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Notes to Accounts of APL Apollo Tubes Ltd.

Mar 31, 2015

1: Exceptional Item

During the year the Company has sold Plant & Machinery and Vehicles consequently, there is profit on sale of Rs. 0.93 Million.

2: Depreciation

During the year, pursuant to the notification of Schedule II to the Companies Act, 2013 with effect from April 1, 2014, the Company revised estimated useful life of some of its assets to align the useful life with those specified in Schedule II. Further, assets individually costing Rs. 5,000/- or less that were depreciated fully in the year of purchase are now depreciated based on the useful life considered by the Company for the respective category of assets.The details of previously applied depreciation method, rates / useful life are as follows:

3: Contingent Liability

Contingent liability not provided for in respect of; (Rs. in million)

S. No. Particulars 2014-2015 2013-2014

1. Counter guarantee to Union Bank of India for performance guarantee 15.41 12.03 given to various departments

2. Corporate Guarantee(s) have been given for securing working capital facilities sanctioned to its Subsidiary Companies.

3. Sales Invoice Discounted (Under channel financing scheme from Banks/Institutions 358.94 50.87 to customers for which the company has given counter guarantee)

Note 4:

The Company has only one segment i.e. manufacturing of Steel tubes and pipes,therefore segment reporting as required under Accounting Standard -17 is considered as not applicable.

Note 5: Brand building Expense

During the Year the company has incurred an expenditure of Rs. 74.96 Millions (Previous Year Rs. 14.01 Millions) on Brand building exercise, which has been grouped under miscellaneous expenses and will be amortized in 5 years equally.

Note 6:

Provision for IncomeTax for the current year has been computed based on Minimum Alternate Tax in accordance with Section 115JB of the IncomeTax Act, 1961. Taking into consideration the future profitability and the taxable position in the subsequent years,the Company has recognized MAT Credit Entitlement to the extent of Rs. 42.37 Millions (Previous Year Rs. 16.87 Millions) in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternate Tax under Income Tax Act,1961 issued by the Institute of Chartered Accountants of India.

Note 7: Related Party Disclosures (AS-18)

a) Name of the related parties and description of relationships;

Related Parties with whom transaction have taken place during the year and balances outstanding as on the last day of the year;

Name of related parties where control exists irrespective of whether transactions have occurred or not Wholly Owned Subsidiary companies

Apollo Metalex (P) Ltd. Shri Lakshmi Metal Udyog Ltd. Lloyds Line Pipes Limited

Name of other related parties with whom transactions have taken place during the year

Associates Key Management Personnel

Apollo Pipes Ltd. Promoter Group: V. S. Exim (P) Ltd. Mr. Sanjay Gupta (Chairman) APL Infrastructure (P) Ltd. Mr. Ashok K. Gupta (Managing Director) Mr. Vinay Gupta (Director) Mr. Sameer Gupta (Director)

Other than promoter : Mr. Deepak Goyal (CFO)

Relatives of Key Management Personnel

Mrs. Saroj Rani Gupta (Mother of Directors) Mrs. Neera Gupta (Wife of Mr. Sanjay Gupta) Mrs. Vandana Gupta (Wife of Mr. Vinay Gupta) Mrs. Meenakshi Gupta (Wife of Mr. Sameer Gupta)

Note 8: The Company could not identify whether any of its creditors is SSI undertaking and Micro, Small and Medium Enterprises covered under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act). Particulars of amount as at March 31, 2015, if any, due to such undertaking could, therefore, not to be disclosed.

Note 9: Amounts except number of shares and earnings per share are rounded off to the nearest rupees.

Note 10: The figures of previous year have been regrouped/rearranged wherever considered necessary.

Note 11: Corporate Social Responsibility

As per section 135 of Companies Act, 2013,The Company was to require an amount of Rs. 6.77 Million in CSR activities, which remain unspent at the end of the year.


Mar 31, 2014

Note 1 : Exceptional Item

During the year the Company has sold Plant & Machinery of Rs 4.49 million & Vehicle of Rs 1.45 million consequently there is loss on sale of Rs 1.35 million.

Note 2 : Contingent Liability

Contingent liability not provided for in respect of;

1. Counter guarantee to Union Bank of India for 12.03 33.55 performance guarantee given to various departments

2. Corporate Guarantee(s) have been given for securing working capital facilities sanctioned to its Subsidiary Companies.

3. Sales Invoice/Bills Discounted (Domestic/Foreign) 50.87 Nil

Note 3 : Employee Benefits

Long Term Employee Benefits

The following table sets forth the status of the Gratuity Plan of the company, and the amounts recognized in the balance sheet and statement of profit and loss account. The liability for Gratuity as at March 31, 2014 have been actuarially determined and provided for in the accounts.

Note 4 :

The Company has only one segment i.e. manufacturing of Steel tubes and pipes, therefore segment reporting as required under Accounting Standard - 17 is considered as not applicable.

Note 5 : Brand building Expense

During the Year the Group incurred an expenditure of Rs. 14.01 millions (Previous Year Rs. 69.74 millions) on Brand building exercise, which has been grouped under miscellaneous expenses and will be amortized in 5 years equally.

Note 6 :

Provision for Income Tax for the current year has been computed based on Minimum Alternate Tax in accordance with Section 115JB of the Income Tax Act, 1961. Taking into consideration the future profitability and the taxable position in the subsequent years, the Company has recognized MAT Credit Entitlement to the extent of Rs. 16.87 Millions (Previous Year Rs. 4.17 Millions) in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternate Tax under Income Tax Act, 1961 issued by the Institute of Chartered Accountants of India.

Note 7 : Related Party Disclosures (AS-18)

a) Name of the related parties and description of relationships;

Related Parties with whom transaction have taken place during the year and balances outstanding as on the last day of the year;

Name of related parties where control exists irrespective of whether transactions have occurred or not Wholly Owned Subsidiary companies

Apollo Metalex (P) Ltd.

Shri Lakshmi Metal Udyog Ltd.

Lloyds Line Pipes Limited

Name of other related parties with whom transactions have taken place during the year Associates

Apollo Pipes Ltd. V. S. Exim (P) Ltd. APL Infrastructure (P) Ltd.

Key Management Personnel

Promoter Group

Mr. Sanjay Gupta (Chairman)

Mr. Ashok K Gupta (Managing Director)

Mr. Vinay Gupta (Director)

Mr. Sameer Gupta (Director)

Relatives of Key Management Personnel

Mrs. Saroj Rani Gupta (Mother of Directors) Mrs. Neera Gupta (Wife of Sh. Sanjay Gupta) Mrs. Vandana Gupta (Wife of Sh. Vinay Gupta) Mrs. Meenakshi Gupta (Wife of Sh. Sameer Gupta)


Mar 31, 2013

NOTE 1 EXCEPTIONAL ITEM

During the year the Company has sold Plant & Machinery of Rs.2.00 Million and Vehicle of Rs.0.22 Million consequently, there is loss on sale of Rs.3.66 Million.

NOTE 2 CONTINGENT LIABILITY

Contingent liability not provided for in respect of;

(Rs.Million)

SI. No. Particulars Current Year Previous Year

1. Counter guarantee to Union Bank of India for performance 133.55 3.52 guarantee given to various departments

2. Corporate Guarantee(s) have been given for securing working capital facilities sanctioned to its Subsidiary Companies.

NOTE 3 EMPLOYEE BENEFITS Long Term Employee Benefits

The following table sets forth the status of the Gratuity Plan of the company, and the amounts recognized in the balance sheet and statement of profit and loss account. The liability for Gratuity as at March 31, 2013 have been actuarially determined and provided for in the accounts.

NOTE 4

The Company has only one segment i.e. manufacturing of Steel tubes and pipes, therefore segment reporting as required under Accounting Standard -17 is considered as not applicable.

NOTE 5 BRAND BUILDING EXPENSE

During theYearthe Company incurred an expenditure of Rs.69.74 Millions (Previous Year Rs.14.85 Millions) on Brand building exercise, which has been grouped under miscellaneous expenses and will be amortized in 5 years equally.

NOTE 6

Provision for Income Tax for the current year has been computed based on Minimum Alternate Tax in accordance with Section 115JB of the Income Tax Act, 1961. Taking into consideration the future profitability and the taxable position in the subsequent years, the Company has recognized MAT Credit Entitlement to the extent of Rs.4.17 Millions (Previous Year Rs.21.21 Millions) in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternate Tax under Income Tax Act, 1961 issued by the Institute of Chartered Accountants of India.

NOTE 7 RELATED PARTY DISCLOSURES (AS-18)

a) Name of the related parties and description of relationships;

Related Parties with whom transaction have taken place during the year and balances outstanding as on the last day of the year;

Name of related parties where control exists irrespective of whether transactions have occurred or not Wholly Owned Subsidiary companies Apollo Metalex (P) Ltd.

Shri Lakshmi Metal Udyog Ltd.

Lloyds Line Pipes Limited

Name of other related parties with whom transactions have taken place during the year Associates Apollo Pipes Ltd.

V. S. Exim (P) Ltd.

APL Infrastructure (P) Ltd.

Key Management Personnel Promoter Group

Mr. Sanjay Gupta (Chairman)

Mr. Ashok K Gupta (Managing Director)

Mr. Vinay Gupta (Director)

Mr. Sameer Gupta (Director)

Relatives of Key Management Personnel Mrs. Saroj Rani Gupta (Mother of Directors)

Mrs. Neera Gupta (Wife of Sh. Sanjay Gupta)

Mrs. Vandana Gupta (Wife of Sh. Vinay Gupta)

Mrs. Meenakshi Gupta (Wife of Sh. Sameer Gupta)

NOTE 8

The Company could not identify whether any of its creditors is SSI undertaking and Micro, Small and Medium Enterprises covered under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act). Particulars of amount as at March 31, 2013, if any, due to such undertaking could, therefore, not to be disclosed.

NOTE 9

Amounts except number of shares and earnings per share are rounded off to the nearest rupees.

NOTE 10

The figures of previous year have been regrouped/rearranged wherever considered necessary.


Mar 31, 2011

1) Contingent Liability

Contingent liability not provided for in respect of;

(Rs. in Lacs)

S.No. Particulars 31.03.2011 31.03.2010 1. Counter guarantee to Union Bank of India for performance guarantee given to various departments 539.20 493.34

2. Corporate Guarantee(s) have been given for securing working capital facilities sanctioned to its Subsidiary Companies.

3) The closing stock of finished goods has been valued nclusive of Excise Duty amounting to Rs. 22,706,411 (Previous Year Rs. 28,711,068) as per ASI-14 (Revised) issued by the Institute of Chartered Accountants of India

4) The Company has, on a preferential basis, issued the following securities to APL Infrastructure Private Limited, in accordance with the provisions of SEBI (Issue of Capita and Disclosure Requirements) Regulations, 2009 (SEBI ICDR Regulations 2009)

Warrants: 16,41,953 where each Warrant would entitle APL Infrastructure Private Limited to subscribe to one Ordinary Share of the Company at a price of Rs. 176 per share. As per the SEBI ICDR Regulations 2009, an amount equivalent to 25% of the price i.e. Rs. 44 per Warrant aggregating to Rs. 7,22,45,932 has been received from APL Infrastructure Private Limited on allotment of the Warrants.

5) The Company has only one segment i.e. manufacturing of Steel tubes and pipes, therefore segment reporting as required under Accounting Standard - 17 is considered as not applicable.

6) Brand Building

During the Year the Company incurred an expenditure of Rs. 13,636,008 (Previous Year Rs. 8,663,961) on Brand building exercise, which has been grouped under miscellaneous expenses and will be amortised in 5 years equally.

7) Provision for Income Tax for the current year has been computed based on Minimum Alternate Tax in accordance with Section 115JB of the Income Tax Act, 1961. Taking into consideration the future profitability and the taxable position in the subsequent years, the Company has recognised MAT Credit Entitlement to the extent of Rs. 12,489,285 (Previous Year Rs. 4,439,480) in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternate Tax under Income Tax Act, 1961 issued by the Institute of Chartered Accountants of India

8) Related Party Disclosures (AS 18)

a) Name of the related parties and description of relationships;

Related Parties with whom transaction have taken place during the year and balances outstanding as on the last day of the year;

Name of related parties where control exists irrespective of whether transactions have occurred or not Wholly Owned Subsidiary companies

Apollo Metalex (P) Ltd

Shri Lakshmi Metal Udyog Ltd

Lloyds Line Pipes Limited

Name of other related parties with whom transactions have taken place during the year Associates

Apollo Pipes Ltd

V. S. Exim (P) Ltd

APL Infrastructure Pvt. Ltd

Key Management Personnel

Mr. Sanjay Gupta (Chairman-cum-Managing Director)

Relatives of Key Management Personnel

Mrs. Saroj Rani Gupta (Mother of Directors) Mrs. Neera Gupta (Wife of Sh. Sanjay Gupta)

9) The outstanding balance of Debtors/Creditors in the books of the company is subject to confirmation.

10) The Company could not identify whether any of its creditors is SSI undertaking and Micro, Small and Medium Enterprises covered under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act). Particulars of amount as at March 31, 2011, if any, due to such undertaking could, therefore, not be disclosed.

11) Amounts except number of shares and earnings per share are rounded off to the nearest rupees.

12) The figures of previous year have been regrouped / rearranged wherever considered necessary.


Mar 31, 2010

1) Contingent liability not provided for in respect of: (In Lacs)

S. No. Particular 31.03.2010 31.03. 2009

1. Counter guarantee to Union Bank of India for performance guarantee given to various departments 565.96 242.55

2. Outstanding Letter of Credit 335.00 554.00

3. As on March 31, 2010, there was a foreign currency loan amounting US$ 50 Lacs (Previous year: US$ 50 Lacs).

4) Brand Building:

During the year the Company incurred an expenditure of X 8,663,961 on Brand building exercise, which has been grouped under miscellaneous expenses and will be amortized in 5 years equally.

5) Related Party Disclosures:

A) Name of related parties and description of relationships: Associates

Apollo Pipes Ltd.

V. S. Exim (P) Ltd.

APL Infrastructure (P) Ltd.

Key Management Personnel

Sh. Sanjay Gupta - Managing Director

Relatives of Key Management Personnel

Mrs. Neera Gupta - Wife of Sh. Sanjay Gupta Mrs. Saroj Rani Gupta - Mother of Director

6) On the basis of information available with the Company, it does not owe any outstanding dues towards Small Scale Industrial Undertaking amended Schedule VI of the Companies Act, 1956 vide Notification No. GSR 129 (E) dated 22.02.99, in case the sum owned is Rs 1.00 Lac or more which is outstanding for more than 30 days as at March 31, 2010.

7) On the basis of information available with the Company, the Company does not have any amounts due to suppliers under the Micro, Small and Medium Enterprises covered under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) as at March 31, 2010.

8) The figures of previous year have been regrouped/ rearranged/ recasted to conform to those of the current year.


Mar 31, 2009

1. CONTINGENT LIABILITY NOT PROVIDED FOR IN RESPECT OF

S. Particulars 31.03.2009 31.03.2008 No. (In Lacs) (In Lacs)

1. Couner guarantee to Union Bank 242.55 56.24 of India for performance guarantee given to various departments

2. Outstanding Letter of Credit 554.00 185.32

3. As on March 31, 2009, there was a foreign currency loan amounting US$ 50 Lacs (Previous year: US$ 50 Lacs).

4. Corporae Guarantee for securing working capital facilities sanctioned by Union Bank of India to its Subsidiary Companies.

4. The closing stock of finished goods has been valued inclusive of Excise Duty amounting to Rs.12,186,361.00 (Previous Year Rs. 35,625,233.00) as per ASI-14 ( Revised) issued by the Institute of Chartered Accountants of India.

5. None of the employees was in receipt of remuneration in excess of Rs. 2,400,000.00 p.a. or Rs. 200,000.00 p.m. if employed for part of the year as prescribed under section 217 (2) (A) of the Companies Act, 1956.

6. (a) During the year the Company completed

the offering of Global Depository Receipts aggregating US$ 20 Million and issued 5,882,350 Equity Shares of Rs. 10/- each as underlying security to 2,941,175 Global Depositary Receipts [GDRs]. Each GDR represents two Equity Shares and was sold at a price of US $ 6.80 per GDR. Total Issue Proceeds were Rs. 8,582.00 Lacs (considering US$ 1 = Rs. 42.91/-) before underwriting commission and other offer expenses.

Companys Global Depository Receipts [GDRs] have been officially listed on the Euro MTF Market [Euro MTF] at Luxembourg Stock Exchange [LuxSE]

(b)There were 1,034,500 warrants outstanding, issued in previous year to promoters and other strategic investors on preferential basis, pending for conversion out of which 969,500 share warrants were converted during the year into 969,500 (including 391,000 Equity Shares to promoter group) equity shares of Rs. 10/- each at a price (determined in accordance with SEBI prescribed pricing formula applicable at the time of exercise of warrants ) of Rs. 140/- per share involving an amount of Rs. 1357.30 lacs. The Company has also issued 959,500 (including 391,000 equity shares to promoter group) bonus shares on these 959,500 shares allotted on conversion of share warrants.

Allottees for remaining 65,000 Warrants didnt exercise their option of conversion of warrants into equity shares and consequently, in terms of the Special Resolution passed by the members at their Extra ordinary General Meeting held on 14th May 2007, these warrants were lapsed / cancelled and amount of deposit Rs. 9.10 Lacs (being 10% of the total consideration paid at the time of warrant allotment) was forfeited by the Company and transferred to General Reserves.

7. The Company has only one segment i.e. manufacturing of Steel tubes and pipes, therefore segment reporting as required under Accounting Standard 17 is considered as not applicable.

8 (a) During the year the Company has acquired Shri Lakshmi Metal Udyog Limited [SLMUL] in a Share Swap (non cash) deal. For acquisition of 100% Equity of SLMUL (i.e. 53,95,000 Equity Shares of Rs. 10/- each) from its shareholders; the Company issued 17,98,333 Equity Shares of Rs. 10/- each on preferential basis to the then shareholders of SLMUL.

(b) Further to augment financial resources of its subsidiaries, the Company infused Rs. 790.00 Lacs by subscribing 500,000 Equity Shares of Rs. 10/- each of Shri lakshmi Metal udyog Ltd on premium and Rs. 600.00 Lacs by subscribes 1500,000 Equity Shares of Rs. 10/- each of Apollo Metalex Pvt. Ltd on premium.

9. The outstanding balance of Debtors/Creditors in the books of the company are subject to confirmation.

10. Related Party Disclosures

(A) Names of related parties and description of relationships:

1. Wholly Owned Subsidiary

a. Apollo Metalex (P) Ltd.

b. Shri Lakshmi Metal Udyog Ltd.

2. Associates

a. Apollo Pipes (P) Ltd.

b. V. S. Exim (P) Ltd.

c. APL Infrastructure (P) Ltd.

3. Key Management Personnel

a. Sh. Sanjay Gupta - Managing Director

4. Relatives of Key Management Personnel

a. Mrs. Neera Gupta - Wife of Sh. Sanjay Gupta

b. Mrs. S. R. Gupta - Mother of Managing Director

11. The Company has no system as to whether any of its creditors constitute small scale industrial undertakings and therefore particulars of the amounts, if any, due to such undertakings has not been identified and disclosed.

12. The figures of previous year have been regrouped/ rearranged/ recasted wherever considered necessary.

 
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