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Notes to Accounts of Eastcoast Steel Ltd.

Mar 31, 2015

1) Terms and Rights attached to shares:

The Company has only one class of equity shares having face value of Rs, 10 per share. Each holder of equity shares is entitled to one vote per share. Equity shares holders are also entitled to dividend as and when proposed by the Board of Directors and approved by Share holders in Annual General Meeting. 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 which shall be in proportion to the number of shares held by the Shareholders.

Note: The Company has not received the required information from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence, disclosure relating to amounts unpaid as at the yearend together with interest paid / payable as required under the said Act have not been made.

* Note: 1) Indicates that the amount has been deposited in accordance with the order dated 18.11.2008 of the High Court of Chennai. The matter is still pending final disposal with Supreme Court. (Refer Note: 22) 2) The maturity period is of more than 12 months.

Note 2. CONTINGENT LIABILITIES:

a) The Electricity Department Pondicherry has filed a special leave petition before the Supreme Court of India, challenging the findings of the Madras High Court in respect of demand towards Electricity Charges of Rs, 17,78,51,077/- (includes interest of Rs, 12,10,85,645/-) since converted into a civil Application. Subsequently the matter has been referred to Supreme Court, Lok Adalat, where it is pending for hearing and disposal. The Company has been legally advised that the case can be successfully contested/defended and hence no provision is made.

b) The Company has not provided in the Accounts disputed claim of Rs, 1,34,00,000/- towards demurrage charges (in addition to interest on the said claim) relating to import of scrap for which the appeal before the Supreme Court is pending disposal. The Company has been advised that no liability will be fastened on the Company, based on the facts and circumstances of the case. However, an amount (along with Interest over the years) of Rs, 86,53,116/- is lying deposited with HDFC Bank Ltd. in accordance with the directions of the Supreme Court vide order dated 18th November, 2008 (See Note 11).

Note 3. The Company has not been carrying on any operations. Hence information pursuant to AS-17 on "Segment Reporting" is not applicable to the Company.

Note 4. The Company has suspended its operation. In view thereof and in consideration of prudence, the Company has not recognized Deferred Tax Asset in respect of set off of available losses and timing differences.

Note 5. No provision for taxation is necessary, in view of the accumulated losses incurred over the years.

Note 6. EMPLOYEE BENEFITS OBLIGATIONS:

As per Accounting Standard 15 "Employee Benefits", the disclosures as defined in the Accounting Standard are given below:

Defined Contribution Plans:

The Company offers its employees defined contribution plan in the form of provident fund, family pension fund and superannuation fund. Provident fund, family pension fund cover substantially for all regular employees. Contributions are paid during the year into separate funds. While both the employees and the Company pay predetermined contributions into the provident fund and pension fund, no fund has been created by the Company for gratuity. The Company's contribution to the provident fund and family pension fund has been charged to Statement of Profit and Loss.

Defined Benefit Plans:

The company offers its employees defined benefit plans in the form of gratuity (a lump sum amount). Benefits under the defined benefit plans are based on years of service and the employees last drawn salary immediately before exit. The gratuity scheme covers substantially all regular employees. However the Company has not created any fund in accordance with the scheme. Commitments are actuarially determined at year end. On adoption of the revised Accounting Standard (AS 15) on "Employee Benefits", actuarial valuation is done based on "Projected Unit Credit Method". Gains and loss of changed actuarial assumptions are charged to Statement of Profit & Loss. The obligation for leave Encashment benefits is recognized in the manner similar to Gratuity.

The Company has not created any fund into which contributions are made. Hence furnishing of information on Return on Plan Assets does not arise.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

vi) The expected contributions for Defined Benefit Plan for the next financial year will be in line with FY 14-15.

Note 28 Additional information as required under Section 186 (4) of the Companies Act, 2013 during the year:

(a) No investment made in Body Corporate.

(b) No Guarantee is given by the Company.

Note 7. The figures of the previous year have been reworked, regrouped, rearranged and reclassified, wherever necessary to conform to the current year presentation.


Mar 31, 2014

1) Terms and Rights attached to shares:

The Company has only one class of equity shares having face value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. Equity shares holders are also entitled to dividend as and when proposed by the Board of Directors and approved by Share holders in Annual General Meeting. 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 which shall be in proportion to the number of shares held by the Shareholders.

Note : The Company has not received the required information from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence, disclosure relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been made.

* Note 1) Indicates that the amount has been deposited in accordance with the order dated 18.11.2008 of the High Court of Chennai. The matter is still pending final disposal with Supreme Court. (Refer Note: 21)

2) The maturity period is of more than 12 months.

Note 2 CONTINGENT LIABILITIES:

a) The Electricity Dept. Pondicherry has filed a special leave petition before the Supreme Court of India, challenging the findings of the Madras High Court in respect of demand towards Electricity Charges of Rs. 1,77,851,077 (includes interest of Rs. 121,085,645/-) since converted into a civil Application. Subsequently the matter has been referred to Supreme Court, Lok Adalat, where it is pending for hearing and disposal. The Company has been legally advised that the case can be successfully contested/defended and hence no provision is made.

b) The Company has not provided in the Accounts disputed claim of Rs. 13,400,000/- towards demurrage charges (in addition to interest on the said claim) relating to import of scrap for which the appeal before the Supreme Court is pending disposal. The Company has been advised that no liability will be fastened on the Company, based on the facts and circumstances of the case. However, an amount (along with Interest over the years) of Rs. 8,653,116 is lying deposited with HDFC in accordance with the directions of the Supreme Court vide order dated 18th November, 2008 (See Note 11) .

Note 3 The Company has not been carrying on any operations. Hence information pursuant to AS-17 on "Segment Reporting" is not applicable to the Company.

Note 4 The Company has suspended its operation. In view thereof and in consideration of prudence, the Company has not recognised Deferred Tax Asset in respect of set off, of available losses and timing differences.

Note 5 No provision for taxation is necessary, in view of the accumulated losses incurred over the years.

Note 6 Employee Benefits Obligations:

As per Accounting Standard 15 "Employee Benefits", the disclosures as defined in the Accounting Standard are given below :

Defined Contribution Plans:

The Company offers its employees defined contribution plan in the form of provident fund, family pension fund and superannuation fund. Provident fund, family pension fund cover substantially for all regular employees. Contributions are paid during the year into separate funds. While both the employees and the Company pay predetermined contributions into the provident fund and pension fund, no fund has been created by the company for gratuity. The Company''s contribution to the provident fund and family pension fund has been charged to Statement of Profit and Loss.

Defined Benefit Plans:

The company offers its employees defined benefit plans in the form of gratuity (a lump sum amount). Benefits under the defined benefit plans are based on years of service and the employees last drawn salary immediately before exit. The gratuity scheme covers substantially all regular employees. However the company has not created any fund in accordance with the scheme. Commitments are actuarially determined at year end. On adoption of the revised Accounting Standard (AS 15) on "Employee Benefits" notified under the Companies (Accounting Standards) Rules, 2006, actuarial valuation is done based on "Projected Unit Credit Method". Gains and loss of changed actuarial assumptions are charged to Statement of Profit & Loss. The obligation for leave Encashment benefits is recognized in the manner similar to Gratuity.

vi) The expected contributions for Defined Benefit Plan for the next financial year will be in line with FY 13-14.

Note 7 The figures of the previous year have been reworked, regrouped, rearranged and reclassified, wherever necessary to conform to the current year presentation.


Mar 31, 2013

1 The figures of the previous year have been reworked, regrouped, rearranged and reclassified, wherever necessary to conform to the current year presentation.

2 The company has not been carrying on any operations. Hence information pursuant to AS17 on Segment Reporting is not applicable to the company.

3 The Company has suspended its Operation .In view thereof and in consideration of prudence, the company has not recognised Deferred Tax Asset in respect of Set off of available losses and timing differences.

4 The company does not owe amount to any Small Scale Industrial Undertaking and to micro, small and medium enterprises.

5 No provision for taxation is necessary, in view of the accumulated losses incurred over the years.

6 Employee Benefits Obligations: Defined Contribution Plans

The company offers its employees defined contribution plan in the form of provident fund, family pension fund and superannuation fund. Provident fund, family pension fund cover substantially for all regular employees. Contributions are paid during the year into separate funds. While both the employees and the company pay predetermined contributions into the provident fund and pension fund, no fund has been created by the company for gratuity, The company''s contribution to the provident fund and family pension fund has been charged to Statement of Profit and Loss.

Defined Benefit Plans:

The company offers its employees defined benefit plans in the form of gratuity (a lump sum amount). Benefits under the defined benefit plans are based on years of service and the employees last drawn salary immediately before exit. The gratuity scheme covers substantially all regular employees. However the company has not created any fund in accordance with the scheme. Commitments are actuarially determined at year end. On adoption of the revised Accounting Standard (AS 15) on "Employee Benefits" notified under the Companies (Accounting Standards) Rules, 2006, actuarial valuation is done based on "Projected Unit Credit Method". Gains and loss of changed actuarial assumptions are charged to Statement of Profit & Loss. The obligation for leave Encashment benefits is recognized in the manner similar to Gratuity.

7 Contingent Liabilities

a) The Electricity Dept. Pondicherry has filed a special leave petition before the Supreme Court of India, challenging the findings of the Madras High Court in respect of demand towards Electricity Charges of Rs.17,78,51,077 (includes interest of Rs.12,10,85,645/-) since converted into a civil Application. Subsequently the matter has been referred to Supreme Court, Lok Adalat, where it is pending for hearing and disposal. The company has been legally advised that the case can be successfully contested/defended and hence no provision is made.

b) The Company has not provided in the Accounts disputed claim of Rs.1,34,00,000/- towards demurrage charges (in addition to interest on the said claim) relating to import of scrap for which the appeal before the Supreme Court is pending disposal. The Company has been advised that no liability will be fastened on the company, based on the facts and circumstances of the case. However, an amount (along with Interest over the years) of Rs.70,64,858 is lying deposited with HDFC in accordance with the directions of the Supreme Court vide order dated 18th November, 2008 (See Note 12) .

8 The Company Petition Nos. 154 & 155 of 2012 for Amalgamation/ Arrangements between Mind Factory Entertainment Private Limited and itself have since been withdrawn and order passed in this effect by the Madras High Court on 21.02.2012


Mar 31, 2011

1. Contingent Liabilities:

(a) The Electricity Dept. Pondicherry had filed a special leave petition before the Supreme Court of India, challenging the findings of the Madras High Court in respect of demand towards Electricity Charges of Rs. 17,78,51,077/- (includes interest of Rs. 12,10,85,645/-), since converted into a Civil Application. Subsequently, the matter has been referred to Supreme Court Lok Adalat, where it is pending for hearing and disposal. The company has been legally advised that the case can be successfully contested/ defended and hence no provision is made.

(b) The Company has not provided in the Accounts disputed claim of Rs. 1,34,00,000/- towards demurrage charges (in addition to interest on the said claim) relating to import of scrap for which the appeal before the Supreme Court is pending disposal. The Company has been advised that no liability will be fastened on the company, based on the facts and circumstances of the case. However, an amount (along with Interest over the years) of Rs. 70,64,858/- is lying deposited with HDFC LTD in accordance with the directions of the Supreme Court vide order dated 26th September, 2008 (See Schedule 6)

2. No provision for taxation is necessary, in view of the accumulated losses incurred over the years.

3. The company does not owe amount to any Small Scale Industrial Undertaking and to micro, small and medium enterprises.

4. The company has not been carrying on any operations. Hence information pursuant to AS 17 on Segment Reporting is not applicable to the company.

5. The Company has suspended its Operation. In view thereof and in consideration of prudence, the company has not recognised Deferred Tax Asset in respect of Set off of available tax losses & timing differences.

6. In the opinion of the Board, Current Assets, Loans & Advances have value on realisation in the ordinary course of business approximately the same at which these are stated in the Balance Sheet and provision for all known liabilities have been made and the same are not in excess of the amount reasonably necessary.

7. Employee benefits Obligations:

Defined contribution plans:

The company offers its employees defined contribution plan in the form of provident fund, family pension fund and superannuation fund substantially for all regular employees and makes contribution to the Regional Provident Fund Commissioner and ESIC to Regional Director of ESIC. While both the employees and the company pay predetermined contributions into the provident fund and pension fund, the company's contribution to the provident fund and family pension fund has been charged to the Profit & Loss Account.

Defined Benefit Plans:

The company offers its employees defined benefit plans in the form of gratuity (a lump sum amount). Benefits under the defined benefit plans are based on years of service and the employees last drawn salary immediately before exit. The gratuity scheme covers substantially all regular employees. However the company has not created any fund in accordance with the scheme. Commitments are actuarially determined at year end. On adoption of the revised Accounting Standard (AS 15) on "Employee Benefits" notified under the Companies (Accounting Standards) Rules, 2006, actuarial valuation is done based on "Projected Unit Credit Method". Gains and loss of changed actuarial assumptions are charged to Profit & Loss Account. The obligation for leave encashment benefits is recognized in the manner similar to Gratuity.

8. Related Party Disclosures:

I. Relationship:- Associate Companies:-

i) Western Ministil Limited

ii) Western Rolling Mills Pvt. Ltd

II. Key managerial Personnel:

1. Mr. Prithviraj S. Parikh- Executive Director (w.e.f. 30-01-2009)

(No remuneration has been paid to Mr. Prithviraj S. Parikh as an Executive Director during the year, except sitting fees paid for attending Board and Committee Meetings)

9. Previous Year's figures have been regrouped, rearranged and reclassified wherever found necessary.


Mar 31, 2010

1. Contingent Liabilities:

Year ended Year ended

Particulars 31-03-2010 31-03-2009

(Rs. in Lacs) (Rs. in Lacs)

Contingent Liabilities Nil Nil

a) The Electricity Dept. Pondicherry had filed a special leave petition before the Supreme Court of India, challenging the findings of the Madras High Court in respect of demand towards Electricity Charges of Rs. 17.79 Crores (includes interest of Rs. 12.11 Crores), since converted into a Civil Application. Subsequently, the matter has been referred to Supreme Court Lok Adalat, where it is pending for hearing and disposal. The company has been legally advised that the case can be successfully contested/ defended and hence no provision is made.

b) The Company has not provided in the Accounts disputed claim of Rs.134/- Lacs (in addition to interest on the said claim) relating to import of scrap for which the appeal before the Supreme Court is pending disposal. The Company has been advised that no liability will be fastened on the company, based on the facts and circumstances of the case. However, an amount (along with Interest over the years) of Rs.70.18 Lacs is lying deposited with HDFC in accordance with the order of the High Court of Madras dated 18-11-2008. (See Schedule 6)

2. No provision for taxation is necessary in view of the accumulated losses incurred over the years.

3. The company does not owe amount to any Small Scale Industrial Undertaking and to micro, small and medium enterprises.

4. The company has not been carrying on any operations. Hence information pursuant to AS 17 on Segment Reporting is not applicable to the company.

5. The Company has appointed Mr. P. K. R. K. Menon, director of the company, as a Company Secretary w.e.f. 01.10.2003, being qualified for such assignment. This is in compliance of the statutory requirements and he has been paid remuneration for the services rendered as the Company Secretary.

6. The Company has suspended its operation and its activities have come to a standstill. In view thereof and in consideration of prudence, the company has not recognised Deferred Tax Asset in respect of Set off of available losses, & timing differences.

7. In the opinion of the Board, Current Assets, Loans & Advances have value on realisation in the ordinary course of business approximately the same at which these are stated in the Balance Sheet and provision for all known liabilities have been made and the same are not in excess of the amount reasonably necessary.

8. Employee benefits Obligations:

(i) Defined contribution plans:

The company offers its employees defined contribution plan in the form of provident fund, family pension fund and superannuation fund. Provident fund, family pension fund covers substantially for all regular employees. Contributions are paid during the year into separate funds. While both the employees and the company pay predetermined contributions into the provident fund and pension fund, no fund has been created by the company for gratuity. The companys contribution to the provident fund and family pension fund has been charged to the Profit & Loss account.

(ii) Defined Benefit Plans:

The company offers its employees defined benefit plans in the form of gratuity (a lump sum amount). Benefits under the defined benefit plans are based on years of service and the employees last drawn salary immediately before exit. The gratuity scheme covers substantially all regular employees. However, the company has not created any fund in accordance with the scheme. Commitments are actuarially determined at year end. On adoption of the revised Accounting Standard (AS 15) on "Employee Benefits" notified under the Companies (Accounting Standards) Rules, 2006, actuarial valuation is done based on "Projected Unit Credit Method". Gains and loss of changed actuarial assumptions are charged to Profit & Loss Account. The obligation for leave Encashment benefits is recognized in the manner similar to Gratuity.

9. Related Party Disclosures:

I. Relationship:- Associate Companies:- i) Western Ministil Limited

ii) Western Rolling Mills Pvt. Ltd

II. Key managerial Personnel:

1. Mr. Prithviraj S. Parikh- Executive Director (w.e.f. 30-01-2009)

(No remuneration has been paid to Mr. Prithviraj S. Parikh as an Executive Director during the year, except sitting fees paid for attending Board and Committee Meetings)

10. Previous Years figures have been regrouped, rearranged and reclassified wherever necessary.

 
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