Regd. Office : 28, Khan Manzil, Calicut Street, Opposite Fort Market, Fort, Mumbai - 400 001.
| Audited | Audited | Audited | Audited | |
| Particulars | Year ended 31.03.10 | Year ended 31.03.09 | Consolidated Financial Results Year ended 31.03.10 |
Consolidated Financial Results Year ended 31.03.09 |
| Net Income From Operations / Services | 19,620.89 | 22,357.07 | 19,739.16 | 22,357.07 |
| Other Operating Income | - | - | - | - |
| Total Income | 19,620.89 | 22,357.07 | 19,739.16 | 22,357.07 |
| Network Operation Expenditure | 7,882.88 | 6,687.14 | 7,882.88 | 6,687.14 |
| Interconnect Usage Charges | 3,139.90 | 4,649.58 | 3,139.90 | 4,649.58 |
| Cost of Goods Sold | - | - | 146.99 | - |
| Personnel Cost | 4,587.10 | 4,821.62 | 4,549.16 | 4,817.79 |
| Sales & Marketing Expenditure | 913.15 | 1,549.97 | 913.15 | 1,549.97 |
| Administrative & Other Expenses | 3,117.11 | 2,876.11 | 3,125.61 | 2,890.76 |
| Depreciation and Amortisation | 9,501.65 | 9,917.36 | 9,564.50 | 9,917.36 |
| Total Expenditure | 29,141.79 | 30,501.78 | 29,322.19 | 30,512.60 |
| Operating Profit before Finance Cost, Loss/ (Gain) on sale/discard of Fixed Assets, Diminution in value of Investments, Foreign exchange (Gain) / Loss, Exceptional items and Other Income | (9,520.90) | (8,144.71) | (9,583.03) | (8,155.53) |
| Other Income | 160.71 | 138.55 | 160.88 | 138.55 |
| Operating Profit before Finance Cost, Loss/ (Gain) on sale/discard of Fixed Assets, Diminution in value of Investments, Foreign exchange (Gain) / Loss and Exceptional items | (9,360.19) | (8,006.16) | (9,422.15) | (8,016.98) |
| Diminution in value of Investments | - | 7,176.71 | - | 6,996.71 |
| (Gain) on sale of Fixed Assets | (143.05) | (3,372.35) | (143.05) | (3,372.35) |
| Loss on Discarded Fixed Assets | 190.04 | 1,552.97 | 190.04 | 1,552.97 |
| Interest & Finance Cost | (7,042.36) | 6,782.94 | (7,041.36) | 6,782.94 |
| Foreign exchange (Gain) / Loss | (346.14) | 1,067.61 | (346.14) | 1,067.61 |
| Profit/(Loss) before Prior Period Expenditure and Tax from ordinary activities | (2,018.68) | (21,214.04) | (2,081.64) | (21,044.86) |
| Prior Period Expenditure (Net) | 45.81 | 206.62 | 45.81 | 134.50 |
| Profit / (Loss) from ordinary activities before Tax | (2,064.49) | (21,420.66) | (2,127.45) | (21,179.36) |
| Deferred Tax Liability / (Assets) | - | - | (6.22) | (3.54) |
| Fringe Benefit Tax | - | 52.29 | - | 52.44 |
| Net Profit / (Loss) from ordinary activities after tax | (2,064.49) | (21,472.95) | (2,121.23) | (21,228.26) |
| Extraordinary items | - | - | - | - |
| Net Profit / (Loss) for the period | (2,064.49) | (21,472.95) | (2,121.23) | (21,228.26) |
| Profit on Disposal of Investment in Subsidiary Company | - | - | - | 1,650.84 |
| Net Profit / (Loss) Including share of Profit / (Loss) of Associate company and Profit on Disposal of Investment in Subsidiary Company | (2,064.49) | (21,472.95) | (2,121.23) | (19,577.42) |
| Paid up Equity Share Capital (Face Value - Rs. 10 each) | 61,226.03 | 52,551.72 | 67,726.03 | 52,551.72 |
| Advance against Share Application Money | - | 8,674.31 | - | 8,674.31 |
| Reserves excluding Revaluation Reserve | 685.67 | 685.67 | 685.67 | 685.67 |
| Profit & Loss Account (Including accumulated losses) | (114,003.29) | (111,938.80) | (114,067.47) | (111,946.24) |
| Basic and Diluted Earning Per Share before Extraordinary items of Rs 10/- Each (not annualized) | (0.35) | (4.09) | 0.36 | (4.04) |
| Basic and Diluted Earning Per Share after Extraordinary items of Rs 10/- Each (not annualized) | (0.35) | (4.09) | 0.36 | (4.04) |
| Public Shareholding | ||||
| - No. of Shares | 285,555,268 | 199,812,152 | 285,555,268 | 199,812,152 |
| - % of Shareholding | 46.64% | 38.02% | 46.64% | 38.02% |
| Promoters and Promoter Group Shareholding | ||||
| a) Pledged/Encumbered | ||||
| Number of Shares | 326,705,000 | 209,500,000 | - | - |
| Percentage of Shares (as % of the total Shareholding of Promoter and Promoter group) | 100.00% | 64.32% | - | - |
| Percentage of shares (as a % of the total share capital of the Company) | 53.36% | 39.87% | - | - |
| b) Non encumbered | ||||
| Number of Shares | - | 116,205,000 | - | - |
| Percentage of Shares(as % of the total Shareholding of Promoter and Promoter group) | 0.00% | 35.68% | - | - |
| Percentage of shares (as a % of the total share capital of the Company) | 0.00% | 22.11% | - | - |
| STATEMENT OF ASSETS AND LIABILITIES | ||||
| Shareholders\' Funds | ||||
| (a) Capital | 67,726.03 | 67,726.03 | 67,726.03 | 67,726.03 |
| (b) Reserves and Surplus | 685.67 | 685.67 | 685.67 | 685.67 |
| Loan Funds | 77,220.22 | 79,544.67 | 77,220.22 | 79,544.67 |
| Total | 145,631.91 | 147,956.37 | 145,631.91 | 147,956.37 |
| Fixed Assets | 45,792.60 | 42,887.42 | 45,795.71 | 42,890.93 |
| Intangible Assets | 25,565.05 | 27,006.74 | 25,814.88 | 27,319.03 |
| Investments | 1.00 | 1.00 | - | - |
| Deferred Tax Assets | - | - | 9.76 | 3.54 |
| Current Assets, Loans and Advances | ||||
| (a) Inventory | 240.65 | 198.96 | 304.45 | 296.30 |
| (b) Sundry Debtors | 2,781.60 | 3,389.78 | 2,782.02 | 3,389.78 |
| (c) Cash and Bank Balances | 1,239.14 | 1,179.50 | 1,296.34 | 1,182.29 |
| (d) Other Current Assets | 184.04 | 133.59 | 184.18 | 133.59 |
| (e) Loans and Advances | 2,105.84 | 2,042.50 | 1,808.45 | 1,724.59 |
| Less: Current Liabilities and Provisions | ||||
| (a) Liabilities | 45,972.61 | 40,534.74 | 46,107.14 | 40,632.51 |
| (b) Provisions | 308.67 | 287.18 | 324.21 | 297.41 |
| Miscellaneous Expenditure (Not written off or adjusted) | - | - | - | - |
| Profit and Loss Account | 114,003.28 | 111,938.80 | 114,067.47 | 111,946.24 |
| Total | 145,631.91 | 147,956.37 | 145,631.91 | 147,956.37 |
| Notes: | |||||||
| 1. The auditors in their report dated June 25, 2010 has invited attention with regard to following matters. | |||||||
| (a) With respect to terms and conditions which are yet to be finalized in respect of an advance of Rs 15,175.00 lacs taken by the Company to fund the entry fee for using GSM Technology under the existing Unified Access Services License (UASL) for Punjab Service Area. | |||||||
| (b) The management is yet to fullfill all conditions precedent to the implementation of the Revised CDR Scheme. | |||||||
| (c) The Company has not made any provision for license fee on reversal of provision of interest, as based on judgement of Hon'ble Telecom Disputes Settlement & Appellate Tribunal ('TDSAT') as it believes that no license fee is leviable. | |||||||
| 2. Corporate Debt Restructuring ('CDR') cell vide their letter no CDR (JCP) No 563 / 2009-10 dated August 13, 2009 approved a new restructuring package with effect from April 1, 2009, which includes the restructuring of term debts and the induction of strategic investor / change of management. An amount of Rs. 2,568.29 lacs has been considered as interest for the year ended March 31, 2010, and accordingly reversed the provision for interest of Rs 10,258.46 Lacs, the other parameters of the CDR are yet to be adopted. | |||||||
| 3. During the year ended March 31, 2010, the Company issued 86,743,116 equity shares of Rs 10 each (at par) fully paid up to Banks and Financial Institutions, pursuant to conversion of OFCDs and these shares have been listed on Bombay Stock Exchange w.e.f. August 14, 2009 and Madras Stock Exchange w.e.f. September 01, 2009. | |||||||
| 4. Information on investors' complaints for the quarter; Opening Balance: Nil, New: One, Disposal: One, Closing Balance: Nil. | |||||||
| 5. The Company Law Board had vide its Order dated August 31,2009 accorded its approval for shifting of the registered office from the State of Punjab to State of Maharashtra; consequently Form 21 and Form 18 were duly filed with Registrar of Companies ('RoC'), Mumbai; The Certificate confirming the change of registered office was issued by the RoC, Mumbai on December 01, 2009. | |||||||
| 6. In pursuance to the order passed by SEBI dated March 3, 2010 relating to change of management , M/s Quadrant Enterprises Private Limited on April 3, 2010 has acquired 32,67,05,000 equity shares amounting to 53.3605% of the issued, subscribed and paid up share capital of the Company from the Company Himachal Futuristic Communications Limited in pursuance to the proposal for change of management as stipulated in the CDR scheme. | |||||||
| 7. The Company is operating in a single segment viz.providing Unified Telephony Services. | |||||||
| 8. Previous period/years figures have been reclassified, wherever necessary, to make them comparable with those of the current period. | |||||||
| 9. Above results have been reviewed by the Audit Committee and taken on record by the Board of Directors in their meeting held on June 25, 2010. | |||||||
| Place : Mumbai | By Order of the Board | ||||||
| Dated: June 25, 2010 | for HFCL Infotel Limited | ||||||
| (Mr. Babu Mohanlal Panchal) | |||||||
| Director | |||||||