Mar 31, 2023
Provisions, Contingent liabilities and Contingent Assets
Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events,
it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably
estimated. Provisions are not recognised for future operating losses.
Provisions are measured at the present value of managementâs best estimate of the expenditure required to settle the
present obligation at the end of the reporting period. A present obligation that arises from past events where it is
neither probable that an outflow of resources will be required to settle nor a reliable estimate of the amount cannot
be made, is disclosed as a contingent liability. Contingent liabilities are also disclosed when there is a possible
obligation arising from past events, the existence of which will be confirmed only by the occurrence or non -
occurrence of one or more uncertain future events not wholly within the control of the Company. Contingent assets
are not recognised in financial statements since this may result in the recognition of income that may never be
realised. However, when the realisation of income is virtually certain, then the related asset is not a contingent asset
and is recognised.
XIII. Foreign currency translation
Items included in the financial statements of each of the Companyâs entities are measured using the currency of the
primary economic environment in which the entity operates (âthe functional currencyâ). The financial statements are
presented in Indian rupee (INR), which is Garg Furnace Limited functional and presentation currency.
Foreign currency translations are translated into the functional currency using the exchange rates at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the
translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are
generally recognized in profit or loss.
XIV. Revenue recognition
The Company has adopted Indian Accounting Standard 115 (Ind AS 115) - âRevenue from contracts with
customersâ.
Revenue from sale of products is recognized upon transfer of control to customers. Revenue is measured at the
amount of consideration which the Company expects to be entitled to in exchange for transferring distinct goods to
a customer as specified in a contract, excluding amounts collected on behalf of third parties (for example, taxes and
duties collected on behalf of the Government). A receivable is recognized upon satisfaction of performance
obligations as per the Contracts.
"To determine whether to recognise revenue, the Company follows a 5-step process:
1. Identifying the contract with a customer
2. Identifying the performance obligations
3. Determining the transaction price
4. Allocating the transaction price to the performance obligations
5. Recognising revenue when/ as performance obligation(s) are satisfied."
Use of significant Judgements in Revenue Recognition
Judgement is required to determine the transaction price for the contract. The transaction price could be either a
fixed amount of consideration or variable consideration with elements such as volume discounts, price concessions,
incentives etc. The estimated amount of variable consideration is adjusted in the transaction price only to the extent
that is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur and
is reassessed at the end of each reporting period.
The Company assesses its revenue arrangements against specific recognition criterias like exposure to the significant
risks and rewards associated with the sale of goods. When deciding the most appropriate basis for presenting
revenue or costs of revenue, both the legal form and substance of the agreement between the Company and its
customers are reviewed to determine each partyâs respective role in the transaction.
Other Operating Revenue
Dividend income is recognized when the right to receive payment is established.
Interest income is recognized on a time proportion basis taking into account the amount oustanding and the interest
rate applicable.
Claims receivables on account of insurance are accounted for to the extent the Company is reasonably certain of
their ultimate collection.
XV. Income Tax
Income tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the period. Taxable profit differs from âprofit before taxâ as
reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in
other years and items that are never taxable or deductible. The Companyâs current tax is calculated using tax rates that
have been enacted or substantively enacted by the end of the reporting period.
Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the
financial statements and the corresponding tax bases used in the computation of taxable profits. Deferred tax
liabilities are recognised for all taxable temporary differences. Deferred tax assets are recognised for all deductible
temporary differences and incurred tax losses to the extent that it is probable that taxable profits will be available
against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not
recognised if the temporary difference arises from the initial recognition (other than in a business combination) of
assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent
that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be
recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the
liability is settled or the asset is realised, based on tax rates (and tax laws) that have been enacted or substantively
enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the
manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of
its assets and liabilities.
Current and deferred tax for the period
Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other
comprehensive income or directly in equity, in which case, the income taxes are also recognised in other
comprehensive income or directly in equity respectively.
Minimum Alternate Tax
Minimum Alternate Tax (MAT) paid in the year is charged to the Statement of Profit and Loss as current tax. The
Company recognises MAT credit available as an asset only to the extent that there is convincing evidence that the
Company will pay normal income tax during the specified period, i.e., the period for which MAT credit is allowed to
be carried forward. In the year in which Company recognises MAT credit as an asset in accordance with the
Guidance Note on Accounting for Credit Available in respect of Minimum Alternate Tax under the Income Tax Act,
1961, the said asset is created by way of credit to the Statement of Profit and Loss and shown as âMAT Credit
Entitlement â. The Company reviews the âMAT Credit Entitlementâ asset at each reporting date and writes down
the asset to the extent the Company does not have convincing evidence that it will pay normal tax during the
specified period.
In accordance with Ind AS 12 Company is grouping MAT credit entitlement with Deferred Tax Assets / Liability
(Net).
XVI. Cash and cash equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents include cash in hand,
demand deposits held with banks, other short-term highly liquid investments with original maturities of three months
or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes
in value, and bank overdrafts.
XVII. Financial instruments
Financial assets and financial liabilities are recognized when a Company becomes a party to the contractual provisions
of the instruments.
Initial Recognition:
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and
financial liabilities at fair value through profit or loss and ancillary costs related to borrowings) are added to or
deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition.
Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through
profit or loss are recognised immediately in Statement of Profit and Loss.
Classification and Subsequent Measurement: Financial Assets
The Company classifies financial assets as subsequently measured at amortised cost, fair value through other
comprehensive income (âFVOCIâ) or fair value through profit or loss (âFVTPLâ) on the basis of following:
⢠The entityâs business model for managing the financial assets and
⢠The contractual cash flow characteristics of the financial asset.
Amortised Cost:
A financial asset shall be classified and measured at amortised cost if both of the following conditions are met:
⢠The financial asset is held within a business model whose objective is to hold financial assets in order to
collect contractual cash flows and
⢠The contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
Fair Value through OCI:
A financial asset shall be classified and measured at fair value through OCI if both of the following conditions are
met:
⢠The financial asset is held within a business model whose objective is achieved by both collecting
contractual cash flows and selling financial assets and
⢠The contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
Fair Value through Profit or Loss:
A financial asset shall be classified and measured at fair value through profit or loss unless it is measured at amortized
cost or at fair value through OCI.
All recognized financial assets are subsequently measured in their entirety at either amortized cost or fair value,
depending on the classification of the financial assets.
Classification and Subsequent Measurement: Financial liabilities:
Financial liabilities are classified as either financial liabilities at FVTPL or âother financial liabilitiesâ.
Financial Liabilities at FVTPL:
Financial liabilities are classified as at FVTPL when the financial liability is held for trading or are designated upon
initial recognition as FVTPL:
Gains or Losses on liabilities held for trading are recognized in the Statement of Profit and Loss.
Impairment of financial assets:
Financial assets, other than those at FVTPL, are assessed for indicators of impairment at the end of each reporting
period. The Company assesses on a forward looking basis the expected credit losses associated with its assets. The
impairment methodology applied depends on whether there has been a significant increase in credit risk.
In case of trade receivables, the Company follows the simplified approach permitted by Ind AS 109 â Financial
Instruments for recognition of impairment loss allowance. The application of simplified approach does not require
the Company to track changes in credit risk. The Company calculates the expected credit losses on trade receivables
using a provision matrix on the basis of its historical credit loss experience.
Derecognition of financial instruments:
The Company derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or
when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another
party. If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues
to control the transferred asset, the Company recognizes its retained interest in the asset and an associated liability for
amounts it may have to pay. If the Company retains substantially all the risks and rewards of ownership of a
transferred financial asset, the Company continues to recognise the financial asset and also recognizes a collateralized
borrowing for the proceeds received.
A financial liability is derecognized when the obligation specified in the contract is discharged or cancelled or expires.
XVIII. Offsetting financial instruments
Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally
enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset
and settle the liability simultaneously.
XIX. Employee benefits
(i) Short term obligations
Liabilities for wages and salaries, short term compensated absence and ex-gratia including non-monetary benefits that
are expected to be settled wholly within 12 months after the end of the period in which the employees render the
related service are recognised in respect of employeesâ services up to the end of the reporting period and are
measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current
employee benefits obligations in the balance sheet.
(ii) Post-employment obligations
The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of
the defined benefit obligations at the end of the reporting period less the fair value of plan assets (if any). The
defined benefit obligation is calculated annually as per Valuation report given by Actuary on the basis of Guidance
issued by The Acturial Society of India.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation
and the fair value of plan assets. This cost is included in employee benefit expenses in the statement of profit or loss.
Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are
recognised in the period in which they occur, directly in other comprehensive income. They are included in retained
earnings in the statement of changes in equity and in the balance sheet.
Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are
recognised immediately in profit or loss as past service cost.
(iii) Defined contribution plans
The Company pays provident fund contributions to publicly administered provident funds as per local regulations.
The Company has not further payment obligations once the contributions have been paid. The contributions are
accounted for as defined contribution plans and the contributions are recognised as employee benefit expense when
they are due.
XX. Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision maker [CODM]. The managing committee is considered to be the âChief Operating Decision Makerâ
(CODM) as defined in IND AS 108. The Operating Segment is the level at which discrete financial information is
available. The CODM allocates resources and assess performance at this level. In the context of Ind AS 108 on
âSegment Reportingâ, the results are considered to constitute a single reportable entity/ business segment for which
the operating results are regularly reviewed by the companyâs Chief Operating Decision Maker.
XXI. Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently
measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption
amount is recognised in profit or loss over the period of the borrowings using effective interest method. Fees paid
on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable
that some or all of the facility will be drawn down. To the extent there is no evidence that it is probable that some or
all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over
the period of the facility to which it relates.
Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of
the liability for at least 12 months after the reporting period. Where there is a breach of a material provision of a
long-term loan arrangement on or before the end of the reporting period with the effect that the liability becomes
payable on demand on the reporting date, the entity does not classify the liability as current, if the lender agreed, after
the reporting period and before the approval of the financial statements for issue, not to demand payment as a
consequence of the breach.
XXII. Earnings per share
(i) Basic earnings per share
Basic earnings per share is calculated by dividing: The profit attributable to owners of the Company by the
weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements
in equity shares issued during the year and excluding treasury shares
(ii) Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take
into account:
⢠The after income tax effect of interest and other financing costs associated with dilutive potential equity
shares, and
⢠The weighted average number of additional equity shares that would been outstanding assuming the
conversion of all dilutive potential equity shares.
XXIII. Assets Held for Sale;
Non-current assets or disposal groups comprising of assets and liabilities are classified as âheld for saleâ when all of
the following criteriaâs are met: (i) decision has been made to sell. (ii) the assets are available for immediate sale in its
present condition. (iii) the assets are being actively marketed and (iv) sale has been agreed or is expected to be
concluded within 12 months of the Balance Sheet date.
Subsequently, such non-current assets and disposal groups classified as held for sale are measured at the lower of its
carrying value and fair value less costs to sell. Non-current assets held for sale are not depreciated or amortised.
In view of the management, the current assets (financial & other) have a value on realization in the ordinary course
of business at least equal to the amount at which they are stated in the balance sheet.
XXIV. Events occurring after balance sheet date
There are no major events which have occurred after the balance sheet date requiring disclosure in the financial
statements.
XXV. Note 2 (iii): Recent accounting pronouncements.
Ministry of Corporate Affairs (âMCAâ) notifies new standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA amended
the Companies (Indian Accounting Standards) Amendment Rules, 2023, as below:
Ind AS 1 - Presentation of Financial Statements - This amendment requires the entities to disclose their material
accounting policies rather than their significant accounting policies. The effective date for adoption of this
amendment is annual periods beginning on or after April 1, 2023. The Company has evaluated the amendment and
the impact of the amendment is insignificant in the standalone financial statements.
Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors - This amendment has introduced a
definition of âaccounting estimatesâ and included amendments to Ind AS 8 to help entities distinguish changes in
accounting policies from changes in accounting estimates. The effective date for adoption of this amendment is
annual periods beginning on or after April 1, 2023. The Company has evaluated the amendment and there is no
impact on its standalone financial statements.
Ind AS 12 - Income Taxes - This amendment has narrowed the scope of the initial recognition exemption so that it
does not apply to transactions that give rise to equal and offsetting temporary differences. The effective date for
adoption of this amendment is annual periods beginning on or after April 1, 2023. The Company has evaluated the
amendment and there is no impact on its standalone financial statement.
Mar 31, 2015
1. Corporate Information:
Garg Furnace Limited is a Public Limited company incorporated in India
under Provisions of Companies Act, 1956. Its shares are listed in
Bombay Stock Exchange, Delhi stock exchange and Ludhiana stock
exchange. The Company is engaged in manufacturing of Alloy and Non
Alloy Steel Ingots, Wire Rod, Wire Round, Mig Wire, casting of Iron
products and trading of Iron, Steel and Textile products
2. Contingent Liabilities
(I) As at 31st As at 31st
March-2015 March 2014
a) For Bank Guarantees Rs. 2163.87 Lacs Rs. 2307.38 Lacs
and letter of credit
outstanding
b) Other Contingent Liabilities Rs. 51.11 Lacs Rs. 55.20 Lacs
c) . Other monies for which company is contingently liable:
The company has contested the demand of Punjab Power Corporation Ltd of
Rs 72306370/- on account of voltage surcharge. As Against this a sum of
Rs 53510589/- has been deposited under protest and stands included
under the head "Advances Recoverable in cash or In kind. "The Company
has filed an appeal in Punjab And Haryana High Court. Honourable High
court has granted stay in disconnection of supply of electricity of
company. No provision in accounts has been made in respect thereof.
(II) Commitments:
As at 31st As at 31st
March-2015 March 2014
a) Estimated amount of contracts Nil Rs. 202.08 Lacs
Remaining to be executed on Capital
account (net of advances.
3. Debit or Credit Balances on whatsoever account are subject to
confirmation from parties.
4. In the opinion of the Board of Directors, all the Current Assets,
Loans & Advances have a value on realization in the ordinary course of
business at least equal to the amount of at which they are stated
,except as expressly stated otherwise.
Disclosure under Accounting Standards:
5. The Earning per share has been calculated in accordance with
Accounting Standard (AS)-20 issued by the Institute of Chartered
Accountants of India. The numerators and denominators used to calculate
basic and Diluted Earning per share are as under:-
6. The Company has a defined benefit gratuity plan. Every employee
who has completed five years or more of service gets a gratuity on
departure at 15 days salary (Last drawn salary) for each completed year
of service subject to a maximum amount of Rs. 10,00,000.00.
The Accounting Standard (AS-15 Revised) prescribed by the companies
Accounting Standard Rules 2006 is being followed and the following
table summarize the components of net benefit/expenses recognized in
the Statement of profit and loss and the funded status and the amount
recognized in the balance sheet for the gratuity plan.
Method of Valuation: Projected Unit Credit Method
7. Related Party Disclosure:
i) Name of related parties and description of relationship
A. Key Management Personnel
1. Sh. Devinder Garg - Executive Chairman
2. Smt. Vaneera Garg - (Wholetime Director)
3. Sh. Toshak Garg - (Managing Director)
4. Sh. Daksh Garg - (CFO)
ii) Enterprise owned or significantly influenced by key management
personnel and their relatives.
A. Vaneera Industries Ltd
B. Avtar Exports Pvt Ltd
C. Devinder Garg & Son's HUF
Summary of Associates Key Managerial Personnel
Transactions
iii) There is no provision for doubtful debts or amounts written off or
written back during the year in respect of dues from or to related
parties.
8. Segment Information as required by Accounting Standard (AS)-17 on
Segment Reporting issued by the Institute of Chartered Accountants of
India is disclosed hereunder :-
The company has identified two reportable segments viz; Iron & Steel
Products & Textile product
Mar 31, 2013
1 Corporate Information:
Garg Furnace Limited is a Public Limited company incorporated in India
under Provisions of Companies Act 1956. Its shares are listed in Bombay
Stock Exchange,Delhi stock exchange and Ludhiana stock exhange.The
Company is engaged in manufacturing of Alloy and Non Alloy Steel
Ingots, Wire Rod, Wire Round,Mig Wire,casting of Iron products and
trading of Iron,Steel and Textile products.
2 Debit or Credit Balances on whatsoever account are subject to
confirmation from parties.
3. In the opinion of the Board of Directors, all the Current Assets,
Loans & Advances have a value on realization in the ordinary course of
business at least equal to the amount of at which they are stated xcept
as expressly stated otherwise.
4. The Company has a defined benefit gratuity plan. Every employee who
has completed five years or more of service gets a gratuity on
departure at 15 days salary (Last drawn sala ry) for each completed
year of service subject to a maximum amount of Rs. 10,00,000.00.
The Accounting Standard (AS -15 Revised) prescribed by the companies
Accounting Standard Rules 2006 is being followed and the following
table summarize the components o f net benefit/expenses recognized in
the Statement of profit and loss and the funded status and the amount
recognized in the balance sheet for the gratuity plan.
5. Related Party Disclosure:
i) Name of related parties and description of relationship
A. Key Management Personnel 1. Sh Devinder Garg- MD cum Chairman
2. Smt Vaneera Garg (Wholetime Director)
3. Sh Toshak Garg (Wholetime director)
ii) Enterprise owned or significantly influenced by key management
personnel and their relatives.
6. Borrowing costs capitalized during the year NIL.(previous year Rs
14,47,125.50)
7. Segment Information as required by Accounting Standard (AS) -17 on
Segment Reporting issued by the Institute of Chartered Accountants of
India is disclosed hereunder:
The company has identified two reportable segments viz; Iron & Steel
Products
Mar 31, 2012
1. Corporate Information:
Garg Furnace Limited is a Public Limited company incorporated in India
under Provisions of Companies Act 1956. Its shares are listed in Bombay
Stock Exchange,Delhi stock exchange and Ludhiana stock exhange.The
Company is engaged in manufacturing of Alloy and Non Alloy Steel
Ingots, Wire Rod,Wire Round,Mig Wire,casting of Iron products and
trading of Iron,Steel and Textile products.
Term Loans From banks are Secured by equitable mortgage of entire Land
& Building & Fixed Asstets (immovable and movable) of the Company both
present and future ranking parri passu basis and further secured by
charge on the entire current assets of the company and personal
guarantee of two directors.
(b) Vehicle loans from banks and companies are secured by hypothecation
of the concerned vehicles.
(c) Term Loan from Banks carry an interest rate of 12.75% p.a. are
repayble.
(a) (The Working Capital Loans are Secured by hypothecation of stock in
trade,Book Debts of the company,the overdraft is further secured by
Equitable Mortgage of Land .Building and Hypothecation of Plant and
machinery of the company and personal gurantee of two Directors.And it
carries interest @12.75% p.a)
(b) Unsecured loans from Related Parties are interest free loans and
are repayable on demand.
*The Company has not received information from vendors/service
providers regarding their status under Micro, Small and Medium
Enterprises Development Act, 2006 and hence disclosure relating to
amounts unpaid as at the year end together with interest paid/payable
under this Act has not been given.
2. Contingent Liabilities
(I) As at 31st
March-2012 As at 31st
March 2011
a). For Bank Guarantees Rs. 1557.38
Lacs Rs. 701.07 Lacs
and letter of
credit outstanding
b). Other Contingent Liabilities NIL Rs. 16475.00 Lacs
C). Other monies for which company is contingently liable:
The company has contested the demand of Punjab Power Corporation Ltd of
Rs 72306370/- on account of voltage surcharge. As Against this a sum of
Rs 30594899/- has been deposited under protest and stands included
under the head "Advances Recoverable in cash or In kind.The Company
has filed an appeal in Punjab and Haryana High Court. Honourable High
court has granted stay in disconnection of supply of electricity of
company. No provision in accounts has been made in respect thereof.
3. Debit or Credit Balances on whatsoever account are subject to
confirmation from parties.
4. In the opinion of the Board of Directors, all the CurrentAssets,
Loans &Advances have a value on realisation in the ordinary course of
business at least equal to the amount at which they are stated, except
as expressly stated otherwise.
Disclosure under Accounting Standards:
5. The Earning per share has been calculated in accordance with
Accounting Standard (AS)-20 issued by the Institute of Chartered
Accountants of India. The numerators and denominators used to calculate
Basic and Diluted Earning per share are as under:-
6. The Company has a defined benefit gratuity plan. Every employee
who has completed five years or more of service gets a gratuity on
departure at 15 days salary (Last drawn salary) for each completed year
of service subject to a maximum amount of Rs. 10,00,000.00.
The Accounting Standard (AS-15 Revised) prescribed by the Companies
Accounting Standard Rules 2006 is being followed and the following
table summarize the components of net benefit/expenses recognized in
the profit and loss statement and the funded status and the amount
recognized in the balance sheet for the gratuity plan
7. Related Party Disclosure:
i) Name of related parties and description of relationship
A. Key Management Personnel 1. Late Sh. Jagdish Chand Garg
2. Sh. Davinder Garg- MD cum Chairman
3. Smt Vaneera Garg (Wholetime Director)
4. Sh Toshak Garg (Wholetime director)
ii) There is no provision for doubtful debts or amounts written off or
written back during the year in respect of dues from or to related
parties.
8. The indicators listed in Paragraph 8 to 10 of the Accounting
Standard (AS) -28 "Impairment of Assets" issued by Institute of
Chartered Accountants of India have been examined and on such
examination, it has been found that none of the indicators are present
in the case of the company. A formal estimate of the recoverable amount
has not been made as there is no indication of a potential impairment
loss.
9. Borrowing Costs Capitalized during the year Rs
14,47,125.50.(previousyearNil) .
10. Segment Information as required by Accounting Standard (AS)-17on
Segment Reporting issued by the Institute of Chartered Accountants of
India is disclosed hereunder :-
The company has identified two reportable segments viz; Iron & Steel
Products & Textile product
Mar 31, 2010
1. Contingent Liabilities
a). For Bank Guarantee Rs. 49.67 Lacs (Previous Year Rs. 45.68 Lacs)
b). For letter of credits Rs. 684.56 Lacs (Previous Year Rs. 544.69
Lacs)
c). For Corporate Guarantee given on behalf of others Rs. 29526.00
Lacs (Previous Year Rs. 24905.50 Lacs)
2. Debit or Credit Balances on whatsoever account are subject to
confirmation from parties.
3. In the opinion of the Board of Directors, all the Current Assets,
Loans & Advances have a value on realisation in the ordinary course of
business at least equal to the amount at which they are stated, except
as expressly stated otherwise.
4. The company has paid remuneration to directors within the limits
prescribed in the Schedule XIII to the Companies Act, 1956 as given
below:
5. The company has not received information from vendors/service
providers regarding their status under Micro, Small and Medium
Enterprises Development Act, 2006 and hence disclosure relating to
amounts unpaid as at the year end together with interest paid/payable
under this Act have not been given.
6. The Earning per share has been calculated in accordance with
Accounting Standard (AS)-20 issued by the Institute of Chartered
Accountants of India. The numerators and denominators used to calculate
Basic and Diluted Earning per share are as under:-
7. During the year, the company has received Rs. 272.80 lacs being the
balance amount against 560,000 convertible warrants allotted on
15-10-2008. The said warrants holders have exercised their option for
conversion of warrants into equity shares and accordingly as per terms
of issue 560,000 Equity Shares of Rs. 10/- each at a premium of Rs.
60/- per share were allotted on 27-03-2010. The proceeds from
preferential allotment have been utilised by the company as under :-
8. The Company has a defined benefit gratuity plan. Every employee who
has completed five years or more of service gets a gratuity on
departure at 15 days salary (Last drawn salary) for each completed year
of service subject to a maximum amount of Rs. 3,50,000.00.
The Accounting Standard (AS-15 Revised) prescribed by the Companies
Accounting Standard Rules, 2006 is being followed and the following
table summarize the components of net benefit/expenses recognized in
the profit and loss account and the funded status and the amount
recognized in the balance sheet for the gratuity plan.
9. In accordance with Accounting Standard-22 "Accounting for taxes on
Income" issued by The Institute of Chartered Accountants of India,
deferred taxes have been recognised in respect of following timing
differences between accounting income and taxable income: -
10. The indicators listed in Paragraph 8 to 10 of the Accounting
Standard (AS) Ã 28 "Impairment of Assets" issued by Institute of
Chartered Accountants of India have been examined and on such
examination, it has been found that none of the indicators are present
in the case of the company. A formal estimate of the recoverable amount
has not been made as there is no indication of a potential impairment
loss.
11. Segment Information as required by Accounting Standard (AS)-17 on
Segment Reporting issued by the Institute of Chartered Accountants of
India is disclosed hereunder :- The company has identified two
reportable segments viz; Iron & Steel Products & Textile Products.
12. Previous Year figures have been regrouped/rearranged wherever
considered necessary to make them comparable with current year figures.
12. Annexure A to U form an integral part of the Balance Sheet and
Profit & Loss Account and have been duly authenticated.
13. Additional Information as required by Schedule VI to the Companies
Act, 1956.
Includes 2647.230 MT (3110.350 MT) by products viz Runner & Risers and
end cutting produced during the year, of which 1948.190 MT (2626.710
MT) has been used for re-melting and 591.510 MT (415.040 MT) has been
sold. It also includes 3519.900 MT (9165.920 MT) of ingots transferred
to floor for production of Rounds and Wire Rod. Further, 507.380 MT
(932.495 MT) Ingot Mould transferred to floor for self consumption and
207.000 MT (508.445 MT) rejected ingots moulds received back from floor
has been re-melted.