| 1. Corporate Information:
PALCO Limited (Formerly known as Pennar Aluminium Company Limited) is
not carrying any activities/operations as the company sold all its
fixed assets to ARCIL at the time of takeover by the ARCIL. The company
is having registered office situated at Flat No.501, Sri Ramchandra
Residency, Madhapur Road, Kothaguda, Kondapur, Hyderabad - 500 084.
2. Retirement and other employee benefits
(i) Retirement benefit in the form of Provident Fund is a defined
contribution scheme and the contributions are charged to the Statement
of Profit and Loss of the year when the contributions to the respective
funds are due. There are no other obligations other than the
contribution payable to the provident fund.
(ii) Gratuity liability is defined benefit obligation and is provided
for on the basis of an actuarial valuation on projected unit credit
method made at the end of each financial year.
(iii) Short term compensated absences are provided for based on
estimates. Long term compensated absences are provided for based on
actuarial valuation. The actuarial valuation is done as per projected
unit credit method.
(iv) Actuarial gains/losses are immediately taken to statement of
profit and loss.
(v) The company presents the entire leave as a current liability in the
balance sheet, since it does not have an unconditional right to defer
its settlement for 12 months after the reporting date.
3. Income tax
Tax expense comprises of current and deferred tax. Current income tax
is measured at the amount expected to be paid to the tax authorities in
accordance with the Indian Income Tax Act, 1961. Deferred income taxes
reflects the impact of current year timing differences between taxable
income and accounting income for the year and reversal of timing
differences of earlier years.
Deferred tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the balance sheet date. Deferred
tax assets are recognized only to the extent that there is reasonable
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realized.
4. Provisions
A provision is recognized when the company has a present obligation as
a result of past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation.
Provisions are not discounted to their present value and are determined
based on the best estimate required to settle the obligation at the
reporting date. These estimates are reviewed at each reporting date and
adjusted to reflect the current best estimates.
5. Terms and Rights attached to Equity Shares
The Company has only one class of Equity shares having value of Rs.10
per share. Each holder of Equity shares is entitled to one vote per
share.
At the time of ARCIL taking over the assets of the Company an amount of
Rs.4,85,61,794/- were appropriated and kept in current account for
redemption of 4,71,510 debentures of Rs.100/- each held by public. The
said Debentures are secured by way of lien on the current account
balance. During the year, the company has redeemed 4,240 debentures for
an amount of Rs. 4,36,741 (2,64,495 debentures for an amount of Rs.
2,72,41,130 up to the year) The balance amount of Rs. 2,13,20,664
relating to 2,07,035 debentures was transferred to investor education
and protection fund on 15.06.2013, in compliance with the provisions of
the companies act, 1956
6. Contingent Liabilities
S.No Particulars As at 31 March, 2014
i) Claims pending against 230,200,000
the Company
S.No Particulars As at 31 March, 2013
i) Claims pending against 230,200,000
the Company
The contingent liability of Rs.2,302 Lakhs is the claim by NALCO
(Sundry Creditor of the Company),before the Arbitrator, on account of
interest, damages and opportunity loss against the Company on the bill
amount of Rs. 3439.43 lakhs. Also, a claim for Rs. 2200 Lakhs made by
the Company, against NALCO, is pending before the Arbitrator.
7. Deferred Tax
In the absence of convincing evidence regarding availiability of
sufficient taxable income in near future against which the deferred tax
asset can be adjusted, the Company has not recognised the deferred tax
asset arising due to tax effect of timing differences at present.
8. Previous year's figures have been regrouped and / or rearranged
wherever necessary and figures have been rounded off to the nearest
rupee.
9. Notes 1 to13 form part of financial statements and have been
authenticated.
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