Notes to Accounts of Beekay Steel Industries Ltd.
Mar 31, 2023
Rights, preferences and restrictions attaching to Equity Shares
The Company has 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.
The Company has authorised Preference Share Capital which are non convertible redeemable of 100/- each. Such Shareholders have right to receive fixed preferential dividend. However no preferential shares are outstanding on the date of Balance Sheet.
The description, nature and purpose of each reserve within equity are as follows:
(a) Capital Reserve: Capital reserve will be utilised in accordance with provisions of the Act
(b) Share Premium: The amount received in excess of face value of the equity shares is recognised in Share Premium.
(c) General Reserve: The Company has transferred a potion of the net profit of the company before declaring dividend to general reserve persuant to the earlier provisions of Companies Act 1956. Mandatory transfer to general reserve is not required under the Companies Act 2013.
(d) Capital Redemption Reserve: The Company has recognised Capital Redemption Reserve on redemption of Preference Shares from its retained earnings. The amount in Capital Redemption Reserve is equal to nominal amount of the Preference Shares redeemed.
(e) Retained earnings: It comprise of accumulated profit/ (loss) of the Company. The movement is on account of following
(i) Rs. 10,914.12 lacs (31st March 2022: Rs. 15,705.23 lacs) was on account of profit/ (loss) incurred by the Company.
(ii) Rs. 190.72 lacs (31st March 2022: 190.72 lacs) was on account of dividend distribution
Nature of security and other terms
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 and future ranking pari-passu basis with working capital lending Banks under consortium and Personal guarantee of promoter directors and second charge on fixed assets (movable and immovable) of the Company
(A) Secured loan - terms of repayment
1. Allahabad Bank: Working capital loan amounting to Rs. Nil (31st March 2022: Rs.(-) 3.93 lacs).
2. State Bank of India: Working capital loan amounting to Rs. 5563.10 lac (31st March 2022: Rs. 4956.60 lac). Interest is payable at the rate of (6M MCLR 0.85%)
3. Punjab National Bank: Working capital amounting to Rs. 728.05 lac (31st March 2022: Rs. 2524.47 lac). Interest is payable at the rate of (12M MCLR 1.05%).
4. Yes Bank: Working capital amounting to Rs. 3617.65 lac (31st March 2022: Rs. 5097.98 lac). Interest is payable at the rate of ( 6M MCLR 0.50%)
Disclosures of payables to vendors as defined under the â Micro, Small and Medium Enterprise Development Act, 2006) is based on the information available with the Company regarding the status of registration of such vendors under the said Act, as per the intimation received from them on requests made by the Company. There are no overdue principal amounts/interest payable amounts for delayed payments to such vendors at the Balance Sheet date. There are no delays in payment made to such suppliers during the year or for any earlier years and accordingly there is no interest paid or outstanding interest in this regard in respect of payment made during the year or on balance brought forward from previous year.
Defined benefits - Gratuity
The Company''s gratuity benefit scheme for its employees in India is a defined benefit plan (funded).
The Company provides for gratuity from employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/ termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The gratuity plan is a funded plan and the company makes contributions to recognised funds in India. The Company does not fully fund the liability and maintains a target level of funding to be maintained over a period of time based on estimation of expected gratuity payments.
The DBO calculated as on 31st March, 2023 does not allow for the impact of the new definition of Wages under the proposed Code on Wages, 2019 issued by the Government of India.The revised wages applicable to the Gratuity Scheme have not been finalized by the Company and hence the results as well as the long term salary escalation rate assumption are based on the existing salary definition (Basic DA)
These defined benefit plans expose the Company to actuarial risks, such as currency risk, interest risk and market (investment) risk.
The Company expects to pay Rs 37,90,306 /- in contribution to its defined benefit plans during the year 2022-23 Inherent risk
The plan is defined benefit in nature which is sponsored by the Company. In particular, this exposes the Company, to actuarial risk such as adverse salary growth, change in demographic experience, inadequate return on underlying plan assets. This may result in an increase in cost of providing these benefits to employees in future. Since the benefits are lump sum in nature, the plan is not subject to longevity risk.
The following tables analyse present value of defined benefit obligations, expense recognised in Consolidated Statement of Profit and Loss, actuarial assumptions and other information.
35.2 Fair value measurement
The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchange in a current transaction between willing parties, other than in forced or liquidation sale.
The Company has established the following fair value hierarchy that categories the value into 3 levels. The inputs to valuation techniques used to measure fair value of financial instruments are:
Level 1: The hierarchy uses quoted (adjusted) prices in active markets for identical assets or liabilities. The fair value of all bonds which are traded in the stock exchanges is valued using the closing price or dealer quotations as at the reporting date.
Level 2: The fair value of financial instruments that are not traded in an active market (for example traded bonds, over the counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on company specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.
The management assessed that trade receivables, cash and cash equivalent, other bank balances, trade payable and other financial assets and liabilities approximate their carrying amounts largely due to the short term maturities of there instruments.
The fair value of the financial instruments is determined using net asset value at the respective reporting date
353 Financial risk management
The Company has exposure to the following risks arising from financial instruments:
(i) Credit risk
(ii) Liquidity risk
(iii) Market risk
Risk management framework
The Company''s principal financial liabilities comprises of borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company operations. The Company''s principal financial assets include trade and other receivables, investments and cash and cash equivalents that derive directly from its operations.
The Company''s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company''s primary risk management focus is to minimise potential adverse effects of market risk on its financial performance. The Company''s exposure to credit risk is influenced mainly by the individual characteristic of each customer and the concentration of risk from the top few customers. The Company''s risk management assessment and policies and processes are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company''s activities.
This note presents information about the Company''s exposure to each of the above risks, the Company''s objectives, policies and processes for measuring and managing risk.
(i) Credit risk
Credit risk is the risk of financial loss of the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally form the Company receivables from customers and loans. Credit arises when a customer or counterparty does not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing/investing activities, including deposits with bank. The Company has no significant concentration of credit risk with any counterparty. The carrying amount of financial assets represent the maximum credit risk exposure.
Trade receivable
The risk management committee has established a credit policy under which each new customer is analysed individually for creditworthiness before the Company''s standard payment and delivery terms and conditions are offered. The Company''s review includes external ratings, if they are available, financial statements, credit agency information, industry information and in some cases bank references.
Trade receivables are primarily unsecured and are derived from revenue earned from customers. Credit risk is managed through credit approvals, establishing credit limits and by continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. As per simplified approach, the Company makes provision of expected credit loss on trade receivables using a provision matrix to mitigate the risk of default payments and makes appropriate provisions at each reporting date whenever is for longer period and involves higher risk.
(ii) Liquidity risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of credit facilities to meet obligations when due. The Company''s finance team is responsible for liquidity, funding as well as settlement management. In addition, Processes and policies related to such risks are overseen by senior management. Management monitors the Company''s liquidity position through rolling forecasts on the basis of expected cash flows.
The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.
Exposure to liquidity risk
The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date based on contractual undiscounted payments
(iii) Market risk
Market risk is the risk of loss of future earnings, fair value or future cash flows that may result from a change in the price of a financial instrument . The value of a financial instrument may change as a result of changes in the interest rates and other market changes that effect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments, receivables, payables and borrowings.
(a) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company exposure to the risk of changes in market interest rates related primarily to the Company''s borrowings with floating interest rates. The Company constantly monitors the credit markets and rebalances its financing strategies to achieve an optimal maturity profile and financing cost.
Sensitivity analysis
Fixed rate instruments that are carried at amortised cost are not subject to interest rate risk for the purpose of sensitive analysis.
(b) Equity price risk
The Company is not exposed to equity risks arising from equity investments. Equity investments are held for stratergic rather than trading purposes. The Company does not actively trade these investments.
(c) Currency risk
Foreign currency risk is the risk impact related to fair value or future cash flows of an exposure in foreign currency, which fluctuate due to changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to import of raw materials and spare parts, capital expenditure, exports of finished goods. The currency in which these transaction are primarily denominated as USD.
The Company evaluates exchange rate exposure arising from foreign currency transactions. The Company follows established risk management policies and standard operating procedures.
The Company''s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain furture development of the business. The management monitors the return on capital, as well as the level of dividends to equity shareholders.
The Company''s objective when managing capital are to: (a) to maximise shareholders value and provide benefits to other stakeholders and (b) maintain an optimal capital structure to reduce the cost of capital.
For the purpose of the Company''s capital management, capital includes issued equity share capital and other equity reserves attributable to the equity holders.
The Company monitors capital using debt-equity ratio, which is total debt less investments divided by total equity.
In addition the Company has financial covenants realting to the banking facilities that it has taken from all the lenders like interest service coverage ratio, Debt to EBITDA, current ratio etc. which is maintained by the Company.
The Company has entered into agreements in the nature of lease/leave and license agreement with different lessors/licensors for the purpose of establishment of office premises/residential accommodations etc. These are generally in the nature of operating lease/leave and license. Period of agreements are generally up to three years amd renewable at the option of the lessee.
39 The Company has one operating business segment viz, maufacturing, selling, processing and conversion of steel and all other activities are identical to the same and this is in accordance with Ind AS-108 â Operating Segmentsâ notified pursuant to Companies (Accounting Standards) Rules, 2015.
40 Events occurred after the Balance Sheet date
The Board of Dierctors has recommended Equity Dividends of Re.1/- per Share (Previous year Re.1/-) for the financial year 2022-23
41 The Financial statements were authorized for issue by the Directors on 29th May, 2023
Mar 31, 2018
1. Reporting entity
Beekay Steel Industries Limited (ââthe Companyââ) is a listed company incorporated in India on 28th March, 1981 having its registered office at 2/1A, Sarat Bose Road, Lansdowne Towers, 4 Floor, Kolkata-700020. The Company is principally engaged in the business of Hot Rolled Steel Sections, Bright Bars, Structural Items and TMT Bars.
The Companysâ equity shares are listed on the BSE Limited(nation-wide trading terminal) under direct listing route. the trading of shares have started w.e.f, 25th March , 2015.
2. Basis of preparation of Standalone financial statements
a) Statement of Compliance
These financial statements are prepared in accordance with the provisions of the Companies Act, 2013 (âActâ) (to the extent notified) and Indian Accounting Standards (Ind AS) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values. The Ind AS are prescribed under section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 (as amended).
The Company has adopted all the Ind AS standards and adoptions was carried out in accordance with Ind AS 101- First time adoption of Indian Accounting Standards. The transition was carried out from Indian Accounting Principles generally accepted in India as prescribed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (IGAAP) which was the previous GAAP. Reconciliations and descriptions of the effect of transition has been sumarised in Note 39.
Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing standard requires a change in the accounting policy hitherto in use.
b) Functional and presentation currency
The financial statements are presented in Indian Rupees (âRsâ) which is Companyâs presentation currency. The functional currency of the Company is also Indian Rupees (âRsâ).
c) Basis of measurement
The financial statements have been prepared on historical cost convention on the accrual basis, except for the following items:
(i) Certain financial assets and financial liabilities measured at fair value;
(ii) Employeeâs defined benefit plan as per actuarial valuation.
Fair value is the price that would be received on the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions, regardless of whether that price is directly observable or estimated using another valuation technique. In determining the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date.â
d) Use of judgments and estimates
In preparing these financial statements, management has made judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized prospectively.
Critical accounting judgements and key sources of estimation uncertainty: Key assumptions-
(i) Useful lives of Property, plant and equipment:
The Company uses its technical expertise along with historical and industry trends for determining the economic life of an asset/component of an asset. The useful lives are reviewed by management periodically and revised, if appropriate. In case of a revision, the unamortised depreciable amount is charged over the remaining useful life of the assets.
(ii) Fair value measurement of financial instruments:
When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using certain valuation techniques. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility.
(iii) Defined benefit plans:
The cost of the defined benefit plan includes gratuity and the present value of the gratuity obligation are determined using actuarial valuations using projected unit credit method. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.
(iv) Recognition and measurement of provisions and contingencies:
The certain key assumptions about the likelihood and magnitude of an outflow of resources. Provision is towards known contractual obligation, litigation cases and pending assessments in respect of taxes, duties and other levies, if any, in respect of which management believes that there are present obligations and the settlement of such obligations are expected to result in outflow of resources, to the extent provided for.
e) Measurement of fair values
A number of the Companyâs accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities.
The Company has an established control framework with respect to the measurement of fair values.
The management regularly reviews significant unobservable inputs and valuation adjustments.â
Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.
Level 1: quoted prices(unadjusted) in active markets for identical assets or liabilities.
Level 2: inputs other than quoted prices included in Level 1 that are observable for the assets or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). active markets for identical assets or liabilities.
Level 3: inputs for the assets or liability that are not based on observable market data(unobservable inputs).
When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.
The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.
f) Standard issued but not yet effective
Revenue from contracts with customers- Ind AS 115
Ind AS 115 establishes a comprehensive framework for determining whether, how much and when revenue is recognised. It replaces existing revenue recognition guidance, including Ind AS 18 Revenue and Ind AS 11 Construction Contracts. Ind AS 115 will be applicable from 1st April 2018.
B. Rights, prefernces and restrictions attaching to Equity Shares
The Company has 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.
The Company has Preference Share which are non convertible reedemable of 100/- each. Such Shareholders have right to receive fixed preferential dividend. However no preferential shares are outstanding on the date of Balance Sheet.
The description, nature and purpose of each reserve within equity are as follows:
(a) Capital Reserve: Capital Reserve includes:
(i) Amalgamation reserve was created earlier pursuant to a Scheme of Amalgamation in earlier years.
(ii) Revaluation reserve created earlier on revaluation of Property, Plant and Equipment has been transferred to Capital Reserve.
(iii) Movement during the year is on account of depreciation on revaluation transferred to retained earnings.
(b) Securities Premium Account: The amount received in excess of face value of the equity shares is recognised in Share Premium.
(c) General Reserve: The Company has transferred a potion of the net profit of the company before declaring dividend to general reserve persuant to the earlier provisions of Companies Act 1956. Mandatory transfer to general reserve is not required under the Companies Act 2013.
(d) Capital Redemption Reserve: The Company has recognised Capital Redemption Reserve on redemption of Preference Shares from its retained earnings. The amount in Capital Redemption Reserve is equal to nominal amount of the Preference Shares redeemed.
(e) Retained earnings: It comprise of accumulated profit/ (loss) of the Company. The movement is on account of following
(i) RS.70,84,06,690 (31st March 2017: RS.34,74,26,760) was on account of profit/ (loss) incurred by the Company.
(ii) (31st March 2017: 5,00,00,000) was transferred to General reserve.
(iii) RS.2,29,54,673 (31st March 2017: 2,29,54,673) was on account of dividend distribution (inclusive of dividend distribution tax).
(iv) RS.30,135 (31st March 2017: 30,135) on account of depreciation on revaluation transferred to retained earnings.
Nature of security
1. Punjab National Bank: Term Loan is secured by equitable mortgage of Land and other Fixed Assets of the Companyâs unit named âBeekay Structural Steels-TMTâ at Industrial Park, Parwada, Andhra Pradesh.
2. State Bank of India: Corporate Loan is secured by charge over entire current assets of all the units both present and future on pari-passu basis.
3. HDFC Bank: Car Loan is secured on Vehicles.
Secured loan - terms of repayment
1. Punjab National Bank: Represents term loan amounting to RS.NIL (31st March 2017: RS.3,07,49,038, 1st April 2016: RS.6,15,41,826).
2. State Bank of India: Represents term loan amounting to RS.NIL (31st March 2017: RS.NIL, 1st April 2016: RS.92,71,409).
3. HDFC Bank: Represents term loan amounting to RS.23,06,326 (31st March 2017: RS.12,43,089, 1st April 2016: RS.21,90,911). (i) Repayable in 12 months from April 2019 to March 2020. Interest is payable at the rate of 8.50%. (ii) Repayable in 17 months from April 2019 to August 2020. Interest is payable at the rate of 8.50%. (iii) Repayable in 21 months from April 2019 to December 2020. Interest is payable at the rate of 8.50%. (iv) Repayable in 8 months from April 2019 to November 2019. Interest is payable at the rate of 9.65%
Nature of security
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 and 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.
Secured loan - terms of repayment
1. Allahabad Bank: Working capital loan amounting to RS.51,53,74,219 (31st March 2017: RS.38,60,17,192 , 1st April 2016: RS.28,92,84,560). Interest is payable at the rate of (MCLR 1.25%).
2. State Bank of India: Working capital loan amounting to RS.41,43,17,733 (31st March 2017: RS.47,56,61,669 , 1st April 2016: RS.43,04,35,488). Interest is payable at the rate of (MCLR 1.50%).
3. Bank of Baroda: Working capital amounting to RS.14,43,02,755 (31st March 2017: RS.18,79,32,104 , 1st April 2016: RS.6,89,57,422). Interest is payable at the rate of (MCLR 1.70%).
4. Punjab National Bank: Working capital amounting to RS.18,79,06,793 (31st March 2017: RS.24,71,76,419 , 1st April 2016: RS.25,44,42,966). Interest is payable at the rate of (MCLR 1.35%).
5. Yes Bank: Working capital amounting to RS.14,86,99,567 (31st March 2017: H NIL , 1st April 2016: H NIL). Interest is payable at the rate of (MCLR 0.35%)
6. State Bank of India (IBD): Amounting to RS.5,81,38,551 (31st March 2017: RS.2,93,48,715 , 1st April 2016: RS.6,59,66,179).
Note:
(a) The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax aseets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.
(b) During the year ended March 31, 2018 and March 31, 2017 the Company has paid dividend to its shareholders. This has resulted in payment of Dividend Distribution Tax (DDT) to the taxation authorities. The Company believes that DDT represents additional payment to taxation authority on behalf of the shareholders. Hence, DDT paid is charged to equity.
3. Earnings/ (loss) per share (EPS) (Ind AS 33)
The calculations of profit attributable to equity shareholders and weighted average number of equity shares outstanding for purposes of basic earnings per share calculation are as follows:
Defined benefits - Gratuity
The Companyâs gratuity benefit scheme for its employees in India is a defined benefit plan (funded).
The Company provides for gratuity from employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/ termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The gratuity plan is a funded plan and the company makes contributions to recognised funds in India. The Company does not fully fund the liability and maintains a target level of funding to be maintained over a period of time based on estimation of expected gratuity payments.
These defined benefit plans expose the Company to actuarial risks, such as currency risk, interest risk and market (investment) risk.
The Company expects to pay RS.2,326,017 in contribution to its defined benefit plans during the year 2018-19.
Inherent risk
The plan is defined benefit in nature which is sponsored by the Company. In particular, this exposes the Company, to actuarial risk such as adverse salary growth, change in demographic experience, inadequate return on underlying plan assets. This may result in an increase in cost of providing these benefits to employees in future. Since the benefits are lump sum in nature, the plan is not subject to longevity risk.
The following tables analyse present value of defined benefit obligations, expense recognised in Standalone Statement of Profit and Loss, actuarial assumptions and other information.
* As the future liability for gratuity and compensated encashment is provided on an actuarial basis for the Company as a whole, the amount pertaining to the key management personnel is not ascertainable and, therefore, not included above.
All decisions relating to the remuneration of the directors are taken by the board of directors of the Company, in accordance with shareholder approval, wherever necessary.
Terms and conditions of transactions with related parties
The purchase from related party are made in the ordinary course of business and on terms equivalent to those that prevail in armâs length transactions. Outstanding balances at the year-end are unsecured and settlement occurs in cash.
4. Accounting classifications and fair values (Ind AS 107)
4.1 Fair values vs carrying amounts
The following table shows fair values of financial assets and liabilities, including their levels in financial hierarchy, together with the carrying amounts shown in the statement of financial position. The table does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying aamount is a reasonable approximation of fair value.
4.2 Fair value measurement
The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchange in a current transaction between willing parties, other than in forced or liquidation sale.
The Company has established the following fair value hierarchy that categories the value into 3 levels. The inputs to valuation techniques used to measure fair value of financial instruments are:
Level 1: The hierarchy uses quoted (adjusted) prices in active markets for identical assets or liabilities. The fair value of all bonds which are traded in the stock exchanges is valued using the closing price or dealer quotations as at the reporting date.
Level 2: The fair value of financial instruments that are not traded in an active market (for example traded bonds, over the counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on company specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.
The management assessed that trade receivables, cash and cash equivalent, other bank balances, trade payable and other financial assets and liabilities approximate their carrying amounts largely due to the short term maturities of there instruments.
The fair value of the financial instruments is determined using net asset value at the respective reporting date.
4.3 Financial risk management
The Company has exposure to the following risks arising from financial instruments:
(i) Credit risk
(ii) Liquidity risk
(iii) Market risk
Risk management framework
The Companyâs principal financial liabilities comprises of borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company operations. The Companyâs principal financial assets include trade and other receivables, investments and cash and cash equivalents that derive directly from its operations.
The Companyâs activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Companyâs primary risk management focus is to minimise potential adverse effects of market risk on its financial performance. The Companyâs exposure to credit risk is influenced mainly by the individual characteristic of each customer and the concentration of risk from the top few customers. The Companyâs risk management assessment and policies and processes are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Companyâs activities.
This note presents information about the Companyâs exposure to each of the above risks, the Companyâs objectives, policies and processes for measuring and managing risk.
(i) Credit risk
Credit risk is the risk of financial loss of the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally form the Company receivables from customers and loans. Credit arises when a customer or counterparty does not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing/investing activities, including deposits with bank. The Company has no significant concentration of credit risk with any counterparty. The carrying amount of financial assets represent the maximum credit risk exposure.
Trade receivable
The risk management committee has established a credit policy under which each new customer is analysed individually for creditworthiness before the Companyâs standard payment and delivery terms and conditions are offered. The Companyâs review includes external ratings, if they are available, financial statements, credit agency information, industry information and in some cases bank references.
Exposure to credit risks
The Companyâs exposure to credit risk is influenced mainly by the individual characteristics of each customer. However management also considers the factors that may influence the credit risk of its customer base, including the default risk associated with the industry. Details of concentration percentage of revenue generated from top customer and top five customers are stated below :
Trade receivables are primarily unsecured and are derived from revenue earned from customers. Credit risk is managed through credit approvals, establishing credit limits and by continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. As per simplified approach, the Company makes provision of expected credit loss on trade receivables using a provision matrix to mitigate the risk of default payments and makes appropriate provisions at each reporting date whenever is for longer period and involves higher risk.
(ii) Liquidity risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of credit facilities to meet obligations when due. The Companyâs finance team is responsible for liquidity, funding as well as settlement management. In addition, Processes and policies related to such risks are overseen by senior management. Management monitors the Companyâs liquidity position through rolling forecasts on the basis of expected cash flows.
The Companyâs approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Companyâs reputation.
Exposure to liquidity risk
The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date based on contractual undiscounted payments.
(iii) Market risk
Market risk is the risk of loss of future earnings, fair value or future cash flows that may result from a change in the price of a financial instrument . The value of a financial instrument may change as a result of changes in the interest rates and other market changes that effect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments, receivables, payables and borrowings.
(a) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company exposure to the risk of changes in market interest rates related primarily to the Companyâs borrowings with floating interest rates. The Company constantly monitors the credit markets and rebalances its financing strategies to achieve an optimal maturity profile and financing cost.
Exposure to interest rate risk
The interest rate profile of the Company âs interest bearing financial instruments at the end of the reporting period are as follows:
Sensitivity analysis
Fixed rate instruments that are carried at amortised cost are not subject to interest rate risk for the purpose of sensitive analysis.
Cash flow sensitivity analysis for variable rate instruments
A reasonably possible change of 100 basis points in variable rate instruments at the reporting dates would have increased or decreased profit or loss by the amounts shown below.
(b) Equity price risk
The Company is not exposed to equity risks arising from equity investments. Equity investments are held for stratergic rather than trading purposes. The Company does not actively trade these investments.
(c) Currency risk
Foreign currency risk is the risk impact related to fair value or future cash flows of an exposure in foreign currency, which fluctuate due to changes in foreign exchange rates. The Companyâs exposure to the risk of changes in foreign exchange rates relates primarily to import of raw materials and spare parts, capital expenditure, exports of finished goods. The currency in which these transaction are primarily denominated as USD.
The Company evaluates exchange rate exposure arising from foreign currency transactions. The Company follows established risk management policies and standard operating procedures.
Exposure to currency risk
The Companyâs exposure to foreign currency are at the end of the reporting period are as follows:
Sensitivity analysis
A reasonably possible strengthening (weakening) of the USD and JPY against Indian rupee at 31 March would have affected the measurement of financial instruments denominated in a foreign currency and affected equity and profit or loss by the amount shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases.
5. Capital management
The Companyâs policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain furture development of the business. The management monitors the return on capital, as well as the level of dividends to equity shareholders.
The Companyâs objective when managing capital are to: (a) to maximise shareholders value and provide benefits to other stakeholders and
(b) maintain an optimal capital structure to reduce the cost of capital.
For the purpose of the Companyâs capital management, capital includes issued equity share capital and other equity reserves attributable to the equity holders.
The Company monitors capital using debt-equity ratio, which is total debt less investments divided by total equity.
In addition the Company has financial covenants realting to the banking facilities that it has taken from all the lenders like interest service coverage ratio, Debt to EBITDA, current ratio etc. which is maintained by the Company.
6. Leases: Company as lessee
The Company has entered into agreements in the nature of lease/leave and license agreement with different lessors/licensors for the purpose of establishment of office premises/residential accommodations etc. These are generally in the nature of operating lease/leave and license. Period of agreements are generally up to three years amd renewable at the option of the lessee.
The lease rentals charged during the period is as under:
Lease rentals charged to revenue (included under the head Other Expenses in Note 30) for right to use the following assets are:
7. Explanation of transition to Ind AS
As stated in Note 2(a), these are the Companyâs first financial statements prepared in accordance with Ind AS. For the year ended 31 March 2016, the Company had prepared its financial statements in accordance with Companies (Accounting Standards) Rules, 2006, notified under Section 133 of the Act and other relevant provisions of the Act (âprevious GAAPâ).
The accounting policies set out in Note 3 have been applied in preparing these financial statements for the year ended 31 March 2018 including the comparative information for the year ended 31 March 2017 and the opening Ind AS balance sheet on the date of transition i.e. 1 April 2016.
In preparing its Ind AS balance sheet as at 1 April 2016 and in presenting the comparative information for the year ended 31 March 2017, the Company has adjusted amounts reported previously in financial statements prepared in accordance with previous GAAP. This note explains the principal adjustments made by the Company in restating its financial statements prepared in accordance with previous GAAP, and how the transition from previous GAAP to Ind AS has affected the Companyâs financial position, financial performance and cash flows.
Optional exemptions availed and mandatory exceptions
In preparing these financial statements, the Company has applied the below mentioned optional exemptions and mandatory exceptions.
A. Optional exemptions availed
1 Property plant and equipment
The Company has elected to avail exemption under Ind AS 101 to use India GAAP carrying value as deemed cost at the date of transition for all items of property, plant and equipment and intangible assets as per the statement of financial position prepared in accordance with previous GAAP.
2 Determining whether an arrangement contains a lease
Appendix C to Ind AS 17 requires an entity to assess whether a contract or arrangement contains a lease. In accordance with Ind AS 17, this assessment should be carried out at the inception of the contract or arrangement. However, The Company has used Ind AS 101 exemption and assessed all arrangements based for embedded leases based on conditions in place as at the date of transition.
3 Investments in subsidiaries, joint ventures and associates
The Company has elected to measure investments in subsidiaries, associates and jointly controlled entities as per the statement of financial position prepared in accordance with previous GAAP as a deemed cost at the date of transition as per exemption available under Ind AS 101.
Interest in the subsidiary through fair valuation of financial guarantees at initial recognition on transition date has been accounted as investments in accordance with Ind AS 109 in the financial statements with corresponding credit to the retained earnings.
4 Fair value measurement of financial assets or liabilities at initial recognition
The Company has applied the requirements of Ind AS 109, âFinancial Instruments: Recognition and Measurementâ, wherever applicable.
B. Mandatory exceptions
1 Estimates
The estimates at 1 April 2016 and at 31 March 2017 are consistent with those made for the same dates in accordance with Indian GAAP (after adjustments to reflect any differences in accounting policies) apart from the following items where application of Indian GAAP did not require estimation:
- Fair valuation of financial instruments carried at FVTPL and/ or FVOCI.
- Impairment of financial assets based on the expected credit loss model.
- Determination of the discounted value for financial instruments carried at amortised cost.
The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions at 1 April 2016, the date of transition to Ind AS and as of March 31, 2017.
2 Derecognition of financial assets and liabilities
As per Ind AS 101, an entity should apply the derecognition requirements in Ind AS 109, Financial Instruments, prospectively for transactions occurring on or after the date of transition to Ind AS. However, an entity may apply the derecognition requirements retrospectively from a date chosen by it if the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognised as a result of past transactions was obtained at the time of initially accounting for those transactions.
The Company has elected to apply the derecognition principles of Ind AS 109 retrospectively as reliable information was available at the time of initially accounting for these transactions.
3 Classification and measurement of financial assets
Ind AS 101 requires an entity to assess classification of financial assets on the basis of facts and circumstances existing as on the date of transition. Further, the standard permits measurement of financial assets accounted at amortised cost based on facts and circumstances existing at the date of transition if retrospective application is impracticable.
Accordingly, the Company has determined the classification of financial assets based on facts and circumstances that exist on the date of transition. Measurement of the financial assets accounted at amortised cost has been done retrospectively except where the same is impracticable.
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 HonÂble 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 CompanyÂs 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
Âsuppliers 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
CompanyÂs unit named ÂBeekay 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
CompanyÂs unit named ÂBeekay 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 CompanyÂs units and personal
guarantee of some of the Directors)
10. Segment Report
The CompanyÂs operation predominantly comprises one single reportable
segment i.e. Manufacture and Sale of Steel Rods and Bars as per
Accounting Standard - 17 - ÂSegment 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 ÂAccounting 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 ÂRelated 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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