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Notes to Accounts of Century Extrusions Ltd.

Mar 31, 2015

Note : 1

a. Terms / Rights attached to Equity Shares :

The Company has only equity shares having a par value of Re.l/- per share. Each holder of Equity Shares is entitled to one vote per share and the dividend, if proposed by the Board of Directors and approved by the Shareholders in the ensuring Annual General Meeting. In the event of liquidation of the Company,the holders of Equity Shares shall be entitled to receive proportionately, any of the remaining assets of the Company after distribution of all preferential amounts.

b. Reconciliation of the shares outstanding at the beginning and at the end of the reporting period :

The Company has neither issued nor bought back any shares during the financial year under review, hence there is no change in number of shares outstanding at the beginning and end of the year.

c. The Company is not a Subsidiary Company.

d. The Company has neither issued any Bonus Shares nor alloted any shares pursuant to a contract without payment received in cash nor bought back any shares during the financial year and in the immediately preceding five financial years.

Note : 2

a. Rs. 76 lacs includes Rs.51 lacs shown in Current maturities of Long Term Borrowings (refer note no.9) from Axis Bank is secured by first charge on entire fixed assets of the Company on Pari passu basis along with State Bank of India and Government of West Bengal and Second charge on the entire current assets both present and future of the Company on Pari passu basis with other Corporate Loan lenders. Futher, the loan has been guaranteed by the personal gurantee of the Chairman & Managing Director and one other Director of the Company.

Repayable in 12 quarterly installments of Rs. 12 Lacs each,commencing from December, 2013. Last installment due in September, 2016. Rate of interest 14.40% p.a. as at year end.

b. Rs. 92 lacs includes Rs.67 lacs shown in Current maturities of Long Term Borrowings (refer note no.9) from State Bank of India is secured by first charge on entire fixed assets of the Company on Pari passu basis along with Axis Bank and Government of West Bengal and Second charge on the entire current assets both present and future of the Company on Pari passu basis with other Corporate Loan lenders. Futher, the loan has been guaranteed by the personal gurantee of the Chairman & Managing Director and one other Director of the Company.

Repayable in 12 quarterly installments of Rs. 12 Lacs each,commencing from December, 2013. Last installment due in September, 2016. Rate of interest 14.50% p.a. as at year end.

Note : 3

a. Rs.3 lacs includes Rs. 1 lac shown in Current maturities of Long Term Borrowings (refer note no.9) from Axis Bank are secured by hypothecation of vehicles purchased out of the said loan.

Repayable in 60 equated monthly installments of Rs. Nil (10577) each, commencing from July,2012. Last installment due in June,2017. Rate of interest 11.59% p.a. as at year end.

b. Rs.3 lacs includes Rs.l lac shown in Current maturities of Long Term Borrowings (refer note no.9) from Axis Bank are secured by hypothecation of vehicles purchased out of the said loan.

Repayable in 60 equated monthly installments of Rs. Nil (8336) each, commencing from August,2013. Last installment due in July,2018. Rate of interest 10.25% p.a. as at year end.

c. Rs.9 lacs includes Rs.3 lac shown in Current maturities of Long Term Borrowings (refer note no.9) from Kotak Mahindra Bank are secured by hypothecation of vehicles purchased out of the said loan.

Repayable in 36 equated monthly installments of Rs. Nil (32503) each, commencing from November, 2014. Last installment due in October, 2017. Rate of interest 10.49% p.a. as at year end.

Note : 4

a. Working Capital Loan from Banks are secured - i) By first Hypothecation of stock and receivables and all other current assets of the Company, present and future on Pari-passu basis among consortium Bankers. ii) By second charge on entire fixed assets of the Company on Pari-passu basis among consortium Bankers along with Government of West Bengal for Sales Tax Loan, iii) By personal guarantees of the Chairman & Managing Director and one other Director of the company.

b. Channel Financing from ICICI Bank Ltd. is secured against pledge of fixed deposit to the extent of 15% of sanctioned limit. It is further secured by personal guarantee of the Chairman & Managing Director and one other director of the Company.

c. Channel Financing from Yes Bank Ltd. is secured against pledge of fixed deposit to the extent of 15% of sanctioned limit. It is further secured by personal guarantee of the Chairman & Managing Director and one other director of the Company.

Note : 5

Current Maturities of Long Term Borrowing includes

Term Loan from Bank referred above to the extent of:

Rs. 13 lacs from Axis Bank is secured by first charge on entire fixed assets of the Company on Pari passu basis along with State Bank of India and Government of West Bengal and Second charge on the entire current assets of the Company on Pari passu basis with other member Banks, boths present and future. Futher, the loan has been guaranteed by the personal gurantee of the Chairman & Managing Director and one other Director of the Company.

Repayable in 12 quarterly installments, First 11 Installments of Rs. 17 Lacs each,commencing from July, 2012. Last installment of Rs. 13 Lacs due in April 2015. Rate of interest 14.40% p.a. as at year end.

9.2 Vehicle Loan from Banks referred above to the extent of:

Rs.2 lacs from Axis Bank are secured by hypothecation of vehicles purchased out of the said loan.

Repayable in 60 equated monthly installments of Rs. Nil (17038) each, commencing from May,2011. Last installment due in April 2016. Rate of interest 10.59% p.a. as at year end.

9.3 Term Loan from Government of West Bengal referred above to the extent of:

Rs.160 lacs from Govt, of West Bengal is secured by first charge on entire fixed assets of the Company both present and future on Pari-passu basis along with Axis Bank and State Bank of India. The Company is defaulted in repayment of Rs.80 lacs to the Govt, of West Bengal.

Repayable in 5 Yearly installments of Rs. 80 Lacs each,commencing from November, 2010. Last installment due in November 2014. Rate of Interest 8.75%.

9.4 Sales Tax Loan from Government of West Bengal referred above to the extent of

Rs.196 lacs from Govt, of West Bengal is secured by way of residuary charge on all fixed assets of the Company, both present and future, situated at Company's factory at Kharagpur in West Bengal.

Repayable in 8 Yearly installments of Rs. 39 Lacs each,commencing from March, 2011. Last installment due in March 2018.Rate of Interest 8.75%.

Note : 6

Defined Benefit Plan

The Century Extrusions Employee's Gratuity Fund managed by a Trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

Note : 7

SEGMENT REPORTING

The Company has two business segments i.e. manufacturing of Aluminium Extruded products and manufacturing of Transmission and Distribution Line Hardware. However, the Company does not fall under any of the criteria laid down under AS -17 and hence segment reporting is not applicable.

Note : 8

RELATED PARTY DISCLOSURES

a) Names of related parties and related party transactions

Name of Related Party Relationship

Century Aluminium Mfg. Co. Ltd : Associated Concern

Paramsukh Properties Pvt. Ltd : Associated Concern

Alfa Aluminium ( P) Ltd : Associated Concern

Kutir Udyog Kendra (India ) Ltd : Associated Concern

CAMCO Multi Metal Ltd. : Associated Concern

b) Key Management Personnel & their relatives

(i) Mr. M.P. Jhunjhunwala : Chairman & Managing Director

Relatives of Mr. M.P. Jhunjhunwala:

Mrs. Sita Devi Jhunjhunwala : Wife

Mr. Vikram Jhunjhunwala : Son

Mrs. Saroj Saraf : Daughter

Mrs. Shashi Khaitan : Daughter

Mrs. Sarita Modi : Daughter

(ii) Mr. J.K. Malpani : President

Relatives of Mr. J.K. Malpani

Mrs. Deepa Malpani : Wife

Ms. Shikha Malpani : Daughter

(iii) Mr. Vikram Jhunjhunwala : Director

Relatives of Mr. Vikram Jhunjhunwala

Mr. Shivanshu Jhunjhunwala : Son

Note : 9

CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED

(i) Contingent Liabilities

(a) Guarantees / Letter of Credits * 1,437 1,445

(b) Other money for which the company 55 133 is contingently liable:

1. Bills Discounted with Banks 281 218

2. Sales Tax demand** 3 3

3. Employees State Insurance demand*** 330 189

4. West Bengal Entry Tax ****

5. Export obligation under EPCG*****

Amount not determinable 2106 1988

* Bank Guarantees outstanding Rs. 351 lacs (previous year Rs.258 lacs) and Letters of Credit issued by Banks on behalf of the Company Rs. 1086 Lacs (Previous year Rs. 1187 lacs) against which Rs. 166 lacs (previous year Rs. 164 lacs) have been deposited with the Banks as Margin Money.

** The Company has received Sales Tax demand of Rs 10 lacs, Rs.8 Lacs, Rs.10 lacs, Rs.66 lacs, Rs. 12 lacs, Rs.3 lacs, Rs.46 Lacs, Rs. 63 lacs and 63 lacs respectively for the years 2003-2004,2004-2005,2005-2006,2006-2007,2007-08, 2008-2009, 2009-2010, 2010-2011 and 2011-12 against which the Company has preferred appeals before the higher authorities.

*** The Employees State Insurance Corporation (ESI) has raised a demand of Rs.3 lacs plus interest of Rs. Nil Lac (Rs. 108.81 P) per day w.e.f. 1.1.2004 for the period 1999-2000 to 2000-2001. The company has preferred an appeal against the demand at the Employees Insurance Court, West Bengal. The Honorable Court has stayed the demand till final disposal of Company's appeal.

**** The Divisional Bench of Hon'ble High Court, Calcutta has stayed the operation of single bench order dated 24-06-2013, which ordered levy of West Bengal Tax on Entry of Goods into Local Areas Act, 2012 as ultra vires to the Constitution of the India. The Hon'ble High Court, further directed that the assessment proceedings should go on. In view of above and as per legal opinion obtained by the Company, the Company has written back Rs. 26 lacs unpaid amount of said tax for the financial year 2012-13 and no provision of the tax of Rs. 330 Lacs (Previous year 189 Lacs) inclusive of unpaid amount of Rs 141 Lacs for current year and other consequestional demand arise from assessment is considered necessary.

***** The Company had imported machinery on subsidized rate of duty under Export Promotion Capital Goods Scheme (EPCG). Accordingly the Company is under an obligation to export to the extent of Rs. 3486 lacs, i.e. eight times of the duty saved, in eight years from the date of issue of authorization. The Company has made export for the value of Rs. 2454 lacs ( Previous year Rs 1868 lacs) till 31st March, 2015. If the Company is unable to fulfill the full export obligation within the stipulated period, it would be liable to pay proportionate duty saved along with interest at the rate of 15% p.a.

Note : 10

The Company received a letter from National Stock Exchange of India Limited (NSE) dated February 27, 2015 to restate its financial statements for the financial year ended 31st March 2013 in respect of Dies and Moulds pursuant to clause 5(d) (ii) of circular No.CIR/CFD/DIL/7/2012 dated August 13,2012 read with Circular No.CIR/CFD/DIL/9/2013 dated June 05, 2013. The Company has requested NSE for a personal hearing on this matter. Pending outcome, the aforesaid financial statements have not been restated and accounting of Dies and Moulds have been carried out on the same basis as followed in the previous year.

Note 11

Previous year's figures have been regrouped/rearranged, wherever considered necessary.

Note 12

BASIS OF PREPERATION OF FINANCIAL STATEMENTS:

The financial statements have been prepared in accordance with generally accepted accounting principles in India, The Company has prepared these financial statements to comply in all material respects with the notified provisions of the Companies Act, 2013 and the Companies Rules as prescribed. The financial statements have been prepared under the historical cost convention on an accrual basis except in case of assets for which provision for impairment is made and revaluation is carried out.


Mar 31, 2014

1.1 Term Loan from Banks referred above to the extent of :

a. Rs. 375 lacs includes Rs.300 lacs shown in Current maturities of Long Term Borrowings (refer note no.9) from State Bank of India is secured by first charge on entire fixed assets of the Company on Pari passu basis along with Axis Bank and Government of West Bengal and Second charge on the entire current assets of the Company on Pari passu basis with other member Banks, boths present and future. Futher, the loan has been guaranteed by the personal gurantee of the Chairman & Managing Director and one other Director of the Company.

a. Rs. 80 lacs includes Rs.67 lacs shown in Current maturities of Long Term Borrowings (refer note no.9) from Axis Bank is secured by first charge on entire fixed assets of the Company on Pari passu basis along with State Bank of India and Government of West Bengal and Second charge on the entire current assets of the Company on Pari passu basis with other member Banks, boths present and future. Futher, the loan has been guaranteed by the personal gurantee of the Chairman & Managing Director and one other Director of the Company.

Repayable in 20 quarterly installments of Rs. 75 Lacs each,commencing from July, 2010. Last installment due in April 2015. Rate of interest 14.10% p.a. as at year end.

Repayable in 12 quarterly installments, First 11 Installments of Rs. 17 Lacs each, commencing from July, 2012. Last installment of Rs. 13 Lacs due in April 2015. Rate of interest 14.50% p.a. as at year end.

a. Rs. 125 lacs includes Rs.50 lacs shown in Current maturities of Long Term Borrowings (refer note no.9) from Axis Bank is secured by first charge on entire fixed assets of the Company on Pari passu basis along with State Bank of India and Government of West Bengal and Second charge on the entire current assets both present and future of the Company on Pari passu basis with other Corporate Loan lenders. Futher, the loan has been guaranteed by the personal gurantee of the Chairman & Managing Director and one other Director of the Company.

Repayable in 12 quarterly installments of Rs. 12 Lacs each,commencing from December, 2013. Last installment due in September, 2016. Rate of interest 14.50% p.a. as at year end.

a. Rs. 137 lacs includes Rs.50 lacs shown in Current maturities of Long Term Borrowings (refer note no.9) from State Bank of India is secured by first charge on entire fixed assets of the Company on Pari passu basis along with Axis Bank and Government of West Bengal and Second charge on the entire current assets both present and future of the Company on Pari passu basis with other Corporate Loan lenders. Futher, the loan has been guaranteed by the personal gurantee of the Chairman & Managing Director and one other Director of the Company.

Repayable in 12 quarterly installments of Rs. 12 Lacs each,commencing from December, 2013. Last installment due in September, 2016. Rate of interest 14.85% p.a. as at year end.

1.2 Vehicle Loan from Banks referred above to the extent of :

a. Rs.4 lacs includes Rs. 1 lacs shown in Current maturities of Long Term Borrowings (refer note no.9) from Axis Bank are secured by hypothecation of vehicles purchased out of the said loan.

Repayable in 60 equated monthly installments of Rs.Nil (17038) each, commencing from May, 2011. Last installment due in April 2016. Rate of interest 10.59% p.a. as at year end.

b. Rs.3 lacs includes Rs. 1 lac shown in Current maturities of Long Term Borrowings (refer note no.9) from Axis Bank are secured by hypothecation of vehicles purchased out of the said loan.

Repayable in 60 equated monthly installments of Rs.Nil (10577) each, commencing from July,2012. Last installment due in June,2017. Rate of interest 11.59% p.a. as at year end.

c. Rs.3 lacs includes Rs. 1 lac shown in Current maturities of Long Term Borrowings (refer note no.9) from Axis Bank are secured by hypothecation of vehicles purchased out of the said loan.

Repayable in 60 equated monthly installments of Rs.Nil (8336) each, commencing from August,2013. Last installment due in July,2018. Rate of interest 10.25% p.a. as at year end.

Note 2

a. Working Capital Loan from Banks are secured - i) By first mortgage on all the immovable properties and a first charge by way of hypothecation of plant & machinery of the Company, both present and future, (except the fixed assets created out of the term loan on which the lender has exclusive first charge and the other consortium banks along with Govt. of West Bengal have pari passu second charge situated at Company''s factory at Kharagpur in West Bengal). ii) By first charge by hypothecation of stocks, receivables and other current assets. iii) By personal guarantees of the Chairman & Managing Director and one other Director of the Company.

b. Channel Financing from ICICI Bank Ltd. is secured against pledge of fixed deposit to the extent of 15% of sanctioned limit. It is further secured by personal guarantee of the Chairman & Managing Director and one other director of the Company.

c. Channel Financing from Yes Bank Ltd. is secured against pledge of fixed deposit to the extent of 15% of sanctioned limit. It is further secured by personal guarantee of the Chairman & Managing Director and one other director of the Company.

2.1 Current Maturities of Long Term Borrowing includes

a. Vehicle Loan from Banks referred above to the extent of :

a. Rs.2 lacs from Axis Bank are secured by hypothecation of vehicles purchased out of the said loan.

Repayable in 60 equated monthly installments of Rs.Nil (22876) each, commencing from December, 2009. Last installment due in November 2014. Rate of interest 9.00% p.a. as at year end.

2.2 Term Loan from Government of West Bengal referred above to the extent of :

a) Rs.20 lacs from Govt. of West Bengal is secured by first charge on entire fixed assets of the Company both present and future on Pari- passu basis along with Axis Bank and State Bank of India.

Repayable in 5 Yearly installments of Rs. 20 Lacs each,commencing from July, 2010. Last installment due in July 2014. Rate of Interest 8.75%.

a) Rs.160 lacs from Govt. of West Bengal is secured by first charge on entire fixed assets of the Company both present and future on Pari- passu basis along with Axis Bank and State Bank of India. The Company is defaulted in repayment of Rs.80 lacs to the Govt. of West Bengal.

Repayable in 5 Yearly installments of Rs. 80 Lacs each,commencing from November, 2010. Last installment due in November 2014. Rate of Interest 8.75%.

2.3 Sales Tax Loan from Government of West Bengal referred above to the extent of :

Rs.196 lacs from Govt. of West Bengal is secured by way of residuary charge on all fixed assets of the Company, both present and future, situated at Company''s factory at Kharagpur in West Bengal.

Repayable in 8 Yearly installments of Rs. 39 Lacs each,commencing from March, 2011. Last installment due in March 2018.Rate of Interest 8.75%.

4.1 Fixed Deposit Rs.304 lacs (Previous Year Rs.320 lacs) is pledged with Banks as Margin Money

4.2 Figures in brackets represent previous year figure.


Mar 31, 2013

Note 1

EMPLOYEE BENEFITS

Employee Benefits have been provided as per provisions of Revised Accounting Standard 15 (AS 15).

Defined Contribution Plan

Contribution to Defined Contribution Plan, recognized as expenses for the year are as under:

Defined Benefit Plan

The Century Extrusions Employee''s Gratuity Fund managed by a Trust is a defined benefit plan.The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

Note 2

SEGMENT REPORTING

The Company has two business segments i.e. manufacturing of Aluminium Extruded products and manufacturing of Transmission and Distribution Line Hardware.However, the Company does not fall under any of the criteria laid down under AS -17 and hence segment reporting is not applicable.

Note 3

Contingent liabilities and commitments (to the extent not provided for) Rs. In lacs Rs. In lacs As at 31.03.2013 As at 31.03.2012

i) Contingent Liabilities

(a) Guarantees/Letter of Credits* 1440 1497

(b) Other money for which the company is contingently liable:

1. Bills discounted with Banks 412 178

2. Sales Tax demand** 155 122

3. Employees State Insurance demand*** 3 3

4. Export obligation under EPCG**** Amount not determinable 2010 1800

ii) Commitments

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances)6 254

6 254

2016 2054

* Bank Guarantees outstanding Rs. 251 lacs (previous year Rs.309 lacs) and Letters of Credit issued by Banks on behalf of the Company Rs. 1189 Lacs (Previous year Rs. 1188 lacs) against which Rs. 185 lacs (previous year Rs. 159 lacs) have been deposited with the Banks as Margin Money.

** The Company has received Sales Tax demand of Rs 10 lacs, Rs.8Lacs, Rs.10 lacs, Rs.66 lacs, Rs. 12 lacs, 3 lacs and Rs.46 Lacs respectively for the years 2003-2004,2004-2005,2005-2006,2006-2007,2007-08,2008-2009 and 2009-2010 against which the Company has preferred appeals before the higher authorities.

*** The Employees State Insurance Corporation (ESI) has raised a demand of Rs.3 lacs plus interest of Rs. Nil Lac (Rs. 108.81 P) per day w.e.f. 1.1.2004 for the period 1999-2000 to 2000-2001. The company has preferred an appeal against the demand at the Employees Insurance Court, West Bengal. The Honorable Court has stayed the demand till final disposal of Company''s appeal.

**** The Company had imported machinery on subsidized rate of duty under Export Promotion Capital Goods Scheme (EPCG). Accordingly the Company is under an obligation to export to the extent of Rs. 3486 lacs, i.e. eight times of the duty saved, in eight years from the date of issue of authorization. The Company has made export for the value of Rs. 1206 lacs till 31st March, 2013. If the Company is unable to fulfill the full export obligation within the stipulated period, it would be liable to pay proportionate duty saved along with interest at the rate of 15% p.a.

Note 4

Due to high life of Dies and its Tools corresponding to manufacturing of particular profile during the year, the management has reviewed the policy of charging the value of Dies and its Tools to Revenue Account and based on such review, it has been decided to value such dies and its Tools at lower of valuation at the year end carried out by approved valuer considering its residual useful life or net realisable value.

As a result of this change in accounting method for Dies and its Tools, the loss for the year is understated by Rs. 173 lacs and the Reserve and Surplus is overstated by Rs.l 16 Lacs.

Note 5

PREVIOUS YEARF1GURES

Previous year''s figures have been regrouped/rearranged, wherever considered necessary.

Note 6

BASIS OF PREPERATION OF FINANCIAL STATEMENTS:

The financial statements have been prepared in accordance with generally accepted accounting principles in India. The Company has prepared these financial statements to comply in all material respects with the notified accounting standard by Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis except in case of assets for which provision for impairment is made and revaluation is carried out.


Mar 31, 2012

Note 1

a. Terms/Rights attached to Equity Shares :

The Company has only equity shares having a par value of Re. 1/- per share. Each holder of Equity Shares is entitled to one vote per share and the dividend, if proposed by the Board of Directors and approved by the Shareholders in the ensuring Annual General Meeting. In the event of liquidation of the Company, the holders of Equity Shares shall be entitled to receive proportionately, any of the remaining assets of the Company after distribution of all preferential amounts.

b. Reconciliation of the shares outstanding at the beginning and at the end of the reporting period :

The Company has neither issued nor bought back any shares during the financial year under review, hence there is no change in number of shares outstanding at the beginning and end of the year.

c. The Company is not a Subsidiary Company.

d. The Company has neither issued any Bonus Shares nor allot any shares pursuant to contract without payment received in cash nor bought back any shares during the financial year and in immediately preceding five financial years.

f. There are no Shares reserved for issue under options.

g. There is no Convertible Securities outstanding at the end of the reporting period.

2.1 Term Loan from Banks referred above to the extent of:

a. Rs. 900 lacs includes Rs. 225 Repayable in 20 quarterly lacs shown in Current maturities installments of Rs. 75 Lacs each, of Long Term Borrowings (refer commencing from July, 2010. Last note no. 9) from State Bank of installment due in April 2015. India is secured by exclusive Rate of interest 14.25% p.a. as first charge over fixed assets at year end. created out of this term loan and second charge on the current assets of the company. Further, the loan has been guaranteed by the personal guarantee of the Chairman & Managing Director and one other Director of the Company.

b. (i) Rs. 6 lacs includes Rs. Repayable in 12 quarterly 6 lacs shown in Current installments, First 11 maturities of Long Term Installments of Rs. 17 Lacs Borrowings ( refer note no. 9) each, commencing from July, from Axis Bank is secured by 2012. Last installment of exclusive first charge over Rs. 17 Lacs due in April fixed assets created out of 2013, Rate of interest 14.25% this term loan and Pari passu p.a. as at year end. second charge on the entire current assets of the company both present and future, Further, the loan has been guaranteed by the personal guarantee of the Chairman & Managing Director and one other Director of the Company.

b. (ii) Balance sanctioned amount of Term loan from Axis Bank is availed/utilised in the financial year 2012-2013.

2.2 Vehicle Loan from Banks referred above to the extent of:

a. Rs.Nil lac (Rs.7711 /-) Repayable in 60 equated monthly includes Rs. Nil lac installments of Rs. Nil Lac (Rs. 7711/-) shown in Current (Rs. 7711/-) each, commencing maturities of Long Term from June, 2007. Last Borrowings (refer note no. 9) installment due in April 2012. from ICICI Bank is secured by Rate of interest 12.89% p.a. hypothecation of vehicle as at year end. purchased out of the said loan.

b. Rs.l lac includes Rs. 1 lac Repayable in 59 equated shown in Current maturities of monthly installments of Long Term Borrowings ( refer Rs. Nil lac (Rs.7039) each, note no. 9) from HDFC Bank is commencing from November, secured by hypothecation of 2008. Last installment due vehicle purchased out of the in September 2013. Rate said loan. of interest 13.85% p.a. as at year end.

c. Rs.4 lacs includes Rs. 4 Repayable in 48 equated lacs shown in Current monthly installments of Rs. maturities of Long Term Nil Lac (Rs. 43,144) each, Borrowings ( refer note no. commencing from February, 9) from State Bank of India 2009. Last installment due are secured by hypothecation in January 2013. Rate of of vehicle purchased out of interest 14.25% p.a. as at the said loan. year end. d. Rs.2 lacs includes Rs. 1 Repayable in 48 equated lac shown in Current monthly installments of Rs. maturities of Long Term Nil lac (Rs. 9122) each, Borrowings (refer note no. commencing from May, 2009. 9) from State Bank of India Last installment due in are secured by hypothecation April 2013. Rate of interest of vehicle purchased out of 14.25% p.a. as at year end. the said loan.

e. Rs.6 lacs includes Rs. 2 Repayable in 60 equated lac shown in Current monthly installments of Rs. maturities of Long Term Nil Lac (Rs. 17038) each, Borrowings ( refer note no. commencing from May, 2011. 9) from Axis Bank are Last installment due in secured by hypothecation of April 2016. Rate of vehicle purchased out of interest 10.59% p.a. as the said loan. at year end.

f. Rs.7 Lacs includes Rs. 1 Repayable in 60 equated lac shown in Current monthly installments of Rs. maturities of Long Nil Lac (Rs. 22876) each, Term Borrowings (refer note commencing from December,2009. no. 9) from Axis Bank are Last installment due in secured by hypothecation of November 2014. Rate of vehicle purchased out of interest 9.00% p.a. as at the said loan. year end.

2.3 Term Loan from Government of West Bengal referred above to the extent of:

a. Rs.60 lacs includes Rs. Repayable in 5 Yearly 20 lacs shown in Current installments of Rs. 20 Lacs maturities of Long each, commencing from July, Term Borrowings ( refer 2010. Last installments due note no. 9) from Govt. of in July 2014. Rate of West Bengal is secured by Interest 8.75% less 2% per first mortgage on all the annum rebate for timely immovable properties and a repayment. first charge by way of hypothecation of plant & machinery of the Company, both present and future, (except the fixed assets created out of the term loan from State Bank of India on which the bank has exclusive first charge and the other consortium banks along with Government of West Bengal have pari passu second charge) situated at Company factory at Kharagpur in West Bengal, ranking pari passu with fund and non fund Credit Limits which the Company has availed from State Bank of India and Axis Bank Ltd.

b. Rs.240 lacs includes Rs. Repayable in 5 Yearly 80 lacs shown in Current installments of Rs. 80 maturities of Long Term Lacs each, commencing Borrowings ( refer note no. from November, 2010. 9) from Govt. of West Bengal Last installment due in is secured by first mortgage November 2014. Rate of on all the immovable Interest 8.75% less 2% properties and a first charge per annum rebate for by way of hypothecation of timely repayment. plant & machinery of the Company, both present and future, (except the fixed assets created out of the term loan from State Bank of India on which the bank has exclusive first charge and the other consortium banks along with Government of West Bengal have pari passu second charge) situated at Company factory at Kharagpur in West Bengal, ranking pari passu with fund and non fund Credit Limits which the Company has availed from State Bank of India and Axis Bank Ltd.

2.4 Sales Tax Loan from Government of West Bengal referred above to the extent of:

a. Rs.236 lacs includes Rs. Repayable in 8 Yearly 39 lacs shown in Current installments of Rs. 39 maturities of Long Term Lacs each, commencing Borrowings ( refer note from March, 2011. Last no. 9) from Govt. of West installments due in Bengal is secured by way of March 2018. Rate of residuary charge on all Interest 8.75% less 2% fixed assets of the Company, per annum rebate for both present and future, timely repayment. situated at Company's factory at Kharagpur in West Bengal.

2.5 Rs. 105 lacs includes Rs. 79 lacs shown in Current maturities of Long Term Borrowings (refer note no. 9) Deferred Sales Tax is interest free and has been received by the Company under the West Bengal Incentive Schemes, 1993. The scheme is eligible for deferment of payment of sales tax for 8 years commencement from May, 2005. Last installment due in May, 2013.

Note 3

a. Working Capital Loan from Banks are secured - i) By first mortgage on all the immovable properties and a first charge by way of hypothecation of plant & machinery of the Company, both present and future, (except the fixed assets created out of the term loan on which the lender has exclusive first charge and the other consortium banks along with Govt, of West Bengal have pari passu second charge situated at Company's factory at Kharagpur in West Bengal). ii) By first charge by hypothecation of stocks, receivables and other current assets. iii) By personal guarantees of the Chairman & Managing Director and one other Director of the Company.

b. Buyers Credit arrangement which is funded by the Bank's overseas branches is secured by local branch of Bank issuing the letter of comfort by blocking Letter of credit facility to that extent.

c. Channel Financing from ICICI Bank Ltd. is secured against pledge of fixed deposit to the extent of 15% of sanctioned limit. It is further secured by personal guarantee of the Chairman & Managing Director and one other director of the Company.

Note 4

EMPLOYEE BENEFITS

Employee Benefits have been provided as per provisions of Revised Accounting Standard 15 (AS 15).

Defined Benefit Plan

The Century Extrusions Employee's Gratuity Fund managed by a Trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

Note 5

SEGMENT REPORTING

The Company has two business segments i.e. manufacturing of Aluminium Extruded products and manufacturing of Transmission and Distribution Line Hardware. However, the Company does not fall under any of the criteria laid down under AS-17 and hence segment reporting is not applicable.

Note 6

RELATED PARTY DISCLOSURES

a) Names of related parties and related party transactions

Name of Related Party Relationship

Century Aluminium Mfg. Co. Ltd : Associated Concern

Vintage Capital Markets Ltd : Associated Concern

Paramsukh Properties Pvt. Ltd : Associated Concern

Jeco Exports and Finance Ltd : Associated Concern

CAMCO Multi Metal Ltd : Associated Concern

Alfa Aluminium (P) Ltd : Associated Concern

Vintage Securities Ltd : Associated Concern

Kutir Udyog Kendra (India) Ltd : Associated Concern

b) Key Management Personnel & their relatives

i) Shri M.P. Jhunjhunwala : Chairman & Managing Director

Relatives of Shri M.P. Jhunjhunwala:

Smt. Sita Devi Jhunjhunwala : Wife

Shri Vikram jhunjhunwala : Son

Smt. Saroj Saraf : Daughter

Smt. Shashi Khaitan : Daughter

Smt. Sarita Modi : Daughter

ii) Shri Kailash Baheti : Chief Executive Officer & ( Upto 17.10.2011) Chief Financial Officer

Relatives of Shri Kailash Baheti

Shri Shankar Lal Baheti : Father

Smt. Bimla Devi Baheti : Mother

Smt. Shashi Baheti : Wife

Ms. Ankita Baheti : Daughter

Ms. Apoorva Baheti : Daughter

iii) Shri J.K. Malpani : President

Relatives of Shri J.K. Malpani

Smt. Deepa Malpani : Wife

Ms. Shikha Malpani : Daughter

c) Disclosure of related party transactions Current Year ( 2011-2012) Nature of relationship/transactions.

Note 7

Contingent liabilities and commitments (to the extent not provided for)

Rs. In lacs Rs. In lacs As at 31.03.2012 As at 31.03.2011 i) Contingent Liabilities

(a) Guarantees* 1497 1674

(b) Other money for which the company is contingently liable

1. Bills discounted with Banks 178 117

2. Sales Tax demand** 123 106

3. Employees State Insurance demand*** 3 3

4. Export obligation under EPCG**** Amount not determinable

1801 1900 ii) Commitments

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for 254 27

254 27

2055 1927

* Bank Guarantees outstanding Rs. 309 lacs (previous year Rs. 273 lacs) and letters of credit issued by Banks on behalf of the Company Rs. 1188 Lacs (Previous year 1401 lacs) against which Rs. 159 lacs (previous year Rs. 169 lacs) have been deposited with the Banks as Margin Money.

** The Company has received Sales Tax demand of Rs. 10 lacs, Rs. 9 Lacs, Rs. 10 lacs, Rs. 66 lacs, Rs. 11 lacs and Rs. 17 Lacs respectively for the years 2003-2004, 2004-2005, 2005-2006, 2006-2007, 2007-08 and 2008-2009 against which the Company has preferred appeals before the higher authorities.

*** The Employees State Insurance Corporation (ESI) has raised a demand of Rs. 3 lacs plus interest of Rs. Nil lac (Rs. 108.81) per day w.e.f. 1.1.2004 for the period 1999-2000 to 2000-2001. The company has preferred an appeal against the demand at the Employees Insurance Court, West Bengal. The honorable court has stayed the demand till final disposal of Company's appeal.

**** The Company had imported machinery on subsidized rate of duty under Export Promotion Capital Goods Scheme (EPCG). Accordingly the Company is under an obligation to export to the extent of Rs. 3486 lacs, i.e. eight times of the duty saved, in eight years from the date of issue of authorization. The Company has made export for the value of Rs. 656 lacs till 31st March 2012. If the Company is unable to fulfill the full export obligation within the stipulated period, it would be liable to pay proportionate duty saved along with interest at the rate of 15% p.a.

Note 8

PREVIOUS YEAR FIGURES

The Company was using pre-revised Schedule VI to the Companies Act 1956, for preparation and presentation of its financial statements till the year 31st March, 2011. During the year ended 31st march, 2012, the revised schedule VI notified under the Companies Act, 1956, has become applicable to the Company. The Company has reclassified previous year figures to conform to this year's classification. The adoption of revised schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it significantly impacts presentation and disclosures made in the financial statements, particularly presentation of balance sheet.

Note 9

BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

The financial statements have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the notified accounting standard by Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis except in case of assets for which provision for impairment is made and revaluation is carried out.

The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.


Mar 31, 2010

1. Contingent Liabilities not provided in respect of:

a. Estimated amount of contracts (net of advance) remaining to be executed on Capital Account and not provided for as on 31st March 2010 is Rs 85.33 lacs (Previous year Rs 817.38 lacs).

b. The Company had imported machinery on subsidized rate of duty under Export Promotion Capital Goods Scheme (EPCG). Accordingly the Company is under an obligation to export to the extent of Rs. 3486.49 lacs, i.e. eight times of the duty saved, in eight years from the date of issue of authorization. During the year the Company has made export for the value of Rs. 197.79 lacs.If the Company is unable to fulfill the full export obligation within the stipulated period, it would be liable to pay proportionate duty saved along with interest at the rate of 15% p.a.

c. Bank Guarantees outstanding Rs.244.82 lacs (previous year Rs. 111.68 lacs) and Letters of Credit issued by Banks on behalf of the Company Rs 940.00 lacs (Previous year 683.04 lacs) against which Rs. 119.64 lacs (previous year Rs. 92.06 lacs) have been deposited with the Banks as Margin Money.

d. Bills discounted with banks Rs 215.74 lacs (previous yearRs. 129.391acs) and with third party Rs 26.70 lacs. (Previous year Nil).

e. The Company has received Sales Tax demand of Rs. 10.04 lacs, Rs. 8.34 lacs, Rs. 10.29 lacs and Rs. 66.06 lacs respectively for the years 2003-2004,2004-2005, 2005-2006 and 2006-2007 against which the Company has preferred appeals before the higher authorities.

f. The Employees State Insurance Corporation (ESI) has raised a demand of Rs.2.76 lacs plus interest of Rs. 108.81 per day w.e.f. 1.1.2004 for the period 1999- 2000 to 2000-2001. The company has preferred an appeal against the demand at the Employees Insurance Court, West Bengal. The honorable court has stayed the demand till final disposal of Companys appeal.

3. The Term Loan and Working Capital Facilities are secured as follows:

a. Soft Term Loan of Rs. 480.00 lacs (Previous year Rs. 480.00 lacs) from Govt, of West Bengal is secured by first mortgage on all the immovable properties and a first charge by way of hypothecation of plant & machinery of the Company, both present and future, (except the fixed assets to be created out of the term loan of Rs. 1500.00 lacs from State Bank of India on which the bank would have exclusive first charge and the other consortium banks along with Govt, of West Bengal would have pari passu second charge) situated at Companys factory at Kharagpur in West Bengal, ranking pari passu with fund and non-fund balances of Rs. 1926.09 lacs which the Company has availed from State Bank of India and Axis Bank Ltd. A sum of Rs 80.00 lacs (Previous year Nil) is repayable within next 12 months towards loan amount.

b. Sales Tax Term Loan of Rs.314 lacs from Govt, of West Bengal is secured by way of residuary charge on all fixed assets of the Company, both present and future, situated at Companys factory at Kharagpur in West Bengal. A sum of Rs 39.25 lacs (Previous year Nil) is repayable within next 12 months towards loan amount.

c. Fund Based and Non-fund based working capital balances of Rs. 1926.09 lacs availed from State Bank of India and Axis Bank Ltd. are secured -

i) By first mortgage on all the immovable properties and a first charge by way of hypothecation of plant & machinery of the Company, both present and future, (except the fixed assets to be created out of the term loan of Rs. 1500.00 lacs from State Bank of India on which the bank would have exclusive first charge and the other consortium banks along with Govt, of West Bengal would have pari passu second charge) situated at Companys factory at Kharagpur in West Bengal, ranking pari passu with Govt, of West Bengal for Soft Term Loan of Rs.480.00 lacs (Previous year Rs.480.00 Lacs).

ii) By first charge by hypothecation of stocks, receivables and other current assets

iif)By personal guarantees of the Chairman & Managing Director and one other Director of the Company.

d Term Loan of Rs. 1500.00 lacs from State Bank of India which is funded by the Bank for the expansion project (2700 MT new extrusions press line) is secured as follows:-

i) Exclusive First Charge over Fixed assets created out of this Term Loan.

ii) Second charge on the current assets of the company

iii) By personal guarantee of the Chairman & Managing Director and one other director of the Company.

A sum of Rs 300.00 lacs (Previous year Nil) is repayable within next 12 months towards loan amount.

e. Vehicle Loans from 1C1CI Bank are secured by hypothecation of vehicles purchased out of the said loan. A sum of Rs 1.32 lacs (Previous year Rs.2.77 lacs) is repayable within next 12 months towards loan amount.

f. Vehicle Loans from HDFC Bank are secured by hypothecation of vehicles purchased out of the said loan. A sum of Rs 1.68 lacs (Previous year Rs.3.00 lacs) is repayable within next 12 months towards loan amount.

g. Vehicle Loans from State Bank of India are secured by hypothecation of vehicles purchased out of the said loan. A sum of Rs 4.80 lacs (Previous year Rs.3.49 lacs) is repayable within next 12 months towards loan amount.

h. Vehicle Loan from Axis Bank Ltd.is secured by hypothecation of vehicle purchased out of the said loan. A sum of Rs.1.88 lacs (Previous year Nil) is repayable within next 12 months towards loan amount.

4. The Company is entitled to certain incentives from the Govt, of West Bengal under the West Bengal Incentive Scheme 2004 (WBIS 2004) in connection with its expansion project to manufacture 7500 MT aluminum extrusions per annum. While the Company has been duly registered under WBIS 2004, and has also received the eligibility certificate for incentives, the process of fixation of the exact value of incentives is still in progress. Pending such fixation of the eligible amount of incentives, the Company has not made any provision for incentives in the Financial Year 2009-2010.

5. The lease period of a part comprising 2.42 acres (Previous year 3.08 acres) of the companys factory land out of the total land area of 7.3171 acres at Kharagpur has expired and is pending renewal from West Bengal Industrial Infrastructure Development Corporation Ltd. (WB1IDC). The lease renewal is in process.

6. A. Loans and Advances include:

a. Rs 35.00 lacs (previous year Rs.35.00 lacs) being security deposit for office premises made to a private limited company in which a relative of two of the directors is interested as a director.

b. Rs. Nil due from an officer of the Company. Maximum balance outstanding at any time during the year is Rs.0.25 lacs.

B. Sundry Debtors include:

Rs.9.67 lacs (previous year Rs. 15.68 lacs) due from a private company in which a Director of the Company is interested as a director.

7. Cash in Foreign Currency: Cash in hand includes foreign currency in hand equivalent to Nil (Previous year 0.46 lacs)

8. The Company has provided for / paid Minimum Alternate Tax (MAT) of Rs.6.17 lacs (net of MAT adjusted during current Financial Year), Rs.30.63 lacs, Rs.63.54 lacs, and Rs.37.29 lacs for the years 2005-2006,2006-2007,2007- 2008 and 2008-2009 respectively. As per applicable provisions of the Income Tax Act, the Company is eligible to adjust the MAT against its regular Income Tax liability arising in any of the corresponding subsequent 10 financial years.

9. Disclosure of Sundry Creditors under Current Liabilities is based on the information available with the Company regarding the status of the suppliers as defined under the Micro, Small and medium Enterprises Development Act, 2006:

31.032010 31.03.2009

Rs. in lacs Rs. in lacs

a) Principal Amount Outstanding 1.04 1.62

Interest amount payable thereon 0.10 Nil

The amount of interest paid by the buyer in terms of section 16 along with the amount of the payment made to the supplier beyond the appointed day during each accounting year 4.16 Nil

c) The amount of interest clue and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified 0.10 Mil

iii The amount of interest accrued and remaining unpaid at the end of each accounting year 0.10 Nil

e) The amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues as above are actually paid to the small enterprise for the purpose of disallowance as a deductible expenditure under section 2 Nil Nil

10. The commercial production from the expansion project to manufacture additional quantity of 7500 MT of aluminium extrusions commenced on 24th August 2009.

11. Emplyees Benefit:

Employee Benefits have been provided as per provisions of Revised Accounting Standard 15 (AS 15).

Defined Contribution Plan

(Rs. in lacs)

Contribution to Defined Contribution Plan, recognized as expenses for the year are as under:

For the year ended 31st March

2010 2009

Employers Contribution 24.39 18.77

to Provident Fund

Employers Contribution 21.28 18.55

to Pension Fund

The Company contributes 12% of salary of all eligible employees towards Provident Fund managed by the Central Government.

Defined Benefit Plan

The Century Extrusions Employees Gratuity Fund managed by a Trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

12. Segment Reporting:

The Company has two business segments i.e. manufacturing of Aluminium Extruded products and manufacturing of Transmission and Distribution Line Hardware. However, the Company does not fall under any of the criteria laid down under AS -17 and hence segment reporting is not applicable.

13. The Company has made donation of Rs. 1000.00 (Previous year Nil) to a party affiated to Indian National Congress.

 
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