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Notes to Accounts of Bheema Cements Ltd.

Mar 31, 2013

I. Contingent Liabilities not provided for:

a) Bank guarantees given for Rs.137.47 (Previous Year Rs. 37.33)

b) Estimated Amount of Contracts remaining to be executed on capital account and not provided for Rs.25.00 (Previous Year Rs.809.74)

c) Claims against the Company not acknowledged as debts: Rs. 31.56 (Previous Year Rs. 31.56) d) Arrears of fixed cumulative Dividend is Rs 98.68 (Previous Year Rs. 23.86)

II. Pursuant to sanctioning of a Debt Restructuring package in terms of CDR LOA , the company has entered into a Master Restructuring Agreement (MRA) with all bankers during the FY 2011-12. In terms of the MRA, the Bankers have restructured and rescheduled the existing term loans and other facilities and their terms of repayment. Further the company was also sanctioned fresh term loans, which were fully drawn and utilized towards the completion of the expansion project. The breakup of such loans and the particulars of the terms and conditions of payment of interest and repayment of loans are given in Note No. 4.

III. During the year the company completed its expansion project and commenced production from the expanded project. The date of commencement was 31/03/2013. Accordingly the expenditure incurred on the project upto that date Rs.27,575.22, including pre-operative expenditure and interest during construction period, had been capitalized and included in fixed assets under appropriate heads. The preoperative expenditure Rs.530.92 relatable to the project incurred upto the date and the Interest on the loans borrowed for expansion attributable to the period upto the date had been allocated to various fixed assets on pro- rata basis. The depreciation has been provided accordingly.

IV. REVALUATION AND ACCOUNTING OF MINERAL DEPOSITS AND RIGHTS:

The management had revalued and accounted the value in respect of mineral deposits and mining rights, during the earlier financial year, based on an estimate of the mineral quantities by M/s. C.C.Geo Engineering Consultants (P) Ltd. and of the realizable value by M/s. G.S.Sekhar, Chartered Accountants. According to the accounting policy adopted in this regard, during that year, the amount so revalued and included in the Fixed Assets is Rs.10,725.59 on account of Mineral Deposits and Rs.2,933.41 on account of Mining Rights totaling to Rs.13,659.00 During the year an amount of Rs.728.32 (previous year Rs.728.32) has been provided as depreciation and an amount equal to such depreciation has been with drawn from the Mineral Capitalization Reserve.

V. SEGMENT REPORTING:

In terms of the Accounting Standard 17 relating to "Segment Reporting" , the company operated only in Cement business segments during the year and operates only in one geographical segment viz. India. Considering the source and nature of risks and returns the business segment will be the primary segment for this purpose and there are no secondary segments. Consequently, in view of the management based on control purposes, there are no reportable secondary segments in terms of the AS and hence the requirements there-under are not applicable to the company for the year.

VI. RELATED PARTY TRANSACTIONS:

The Company has no related parties other than the key management personnel and relatives of such personnel in terms of Accounting Standard 18, in respect of the related party disclosure. The company paid remuneration to the Chairman, Managing Director, and Whole time Director among the key management personnel of Rs.24.00 each (Previous Year of Rs. 24.00 each) respectively. The company has no related party transactions with the relatives of key management personnel. In addition, the Company has paid Rs.2.00 (Previous Year Rs.1.44) as Directors Sitting fee to all the Directors.

VII. DEFERRED TAXATION:

Deferred Tax Liability included in the Balance Sheet comprises the following:

VIII. HOUSING SUBSIDY:

The Company has received a sum of Rs.10.75 from Government of India during earlier years for the purpose of constructing 50 tenements for housing to its personnel in its Limestone Mines. The Company has entered into an agreement with Government of India for a period of 20 years.

IX. The company has not received the required information from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the period end together with interest paid/payable as required under the said Act have not been made.

X. REALIZATION OF ASSETS:

The Board is of the opinion that the Assets other than Fixed Assets have a value on realization in the ordinary course of business at least to the amount at which they are stated.

XI. Consumption of Raw Materials and value of Inventories includes Royalty and other levies paid to Government to the extent of Rs. 293.38 (previous year Rs. 233.57).

XII. Previous Year figures have been regrouped wherever necessary to conform to the groupings adopted in these accounts.

XIII. The amounts except the Share data and quantitative information have been rounded off to the nearest Lakh rupees and fraction thereof up to two decimals.


Mar 31, 2012

1) The Term Loans from banks, of Rs.17,326.41 lakhs, out of which Rs.14,430.17 Lakhs carries an interest rate @ 13.25% (Part of the interest @ 9% per annum till 31-03-2013 and @ 10% per annum during 01-04- 2013 to 31-03-2016 would be paid on due dates on cash basis and the balance of 4.25% per annum up to 31-03-2013 and 3.25% per annum of interest from 01-04-2013 to 31-03-2016 will be capitalized into equity shares in case of ICICI Bank and United Bank of India and other lenders CRPS (Zero Coupon) will be allocated and be redeemable after 2020) and the loan is repayable in 31 structured quarterly installments commencing from 30-09-2012 to 31-03-2020 with moratorium of two years from 01-07-2010 to 30-06-2012 and balance of Rs. 2,896.24 Lakhs carries an interest rate of @ 13.25% (Part of the interest @ 10% per annum during 01-04-2011 to 31-03-2016 would be paid on due dates on cash basis and the balance of 3.25% per annum up to 31-03-2016 will be capitalized into CRPS (Zero Coupon) will be allocated and be redeemable after 2020) and the loan is repayable in 28 structured quarterly installments commencing from 30.06.2013 to 31-03-2020 with a moratorium from the date of disbursement to 31-03- 2013.

All the aforementioned term loans are secured by equitable mortgage by deposit of title deeds by creating First Pari-Passu charge on immovable properties and second Pari-Passu charge by hypothecation of all current assets both present and future subject to First Pari-Passu charge on current assets infavour of companies bankers for working capital and also guaranteed by Promoter Directors in their individual capacities and also by pledge of 1,27,01,781 shares belonging to promoters as additional security.

I. Contingent Liabilities not provided for:

a) Bank guarantees given for Rs.37.33 (Previous Year Rs. 50.70)

b) Estimated Amount of Contracts remaining to be executed on capital account and not provided for Rs.809.74 (Previous Year Rs.3,456.00)

c) Claims against the Company not acknowledged as debts: Rs. 31.56 (Previous Year Rs. 31.56)

d) Arrears of fixed cumulative Dividend is Rs23.86 (Previous Year Rs. NIL)

II. Pursuant to sanctioning of a Debt Restructuring package in terms of CDR LOA during the previous year, the company has entered into a Master Restructuring Agreement (MRA) with all bankers during the current year. In terms of the MRA, the Bankers have restructured and rescheduled the existing term loans and other facilities and their terms of repayment. Further the company has also been sanctioned fresh term loans, a major portion of which has been released, to complete the expansion project. The breakup of such loans and the particulars of the term and conditions of payment of interest and repayment of loans are given in Note No. 4.

III. REVALUATION AND ACCOUNTING OF MINERAL DEPOSITS AND RIGHTS:

The management had revalued and accounted the value in respect of mineral deposits and mining rights, during the earlier financial year, based on an estimate of the mineral quantities by M/s. C.C.Geo Engineering Consultants (P) Ltd. and of the realizable value by M/s. G.S.Sekhar, Chartered Accountants. According to the accounting policy adopted in this regard, during that year, the amount so revalued and included in the Fixed Assets is Rs. 10,725.59 on account of Mineral Deposits and Rs. 2,933.41 on account of Mining Rights totaling to Rs. 13,659.00 During the year an amount of Rs.728.32 (previous year Rs.728.32) has been provided as depreciation and an amount equal to such depreciation has been with drawn from the Mineral Capitalization Reserve.

IV. SEGMENT REPORTING:

In terms of the Accounting Standard 17 relating to "Segment Reporting", the company operated only in Cement business segments during the year and operates only in one geographical segment viz. India. Considering the source and nature of risks and returns the business segment will be the primary segment for this purpose and there are no secondary segments. Consequently, in view of the management based on control purposes, there are no reportable secondary segments in terms of the AS and hence the requirements there-under are not applicable to the company for the year.

V. RELATED PARTY TRANSACTIONS:

The Company has no related parties other than the key management personnel and relatives of such personnel in terms of Accounting Standard 18, in respect of the related party disclosure. The company paid remuneration to the Chairman, Managing Director and Whole time Director among the key management personnel of Rs. 24.00 each (Previous Year of Rs. 122.88 each) respectively. The company has no related party transactions with the relatives of key management personnel. In addition, the Company has paid Rs. 1.44 (Previous Year Rs.0.84) as Directors Sitting fee to all the Independent Directors.

VI. HOUSING SUBSIDY:

The Company has received a sum of Rs. 10.75 from Government of India during earlier years for the purpose of constructing 50 tenements for housing to its personnel in its Limestone Mines. The Company has entered into an agreement with Government of India for a period of 20 years.

VII. The company has not received the required information from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the period end together with interest paid/payable as required under the said Act have not been made.

VIII. REALIZATION OF ASSETS:

The Board is of the opinion that the Assets other than Fixed Assets have a value on realization in the ordinary course of business at least to the amount at which they are stated.

IX. The following table set out the status of the gratuity plan as required under AS 15 (Revised).

X. Previous Year figures have been regrouped as per New Revised Schedule VI to conform to the groupings adopted in these accounts.

XI. The amounts except the Share data and quantitative information have been rounded off to the nearest Lakh rupees and fraction thereof up to two decimals.


Mar 31, 2011

(Rs in '000)

1. Contingent Liabilities not provided for:

(a) Bank guarantees given for Rs.5,069.97 (Previous Year Rs. 6,431.05)

(b) Estimated Amount of Contracts remaining to be executed on capital account and not provided for Rs.3,45,600.00 (previous year Rs.3,00,000.00)

(c) Claims against the Company not acknowledged as debts: Rs. 3,155.66 (Previous Year Rs. 3,155.66)

2. SECURED LOANS:

a) The Term loans in respect of Cement business from Axis Bank Limited, ICICI Bank Ltd, State Bank of Hyderabad, United Bank of India and Karnataka Bank Ltd are secured by equitable mortgage by deposit of title deeds by creating first charge on immovable properties and second charge by hypothecation of all current assets both present and future, subject to prior charge on current assets in favour of Company's Bankers for Working Capital and also Guaranteed by Promoter Directors, in their individual capacities.

b) Cash Credit from the Axis Bank Limited, Corporation Bank and Karnataka Bank Ltd is secured by hypothecation of Raw Materials, Consumable Stores, Work-in-Process, Finished Goods and Book Debts etc. and is guaranteed by Promoters in their personal capacity and is further secured by way of second charge on fixed assets.

c) Deferred liabilities include the assets acquired under Hire purchase system are Secured by Hypothecation of those assets.

3. During the year the company has been sanctioned a Debt Restructuring Package by the CDR EG Cell vide their letter dated 28/03/2011. In terms thereof the company and the lending bankers had to enter into a Master Restructuring Agreement which is under progress. Further, in terms thereof, the company has been sanctioned a fresh term loan by majority of the bankers and the bankers had agreed to restructure the existing loans and facilities, for funding of interest from a cut-off date and upto 31st December, 2011, and rescheduling of loans. Further the promoters have to bring in additional share capital as their margin and have brought in a part thereof, which has been shown under share application money. Pending completion of all formalities as envisaged under the scheme like entering into MRA etc, the company has accounted in this balance sheet, the interest payable, i.e. Funded Interest Term Loan (FITL), for the period between the cut-off date and the balance sheet date of Rs.1,43,942.39, as Capital Work in Progress to the extent of Rs.97,616.21 and as a charge off to Profit & Loss a/c. to the extent of the balance amount. These amounts are however subject to reconciliation and confirmation by the bankers. The same will be reviewed and necessary entries would be passed once all the formalities in terms of the scheme are completed.

4. REVALUATION AND ACCOUNTING OF MINERAL DEPOSITS AND RIGHTS:

The management had revalued and accounted the value in respect of mineral deposits and mining rights, during the earlier financial year, based on an estimate of the mineral quantities by M/s. C.C. Geo Engineering Consultants (P) Ltd. and of the realizable value by M/s. G.S. Sekhar, Chartered Accountants. According to the accounting policy adopted in this regard, during that year, the amount so revalued and included in the Fixed Assets is Rs.1072558.92 on account of Mineral Deposits and Rs. 293341.10 on account of Mining Rights totaling to Rs.1365900.00. During the year an amount of Rs. 72832.38 (previous year Rs. 72832.38) has been provided as depreciation and an amount equal to such depreciation has been with drawn from the Mineral Capitalization Reserve.

5. SEGMENT REPORTING:

In terms of the Accounting Standard 17 relating to "Segment Reporting”, the company operated only in Cement business segments during the year and operates only in one geographical segment viz. India. Considering the source and nature of risks and returns the business segment will be the primary segment for this purpose and there are no secondary segments. Consequently, in view of the management based on control purposes, there are no reportable secondary segments in terms of the AS and hence the requirements there- under are not applicable to the company for the year.

6. RELATED PARTY TRANSACTIONS:

The Company has no related parties other than the key management personnel and relatives of such personnel in terms of Accounting Standard 18, in respect of the related party disclosure. The company paid remuneration to the Chairman, Managing Director, and Whole time Director among the key management personnel. The particulars of such remuneration are furnished in the Note No. 14(c) hereunder. The company has no related party transactions with the relatives of key management personnel. In addition, the Company has paid Rs. 84.00 (Previous Year Rs.138.00 as Directors Sitting fee to all the Directors.

7 CONVERTIBLE WARRANTS:

During an earlier year, the company under a scheme had issued a total of 20,00,000 Convertible Warrants of Rs.10/- each at a premium of Rs.230/- per warrant, by passing necessary resolutions, convertible into an equal number of equity shares of Rs.10/- each at a premium of Rs.230/- each, within a period of 18 months from the date of allotment of Warrants. The promoters were required to bring in 10% of the amount as application money, which had been brought in during such earlier year, and the balance amount within the specified period. However they have not brought in the balance amount in terms thereof and the company forfeited the 10% amount brought in as application money. The amount so forfeited has been accounted as Capital Reserve in the balance sheet.

8 HOUSING SUBSIDY:

The Company has received a sum of Rs.10.75 from Government of India during earlier years for the purpose of constructing 50 tenements for housing to its personnel in its Limestone Mines. The Company has entered into an agreement with Government of India for a period of 20 years.

9. The company has not received the required information from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the period end together with interest paid/payable as required under the said Act have not been made.

10. CURRENT ASSETS & LOANS AND ADVANCES:

The Board is of the opinion that the Current Assets & Loans and Advances have a value on realization in the Ordinary Course of Business at least to the amount at which they are stated

11. The following table set out the status of the gratuity plan as required under AS 15 (Revised).

Reconciliation of opening and closing balances of the deferred benefit obligation:

12. PROFIT & LOSS ACCOUNT :

a) The company is not liable for income tax under regular provisions of the Act as well as in terms of sec.115JB of the act in view of current year losses and allowances.

b) Consumption of Raw Materials and value of Inventories includes Royalty and other levies paid to Government to the extent of Rs.23356.615 (previous year Rs.12733.84).

c) Particulars of Remuneration paid/provided to the, Chairman, Managing Director and Whole Time Director:

The Central Government has accorded its approval for the above remuneration in terms of the relevant provisions of the Companies Act, 1956

However the remuneration for a part of the year has been paid as agreed by the promoters in terms of the above referred restructuring package.

(13) Figures indicated in brackets relates to previous year.

14. Previous year figures have been regrouped wherever necessary to conform to the groupings adopted in these accounts.

15. The amounts except the Share data and quantitative information have been rounded off to the nearest thousand rupees and fraction thereof up to two decimals.


Mar 31, 2010

(Rsin000)

1. Contingent Liabilities not provided for:

(a) Bank guarantees given for Rs.6431.05 (Previous Year Rs. 6301.75).

(b) Estimated Amount of Contracts remaining to be executed on capital account and not provided for Rs. 300000.00, (previous year Rs.246390.00)

(c) Claims against the Company not acknowledged as debts: Rs. 3155.66 (Previous Year Rs. 5137.45)

2. SECURED LOANS:

a) The Term loans in respect of Cement business from Axis Bank Limited, ICICI Bank Ltd, State Bank of Hyderabad, United Bank of India and Karnataka Bank Ltd are secured by equitable mortgage by deposit of title deeds by creating first charge on immovable properties and second charge by hypothecation of all current assets both present and future, subject to prior charge on current assets in favour of Companys Bankers for Working Capital and also Guaranteed by Promoter Directors, in their individual capacities.

b) Cash Credit from the Axis Bank Limited, Corporation Bank and Karnataka Bank Ltd is secured by hypothecation of Raw Materials, Consumable Stores, Work-in-Process, Finished Goods and Book Debts etc. and is guaranteed by Promoters in their personal capacity and is further secured by way of second charge on fixed assets.

c) Deferred liabilities include the assets acquired under Hire purchase system are Secured by Hypothecation of those assets.

3. REVALUATION AND ACCOUNTING OF MINERAL DEPOSITS AND RIGHTS:

The management had revalued and accounted the value in respect of mineral deposits and mining rights, during the earlier financial year, based on an estimate of the mineral quantities by M/s. C.C.Geo Engineering Consultants (P) Ltd. and of the realizable value by M/s. G.S.Sekhar, Chartered Accountants. According to the accounting policy adopted in this regard, during that year, the amount so revalued and included in the Fixed Assets is Rs. 1072558.92 on account of Mineral Deposits and Rs.293341.10 on account of Mining Rights totaling to Rs. 1365900.00. During the year an amount of Rs.72832.38 (previous year Rs.72832.38) has been provided as depreciation and an amount equal to such depreciation has been with drawn from the Mineral Capitalization Reserve.

5. RELATED PARTY TRANSACTIONS:

The Company has no related parties other than the key management personnel and relatives of such personnel in terms of Accounting Standard 18, in respect of the related party disclosure. The company paid remuneration to the Chairman, Managing Director, and Whole time Director among the key management personnel. The particulars of such remuneration are furnished in the Note No. 13(c) hereunder. The company has no related party transactions with the relatives of key management personnel. In addition the Company has paid Rs.1, 38,000 (Previous Year Rs.1,92,000) as Directors Sitting fee to all the Directors.

8. CONVERTIBLE WARRANTS:

During an earlier year, the company under a scheme had issued a total of 20,00,000 Warrants of Rs.10/- each at a premium of Rs.230/- per warrant convertible into an equal number of equity shares of Rs10/- each at a premium of Rs.230/- each, by passing necessary resolutions, within a period of 18 months. The promoters were required to bring in 10% of the amount along with the application and the balance amount within the specified period. The amounts brought in as on the date of balance sheet but within the specified period, pending compliances with all terms and conditions of the scheme, are shown under the application money for warrants in the balance sheet. The shares are to be allotted at the end of the specified period upon receipt of the entire amount. The promoters have brought in a total of Rs.292030.00, as on the date of balance sheet, under the scheme and the same has been shown underthe application money for warrants.

9. HOUSING SUBSIDY:

The Company has received a sum of Rs. 10.75 from Government of India during earlier years for the purpose of constructing 50 tenements for housing to its personnel in its Limestone Mines. The Company has entered into an agreement with Government of India for a period of 20 years.

10. The company has not received the required information from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the period end together with interest paid/payable as required under the said Act have not been made.

11. CURRENT ASSETS & LOANS AND ADVANCES:

The Board is of the opinion that the Current Assets & Loans and Advances have a value on realization in the Ordinary Course of Business at least to the amount at which they are stated

13. PROFIT & LOSS ACCOUNT :

a) The provision for Income Tax has been made in terms of the provisions of Sec.115 JB of Income Tax Act 1961.

b) Consumption of Raw Materials and value of Inventories includes Royalty and other levies paid to Government to the extent of Rs. 12733.84 (previous year Rs.6066.18).

15. Previous period figures have been regrouped wherever necessary to conform to the groupings adopted in these accounts.

16. The amounts except the Share data and quantitative information have been rounded off to the nearest thousand rupees and fraction thereof.