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Notes to Accounts of Gangotri Iron & Steel Company Ltd.

Mar 31, 2014

1. Rights, preferences and restrictions attached to shares

The Company has only one class of equity Shares having a par value of Rs.5 per share. Each holder of Equity Shares is entitled to one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after payment of all preferential amounts, in proportion to their shareholding.

2. Segment information

In accordance with the requirement of the Accounting Standard 17 on segment reporting issued by the Institute of Chartered Accountants of India, the company operates in only one primary segment, i.e M.S.Bar. There are no reportable geographical segment

3. Disclosures of related party transactions (as identified & certified by the management):

a. As per Accounting Standard-18-'' Related Party Disclosures'' issued by the Institute of Chartered Accountants of India, the names of the related parties are given below :

b. List of related parties with whom the Company has transacted during the year

i Key Management Personnel Mr. Sanjiv Kumar Choudhary (Managing director)

ii Relatives of Key Mrs. Manju Choudhary (wife of Mr. Sanjiv Management Personnel Kr. Choudhary)

Mr. Ankit Choudhary ( son of Mr. Sanjiv Kr. Choudhary)

iii Enterprise owned or VIP Finstock Private Limited significantly influenced by Gangotri Electrocasting Limited Key Management Personnel Ganga Carriers Private Limited and their

For the year For the year ended 31st ended 31st 4. Contingent Liabilities not March 2014 March 2013 provided for in respect of: Amount (Rs) Amount (Rs)

a. The company has contested and lodged claims against Bihar State Electricity Board (BSEB) excess 3,925,256 3,925,256 bills and charges. No provision has been made in the accounts.

b. Disputed Excise Duty matters u/s 3A of Central Excise Act, 1944 pending with High Court, Patna related to year 1998-99,1999-2000 wherein provision has not been made 1,443,471 1,443,471 by the Company.

However, there is an apparent discrepancy as per the Commissioner''s Order according to which the liability works out Rs 37,40,926 which the company is in the process of getting rectified.

c No provision has been made in the accounts towards CENVAT credit wrongly availed during the year 2004-2005 by the Company as per the Excise department on the 298,412 298,412

strength of fake / fraudulent invoices by different parties.

d The Income Tax Department had conducted search and survey under section 132 of the Income Tax Act, 1961 (Act) and thereafter directed the company to get the accounts audited u/s 142(2A) of the Act after invoking section 153C of the Act for reassessment of income for the Assessment Years 2003-04 to 2009-10. Not satisfied with the outcome of the Income Tax proceedings, the company had filed an application with the Settlement Commission under section 245C of the Act on 1st August, 2011. However, the proceedings with the Settlement Commission have since been abated and the matter has been referred back to the original Assessing Officer for disposing of the matter.

Any liability or outcome of the aforesaid proceedings is indeterminate and has not been provided for. Such liability will be accounted for on final settlement of case by the Assessing Officer under the Act. However, the liability admitted by the company in its application with the Settlement Commission under Section 245C has not been provided in the books. In terms of the application filed on 1st August, 2011 the tax liability and interest determined and paid by the Company is Rs. 77,67,947 and Rs. 43,55,613 respectively. This has been included in '' Balances with Government Authorities'' under note 13 "Long-term loans and Advances".

5. During the year, the company has claimed Rs. 2,47,40,315(P.Y. Rs. 1,01,37,895)(cumulative claim of Rs. 10,49,12,524) as Subsidy / Incentive receivable on VAT and entry tax paid in respect of new manufacturing unit implemented at Bihta, in terms of the scheme mentioned in the Industrial Scheme, 2006 by the Department of Industries, Bihar, out of which an amount of Rs. 1,21,77,779 has been received by the company for the financial year 2013-14 and Rs. 81,87,907 has been received for the financial year 2012-13.

However, in terms of the requirement under the scheme, the industrial unit must get a passbook from the State Government in which the details of tax paid under Bihar VAT would be entered and verified by the Commercial Tax Department. The company is yet to get the passbook and hence the claim for such Subsidy / Incentive remains unsubstantiated.

6. Micro, Small and Medium Enterprises

There are no Micro, Small & Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March 2014. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

7. Revenue from operations includes Sales of TMT Bar, Sponge Iron, Pig Iron, Oxygen, Billet and Rejected Rolls amounting to Rs. 71,42,25,002 (P.Y. Rs.29,21,02,663) and turnover in a commodity exchange amounting to Rs. Nil(P.Y. Rs.60,88,38,412). Similarly cost of material consumed includes Purchase of Raw materials amounting to Rs. 33,78,76,292 (P.Y. Rs.34,72,16,764) and also purchase of commodities in a commodity exchange amounting to Rs. Nil(P.Y. Rs.56,15,88,468) . No transfer of property in goods had taken place in the previous year in commodity transactions incurred in the commodity exchange as required for treatment of such revenues as turnover in terms of Accounting Standard (AS - 9) issued by Institute of Chartered Accountants of India and accordingly, these were speculative in nature.

8. Bihar state electricity Board has determined liability of energy dues in respect of Bihta unit amounting to Rs. 12,40.38,717 till the month of December 2012 and the same was payable in 20 installments with interest, the 1st installment being Rs. 62,19,717 and the remaining installments of Rs. 62,01,000 each. The Company failed to pay the Installments and Interest for the months of September 2013 to March 2014, amounting to Rs.4,86,15,840 . The company has also not booked Interest for the months of October 2013 to March 2014 amounting to Rs. 41,85,675 in total.

9. The company has received advances from customers amounting to Rs. 14,09,34,007 and security deposits from customers amounting to Rs. 1,08,67,873, some of which are lying unadjusted since long. No confirmations of accounts are available in this respect and such balances are subject to confirmation and reconciliation and consequential adjustments thereof are indeterminate.

10. The company has not provided for any bad debt which may arise in view of large number of accounts outstanding for a very long period as no confirmation of account is available in respect of such parties.

11. Balances of the Trade payables, Loans and advances incorporated in the books as per balances appearing in the relevant subsidiary records, are subject to confirmation from the respective parties and consequential adjustments arising from reconciliation, if any. The management however is of the view that there will be no material discrepancies in this regard and is taking adequate steps to get the confirmation and reconciling such accounts.

12. Due to suspension of manufacturing activities there are indications which suggest impairment in the value of fixed assets, being plant and machinery and other fixed assets of the company. The management is still in the process of getting an impairment study done and the financial impact of the impairment loss, if any will be accounted for at the relevant time.

13. Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s

14. Figures have been rounded off to nearest rupee.

15. Figures in the bracket relate to previous year.


Mar 31, 2013

1 In accordance with the requirement of the Accounting Standard 17 on segment reporting issued by the Institute of Chartered Accountants of India, the company operates in only one primary segment, i.e M.S.Bar. There are no reportable geographical segment

2 Disclosures of related party transactions (as identified & certified by the management):

As per Accounting Standard-18- '' Related Party Disclosures'' issued by the Institute of Chartered Accountants of India, the names of the related parties are given below :

b List of related parties with whom the Company has transacted during the year i Key Management Personnel Mr. Sanjiv Kumar Choudhary (Managing director)

ii Relatives of Key Management Personnel Mrs. Manju Choudhary ( wife of Mr. Sanjiv Kr. Choudhary)

Mr. Ankit Choudhary ( son of Mr. Sanjiv Kr. Choudhary)

iii Enterprise owned or significantly influenced by Key VIP Finstock Private Limited Management Personnel and their relatives Gangotri Electrocasting Limited

Ganga Carriers Private Limited

For the year For the year ended 31st ended 31st

3 Contingent Liabilities not provided for in respect of : March 2013 March 2012 Amount (Rs) Amount (Rs)

a The company has contested and lodged claims against Bihar State Electricity Board (BSEB) 19.656 excess bills and charges. No provision has been made in the accounts.

b Disputed Excise Duty matters u/s 3A of Central Excise Act, 1944 pending with High Court, Patna related to year 1998-99,1999-2000 wherein provision has not been made by the 14,43,471 14,43,471 Company.

However, there is an apparent discrepancy as per the Commissioner''s Order according to which the liability works out Rs. 37,40,926 which the company is in the process of getting rectified.

c No provision has been made in the accounts towards CENVAT credit wrongly availed during the year 2004-2005 by the Company as per the Excise department on the strength of fake / 2,98,412 2,98,412 fraudulent invoices by different parties.

d The Income Tax Department had conducted search and survey under section 132 of the Income Tax Act, 1961 (Act) and thereafter directed the company to get the accounts audited u/s 142(2A) of the Act after invoking section 153C of the Act for reassessment of income for the Assessment Years 2003-04 to 2009-10. Not satisfied with the outcome of the Income Tax proceedings, the company had filed an application with the Settlement Commission under section 245C of the Act on 1st August, 2011. However, the proceedings with the Settlement Commission have since been abated and the matter has been referred back to the original Assessing Officer for disposing of the matter.

Any liability or outcome of the aforesaid proceedings is indeterminate and has not been provided for. Such liability will be accounted for on final settlement of case by the Assessing Officer under the Act. However, the liability admitted by the company in its application with the Settlement Commission under Section 245C has not been provided in the books. In terms of the application filed on 1st August, 2011 the tax liability and interest determined and paid by the Company is Rs. 77,67,947 and Rs. 43,55,613 respectively. This has been included in '' Balances with Government Authorities'' under note 13 "Long-term loans and Advances".

4 During the year the Company has claimed Rs. 1,01,37,895 (P.Y. Rs.1,60,00,000) (cumulative claim of Rs. 10,05,37,895) as Subsidy / Incentive receivable on VAT and entry tax paid in respect of new manufacturing unit implemented at Bihta, in terms of the scheme mentioned in the Industrial Incentive Scheme, 2006 by the Department of Industries, Bihar.

However, in terms of the requirement under the scheme, the industrial unit must get a passbook from the State Government in which the details of tax paid under Bihar VAT would be entered and verified by the Commercial Tax Department. The company is yet to get the passbook and hence the claim for such Subsidy / Incentive remains unsubstantiated.

5 Micro, Small and Medium Enterprises

There are no Micro, Small & Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March 2013. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

6 The State Bank of India, as a part of debt restructuring converted the internal over dues of Term Loan & Cash Credit prior to cut-off date (i.e. 1st July, 2012) amounting to Rs. 6,00,00,000 into Funded Interest Term Loan. The company has already accounted for aforesaid interest overdue to the extent of Rs. 3,02,00,000 in the previous accounting year 2011-12 but has not accounted for the balance of interest overdue amounting to Rs. 2,98.00,000 and such amounts have been debited under the head Other Current Assets in Note no. 18 above. Had the company accounted for the aforesaid interest overdue of Rs. 2,98,00,000, the loss for the year would have been higher by Rs. 2,98,00,000 and the Surplus shown under ''Reserve & Surplus would have been lower by that amount.

7 Revenue from operations includes Sales of TMT Bar, Sponge Iron, Pig Iron amounting to Rs. 29,21,02,663 (P.Y. Rs.46,46,43,425) and turnover in a commodity exchange amounting to Rs. 60,88,38,412 (P.Y. Rs.51,89,75,000). Similarly cost of material consumed includes Purchase of Raw materials amounting to Rs. 34,72,16,764 (P.Y. Rs.21,07,74,946) and also purchase of commodities in a commodity exchange amounting to Rs. 56,15,88,468 (P.Y. Rs.42,06,31,299) . No transfer of property in goods have taken place in commodity transactions incurred in the commodity exchange as required for treatment of such revenues as turnover in terms of Accounting Standard (AS - 9) issued by Institute of Chartered Accountants of India and accordingly, these are speculative in nature.

8 Bihar state electricity Board has determined liability of energy dues in respect of Bihta unit amounting to Rs. 12,40,38,717 till the month of December 2012. However the company has booked liability of only Rs. 7,97,13,574 tilt December 2012. Consequently, there is a short provision of Rs. 4,43,25,143 in the books. The company is also liable to pay an estimated interest on such energy dues amounting to Rs. 19,94,631 till 31st March, 2013, which has also not been provided for.

9 The management of the company is of the opinion that an amount of Rs. 69,11,384 is no more payable to Epic Alloys Steel Private Limited out of the total payable amount of Rs. 1,09,11,384 and accordingly the amount has been written back in the books of accounts as liabilities no longer required written back. The company has also written back amount of Rs. 15,80,587 payable to AMG. However the company has not received any confirmation regarding the closing balances as on 31st March, 2013.

10 Balances of the Trade payables, Loans and advances incorporated in the books as per balances appearing in the relevant subsidiary records, are subject to confirmation from the respective parties and consequential adjustments arising from reconciliation, if any. The management however is of the view that there will be no material discrepancies in this regard and is taking adequate steps to get the confirmation and reconciling such accounts.

11 Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classification/

12 Figures have been rounded off to nearest rupee.

13 Figures in the bracket relate to previous year.


Mar 31, 2012

1 In accordance with the requirement of the Accounting Standard 17 on segment reporting issued by the Institute of Chartered Accountants of India, the company operates in only one primary segment, i.e M.S.Bar. There are no reportable geographical segment.

2 Disclosures of related party transactions (as identified & certified by the management):

a. As per Accounting Standard-18-' Related Party Disclosures' issued by the Institute of Chartered Accountants of India, the names of the related parties are given below :

b. List of related parties with whom the Company has transacted during the year.

Key Management Personnel

Mr. Saniiv Kumar Choudhary (Managing director)

ii Relatives of Key Management Personnel

Mrs. Manju Choudhary (wife of Mr.Sanjiv Kr.Choudhary)

Mr. Ankit Choudhary (son of Mr.Sanjiv Kr.Choudhary)

iii Enterprise owned or significantly influenced by Key Management Personnel and their relatives

VIP Finstock Private Limited Gangotri Electrocasting Limited Ganga Carriers Private Limited

d Disclosure in Respect of Material Related Party Transactions during the year

i Mangerial Remenuration paid to Mr. Sanjiv Kumar Choudhary Rs 9,85,713 (Rs. 10,90,928)

ii Sale of goods to Gangotri Electrocastings Ltd Rs. 8,90,77,355 (Rs. 20,60,74,922)

iii Purcahse of goods from Gangotri Electrocastings Ltd Rs. 14,49,52,682 ( Rs. 45,89,31,332)

iv Car charges paid to Mrs. Manju Choudhary Rs. 2,52,000 (Rs. 2,52,000)

For the year ended 31st March

2012 2011 Amount (Rs) Amount (Rs)

3 Contingent Liablities not provided for in respect of :

a The company has contested and lodged claims against Bihar State Electricity Board (BSEB) excess bills and charges.No provision has been made in the accounts. 3,925,256 7,919,656

b Disputed Excise Duty matters u/s 3A of Central Excise Act, 1944 pending with High Court, Patna related to year 1998-99, 1999-2000 wherein provision has not been made by the Company. 1,443,471 1,443,471

However, there is an apparent discrepancy as per the Commissioner's Order according to which the liability works out Rs. 37,40,926 which the company is in the process of getting rectified.

c No provision has been made in the accounts towards CENVAT credit wrongly availed during the year 2004-2005 by the Company as per the Excise department on the strength of fake / fraudulent invoices by different parties. 298,412 298,412

d "The Income Tax Department had conducted search and survey u/s 132 of the Income Tax Act, 1961 (Act) and thereafter directed the company to get the accounts audited u/s 142(2A) of the Act.Not satisfied with the outcome of the Income Tax proceedings, the company has filed an application with the Settlement Commission u/s 245C of the Act, which has been admitted for further proceedings."

Any liability or outcome of the aforesaid proceedings is indeterminate and has not been provided for. Such liability will be accounted for on final settlement of case by the settlement commission under the Act. However, liability admitted by the company has not been provided in the books. In terms of the petition filed on 1st August, 2011 the tax liability and interest determined and paid by the Company is Rs. 77,67,947 and Rs. 43,55,613 respectively.This has been included in ' Balances with Government Authorities' under note 11 "Long-term loans and advances".

4 The Company has claimed Rs 9.04 crores as Subsidy / Incentive receivable on VAT and entry tax paid in respect of new manufacturing unit implemented at Bihta, in terms of the scheme mentioned in the Industrial Incentive Scheme, 2006 by the Department of Industries, Bihar.

However, in terms of the requirement under the scheme, the industrial unit must get a passbook from the State Government in which the details of tax paid under Bihar VAT would be entered and verified by the Commercial Tax Department. The company is yet to get the passbook and hence the claim for such Subsidy / Incentive remains unsubstantiated.

5 Micro, Small and Medium Enterprises

There are no Micro, Small & Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March 2012. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

6 Balances of some of the Trade payables, Loans and advances incorporated in the books as per balances appearing in the relevant subsidiary records, are subject to confirmation from the respective parties and consequential adjustments arising from reconciliation, if any. The management however is of the view that there will be no material discrepancies in this regard.

7 Revenue from operations includes turnover incurred in a commodity exchange. Similarly cost of material consumed also include the relevant trade values on the debit side. No transfer of property in goods have taken place in these transactions as required for treatment of such revenues as turnover in terms of Accounting Standard (AS - 9) issued by Institute of Chartered Accountants of India and accordingy, these are speculative in nature. The Revenue from such transactions amount to Rs.51,89,75,000 and the Cost of Material from such transactions amount to Rs. 42,06,31,299.

8 The financial statement for the year ended 31st March, 2011 had been preprared 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 statement 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's classification.

9 Figures have been rounded off to nearest rupee.

10 Figures in the bracket relate to previous year.


Mar 31, 2011

(Amount in Rs.)

As at 31.03.2011 As at 31.03.2010

1 Contingent liabilities not provided for in respect of:

a) The company has contested and lodged claims against Bihar State Electricity Board (BSEB) excess bills and charges. No provision has been made in the accounts. 7,919,656 7,919,656

b) Disputed Excise Duty matters u/s 3A of Central Excise Act, 1944 pending with High Court, Patna related to year 1998-99,1999-2000 wherein provision has not been made by the Company. 1,443,471 1,443,471 However, there is an apparent discrepancy as per the Commissioner's Order according to which the liability works out Rs. 37,40,926/- which the company is in the process of getting rectified.

c) No provision has been made in the accounts towards CENVAT credit wrongly availed during the year 2004-2005 by the Company as per the Excise department on the strength of fake / fraudulent invoices by different parties. 298,412 298,412

d) The Income Tax Department has conducted search and survey u/s 132 of the Income Tax Act, 1961 (Act) and thereafter directed the Company to get the accounts audited u/s 142(2A) of the Act. Not satisfied with the outcome of the Income Tax proceedings, the company has filed an application with the settlement Commission u/s 245C of the Act, which has been admitted for further proceedings. Any liability or outcome of the aforesaid proceedings is indeterminate and has not been provided for. Such liability will be accounted for on final settlement of case by the settlement commission under the Act.

2. The Company has claimed Rs 7.44 crores as Subsidy / Incentive receivable on VAT and entry tax paid in respect of new manufacturing unit implemented at Bihta, in terms of the scheme mentioned in the Industrial Incentive Scheme. 2006 by the Department of Industries, Bihar.

However, in terms of the requirement under the scheme, the industrial unit must get a passbook from the State Government in which the details of tax paid under Bihar VAT would be entered and verified by the Commercial Tax Department. The company is yet to get the passbook and hence the claim for such Subsidy / Incentive remains unsubstantiated.

3. As per information available with the Company there are no amounts payable or paid during the period which are required to be disclosed as per Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006.

4. Balances of some of the Sundry debtors, Sundry creditors, Lenders, Loans and advances, incorporated in the books as per balances appearing in the relevant subsidiary records, are subject to confirmation from the respective parties and consequential adjustments arising from reconciliation, if any. The management however is of the view that there will be no material discrepancies in this regard.

5. Secured loans

a. Term loan & cash credit limit is secured by hypothecation of inventory, stock in trade/transit, book debts, fixed deposits of Rs 71.61 lac and mortgage of land & building and entire fixed assets at the factory premises of the company along with the personal guarantee of four directors of the company and three other persons including relatives of directors.

b. Term loans (vehicle loans) from banks are secured by hypothecation of respective vehicles.

6. Disclosures of related party transactions :

a. List of related parties with whom the Company has transacted during the year i. Key Management Personnel

a. Mr. Sanjiv Kumar Choudhary Managing Director

ii. Relatives of Key Management Personnel

a. Smt Manju Choudhary (wife of Mr. Sanjiv Kumar Choudhary)

b. Mr. Ankit Choudhary (Son of Mr. Sanjiv Kumar Choudhary)

iii. Enterprise owned or significantly influenced by Key Management Personnel and their relatives

a. VIP Finstock Private Limited

b. Gangotri Electrocastings Limited

c. Ganga Carriers Private Limited

7. In accordance with the requirements of Accounting Standard (AS 17) on Segment Reporting issued by the Institute of Chartered Accountants of India, the Company operates in only one primary segment, i.e. M.S.Bar. There are no reportable geographical segment.

8. Gratuity and post-employment benefits plans

The company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to gratuity on terms not less favourable than The provisions of Gratuity Act, 1972. The above said scheme is unfunded.

The following table summarises the components of net benefits / expense recognised in the profit and loss account and the balance sheet for the respective plans.

9. Previous year's figures have been regrouped, rearranged and reclassified wherever necessary to make them comparable with the current year figures.

10. The figures are rounded off to the nearest Rupee.


Mar 31, 2010

As at 31.03.2010 As at 31.03.2009

Rs. Rs.

1. Contingent liabilities not provided for in respect of:

a) The company has contested and lodged claims against Bihar State Electricity Board (BSEB) excess bills and charges. No provision has been made in the accounts. 7,919,656 7,919,656

b) Disputed Excise Duty matters u/s 3A of Central Excise Act. 1944 pending with High Court, Patna related to year 1998-99. 1999-2000 wherein provision has not been made by the Company. 1,443,471 1,443,471

However, there is an apparent discrepancy as per the Commissioners Order according to which the liability works out Rs 37,40,926/- which the company is in the process of getting rectified.

c) No provision has been made in the accounts towards CENVAT credit wrongly availed during the year 2004-2005 by the Company as per the Excise department on the strength of fake / fraudulent invoices by different parties. 298,412 298,412

2. As per information available with the Company there are no amounts payable or paid during the period which are required to be disclosed as per Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006.

3. Balances of some of the Sundry debtors, Sundry creditors, Lenders, Loans and advances, incorporated in the books as per balances appearing in the relevant subsidiary records, are subject to confirmation from the respective parties and consequential adjustments arising from reconsiliation, if any. The management however is of the view that there will be no material discrepancies in this regard.

4. Secured loans

a. Term loan & cash credit limit is secured by hypothecation of inventory, stock in trade/transit, book debts, fixed deposits of Rs 68.08 lakhs and mortgage of land & building and entire fixed assets at the factory premises of the company along with the personal guarantee of four directors of the company and three other persons including relatives of directors.

b. Term loans (vehicle loans) from banks are secured by hypothecation of respective vehicles.

5. Disclosures of related party transactions :

a. List of related parties with whom the Company has transacted during the year

i. Key Management Personnel

a. Mr. Sanjiv Kumar Choudhary Managing Director

ii. Relatives of Key Management Personnel

a. Smt Manju Choudhary (wife of Mr. Sanjiv Kumar Choudhary)

iii. Enterprise owned or significantly influenced by Key Management Personnel and their relatives

a. VIP Finstock Private Limited

b. Gangotri Electrocastings Limited

c. Ganga Carriers Private Limited

6. In accordance with the requirements of Accounting Standard (AS 17) on Segment Reporting issued by the Institute of Chartered Accountants of India, the Company operates in only one primary segment, i.e. M.S.Bar. There are no reportable geographical segment.

7. Gratuity and post-employment benefits plans

The company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to gratuity on terms not less favourable than The provisions of Gratuity Act, 1972. The above said scheme is unfunded.

The following table summarises the components of net benefits / expense recognised in the profit and loss account and the balance sheet for the respective plans.

8. Previous years figures have been regrouped, rearranged and reclassified wherever necessary to make them comparable with the current year figures.

9. The figures are rounded off to the nearest Rupee.

 
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