Cerebra Integrated Technologies Limited (the Company) was incorporated
under the Companies Act, 1956 with registered office at Bangalore,
India. The Company is a listed on Bombay Stock Exchange & National
Stock Exchange. The Company is primarily engaged in Manufacturing,
Trading of Computer Systems and Peripherals. The Company is also in to
the business of providing IT services and e-Waste management.
a) Due to Micro, small & medium enterprises
As per the records maintained by the company there are no dues to the
Micro, small & medium enterprises as on the date of balance sheet.
b) Related Party Disclosure
Cerebra LPO India Limited Subsidiary
Cerebra Middle East FZCO Subsidiary
Cerebra e-Waste Recovery Pte Limited Singapore Subsidiary
Geeta Monitors Private Limited Subsidiary
Kranion technologies Private Limited Associate Company
Key Management Personnel
V Ranganathan Managing Director
K Gururaj Upadya Director
P Vishwamurthy Director
Shridhar S Hegde Whole time Director
P Bharath Chief Operating Officer,
Managing Director of Kranion technologies
c) Lease hold land amounting Rs 5,06,39,394/- (Previous Year Rs
5,06,39,394/-) includes 48,564 sq .mts of land at Narasapura Industrial
Area, Kolar Taluk, Kolar District allotted by Karnataka Industrial Area
Development Board (KIADB) on lease cum sale basis for setting up an
e-waste recycling plant within a specified period. As per the lease cum
sale agreement , KIADB has got the right to determine the lease and
forfeit up to 25% of the consideration paid/ enhance the compensation
payable if the Company fails to set up the plant within the specified
d) Share application money amounting Rs 1,34,62,456 (Previous year Nil)
and advance to a Subsidiary amounting Rs 5,45,14,291 (Previous Year Rs
Nil) relates to remittance made to Cerebra E waste recovery Pte
Limited. As per the Share Purchase Agreement (SPA) entered between the
Company and Enviro?Hub Holdings Limited Singapore (Enviro ) the
subsidiary Company remitted US$ 12,50,000 equivalent to Rs 6,79,76,747
(Previous Year Nil) to Enviro on 25th January 2013 as initial deposit
towards acquisition of 100% shares of Enviro''s wholly owned subsidiary
Cimelia Resource Recovery Pte Limited (Cimelia), a Company in the field
of e waste recycling business. However during July 2013 based on the
advice given by the consultants and advisors the Company decided to
abort the acquisition proposal the acquisition. The Company is
negotiating with Enviro seeking refund the initial deposit and is
confident of amicable settlement of the matter. Considering the opinion
of the consultants no provision is made in the accounts towards this
e) Capital advance includes :
(i) Rs. 4,02,50,000 (Previous Year Rs 4,02,50,000) was advanced to
Cimelia Resource Recovery Pte Limited Singapore (Cimelia) on 24th May
2011 towards technology fee. The payment is made by allotting 23,00,000
equity shares of the Company at a premium of Rs 7.50 Per share.
(ii) Rs. 6,30,00,000 (Previous Year Rs. 6,30,00,000) was advanced to
Scenic Overseas (S) Pte Limited (Scenic) on 24th May 2011 towards
supply of plant and machinery for e waste recycling plant in India. The
payment is made by allotting 36,00,000 equity shares of the Company at
a premium of Rs 7.50 Per share.
(iii) Rs. 5,77,50,000 (Previous Year Rs. 5,77,50,000 ) was advanced to
Leytron Technology Pte Limited ( Leytron) on 24th May 2011 towards
installation and commissioning of the above plant. The payment is made
by allotting 33,00,000 equity shares of the Company at a premium of Rs
7.50 Per share.
All the above allotments were made based on the approvals obtained from
the FIPB, Government of India, and the Bombay Stock Exchange Ltd,
Mumbai. On signing the SPA, Scenic and Leytron have agreed to return
the shares allotted to them and authorized the Company to do the
needful to set off against the advance amount. The Company is expecting
the refund of advance by Cimelia either by cash or by transfer of
shares. Hence no provision is made in the accounts.
(iv) Rs 88,48,000 (Previous Year Rs. 88,48,000) represents balance in
advance account from Scenic. US $ 2,25,000 was advanced to Scenic on
24th May 2011 towards supply of plant and machinery against which
mobile shredder valued US $ 25,000 was supplied by them so far.
f) Trade Receivables include Rs. 7,54,70,660/- (Previous Year Rs
7,51,44,470/-) outstanding against export of software products for
substantial period. The customer has promised to remit the entire dues
before 31st March 2014 and hence no provision is made.
Balances of Sundry Debtors, Advances given to parties, Sundry Creditors
and advances received from parties are subject to confirmation.
g) OPERATING LEASES:
The Company has taken various residential / commercial premises under
cancelable operating leases. These lease agreements are normally
renewed on expiry.
The lease agreements provide an option to the Company to renew the
lease period at the end of the non-cancelable period. There are no
exceptional / restrictive covenants in the lease agreements.
Contingent rent recognized in the Profit & Loss Account NilThe
operating lease arrangements are renewable on a periodic basis. Some of
these lease agreements have price escalation clauses.
h) Previous year figures have been regrouped and reclassified wherever necessary to confirm to current year''s presentation.