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Notes to Accounts of Barak Valley Cements Ltd.

Mar 31, 2015

(a) Terms/Rights attached to equity shares

The company has only one class of equity shares having par value of Rs, 10.00 per share. Each holder of Equity shares is entitled to one vote per share.

In the event of liquidation of the company, the holders of the 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.

As per records of the company, including its register of shareholders/members and other declaration received from shareholders regarding beneficial interest, the above shareholding represent both legal and beneficial owner.

(i) Rupee Term Loan of Rs, 284.00 lakhs (sanctioned amount Rs, 2,000.00 lakhs) from a bank is repayable in 59 equal monthly installments of Rs, 33.00 lakhs and 1 installment of Rs, 53.00 lakhs ending in September' 2015. The Loan is secured by first charge on all movable and immovable assets (both present and future) of the company. Further, the loan has been guaranteed by personal guarantees of some of Directors of the Company.

(ii) Working Capital Term Loan (WCTL) of Rs, 638.89 lakhs (sanctioned amount Rs, 1,000.00 lakhs) from a bank is repayable in 36 equal monthly installments of Rs, 27.78 lakhs commencing from January' 2014. The Loan is secured by extension of charge on the current assets as well as fixed assets (both present and future) of the company. Further, the loan has been guaranteed by personal guarantees of some of Directors of the Company.

(iii) Rupee Term Loans (RTL) of Rs, 1,336.85 lakhs (sanctioned amount Rs, 2,000.00 lakhs) is repayable from April' 2015 in monthly installments of Rs, 40.00 lakhs. The loan is secured by first charge on fixed and immovable assets of company's assets on pari passu basis and by second charge on fixed and immovable assets of the company . The loans has also been guaranteed by personal guarantees of some of the Directors of the Company.

(iv) Hire Purchase Finance is secured by hypothecation of vehicles / equipments and is repayable within three to four years.

(v) Loans from Other parties are unsecured in nature and due for repayment after 12 months as on the reporting date. The company does not have any existing default as at the date of balance sheet.

b. Working Capital facilities from banks are secured by first charge on current assets of the Company and second charge on fixed assets of the Company. The Working capital facilities from banks have also been guaranteed by some of the Directors of the Company.

(1) Capital Commitments

The estimated amount of Contracts remaining to be executed on Capital Account and other capital commitment not provided for amounts to Rs, 41.85 Lakhs (Previous year: Rs, 62.77 Lakhs)

(2) Contingent liabilities not provided for:

(a) Corporate Guarantee's given to Financial Institutions/ Banks on behalf of wholly owned subsidiaries: Rs, 3,296.07 Lakhs (Previous year – Rs, 3,529.25 Lakhs)

(b) Claims against the company not acknowledged as debts: Disputed demands of Income –Tax / Entry- Tax matters pending before the Appellate Authorities: Rs, 259.92 lakhs (Previous year – Rs, 409.19 lakhs)

(3) Fixed Deposit Receipts pledged with the banks / Others : Rs, 22.73 Lakhs (Previous Year : Rs, 37.73 Lakhs)

(4) There are no Micro, Small and Medium enterprises, as defined in the Micro, Small and Medium Enterprises Development Act, 2006 to whom the company owes dues on account of principal amount together with interest and accordingly no additional disclosure have been made. The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of the information available with the company.

(5) Employee Defined Benefits:

(a) Defined Contribution Plans

The Company has recognized an expense of Rs, 18,85,018/- (Previous year Rs, 17,57,578/-) towards the defined contribution plans.

(6) In pursuance of AS -28 "Impairment of Assets" issued by ICAI, the company reviewed its carrying cost of assets with value in use on the basis of future earnings and on such review, management is of the view that in the current financial year impairment of assets is not considered necessary.

(7) In the opinion of the management and to the best of their knowledge and belief the value on realization of loans, advances and other current assets in the ordinary course of business will not be less than the amount as they are stated in the financial statements.

(8) The company deals in only one Segment i.e. cement manufacturing. There is no separate reportable segment as required by AS – 17 "Segment Reporting".

(9) During the year company has claimed differential excise duty refund of Rs, 63.10 Lakhs (Previous Year: Rs, 39.57 Lakhs) for the current year 2014 -15 and recognized the same as revenue in the books of accounts. Presently matter regarding company's claim for refund of differential Excise Duty is pending before the Hon'ble Supreme Court of India. In this matter revenue is recognized on the basis of Interim Order dated 13th January' 2012 passed by the Hon'ble Supreme Court of India in case of "VVF Ltd. and Others" and similar relief granted to other companies located in NE region.

(10) Out of the Subsidy Receivables amounting to Rs, 1,254.44 Lakhs, Rs, 660.48 Lakhs is related to Transport Subsidy and Central Capital Investment Subsidy claims of the company which is outstanding as receivable for more than five years. However, management of the company is treated the same as good and is of the opinion that the same will be realized in due course of time.

(11) An amount of Rs, 58.89 Lakhs (Previous year : Rs, 38.11 Lakhs) has been deposited by the company with the revenue authorities against the disputed Entry Tax demand of earlier years. The same has been deposited 'under protest' and is shown under 'Other Loans and Advances' forming part of current assets.

(12) Previous year's figures have been regrouped and/ or re-arranged wherever necessary, to confirm to current year's classification.


Mar 31, 2014

1. CORPORATE INFORMATION

Barak Valley Cements Limited (the company) is a public limited company incorporated under the provisions of the Companies Act, 1956. The shares of the company are listed on National Stock Exchange and Bombay Stock Exchange of India. The manufacturing unit of the company is located at Badarpurghat, Distt. Karimganj, Assam. The company is engaged in the manufacturing and selling of various brands of Cement primarily in north eastern states.

2. (a) Terms/Rights attached to equity shares

The Company has only one class of equity shares having par value of Rs. 10.00 per share each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the company, the holders of the 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.

3. (i) Rupee Term Loan of Rs. 667.00 lakhs (sanctioned amount Rs. 2,000.00 lakhs) from a bank is repayable in 59 equal monthly installments of Rs. 33.00 lakhs and 1 installment of Rs. 53.00 lakhs ending in September'' 2015. The Loan is secured by first charge on all movable and immovable assets (both present and future) of the company. Further, the loan has been guaranteed by personal gurantees of some of Directors of the Company.

(ii) Working Capital Term Loan(WCTL) of Rs. 972.22 lakhs (sanctioned amount Rs. 1,000.00 lakhs) from a bank is repayable in 36 equal monthly installments of Rs. 27.78 lakhs commencing from January'' 2014. The Loan is secured by extension of charge on the current assets as well as fixed assets (both present and future) of the company. Further,the loan has been guaranteed by personal gurantees of some of Directors of the Company.

(iii) Rupee Term Loans of Rs. 1,936.56 lakhs from financial institution is consisting of RTL of Rs. 1,790.00 Lakhs which is repayable from April'' 2015 in monthly installments of Rs. 40.00 lakhs each and FITL of Rs. 146.56 Lakhs which is repayable from April'' 2015 in equal monthly installments of Rs. 8.15 Lakhs. The loan is secured by first charge on fixed and immovable assets of company''s assets on pari -passu basis and by second charge on fixed and immovable assets of the company. The loans has also been guaranteed by personal guarantees of some of the Directors of the Company.

(iv) Hire Purchase Finance is secured by hypothecation of vehicles/equipments and is repayable within three to four years.

(v) Loans from Other parties are unsecured in nature and due for repayment after 12 months as on the reporting date. The company does not have any existing default as at the date of balance sheet.

4. Capital Commitments

The estimated amount of Contracts remaining to be executed on Capital Account and other capital commitment not provided for amounts to Rs. 62.77 Lakhs (Previous year: Rs. 170.24 Lakhs)

5. Contingent liabilities not provided for:

(a) Corporate Guarantee''s given to Financial Institutions/ Banks on behalf of wholly owned subsidiaries: Rs. 3,529.25 Lakhs (Previous year - Rs. 2,948.72 Lakhs)

(b) Claims against the company not acknowledged as debts: Disputed demands of Income-Tax / Entry-Tax matters pending before the Appellate Authorities: Rs. 409.19 lakhs (Previous year - Rs. 1,028.76 lakhs)

6. Fixed Deposit Receipts pledged with the banks / Others : Rs. 37.73 Lakhs (Previous Year : Rs. 35.25 Lakhs)

7. There are no Micro, Small and Medium enterprises, as defined in the Micro, Small and Medium Enterprises Development Act, 2006 to whom the company owes dues on account of principal amount together with interest and accordingly no additional disclosure have been made. The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of the information available with the company.

8. In pursuance of AS -28 "Impairment of Assets" issued by ICAI, the company reviewed its carrying cost of assets with value in use on the basis of future earnings and on such review, management is of the view that in the current financial year impairment of assets is not considered necessary.

9. In the opinion of the management and to the best of their knowledge and belief the value on realization of loans, advances and other current assets in the ordinary course of business will not be less than the amount as they are stated in the financial statements.

10. The company deals in only one Segment i.e. cement manufacturing. There is no separate reportable segment as required by AS - 17 "Segment Reporting".

11. During the year company has claimed differential excise duty refund of Rs. 39,57,402/- for the year 2013 -14 and recognized the same as revenue in the books of accounts. Presently matter regarding company''s claim for refund of differential Excise Duty is pending before the Hon''ble Supreme Court of India. In this matter revenue is recognized on the basis of Interim Order dated 13th January'' 2012 passed by the Hon''ble Supreme Court of India in case of "VVF Ltd. and Others" and similar relief granted to other companies located in NE region.

12. Out of the Subsidy Receivables amounting to Rs. 1,147.72 Lakhs, Rs. 660.48 Lakhs is related to Transport Subsidy and Central Capital Investment Subsidy claims of the company which is outstanding as receivable for more than five years. However, management of the company is treated the same as good and is of the opinion that the same will be realized in due course of time.

13. An amount of Rs. 38.11Lakhs has been deposited by the company with the revenue authorities against the disputed Entry Tax demand of earlier years. The same has been deposited ''under protest'' and is shown under ''Other Loans and Advances'' forming part of current assets.

14. Previous year''s figures have been regrouped and/ or re-arranged wherever necessary, to confirm to current year''s classification.


Mar 31, 2013

1. CORPORATE INFORMATION

Barak Valley Cements Limited (the company) is a public limited company incorporated under the provisions of the Companies Act, 1956. The shares of the company are listed on National Stock Exchange and Bombay Stock Exchange of India. The manufacturing unit of the company is located at Badarpurghat, Distt. Karimganj, Assam. The company is engaged in the manufacturing and selling of various brands of Cement primarily in north eastern states.

(2) Capital Commitments

The estimated amount of Contracts remaining to be executed on Capital Account and other capital commitment not provided for amounts to Rs. 170.24 Lakhs (Previous Year: Rs.153.13 Lakhs)

(3) Contingent liabilities not provided for:

(a) Bank Guarantee issued by Banks Nil (Previous Year - Nil)

(b) Corporate Guarantee''s given to Financial Institutions/ Banks on behalf of wholly owned subsidiaries: Rs. 2,948.72 Lakhs (Previous Year - Rs. 6,087.43 Lakhs)

(c) Claims against the company not acknowledged as debts: Disputed demands of Income -Tax / Entry- Tax matters pending before the Appellate Authorities: Rs.1,028.76 lakhs (Previous Year - Rs. 906.20 lakhs)

(4) Fixed Deposit Receipts pledged with the banks / Others : Rs. 35.25 Lakhs (Previous Year : Rs. 42.25 Lakhs)

(5) There are no Micro, Small and Medium enterprises, as defined in the Micro, Small and Medium Enterprises Development Act, 2006 to whom the company owes dues on account of principal amount together with interest and accordingly no additional disclosure have been made. The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of the information available with the company.

(6) Employee Defined Benefits:

(a) Defined Contribution Plans

The Company has recognized an expense of Rs.16,22,657/-(Previous year Rs 15,83,940/-) towards the defined contribu- tion plans.

(b) Defined Benefit Plans - As per Actuarial Valuation as at 31st March''2013

(7) In pursuance of AS -28 "Impairment of Assets" issued by ICAI, the company reviewed its carrying cost of assets with value in use on the basis of future earnings and on such review, management is of the view that in the current financial year impairment of assets is not considered necessary.

(8) In the opinion of the management and to the best of their knowledge and belief the value on realization of loans, advances and other current assets in the ordinary course of business will not be less than the amount as they are stated in the financial statements.

(9) The company deals in only one Segment i.e. cement manufacturing. There is no separate reportable segment as required by AS - 17 "Segment Reporting".

(10) Previous year''s figures have been regrouped and/ or re-arranged wherever necessary, to confirm to current year''s Classifi- cation.


Mar 31, 2012

1. CORPORATE INFORMATION

Barak Valley Cements Limited (the company) is a public limited company incorporated under the provisions of the Companies Act, 1956. Its shares are listed on National Stock Exchange and Bombay Stock Exchange of India. The company is engaged in the manufacturing and selling of various brands of Cement primarily in North Eastern States.

BASIS OF PREPARATION

The financial statements of the company have been prepared in accordance with the generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention basis.

(2) Capital Commitments

The estimated amount of Contracts remaining to be executed on Capital Account and other capital commitment not provided for amounts to Rs. 153.13 Lakhs (Previous year: Rs.1,144.82 Lakhs)

(3) Contingent liabilities not provided for :

(a) Bank Guarantee issued by Banks : Nil (Previous Year - Nil)

(b) Corporate Guarantees given to Financial Institutions/ Banks on behalf of wholly owned subsidiaries: Rs. 6,087.43 Lakhs (Previous year - 4,440.20 Lakhs)

(c) Claims against the company not acknowledged as debts: Disputed demands of Income -Tax; pending before the Appellate Authorities: Rs.906.20 lakhs for Assessment Year 2005-06, 2006-07 and 2009-10 (Previous year - Rs. 624.57 lakhs)

(4) Fixed Deposit Receipts pledged with the banks / Others : Rs. 42.25 Lakhs (Previous Year : 32.25 Lakhs)

(5) There are no Micro, Small and Medium enterprises, as defined in the Micro, Small and Medium Enterprises Development Act, 2006 to whom the company owes dues on account of principal amount together with interest and accordingly no additional disclosure have been made. The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of the information available with the company.

(6) Employee Defined Benefits:

(a) Defined Contribution Plans: The Company has recognized an expense of Rs.15,83,940/- (Previous year Rs 14,49,227/-) towards the defined contribution plans.

(7) Disclosure in respect of Related Parties:

Pursuant to Accounting Standard - 18 " Related Party Disclosures" issued by ICAI, following are the related parties, description of their relationships and transactions carried out with them during the year in the ordinary course of business:

Subsidiary Companies

Meghalaya Minerals & Mines Ltd. , Badarpur Energy Pvt. Ltd. , Cement International Ltd., Goombira Tea Co. Ltd., Chargola Tea Co. Pvt. Ltd., Singlacherra Tea Co. Pvt. Ltd., Valley Strong Cements (Assam) Ltd.

Associates

M/s. Nefa Udyog, Meghalaya Cements Ltd., Balaji Udyog Ltd. North East Power & Infra Ltd., Valley Strong Cements Ltd.

Key Management Personnal and their relatives

Kamakhya Chamaria (Vice Chairman & Managing Director), Bijay Kumar Garodia (Chairman & Whole Time Director), Santosh Kumar Bajaj (Whole Time Director), J.L. Anchalia (Chief Financial Officer) , Prahlad Rai Chamaria (Non -Ex. Director), Mahendra Kumar Agarwal (Vice Chairman)

(8) In pursuance of AS -28 "Impairment of Assets" issued by ICAI, the company reviewed its carrying cost of assets with value in use on the basis of future earnings and on such review, management is of the view that in the current financial year impairment of assets is not considered necessary.

(9) In the opinion of the management and to the best of their knowledge and belief the value on realization of loans, advances and other current assets in the ordinary course of business will not be less than the amount as they are stated in the financial statements.

(10) The company deals in only one Segment i.e. cement manufacturing. There is no separate reportable segment as required by AS - 17 "Segment Reporting".

(11) Previous year figures :|Till the year ended 31st March, 2011, the company was using pre -revised Schedule -VI to the Companies Act, 1956, for preparation and presentation of its financial statements. During the year ended 31st March, 2012, the revised Schedule -VI notified under the Companies Act, 1956, has become applicable to the company. The company has reclassified previous year figures to confirm to this year's classification.


Mar 31, 2010

(1) Capital Commitments

The estimated amount of Contracts remaining to be executed on Capital Account and not provided for amounts to Rs. 101.19 Lakhs (Previous year: Rs. 51.53 Lakhs)

(2) Contingent liabilities not provided for:

(a) Bank Guarantee issued by Banks Mil (Previous Year - Rs. 2,25,000)

(b) Corporate Guarantees given to Financial Institutions/ Banks on beholf of wholly owned subsidiaries: Rs. 3,800 Lakhs (Previous year -3,100 Lakhs)

(c) Claims against the company not acknowledged as debts: Disputed demands of Income-Tax; pending before the Appellate Tribunal -. Rs.556.87 lakhs for Assessment Year 2005-06 and 2006-07 (Previous year- Rs. 282.55 lakhs)

(3) Additional information in pursuant to the provision or paragraphs 3 & 4 of port II of schedule VI to the Companies Act, 1956 to (he extent applicable to the company:

(4) During the year an amount of Rs. 16,98,910/- was paid to selling agents of the company as Sales Commission. (Previous Year Rs. 18,22,958/-)

(5) Remuneration paid to Directors during the year: Rs. 67,00,000/- (Previous Year: Rs. 47,00,000/-)

(6) GOVT. SUBSIDIES

Insurance and interest subsidy amounting to Rs. 12,96,688/- (as at 31.03.2009 Rs. 15,13,845/-) and 85,70,808/- (as at 31.03.2009 Rs. 59,26,031/-(respectively has been adjusted from related overheads and shown as receivable forming part of foans and advances. During the year Excise Duty amounting 1o Rs. 5,31,96,366/- (previous yeor : 5,58,10,177/-) has been refunded back by Govt, of India.

(7) The Company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and, hence disclosure relating to amounts unpaid at the year end, interest paid/ payable under this Act has not been given.

(8) Employee Defined Benefits:

(a) Defined Contribution Plans

The Company has recognized an expense of Rs. 12,06,375/- (Previous year Rs 10,43,664/-) towards the defined contribution plans.

(9) Disclosure in respect of Related Parties;

Pursuant to Accounting Standard - 18 " Related Party Disclosures" issued by ICAI, following are the related parties, description of their relationships and transactions carried out with them during the year in the ordinary course of business:

Subsidiary Companies (with effect from 31.03.2006)

Meghalaya Minerals & Mines Lid. Badarpur Energy. Pvt. Ltd. Cement International Ltd. Goombira Tea Co. Pvt. Ltd. Chargola Tea Co. Pvt. Ltd. Singlacherra Tea Co. Pvt. Ltd.

Associates

M/s. Nefa Udyog

M/s. Meghalaya Cements Ltd.

M/s, Balaji Udyog Ltd.

North East Power & Infra Ltd.

Valley Strong Cements Lid.

Valley Strong Cements (Assam) Ltd.

Key Management Personnel and their relatives

Kamakhya Chamaria (Vice Chairman & Managing Director) Bijay Kumar Garodia (Chairman & Whole Time Director) Santosh Kumar Bajaj (Whole Time Director) J.L. Anchalia (Chief Financial Officer) Prahlad Rai Chamaria (Non-Ex. Director) Mahenctr^^KQJTtarAgarwol (Vice Chairman)

(10) Balance of Sundry Debtors; Creditors and advances are subject to confirmation from respective parties.

(11) In the opinion of the management the current assets and loans and advances are having value, at least equal to the amount as they are stated in financial statements, if realised in the ordinary course of business.

(12) Expenditure on purchased software (ERP) and IT rjetoTed^xpeljfiBs are written off over a period of three years.

(13) In pursuance of AS -28 "Impairment of Assets" issued by ICAI, (he company reviewed its carrying cost of assets with value in use on the basis of future earnings and on such review, management is of the view that in the current financial year impairment of assets is not considered necessary.

(14) Taxation

a) Current Tax:

The company is eligible for 100% income-tax exemption under section 80-IC. The current years provision for income-tax has been calculated on the basis of the provisions of Minimum Alternative Tax (MAT) under section 115JB and entitlement of Tax credit of MAT has been taken as per section 115JAA of the Income-Tax Act, 1961.

b) Deferred Tax:

Deferred tax liability has been recognized in respect of onSy those timing differences which originate during the tax holidays and are not likely to reverse during the tax holiday period to the extent income is subject to deduction during the tax holiday period as per Income Tax Act, 1961. Deferred lax assets are recognised only to the extent there is reasonable certainty of realization in future The tax liability has been calculated al enacted future tax rates.

The tax import for the above purpose hos been arrived a) by applying the enacted future tax rate for Indian companies under the Income Tax Act, 1961.

c) Fringe Benefit Tax

Provision for Fringe Benefit tax has been separately shown in the profit & ioss account in accordance with the guidance note issued by the 1CAI.

(15) The company deals in only one Segment i.e. cement manufacturing. There is no separate reportable segment as required by AS - 17 "Segment Reporting".

(16) Previous year figures have been regrouped/ restated wherever necessary.

(17) Figures have been rounded off to the nearest rupee.

 
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