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NOTES TO ACCOUNTS

ACCEL Ltd.

You can view the entire text of Notes to accounts of the company for the latest year
Market Cap. (₹) 48.51 Cr. P/BV 1.24 Book Value (₹) 6.85
52 Week High/Low (₹) 11/3 FV/ML 2/1 P/E(X) 11.54
Bookclosure 25/06/2018 EPS (₹) 0.74 Div Yield (%) 4.70
Year End :2015-03 
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.

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