| 1. Cash and Cash Equivalents represent Cash, Balances with Banks
In Current Account and Fixed Deposits
2. Figures in brackets indicate Cash flow
3. Figures for the previous year have been regrouped / rearranged
wherever found necessary
4. Shares held by holding company, its subsidiaries and associates
The company does not have any holding company.
5. Rights, preferences and restrictions attached to equity shares
The company has one class of equity shares having a face value of ' 1/-
per share. Each shareholder is eligible for one vote for each share
held in the company. The dividend proposed by the Board of Directors is
subject to approval of the shareholders in the ensuing Annual General
Meeting, except in case of 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.
6. The general economic slowdown has affected the telecom industry. The
late auction of spectrum by government and the slowdown of 3G and 4G
technologies have not brought cheer to the telecom industry. The
non-payment of government receivables has resulted into substantial
erosion of the Company's net worth and the Company has incurred cash
losses. The Company continues to take various measures such as cost
optimisation, improving operating efficiency, renegotiation of
contracts with customers to improve Company's operating results and
cash flows. Further the management believes that new spectrum auction
will result in exponential growth in 3G 4G & LTE which are expected to
generate incremental cash flows to the Company. In view of the above
mentioned factors, the Company continued to prepare its Financial
Statements on going concern basis.
7. Contingent liabilities
There are some on-going litigations against the company for the
contractual liabilities The monetary value of the aforesaid litigations
could not be quantified and the contingent liabilities, which may arise
thereto, also could not be determined.
The management of the company retains the litigations stated above
shall not have any material/financial impact on Company.
8. Impairment of Assets
As required Under Accounting Standard -28 "Impairment of Assets" the
carrying amount of an asset exceeds its recoverable amount and value in
use, and hence provision for impairment loss of Rs.974.30 Lakhs , has
been provided in the financial statements.
9. Inventory Write off
Inventories worth of Rs. 4088.49 Lakhs have lost its potential of
realisation and the cost of maintenance of the said inventories had
imposed continual burden on the Company. Therefore, the inventories
have been written off as per company's policy.
10. DEFERRED TAX LIABILITY
The provision for deferred tax liability for the year ended March 31,
2015 has been made in accordance with Accounting Standard 22 on
Accounting for Taxes on Income. The Deferred Tax Liability as at March
31, 2015 is on account of Depreciation of Rs. 635.76 Lakhs and the
Deferred Tax Liability as at 31st March, 2015 is Rs.65.91 Lakhs.
11. LEASE
All operating leases entered into by the company are cancellable on
giving a notice of one to three months.
12. Investment details of plan assets:
The Plan assets are maintained by Life Insurance Corporation Gratuity
Scheme. The details of investment maintained by Life Insurance
Corporation are not available with the company and have not been
disclosed.
As per the policy of the company employees are not entitled for leave
encashment.
PF & ESI expenses are recognized in the accounts at the actual cost to
the company which is deposited with the appropriate Government
authorities. Apart from this contribution, the company has no other
obligation to provide for in the books.
13. SEGMENT REPORTING
The entire operations of the company relates to one segment viz.,
network product and services.
TRANSACTIONS WITH RELATED PARTIES:
Key Management Personnel
* R. Ramkumar - Whole-time Director
* B. Sreekrishna - Project Director
* R. Vijaykumar - Managing Director
* B. Srinivasan - Chief Technology Officer
Subsidiary & Associate Companies
*Gemini Traze RFID Private Limited (RFID) (100% Subsidiary)
* Point Red Telecom Limited (Pointred) (100% Subsidiary)
* Gemini Infotech Limited, Hong Kong (100% Subsidiary)
* PR Wireless Tech Limited, Hong Kong (100% Subsidiary of Pointred)
* Gemini FTZ, Dubai (100% Subsidiary)
* Gemini Geoss Energy Private Ltd ( 100% Subsidiary)
14. Figures for the previous year have been regrouped wherever
necessary to conform to the current year's classification
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