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Notes to Accounts of Beekay Steel Industries Ltd.

Mar 31, 2015

1. Terms & Rights attached to Equity Shares

a) The Company has one class of equity shares having a par value of '10/- each. Each holder of equity shares is entitled to one vote per share and in the event of liquidation,the shareholders of Equity shares of the company are eligible to receive the remaining assets of the company after distribution of all preferential amounts in proportion to their shareholding.

b) The Company has one class of Preference Share which are non convertible reedemable of Rs.100/- each. Such Shareholders have right to receive fixed preferential dividend. However no preferential shares are outstanding on the date of Balance Sheet.

2. A(i) Details of Securities

Term Loan From Allahabad Bank are secured by charge on exclusive mortgage of lease hold land at Adityapur, Jamshedpur and fixed assets and Current assets of the Company's unit at Jamshedpur both Present and Future and Personal guarantee of Directors.

Term Loan From Punjab National Bank are secured by equitable mortage of Land and other Fixed Assets of the Company's unit named " Beekay Structural Steels-TMT" at Industrial Park, Parwada, Andhra Pradesh.

Car loan from HDFC Bank are secured on Vehicles.

3. Details of Securities

Working Capital Loan are secured by first hypothecation on entire current assets of the Company including stocks, book debts and other Current Assets of all the units both present & future ranking pari-passu basis with working capital lending Banks under consortium and Personal guarantee of some Directors and Second Charge on Fixed Assets (movable and immovable) of the Companies.

4. Security on Term Loan is disclosed under para 4.1.A(i).

(II) The obligation of gratuity as on 31st March, 2015 ascertained by the management is Rs.19,795,379/- (Previous year Rs. 14,996,334/-) and accordingly current year provision to be recognised in the Statement of Profit & Loss is Rs. 51,01,413/- (Previous year Rs. 3,681,758/-).

5. As disclosed above, the obligation of gratuity ascertained as per acturial valuation is lower than the obligation ascertained by the management, therefore according to principle of conservatism, higher of the above has been recognised as Provision for Gratuity in the Balance Sheet and have been charged accordingly from the Statement of Profit & Loss.

6. Transactions With Related Parties :

As per Accounting Standard 18, the disclosures of the transactions with the related parties are given below.

List of Related Parties with whom Transactions have taken place and their relationships.

Name of Related Parties

a) Key Management Personnel

1. Suresh Chand Bansal

2. Mukesh Chand Bansal

3. Vikas Bansal

4. Manav Bansal

5. Gautam Bansal

b) Enterprises over which Key Management Persons to its Relative have its Interest:

i) Associated Companies:

1. AKC Steel Industries Limited

2. B.P Spring & Engineering Co. (Pvt) Limited

3. Century Vision Private Limited

4. Manvik Estate Private Limited

5. Emerald Suppliers Private Limited

6. Tirumala Holdings Private Limited

ii) Associated Enterprises:

1. B. L. Bansal & Sons (HUF)

2. Mukesh Chand Bansal & Others

3. Beekay International

4. Thirupathy Bright Industries

7. Contingent Liabilities and Commitments

1. The Company is contingently liable in respect of the following which are not provided for in the accounts but are separately disclosed here:

i) Guarantees of Rs.7,15,00,000/- (Previous year Rs.6,65,00,000/-) issued by Banks in favour of certain parties against which Bank Fixed Deposit Receipts of Rs.2,70,58,100/- (Previous year Rs.67,50,000/-) are pledged with the Banks.

ii) Claims against the Company disputed and not acknowledged as debts in respect of:

a) Central Excise Duty for Rs.8,31,204/- (Previous Year Rs.8,31,204/-) is in appeal before Hon'ble High Court, Kolkata and the matter is pending in appeal.

b) Central Excise Duty for Rs.4,20,803/- (Previous Year Rs.4,20,803/-) is in remand before Jt. Commissioner of Central Excise, Jamshedpurand the matters pending in appeal.

c) Central Excise Duty for Rs.94,185/- (Previous Year Rs.94,185/-) is in remand before Customs, Excise & Service Tax Appellate Tribunal, EZB, Kolkata and the matters pending in appeal.

d) Central Excise Duty including Service Tax for Rs.Nil/- (Previous Year Rs. 13,47,300/-) is in appeal before Customs, Excise & Service Tax Appellate Tribunal, Bangalore and the matters pending in appeal.

e) Central Excise Duty for Rs. 5,90,078/- (Previous Year Rs. 72,50,835/-) is in appeal before Commissioner of Central Excise (Appeals-Visakhapatnam) and the matters is pending in appeal.

f) Central Excise Duty including Service Tax for Rs.31,50,000/- (Previous Year Rs.31,50,000/-) is in appeal before Customs, Excise & Service Tax Appellate Tribunal, Kolkata and the matters pending in appeal.

g) Sales Tax for Rs. Nil/- (Previous Year Rs.40,13,333/-) including penalty is pending with the CIT(Appeal), Jamshedpur for escapement of sales turnoveras per objection by Audit Team fortheYear2008-09.

h) Sales Tax for Rs. Nil/- (Previous Year Rs.14,40,730/-) is pending with the Appellate Deputy Commissioner(CT), Visakhapatnam for export sales not covered by proper documents and disallow of submission of "H" Forms for the year 2007-08

i) Sales Tax for Rs. Nil/- (Previous Year 2,95,46,895/- is pending with the Appellate Deputy Commissioner(CT), Visakhapatnam for interstate sales of Iron & Steel not covered by" C" Forms for the year 2009-10

j) Central Excise Duty for Rs.2,10,156/- (Previous Year 2,10,156/-) including penalty is pending in appeal with Commissioner of Central Excise(Appeals), Chennai for disallow of cenvat on capital goods .

k) Income Tax for Rs. 7,61,42,440/- (Previous Year Rs.Nil) is pending with Commissioner of Income Tax (Appeals), Kolkata fortheyear2011-12

l) Income Tax for Rs. 60,63,651/-(Previous Year Rs.Nil) is pending with Income Tax Appellate Tribunal, Kolkata for the Year 2004-05

m) Central Excise Duty for Rs.4,93,53,416/- (Previous Year Nil/-) is pending in with Commissioner of Central Excise & Service Tax, Jamshedpur for Excise Duty availment on Supplementary invoices raised by Tata Steel forthe period Jan' 2009 to Dec' 2013.

iii) Estimated amount of capital contract (net of advances) Rs. 87,95,000/- (Previous Year Rs.2,57,54,000/-) remaining to be executed.

8. Other Notes.

a) The Company's Chengalpet Unit has availed for deferral of interest free sales tax w.e.f. 01.12.2000, not exceeding Rs.651.10 Lacs. The unit has availed Rs.80.32 Lacs and made a payment of Rs.1,78,44,074/- relating to 2001-2002 & 2002-03. The Net Sales tax deferred as on 31.03.2015 is Rs.80,32,035/- (Previous yearRs.2,58,76,109/-).

b) Pending Final Settlement, liability of Bonus Rs.30,60,267/- (Previous year Rs.29,89,576/-) has been provided in the accounts.

c) In the opinion of the Directors, all the Assets other than Fixed Assets and Non-Current Investments have a value on realisation in the ordinary course of Business, atleast equal to the amount at which they are stated in the Balance Sheet. Provision for depreciation and all known liablities is adequate and not in excess of what is required.

d) In the opinion of the Directors the Current Assets, Loans & Advances, have the value at which they are stated to the Balance Sheet, if realised in the ordinary course of business. Further the confirmation of Balances from several parties having transactions with the Company have yet to be obtained.

e) The liability for Gratuity as on 31st March, 2015 has been ascertained by the management as Rs.19,795,379/- (Previous year Rs.14,996,334/-) and provided accordingly. Payments made during the year has been charged to Accounts.

f) Depreciation on Fixed Assets of the Units/Branches of the company which are under construction/progress is capitalised as an cwip - indirect expense & have not been charged to statement of profit & loss of the company, however WDV of the respective assets have been shown after charging such depreciation.

g) Unamortised part of Miscallaneous/ Preliminary and other deferred revenue expenditure have been presented under the head Other Non-Current Assets.

h) Company has acquired land at Bobbili, Vizianagram and entered into an agreement for Sales with Andhra Pradesh Industrial Infrastructure Corporation Ltd. and shown the amount as advance against land as the conveyance of title is contingent on commencement of commercial production on the said plot of Land. Necessary Capitalisation will be made on commencement of production.

i) Under the Micro, Small and Medium Enterprise Development Act, 2006 certain disclosures are required to be made relating to Micro, Small and Medium Enterprise. The Company have not reclassified the creditors hence disclosure of overdue payment and interest payable under aforesaid Act, is not ascertained.

j) Previous year's figures have been regrouped/reclassified wherever found necessary to confirm to current year's presentation


Mar 31, 2014

1.1 Terms & Rights attached to Equity Shares

a) The Company has only one class of equity shares having a par value of Rs.10/- each. Each holder of equity shares is entitled to one vote per share and in the event of liquidation,the shareholders of Equity shares of the company are eligible to receive the remaining assets of the company after distribution of all preferential amounts in proportion to their shareholding.

b) The Company has one class of Preference Share which are non convertible reedemable of Rs.100/- each. Such Shareholders have right to receive fixed preferential dividend. However no preferential shares are outstanding on the date of Balance Sheet.

2.1. A(i) Details of Securities

Term Loan From Allahabad Bank are secured by charge on Exclusive Mortgage of lease hold land at Adityapur, Jamshedpur and fixed assets and Current assets of the Company''s unit at Jamshedpur, Jharkhand both Present and Future and Personal guarantee of Directors.

Term Loan From Punjab National Bank are secured by equitable mortage of Land and other Fixed Assets of the Company''s unit named " Beekay Structural Steels-TMT" at Industrial Park, Parwada, Andhra Pradesh.

Details of Securities

Working Capital Loan are secured by 1st hypothecation on entire current assets of the Company including stocks, book debts and other Current Assets of all units both present & future ranking pari-passu basis with working capital lending Banks under consortium and Personal guarantee of some Dircetors and 2nd Charge on Companies Fixed Assets (movable and immovable).

3) Transactions with related parties :

List of Related Parties with whom Transactions have taken place and their relationships.

Name of Related Parties

a) Key Management Personnel

1. Suresh Chand Bansal

2. Mukesh Chand Bansal

3. Vikas Bansal

4. Manav Bansal

5. Gautam Bansal

b) Enterprises over which Key Management Persons to its Relative have its Interest: i) Associated Companies:

1. AKC Steel Industries Limited

2. B. P. Spring & Engineering Co (Pvt) Limited

3. Century Vision Private Limited

4. Beekay Infracon Private Limited

5. Manvik Estate Private Limited

6. Emerald Suppliers Private Limited

7. Tirumala Holdings Private Limited

ii) Associated Enterprises:

1. B. L. Bansal & Sons (HUF)

2. Mukesh Chand Bansal & Others

3. Beekay International

4. Thirupathy Bright Industries

4) Contingent Liabilities and Commitments

1. The Company is contingently liable in respect of the following which are not provided for in the accounts but are separately disclosed here :

i) Guarantees of Rs. 6,65,00,000/- (Previous year Rs. 3,91,92,015/-) issued by Banks in favour of certain parties against which Bank Fixed Deposit Receipts of Rs. 67,50,000/- (Previous year Rs. 41,29,228/-) are pledged with the Banks.

ii) Claims against the Company disputed and not acknowledged as debts in respect of :

a) Central Excise Duty for Rs. 8,31,204/- (Previous Year Rs. 8,31,204/-) is in appeal before Hon''ble High Court, Kolkata and the matter is pending in appeal.

b) Central Excise Duty for Rs. 4,20,803/- (Previous Year Rs. 18,20,803/-) is in remand before Jt. Commissioner of Central Excise, Jamshedpur and the matters pending in appeal.

c) Central Excise Duty for Rs. 94,185/- (Previous Year Rs. 94,185/-) is in remand before Customs, Excise & Service Tax Appellate Tribunal, EZB, Kolkata and the matters pending in appeal.

d) Central Excise Duty including Service Tax for Rs. 13,47,300/- (Previous Year Rs. 20,05,899/-) is in appeal before Customs, Excise & Service Tax Appellate Tribunal, Bangalore and the matters pending in appeal.

e) Central Excise Duty for Rs. 72,50,835/- (Previous Year Rs. 69,75,737/-) is in appeal before Commissioner of Central Excise (Appeals-Visakhapatnam) and the matters pending in appeal.

f) Sales Tax for Rs. Nil/- (Previous Year 17,88,603/-) is pending with the Appellate Deputy Commissioner, Commercial Taxes, Kanchipuram, Tamil Nadu for Input Tax Credit Amount lapsed to government for Export.

g) Central Excise Duty including Service Tax for Rs. 31,50,000/- (Previous Year Rs. 31,50,000/-) is in appeal before Customs, Excise & Service Tax Appellate Tribunal, Kolkata and the matters pending in appeal.

h) Sales Tax for Rs. 40,13,333/- (Previous Year Nil) including penalty is pending with the CIT (Appeal), Jamshedpur for escapement of sales turnover as per objection by Audit Team for the Year 2008-09.

i) Sales Tax for Rs. 14,40,730/- (Previous Year Nil) is pending with the Appellate Deputy Commissioner (CT), Visakhapatnam for export sales not covered by proper documents and disallow of submission of "H" Forms for the year 2007-08.

j) Sales Tax for Rs. 2,95,46,895/- (Previous Year Nil) is pending with the Appellate Deputy Commissioner (CT), Visakhapatnam for interstate sales of Iron & Steel not covered by " C" Forms for the year 2009-10.

k) Central Excise Duty for Rs. 2,10,156/- (Previous Year Nil) including penalty is pending in appeal with Commissioner of Central Excise (Appeals), Chennai for disallow of cenvat on capital goods.

iii) Estimated amount of capital contract (net of advances) Rs. 2,57,54,000/- (Previous Year Rs. 8,19,83,911/-) remaining to be executed.

5) Other Notes.

(a) The Company''s Chengalpet Unit has availed for deferral of interest free sales tax w.e.f. 01.12.2000, not exceeding Rs. 651.10 Lacs. The unit has availed Rs. 258.76 Lacs and makes a payment of Rs. 1,86,79,208/- relating to 2003-04 & 2004-05. The Net Sales tax deferred as on 31.03.2014 is Rs. 2,58,76,109/- (Previous year Rs. 4,45,55,317/-).

(b) Pending Final Settlement, liability of Bonus Rs. 29,89,576/- (Previous year Rs. 25,20,460/-) has been provided in the accounts.

(c) In the opinion of the Directors, all the Assets other than Fixed Assets and Non-Current Investments have a value on realisation in the ordinary course of Business, atleast equal to the amount at which they are stated in the Balance Sheet. Provision for depreciation and all known liablities is adequate and not in excess of what is required.

(d) In the opinion of the Directors the Current Assets, Loans & Advances, have the value at which they are stated to the Balance Sheet, if realised in the ordinary course of business. Further the confirmation of Balances from several parties having transactions with the Company have yet to be obtained.

(e) The liability for Gratuity as on 31st March, 2014 has been ascertained by the management as Rs. 14,996,334/- (Previous year Rs. 11,456,210/-) and provided accordingly. Payments made during the year has been charged to Accounts.

(f) Depreciation on Fixed Assets of the Units/Branches of the company which are under construction/progress is capitalised as an cwip - indirect expense & have not been charged to statement of profit & loss of the company ,however WDV of the respective assets have been shown after charging such depreciation.

(g) Unamortised part of Miscallaneous/ Preliminary and other deferred revenue expenditure have been presented under the head Other Non-Current Assets.

(h) Company has acquired land at Bobbili, Vizianagram and entered into an agreement for Sales with Andhra Pradesh Industrial Infrastructure Corporation Ltd. and shown the amount as advance against land as the conveyance of title is contingent on commencement of commercial production on the said plot of Land. Necessary Capitalisation will be made on commencement of production.

(i) Under the Micro, Small and Medium Enterprise Development Act, 2006 certain disclosures are required to be made relating to Micro, Small and Medium Enterprise. The Company have not reclassified the creditors hence disclosure of overdue payment and interest payable under aforesaid Act, is not ascertained.

(j) Previous year''s figures have been regrouped/reclassified wherever found necessary to confirm to current year''s presentation.


Mar 31, 2013

1) Transactions with related parties :

List of Related Parties with whom Transactions have taken place and their relationships.

Name of Related Parties

a) Key Management Personnel

1. Suresh Chand Bansal

2. Mukesh Chand Bansal

3. Vikas Bansal

4. Manav Bansal

5. Gautam Bansal

b) Enterprises over which Key Management Persons to its Relative have its Interest: i) Associated Companies:

1. AKC Steel Industries Limited

2. B.P.Spring & Engineering Co(Pvt) Limited

3. Century Vision Private Limited

4. Beekay Infracon Private Limited

5. Manvik Estate Private Limited

6. Emerald Suppliers Private Limited

7. Tirumala Holdings Private Limited

ii) Associated Enterprises:

1. B. L. Bansal & Sons (HUF)

2. Mukesh Chand Bansal & Others

3. Beekay International

4. Thirupathy Bright Industries

2) Contingent Liabilities and Commitments

1. The Company is contingently liable in respect of the following which are not provided for in the accounts but are separately disclosed here :

i) Guarantees of ? 3,91,92,015/- (Previous year ? 2,75,00,000/-) issued by Banks in favour of certain parties against which Bank Fixed Deposit Receipts of ? 41,29,228/- (Previous year ? 28,91,498/-) are pledged with the Banks.

ii) Claims against the Company disputed and not acknowledged as debts in respect of :

a) Appeal Filed on 23.05.2005, Appellate City Commissioner - C.T. Rural Division, Hyderabad for an amount - As per Book the Balance amount is ? 5,12,273/-, Company have filed appeal for ? 4,34,537/-(Previous Year ? 4,34,537/-) Balance ? 77,736/- to be treated as expenses against non receipt of C Form. and appeal dated 22.06.2005 of ? 2,38,451/- (Previous Year ? 2,38,451/-) for the financial year 2003-04 and another appeal of ? 49,781/- (Previous Year ? 49,781/-)- for the financial year 2004-05 have been filed and the matters pending in appeal.

b) Sales Tax ? Nil - (Previous year ? 4,24,400/-) pending with Additional Commissioner, Commercial Taxes, Kolkata and the matter is pending in appeal.

c) Central Excise Duty for ? 8,31,204/- (Previous Year ? 8,31,204/-) is in appeal before Hon''ble High Court, Kolkata and the matter is pending in appeal.

d) Central Excise Duty for ? 18,20,803/- (Previous Year ? 18,20,803/-) is in remand before Jt. Commissioner of Central Excise, Jamshedpur and the matters pending in appeal.

e) Central Excise Duty fo ? 94,185/- (Previous Year ? 94,185/-) is in remand before Customs, Excise & Service Tax Appellate Tribunal, EZB, Kolkata and the matters pending in appeal.

f) The Assistant commissioner Of Central Excise Div -II, Viskhapatnam-1 Commissionarate has issued an order vide No: 15/2010/C No: V /15/17/2009-Adj dt:20.04.2010 demanding the company for an amount of ? 40,971/- (Including Edu. Cess & Penalty) with applicable interest and the reasons for the payment stated as being the irregularly availed credit on service tax paid on carriage inwards in respect of inputs cleared as such during the period 01.01.2005 to 31.10.2008. The company has not paid amount for the matter and instead filed an appeal before commissioner of Central Excise, Customs and service tax (Appeals) and the matters pending in appeal.

g) Central Excise Duty including Service Tax for ? 20,05,899/- (Previous Year ? 20,05,899/-) is in appeal before Customs, Excise & Service Tax Appellate Tribunal, Bangalore and the matters pending in appeal.

h) Central Excise Duty for ? 69,75,737/- (Previous Year ? 37,79,680/-) is in appeal before Commissioner of Central Excise (Appeals-Visakhapatnam) and the matters pending in appeal.

i) Sales Tax for ? 17,88,603/- (Previous Year ? NIL) is pending with the Appellate Deputy Commissioner, Commercial Taxes, Kanchipuram, Tamil Nadu for Input Tax Credit Amount lapsed to government for Export.

j) Central Excise Duty including Service Tax for ? 31,50,000/- (Previous Year ? 31,50,000/-) is in appeal before Customs, Excise & Service Tax Appellate Tribunal, Kolkata and the matters pending in appeal.

iii) Estimated amount of capital contract (net of advances) ? 8,19,83,911/- (Previous Year ? 3,01,954,910/-) remaining to be executed.

3) Other Notes.

(a) The Company''s Chengalpet Unit has availed for deferral of interest free sales tax w.e.f. 01.12.2000, not exceeding ? 651.10 Lacs. The unit has availed ? 445.55 Lacs and makes a payment of ? 92,48,164 relating to 2001-2002. The Net Sales tax deferred as on 31.03.2013 is ? 4,45,55,317/- (Previous year ? 5,38,03,481/-).

(b) Pending Final Settlement, liability of Bonus ? 25,20,460/- (Previous year ? 20,21,358/-) has been provided in the accounts.

(c) In the opinion of the Directors, all the Assets other than Fixed Assets and Non-Current Investments have a value on realisation in the ordinary course of Business, atleast equal to the amount at which they are stated in the Balance Sheet. Provision for depreciation and all known liablities is adequate and not in excess of what is required.

(d) In the opinion of the Directors the Current Assets, Loans & Advances, have the value at which they are stated to the Balance Sheet, if realised in the ordinary course of business. Further the confirmation of Balances from several parties having transactions with the Company have yet to be obtained.

(e) The liability for Gratuity as on 31st March, 2013 has been ascertained on actuarial basis by the management as ? 11,456,210/- (Previous year ? 9,701,450/-) and provided accordingly. Payments made during the year has been charged to Accounts.

(f) Company has acquired land at Bobbili, Vizianagram and entered into an agreement for Sales with Andhra Pradesh Industrial Infrastructure Corporation Ltd. and shown the amount as advance against land as the conveyance of title is contingent on commencement of commercial production on the said plot of Land. Necessary Capitalisation will be made on commencement of production.

(g) Under the Micro, Small and Medium Enterprise Development Act, 2006 certain disclosures are required to be made relating to Micro, Small and Medium Enterprise. The Company have not reclassified the creditors hence disclosure of overdue payment and interest payable under aforesaid Act, is not ascertained.

(h) Previous year''s figures have been recast/restated where necessary.


Mar 31, 2012

1) Transactions with related parties:

List of Related Parties with whom Transactions have taken place and their relationships.

Name of Related Parties

a) Key Management Personnel

1. Suresh Chand Bansal

2. Mukesh Chand Bansal

3. Vikas Bansal

4. Manav Bansal

5. Gautam Bansal

b) Enterprises over which Key Management Persons to its Relative have its Interest: i) Associated Companies:

1. AKC Steel Industries Limited

2. B.P.Spring & Engineering Co(Pvt) Limited

3. Century Vision Private Limited

4. Manvik Estate Private Limited

5. Emerald Suppliers Private Limited

6. Tirumala Holdings Private Limited

ii) Associated Enterprises:

1. B. L. Bansal & Sons (HUF)

2. Mukesh Chand Bansal & Others

3. Beekay International

4. Thirupathy Bright Industries

2) Contingent Liabilities and Commitments

1. The Company is contingently liable in respect of the following which are not provided for in the accounts but are separately disclosed here :

i) Guarantees of RS. 275,00,000/- (Previous year RS. 260,00,000/-) issued by Banks in favour of certain parties against which Bank Fixed Deposit Receipts of RS. 28,91,498/- (Previous year RS. 26,41,498/-) are pledged with the Banks.

ii) Claims against the Company disputed and not acknowledged as debts in respect of :

a) Appeal Filed on 23.05.2005, Appellate City Commissioner-C.T.Rural Division, Hyderabad for an amount - As per Book the Balance amount is RS. 5,12,273/-, Company have filed appeal for RS. 4,34,537/- (Previous Year Rs. 4,34,537/-) Balance RS. 77,736/- to be treated as expenses against non receipt of C Form. and appeal dated 22.06.2005 of RS. 2,38,451/- (Previous Year Rs. 2,38,451/-) for the financial year 2003-04 and another appeal of RS. 49,781/(Previous Year Rs. 49,781/-)- for the financial year 2004-05 have been filed and the matters pending in appeal.

b) Sales Tax RS. 4,24,400/- (Previous year RS. 3,12,722/-) pending with Additional Commissioner, Commercial Taxes, Kolkata and the matter is pending in appeal.

c) SalesTaxRS. 13,87,213/- (Previous Year RS. 10,38,595/-) pending with Appellate Deputy Commissioner (CT), Visakhapatnam and the matter is pending in appeal.

d) Central Excise Duty forRS. 8,31,204/- (Previous Year RS. 8,31,204/-) is in appeal before Hon''ble High Court, Kolkata and the matter is pending in appeal.

e) Central Excise Duty forRS. 18,20,803/- (Previous Year RS. 18,20,803/-) is in remand before Jt. Commissioner of Central Excise, Jamshedpur and the matters pending in appeal.

f) Central Excise Duty for RS. 94,185/- (Previous Year RS. 94,185/-) is in remand before Customs, Excise & Service Tax Appellate Tribunal, EZB, Kolkata and the matters pending in appeal.

g) The Assistant commissioner Of Central Excise Div -II, Viskhapatnam-1 Commissionarate has issued an order vide No: 15/2010/C No: V /15/17/2009-Adj dt:20.04.2010 demanding the company for an amount of RS. 40,971/- (Including Edu. Cess & Penalty) with applicable interest and the reasons for the payment stated as being the irregularly availed credit on service tax paid on carriage inwards in respect of in puts cleared as Such during the period 01.01.2005 to 31.10.2008. The company has not paid amount for the matter and instead filed an appeal before commissioner of Central Excise, Customs and service tax (Appeals) and the matters pending in appeal.

h) Central Excise Duty including Service Tax for RS. 20,05,899/- (Previous Year RS. Nil/-) is in appeal before Customs, Excise & Service Tax Appellate Tribunal, Bangalore and the matters pending in appeal.

i) Central Excise Duty for RS. 37,79,680/- (Previous Year RS. Nil/-) is in appeal before Commissioner of Central Excise (Appeals-Visakhapatnam) and the matters pending in appeal.

j) Central Excise Duty including Service Tax for RS. 31,50,000/- (Previous Year RS. Nil/-) is in appeal before Customs, Excise & Service Tax Appellate Tribunal, Kolkata and the matters pending in appeal.

iii) Estimated amount of capital contract (net of advances) RS. 3,01,954,910/- (Previous Year RS. 72,599,734/-) remaining to be executed.

3) Other Notes.

(a) The Company''s Chengalpet Unit has availed for deferral of interest free sales tax w.e.f. 01.12.2000, not exceeding RS. 651.10 Lacs. The unit has availed RS. 538.03 Lacs and makes a payment of RS. 4,413,319 relating to 2000-2001. The Net Sales tax deferred as on 31.03.2012 is RS. 53,803,481/- (Previous year RS. 58,216,800/-).

(b) Pending Final Settlement, liability of Bonus RS. 2,021,358/- (Previous year RS. 16,78,414/-) has been provided in the accounts.

(c) In the opinion of the Directors, all the Assts other than Fixed Assets and Non-Current Investments have a value on realisation in the ordinary course of Business, atleast equal to the amount at which they are stated in the Balance Sheet. Provision for depreciation and all known liablities is adequate and not in excess of what is required.

(d) In the opinion of the Directors the Current Assets, Loans & Advances, have the value at which they are stated to the Balance Sheet, if realised in the ordinary course of business. Further the confirmation of Balances from several parties having transactions with the Company have yet to be obtained.

(e) The liability for Gratuity as on 31st March, 2012 has been ascertained on actuarial basis by the management as RS. 9,701,450/- (Previous year RS. 7,957,623/-) and provided accordingly. Payments made during the year has been charged to Accounts.

(f) Company has acquired land at Bobbili, Vizianagram and entered into an agreement for Sales with Andhra Pradesh Industrial Infrastructure Corporation Ltd. and shown the amount as advance against land as the conveyance of title is contingent on commencement of commercial production on the said plot of Land. Necessary Capitalisation will be made on commencement of production.

(g) Under the Micro, Small and Medium Enterprise Development Act, 2006 certain disclosures are required to be made relating to Micro, Small and Medium Enterprise. The Company have not reclassified the creditors hence disclosure of overdue payment and interest payable under aforesaid Act, is not ascertained.

(h) Previous year''s figures have been recast/restated where necessary.


Mar 31, 2011

1. The Company is contingently liable in respect of the following which are not provided for in the accounts but are separately disclosed here :

i) a) Guarantees of Rs. 260,00,000/-- (Previous year Rs. 220,00,000/-) issued by Banks in favour of certain parties against which Bank Fixed Deposit Receipts of Rs. 26,41,498/- (Previous year Rs.22,00,000/-) are lying lodged with the Banks.

ii) Claims against the Company disputed and not acknowledged as debts in respect of :

(a) (i) Sales Tax Rs. 7,22,769/- (Previous year Rs. 7,22,769/-) pending with Appellate Deputy Commissioner

(CT) - Rural Division, Hyderabad and the matter is pending in appeal.

(ii) Appeal Filed on 23.05.2005, Appellate City Commissioner-CT.Rural Division , Hyderabad for an amount -As per Book the amount is Rs. 5,12,273/-, company have filed appeal for Rs. 4,34,537/- Balance Rs. 77,736/- to be treated as expenses against non receipt of C Form and appeal dated 22.06.2005 of Rs. 2,38, 451/- for the financial year 2003-04 and another appeal of Rs.49,781/- for the financial year 2004-05 have been filed.

(b) (i) Sales Tax Rs. 3,12,722/- (Previous year Rs. 2,63,514/-) pending with Additional Commissioner, Commercial Taxes, Kolkata and the matter is pending in appeal.

(ii) Sales Tax Rs. 10,38,595/-(Previous Year Rs. Nil) pending with Appellate Deputy Commissioner (CT), Visakhapatnam and the matter is pending in appeal.

(c) Central Excise Duty for Rs. 8,31,204/- (Previous Year Rs. 8,31,204/-) is in appeal before Hon’ble High Court, Kolkata

(d) Central Excise Duty for Rs. 18,20,803/- (Previous Year Rs. 18,20,803/-) is in remand before Jt. Commissioner of Central Excise, Jamshedpur.

(e) Central Excise Duty for Rs. 94,185/- (Previous Year Rs. 94,185/-) is in remand before Customs, Excise & Service Tax Appellate Tribunal, EZB, Kolkata

(f) The Assistant commissioner Of Central Excise Div -II, Viskhapatnam-1 Commissionarate has issued an order vide No:15/2010/C No: V /15/17/2009-Adj dt:20.04.2010 demanding the company for an amount of Rs.20,749/- (Including Edu. Cess) with applicable interest and the reasons for the payment stated as being the irregularly availed credit on service tax paid on carriage inwards in respect of inputs cleared as Such during the period 01.01.05 to 31.10.2008. The company has not paid any amount for the matter and instead filed an appeal before commissioner of Central Excise, Customs and service tax ( Appeals).

iii) Estimated amount of capital contract (net of advances) Rs.7,25,99,734/- (Previous Year Rs. 5,19,04,061/-) remaining to be executed.

2. The Company’s Chengalpet Unit has availed for deferral of interest free sales tax for a period of nine years w.e.f. 01.12.2000, not exceeding Rs. 651.10 Lacs. The unit has availed Rs. 582.17 Lacs and makes a payment of Rs 15,60,998 relating to 2000-2001. The Net Sales tax deferred as on 31.03.2011 is Rs.5,82,16,800/- (Previous year Rs.6,27,88,008).

3. Pending Final Settlement, liability of Bonus Rs. 16,78,414/- (Previous year Rs. 8,04,906/-) has been provided in the accounts.

4. In the opinion of the Directors the Current Assets, Loans & Advances, have the value at which they are stated to the Balance Sheet, if realised in the ordinary course of business. Further the confirmation of Balances from several parties having transactions with the Company have yet to be obtained.

5. The liability for Gratuity as on 31st March, 2011 has been ascertained on actuarial basis by the management as Rs. 79,57,623/- (Previous year Rs. 71,06,000/-) and provided accordingly. Payments made during the year has been charged to Accounts.

6. Company has acquired land at Bobbili, Vizianagram and entered into an agreement for Sales with Andhra Pradesh Industrial Infrastructure Corporation Ltd. and shown the amount as advance against land as the conveyance of title is contingent on commencement of commercial production on the said plot of Land. Necessary Capitalisation will be made on commencement of production.

7 Under the Micro, Small and Medium Enterprise Development Act, 2006 certain disclosures are required to be made relating to Micro, small and Medium Enterprise. The Company has not received any intimation from “suppliers” regarding their status under the Micro, Small and Medium Enterprise Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

8. NOTES ON SECURITY OF SECURED LOANS: A. TERM LOANS

(a) State Bank of India

(Secured by Pari Passu charge on fixed assets and current assets of the Company’s unit named “Beekay Structurals Steels” at Autonagar, Vishakapatnam both present and future and personal guarantee of directors)

(b) Allahabad Bank

(Secured by Pari Passu charge on fixed assets and current assets of the Company’s unit named “Beekay Structurals Steels” at Autonagar, Vishakapatnam both present and future and personal guarantee of directors)

(c) HDFC Bank Limited

(Against hypothecation of Vehicles)

(d) Tata Capital Limited

(Against hypothecation of Vehicles)

(e) Axis Bank Limited

(Against hypothecation of Vehicles)

9. WORKING CAPITAL LOANS

(a) Allahabad Bank

(b) HDFC Bank Limited

(c) Debtors Under IBD

(d) State Bank of India

(e) Bank of Baroda

(Secured by way of hypothecation of stock, book debts and other current assets, (present and future) of the Company’s units and personal guarantee of some of the Directors)

10. Segment Report

The Company’s operation predominantly comprises one single reportable segment i.e. Manufacture and Sale of Steel Rods and Bars as per Accounting Standard - 17 - “Segment Reporting” issued by the Institute of Chartered Accountants of India. In view of above no segment reporting is made.

11. Deferred Taxation : (Pursuant to AS - 22 as issued by The ICAI)

During the year, the Company has accounted for Deferred Tax in accordance with the Accounting Standard - 22 “Accounting for Taxes on Income” issued by the Institute of Chartered Accountants of India.

The movement for Deferred Tax is given below :

12. Transactions with related parties pursuant to Accounting Standard - 18 “Related Party Disclosure” issued by the Institute of Chartered Accountants of India. (Pursuant to AS - 18 as issued by The ICAI)

List of Related Parties with whom Transactions have taken place and their relationships

Name of Related Parties

KEY MANAGEMENT PERSONNEL

1. Gautam Bansal

2. Suresh Chand Bansal

3. Mukesh Chand Bansal

4. Vikas Bansal

5. O P Bansal

ENTERPRISES OVER WHICH KEY MANAGEMENT PERSONS OR ITS RELATIVE HAVE ITS INTEREST OR ARE ABLE TO EXERCISE SIGNIFICANT INFLUENCE.

1. AKC Steel Industries Limited

2. Beekay International

3. Thirupathy Bright Industries

4. Balaji Bright Industries

5. Manvik Estate Private Limited

6. Mukesh Chand Bansal & Others

7. B. L. Bansal & Sons (HUF)

8. Aditya Bansal H.U.F

9. Ashwin Bansal H.U.F

10. Manisha Bansal

11. V. L. Bansal

12. Century Vision Private Limited

13. Beekay Fresh Agro Private Limited

14. Tirumala Holdings Private Limited

13. The figures of the previous year have been regrouped / reclassified to make them Comparable in Current year figures.

 
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