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Notes to Accounts of Foundry Fuel Products Ltd.

Mar 31, 2015

1. Contingent Liabilities: There is no contingent liability.

2. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. Nil (previous year Rs.15,564,000, net of advances paid). There is no other commitment as at year end.

3. Related Party Disclosure

a. Entities having control

Castron Mining Limited - Holding company (w.e.f. 6th October 2012)

Chinmaya Steel and Power Limited – Intermediary holding company (w.e.f. 26th March 2014)

Chinmaya Holding Private Limited- Ultimate holding company (w.e.f. 26th March 2014)

B L A Industries Private Limited - Ceased to be ultimate holding company (w.e.f. 26th March 2014)

b. Companies in which Key Management Personnel (KMP) has significant influence / control: Anup Malleables Limited – up to 10th January 2014

Mechanical & Electrical Engineering Co. Private Limited B L A International Private Limited B L A Minerals Private Limited Dhanbad Engineering Private Limited

c. Key Management Personnel (KMP)

Shri Devendra Kumar Agarwalla (Ceased to be Managing Director w.e.f. 13th August 2013) Shri Kamal Ghosh (Whole Time Director w.e.f. 29th May 2013)

d. Relatives of KMP

Mrs. Madhu Agarwalla (wife of Managing Director)

Shri Adarsh Agarwalla (Director – son of Managing Director)

Mrs. Dipanwita Ghosh (wife of Whole Time Director)

4. There are no employees (except Managing director who has waived his right to receive managerial remuneration for the year) in the Company as on 31st March 2015. Therefore disclosures are not applicable under Accounting Standard 15 – 'Employee benefits' (revised).

5. Segment reporting:

There are no reportable segments under Accounting Standard 17 "Segment Reporting" as the primary operations comprise of only one segment i.e. manufacturing of coke. Further there are no secondary / geographical segments as the Company does its business only in India.

Deferred tax assets created only to the extent of deferred tax liability.

6. The Company's business which was dependent on the commencement of mining operation by its holding company. In view of the Hon'ble Supreme Court's order cancelling coal block allocations of various companies including the holding company, the Company is planning to initiate the process of searching another project. Further, in the opinion of the management, fixed assets are sufficiently and substantially depreciated / amortized and hence no adjustment would be required to its carrying value. For the purpose of payment to the trade liabilities, Company will be able get sufficient funds from holding company. Considering the same, accounts are prepared on going concern basis.

7. Depreciation has been provided based on the Schedule II of the Companies Act 2013 which has been effective from 1st April 2014. Accordingly carrying value of fixed assets is depreciated over the remaining useful life of the assets. Consequently, depreciation & loss for the year ended is higher by Rs. 1,513,456.

8. Pending finalisation of another project as referred to in note 25 above, the Company is yet to appoint Chief financial officer and Company secretary (key managerial personnel) as required by Section 203 of the Companies Act, 2013. Also the Company is in process of appointing woman director in accordance with Section 149 of the Companies Act, 2013.

9. The additional information as required by Para 5 of General Instructions for preparation of Statement of Profit and Loss (other than already disclosed above) are either Nil or Not Applicable.

10. Previous year figures are regrouped or rearranged wherever considered necessary.


Mar 31, 2014

1.1 4,053,585 (P.Y. 4,053,585) Equity Shares of Rs.10/- each, fully paid-up are held by Castron Mining Limited, the holding company (w.e.f 6th October 2012).

1.2 In previous year, in accordance with the Board for Industrial and Financial Reconstruction (BIFR) Order:(a) The Company had reduced its Equity share capital by 50% i.e. by Rs. 30,387,500 and 3,038,750 shares, (b) The unsecured loan from Director and Group Company aggregating to Rs. 49,800,000 was converted into Equity share capital by allotment of 4,980,000 Equity shares of Rs.l0/-eachatpar.

1.3 In previous year Company had forfeited 1,200 equity shares face value Rs.10/- each against which allotment money @ Rs. 5 per share was not paid by the shareholders.

2. Contingent Liabilities:

There is no contingent liability.

3. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 15,564,000/- (net of advances paid) (P.Y. Rs. 15,564,000/-). There is no other commitment as at year end.

4. Related Party Disclosure

a. Entities having control

Castron Mining Limited - Holding company (w.e.f. 6th October 2012) B L A Industries Private Limited - Ceased to be ultimate holding company (w.e.f. 26th March 2014) Chinmaya Steel and Power Limited - Intermediary holding company (w.e.f. 26th March 2014)

Chinmaya Holding Private Limited- Ultimate holding company (w.e.f. 26th March 2014)

b. Companies in which Key Management Personnel (KMP) has significant influence I control:

Anup Malleables Limited - upto 10th January 2014 Mechanical & Electrical Engineering Co. Private Limited B L A International Private Limited B L A Minerals Private Limited Dhanbad Engineering Private Limited

c. Key Management Personnel (KMP)

Shri Devendra Kumar Agarwalla (Ceased to be Managing Director w.e.f. 13th August 2013)

Shri Kamal Ghosh (Whole Time Director w.e.f. 29th May 2013)

d. Relatives of KMP

Mrs. Madhu Agarwalla (wife of Managing Director)

Shri Adarsh Agarwalla (Director - son of Managing Director)

Mrs. Dipanwita Ghosh (wife of Whole Time Director)

Note

1. Figures in bracket pertain to previous year.

2. Amount including advance received in previous year of Rs. 485,000.

Notes:

(1) There are no employees in the Company as on 31st March 2014.

(2) Managing director has waived his right to receive managerial remuneration for the year.

(3) Since there is no liability or fund, other disclosures are not applicable.

5. The Company is in the process of appointing a company secretary as per the requirement of section 383A of the Companies Act, 1956.

6. Segment reporting:

There are no reportable segments under Accounting Standard 17 "Segment Reporting" as the primary operations comprise of only one segment i.e. manufacturing of coke. Further there are no secondary / geographical segments as the Company does its business only in India.

7. In the previous year, the unsecured loan taken from director and Group Company aggregating to Rs.49,800,000 was converted into equity share capital by allotment of 4,980,000 equity shares of Rs.10/- each at par which was not considered as cash transaction for cash flow statement. Also there was no cash flow on account of capital reduction & shares forfeited.

8. Company''s business is dependent on the commencement of mining operation by its holding company, Castron Mining Limited, which currently is uncertain. Company will take up another project in case the holding company is not able to start its operation. Further the fixed assets are sufficiently and substantially depreciated / amortized and hence no adjustment would be required to its carrying value. Company''s current assets are sufficient to repay its current liabilities. Considering the same, accounts are prepared on going concern basis.

9. Company has been discharged from the purview of SICA/BIFR as per its order dated 2nd July 2013. Accordingly Company now ceases to be a sick industrial company, within the meaning of section 3(l)(o) of the SICA as its net-worth has turned positive.

10. The additional information as required by Para 5 of General Instructions for preparation of Statement of Profit and Loss (other than already disclosed above) are either Nil or Not Applicable.

11. Previous year figures are regrouped or rearranged wherever considered necessary.


Mar 31, 2013

1. Contingent Liabilities:

There is no contingent liability.

2. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 15,564,000/- (net of advances paid) (P. Y. Rs. 15,589,000/-). There is no other commitment as at year end.

3. Related Party Disclosure

a. Entities having control

Castron Mining Limited - Holding Company (w.e.f. 6 October 2012)

B L A Industries Pvt. Ltd. - Holding Company (From 10th August 2012 to 5th October 2012)

- Ultimate holding Company (w.e.f. 6 October 2012)

b. Companies in which KMPhas significant influence/control: Anup Malleables Limited

Mechanical & Electrical Engineering Co. (P) Limited B LA International (P) Ltd.

c. Key Management Personnel (KMP)

Shri Devendra Kumar Agarwalla (Managing Director)

d. Relatives of KMP

Mrs Madhu Agarwalla (wife of Managing Director)

Shri Adarsh Agarwalla (Director - son of Managing Director)

4. The Company is in the process of appointing a company secretary as per the requirement of section 383A of the Companies Act, 1956.

5. During the year, the unsecured loan taken from director and Group Company aggregating to Rs. 49,800,000 is converted into equity share capital by allotment of 4,980,000 equity shares of Rs. 10/- each at par which is not considered as cash transaction for cash flow statement. Also there is no cash flow on account of capital reduction & shares forfeited.

6. Segment reporting:

There are no reportable segments under Accounting Standard 17 "Segment Reporting" as the primary operations comprise of only one segment i.e. manufacturing of coke. Further there are no secondary / geographical segments as the Company does its business only in India.

7. The additional information as required by Para 5 of General Instructions for preparation of Statement of Profit and Loss (other than already disclosed above) are either Nil or Not Appli- cable.

8. Previous year figures are regrouped or rearranged wherever considered necessary.


Mar 31, 2012

1. SEGMENT REPORT

The company has given its plant on hire, so segment wise reporting on required by Accounting Standard - 17 issued by the Institute of Chartered Accountants of India has not been given

2. CONTINGENT LIABUITIES & COMMMITMENT

Claims against the Company not acknowledged as debts Rs.34,140,695/- (Previous year 34,140,695/-) towards interest payable to B.L.A. Industries Pvt. Ltd. In the opinion of Management this amount is not payable in terms of order passed by AAIFR.

Capital Contract remaining to be executed of Rs.1,61,00,000/- against which advance of Rs.5,11,000/- (previous year Nil ) has been given.

3. As there is no reasonable certainty that sufficient future taxable income will be available, against which deferred tax assets can be realized, deferred tax assets have been recognized only to the extent of liability.

4. Preliminary expenses

Preliminary expenses are written off over a period of five years

5.Expenses Rs.770/- as Bonus & Rs.150/- as Listing Fee related to earlier year has been paid during the year.


Mar 31, 2010

(i) Previous years figures have been re-grouped / re-arranged wherever necessary and fig- ures for previous year and current year have been rounded off to the nearest rupee.

(ii) Sundry Creditors

Disclosure under Micro and Small Enterprises Development Act, 2006.

The company has not received the required information from Creditors regarding their status under the Micro, Small and Medium Enterprises Development Act. 2006. Hence 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 made.

(iii) In the opinion of the Board of Directors, all current assets, loans & advances are expected to realize in the ordinary course of business at least an amount equal to the amount at which they are stated in the Balance Sheet.

(iv) Contingent Liabilities :

a) Contingent Liabilities not provided in respect of Sales tax demand under appeal Rs. 7,230,746/- (Previous year Rs. 7,194,312/-).

b) Claims against the Company not acknowledged as debts Rs. 34,140,695/- (Previous year 55,854,882/-) towards interest payable to B.L.A. Industries Ltd. In the opinion of Management this amount is not payable in terms of order passed by AAIFR.

(v) Miscellaneous Expenses do not include any item exceeding Rs. 5,000/- or 1 % of turnover whichever is higher.

(vii) The company has given its Hard Coke Plant on managing contract and income thereof has been shown as Plant Rent.

(viii) Employee Benefits:

Effective from financial year 2007-08, the company adopted Accounting Standard (AS) 15 (Revised 2005) dealing with Employee Benefits, issued by the Institute of Chartered Ac- countants of India. The Company has defined benefit plans for gratuity to eligible employ- ees. The company does not have policy of carry forward of the compensated absence to the employees. The details of these defined benefit plans recognized in the financial state- ment are as under :

Defined Benefit Plan

Defined Contribution Plan :

Employees Provident Fund & other contribution plan are not applicable to the company.

(ix) As there is no reasonable certainty that sufficient future taxable income will be available, against which deferred tax assets can be realized, deferred tax assets have been recog- nized only to the extent of liability.

(x) Related party transactions

Information in accordance with the requirements of accounting standard -18 on Related party disclosures issued by the institute of chartered Accountants of India.

A) Name of the Related parties with whom transaction have take place during the year :

1) Key Management personnel of the Company :

a) Mr. Devendra Kumar Agarwalla

b) Mr. Nandan Kumar Agarwalla

c) Mr. Brij Mohan Todi

d) Mr. Pramod Kumar Agarwalla

e) Mr. Santosh Kumar Kedia

B) Enterprises over which key Management Personnel and Relatives of such Personnel are able to exercise significant Influence.

a) M/sAnupMalleablesLtd.

b) M/s BLA International (P)Ltd.

c) M/s BLA Minerals (P) Ltd.

d) M/s Mechanical & Electrical Engg. Co (P) Ltd.

e) M/s Waste Products Reclaimer (P) Ltd.

(xi) Segment reporting

The company has given its plant on hire, so segment wise reporting as required by Ac- counting Standard - 17 issued by the Institute of Chartered Accountants of India has not been given.

(xii) Preliminary expenses

Preliminary expenses are written off over a period of five years

(xiii) Expenses Rs 7500/- related to earlier year for Professional Tax has been paid during the year.

(xiv) Unsecured loan Rs. 2,17,14,187/- payable to B.L.A Industries Ltd. was written back by the company unilaterally in the year 2004-05 as in the opinion of management it was not payable. But during the year M/s. B.L.A. Industries Ltd. have claimed the amount and it is payable by the company. Hence the amount has been credited to the account of B.L.A. Industries Ltd. and debited to "Prior period adjustment a/c."

(xvi) Additional information pursuant to the provisions of paragraphs 3,4 (C) and 4 (D) of Part II of the schedule VI of the Companies Act, 1956.

(i)Expenditure in foreign currency Rs Nil (Previous Year Rs. Nil)

(ii)Earning in foreign currency Rs. Nil (Previous Year Rs. Nil)

(iii)Managerial Remuneration. Rs. 480,000/- (Previous Year Rs. 480,000/-)

 
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