Home  »  Company  »  Bil Energy Systems L  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Bil Energy Systems Ltd.

Mar 31, 2015

1 The lender Bank of Bilpower Limited has pursuant to certain corporate guarantees given by the company demanded from the company their dues from Bilpower Limited amounting to Rs. 178.80 crores. No provision has been made in the accounts for the probable loss that may arise on account of above demand of Rs. 178.80 crores

Note:- Figures in Brackets Relate to Previous Year

Disclosure in respect of Material Related Party Transactions During the year:-

1 Sale of Goods includes :-Tarapur Transformers Limited Rs.. Nil (P.Y. Rs. 18.91 Lacs)

2 Receiving of Services -

A) Payment of Remuneration includes :- Rajendra Kumar Choudhary Rs. 5.00 Lacs (P.Y. Rs. 12.00 Lacs)

B) Commission & Brokerage:- Harsh Choudhary Rs. Nil (P.Y. Rs. 6.49 Lacs)

C) Rent Expenses:- Tarapur Transformers Limited Rs. 0.60 Lacs (P.Y. Rs. 1.05 Lacs)

3 Finance (Including Loans & Equity Contributions on Cash or Kind)

A) Loans & Advances Received includes :- Tarapur Transformers Limited Rs. Nil (P.Y. Rs. 3.55 Lacs ), Rajendra Kumar

Choudhary Rs. Nil (P.Y. Rs. 2.50 Lacs), Choudhary Global Limited Rs. Nil (P.Y. Rs. 450.00 Lacs), Bilpower Limited Rs. 50.00 Lacs (P.Y. Rs. Nil)

B) Loans & Advances Given includes :- Tarapur Transformers Limited Rs. 195.70 Lacs (P.Y. Rs. 88.78 Lacs), Bilpower Limited Rs. 0.75 Lacs (P.Y. Rs. Nil), Rajendra Kumar Choudhary Rs. 5.74 Lacs (P.Y. Rs. Nil), K2K Consultancy Services Pvt. Ltd. Rs. 6.00 Lacs (P.Y. Nil)

4 Outstanding as at 31st March 2015

A) Trade Payable:- Harsh Choudhary Rs. 1.18 Lacs (P.Y. Rs. 1.18 Lacs)

B) Trade Receivable :-Bilpower Limited Rs. Nil (P.Y. Rs. 181.18 Lacs), Tarapur Transformers Limited Rs. Nil (P.Y.Rs. 18.91 Lacs)

C) Loans & Advances Given :- Tarapur Transformer Limited Rs. Nil (P.Y Rs. 58.72 Lacs), Kiren Shrivastav Rs. 0.50 Lacs (P.Y.Rs. 0.50 Lacs)

2 DISCLOSURE PURSUANT TO ADOPTION OF ACCOUNTING STANDARD 15

Gratuity liability for the year is determined on actuarial valuation by The Life insurance company of India with whom the company has taken a policy for settlement of future gratuity liability.

3 In terms of the requirements of the Accounting Standards-28 on "Impairment of Assets" issued by the Institute of Chartered Accountants of India, the amount recoverable against Fixed Assets has been estimated for the period by the management based on present value of estimated future cash flows expected to arise from the continuing use of such assets. The recoverable amount so assessed was found to be adequate to cover the carrying amount of the assets, therefore no provision for impairment in value thereof has been considered necessary, by the management.

4 As per the best estimate of the management, no provision is required to be made as per Accounting Standard (AS) 29 "Provision,Contingent Liabilities & Contingent Assets" as notified by the companies (Accounting Standards) Rules 2006, in respect of any present obligation as a result of a past event that could lead to a probable outflow of resources which would be required to settle the obligation.

5 Consumption of consumable stores is wholly indigenous in the current & previous year.

6 Balances of the Creditors / Debtors / Loans / Advances are subject to Confirmations and resultant reconciliation, if any.

7 Sundry Debtors as on the date of Balance sheet are net of amounts received after discounting of Letter of Credits.

8 Previous Year Figures have been regrouped / recast / rearranged wherever necessary.


Mar 31, 2014

1.1 Additional Information for previous year loans:- a) Terms of repayment of Corporate Loan

The Corporate Loan is repayable as follows: F.Y. 2013-14, 12 monthly installments of Rs. 15/-Lacs each amounting to Rs. 180/-Lacs, F. Y. 2014-15, 12 monthly installments of Rs. 30/-Lacs each amounting to Rs. 360/-Lacs, F. Y. 2015-16, 12 monthly installment of Rs. 45/-Lacs each amounting to Rs. 540/-Lacs, F.Y. 2016-17, 12 monthly installment of Rs. 50/-Lacs each amounting to Rs. 600/-Lacs, F.Y. 2017-18, 4 monthly installments of Rs. 104.30 Lacs each amounting to Rs. 417/-Lacs.

b) Terms of repayment of Working Capital Term Loan : F.Y. 2013-14, 12 monthly installments of Rs. 15/-Lacs each amounting to Rs. 180/-Lacs, F. Y. 2014-15, 12 monthly installments of Rs. 25/-Lacs each amounting to Rs. 300/-Lacs, F. Y. 2015-16, 12 monthly installment of Rs. 40/-Lacs each amounting to Rs. 480/-Lacs, F.Y. 2016-17, 12 monthly installment of Rs. 44.70 Lacs each amounting to Rs. 536/-Lacs.

c) Details of Security for Corporate Loan : The above facility is secured by Equitable Mortgage charge on Land admeasuring 3 Acres and Building admeasuring 87175 sq. feet constructed thereon at Wada Manor Road,Village Kanchad, Taluka Wada(Dist.Thane) owned by the Company and hypothecation charge on Plant & Machinery and all other movable Fixed Assets of the Company situated at Wada Manor Road,Village Kanchad, Taluka Wada(Dist.Thane). The facility is further collaterally secured by extension of charge on entire current assets of the company. The above facility is secured by Corporate Guarantee of Bilpower Limited

d) Details of Security for Working Capital Term Loan : The above facility is secured by Hypothecation of entire Stock and Current Assets of the Company. The facility is further collaterally secured by extension of Equitable Mortgage charge on Land admeasuring 3 Acres and Building admeasuring 87175 sq. feet constructed thereon at Wada Manor Road,Village Kanchad, Taluka Wada(Dist.Thane) owned by the Company and extension of hypothecation charge on Plant & Machinery and all other movable Fixed Assets of the Company situated at Wada Manor Road,Village Kanchad,Taluka Wada(Dist.Thane). This facility is further collaterally secured by Pledge of 15500000 equity shares of Rs. 1/-each of Bil Energy Systems Limited also Negative lien on 156.30 lakh promoter equity shares of Rs. 1/-each of Bil Energy Systems Limited. The above facility is also secured by Corporate Guarantee of Bilpower Limited

e) Rate of interest on Corporate Loan and Working Capital Term Loan: 2.25% above Base rate i.e 12.00% per annum with monthly rest, with annual reset.

2.1 Additional information

a Details of Security for Working Capital Loan

The above facility is secured by Hypothecation of entire Stock and Current Assets of the Company present and future. The facility is further collaterally secured by extension of Equitable Mortgage charge on Land admeasuring 3 Acres and Building admeasuring 87175 sq.feet constructed thereon at Wada Manor Road,Village Kanchad,Taluka Wada(Dist.Thane) owned by the Company and extension of hypothecation charge on Plant & Machinery and all other movable Fixed Assets of the Company situated at Wada Manor Road,Village Kanchad,Taluka Wada(Dist.Thane). This facility is further collaterally secured by Pledge of 15500000 equity shares of Rs. 1/-each of Bil Energy Systems Limited also Negative lien on Rs.156.30 lakh promoter equity shares of Rs. 1/ – each of Bil Energy above Systems Limited. The facility is also secured by Corporate Guarantee of Bilpower Limited

b Details of Security for Working Capital Term Loan

The above facility is secured by Hypothecation of entire Stock and Current Assets of the Company. The facility is further collaterally secured by extension of Equitable Mortgage charge on Land admeasuring 3 Acres and Building admeasuring 87175 sq.feet constructed thereon at Wada Manor Road,Village Kanchad,Taluka Wada(Dist.Thane) owned by the Company and extension of hypothecation charge on Plant & Machinery and all other movable Fixed Assets of the Company situated at Wada Manor Road,Village Kanchad,Taluka Wada(Dist.Thane). This facility is further collaterally secured by Pledge of 15500000 equity shares of Rs. 1/-each of Bil Energy Systems Limited also Negative lien on 156.30 lakh promoter equity shares of Rs. 1/- each of Bil Energy Systems Limited. The above facility is also secured by Corporate Guarantee of Bilpower Limited c Details of Security for Corporate Loan The above facility is secured by Equitable Mortgage charge on Land admeasuring 3 Acres and Building admeasuring 87175 sq.feet constructed thereon at Wada Manor Road,Village Kanchad,Taluka Wada(Dist.Thane) owned by the Company and hypothecation charge on Plant & Machinery and all other movable Fixed Assets of the Company situated at Wada Manor Road,Village Kanchad,Taluka Wada(Dist.Thane). The facility is further collaterally secured by extension of charge on entire current assets of the company. The above facility is secured by Corporate Guarantee of Bilpower Limited

2.2 The company has defaulted in repayment of dues including interest and principal to State Bank of India, on its various fund factilities availed, outstanding at the year end amounting to Rs. 79.69 Crores (Previous Year Rs. Nil ). The unpaid interest provided for in the books of accounts on the said loans amounts to Rs. 5.31 Crores (Previous Year Rs. 0.28 Crores due on 28/02/2013). Entire loans have been recalled by State Bank Of India during the financial year 2013-14

2.3 Unsecured Loan Payable includes following related parties:- Tarapur Transformers LimiAtendn Rs.uaNl iRl (e Pp.Yo.r Rs.t 2101170.5-131 Lacs), TRC Power Rs. Nil (P.Y. Rs. 25/-Lacs), Rajendra Kumar Choudhary Rs. Nil (P.Y. Rs. 57/-Lacs), Choudhary Global Limited Rs. Nil (P.Y. Rs. 24/-Lacs)

3 CONTINGENT LIABILITIES (Rs. in Lacs) Particulars As at 31st March As at 31st March 2014 2013

(a) Guarantees outstanding - 17.00

(b) Excise Demand 1545.11 -

(c) Sales tax liability against non collection of various sales tax forms under relevant sales Not Not tax laws, not provided due to uncertainty in ascertainment of amount of liability, if any. Ascertainable Ascertainable

(d) Custom duty on pending export obligation against import of machinery 847.33 847.33

4 SEGMENT REPORTING

The company primarily deals in the business of Electrical Steel Products and Other Steel Products as single segment hence Segment Reporting as Defined in Accounting Standard 17 (AS-17) issued by The Institute of Chartered Accountants of India is not applicable to the company.

5 RELATED PARTY DISCLOSURES

(a) The Company had transactions with the following related parties

Sr.No Name of the Related Party Ralationship

1 Bilpower Limited Associate

2 Tarapur Transformers Limited Associate

3 Niksan Engineering Company Limited Associate

4 Choudhary Global Limited Associate

5 Rajendra Kumar Choudhary Key Management Personnel

6 TRC Power Relative of KMP & their Proprietory Concern

7 Harsh Choudhary Relative of KMP

Disclosure in respect of Material Related Party Transactions During the year :

1 Purchase of Goods/Fixed Assets/Expenses includes :- Tarapur Transformers Limited Rs. Nil (P.Y. Rs. 67.26 Lacs) BILPOWER

2 Sale of Goods includes :- Tarapur Transformers Limited Rs. 18.91 Lacs (P.Y. Rs. 42.83 Lacs).

3 Receiving of Services –

A) Payment of Remuneration includes :- Rajendra Kumar Choudhary Rs. 12.00 Lacs (P.Y. Rs. 12.00 Lacs)

B) Commission & Brokerage:- Harsh Choudhary Rs. 6.49 Lacs (P.Y. Rs. Nil)

4 Finance (Including Loans & Equity Contributions on Cash or Kind)

A) Loans & Advances Received includes :- Tarapur Transformers Limited Rs. 3.55Lacs (P.Y. Rs. Nil ), Rajendra Kumar Choudhary Rs. 2.50Lacs (P.Y. Rs. 57.00Lacs), Choudhary Global Limited Rs. 450.00 Lacs (P.Y. Rs. 24.00 Lacs), TRC Power Rs. Nil (P.Y. Rs. 25.00 Lacs), Bilpower Limited Rs. Nil (P.Y. Rs. 3.00 Lacs)

B) Loans & Advances Given includes :- Tarapur Transformers Limited Rs. 88.78 Lacs (P.Y. Rs. 31.00Lacs)

5 Outstanding as at 31st March 2014

A) Trade Payable:- Harsh Choudhary Rs. 1.18 Lacs (P.Y. Rs. Nil)

B) Loans & Advance Received :- Tarapur Transformers Limited Rs. Nil (P.Y. Rs. 117.53 Lacs), Rajendra Kumar Choudhary Rs. Nil (P.Y. Rs. 57.00Lacs), Choudhary Global Limited Rs. Nil (P.Y.Rs. 24.00Lacs), TRC Power Rs. Nil (P.Y. Rs. 25.00Lacs)

C) Trade Receivable :- Bilpower Limited Rs. 181.18 Lacs (P.Y. Rs. 296.44 Lacs), Tarapur Transformers Limited Rs. 18.91 Lacs (P.Y.Rs. 0.70 Lacs)

D) Loans & Advances Given :- Bilpower Limited Rs. Nil (P.Y.Rs. 137/-Lacs), Tarapur Transformer Limited Rs. 58.72 Lacs (P.Y.Rs. Nil)

6 DISCLOSURE PURSUANT TO ADOPTION OF ACCOUNTING STANDARD 15

Gratuity liability for the year is determined on actuarial valuation by The Life insurance company of India with whom the company has taken a policy for settlement of future gratuity liability.

7 In terms of the requirements of the Accounting Standards-28 on "Impairment of Assets" issued by the Institute of Chartered Accountants of India, the amount recoverable against Fixed Assets has been estimated for the period by the management based on present value of estimated future cash flows expected to arise from the continuing use of such assets. The recoverable amount so assessed was found to be adequate to cover the carrying amount of the assets, therefore no provision for impairment in value thereof has been considered necessary, by the management.

8 As per the best estimate of the management, no provision is required to be made as per Accounting Standard (AS) 29 "Provision, Contingent Liabilities & Contingent Assets" as notifed by the companies (Accounting Standards) Rules 2006, in respect of any present obligation as a result of a past event that could lead to a probable outflow of resources which would be required to settle the obligation.

9 Consumption of consumable stores is wholly indigenous in the current & previous year.

10 Balances of the Creditors / Debtors / Loans / Advances are subject to confirmations and resultant reconciliation, if any.

11 Sundry Debtors as on the date of Balance sheet are net of amounts received after discounting of Letter of Credits.

12 Previous Year Figures have been regrouped / recast / rearranged wherever necessary.


Mar 31, 2013

1.1 Legal & Professional fees-other than payment to auditors includes Rs. 0.83 Lacs pertaining to prior period.(P.Y.Rs. Nil)

2 CONTINGENT LIABILITIES

(Rs. in Lacs)

Sr. No Particulars As at 31st March 2013 As at 31st March 2012

(a) Guarantees outstanding 17.00 17.50

(b) Custom duty on pending export obligation against import of machinery 847.33 847.33 Apart from the above there exists contingent liability in case of LCs issued and LC discounted

3 SEGMENT REPORTING

The company primarily deals in the business of Electrical Steel Products and Other Steel Products as single segment hence Segment Reporting as defned in Accounting Standard 17 (AS-17) issued by The Institute of Chartered Accountants of India is not applicable to the company.

4 During the year, there has been sub-division of shares from Face Value of each share from Rs. 10/ – to Face Value of Rs. 1/ – and number of equity shares have increased from 10570800 to 105708000.

5 DISCLOSURE PURSUANT TO ADOPTION OF ACCOUNTING STANDARD 15

Gratuity liability for the year is determined on actuarial valuation by The Life insurance company of India with whom the company has taken a policy for settlement of future gratuity liability.

6 In terms of the requirements of the Accounting Standards-28 on "Impairment of Assets" issued by the Institute of Chartered Accountants of India, the amount recoverable against Fixed Assets has been estimated for the period by the management based on present value of estimated future cash fows expected to arise from the continuing use of such assets. The recoverable amount so assessed was found to be adequate to cover the carrying amount of the assets, therefore no provision for impairment in value thereof has been considered necessary, by the management.

7 As per the best estimate of the management, no provision is required to be made as per Accounting Standard (AS) 29 "Provision, Contingent Liabilities & Contingent Assets" as notifed by the companies (Accounting Standards) Rules 2006, in respect of any present obligation as a result of a past event that could lead to a probable outfow of resources which would be required to settle the obligation.

8 Consumption of consumable stores is wholly indigenous in the current & previous year.

9 Balances of the Creditors / Debtors / Loans / Advances are subject to Confrmations and resultant reconciliation, if any.

10 Sundry Debtors as on the date of Balance sheet are net of amounts received after discounting of Letter of Credits.

11 Previous Year Figures have been regrouped / recast / rearranged wherever necessary.


Mar 31, 2012

1.1 10570800 Equity Shares Of Rs. 10/- Each, Fully Paid, Issued Without Payment In Cash Pursuant To Scheme Of Arrangement

1.2 Reconciliation of Number of Equity Shares Outstanding At the beginning and at the end of the year :

1.3 Terms/Rights attached to equity shares

The company has issued only one class of equity shares having a par value of Rs.10/- per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 3Ist March 20I2 amount per share of dividend recognized as distributions to equity shareholders was Rs.Nil ( P.Y.Rs.Nil) In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the numbers of equity shares held by shareholders.

2 Previous year General Reserve transfer from Billowed Limited as per the pursuant to scheme of arrangement.

2.1 Terms of repayment of Term Loan

The Company has Common Loan Agreement during the previous year with State Bank of India. Rupee Term Loan amount Rs.3156.00 lacs sanctioned during previous year by State Bank of India

The initial interest base rate is 4.50% above base rate i.e.14.50% p.a with monthly rest.

The Loan is to be paid in 15 equal quarterly installments from the date of Section of loan

Nature of security for Term Loan from Bank :

Working Capital Facility and Corporate Loan are secured by hypothecation of Stocks, Book Debts and all other Current Assets. The facilities are further collaterally secured by EMT of 3.00 acre of Land situated at (Wada), hypothecation charge on Plant & Machinery and movable Fixed Assets of the Company. These facilities are personally guaranteed by Mr. Naresh Kumar Choudhary & Mr. Rajendra Kumar Choudhary, the Directors of the Company and also Corporate Guarantee of Bilpower Limited.

There has been no default in the repayment of loans or interest thereon as on date.

Unsecured Loan includes payable to related party Tarapur Transformers Limited Rs.148.50 Lacs/- (P.Y. Rs. Nil)

Unsecured Loan includes payable to related party Bilpower Limited Rs. Nil (P.Y. Rs.199.52 Lacs)

2.I Working Capital Facility and Corporate Loan are secured by hypothecation of Stocks, Book Debts and all other Current Assets. The facilities are further collaterally secured by EMT of 3.00 acre of Land situated at (Wada), hypothecation charge on Plant & Machinery and movable Fixed Assets of the Company. These facilities are personally guaranteed by Mr. Naresh Kumar Choudhary & Mr. Rajendra Kumar Choudhary, the Directors of the Company and also Corporate Guarantee of Bilpower Limited.

3.1 Trade Payable includes following Related Parties Rs. 519.23 Lacs (P.Y. Rs. 198.52 Lacs) payable to Tarapur Transformers Limited, Rs. 0.02 Lacs (P.Y. Rs. Nil) payable to Nik San Engineering Co Ltd

3.2 The Company has not received any intimation from the suppliers under the Micro, Small & Medium Enterprises Development Act 2006 & therefore 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.

Note: Capital work in progress not included advance given on account of capital expenditure Previous year figures have been regrouped wherever necessary.

4.1 Trade (Other receivables) includes receivable from related party Bilpower Limited Rs.711.98 Lacs (P.Y. Rs. NIL) (Refer Note No.28)

4.2 Balance of Trade Receivables is subject to confirmation from the respective parties and resultant reconciliation, if any.

5.1 Fixed Deposits held as margin money or security against guarantees, letter of credits and other commitments

6.1 Loans and advances recoverable from related party from Bilpower Limited Rs.137.00 Lacs (P.Y. Rs. NIL)

7.1 Salaries, Wages, Bonus & Allowances include provision of Leave Encashment Rs. 2.02 Lacs (P.Y. Rs. 1.02 Lacs)

8. Contingent Liabilities

(Rs.in Lacs)

Sr. No Particulars As at 31st March 2012 As at 31st March 2011

a) Guarantees outstanding 17.50 43.50

b) Custom duty on pending export obligation against 847.33 795.69 import of machinery

Apart from the above there exists contingent liability in case of LCs issued and LC discounted

9. Segment Reporting

The company primarily deals in the business of Electrical Steel Products and Other Steel Products as single segment hence Segment Reporting as defined in Accounting Standard 17 (AS-17) issued by The Institute of Chartered Accountants of India is not applicable to the company.

10. Related Party Disclosures

(A) The Company had transactions with the following related parties

Sr. No Name of the Related Party Relationship

1 Bilpower Limited Associate

2 Niksan Engineering Co. Limited Associate

3 Tarapur Transformers Limited Associate

4 Rajendra Kumar Choudhary Key Management Personnel

Note:- Figures in Brackets Relate to Previous Year

NOTES TO FINANCIAL STATEMENT

Disclosure in respect of Material Related Party Transactions During the year :

1 Purchase of Goods/Fixed Assets/Expenses includes : Bilpower Ltd Rs. 548.92 Lacs (P.Y. Rs. 1472.59 Lacs), Niksan Engineering Co.Ltd Rs. 0.02 Lacs (P.Y. Rs. Nil),Tarapur Transformers Ltd Rs. 386.69 Lacs (P.Y. Rs. 198.91)

2 Sale of Goods includes : Niksan Engineering Company Ltd Rs.Nil (P.Y. Rs.0.92 Lacs),Tarapur Transformers Ltd.Rs 30.25 Lacs (P.Y. Rs.181.21 Lacs), Bilpower Ltd Rs. 2313.17 Lacs (P.Y. Rs. Nil)

3 Labour Charges (Expenses) includes : Tarapur Transformers Ltd Rs. 0.12 Lacs (P.Y. Rs. Nil)

4 Interest Income includes : Niksan Engineering Company Ltd Rs.Nil (P.Y. Rs.0.28 Lacs)

5 Interest Expenses includes : Bilpower Ltd Rs.Nil (P.Y. Rs.338.94 Lacs)

6 Receiving of Services -Payment of Remuneration includes : Rajendra Kumar Choudhary Rs.7 Lacs (P.Y. Rs.Nil)

7 Finance (Including Loans & Equity Contributions on Cash or Kind)

A) Loans & Advances Received includes : Tarapur Transformers Ltd.Rs.148.50 Lacs. (P.Y. Rs.Nil), Bilpower Ltd.Rs.Nil (P.Y. Rs.5652.38 Lacs)

B) Loans & Advances Given includes : Bilpower Ltd.Rs.137.00 Lacs (P.Y. Rs.Nil)

8 Outstanding as at 31st March 20I2

A) Trade Payable : Niksan Engineering Company Ltd. Rs. 0.02 Lacs (P.Y. Rs. Nil) Tarapur Transformers Ltd.Rs. 5I9.23 Lacs (P.Y. Rs.I98.52 Lacs)

B) Loans & Advance Received : Tarapur Transformers Ltd.Rs.I48.50 Lacs. (P.Y. Rs.Nil)

C) Trade Receivable : Bilpower Ltd.Rs.711.98 Lacs (P.Y. Rs.Nil)

D) Loans & Advances Given : Bilpower Ltd.Rs.137.00 Lacs (P.Y. Rs. Nil)

E) Unsecured Loan Taken : Bilpower Ltd.Rs.Nil (P.Y. Rs.199.52 Lacs)

* Indigenous consumption includes imported material purchase locally.

Note : Last year's consumption of raw material is inclusive of consumption of WIP also.

Note:- Last year's consumption of raw material is inclusive of consumption of WIP also

36. The Company was incorporated as Bil Energy Systems Limited with an Authorized Share Capital of Rs. 1,00,00,000 divided into 10,00,000 Equity Shares of Face value Rs. 10 each, and later on the Authorized capital was increased to 11,00,00,000. The company took over from Bilpower Ltd its Wada unit as a going concern with effect from Ist April,2010.

37. Disclosure Pursuant to Adoption of Accounting Standard 15

Gratuity liability for the year is determined on actuarial valuation by The Life insurance company of India with whom the company has taken a policy for settlement of future gratuity liability.

38. In terms of the requirements of the Accounting Standards-28 on "Impairment of Assets" issued by the Institute of Chartered Accountants of India, the amount recoverable against Fixed Assets has been estimated for the period by the management based on present value of estimated future cash flows expected to arise from the continuing use of such assets. The recoverable amount so assessed was found to be adequate to cover the carrying amount of the assets, therefore no provision for impairment in value thereof has been considered necessary, by the management.

39. As per the best estimate of the management, no provision is required to be made as per Accounting Standard (AS) 29 "Provision, Contingent Liabilities & Contingent Assets" as notified by the companies (Accounting Standards) Rules 2006, in respect of any present obligation as a result of a past event that could lead to a probable outflow of resources which would be required to settle the obligation.

11. Consumption of consumable stores is wholly indigenous in the current & previous year.

12. Balances of the Creditors / Debtors / Loans / Advances are subject to Confirmations and resultant reconciliation, if any.

13. Sundry Debtors as on the date of Balance sheet are Net of amounts received after discounting of Letter of Credits.

14. Previous Year Figures have been regrouped / Re cast / rearranged wherever necessary.-


Mar 31, 2011

1. Contingent Liabilities

(Rs. in Lacs)

Particulars 2010-11

Guarantees outstanding 43.50

Apart from the above there exists contingent liability in case of LCs issued and LCS discounted

2. Segment Reporting

The Company primarily deals in the business of Electrical Steel Products and Other Steel Products as single segment hence Segment Reporting as defined in Accounting Standard 17 (AS-17) issued by The Institute of Chartered Accountants of India is not applicable to the Company.

3. Related Party Disclosures

(A) The Company had transactions with the following related parties

Sr.Name of related party Relationship No. 1 Bilpower Limited Associate

2 Niksan Engineering Co. Pvt. Limited Associate

3 Tarapur Transformers Limited Associate

4. Deferred Tax Liability Consists of Deferred Tax Due to Difference Between Book and Tax Deprecation of Rs. 463.73 Lacs.

5. The Company has not paid any Managerial remuneration during the year.

6. The Company was incorporated as Bil Energy System Limited with an Authorised Share Capital of Rs. 1,00,00,000 divided into 10,00,000 Equity Shares of Face value Rs. 10 each, and later on the Authorised capital was increased to 11,00,00,000. The Company took over from Bilpower Ltd its Wada unit as a going concern.

7. Pursuant to a Scheme of Arrangement under Sections 391 to 394 of the Companies Act, 1956, Bilpower has demerged its wada unit and vested into the Company with effect from 1st April, 2010 on a going concern basis. The Scheme has been approved inter alia by the Shareholders of Bilpower on 18th May, 2010 and Hon'ble High Court of Bombay on 24th September, 2010 and the order has been filed with ROC on 14th October, 2010 and became effective.

8. In terms of the Scheme, the Company has issued and allotted its shares to the shareholders of Bilpower in the ratio of one equity share of face value of Rs. 10 each fully paid up in the Company for every one equity share of face value of Rs. 10 each fully paid held by the shareholders of Bilpower on 5th November, 2010. Upon allotment of equity shares to the shareholders of Bilpower, the shareholding of Bilpower in the Company has reduced to 0.66%. Though the assets and the liabilities as on 31/03/2010 arising out of the transferred business are vested in the Company, titles of the same are still not transferred in the name of the Company and being held in the name of Bilpower Ltd.

9. Transfer and vesting of assets and liabilities of the Wada unit of Bilpower to the Company has been effected at the values appearing in the books of accounts of Bilpower as at 1st April, 2010 and recorded as such in the book of accounts of the Company. Excess of assets over liabilities so recorded is recognized in these financial statements, and as stipulated in the scheme, has been credited to 'General Reserve' to the extend of Rs. 4,365.61 lacs. Transfer cost of assets on demerger will be borne by the Company pursuant to Scheme of Arrangement. Following is the brief summary of the assets and liabilities transferred on demerger:

10. Disclosure Pursuant to Adoption of Accounting Standard 15

Gratuity liability for the year is determined on actuarial valuation by the Life Insurance Company of India with whom the Bilpower Limited has taken a policy for settlement of future gratuity liability. The account will be bifurcated for the company's employees in due course.

11. Details of Dues to Micro Enterprises and Small Enterprises:

Under the Mirco, Small and Medium Enterprise Development Act, 2006 certain disclosure is required to be made related to micro, small and medium enterprise. The Company is in the process of complying relevant information on the supplier about their coverage under the act. Since relevant information is not reality available, no disclosure is made in account.

12. Term Deposit Receipts, wherever obtained, are endorsed in favour of Banks and Government Departments against Margin for Bank Guarantee, L/C Facilities etc.

13. Loans & Advance include `199.52 Lacs payable to associates. The maximum amount involved during the year Rs. 4078.81 Lacs.

14. Creditors include Rs. 198.52 Lacs payable to associates.

15. Some of the Creditors / Debtors / Loans / Advances are subject to Confirmations and resultant reconciliation, if any.

16. Sundry Debtors as on the date of Balance sheet are Net of amounts received after discounting of Letter of Credits.

17. Other Interest is net of interest income of Rs. 2.20 Lacs.

18. Previous Year Figures have been regrouped / Re cast / rearranged wherever necessary.


Mar 31, 2010

A) Previous years figures have not been provided, since this is the first year of Company

b) No amount is payable to any enterprise defined under the Micro Small and Medium Enterprise Development Act 2006 (MSMED Act) as at 31.03.2010

c) Other information required to be given in the accounts by virtue of schedule VI is either NIL or is NOT APPLICABLE to the company .

 
Subscribe now to get personal finance updates in your inbox!