The Company has only one class of equity shares having a par value of' 10 per share. Each Shareholder is eligible for one vote per share held. The company declares dividends in Indian rupees. In case the dividend proposed by the board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive in proportion to their shareholding, the assets of the Company remaining after distribution of preferential amount
* The Company has given undertaking to certain financial institutions not to dispose off these investments without their prior consent till the loans sanctioned by them to the investee companies remain outstanding.
# Companies under the same management.
** During the previous year, the Company has given undertaking to a bank not to dispose, transfer, pledge charge or create a lien on the existing or future shares of Akla Investments private Limited (Mauritus), till the financial assistance granted by the bank in the form of bank guarantee in favour of an associate company remains due and outstanding.
2. OVERVIEW
Samtei India Limited which commenced operations in the year 1983, manufacture picture tubes for black & white televisions, trades color television tubes and supplies skilled and unskilled manpower. It is listed on the National Stock Exchange of India and Bombay Stock Exchange of India. The corporate office is situated in New Delhi.
3. CONTINGENT LIABILITIES AND COMMITMENTS
Contingent Liabilities not provided for in respect of:
(FIGURES IN Rs.)
Description Current Year Previous Year
b) Income Tax demands where the cases are 2,76,71,668 2,76,71,668 pending at various stages of appeal with the authorities
c) Sales Tax Demand where the case are pending 36,20,500 36,20,500 before assessing officer after remand from Joint commissioner Sales Tax.
4. In the opinion of the Board, Current Assets, Loans and Advances have a value on realization in the ' ordinary course of business at least equal to the amount at which they are stated and provision for all known liabilities has been made and considered adequate.
5. Taxation
The Company has carried forward losses/unabsorbed depreciation under the income tax Act, 1961. However, in view of uncertainty of future taxable income of the Company, in accordance with Accounting Standard AS-22" Accounting for Taxes on Income" notified in the Companies Accounting Standard Rule 2006, the net deferred tax assets have not been recognized in the accounts.
6. The Company has already started the process of identifying the Micro, Small and Medium Enterprises as defined under the "The Micro, Small and Medium Enterprises Development Act, 2006". However, based on the information available with the Company as of now, no enterprises have been identified, who are registered under the said Act.
7. The management has recognized a permanent diminution in the value of the investments in Samtel Colors Limited (SCL) thereby the investment value has been reduced by Rs. 21,91,140 (previous year Rs. 36,12,420) and Samtel Glass Limited (SGL) by Rs. Nil (previous year Rs. 1,28,64,000). In current year diminution in value of long term investment of SGL has not been done as in the view of the company, the SGL is in the process of selling its Land and Building and the discussions for disposal are in advance stage. The management is also of the view that the realization value of Land will be much higher after setting off all its liabilities, Hence, the value of long term investment of SGL does not require any diminution. In case of Samtel Color Limited, the above figures has been arrived as a difference between book value and market value of the shares of Company and in case SGL diminution has been derived as a difference between book value and average of the three years net worth of the Company (in the previous year).
8. Disclosure as required by Accounting (AS-17) 'Segment Reporting':
Based on the gulding principles in Accounting Standard AS17"Segment Reporting" Notified in the Companies (Accounting Standard) Rule 2006, the Company's only business segment during the year relates to "Supply of manpower" In India. As a result the additional disclosure requiements of AS-17 are not required.
9. Disclosures as required by Accounting Standard (AS-18) 'Related Party Disclosures':
A. List of Related Parties and Relationships
SI. Nature of Relationship Name of Related party No.
a Related parties where control None exists
b Key Management Personnel Satish K Kaura
(i) Associates a) Samtel Machines & Projects Limited
* b) Akla Investment Private Limited
10. After the cessation of plant (Black and White pictures for Black and white TV Sets), Samtel India limited had, aimed to commence its operation in trading of color picture tubes, however such proposal could not be established/executed, due to low market demand. The management of Samtel India Limited has a strong believe in entering into new segment therefore it entered into the business for supplying manpower to manufacturing unit, (especially to picture tube manufacturing units). Since the demand of Cathode Ray Tube has sharply declined, the business of manpower supply has been adversely affected. In the earlier the Company is continuing with & simultaneously exploring various new opportunities, like supply of manpower to manufacturing unit ( especially to picture tube manufacturing units) and in exploration evaluated the manufacturing possibilities & for that intended to acquire suitable property also, but could not succeed due to continuous recession and liquidity problem, Now the Company planning to do trading activity and for that taking requisite steps for obtaining necessary statutory / legal approvals. In view this, the management has prepared and maintained its books of accounts on the concept of "going concern".
11. Due to the accumulated losses the entire net worth of the Company has been eroded at the end of financial year 2013-14. The management is in the process of seeking legal opinion regarding the applicability of provision of Sick Industrial Companied(Special Provision) Act,1985 and necessary step will be initiated accordingly
12. During the previous year ended on 31st March 2011, the Company has made reconciliation of Provident Fund Trust with the Company's books. On reconciliation, it was found that the value of the assets was less than the obligation of provident fund by Rs. 44,87,356/-. This is basically the interest liability of the balance outstanding of provident fund as at 31st March 2011. The balance outstanding as at 31.3.2015 is Rs. 17,82,871.
13. In earlier years, the Company has given security in the form of pledge upto Rs. 59 lacs fully paid up equity shares of Rs.10 each of Samtel Color Limited (SCL) held by the Company in favor of the bank acting as trustee for itself and as agent for other lenders of SCL as per the Corporate Debt Restructuring (CDR) Scheme of SCL as approved by CDR Cell of RBI, as it has major investment in SCL and in view of the management it would add long term value to the Company.
14. Unpaid portion in share premium, calls in arrears on equity share issued in earlier years was ascertained on reconciliation during the previous year, ended as at 31st March 2012.
15. The estimated useful lives of the fixed assets have been revised in accordance with Schedule II to the Companies Act 2013, with effect from 1st April, 2014. Pursuant to these changes in useful lives, the depreciation expense for the Year ended 31st March 2015 is increased by Rs. O.O8Lacs
16. Current year financial statements are prepared as per Accounting Standard prescribed under section 133 read with rule 7 of Companies (Accounts) Rules, 2014 and relevant provisions of Companies act 2013 and previous year financial statement were prepared as per relevant provisions of the Companies Act, 1956 (refer General circular 08/2014 dated 04/04/2014 of the Ministry of Corporate Affairs for applicability of relevant provisions/ schedules/ rules of the Companies Act, 1956 for the financial statements prepared for the financial year commenced earlier than 01.04.2014) and the provisions of the Companies Act, 2013 (to the extent applicable).
17. There is no other information apart from the information already disclosed pursuant to the relevant clauses of new schedule VI as inserted in the Companies Act, 1956 by the Notification- S.O. 447(E), dated 28th February 2011 (As amended by Notification No F.NO. 2/6/2008-CL-V, Dated 30th March'2011).
18. Previous year figures have been regrouped / rearranged wherever necessary to conform to this year's classification.