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Notes to Accounts of Burnpur Cement Ltd.

Mar 31, 2015

1. Contingent Liability:

Particulars Amount as on Amount as on 31.03.2015 31.03.2014 (Rs. In Lacs) (Rs. In Lacs)

WBSEB Demand NIL NIL

VAT Liability NIL

Bank Guarantee Rs. 96.00 96.00

Sales Tax Demand NIL

Income Tax Demand NIL

Entry Tax NIL

2. The residual value of fixed assets whose residual life as per schedule II is over, has been w/off to retained earnings of the company amounting to Rs.3034367.00

3. The figures of Excise Duty paid are disclosed in the Books at the net figures after taking credit for rebate / refund of Excise Duty.

4. Figures pertaining to previous year have been re-grouped/re-arranged, reclassified and restated, wherever considered necessary, to confirm to the classification adopted in the current year.

5. There were no Foreign exchange inflow and outflow during the year.

6. Deferred Tax is recognized subject to consideration of prudence in respect of deferred tax assets on timing difference being the difference between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Reversal of deferred tax liability on account of depreciation and provision for gratuity is Rs.12282.00 (Credited into P/L Account) has been made in the Books of Accounts in accordance with Accounting Standard-22.

7. Service Tax is also being determined in accordance with the provision of Service Tax Law.

8. The company operates in Production and Sales of Cement and trading of cement & iron under the name & style of Burnpur Cement Limited. In current year, no segment reporting is required.

9. In terms of Section 22 of Micro, Small & Medium Enterprises Act 2006, the outstanding to these enterprises are required to be disclosed. However, these enterprises are required to be registered with under the Act. In the absence of the information about registration of the enterprises under the above Act, the required information could not be furnished. In view of above and in absence of relevant information, the auditor has relied upon the same.

10. Gratuity

The Company has defined gratuity plan. Every employee who has completed 5 years or more of service is entitled to gratuity on terms not less favourable than the provisions of the Payment of Gratuity Act, 1972. The amount of contribution to be made is arrived at based on Actuarial valuation done at the balance sheet date, as given below and is accounted accordingly:

11. Sundry Debtors, Sundry Creditors and advances to parties as reflected in the financial statements are subject to confirmations from the respective parties and management of the Company.

12. In the opinion of the management, the current assets, loans and advances have a value on realization in the ordinary course of business, which is at least equal to the amount at which they are stated.

13. Interest on fixed deposits taken in the financial statement is as per management's certificate.

14. RELATED PARTY DISCLOSURE

Related Party transaction as per Accounting Standard 18 issued by ICAI

A. As defined in Accounting Standard 18, the company has a related party relationship in the following:

Associate Companies:

a. Mittal Polypacks (P) Limited.

b. Dalhausi Datamatics (P) Limited

c. Bharosa Distributors (P) Limited

Key Management Personnel

a. Mr. Ashok Gutgutia, Vice Chairman and Managing Director

b. Mr. Manoj Kumar Agarwal, Director

c. Mr.Prem Prakash Agarwal, Director


Mar 31, 2014

Notes :

1 WBFC Loan is secured by way of :

a. First charge on the whole of the Plant & Machinery of the company only situated at its plant at Palashdiha, Kanyapur, Panchgachhia Road, Asansol, Burdwan both present and future.

b. Second Charge on the Current Assets of the company only situated at its plant at Palashdiha, Kanyapur, Panchgachhia Road, Asansol, Burdwan both present and future.

2 Payloader Loan from HDFC Bank Ltd. is secured by hypothecation of said Payloader.

3 Bolero Loan & Innova Loan From Axis Bank Ltd, is Secured by hypothecation of said Bolero & Innova.

4.Notes : Cash Credit is secured by

a Way of first charge hypothecation of present and future stock of raw Materials, Stores, Stock in Process, Chemicals & consumables, fuel, packing material, finished goods etc. and Book Debts of the company; b Way of second charge on the Plant & Machinery of the Company and personal Guarantees of the promoter directors of the company;

b Equitable Mortgage (1st Charge) of Land, Building and Shed at Factory, Palashdiha, Kanyapur, Asansol and Equitable Mortgage (1 st Change) of Land and Building at Dharma Mouza. d STDR of face value of Rs. 80 Lakhs and LIC Policy of Rs. 0.32 lakhs.

1. Excavator Loan from Indusind Bank Ltd. is secured by hypothecation of said Excavator.

2. Bridge Loan from West Bengal Industrial Development Corporation Ltd. secured against Interest Subsidy Sanctioned.

5.Notes

The consortium account from CBI Term Loan,SBH term Loan, SBI Asansol SME Term Loan & UBI Term Loan is secured by way of:-

a. First pari passu mortgage and charge on all the immovable properties both present and future of the borrower at the plant at Patratu,Jharkhand in favour of the lendor.

b. First Pari Passu charge by way of hypothecation on the borrower''s movables (excluding current assets), including movable plant and machinery,machinery spares, tools and accessories both present and future of the project at Patratu, Jharkhand and all the borrower''s fixed assets both present and future.

c. Second Pari Passu charge by way of hypothecation of all the borrower''s movable (excluding fixed assets), and including operating cash flows, book debt, receivables, commission and any other revenues of whatsover nature and wherever arising both present and future of the project at Patratu, Jharkhand subject to the lenders ceding second charge over the fixed assets of the borrower''s in favour of the working capital on the borrower''s current assets, both present and future.

d. Car Loan, Tipper Loan, Payloader Loan is secured by hypothecation of said Car, Tipper & Payloader.

e. The consortium Banks:- Central Bank of India,State Bank of Hyderabad,State Bank of India & United Bank of India have sanctioned term loan of Rs.125 crores.Out of the sanctioned amount, Rs.108.28.crores has been disbursed till 31 st March,2014.

6. Contingent Liability:

Particulars Amount as on 31.03.2014 Amount as on 31.03.2013 (Rs. In Lacs) (Rs. In Lacs)

WBSEB Demand NIL Rs.99.00

VAT Liability NIL Rs.37.09

Bank Guarantee Rs.96.00 Rs.96.00

Sales Tax Demand NIL Rs.59.72

Income Tax Demand NIL Rs.105.36

Entry Tax NIL Rs.7.11

7.. Depreciation on revalued fixed assets amounting to Rs.36,66,740.52 has been written off from revaluation reserve.

8.. The figures of Excise Duty paid are disclosed in the Books at the net figures after taking credit for rebate / refund of Excise Duty. Cenvat Credit on Capital goods amounting to Rs. 4,74,089.16 has been taken during the year for Asansol unit.

9. Figures pertaining to previous year have been re-grouped/re-arranged, reclassified and restated, wherever considered neces- sary, to confirm to the classification adopted in the current year.

10. There were no Foreign exchange inflow and outflow during the year.

11. Deferred Tax is recognized subject to consideration of prudence in respect of deferred tax assets on timing difference being the difference between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Reversal of deferred tax liability on account of depreciation for Rs. 19,62,670.00 (Debited into P/L Account) has been made in the Books of Accounts in accordance with Accounting Standard-22.

12. Service Tax is also being determined in accordance with the provision of Service Tax Law.

13. The company operates in Production and Sales of Cement under the name & style of Burnpur Cement Limited. In current year, no segment reporting is required.

14. In terms of Section 22 of Micro, Small & Medium Enterprises Act 2006, the outstanding to these enterprises are required to be disclosed. However, these enterprises are required to be registered with under the Act. In the absence of the information about registration of the enterprises under the above Act, the required information could not be furnished. In view of above and in absence of relevant information, the auditor has relied upon the same.

15. Gratuity

The Company has defined gratuity plan. Every employee who has completed 5 years or more of service is entitled to gratuity on terms not less favourable than the provisions of the Payment of Gratuity Act, 1972. The amount of contribution to be made is arrived at based on Actuarial valuation done at the balance sheet date, as given below and is accounted accordingly:

Opening Balance as per Books Rs. 43,34,861.00

Closing Balance as per Actuarial Valuation Rs. 53,47,384.00

Provision made during the Year Rs. 10,12,523.00

Gratuity Paid during the year Rs. 0.00

16. Sundry Debtors, Sundry Creditors and advances to parties as reflected in the financial statements are subject to confirmations from the respective parties and management of the Company.

17. In the opinion of the management, the current assets, loans and advances have a value on realization in the ordinary course of business, which is at least equal to the amount at which they are stated.

18. Interest on fixed deposits taken in the financial statement is as per management''s certificate.


Mar 31, 2013

1. Contingent Liability:

Particulars Amount as on 31.03.2013 Amount as on 31.03.2012

(Rs. In Lacs) (Rs. In Lacs)

WBSEB Demand Rs. 99.00 Rs. 99.00

VAT Liability Rs. 37.09 Rs. 37.09

Bank Guarantee Rs. 96.00 Rs. 115.16

Sales Tax Demand Rs. 59.72 Rs. 59.72

Income Tax Demand Rs. 105.36 Rs. 105.36

Entry Tax Rs. 7.11

2. Depreciation on revalued fixed assets amounting to Rs.3666740.52 has been written off from revaluation reserve.

3. The figures of Excise Duty paid are disclosed in the Books at the net figures after taking credit for rebate / refund of Excise Duty. Cenvat Credit on Capital goods amounting to Rs. 8,26,949.50/- has been taken during the year for Asansol unit.

4. Figures pertaining to previous year have been re-grouped/re-arranged, reclassified and restated, wherever considered neces- sary, to confirm to the classification adopted in the current year.

5. There were no Foreign exchange inflow and outflow during the year.

6. Deferred Tax is recognized subject to consideration of prudence in respect of deferred tax assets on timing difference being the difference between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Creation of deferred tax liability on account of depreciation for Rs. 3346181.00 (Debited into P/L Account) has been made in the Books of Accounts in accordance with Accounting Standard-22.

7. Service Tax is also being determined in accordance with the provision of Service Tax Law.

8. The company operates in Production and Sales of Cement and trading in Lime Stone under the name & style of Burnpur Cement Limited. In current year, no segment reporting is required.

9. In terms of Section 22 of Micro, Small & Medium Enterprises Act 2006, the outstanding to these enterprises are required to be disclosed. However, these enterprises are required to be registered with under the Act. In the absence of the information about registration of the enterprises under the above Act, the required information could not be furnished. In view of above and in absence of relevant information, the auditor has relied upon the same.

10. Gratuity

The Company has defined gratuity plan. Every employee who has completed 5 years or more of service is entitled to gratuity on terms not less favourable than the provisions of the Payment of Gratuity Act, 1972. The amount of contribution to be made is arrived at based on Actuarial valuation done at the balance sheet date, as given below and is accounted accordingly:

Opening Balance as per Books Rs. 32,77,184.00

Closing Balance as per Actuarial Valuation Rs. 43,34,861.00

Provision made during the Year Rs. 10,72,677.00

Gratuity Paid during the year Rs. 15,000.00

11. Sundry Debtors, Sundry Creditors and advances to parties as reflected in the financial statements are subject to confirmations from the respective parties and management of the Company.

i. It was informed by the Management that petition for renewal of eligibility certificate for exemption under West Bengal Value Added Tax Act, 2003 is pending before EC Cell, Kolkata. If the certificate is not granted, the Company may be liable to pay tax to the extent of Rs. 37.09 Lacs.

ii. Demand of Rs.59.72 Lac and Rs.9.29 raised on completion of Sales Tax Assessment for the years ended on 31-03-1996, 31- 03-2005 & 31.03.2010 under West Bengal Sales Tax Act, 1994, WBVAT Act, 2003 and CST Act. have not been provided for in the books. It is explained by the Management that the whole demand is disputed and revision/ appeal have been preferred before appropriate Appellate Forum and the management has bonafide belief that demand will be reduced to Nil on disposal of revision / appeal proceedings.

12. In the opinion of the management, the current assets, loans and advances have a value on realization in the ordinary course of business, which is at least equal to the amount at which they are stated.

13. Interest on fixed deposits taken in the financial statement is as per management''s certificate.

14. RELATED PARTY DISCLOSURE

Related Party transaction as per Accounting Standard 18 issued by ICAI

A. As defined in Accounting Standard 18, the company has a related party relationship in the following:

Associate Companies :

a. Bharat Cement Pvt. Ltd.

b. Mittal Polypacks (P) Limited.

c. Dalhausi Datamatics (P) Limited

d. Bharosa Distributors (P) Limited

Key Management Personnel

a. Mr. Ashok Gutgutia, Vice Chairman and Managing Director

b. Mr. Manoj Kumar Agarwal, Director

c. Mr. Ram Prasad Agarwal

d. Ram Prasad Agarwal (HUF)

e. Shakuntala Agarwal

f. Suchitra Agarwal


Mar 31, 2010

1. Depreciation on revalued fixed assets amounting to Rs. 3676814.00 has been written off from revaluation reserve.

2. The figures of Excise Duty paid are disclosed in the Books at the net figures after taking credit for rebate / refund of Excise Duty. Cenvat Credit on Capital goods has been taken during the year for Rs.100839.00.

3. Figures pertaining to previous year have been re-grouped/re-arranged, reclassified and restated, wherever considered necessary, to confirm to the classification adopted in the current year.

4. There were no Foreign exchange inflow and outflow during the year.

5. Service Tax is also being determined in accordance with the provision of Service Tax Law.

+ a. Mr.Kailash Prasad Agarwal has been appointed as Executive Director of the company w.e.f 1st August, 2008.

b. The above remuneration paid to the Whole Time Directors is the minimum remuneration paid in terms of part II of Schedule XIII of the Companies Act, 1956.

6. Expenditure exceeding 1% of revenue included in Miscellaneous Expenses : Nil

7. The company operates in a Production and Sales of Cement under the name & style of Burnpur Cement and also as developers under the name and style of BCL Developers. As the revenue generated from BCL Developers is less than the prescribe percentage as per Accounting Standard-17 for "Segment Reporting", no segment reporting is required. However Balance Sheet of BCL Developers is merged with the line by line with the Balance Sheet of Burnpur Cement Ltd.

8. The revenue of BCL Developer has been recognized as per the Accounting Standard-7 issued by ICAI. During this year 100% completion has been made of the construction work under BCL Developer.

9. In terms of Section 22 of Micro, Small & Medium enterprises Act 2006, the outstanding to these enterprises are required to be disclosed. However, these enterprises are required to be registered under the Act. In the absence of the information about registration of the enterprises under the above Act, the required information could not be furnished. In view of above and in absence of relevant information, the auditor has relied upon the same.

10. Sundry Debtors, Sundry Creditors and advances to parties as reflected in the financial statements are subject to confirmations from the respective parties.

i. It was informed by the Management that petition for renewal of eligibility certificate for exemption under West Bengal Value Added Tax Act, 2003 is pending before EC Cell, Kolkata. If the certificate is not granted, the Company may be liable to pay tax to the extent of Rs. 41.30 Lacs.

ii. Demand of Rs.55.07 Lac raised on completion of Sales Tax Assessment for the years ended on 31-03-1996 and 31-03-2005 under West Bengal Sales Tax Act, 1994, have not been provided for in the books as explained by the Management that the whole demand is disputed and revision/ appeal have been preferred before appropriate Appellate Forum and the management has bonafide belief that demand will be reduced to Nil on disposal of revision / appeal proceedings.

11. Deferred Tax Liability

Deferred Tax is recognized subject to consideration of prudence in respect of deferred tax assets on timing difference being the difference between the taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Reversal of deferred tax liability on account of depreciation for Rs.904768.00 has been made in the Books of Accounts in accordance with Accounting Standard-22

12. In the opinion of the Management, the current assets, loans and advances have a value on realization in the ordinary course of business, which is at least equal to the amount at which they are stated.

13. Estimated amount of contract remaining to be executed on capital account (Net of Advance) and not provided for Rs. 60.00 crores.

14. Burnpur Natural resources Pvt Ltd has been disintegrated from Burnpur Cement Ltd by sale its share held by the company and the Board has accorded its approval for the same.

SCHEDULE-21

RELATED PARTY DISCLOSURE

Related Party transaction as per Accounting Standard 18 issued by ICAI

A. As defined in Accounting Standard 18, the company has a related party relationship in the following:

1. Controlling Company : Nil

2. Subsidiary Company: Nil

3. Associate Companies:

a. Insight Consultants Pvt. Ltd.

b. Bharat Cement Pvt. Ltd.

c. Goyal Auto Distributors Pvt. Ltd

d. Burnpur Infrastructure Private Limited

e. Burnpur Ispat Private Limited

f. Burnpur Power Private Limited

g. Burnpur Natural Resources Pvt Ltd

h. R. A. Gutgutia & Co. (Partnership Firm) Partners: Ashok Gutgutia & Shashi Gutgutia i. A. K. Gutgutia & Sons (HUF)

4. Key Management Personnel

a. Mr. Ashok Gutgutia, Vice Chairman and Managing Director

b. Mr. Kailash Prasad Agarwal, Executive Director

5. Relatives of the key managerial personnel

Not applicable since there are no transactions with the relatives of key management personnel.

 
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