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Notes to Accounts of Gallantt Metal Ltd.

Mar 31, 2015

1 TRADE PAYABLES

(i) Trade Payable includes (i) Rs. Nil (P.Y. Nil) due to micro and small enterprises registered under the Micro, Small and Medium Enterprises Development Act 2006 (MSME) and (ii) Rs. 69.66 lacs (P.Y Rs. 845.45 lacs ) due to other parties.

(ii) No interest is paid /payable during the year to any enterprise registered under the MSME.

(iii) The above information has been determined to the extent such parties could be indentified on the basis of the information available with the company regarding status of suppliers under the MSME.

2 Previous year figures have been regrouped and rearranged wherever considered necessary.

3 During the year the company has revised the estimated useful life of its fixed assets to align with the useful life as provided in schedule II of the Company's Act, 2013. The retained earnings after completition of useful life of the fixed assets are adjusted with the depreciation and amortisation in terms of the provision of the Act

4 Balance of some of the sundry debtors, sundry creditors, loans & advances are subject to confirmation from the respective parties.

5 Based on the profitability projection, the Company is certain that there would be sufficient taxable income in the future to claim the "MAT credit Entitlement".


Mar 31, 2014

(i) Current portion of the loan have been grouped under "Current maturity of long term debt" (refer note - 7 ).

(ii) Terms of repayment for secured borrowings

(a) Term Loan amounting to Rs. 2152.38 Lacs (P.Y. Rs. 3161.00 Lacs) is repayable in 14 quarterly installments commencing from June 2012. Last installment is due in September 2015. Rate of interest 13.25% P.A as at the year end (P.Y. 12.95% P.A). (iii) Nature of Security for secured borrowing

(a) The above term loans are secured by first pari pasu charge on all the fixed assets (present and future) and second pari pasu charge on current assets of the plant situated in Kutch, Gujarat.

(b) The above term loans are secured by equitable mortgage of house property of Sri S.K. Agrawal, relative of director and collateral security by pledge of 5,10,500 (P.Y. 5,10,500) equity share of the company held by promoters.

(c) The above term loans has been guaranteed by the corporate guarantee of M/s. Gallantt Udyog Ltd. to the extent of shares pledged aggregating 1,46,50,000 equity shares of Rs. 10/- each and corporate guarantee of M/s Hipoline Commerce Pvt. Ltd.

(d) The above term loans has been guaranteed by the personal guarantee of Sri C.P. Agrawal, Sri Dinesh R Agarwal, Sri Nitin Kandoi Director of the company and Mr. S.K.Agrawal relative of the director.

(e) Deffered sales tax loan is interest free and payable in 6 equal yearly installment of Rs. 4.89 Lacs payable from 2011-12.

(i) The above working capital loan from bank is secured by first charge on all the current assets and second charge on fixed assets of the plant situated in Kutch, Gujarat bearing interest @ 11.70% P.A (P.Y. 10.20% ) on Cash Credit Account and @ 10% P.A. (P.Y. Nil ) on e-VFS Account at the end of the year. (ii) The above working capital loan from bank is secured by equitable mortgage of house property of Sri S.K.Agrawal, relative of director and collateral security by pledge of 5,10,500 (P.Y. 5,10,500) equity share of the company held by promoters.

(iii) The above working capital loans is guaranteed by the corporate guarantee of M/s. Gallantt Udyog Ltd. to the extent of shares pledged aggregating 1,46,50,000 equity shares of Rs. 10/- each and corporate guarantee of M/s Hipoline Commerce Pvt. Ltd.

(iv) The above working capital loan is guaranteed by the personal guarantee of Sri C.P. Agrawal, Sri Dinesh R Agarwal, Sri Nitin Kandoi director of the company and Mr. S.K.Agrawal relative of the director.

2 TRADE PAYABLES

(i) Trade Payable includes (i) Rs. Nil (P.Y. Nil) due to micro and small enterprises registered under the Micro, Small and Medium

Enterprises Development Act 2006(MSME) and (ii) Rs. 845.45 Lacs (P.Y Rs. 7405.89 Lacs) due to other parties. (ii) No interest is paid/payable during the year to any enterprise registered under the MSME.

(iii) The above information has been determined to the extent such parties could be indentified on the basis of the information available with the company regarding status of suppliers under the MSME.

3 RELATED PARTY DISCLOSURES

(i) Associate Company Gallantt Ispat Ltd Ganesh Laxmi Processors Pvt. Ltd.

(ii) Key Managerial Personnel Mr. Chandra Prakash Agrawal Mr. Dinesh R. Agarwal Mr. Prashant Jalan

4 SEGMENT REPORTING

(1) Primary Segment (By Business Segment) :

The Company is engaged in the business of production of Iron, Steel & Power. The Company has two reportable business segments i.e. Steel and Power which have been identified in line with the Accounting Standard-17 on "Segment Reporting". Information about Primary Segment is as follows :

5 Previous year figures have been regrouped and rearranged wherever considered necessary.

6 The Company has assessed its fixed assets for impairment at the end of the year and concluded that there has been no significant impaired fixed assets that needs to be recognised in the books of accounts.

7 Balance of some of the sundry debtors, sundry creditors, loans & advances are subject to confirmation from the respective parties.

8 Based on the profitability projection, the Company is certain that there would be sufficient taxable income in the future to claim the "MAT credit Entitlement".


Mar 31, 2013

1 SEGMENT REPORTING

(1) Primary Segment (By Business Segment):

The Company is engaged in the business of production of Iron'' Steel & Power. The Company has two reportable business segments i.e. Steel and Power which have been identified in line with the Accounting Standard-17 on "Segment Reporting". Information about Primary Segment is as follows :

2 Previous year figures have been regrouped and rearranged wherever considered necessary.

3 The Company has assessed its fixed assets for impairment at the end of the year and concluded that there has been no significant impaired fixed assets that needs to be recognised in the books of accounts.

4 Balance of some of the sundry debtors'' sundry creditors'' loans & advances are subject to confirmation from the respective parties.

5 Based on the profitability projection'' the Company is certain that there would be sufficient taxable income in the future to claim the "MAT credit Entitlement".


Mar 31, 2012

(a) Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders except in the case of interim dividend. In the event of liquidation, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amount in proportion of their shareholding.

(i) Term loan includes corporate loan of Rs. 13.10 crores.

(ii) Current portion of the loan have been grouped under "Current maturity of long term debt"(refer note - 7).

(iii) Terms of repayment for secured borrowings

(a) Term loan amounting to Rs. 572.50 lacs (P.Y. Rs. 2862.50 lacs) is repayable in 20 quarterly installments commencing from July 2007. Last installment is due in April 2012. Rate of interest 13.25 ACU- P.A as at the year end (P.Y. 11.75 ACU- P.A).

(b) Term loan amounting to Rs. 282.50 lacs (P.Y. Rs. 742.50 lacs) is repayable in 20 quarterly installments commencing from January 2008. Last installment due is in October 2012. Rate of interest 13.25 ACU- P.A as at the year end (P.Y. 11.75 ACU- P.A).

(c) Term loan amounting to Rs. 3780.00 lacs (P.Y. Rs. 3780.00 lacs) is repayable in 14 quarterly installments commencing from June 2012. Last installment is due in September 2015. Rate of interest 13.25 ACU- P.A as at the year end (P.Y. 11.75 ACU- P.A).

(d) Corporate loan amounting to Rs. 1310.00 lacs (P.Y. Rs. 1310.00 lacs) is repayable in 8 quarterly installments commencing from June 2012. Last installment is due in March 2014. Rate of interest 13.25 ACU- P.A as at the year end (P.Y. 11.75 ACU- P.A).

(iv) Nature of Security for secured borrowing

(a) All the above term loans are secured by first pari pasu charge on all the fixed assets (present and future) and second paripasu charge on current assets of the plant situated in Kutch, Gujarat.

(b) All the above term loans are secured by equitable mortgage of house property of Sri S.K.Agarwal, relative of director and collateral security by pledge of equity share of the Company held by promoters.

(c ) Further the above term loans has been guaranteed by the corporated guarantee of M/s. Gallantt Udyog Ltd. to the extent of shares pledged aggregating 146.50 lacs equity shares of Rs. 10/- each and M/s Hipoline Commerce Pvt. Ltd.

(d) Further the above term loans has been guaranteed by the personal guarantee of Sri C.P. Agarwal, Sri Dinesh R Agarwal, Sri Nitin Kandoi director of the company and Mr. S.K.Agarwal relative of the director.

(v) Vehicle loan is secured by hypothecation of respective vehicles.

(vi) Deffered sales tax loan is interest free and payable in 6 equal yearly installment of Rs. 4.89 lacs payable from 2011-12.

(i) Working capital loan includes working capital term loan of Rs. 2018.68 lacs bearing interest AEA-11 ACU- P.A (P.Y. Nil) and repayable in May 2012.

(ii) Working capital loan from bank is secured by first charge on all the current assets and second charge on fixed assets of the plant situated in Kutch, Gujarat bearing interest AEA- 13.75 ACU- P.A (P.Y. 12 ACU-) at the end of the year.

(i) Trade Payable includes (i) Rs. Nil (P.Y. Nil) due to micro and small enterprises registered under the Micro, Small and Medium Enterprises Development Act 2006 (MSME) and (ii) Rs. 3260.41 lacs (P.Y. Rs. 2630.01 lacs ) due to other parties.

(ii) No interest is paid/payable during the year to any enterprise registered under the MSME.

(iii) The above information has been determined to the extent such parties could be indentified on the basis of the information available with the company regarding status of suppliers under the MSME.

(i) Associate Company

Gallantt Udyog Ltd

Gallantt Ispat Ltd

Ganesh Laxmi Processors Pvt. Ltd.

Hipoline Commerce Pvt. Ltd.

(ii) Key Managerial Personnel Mr. Chandra Prakash Agrawal Mr. Dinesh R. Agarwal

1 SEGMENT REPORTING (1) Primary Segment (By Business Segment):

The Company is engaged in the business of production of Iron, Steel & Power. The Company has two reportable business segments i.e. Steel and Power which have been identified in line with the Accounting Standard-17 on "Segment Reporting". Information about Primary Segment is as follows :

(2) Secondary Segment (By Geographical Segment):

The secondary segment is based on geographical demarcation i.e. India & Rest of the World. There is no reportable segment under above category.

2011-12 2010-11

2 CONTINGENT LIABILITIES AND COMMITMENTS (To the extent not provided for)

(i) Curtailing the assured benefit of exemption granted to New Industrial unit in Kutch, Gujarat. The Company is entitled to exemption for 100 ACU- of the duty paid in Cash after utilization of CENVAT Credit for 5 years from the date of Commercial Production. Hon'ble High Court of Gujarat has granted the verdict in favor of Company, Department preferred appeal in Supreme Court. 1040.44 1040.44

(ii) Custom/Excise duty on Capital Goods imported/purchased under EPCG Scheme, against which export obligation is to be full filled. 198.50 470.97

(iii) Disputed liability in respect of sales tax (out of which Rs. 42.00 lacs has already been paid. 80.04 80.04

(iv) Wealth tax demand from A.Y 2006-07 to 07-08. 3.04 -

(v) Input VAT Credit on coal purchases taken by the company and not Agreed to by the Department. 40.33 40.33

(vi) Claim against the company not acknowledged debt in respect of disputed liability of freight with railway. Case is pending in Hon'ble High court, Gujarat. 161.45 -

3 The financial statements for the year ended 31st March, 2011 had been prepared as per the then applicable, pre- revised Schedule VI to the companies Act, 1956. Consequent to the notification under the Companies Act, 1956 the financial statements for the year ended 31st March 2012 are prepared under revised schedule VI. Accordingly the previous year figures have also been reclassified to conform to this year classification.

4 The Company has assessed its fixed assets for impairment at the end of the year and concluded that there has been no significant impaired fixed assets that needs to be recognised in the books of accounts.

5 The remission scheme on sales tax charged on sales for a period of ten years subject to sales tax collected and refund of VAT on material purchased up to Rs. 91.09 Crore has been exhausted during the financial year ending on March, 2011.

6 The Scheme of remission of excise duty provided by the department of Central Excise for five years from the date of production by way of refund of excise duty paid has been completed during the financial year ending on March, 2011.

7 Balance of some of the sundry debtors, sundry creditors, loans & advances are subject to confirmation from the respective parties.

8 Based on the profitability projection, the Company is certain that there would be sufficient taxable income in the future to claim the "MAT credit Entitlement".


Mar 31, 2011

1. Contingent Liabilities

Contingent Liabilities not provided for in respect of

Description 2010-2011 2009-2010

Guarantees given by the bank on behalf of the Company 381.92 236.33 (margin money kept by way of fixed deposit of Rs. 244.67 lacs (Previous year - Rs. 245.12 lacs)

Curtailing the assured benefit of exemption granted to New Industrial unit in Kutch, 1,040.44 1,026.34 Gujarat. The Company is entitled to exemption for 100% of the duty paid in Cash after utilisation of CENVAT Credit for 5 years from the date of Commercial Production. Hon'able High Court of Gujarat has granted the verdict in favor of Company, Department preferred appeal in Supreme Court

Custom / Excise duty on Capital Goods imported / purchased under 470.97 470.97 EPCG Scheme, against which export obligation is to be fulfilled

Dispute liability in respect of sales tax 80.04 - (out of which Rs. 42.00 lacs has already been paid)

Input VAT Credit on coal puchases taken by the 40.33 - company and not agreed to by the Department

2.1. (a) Primary Securities: i) Term Loans:

(a) First Pari pasu charge over all the borrower's fixed assets (Present & Future).

(b) Second Pari pasu charge over all the borrowers' current assets including cash & Bank balances, Stock etc.

ii) Working Capital Facilities:

First charge on all the current assets of the company (Present & Future) and the second charge on the fixedassets of the company.

(iii) Vehicle loan received from bank is secured against hypothecation of respective vehicles.

(b) Collateral Securities:

(i) Equitable mortgage of house property of Sri S.K Agrawal, relative of director. (ii) Collateral Security by pledge of equity shares of the company held by promoters.

(c) Corpoarte& Personal Guarantee:

(i) M/s Gallantt Udyog Ltd. to the extent of shares pledged aggregating 1,46,50,000 equity shares having face value of Rs. 10/-each.

(ii) M/s Hipoline Commerce Pvt. Ltd. (on account of merger of erstwhile M/s Ganesh Laxmi Steel Pvt. Ltd.).

(iii) Personal Guarantee of Sri C. P. Agarwal, Sri Dinesh R. Agarwal, Sri Nitin M. Kandoi and Sri S. K. Agarwal to the extent of mortgaged created.

3. Impairment of Assets

Pursuant to Accounting Standard (AS 28) Impairment of Assets issued by Institute of Chartered Accountant of India, the Company assessed its fixed assets for impairment as at March 31, 2011 and concluded that there has been no significant impaired fixed asset that needs to be recognised in the books of accounts.

4. Excise duty and cess on stock represents differential excise duty and cess on opening and closing stock of finished goods.

5. Disclosure as per Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 :

The Company has not received any intimation from "suppliers" regarding status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amount unpaid as at the year end together with the interest paid/payable as required under the said act have not been furnished.

6. Sundry Creditors include Rs. Nil (Previous Year Rs. Nil) due to Small Scale industrial undertaking to the extent such parties have been identified from the available documents / information.

7. Balance of some of the Sundry Debtors, Creditors, Loans and Advances are subject to confirmation from respective parties.

8. Other Receivable under the head Loans & Advances includes Excise Duty Rs. 1040.44 lacs and Sales Tax Rs. 419.64 lacs (Previous Year Rs. 1260.42 lacs and Rs.444.92 lacs respectively)

9. Current liabilities include Rs. 29.34 lacs (Previous Year Rs. 29.34 lacs) payable to Gujarat Sales Tax after 10 year from the year 2005-06 under Sales Tax incentive scheme enjoying by the company.

10. The remission scheme on Sales Tax charged on sales for a period of ten year subject to sales tax collected and refund of VAT on material purchased upto Rs. 91.09 crore has been exhausted during the year.

11. The scheme of remission of excise duty provided by the Department of Central Excise for five year from the date of production by way of refund of the excise duty paid has been completed during the year.

12. Related Party Disclosures (As identified by the Management)

(a) Name of Related Parties and Description of Relationship

I. Associate Company

Gallantt Udyog Ltd. GallanttlspatLtd. GaneshLaxmi Processors Pvt. Ltd. Hipoline Commerce Pvt. Ltd.

II. Key Managerial Personnel

Mr. Chandra Prakash Agarwal Mr. DineshR. Agarwal Mr. Nitin M. Kandoi

13. Employee Benefits:

Gratuity - Defined Benefit Plant - Provision made as per actuarial valuation. The Company has covered its gratuity liability by a group gratuity policy with SBI Life Insurance Company Ltd.

14. Previous year figures have been regrouped and reclassified wherever necessary to facilitate comparison with Current year figures.

 
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