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Notes to Accounts of Ankit Metal & Power Ltd.

Mar 31, 2015

1. Terms/Rights attached to Equity Shares

The Company has only one class of Equity Shares having a par value of Rs. 10/- per share. Each shareholder is eligible for one vote per share held and in case of poll, the voting rights of every member shall be in proportion to his shares of the paid-up Equity Share capital of the Company.

2. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

3. In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the shareholders.

4. Working Capital Term Loan (WCTL) :

Upon implementaion of the CDR Package (Refer Note 28), the overdrawn portion of the Cash Credit Accounts of the Company has been carved out into separate Working Capital Term Loans (WCTL).

5. Funded Interest Term Loan (FITL) :

Upon implementaion of the CDR Package (Refer Note 28), funding of interest has been provided for:

* Interest on existing term loans for a period of 24 months from the Cut-Off Date i.e from February 01, 2014 to January 31, 2016;

* Interest on WCTL for a period of 24 months from the Cut-Off Date i.e from February 01, 2014 to January 31, 2016;

* Interest on residual cash credit limit for a period of 9 months from the Cut-Off Date i.e February 01, 2014 to October 31, 2014

6. Nature of Security :

(i) In terms of the CDR package, Project Term Loans, Working Capital Term Loans, Funded Interest Term Loans and Working Capital Loan (Refer Note 8) are pooled together and secured as under:

7. First pari-passu charge on fixed assets by way of equitable mortgage of the land & building / shed along with all movable and immovable plant & machinery and other fixed assets thereon at Chhatna Dist. Bankura.

8. First pari-passu charge on the entire Current Assets of the Company comprised of stock of raw materials, semi finished and finished goods and book debts, outstanding moneys, receivables, both present and future pertaining to the Company's manufacturing units/divisions at Chhatna Dist. Bankura.

9. Collateral Security equitable mortgage on office space at 20A Thacker House 35, C. R. Avenue, Kolkata standing in the name of Sarita Patni & Corporate office of the group at SKP House, 132A, S.P. Mukherjee Road, Kolkata - 700 026 being 1st, 2nd, 3rd and 5th Floor, standing in the name of M/s. Marble Arch Properties Pvt. Ltd. on pari passu basis.

10. Personal guarantee of Promoters / Director - Mr. Suresh Kumar Patni, Mr. Rohit Patni, Mr. Ankit Patni & Mrs. Sarita Patni.

11. Corporate guarantee of the group companies - M/s. Vasupujaya Enterprises Pvt. Ltd., M/s. Poddar Mech Tech Services Pvt. Ltd., M/s. Suanvi Trading & Investment Co. Pvt. Ltd., M/s. Sarita Steel & Power Ltd., M/s. Marble Arch Properties Pvt. Ltd. & pledge of 8,11,80,000 shares of Company in the name of promoters & group associates.

12. Loans against Vehicle amounted to Rs. 10.77 Lacs are repayble by way of Equated Monthly Installments subsequent to taking of such loan. The original period of such loans is 3 yrs out of which Rs. 9.27 Lacs is payable in the next financial year & it is treated as a current liablities (Refer Note No. 6).

13. During the year, at the request of the Company - Ankit Metal & Power Limited, the Corporate Debt Restructuring Proposal (CDR Proposal) was referred to CDR Empowered Group (CDR EG) by the consortium of lenders led by State Bank of India (SBI). The CDR Proposal as recommended by SBI was approved by CDR EG on September 9, 2014 and communicated vide Letter of Approval dated 17th September, 2014, as amended / modified from time to time. Under CDR package, the Company's debts were restructured / rescheduled and additional credit facilities have been sanctioned as set out in the said Letter of Approval. The cut off date for CDR package is February 01, 2014. Upon implementation, the financial effect thereof has been taken into accounts w.r.t. the said CDR scheme as per the said LOA. The said accounts are subject to confirmation and reconciliation with the lenders.

14. The CDR Package includes reliefs / measures such as reduction in interest rates, funding of interest, rearrangement of securities etc. The key features of the CDR Proposal are as follows:

15. Repayment of Rupee Term Loans (RTL) after moratorium of 2 years from the cut-off date in 32 structured quarterly installments commencing from April 30, 2016 to January 31, 2024.

16. Conversion of various irregular/outstanding/devolved financial facilities into Working Capital Term Loan ('WCTL'). Repayment of WCTL after moratorium period of 2 years from cut-off date in 32 structured quarterly installments commencing from April 30, 2016 to January 31, 2024.

17. Restructuring of existing fund based and non fund based financial facilities.

18. Interest on RTL and WCTL during the moratorium period of 2 years from cut-off date and interest on Cash Credit limit for a period of 9 months from the cut-off date shall be converted to FITL. Repayment of FITL would be done in 20 structured quarterly installments commencing from April 30, 2016 to January 31, 2021.

19. The rate of interest on PTL, WCTL, FITL and Fund Based Working Capital Facilities shall be 11% (linked to the base rate of SBI) with the right to reset the rate of the Term loan(s) and FITL every year with the approval of CDR-EG.

20. Waiver of penal interest for irregularities in the Cash Credit accounts for the period from cut-off date to the date of implementation of the package.

21. Contribution of Rs. 3,807 Lacs in the Company by the promoters in lieu of bank sacrifices of Rs. 12,690 Lacs to meet the additional cost of the Company. The contribution is to be brought initially in the form of unsecured loan and the same is to be converted into equity.

22. The CDR Package as well as the provisions of the Master Circular on Corporate Debt Restructuring issued by the Reserve Bank of India, gives a right to the CDR Lenders to get a recompense of their waivers and sacrifices made as part of the CDR Proposal. The recompense payable by the Company is contingent on various factors, the outcome of which currently is materially uncertain and hence the proportionate amount payable as recompense has been treated as a contingent liability. The aggregate present value of the outstanding sacrifice made/ to be made by CDR Lenders as per the CDR package is approximately Rs. 48,176 Lacs.

23. Contingent Liabilities not provided for in the books of Accounts :

a) In respect of Letter of Credit amounting to Rs. NIL Lacs (P.Y.- Rs. 16,310.00 Lacs) & Bank guarantee amounting to Rs. 539.20 Lacs ( P. Y. Rs. 482.20 Lacs).

b) Right to Recompense to CDR Lenders for the relief and sacrifice extended, subject to provisions of CDR Guidelines, amounting to Rs. 4,440.00 Lacs.

c) Relating to Assessment year 2006-07, 2009-10 & 2012-13 a demand of Rs. 21.11 Lacs, Rs. 25.28 Lacs & Rs. 6,692.78 Lacs was raised by the Income Tax Department against which the Company has filed an application with respective department. An amount of Rs. 16.10 Lacs was paid under protest relating to A.Y 2006-07.

d) Relating to Earlier Financial years a demand of Rs. 384.70 Lacs (PY Rs. 186.98 Lacs) were raised by the CESTAT department against which appeal has been filed by the Company. The Company has paid Rs. 50.00 Lacs under protest.

e) Relating to Financial year 2005-06,2006 -07, 2007-08, 2008-09, 2009-10, 2011-12 a demand of Rs. 222.89 Lacs, Rs. 917.91 Lacs, Rs. 358.16 Lacs, Rs. 2,127.7 Lacs, Rs. 37.28 Lacs & Rs. 446.29 Lacs respectively were raised by the Sales Tax department against which appeal has been filed by the Company.

f) (i) A Suit of Rs. 100 Lacs filed by Mr. Ram Krishna Mukherjee for recovery of outstanding money against coal supplied to the Company in the year 2011. The Company has opposed the suit on the ground of inferior quality.

(ii) In the year 2013 M/s. Mjunction filed a money suit for recovery of outstanding from the Company, amount being Rs. 0.40 Lacs. Hearing is under process.

g) The Ministry of Railway issued a Show Cause Notice in respect of Evasion of Freight on loading of Iron-ore at a concessional rate and the penalty on such thereof amounting to Rs. 5,697.90 Lacs. The Company has filed a writ petition in the High Court in the year 2013 for issuing an unjustified notice.

Interest of Rs. NIL (P. Y Rs. 2,643.72 Lacs) capitalised during the year as identified for acquisition & construction of qualifying assets and a sum of Rs. NIL (P. Y Rs. 1,059.03 Lacs) transferred to pre operative expenses as a borrowing cost.

Excise duty payable on Closing Stock on Finished Goods valued at Rs. 1,260.31 Lacs (P. Y Rs. 302.10 Lacs) included in Closing Stock of Finished Goods and effect on Excise duty on change in stock of Finished Goods shown under Other Expenses (Notes No. 27). Due to above, there is no effect on profitability of the Company for the year under review.

Certain balances of the Sundry Creditors, Sundry Debtors, Unsecured Loan and Advances are subject to confirmation and reconciliation.

In the opinion of the Board of Directors, the Current Assets and Loans & Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the accounts.

24. INTEREST IN JOINT VENTURE

The Company has the following investment, in a jointly controlled entity:

Name of the Entity : M/s. SKP Mining Pvt. Ltd.

Country of Incorporation : India

Percentage of ownership interest : 50% as at 31st March, 2015 Percentage of ownership interest : NIL as at 31st March, 2014

The Company's interest in this Joint Venture is reported as Non-current investment (Refer Note 13) and is stated at cost (net of provision for other than temporary diminution in value). The Company's share of each of the assets, liabilities, income, expenses, etc (each without elimination of the effect of transactions between the Company and the Joint Venture) related to its interest in this joint venture, based on the audited financial statements are :

The Company's business activity primarily falls within a single business segment i.e. Iron & Steel business. However, the Company also generate power from its captive power plant, which is entirely consumed in Iron & Steel manufacturing unit without any sale to third party. The details of such unit generated are shown below. Hence, there are no additional disclosure to be made under AS - 17.

Particulars 31-10-2015

Unit Generated (KWH ) 1,347.32

25. RELATED PARTIES DISCLOSURE AS PER AS - 18

A. Name of the Related Parties where control exists irrespective of whether transactions have occurred or not:-

A.1 Enterprise on which the company has control :

Nil

SKP Mining Pvt. Ltd.

A.2 Entities/Individuals owning directly or indrectly an interest in the voting power that gives them control :

Sarita Patni SBM Steels Pvt. Ltd.

Gajkarna Merchandise Pvt. Ltd.

Shubham Complex Pvt. Ltd.

Rellybulls Derivatives & Commodities Pvt. Ltd.

Narmada River Resources Pvt. Ltd.

A. B. Infratel Pvt. Ltd.

26. PARTICULARS ON REMITTANCES OF DIVIDEND IN FOREIGN CURRENCY

i Number of Non Resident Shareholders NIL

ii Number of Equity Shares Held by them NIL

iii Amount of remittance on account of dividend NIL

Previous year's figures have been regrouped/restated wherever necessary to conform with this year's classification.


Mar 31, 2014

NOTE 1 ADDTIONAL NOTES ON ACCOUNTS

1.1 Contingent Liabilities not provided for in the books of Accounts :

a) In respect of Bills Discounted, outstanding as on 31.03.2014 amounting to Rs. NIL (P.Y. Rs. 4,843.40 Lacs).

b) In respect of Letter of Credit amounting to Rs. 16,310 Lacs (P.Y. Rs. 3,212.60 Lacs) & Bank guarantee amounting to Rs. 482.20 Lacs (P. Y. Rs. 272.93 Lacs).

c) Commitments against Capital Expenditure not provided in the accounts Rs. NIL (P. Y Rs. 617.15 Lacs).

d) Relating to Assessment Year 2006-07 & 2009-10 a demand ofRs. 21.11 Lacs &Rs. 25.28 Lacs was raised by the Income Tax Department against which the Company has fi led an application with respective department. An amount ofRs. 16.11 Lacs was paid under protest relating to AY. 2006-07. For the AY. 2008-09 a demand of Rs. 954.67 Lacs was raised by the department out of which orders eff ecting to the tune of Rs. 921.67 Lacs has been passed in favour of the Company and the rest of the amount is still under litigation.

e) Relating to earlier years, Central Excise Department has raised demand order aggregating to Rs. 186.98 Lacs out of which payment under protest ofRs. 35 Lacs has been made and the Company has fi led Appeal/Writ Petition in the respective Authority/Court.

f) Relating to Financial Year 2005-06, 2006-07, 2007-08, 2008-09, 2009-10, 2010-11 a demand of Rs. 222.89 Lacs, Rs. 358.16 Lacs, Rs. 917.91 Lacs, Rs. 180.88 Lacs, Rs. 1,946.82 Lacs, Rs. 37.28 Lacs, Rs. 88.14 Lacs respectively were raised by the sales tax department against which appeals have been fi led by the Company.

g) (i) A Suit of Rs. 100 Lacs fi led by Mr. Ram Krishna Mukherjee for recovery of outstanding money against coal supplied to the Company in the year 2011. The Company has opposed the suit on the ground of inferior quality.

(ii) In the year 2013, M/s. Mjunction fi led a money suit for recovery of outstanding from the Company, amount being Rs. 0.40 Lacs. Hearing is under process.

h) The Ministry of Railway issued a Show Cause Notice in respect of Evasion of Freight on loading of Iron-ore at a concessional rate & the penalty on such thereof amounting to Rs. 5,697.90 Lacs. The Company has fi led a writ petition in the High Court in the year 2013 for issuing an unjustifi ed notice.

1.2 a) Interest of Rs. 2,643.72 Lacs (P. Y Rs. 2,977.78 Lacs) capitalised during the year as identifi ed for acquisition & construction of qualifying assets and a sum of Rs. 1,059.03 Lacs (P. Y Rs. 1,838.69 Lacs) transferred to pre operative expenses as a borrowing cost.

1.3 Excise duty payable on Closing Stock on Finished Goods valued at Rs. 302.10 Lacs (P. Y Rs. 824.21 Lacs) included in Closing Stock of Finished Goods and eff ect on Excise Duty on change in stock of Finished Goods shown under Manufacturing Expenses (Note No. 25). Due to above, there is no eff ect on profitability of the Company for the year under review.

1.4 Sundry Creditors includes Rs. NIL (P. Y Rs. NIL) due to Micro, Small & Medium Enterprises to the extent such parties have been identifi ed from the available documents/information.

1.5 Debtors includes Rs. 22.90 Lacs (P. Y Rs. 22.90 Lacs) for which legal case has been fi led for recovery u/s. 138 of Negotiable Instrument Act, 1881.

1.6 Certain balances of the Sundry Creditors, Sundry Debtors, Unsecured Loan and Advances are subject to Confi rmation.

1.7 In the opinion of the Board of Directors, the Current Assets, Loans & Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the accounts.

1.8 Disclosure pursuant to Accounting Standard-15 (Revised) "Employee Benefits" :

a. Defi ned Contribution Plan : Amount of Rs. 11.14 Lacs is recognised as expense and included in "Payments to and Provision For Employees" in Schedule-16 of the Profit & Loss Account.

1.9 Segment Reporting

The Company''s business activity primarily falls within a single business segment i.e. Iron & Steel business. However, the Company also generate power from its Captive Power Plant, which is entirely consumed in Iron & Steel manufacturing unit without any sale to third party. The details of such unit generated are shown below. Hence, there are no additional disclosure to be made under AS - 17.

1.10 Related Parties disclosure as per AS - 18

A. Name of the Related Parties with whom the Company had transactions during the year :

Name of the Related Party Relationship

Ankit Patni_Director - KMP

Suresh Kumar PatniDirector - KMP

Sanjay SinghDirector - KMP

Name of the Related Party Relationship

Rohit PatniRelative of KMP

Sarita PatniRelative of KMP

Neha PatniRelative of KMP

Naina PatniRelative of KMP

Rohit Ferro-Tech LimitedControl of KMP

Impex Ferro Tech Limited_Control of KMP

Impex Metal & Ferro Alloys Limited_Control of KMP

Relybulls Stock Broking Private Limited (Previously known as SKP Stock Broking Private Limited)_Control of KMP

Sarita Steel & Power Limited_Control of KMP

SKP Overseas Pte. Limited_Control of KMP

Shreyansh Leafi n Private Limited_Control of KMP

VNG Mercantiles Private Limited_Control of KMP

Marble Arch Properties Private LimitedControl of KMP

Arthodock Vinimay Private LimitedControl of KMP

Whitestone Suppliers Private LimitedControl of KMP

Nucore Exports Private Limited_Control of KMP

Invesco Finance Private LimitedControl of KMP

SKP Aviation Services LimitedControl of KMP

SKP Power Ventures Limited_Control of KMP

Suanvi Trading & Investment Co. Private Limited_Control of KMP

Vasupujya Enterprises Private Limited_Control of KMP

Poddar Mech Tech Services Private Limited_Control of KMP

Divine Trading Co. Private LimitedControl of KMP

Relybulls Derivatives & Commodities Private Limited (Previously known as SKP Derivatives & Control of KMP Commodities Private Limited)_

Laxmiwan Marketing Private Limited Control of KMP

Binapani Tradelink Private Limited Control of KMP

Mahabala Merchants Private Limited Control of KMP

Versatile Suppliers Private Limited Control of KMP

Paropkar Merchants Private Limited Control of KMP

Gannath Commerce Private Limited Control of KMP

Shubham Complex Private Limited Control of KMP

Dhodwala Enterprises Limited Control of KMP

Impex Cements Limited Control of KMP

VSN Agro Products Limited Control of KMP

Impex Industries Limited Control of KMP

Gold Mohar Steel Limited Control of KMP

Patni Metal & Ferro Alloys Limited Control of KMP

SKP Impex Pte. Limited Control of KMP

Nutech Multimax Private Limited Control of KMP

Greetamax Estates Private Limited Control of KMP

SKP Infrarealty Private Limited Control of KMP

Pioneer Multimax Private Limited Control of KMP

SKP Realtors Private Limited Control of KMP

*KMP means Key Managerial Personnel

1.11 Particulars on remittances of Dividend in foreign currency.

i Number of Non Resident Shareholders NIL

ii Number of Equity Shares Held by them NIL

iii Amount of remittance on account of dividend NIL

1.12 Previous Year''s figures have been regrouped/rearranged, wherever considered necessary.

1.13 The figures have been rounded off to nearest lacs.


Mar 31, 2013

1.1 Contingent Liabilities not provided for in the books of Accounts :

a) In respect of Bills Discounted, outstanding as on 31st March, 2013 amounting to Rs. 4,843.40 lacs (P. Y. Rs. 2,077.35 lacs).

b) In respect of Letter of Credit amounting to Rs. 3,212.60 lacs (P. Y. Rs. 3,122.59 lacs) & Bank guarantee amounting to Rs. 272.93 lacs ( P. Y. Rs. 141.20 lacs).

c) Commitments against Capital Expenditure not provided in the accounts Rs. 617.15 lacs ( P. Y. Rs. 4,320.79 lacs).

d) Relating to Assessment year 2006-07, 2008-09, 2009-10 & 2010-11 a demand of Rs. 21.11 lacs, Rs. 217.90 lacs, Rs. 25.28 lacs & Rs. 88.43 lacs was raised by the Income Tax Department against which the Company has filed an application with respective department. The Decision of the case relating to A.Y. 2008-09 is in favour of Company against which department filed application in Tribunal. An amount of Rs. 11.10 Lacs was paid under protest relating to A.Y. 2006-07 and Rs. 50 Lacs relating to A.Y. 2008-09.

e) Relating to previous Financial Year a various demand of Rs. 88.61 lacs were raised by the Central Excise & Service Tax Department against which appeal has been filed by the Company. The Company has paid Rs. 5 lacs under protest & a search has been conduted in the factory & office premises on 11.01.2012 relating to which show cause notice has not been issued by the department during the financial year. The Company has paid Rs. 15 lacs under protest.

f) Relating to Financial year 2005-06, 2006-07, 2007-08 & 2008-09 a demand of Rs. 222.89 lacs, Rs. 358.16 lacs, Rs. 917.91 lacs, Rs. 539.04 lacs & Rs. 1,946.82 lacs respectively were raised by the sales tax department against which appeal has been filed by the Company.

g) (i) A Suit of Rs. 1 Cr. filed by Mr. Ram Krishna Mukherjee for recovery of outstanding money against coal supplied to the Company in the year 2011. The Company is opposing the suit on the ground of inferior quality.

(ii) In the year 2012 Mjunction Services Ltd. has filed a suit against the Company for non-payment of invoices raised by them on account of service charges of the bidding conducted by them.

h) In the year 2012 the Company has challanged the ACT i.e. Section 4 of West Bengal Tax on Entry of goods into the Local Areas Act 2012,(Levy & Collection of Tax). Hearing of the case is under Progress.

i) A civil suit has been filed before Hon''able Court, Calcutta against Company on 04.02.2011 for a sum of Rs. 136.82 lacs for non payment of rejected material alongwith interest and penalty for non-submission of Sales Tax Declaration in Form "C".

1.2 a) Interest of Rs. 2,977.78 lacs (P. Y. Rs. 3,597.76 lacs) capitalised during the year as identified for acquisition & construction of qualifying assets and a sum of Rs. 1,838.69 lacs (P. Y. Rs. 1,323.31 lacs) transferred to pre operative expenses as a borrowing cost.

1.3 Excise Duty payable on Closing Stock on Finished Goods valued at Rs. 824.21/- lacs (P. Y. Rs. 80.80 lacs) included in Closing Stock of Finished Goods and effect on Excise Duty on change in Stock of Finished Goods shown under Other Expenses (Notes No. 28). Due to above, there is no effect on profitability of the Company for the year under review.

1.4 Sundry Creditors includes Rs. NIL lacs (P. Y. Rs. NIL) due to Micro, Small & Medium Enterprises to the extent such parties have been identified from the available documents/ information.

1.5 Debtors includes Rs. 22.90 lacs (P. Y. Rs. 22.90 lacs) for which legal case has been filed for recovery u/s. 138 of Negotiable Instrument Act, 1881.

1.6 Certain balances of the Sundry Creditors, Sundry Debtors, Unsecured Loan and Advances are subject to confirmation.

1.7 In the opinion of the Board of Directors, the Current Assets, Loans & Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the accounts.

1.8 Disclosure pursuant to Accounting Standard-15 ( Revised) "Employee Benefits" :

a. Defined Contribution Plan : Amount of Rs. 8.92 Lacs is recognised as expense and included in "Payments to and Provision For Employees" in Schedule-16 of the Profit & Loss Account.

b. Defined Benefit Plan:

i. Reconciliation of Opening and Closing balances of the Present Value of the Defined Benefit Obligation :

1.09 Segment Reporting

The Company''s business activity primarily falls within a single business segment i.e. Iron & Steel business. However, the Company also generate power from its Captive Power Plant, which is entirely consumed in Iron & Steel manufacturing unit without any sale to third party. The details of such unit generated are shown below. Hence, there are no additional disclosure to be made under AS -17.

1.10 Particulars on remittances of Dividend in foreign currency.

i Number of Non Resident Shareholders NIL

ii Number of Equity Shares held by them NIL

iii Amount of Remittance on account of Dividend NIL

1.11 Previous year''s figures have been regrouped/rearranged, wherever considered necessary.

1.12 The figures have been rounded off to nearest lacs.


Mar 31, 2012

Terms/Rights attached to Equity Shares

The Company has only one class of Equity Shares having at a par value of Rs. 10/- per share. On a show of hands, every member present in person is entitled to one vote and in case of poll, the voting rights of every member shall be in proportion to his shares of the paid-up Equity Share Capital of the Company.

The dividend proposed if any, by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting & paid in Indian rupees.

In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the shareholders.

During the year under review the Board of Directors has issued & alloted 625 lacs of Equity Shares of Rs. 10/- each at a premium of Rs. 30/- per share on preferential basis to part finance the various expansion scheme & long term working capital requirement of the Company. The entire proceeds received from the said issue during the year has been fully utilised towards the object of the issue.

Terms and Conditions relating to Share Application Money Pending Allotment

The Share Application Money amounted to Rs. 11,075.62 lacs received during the year 2010-2011 has been, with the consent of the respective allotees, adjusted against shares alloted to them in preferential issue of Equity Share of Rs. 10/- each at a premium of Rs. 30/- per share.

The existing Authorised Share Capital of the Company is sufficient to accommodate the shares to be issued against the aforesaid share appication money.

Terms and Conditions attached to Short Term Borrowings

Working Capital including SLC are jointly secured by hypothecation of all the current assets on 1st pari-passu basis &2nd pari-passu charge by way of extension of charge on the entire fixed assets of factory land, building/shed, etc. & along with equitable mortgage on office space at 35, C. R. Avenue, Kolkata on pari-passu basis & personal guarantee of three Promoters & corporate guarantee of three Companies & pledge of shares of Promoter Directors.

Loan from Banks/Others is secured by personal guarantees of Mr. Suresh Kumar Patni (Chairman) and Mr. Ankit Patni (Managing Director), Mr. Rohit Patni (Jt. Managing Director) and subservient charge on all moveable assets including stock and debtor.

1.1 Contingent Liabilities not provided for in the books of Accounts:

a) In respect of Bills Discounted, outstanding as on 31st March, 2012 amounting to Rs. 2,077.35 lacs (P.Y. - Rs. 1,050.00 lacs).

b) In respect of Letter of Credit amounting to Rs. 3,122.59 lacs (P.Y. - Rs. 1,218.15 lacs) & Bank Guarantee amounting to Rs. 141.20 lacs (P.Y. -Rs. 135.20 lacs).

c) Commitments against Capital Expenditure not provided in the accounts Rs. 4,320.79 lacs (P.Y. - Rs. 4,650.35 lacs).

d) Relating to Assessment Year 2006-07, 2007-08, 2008-09 & 2009-10 a demand of Rs. 21.11 lacs, Rs. 19.99 lacs, Rs. 217.90 lacs & Rs. 25.28 lacs was raised by the Income Tax Department against which the Company has filed an application with respective department. The decision of the case relating to Assessment Year 2008-09 is in favour of Company against which department filed application in Tribunal. An amount of Rs. 11.10 lacs was paid under protest relating to Assessment Year 2006-07, and Rs. 50 lacs relating to Assessment Year 2008-09. An amount of Rs. 4.47 lacs paid relating to year 2007-08.

e) Relating to Financial Year 2005-06, 2006-07, 2007-08 & 2008-09 a demand of Rs. 222.89 lacs, Rs. 917.91 lacs, Rs. 539.04 lacs & Rs. 1,946.82 lacs respectively were raised by the Sales Tax Department against which appeal has been filed by the Company.

f) A Civil suit has been filed before Hon'able Court, Calcutta against Company on 4/2/2011 for a sum of Rs. 136.82 lacs for non payment of rejected material alongwith interest and penalty for non-submission of Sales Tax Declaration in Form "C".

1.2 During the year, the Company has alloted 625.00 lacs Equity Shares of Rs. 10/- at a price of Rs. 40/- per Equity Share (including premium of Rs.30/- per share) to entities belonging to promoter group and strategic investors belonging to non-promoter group on a preferential basis in terms of provisions of SEBI (Issue of Capital and Disclosure Requirement) Regulation 2009. The total funds amounting to Rs. 25,000 lacs raised from the issue have been utilised for financing expansion projects and working capital requirements.

1.3 a) Interest of Rs. 3,597.76 lacs (P.Y. - Rs. 21.30 lacs) capitalised during the year as identified for acquisition & construction of qualifying assets and a sum of Rs. 1,323.31 lacs (P.Y. - Rs. 850.90 lacs) transferred to pre operative expenses as a borrowing cost.

1.4 Excise Duty payable on Closing Stock on Finished Goods valued at Rs. 80.80 lacs (P.Y. - Rs. 421.84 lacs) included in Closing Stock of Finished Goods and effect on Excise Duty on change in Stock of Finished Goods shown under Other Expenses (Notes No. 27). Due to above, there is no effect on profitability of the Company for the year under review.

1.5 Sundry creditors includes Rs. NIL lacs (P.Y. - Rs. NIL) due to Micro, Small & Medium Enterprises to the extent such parties have been identified from the available documents/information.

1.6 Debtors includes Rs. 22.90 lacs (Rs. 22.90 lacs) for which legal case has been filed for recovery under Section 138 of Negotiable Instrument Act, 1881.

1.7 Certain balances of the Sundry Creditors, Sundry Debtors, Unsecured Loan and Advances are subject to confirmation.

1.8 In the opinion of the Board of Directors, the Current Assets, Loans & Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the accounts.

1.9 Disclosure pursuant to Accounting Standard-15 (Revised) "Employee Benefits":

a. Defined Contribution Plan : Amount of Rs. 2.44 lacs is recognised as expense and included in "Payments to and Provision For Employees"in Schedule-16 of the Profit & Loss Account.

b. Defined Benefit Plan :

vii. The estimates of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors.

1.10 Segment Reporting

The Company's business activity primarily falls within a single business segment i.e. Iron & Steel business. However, the Company also generates power from its Captive Power Plant, which is entirely consumed in Iron & Steel manufacturing unit without any sale to third party. The details of such unit generated are shown below. Hence, there are no additional disclosure to be made under AS - 17.

1.11 Previous year's figures have been regrouped/rearranged, wherever considered necessary.

1.12 The figures have been rounded off to nearest lacs.


Mar 31, 2011

1. Contingent Liabilities not provided for in the Books of Accounts :

a) In respect of Bills Discounted, outstanding as on 31st March, 2011 amounting to Rs. 1,050.00 lacs (P.Y- Rs. 1,259.02 lacs).

b) In respect of Letter of Credit amounting to Rs. 1,218.15 lacs (P.Y-Rs. 508.92 lacs) & Bank Guarantee amounting to Rs. 135.20 lacs (P. Y-Rs. 254.55 lacs).

c) Commitments against Capital Expenditure not provided in the accounts (Net of Advances) Rs. 4,650.45 lacs (P. Y-Rs. 1,238.35 lacs).

d) Relating to Assessment year 2006-07, 2007-08, 2008-09 & 2009-10 a demand of Rs. 21.11 lacs, Rs. 3.54 lacs, Rs. 217.90 lacs & Rs. 10.32 lacs was raised by the D.C.I.T, Circle-3, Kolkata against which the Company has filed a appeal. An amount of Rs. 11.11 lacs was paid under protest relating to year 2006-07 and Rs. 50.00 lacs relating to year 2008-09.

e) Relating to Financial year 2005-06, 2006-07 & 2007-08, a demand of Rs. 215.65 lacs, Rs. 815.00 lacs & Rs. 539.04 lacs respectively were raised by the Sales Tax department against which appeal has been filed by the Company.

f) A sum of Rs. 4.46 lacs was raised by Asssistant Commissioner of Central Excise, Bolpur, as per Show Cause Notice for which Rs. 5.05 lacs has been paid by the Company.

g) A Civil suit has been filed before Hon'able Court, Calcutta against the Company on 4th February, 2011 for a sum of Rs. 136.82 lacs for non payment of rejected material along with interest and penalty for non-submission of Sales Tax Declaration in Form "C".

2. Draft Letter of Offer for issue of Equity Shares on right basis to the existing shareholders of the Company has been approved by Securities and Exchange Board of India (SEBI) subject to compliance of certain observation contained therein. Pursuant to above, the Company has received Share application money from the Promoters & Promoter's Group amounting to Rs. 1,1075.62 lacs shown under the head "Share Application Money - Pending Allotment".

3. All the related expenses of expansion project which is under implementation treated as capital work-in-progress. Administrative expenses relating to said project as identified by the management, have been transferred to Pre-operative Expenses Account. (Refer note no. B-13 hereunder).

4. Interest of Rs. 21.30 lacs (P.Y.- Rs. 61.07 lacs) capitalised during the year as identified for acquisition & construction of qualifying assets and a sum of Rs. 850.90 lacs (P.Y-Rs. 34.32 lacs) transferred to pre-operative expenses as a borrowing cost.

5. a) Excise duty payable on Closing Stock of Finished Goods valued at Rs. 421.84 lacs (P.Y-Rs. 196.05 lacs) included in Closing

Stock of Finished Goods and effect on Excise duty on change in stock of Finished Goods shown under manufacturing expenses. Due to above, there is no effect on profitability of the Company for the year under review

b) Excise duty includes Rs. 138.82 lacs paid as per the Directions given by the Custom & Central Excise Settlement Commission, Additional Bench, Kolkata as per Final Order no. F-247/CE/10-SC(KB) dated 26th November, 2010.

6. Sundry creditors includes Rs. NIL (P.Y-Rs. NIL) due to Micro, Small & Medium Enterprises to the extent such parties have been identified from the available documents/information.

7. a) Debtors include Rs. 6.07 lacs (Rs. 15.59 lacs) outstanding for more than 3 years in respect of which necessary steps have been initiated by the Company. The management considers the same are goods and fully recoverable, hence no provision has been made in the accounts at this regards.

b) Debtors includes Rs. 22.90 lacs (Rs. NIL) for which legal case has been filed for recovery under Section 138 of Negotiable Instrument Act, 1881. Since the amount is recoverable in the opinion of management, no provision has been made therefore.

8. Certain balances of the Sundry Creditors, Sundry Debtors, Unsecured Loan and Advances are subject to confirmation.

9. In the opinion of the Board of Directors, the Current Assets, Loans & Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the accounts.

10. Disclosure pursuant to Accounting Standard-15 (Revised) "Employee Benefits":

a. Defined Contribution Plan : Amount of Rs. 8.98 lacs is recognised as expense and included in "Payments to and Provision For Employees" in Schedule-16 of the Profit & Loss Account.

b. Defined Benefit Plan:

vii. The estimates of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors.

II. Segment Reporting:

The Company's business activity primarily falls within a single business segment i.e., Iron & Steel business. However, the Company also generates power from its Captive Power Plant, which is entirely consumed in Iron & Steel manufacturing unit without any sale to third party. The details of such unit generated are shown below. Hence, there are no additional disclosure to be made under AS-17.

16. Related Parties Disclosure as per AS-18

A) Name of the Related Parties with whom the Company had transactions during the year :

Name of the Related Party Relationship

Rohit Patni Director-KMP

Ankit Patni Director-KMP

Suresh Kumar Patni Director-KMP

Santa Patni Relative of KMP

Suanvi, Trading& Control of KMP Investment Co. Pvt. Ltd.

Vasupujya Enterprises Control of KMP Pvt. Ltd.

Poddar Mech Tech Services Control of KMP Pvt. Ltd.

Impex Metal & Ferro Control of KMP Alloys Ltd.

Divine Trading Co. Pvt. Control of KMP Ltd.

Invesco Finance Pvt. Ltd. Control of KMP

Impex Steel Ltd. Control of KMP

Impex Ferro Tech Ltd. Control of KMP

Rohit Ferro Tech Ltd. Control of KMP

Marble Arch Properties Control of KMP Pvt. Ltd.

SKP Aviation Services Control of KMP Ltd.

SKP Overseas Pte. Ltd. Control of KMP

VNG Mercantiles Pvt. Ltd. Control of KMP

Hira Concast Ltd. Control of KMP

Ann Minerals Pvt. Ltd. Control of KMP

Arthodock Vinimay Pvt. Control of KMP Ltd.

Nucore Exports Pvt. Ltd. Control of KMP

Shreyansh Leafin Pvt. Control of KMP Ltd.

Whitestone Suppliers Control of KMP Pvt. Ltd.

*KMP means Key Managerial Personnel

11. Quantitative Information pursuant to Para 3 & 4 of part II of Schedule VI to the Companies Act, 1956.

A) Licensed Capacity : N.A

C) Quantitative Information : Production, Stock, Sale of goods produced/traded during the year :

12. Particulars on remittances of Dividend in foreign currency

i Number of Non Resident Shareholders NIL

ii Number of Equity Shares held by NIL them

iii Amount of remittance on account NIL of dividend

13. Additional Information pursuant to Part IV of Schedule VI is as per Annexure - A

14. Previous year's figures have been regrouped/rearranged, wherever considered necessary.

15. The figures have been rounded off to nearest rupee.


Mar 31, 2010

1. All the related expenses of expansion project which is under implementation treated as Capital Work-in-Progress. Administrative expenses relating to said project as identified by the Management, have been transferred to Pre-operative Expenses Account (Refer note no. B-12 hereunder)

2. Interest of Rs. 61.07 Lacs (Previous year - Rs. 480.40 Lacs) capitalised during the year as identified for acquisition & construction of Qualifying assets and a sum of Rs. 34.32 Lacs (Previous year - Rs. 179.87 Lacs) transferred to pre-operative expenses as a borrowing cost.

3. Excise Duty payable on closing stock on Finished Goods valued at Rs. 196.05 Lacs (Previous year - Rs. 112.83 Lacs) included in closing stockof Finished Goods and effect on Excise Duty on change in stock of Finished Goods shown under manufacturing expenses. Due to above, there is no effect on profitability of the Company for the year under review.

4. Sundry Creditors includes Rs. NIL (Previous year - Rs. NIL) due to Micro, Small & Medium Enterprises to the extent such parties have been identified from the available documents/information.

5. Debtors include Rs. 15.59 Lacs outstanding for more than 3 years in respect of which necessary steps have been initiated by the Company. The Management considers the same are good and fully recoverable, hence no provision has been made in the accounts at this regards.

6. Certain balances of the Sundry Creditors, Sundry Debtors, Unsecured Loan and Advances are subject to confirmation.

7. In the opinion of the Board of Directors, the Current Assets, Loans & Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the accounts.

8. Disclosure pursuant to Accounting Standard -15 (Revised) "Employee Benefits":

a. Defined Contribution Plan .-Amount of Rs. 5.72 Lacs is recognised as expense and included in "Payments to and Provision For Employees" in Schedule-16 of the Profit & Loss Account.

b. Defined Benefit Plan:

i) Reconciliation of Opening and Closing balances of the Present Value of the Defined Benefit Obligation:

9. Segment Reporting

The Companys business activity primarily falls within a single business segment i.e. Iron & Steel business. However, the Company also generate power from its Captive Power Plant, which is entirely consumed in Iron & Steel manufacturing unit without any sale to third party. The details of such unit generated are shown below. Hence, there are no additional disclosure to be made under Accounting Standard-17.

10. Quantitative Information pursuant to Para 3 & 4 of Part II of Schedule VI to the Companies Act, 1956.

A) Licenced Capacity: N.A.

B) Detail of Capacity & Production

11. Additional Information pursuant to Part - IV of Schedule VI is as per Annexure - A

12. Previous years figures have been re-grouped/re-arranged, wherever considered necessary.

13. The figures have been rounded off to nearest rupee.

 
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