The company does not expect any reimbursement
from third parties in respect ofthe above contingent liability.
Previous year's figures have been regrouped, recasted and rearranged
wherever necessary, to suit the current period layout.
Mar 31, 2010
1. Inter Segment Transfer Pricing
Segment Revenue resulting from transactions with other business
segments is accounted on the basis of transfer price agreed between the
segments. Such transfer prices are either determined to yield a desired
margin or agreed on a negoti- ated basis.
(2) Accounting for provisions, contingent liabilities & contingent
assets
A provision is recognized where the enterprise has a present obligation
as a result of past event and is probable that an outfow of resources
will be required to settle the obligation in respect of which a
reliable estimate can be made. Provisions are not discounted to its
present value and are determined based on management estimate required
to settle the obli- gation at the Balance Sheet date. These are
reviewed at each Balance Sheet date and adjusted to refect the correct
Man- agement estimates.
Contingent Liabilities are disclosed by way of notes to the Balance
Sheet. Provision is made in the accounts in respect of those
liabilities which are likely to materialize after the year- end, till
the fnalization of accounts and have material effect on the position
stated in the Balance sheet.
Contingent Assets are not recognized in the fnancial state- ments as a
matter of prudence.
3.1 Impairment of assets
In the opinion of the Management based on estimates of the value in use
of the various cash generating units of the company, there is no
impairment in the value of the carrying cost of fxed assets of the
company within the meaning of Ac- counting Standard à 28 on Impairment
of Assets issued under Companies (Accounting Standards) Rules 2006.
3.2 Current assets, loans and advances
(a) The Company has sought for confrmation of balances from concerned
parties in respect of major accounts of sundry debtors, loans and
advances and sundry creditors outstand- ing as at the year-end, which,
however is received in some of the cases.
(b) During the year, the company entered into an agreement with Kahani
world Inc. Canada to acquire the IPR à Raju, the rick- shawà under a 15
year license for further development and ex- ploitation as 78 X 7
minute episodes for worldwide TV broad- cast. The company felt there is
a potential to develop this into a large product and the Canadian
company was not having immediate plans to develop this further. The
Digital content was earlier being developed as 7 X 7 minutes episodes
for DVD under a co production agreement with them and the company. The
company had raised an invoice on them for Rs.142 lacs. Consequent to
the acquisition of this IPR, the com- pany has carried forward this
amount due from Kahani World including further development cost
incurred as Capital Work in Progress. The amount so far incurred by
Kahani world inc in developing this property is to be treated as their
share of pro- duction cost to be recouped by them at an agreed percent-
age of the revenue over the period of 15 years on commercial
exploitation of this Digital Asset.
(c) In the opinion of the Directors, the current assets, loans and
advances have the value in which they are stated in the bal- ance
sheet, if realized in the ordinary course of business.
(d) Bank balances include Rs. 45.55 Lacs In Current account & De- posit
accounts in respect of Systems & Services Division (SSD) business
transferred w.e.f 1st April 2009 as stated in note no. 21.8 below,
which is yet to be transferred in the transfereeÃs name by the Bank as
at the year end.
3.3 Taxation
(A) Current taxes
Provision for current taxes have been made on the basis of completed
assessments and in other cases on the basis of re- turn fled /
management computation.
3.4 Investments
Provision has been made for the diminution in the value of long-term
investments to the extent considered doubtful by the management. In the
opinion of the management the diminution in net worth of the subsidiary
in United States of America is considered to be temporary in nature on
account of the future business potential of the company and hence no
provision is considered necessary at this stage.
3.5 Preferential warrants
The company had, during the year ended 31.03.2008, issued 25,50,000
convertible warrants of Rs. 10/- each at a premium of Rs 23 aggregating
to Rs.8, 41,50,000/-. on payment of 10% of the aggregate amount
payable. As per the terms of the is- sue, each of these warrants are to
be converted into one Eq- uity share of Rs. 10/- each at a premium of
Rs.23/ each within a period of 18 months from the date of issue of
warrants at the option of the subscribers. In case any subscriber did
not exer- cise the option for such conversion within the prescribed pe-
riod, the amount paid for was to be forfeited. As no subscriber
exercised the option within the prescribed period, the amount received
as advance of Rs. 84,15,000 has been forfeited during the year and
carried to Capital Reserve under Reserves and Surplus.
3.6 Secured loans
A. The Federal Bank Limited:
The unexpired Bank Guarantees issued by the bank and out- standing at
the year end amounting to Rs.12.42 lacs is secured by counter guarantee
by the company and also by way of a corporate guarantee of Accel
Limited.
B. The State Bank of India:
a) The Cash Credit limits, Term Loan Limits and Non Funded Limits ( The
Limits ) are secured by hypothecation of Raw Materials, Semi fnished
goods , fnished goods, Intellectual property rights and receivables and
hypothecation of assets created out of bank fnance.
b) The Limits are also secured by equitable mortgage of com- panyÃs
immovable properties at Trivandrum & Chennai
c) The limits are further secured by assignment of lease de- posits
with Chennai & Trivandrum Landlords. The loans are also secured by
Corporate Guarantee of Accel Limited and pledge of 750000 shares of
Accel Transmatic Limited held by Accel Limited.
d) Secured loans include Rs. 502.92 lacs being Cash credit availed from
State Bank of India for Systems & Services Divi- sion of the company
which was hived off and sold during the year as stated in note no.
21.8. The transaction in the bank ac- count for the year refects the
transactions of erstwhile Sys- tems & Services Division. The Cash
Credit account has since been closed.
C. Hire purchase loans
Hire Purchase loans are secured by hypothecation of the fxed assets
acquired out of such loans.
3.7 (a) Contingencies and commitments
(Rupees in Lacs)
March 31, 2010 March 31, 2009
Outstanding bank guarantees / letter 148.15 129.19
of Credits - $
Corporate Guarantee to a bank on 350.00 200.00
behalf of an Associate Concern @
Claims Against the company not Nil 4.20
acknowledged as debts.
Sales tax Demands Nil Nil
Others 21.67 13.76
$ Includes Rs.147.05 being Guarantees / Letter of Credits issued by
banks on behalf of Systems and Services division (sold as of
01.04.2009) which is yet to be transferred in their name.
@ Also, Counter guaranteed by M/s Accel Limited.
(b) Estimated amount of Contracts remaining to be executed on Capital
account and not provided for (Net of Advances) is Rs. 24.66 Lacs
(Previous year Rs.Nil)
3.8 Exceptional Items
(a) During the year the company, pursuant to the approval of the
members by way of a special resolution by postal ballot, transferred
its Systems & Services Division carrying a Net As- set Book Value of
Rs.788.30 Lacs as on April 1st 2009, to Accel Frontline Services Ltd
with effect from 01.04.2009, on a slump sale basis for a total
consideration of Rs 927.29 Lakhs. The prof- it on sale of the Systems &
Services division representing the sale consideration over and above
the net asset value adjust- ed in the books of accounts as on 01st
April 2009 amounting to Rs. 138.99 lacs (net of tax Rs.138.99 lacs) is
credited to proft and loss account as Ãproft on transfer of BusinessÃ.
The details of the assets and liabilities transferred are as follows:
(b) During the year the company divested 390000 equity shares of Rs. 10
each representing 39% of investment in Accel IT Resources Limited
(Formerly Accel Academy Limited) for a consideration of Rs. 468 Lakhs,
as per the decision taken by the board of directors in its meeting held
on 31.10.2009. Con- sequent to this sale, Accel IT Resources Limited
ceased to be a associate of this company with effect from 01.10.2009.
The proft on sale of investments of Rs.234 Lacs (Previous year Nil) has
been credited to Proft and Loss account.
(c) The company during the year sold 60 Equity Shares held in its
subsidiary Accel Solutions Inc, Japan for a consideration of Rs.3.64
Lacs. The resultant loss on such disinvestment amount- ing to Rs.7.94
Lacs is recognized in the Proft & Loss account.
3.9 (a) Payment to Directors
Details of managerial remuneration u/s 198 ( Minimum remuneration
within the limits of schedule XIII to the Companies Act payable to
whole time Directors.)
3.10 Dues to micro, small & medium enterprises
The company has initiated the process of identifying the sup- pliers
who qualify under the defnition of micro and small en- terprises, as
defned under the Micro, Small and Medium En- terprises Development Act
2006. Since no intimation has been received from the suppliers
regarding their status under the said Act as at 31st March 2010,
disclosures relating to amounts unpaid as at the year end, if any, have
not been furnished. In the opinion of the management, the impact of
interest, if any, that may be payable in accordance with the provisions
of the Act is not expected to be material.
3.10 Segmental reporting
Geographical Segment: The management has identifed the following
geographical segments as its secondary reporting segments.
D) Related parties with whom transactions have taken place during the
year:
Subsidiaries & Associates:
1. Accel North America Inc - Subsidiary
2. Accel IT Resources Limited - $
3. Accel Limited - $
4. Accel Systems Group Inc. - $
5. Accel Frontline Services Limited - $
6. Accel Frontline Limited à Group Company $ Entities under common
control.
E) Key Management Personnel:
N R Panicker Chairman
Philip John Whole time Director
3.11 Employee Benefts
a) Consequent to Accounting Standards 15 of Companies (Accounting
Standards) Rules, 2006 becoming effective, the company has adopted the
said standard with effect from 1st April 2007. In the absence of
balance in Reserves and Surplus as on that date, the difference in
opening liability computed in accordance with the revised standard
amounting to Rs.21.15 lacs is being expensed on a straight line basis
over a period of fve years from that date. The balance amount remaining
unrecognized as on 31st March 2009 is Rs.8.46 lacs. The Amount
recognized in the accounts of the current year is Rs.4.23 lacs.
b) Disclosure required under AS15 Ã "Employee Benefts" (Revised 2005)
1. Defned Contribution Plan
During the year, the company has recognized in the Proft and Loss
Account, an amount of Rs.29.42 lacs (Previous Year Rs.48.28 lacs) on
account of defned contribution towards Provident Fund and Rs.3.88 lacs
(Previous Year 8.84 lacs) towards Employees State Insurance Scheme.
* The assumption of future salary increases takes into account of
infation, seniority, promotions and other relevant factors such as
supply and demand in the employment market.
Note: The above disclosures are based on valuation report of an
independent actuary and relied upon by the auditors.
* The assumption of future salary increases takes into account of
infation, seniority, promotions and other relevant factors such as
supply and demand in the employment market.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article
మరింత సమాచారం ACCEL Ltd.
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ACCEL Ltd. టూల్స్
- బల్క్ డీల్స్
-
ACCEL Ltd. కంపెనీ వివరాలు
- కంపెనీ ప్రొఫైల్
- కంపెనీ చరిత్ర
- నిర్వహణ బృందం
- క్యాపిటల్ స్ట్రక్చర్
- ప్రొడక్ట్ మిక్స్
- బ్యాంకర్/ఆడిటర్/రిజిస్ట్రార్
-
కంపెనీ చరిత్ర
- బిఎస్ఇ ధర చరిత్ర
-
ACCEL Ltd. ముఖ్య ఆర్థిక నిష్పత్తులు
- నిష్పత్తులు
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ACCEL Ltd. ఫలితాలు
- క్వార్టర్లీ ఫలితాలు
- హాఫ్ ఇయర్లీ ఫలితాలు
- 9నెలల ఫలితాలు
- వార్షిక ఫలితాలు
-
ACCEL Ltd. ఆర్థిక డేటా
- ఆడిట్ ఫలితాలు
- క్యాష్ ఫ్లో
- బ్యాలెన్స్ షీట్
-
ACCEL Ltd. నివేదికలు
- అకౌంటింగ్ విధానాలు
- ఆడిటర్స్ నివేదిక
- డైరక్టర్స్ నివేదిక
- ఖాతాకు గమనికలు
-
ACCEL Ltd. కార్పొరేట్ ప్రకటనలు
- బుక్ క్లోజర్
- డివిడెండ్
- బోర్డు సమావేశాలు
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