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Notes to Accounts of Gujarat Sidhee Cement Ltd.

Mar 31, 2015

1 The amount of expenditure on Corporate Social Responsibility (CSR) activities is Rs. 36.04 lacs which includes Rs. 9.21 lacs Capital Expenditure.

2 Hon'ble Appellate Authority for Industrial and Financial Reconstruction (AAIFR) vide its order dated 23.10.2012 inter-alia upheld the order of the Board for Industrial and Financial Reconstruction (BIFR) dated 15.02.2011 holding that the company's net worth has turned positive as on 31.3.2010 and consequent thereto, the company had been discharged from the purview of BIFR. However, in the said order, Hon'ble AAIFR had also held that even after the discharge of the company from the purview of Sick Industrial Companies (Special Provisions) Act, 1985 (SICA) on its attaining positive net worth, the jurisdiction of BIFR under section 18(12) to monitor periodically the implementation of the provisions of the sanctioned scheme and also u/s 18(9) for removing the defects in giving effect to the provisions of the sanctioned scheme is not taken away. AAIFR further held that BIFR can also entertain the proposal for modification of the scheme if it so warranted during implementation of the scheme and remanded the matter to BIFR with direction to consider modified draft revival scheme (MDRS).

Hon'ble BIFR vide its order dated 6.12.2012 issued on 16.1.2013 sanctioned the MDRS of the company inter-alia consisting of following main points :

(i) Reduction of paid up capital by 75%.

(ii) Fresh infusion of equity capital of Rs. 5,000 lacs (inclusive of balance of share capital amounting to Rs. 851 lacs which had remained to be brought in by the promoters under the sanctioned scheme of 2002) consisting of 500 lacs equity shares of Rs. 10/- each at par to the Promoters, associates etc.

(iii) To complete the jetty at revised cost of Rs. 5,972 lacs.

In compliance to the aforesaid order, the Company's paid up Share Capital was reduced by 75% (Seventy five percent). Further, the promoters have brought in Rs. 3,500 lacs towards fresh equity share capital for cash at par up to March 31, 2015.

3 (a) related Parties disclosure:

(a) Promoter companies together with its subsidiaries and associate companies holding more than 20% of the Equity Capital :

1 Ria Holding Ltd.*

2 Pranay Holding Ltd.*

3 Reeti Investment Ltd.*

4 Prachit Holding Ltd.*

5 Sumaraj Holding Pvt. Ltd.

6 Sunnidhi Trading Pvt. Ltd.

7 Shree Anandeya Investment Pvt. Ltd.

8 Sameta Export Pvt. Ltd.

9 Pallor Trading Company Pvt. Ltd.

10 The Arj Investments Limited

11 Treasurer's Trading Limited

12 Gujarat Industrial Investment Corp. Ltd.

13 Industrial Construction Limited

14 Samja Maurtius Limited

15 Bhadra Consultancy Private Limited

16 Mehta Investments Pte Limited

*10,35,912 shares held as security by a bank in bank's name for financial assistance granted.

(b) Subsidiary Company:

Villa Trading Company Private Limited

(c) Name of Key Management Personnel :

1 Mr. Jay Mehta - Executive Vice Chairman

2 Mr. M. S. Gilotra - Managing Director

(d) Name of a company in which policies are controlled by common key management personnel:

Saurashtra Cement Limited

4 The Company has only one business segment 'Cement / Clinker' as primary segment.

5 The Company has revised depreciation rate on fixed assets as per the useful life specified in Schedule II to the Companies Act, 2013 or assessed by the Company. Based on current estimates, depreciation of Rs. 157.99 lacs on account of assets whose useful life has already exhausted as on April 1, 2014 has been added to depreciation for the year ended March 31, 2015.

Had there not been any change in useful life of assets, depreciation for the year ended March 31, 2015 would have been lower by Rs. 286.33 lacs, if the same rate of depreciation would have been followed.

6 The previous year's figures have been regrouped / rearranged so as to conform to the current year's figures.


Mar 31, 2014

For the year ended For the year ended March 31, 2014 March 31, 2013 In Lacs In Lacs 1 Contingent liabilities and commitments

(to the extent not provided for)

(a) Contingent liabilities

(i) Claims against the company not acknowledged as debt 807.18 807.18

(ii) Other money for which the company is contingently liable - Matter under dispute

- Excise duty 55.53 55.53

- Customs 261.39 37.09

- Service Tax 472.20 540.32

- Rajasthan Sales Tax 24.73 24.73

- Gujarat Sales Tax 112.94 112.94

- Gujarat VAT 311.84 311.84

- Income-tax 1,226.03 1,247.06

- Octroi 140.98 140.98

(b) Commitments

(i) Estimated amount of contracts remaining to be executed on capital 143.01 1,816.04 account and not provided for (net of advances of 20.80 lacs; previous year 84.54 lacs)

(ii) Uncalled liability on partly paid debentures 6,650.00 Nil

2 Hon''ble Appellate Authority for Industrial and Financial Reconstruction (AAIFR) vide its order dated 23.10.2012 inter-alia held that the company''s net worth has turned positive as on 31.3.2010 and consequent thereto, the company has been discharged from Board for Industrial and Financial Reconstruction (BIFR). However, in the same order, Hon''ble AAIFR has reiterated its decision in M/s.Kunal Virenchee Sagar case holding that the BIFR''s jurisdiction continues un-interrupted and the BIFR is competent to exercise its jurisdiction under Section 18(5) of Sick Industrial Companies (Special Provisions) Act, 1985 (SICA) and remanded the matter to BIFR.

Hon''ble BIFR vide its order dated 6.12.2012 issued on 16.1.2013 sanctioned the Modified Draft Rehabilitation Scheme of the company inter-alia consisting of following main points :

(i) Reduction of paid up capital by 75%.

(ii) Fresh infusion of equity capital of Rs. 50 crores consisting of 5 crore equity shares of Rs. 10/- each at par to the Promoters, associates etc.

(iii) To complete the jetty at revised cost of Rs. 59.72 crores.

In compliance to the aforesaid order, in the year 2012-13 the Company''s paid up Share Capital was reduced by 75% (Seventy five percent) from Rs. 1,44,61,54,080/- consisting of 14,46,15,408 fully paid up Equity Shares of Rs. 10/- each to Rs. 36,15,38,520/- consisting of 3,61,53,852 fully paid up Equity Shares of Rs. 10/- each as at 25.2.2013, being the Record Date. The amount of reduction in capital of Rs. 10,846.16 lacs was adjusted towards accumulated losses of Rs. 3,924.48 lacs as on 31.3.2012 and balance amount of Rs. 6,921.68 lacs was credited to Capital Reserve account. During the year, the promoters have brought in Rs. 500 lacs equity share capital at par.

3 (A) Related Parties Disclosure:

(a) Promoter companies together with its subsidiaries and associate companies holding more than 20% of the Equity Capital :

1 Ria Holdings Ltd.*

2 Pranay Holdings Ltd.*

3 Reeti Investments Ltd.*

4 Prachit Holdings Ltd.*

5 Sumaraj Holdings Pvt. Ltd.

6 Sunnidhi Trading Pvt. Ltd.

7 Shree Anandeya Investment Pvt. Ltd.

8 Sameta Export Pvt. Ltd.

9 Pallor Trading Company Pvt. Ltd.

10 The Arj Investments Limited

11 Treasurer''s Trading Limited

12 Gujarat Industrial Investment Corp. Ltd.

13 Industrial Construction Limited (holding company of Sr. No. 9)

14 Samja Maurtius Limited (holding company of Sr. No. 10)

15 Bhadra Consultancy Private Limited

*10,35,912 shares held as security by a bank in bank''s name for financial assistance granted.

(b) Subsidiary Company:

Villa Trading Company Private Limited

(c) Name of Key Management Personnel :

1 Mr. Jay Mehta Executive Vice Chairman

2 Mr. M. S. Gilotra Managing Director

(d) Name of a company in which policies are controlled by common key management personnel: Saurashtra Cement Limited

4 The Company has only one business segment ''Cement / Clinker'' as primary segment.

5 The previous year''s figures have been regrouped / rearranged so as to conform to the current year''s figures.


Mar 31, 2013

1 Deferred Tax Liabilities / Assets

In accordance with Accounting Standard 22 "Accounting for Taxes on Income" notified under the Companies (Accounting Standards) Rules, 2006, the company has reviewed its Deferred Tax Liabilities (DTL) and Deferred Tax Assets (DTA) upto March 31, 2013.

2 (a) Hon''ble Appellate Authority for Industrial and Financial Reconstruction (AAIFR) vide its order dated 23.10.2012 inter-alia held that the company''s net worth has turned positive as on 31.3.2010 and consequent thereto, the company has been discharged from Board of Industrial and Financial Reconstruction (BIFR). However, in the same order, Hon''ble AAIFR has reiterated its decision in M/s.Kunal Virenchee Sagar case holding that the BIFR''s jurisdiction continues un-interrupted and the BIFR is competent to exercise its jurisdiction under Section 18(5) of Sick Industrial Companies Act (SICA) and remanded the matter to BIFR.

Hon''ble BIFR vide its order dated 6.12,2012 issued on 16.1.2013 sanctioned the Modified Draft Rehabilitation Scheme of the company inter-alia consisting of following main points :

(i) Reduction of paid up capital by 75%.

(ii) Fresh infusion of equity capital of Rs. 50 crores consisting of 5 crore equity shares of Rs. 10/- each at par to the Promoters, associates etc.

(iii) To complete the jetty at revised cost of Rs. 59.72 crores.

In compliance with the aforesaid order, the Company''s paid up Share Capital was reduced by 75% (Seventy five percent) from Rs. 144,61,54,080/- consisting of 14,46,15,408 fully paid up Equity Shares of Rs. 10/- each to Rs. 36,15,38,520/- consisting of 3,61,53,852 fully paid up Equity Shares of Rs. 10/- each as at 25.2.2013, being the Record Date. The amount of reduction in capital of Rs. 10846.16 lacs has been adjusted towards accumulated losses of Rs. 3924.48 lacs as on 31.3.2012 and balance amount of Rs. 6921.68 lacs is credited to Capital Reserve account.

(b) The Government of Gujarat filed the Letters Patent Appeal (LPA) before the Hon''ble High Court of Gujarat and have claimed an amount of Rs. 346.02 crores in respect of interest and penal interest on dues to them. The decision is still pending and no interim relief has been granted by the Hon''ble High Court. In view of this, no provision has been made in respect thereof. Subsequently, the Industries & Mines Department, Government of Gujarat, vide Government Resolution dated 25th June 2012 conveyed that HPC meeting held on 3.1.2012 has decided to withdraw the LPA filed before the High Court of Gujarat against the company. However, the same has not been formally withdrawn.

3 Related Parties Disclosure:

(a) Promoter companies together with its subsidiaries and associate companies holding more than 20% of the Equity Capital:

1) Ria Holding Ltd.*

2) Pranay Holding Ltd.*

3) Reeti Investment Ltd.*

4) Prachit Holding Ltd.*

5) Sumaraj Holding Pvt. Ltd.*

6) Villa Trading Company Pvt. Ltd.

7) Sunnidhi Trading Pvt. Ltd.

8) Shree Anandeya Investment Pvt. Ltd.

9) Sameta Export Pvt. Ltd.

10) Pallor Trading Company Pvt. Ltd.

11) The Mehta International Ltd.

12) The Arj Investments Limited

13) Hopgood Investments Ltd.

14) Treasurer''s Trading Limited

15) Gujarat Industrial Investment Corp. Ltd.

16) Industrial Construction Limited (holding company of Sr. No. 9)

17) Sampson Limited (holding company of Sr, No. 6)

18) Clarence Investments Limited (subsidiary of Sr. No. 11)

19) Glenn Investments Limited (subsidiary of Sr. No. 11)

20) Aber Investment Limited (subsidiary of Sr. No. 11)

21) Monza Limited (subsidiary of Sr. No. 11)

22) Samja Maurtius Limited (holding company of Sr. No. 12)

*10,35,912 shares held as security by a bank in bank''s name for financial assistance granted.

4 The Company has only one business segment ''Cement / Clinker'' as primary segment.

5 The previous year''s figures have been regrouped / rearranged so as to conform to the current year''s figures.


Mar 31, 2012

1 Deferred Tax Asset

In accordance with Accounting Standard 22 "Accounting for Taxes on Income" notified under the Companies (Accounting Standard) Rules, 2006, the company has reviewed its Deferred Tax Assets (DTA) recognized upto 31st March, 2012 and has also, in terms of paragraphs 15 to 18 of AS 22, examined the issue of recognizing DTA arising during the year on account of unabsorbed depreciation and carry forward losses. The financial projections of the company have been submitted to Hon'ble AAIFR as a part of Rehabilitation Scheme. Having regard to this and also considering the present market scenario of the Company's products, the Management expects that the Company will have sufficient taxable income as envisaged in the Financial projections against which aggregate DTA recognized as on balance sheet date would be realised.

Accordingly the Company has computed Deferred Tax Assets of Rs 2237.52 Lacs and Deferred Tax Liabilities of Rs 934.15 Lacs as on 31st March, 2012 on the following items of timing differences :

For the year For the year 2011-12 2010-11

2 Contingent liabilities and commitments Rs In Lacs Rs In Lacs (to the extent not provided for)

a) Contingent liabilities

(i) Claims against the company not acknowledged as 974.97 1,341.38 debt

(ii) Other money for which the company is contingently liable - Matter under dispute

- Excise duty 38.00 38.00

- Customs 41.75 37.09

- Service Tax 1,358.54 860.74

- Rajasthan Sales Tax 24.73 24.73

- Gujarat Sales Tax 138.55 138.55

- Gujarat VAT 311.84 224.59

- Income-tax TDS 29.31 1.30

- Octroi 51.90 51.90

b) Commitments

i) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances of Rs. 166.72 lacs previous year Rs. 172.06 lacs) 185.71 111.87

(ii) Other commitments Nil Nil

3 (a) Rehabilitation Scheme sanctioned by Hon'ble Appellate Authority for Industrial and Financial Reconstruction

(AAIFR) vide its order dated 21.11.2002 is under implementation and the proceedings under the provisions of Sick Industrial Companies (Special Provisions) Act, 1985 are pending.

The Hon'ble AAIFR directed the BIFR to sanction the Modified Draft Rehabilitation Scheme recommended by the Operating Agency. However, Hon'ble BIFR discharged the company from its purview on the ground that the company's net worth has turned positive and the scheme has been substantially implemented.

Aggrieved by the said order, the company has filed an appeal before the Hon'ble AAIFR stating that the construction of jetty, which is a critical element for the sustained viability of the company, remains pending. The order for the said appeal is awaited.

b) The Government of Gujarat filed the Letters Patent Appeal before the Hon'ble High Court of Gujarat and have claimed an amount of Rs 346.02 crores in respect of interest and penal interest on dues to them. The decision is still pending and no interim relief has been granted by the Hon'ble High Court. In view of this, no provision has been made in respect thereof.

4 In view of the carried forward losses and unabsorbed depreciation under the Income tax Act, 1961, no provision for Income-tax is made.

5 Related Parties Disclosure:

a) Promoter companies together with its subsidiaries and associate companies holding more than 20% of the Equity Capital :

1) Ria Holdings Ltd.*

2) Pranay Holdings Ltd.*

3) Reeti Investments Ltd.*

4) Prachit Holdings Ltd.*

5) Sumaraj Holdings Pvt. Ltd.*

6) Villa Trading Company Pvt. Ltd.

7) Sunnidhi Trading Pvt. Ltd.

8) Shree Anandeya Investment Pvt. Ltd.

9) Sameta Export Pvt. Ltd.

10) Pallor Trading Company Pvt. Ltd.

11) The Mehta International Ltd.

12) The Arj Investments Limited

13) Hopgood Investments Ltd.

14) Treasurer's Trading Limited

15) Gujarat Industrial Investment Corp. Ltd.

16) Industrial Construction Limited (holding company of Sr. No. 9)

17) Sampson Limited (holding company of Sr. No. 6)

18) Clarence Investments Limited ( subsidiary of Sr. No. 11)

19) Glenn Investments Limited (subsidiary of Sr. No. 11)

20) Aber Investment Limited (subsidiary of Sr. No. 11)

21) Monza Limited (subsidiary of Sr. No. 11)

*41,43,650 shares held as security by a bank for financial assistance granted.

6 The Company has only one business segment 'Cement / Clinker' as primary segment.

7 Till the year ended March 31, 2011, the company was using pre-revised Schedule VI to the Companies Act, 1956 for preparation and presentation of its financial statements. During the year ended March 31, 2012, the revised Schedule VI notified under Companies Act 1956, has become applicable to the company. The company has reclassified previous year figures to confirm to this year's classification. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it significantly impacts presentation and disclosures made in the financial statements, particularly presentation of balance sheet.


Mar 31, 2011

1. a. Rehabilitation Scheme sanctioned by Honble Appellate Authority for Industrial and Financial Reconstruction

(AAIFR) vide its order dated 21.11.2002 is under implementation and the proceedings under the provisions of Sick Industrial Companies (Special Provisions) Act, 1985 are pending.

b. The Government of Gujarat filed the Letters Patent Appeal before the Honble High Court of Gujarat and have claimed an amount of Rs. 346.02 crores in respect of interest and penal interest on dues to them. The decision is still pending and no interim relief has been granted by the Honble High Court. In view of this,-no provision has been made in respect thereof.

2. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. 148.40 lacs (Previous year Rs. 87.30 lacs).

3. Contingent liabilities not provided for in respect of:

For the For Eighteen Year ended months ended March 31,2011 March 31, 2010 Rs. In lacs Rs. In lacs

i. Matters under disputes / appeals : Excise 38.00 38.00

Customs 37.09 37.09

Service Tax 1298.74 993.92

Sales tax

- Rajasthan Sales tax 24.73 24.73

- Gujarat Sales tax 138.55 138.55

- Gujarat VAT 224.59 -

Income Tax-TDS 1.30 -

ii. Claims against the company not acknowledged as debt 1341.38 1,046.06

4. Local Gram Panchayat in earlier years had raised demands for octroi duty aggregating to Rs. 51.90 lacs. The Company has deposited an amount of Rs. 43.85 lacs with civil court, Veraval as per the order of the Honble High Court. No provision has been made for this demand for octroi duty as the Company has preferred appeals.

5. a. Sundry creditors in Schedule 7 to the Accounts include Rs. NIL due to creditors registered with the Micro,

Small and Medium Enterprises Development Act, 2006 (MSME).

b. No interest is paid / payable during the year to Micro, Small and Medium Enterprises.

c. The above information has been determined to the extent such parties could be identified on the basis of information available with the Company regarding the status of suppliers under the MSME.

6. In view of the losses and unabsorbed depreciation under the Income tax Act, 1961, no provision for Income-tax is made.

7. Remuneration paid / payable to whole time directors :

b. Provision of incremental gratuity liability for the current year in respect of the above directors has not been considered above, since the provision is based on an actuarial valuation for the Company as a whole.

10. Related Parties Disclosure:

A. Promoter companies together with its subsidiaries and associate companies holding more than 20% of Equity Capital :

1 Ria Holdings Ltd.*

2 Pranay Holdings Ltd.*

3 Reeti Investments Ltd.*

4 Prachit Holdings Ltd.*

5 Sumaraj Holding Pvt. Ltd.*

6 Villa Trading Company Pvt. Ltd.

7 Sunnidhi Trading Pvt. Ltd.

8 Shree Anandeya Investment Pvt. Ltd.

9 Sameta Export Pvt. Ltd.

10 Pallor Trading Company Pvt. Ltd.

11 The Mehta International Ltd.

12 The Arj Investments Limited

13 Euro India Investments Ltd.

14 Exchange Management Ltd.

15 Hopgood Investments Ltd.

16 Treasurers Trading Limited

17 Gujarat Industrial Investment Corp. Ltd.

18 Saurashtra Cement Limited (holding company of Sr. No. 1 to 4)

19 Industrial Construction Limited (holding company of Sr. No. 9)

20 Sampson Limited (holding company of Sr. No. 6)

21 Clarence Investments Limited ( subsidiary of Sr. No. 11)

22 Glenn Investments Limited (subsidiary of Sr. No. 11)

23 Aber Investment Limited (subsidiary of Sr. No. 11)

24 Monza Limited (subsidiary of Sr. No. 11)

*41,43,650 shares held as security by a bank for financial assistance granted.

B. Name of Key Management Personnel :

1 Mr. Jay Mehta Executive Vice Chairman

2 Mr. M. S. Gilotra Managing Director

3 Mr. R. K. Poddar Dy. Managing Director (Upto 13th September, 2010)

D. i. Name of the transacting related party : Saurashtra Cement Limited

ii. Description of the relationship between the parties : Common Key Management Personnel

11. In accordance with Accounting Standard 22 "Accounting for Taxes on Income" notified under the Companies Accounting Standard Rules, 2006, the company has reviewed its Deferred Tax Assets (DTA) recognized upto 31st March, 2011 and has also, in terms of paragraph 15 to 18 of AS 22, examined the issue of recognizing DTA arising during the year on account of unabsorbed depreciation and carry forward losses. The financial projections of the company have been submitted to Honble AAIFR as a part of Rehabilitation Scheme. Having regard to this and also considering the present market scenario of the Companys products, the Management expects that the Company will have sufficient taxable income as envisaged in the Financial projections against which aggregate DTA recognized as on balance sheet date would be realised.

13. The Company has only one business segment Cement / Clinker as primary segment.

14. a. The aggregate sum of Rs. 247.23 lacs was spent towards a project reflected under Capital Work-in-progress

(CWIP) inter alia, included therein cost of consultancy relating to project viability and mobilisation expenses for civil work to be carried out and pre-operative expenses. However, later on due to non- disbursal of loans by lenders and insufficient internal accrual, the project could not be pursued. Therefore, an impairment loss of Rs. 247.23 lacs as required under Accounting Standard 28 on "Impairment of Assets" is recognised in the Profit and Loss Account and reflected as a seperate line item. Considering the present situation there is no value in use for the project.

b. In the earlier years certain modification in Preheater plant was abandoned and consequently an impairment loss of Rs. 418.47 lacs was recognised. During the year the same project was revived and completed and therefore, impairment loss of Rs. 418.47 lacs has been reversed and credited to Profit and Loss Account.

c. The net effect of Rs. 171.24 lacs of impairment gain on reversal and provision is included in Profit and Loss Account.

15. Current years figures have been rearranged, regrouped and / or reclassified, wherever necessary. The figures of the current year are for the twelve months, and hence are not comparable with those of previous period, which is for eighteen months.


Mar 31, 2010

1. General:

Accounting policies not specifically referred to are consistent with generally accepted accounting practice.

1. a The Company is resistered as a sick company with The Board for Industrial & Financial Reconstruction (BIFR) under

The Sick Industrial Companies (Special Provisions) Act, 1985. The Honble Appellate Authority for Industrial S> Financial Reconstruction (AAIFR) has sanctioned a rehabilitation scheme resting with its order dated 21st November, 2002 envisaging various reliefs and concessions from Government of Gujarat, Financial Institutions and Consortium of banks, which is still under implementation.

b The Government of Gujarat filed the Letters Patent Appeal before the Honble High Court of Gujarat and also filed a claim of Rs. 346.02 crores in respect of interest and penal interest on dues to them with the Honble High court. The decision is still pending and no interim relief has been granted by the Honble High Court. In view of this, no provision has been made in respect thereof. In case the matter is decided against the Company, the net worth of the Company would be lower by the said amount.

2. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. 87.30 lacs (Previous year Rs. 155.60 lacs).

3. Contingent liabilities not provided for in respect of:

a Demand of Excise & Customs and Cenvat Credit of Rs. 1069.01 lacs (Previous year Rs. 845.61 lacs).

b Claims against the company not acknowledged as debt Rs. 1046.06 lacs (Previous years Rs. 900.18 lacs).

c Demand of Rajasthan Sales Tax of Rs. 24.73 lacs (Previous year Rs. 24.73 lacs).

d Demand of Gujarat Sales Tax of Rs. 138.55 lacs (Previous year Rs. 116.89 lacs).

4. Local Gram Panchayat in earlier years had raised demands for octroi duty aggregating to Rs.51.90 lacs. The Company has deposited an amount of Rs. 43.85 lacs as per the order of the Honble High Court. No provision has been made for this demand for octroi duty as the Company has preferred appeals.

5. a Sundry creditors in Schedule 7 to the Accounts include Rs. 0.59 lacs due to creditors registered with the Micro, Small and Medium Enterprises Development Act, 2006 (MSME).

b No interest is paid / payable during the year to Micro, Small and Medium Enterprises.

c The above information has been determined to the extent such parties could be identified on the basis of information available with the Company regarding the status of suppliers under the MSME.

6. The Company has been advised that in view of carried forward losses under the Income Tax Act, 1961, no provision is required to be made for Income Tax and also the Company is not liable for payment of Minimum Alternate Tax (MAT) under Section 115 JB of the Income tax Act, 1961 in view of the deduction available of amount of profits of a sick company under Section 115JB2(viii).

7. Information pursuant to provisions of para 3,4 (C) and 4 (D) of part II of schedule VI to the Companies Act, 1956.

8. The disclosures required under Accountins Standard 15 "Employee Benefits" notified in the Companies (Accounting Standards) Rules 2006, are given hereunder.

The Companys gratuity plan and PL Encashment are not funded. The following table sets out the status of the gratuity plan and PL Encashment as required under AS 15 and the reconciliation of opening balances of the present value of the defined benefit obligation.

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

Amount of Gratuity has been provided but not funded as on 31.03.2010.

9. Related Parties Disclosure:

a) Promoter companies together with its subsidiaries and associate companies holding more than 20% of the Equity Capital:

1. Ria Holdings Ltd.*

2. Pranay Holdings Ltd.*

3. Reeti Investments Ltd.*

4. Prachit Holdings Ltd.*

5. Sumaraj Holding Pvt. Ltd.*

6. Villa Trading Company Pvt. Ltd.

7. Sunnidhi Trading Pvt. Ltd.

8. Shree Anandeya Investment Pvt. Ltd.

9. Sameta Export Pvt. Ltd.

10. Pallor Trading Company Pvt. Ltd.

11. The Mehta International Ltd.

12. The Arj Investments Limited

13. Euro India Investments Ltd.

14. Exchange Management Ltd.

15. Hopgood Investments Ltd.

16. Treasurers Trading Limited

17. Gujarat Industrial Investment Corp. Ltd.

18. Saurashtra Cement Limited (holding company of Sr. No. 1 to 4)

19. Industrial Construction Limited (holding company of Sr. No. 9)

20. Sampson Limited (holding company of Sr. No. 6)

21. Clarence Investments Limited (subsidiary of Sr. No. 11)

22. Glenn Investments Limited (subsidiary of Sr. No. 11)

23. Aber Investment Limited (subsidiary of Sr. No. 11)

24. Monza Limited (subsidiary of Sr. No. 11)

*41,43,650 shares held as security by a bank for financial assistance granted.

b) Name of Key Management Personnel:

1 Mr. Jay Mehta Executive Vice Chairman

2 Mr. M. S. Gilotra Managing Director

3 Mr. Raj K. Poddar Dy. Managing Director

c) Particulars of remuneration paid to all Key Management Personnel are given in note No. 8.

d) (i) Name of the transacting related party : Saurashtra Cement Limited

(ii) Description of the relationship between the parties : Common Key Management Personnel

(iii) Particulars of transactions are disclosed in aggregate value for the period / year

10. In accordance with Accounting Standard 22 Accounting for Taxes on Income" notified under the Companies Accounting Standard Rules, 2006, the company has reviewed its Deferred Tax Assets (DTA) recognized upto 31st March, 2010 and has also, in terms of paragraph 15 to 18 of AS 22, examined the issue of recognizing DTA arising during the year on account of unabsorbed depreciation and carry forward losses. The financial projections of the company have been evaluated by State Bank of India, the Operating Agency. Having regard to this and also considering the present market scenario of the Companys products as well as profits earned during the period, the Management expects that the Company will have sufficient taxable income as envisaged in the Financial projections against which aggregate DTA recognized as on balance sheet date would be realised.

Accordingly the Company has computed Deferred Tax Assets of Rs. 2497.58 Lacs and Deferred Tax Liabilities of Rs. 877.59 Lacs as on 31st March, 2010 on the following items of timing differences :

11. Earning Per Share:

12. The Company has only one business segment Cement./ Clinker as primary segment. The secondary segment is geographical segment which is given below.-

13 a. The Current Accounting Period has been extended from September ending to March ending consisting of 18 months period.

b. Previous years figures have been regrouped and / or rearranged wherever necessary to make them conform with current year classification.



 
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