Mar 31, 2022
a) The concentration of credit risk on trade receivable is limited due to the fact that the customer base is large and is unrelated to each other.
b) No trade receivable is due from directors & other officers of the Company either singly or severely with any other person or firm or private companies in which any director is interested as partner/ director.
c) The Company has assessed the risk of recovery from trade receivable arising on account of Pandemic Covid-19 and based on its assessment, the management of company do not foresee any impact on realisability of Trade receivable and is of the view that allowance for Expected credit loss created is sufficient and no further provisioning on this account is necessitated.
(d ) Term/ rights attached to equity shares
The Company has only one class of equity shares having a par value of '' 10/- Per Share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
The repayment of Equity share capital in the event of Liquidation and buy back of Shares are possible subject to prevalent regulations. In the event of Liquidation, normally the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amount, in proportion of shareholding.
The Company has not allotted any fully paid up shares pursuant to contract(s) without payment being received in cash. The Company has neither allotted any fully paid up shares by way of bonus shares nor has bought back any class of shares during the period of five years immediately preceding the balance sheet date.
(d) Dividend
The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in case of interim dividend. The remittance of dividends outside India is governed by Indian law on foreign exchange.
The amount of per share dividend recognized as distributions to equity shareholders during FY 2021-22 pertaing to FY 2020-21 amounted to '' 215.48 Lakhs have been shown as deduction from retained earning.
The Board of directors of the Company in their meeting held on 30th May, 2022 have proposed dividend of '' 1/- per share for the financial year ended 31st March, 2022 for the approval of shareholders.
(i) CCECL (Term Loan) from State Bank of India and Indian Bank are secured by way of Primary :
a) Extension of First pari passu charge by way of hypothecation charge on entire current assets (present and future)
of the Company.
Collateral
a. Extension of First pari passu charge by way of hypothecation charge on entire fixed assets (movable & immovable) of the Company both present & future including plant & machinery except vehicle financed by other banks.
b. Extension of First pari passu charge by way of equitable mortgage over factory land & building of the Company situated at A-1112 & A-1114, RIICO Industrial Area, Phase III, Bhiwadi Rajasthan and at E-538 & E-539A, RIICO Industrial Area, Chopanki, Rajasthan.
Guarantee :
a. Personal Guarantee of whole time directors.
(ii) Vehicle loans from Banks are secured by hypothecation of respective vehicle.
22.1 Working Capital Loan from State Bank of India and Indian Bank are secured by way of Primary :
a. First pari passu charge by way of hypothecation charge on entire current assets (present and future) of the Company. Collateral :
a. First pari passu charge by way of hypothecation charge on entire fixed assets (movable & immovable) of the Company both present & future including plant & machinery except vehicle financed by other banks.
b. First pari passu charge by way of equitable mortgage over factory land & building of the Company situated at A-1112 & A- 1114, RIICO Industrial Area, Phase III, Bhiwadi Rajasthan and at E-538 & E-539A, RIICO Industrial Area, Chopanki, Rajasthan.
a. Personal Guarantee of whole time directors.
22.2 The quarterly returns or statements of current assets filed by the Company with the banks are in agreement with the books of accounts of the Company.
b) The amount of interest due and payable for the year due to delay in making payment under Micro, Small and Medium Enterprise Development Act 2006 is '' 30.18 Lakhs (P.Y. '' 29.68 Lakhs).
c) Dues to Micro, Small and Medium Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors.
During the year the Company has contributed an amount of '' 2.50 Lakhs towards old age home and a rescue center set up by Earth Savior Foundation (NGO). (CSR Reg. No. : CSR00002026)
* Includes unspent amount on on-going project on Education & Skill development program and also medical facilities by Kamdhenu Jeevandhara Foundation amounting to '' 34.30 Lakhs for which provision for liability for the amount has been made as at 31st March, 2022 and is separately disclosed on ''âUnspent CSR Expenses" in other current financial liabilities in note no. 25 representing the extent to which the amount is to be transferred with in 30 days of end of financial year ended 31st March, 2022. The Company has since transferred unspent CSR expenses amount of '' 34.30 Lakhs to ''â Unspent CSR account- FY 2021-2022 on 22nd April, 2022 in compliance with provision of section 135 (6) of Companies Act, 2013.
*Demand of '' 912.64 Lakhs as penalty under Rule 26 of Central Excise Rules, 2002, at Kamdhenu Limited as Co-noticee in various matters out of which '' 8 Lakhs has been deposited under protest. All matters are pertaining to FY 2008-09 and appeal before CESTAT have been filed against each orders except order dated 22nd March, 2022 of '' 607.64 Lakhs which is under appeal filing process.
**Demand of '' 709.83 Lakhs has been determined under section143(3) of Income tax Act 1961 for A.Y. 2018-19 out of which '' 142.30 Lakhs has been deposited under protest and appeal is pending before National Faceless Appeal Centre (NFAC). **Demand of '' 3.39 has determined under section154 of Income tax Act 1961 for A.Y. 2019-20 out of which '' 0.70 Lakhs has been deposited under protest and appeal is pending before National Faceless Appeal Centre (NFAC).
a) Projected unit credit (PUC) actuarial method to assess the planâs liabilities allowing for retirements, deaths-in-service and withdrawals (Resignations / Terminations).
b) Under the PUC method a projected accrued benefit is calculated at the beginning of the period and again at the end of the period for each benefit that will accrue for all active members of the plan. The projected accrued benefit is based on the plan accrual formula and service as at the beginning and end of the period, but using memberâs final compensation, projected to the age at which the employee is assumed to leave active service. The plan liability is the actuarial present value of the projected accrued benefits as on the date of valuation.
The provision for leave encashment based on actuarial valuation has been included in provisions - current and non-current and does not require disclosure as mentioned in para 158 of Ind AS 19.
The Company makes contribution to Statutory Provident Fund in accordance with Employees Provident Funds and Miscellaneous Provisions Act 1952. This is the post employment benefit and is in the nature of defined contribution plan. The total amount contributed to provident fund during the financial year is '' 184.60 Lakhs (previous year '' 159.56 Lakhs) and is included in Note no. 34 " Employees Benefit expenses".
The Companyâs activities expose it to variety of financial risks viz. commodity price risk, credit risk, liquidity risk and capital risk. These risks are managed by the senior management of the Company supervised by the Board of Directors to minimize potential adverse effects on the financial performance of the Company.
i) Commodity Risk
Demand/supply risk are inherent in the prices of Ingot/Billet, the main raw material and also the prices of TMT bar, the main product in Steel segment. The requirement of raw material is sourced on spot basis so as to float with fluctuations in the market and to guard against price volatility. The Company has also linked its sales to raw material prices so that the Company has adequate cushion to protect its margin in the event of any increase/decrease in raw material costs. The main raw material in paint segment is Alkyd Resin/Titanium Dioxide and its prices fluctuates based on change in international crude oil prices. In Paints segment, the volatility in final product prices is dependent on market forces.
ii) Credit Risk
Credit risk from cash and cash equivalents and bank deposits is considered immaterial in view of the credit worthiness of the banks, the Company works with. The Company has specific policies for managing customer credit risk on an ongoing basis; these polices factor in the customerâs financial position, past experience and other customer specific factors. Financial assets are written off when there is no reasonable expectation of recovery, such as a debtor failing to engage in a repayment plan with the Company. The Company makes provision for doubtful debt or writes off when a debtor fails to make contractual payments based on provisioning matrix. When loans or receivables have either been provided for or written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. When recoveries are made, these are recognized in Statement of Profit and Loss. The Company has followed Expected Credit Loss (ECL) model to provide for provision for ECL allowance.
The Company do not envisage any financial difficulties resulting in additional credit risk higher than usual credit terms due to COVID-19 outbreak and allowance for expected credit loss is not estimated to exceed the amount already created in books of accounts. The Company has invested in Portfolio Management Scheme with reputed asset management company and do not foresee any credit risk.
iii) Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash and another financial asset. The Companyâs approach to managing liquidity is to ensure as far as possible that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed condition, without incurring unacceptable losses or risking damage to the Companyâs reputation.
The Companyâs objective is to maintain a balance between continuity of funding and flexibility through the use of surplus funds, bank overdrafts, bank loans. The Company considers liquidity risk as low risk.
Interest rate is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in interest rate. The Company has taken term loan and working capital limits from bank which has considered as variable rate borrowing.
The Companyâs policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business.
The Company monitors capital using gearing ratio which is net debt divided by total equity. The Companyâs net debts includes interest and non interest bearing loans less cash and bank balances.
Operating segments are established on the basis of those components that are evaluated regularly by the Management in deciding how to allocate resources and in assessing performance. The Company is principally engaged in two business segment viz., Steel and Paint.
The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with following additional policies for segment reporting:
a) Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and Expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as "Unallocable".
b) Segment Assets and Segment Liabilities represent Assets and Liabilities in respective segments. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as "Unallocable".
The Ministry of Corporate Affairs ( MCA ) through Companies ( Indian Accounting Standard) Amendment Rules 2019 and Companies ( Indian Accounting Standard) Second Amendment Rules has notified Ind AS 116 ''leasesâ which replaces existing lease standard, Ind AS 17 Leases and other Interpretation. Ind AS 116 sets out the principles for recognition, measurement, presentation and disclosure of leases for both lessees and lessors. It introduces a single on balance sheet lease accounting model for lessees.
The Company has adopted Ind AS 116 effective annual reporting period beginning from 1st April, 2019 and applied the standard to its leases retrospectively with the cumulative effect of initially applying the standard, recognised on the date of initial application (1st April, 2019). The cumulative effect of initially applying standard has been recognised as an adjustment to opening balance of retained earnings as on 1st April, 2019.
On application of Ind AS 116, the nature of expense has changed from lease rent in previous periods to depreciation cost for right of use asset and finance cost for interest accrued on lease liability.
Depreciation on right of use asset is '' 183.30 Lakhs and interest on lease liability for year ended 31st March, 2022 is '' 73.43 Lakhs Lease Contracts entered by the Company majorly pertains to building taken on lease to conduct the business activities in ordinary course.
The leases that the Company has entered with lessors towards properties used as corporate office/office are long term in nature and no changes in terms of those leases are expected due to Covid-19.
The Hon''ble National Company Law Tribunal, Chandigarh Bench, Chandigarh (''NCLT'') during the hearing held on 22nd April, 2022, has reserved the order on the Scheme of Arrangements (''Scheme'') including the De-merger of the Paint Business of the Company into a separate entity. The order is pending to be pronounced by the NCLT. Accordingly, no disclosure of accounting effect of such amalgamation and de-merger in the books of accounts of the Company has been made in the financial statements for the FY 2021-22.
The Company continues to monitor the impact of COVID 19 on its business including its impact on customers, supply chain etc. Due care has been exercised on significant accounting judgement and estimates including in relation to recoverability of receivables, inventory and other financial assets based on information available to date while preparing the Companyâs financial statements for the FY 2021-22.
Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under companies (Indian Accounting Standards) Rules as issued from time to time on 23rd March, 2022. MCA amended the companies (Indian Accounting Standards) Amendment Rules, 2022, as below
Ind AS 16- Property Plant and equipment- The amendment clarifies that excess of net sale proceeds of items produced over the cost of testing. If any, shall not be recognized in the profit or loss but deducted from the directly attributable costs considered as part of cost of an item of property, plant, and equipment. The effective date for adoption of this amendment is annual periods beginning on or after 1st April, 2022. The Company has evaluated the amendment and there is no impact on its financial statements.
Ind AS 37- Provisions, Contingent Liabilities and Contingent Assets- The amendment specifies that the "cost of fulfillingâ a contract comprises the ''costs that relate directly to the contract'', Costs that relate directly to a contract can either be incremental costs of fulfilling that contract (examples would be direct labor, materials) or an allocation of other costs that relate directly to fulfilling contracts (an example would be the allocation of the depreciation charge for an item of property, plant and equipment used in fulfilling the contract). The effective date for adoption of this amendment is annual periods beginning on or after 1st April, 2022, although early adoption is permitted, The Company has evaluated the amendment and there is no impact on the financial statement.
DISCLOSURE IN ACCORDANCE WITH REQUIREMENTS UNDER IND AS-10 EVENT AFTER THE REPORTING DATE:
The Board of Directors of the Company have recommended dividend of '' 1/- per share for the financial year ended 31st March, 2022 for the approval of shareholders. The actual dividend outgo will be dependent on share capital outstanding as on record date.
Previous years figures have been regrouped, rearranged or reclassified, whenever necessary to confirm the current yearâs classification.
Mar 31, 2018
RECONCILIATION NOTES
The Company has adopted Ind AS with effect from 1st April 2017 with comparatives figures being restated. Accordingly the impact of transition has been provided in the Opening Reserves as at 1st April 2016. The figures for the previous period have been restated, regrouped and reclassified wherever required to comply with the requirement of Ind AS and Schedule III.
Note 1: Fair value of Investments
Under the previous GAAP, investments in Equity Shares were classified as long-term investments or current investments based on the intended holding period and realisability. Longterm investments were carried at cost less provision for other than temporary decline in the value of such investments. Current investments were carried at lower of cost and fair value. Under Ind AS, these investments are required to be measured at fair value. The resulting fair value changes of these investments amounting to Rs. 20.29 Lakhs have been recognized in retained earnings (net of related deferred taxes of Rs.46.94 Lakhs) as at the date of transition and subsequently in the Other Comprehensive Income for the year ended 31st March, 2017
Note 2: Fair Value of Property, Plant and Equipments
The Company has elected to measure class of assets comprising Land, Building and Plant & Machinery at fair value on transition date and considered that fair value as deemed cost. The resulting fair value change of these class of Land, Building and Plant & Machinery amounting to Rs.2,797.94 Lakhs has been recognized in retained earnings (net of deferred taxes of Rs.1,048.47 Lakhs) as on date of transition. The depreciation impact on account of deemed carrying amount based on fair value amounting to Rs.225.52 Lakhs for the year ended 31st March, 2017 have been charged to the Statement of Profit and Loss for the year ended 31st March, 2017
Note 3: Dividend
As per Ind AS dividend is recognized only when it is approved by the shareholders and hence dividend provision of Rs.163.80 Lakhs together with tax on dividend of Rs.33.35 Lakhs (total Rs.197.15 Lakhs) proposed for the year ended 31st March, 2016 was reduced from provisions and added to the retained earnings in the opening balance as on 01st April, 2016.
Note 4: Expected Credit Loss
Under Indian GAAP, no provision for doubtful debts was made. Under Ind AS, impairment allowance has been determined based on Expected Credit Loss (ECL) model. Due to this model, the Company impaired its trade receivables by Rs.541.39 Lakhs as on transition date which has been adjusted as on 1st April, 2016 in retained earnings. The impairment of Rs.64.67 Lakhs for the year ended 31st March, 2017 has been recognized in trade receivables and Statement of Profit and Loss for the year ended 31st March, 2017.
Note 5: Dealer/ Distributor Deposits
The Company has received security deposits from its Dealers and Distributors under the Dealership Agreement at rates below the prevailing market rates. Under the Indian GAAP these Security Deposits were shown under long term liability. Under the Ind AS, these deposits have been revalued at fair value using the present value method using a discount rate which is market borrowing rate. An amount of '' 14.89 Lakhs was reduced from Deposit amount and charged to the Statement of Profit and Loss during the year ended 31st March, 2017.
Note 6: Prior Period Adjustment
An amount of Rs.0.34 Lakhs shown under prior period adjustment under Indian GAAP is added to profit after tax as on 31st March, 2017, under Ind AS it was charged to retained earnings as on 01st April, 2016.
Note 7: Defined Benefit Obligations
The actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets excluding amounts included in the net interest on the net defined benefit liability are recognized in balance sheet through other comprehensive income. Thus, employee benefit expenses are reduced by Rs.1.54 Lakhs and recognized in other comprehensive income gross of tax for the year ended 31st March, 2017
Note 8: Security Deposit Paid
Under IGAAP, interest free lease security deposits (that are refundable in cash on completion of the lease term) are recorded at their transaction value. Under Ind AS, all financial assets are required to be recognized at fair value. Accordingly the Company has fair valued these security deposits under Ind AS. Difference between the fair value and the transaction value of the security deposit has been recognized as prepaid rent. Consequent to this change, the security deposit reduced by Rs.1.32 Lakhs and charged to the Statement of Profit and Loss during the year ended 31st March, 2017.
Note 9: Rebate and Discounts
Under IGAAP rebate and discounts were shown as part of ''Other Expenses''. Under Ind AS, these are netted off from Sales. Accordingly, Revenue from Operations for the year ended 31st March, 2017 has been reduced by Rs.60.91 Lakhs with corresponding adjustment in Other Expenses.
Note 10: Other Comprehensive Income
Under previous GAAP, the Company has not presented Other Comprehensive Income (OCI) separately. Hence, the Statement of Profit and Loss under previous GAAP has been reconciled with Statement of Profit and Loss and Other Comprehensive Income as per Ind AS.
Note 11: Deferred Tax
Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP. This has resulted in increase in deferred tax liability (net) by Rs.814.16 Lakhs as on 01st April, 2016 as follows:
Note 12:
The transition from previous GAAP to Ind AS has not had a material impact on the statement of cash flows.
Note 13:
In line with the requirements of Ind AS, the Company has reclassified certain assets and liabilities as at 01st April, 2016 and 31st March, 2017. These majorly include reclassification between current and non-current investments, security deposits and prepayments, investments, current/ non current financial/ non financial assets/ liabilities.
Mar 31, 2016
1. Terms/rights attached to Equity Shares
The Company has only one class of equity shares having a par value of Rs.10/- Per Share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
During the year ended 31 st March 2016, the amount of proposed dividend recognized as distribution to equity shareholders is Re. 0.70 per equity share of Rs. 10each (Previous year Re. 0.70 per share).
The repayment of Equity share capital in the event of Liquidation and buy back of Shares are possible subject to prevalent regulations. In the event of Liquidation, normally the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amount, in proportion of shareholding.
The Company has not allotted any fully paid up shares pursuant to contract(s) without payment being received in cash. The Company has neither allotted any fully paid up shares by way of bonus shares nor has bought back any class of shares during the period of five years immediately preceding the balance sheet date.
2 Nature of Security of Term Loan from Bankand Financial institution:
#Term Loans from State Bank of Bikaner & Jaipur are secured by way of:
(a) Pari passu charge by way of hypothecation of stocks, book debts & Other current assets of the company, present & future.
(b) Pari passu charge over the movable and immovable assets including equitable mortgage of land & building at Plot No. A-1112&A-1114,RIA. Bhiwadi, Rajasthan & Plot no. E-538-539ARIA, Chopanki,Rajasthan & Personal guarantee of whole time directors.
* Vehicle loans from Banks are secured by hypothecation of respective vehicles.
Nature of Security of Short Term Borrowings:
#Working Capital Loan from Banks are secured by way of:
(a) Pari passu charge by way of hypothecation of stocks, book debts & Other current assets of the company, present & future.
(b) Pari passu charge over the movable and immovable assets including equitable mortgage of land & building at Plot No.A-1112 &A-1114,RIA. Bhiwadi, Rajasthan & Plot no. E-538-539A RIA, Chopanki, Rajasthan & Personal guarantee of whole time directors.
3. As per Accounting Standard-17 â Segment Reportingâ issued by ICAI, the Company has identified three reportable business segments viz. Steel, Power & Paints and following policies have been adopted for the segment reporting.
a) Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and Expenses which could not be allocable to a specific segment are being disclosed separately as un-allocable.
b) Segment Assets and Segment Liabilities represent assets and liabilities in respective segment. Investments, tax related assets, other assets and liabilities that cannot be allocated to a segment on a reasonable basis have been disclosed as ''Un-allocable''.
4. Disclosures in respect of Related Parties as per Accounting Standard 18 "Related Party Disclosures" issued by ICAI, with whom transactions were carried out in the ordinary course of business during the year as given below;
Mar 31, 2015
1. Terms/rights attached to Equity Shares
The Company has only one class of equity shares having a par value of
Rs.10/- Per Share. Each holder of equity shares is entitled to one vote
per share. The Company declares and pays dividends in Indian rupees.
The dividend proposed by the Board of Directors is subject to the
approval of the shareholders in the ensuing Annual General Meeting.
During the year ended 31st March 2015, the amount of per share dividend
recognised as distribution to equity shareholders is Re. 0.70 per
equity share of Rs. 10 each (Previous year Rs. Nil per share).
The repayment of Equity share capital in the event of Liquidation and
buy back of Shares are possible subject to prevalent regulations. In
the event of Liquidation, normally the equity shareholders are eligible
to receive the remaining assets of the company after distribution of
all preferential amount, in proportion of shareholding.
The Company has not allotted any fully paid up shares pursuant to
contract(s) without payment being received in cash. The Company has
neither allotted any fully paid up shares by way of bonus shares nor
has bought back any class of shares during the period of five years
immediately preceding the balance sheet date.
2. Nature of Security of Term Loan from Bank and Financial
institution:
# Term Loans from State Bank of Bikaner & Jaipur are secured by way of
:
(a) Pari passu charge by way of hypothecation of stocks, book debts &
Other current assets of the company, present & future.
(b) Pari passu charge over the movable and immovable assets including
equitable mortgage of land & building at Plot No. A- 1112 & A-1114,RIA.
Bhiwadi, Rajasthan & Plot no. E-538-539A RIA, Chopanki,Rajasthan &
Personal guarantee of whole time directors.
* Vehicle loans from Banks are secured by hypothecation of respective
vehicles.
## Term Loans from RIICO are secured by way of First pari passu charge
over the movable and immovable assets including equitable mortgage of
land & building at Plot No. A-1112 & A-1114,RIA. Bhiwadi, Rajasthan and
Personal guarantee of whole time directors.
#Working Capital Loan from Banks are secured by way of:
(a) Pari passu charge by way of hypothecation of stocks, book debts &
Other current assets of the company, present & future.
(b) Pari passu charge over the movable and immovable assets including
equitable mortgage of land & building at Plot No.A-1112 & A-1114,RIA.
Bhiwadi, Rajasthan & Plot no. E-538-539A RIA, Chopanki,Rajasthan &
Personal guarantee of whole time directors.
3. Contingent Liabilities and Commitments (to the extent not provided
for) (Amount in Rs.)
a. Contingent Liabilities
Particulars Year ended Year ended
31st March, 2015 31st March, 2015
(A) Claims against the company not
acknowledged as debt
- Central Excise & Service Tax 166,233,152 46,618,128
- Income Tax 1,827,000 8,921,000
- Sales Tax & Central Sales Tax 27,598,891 36,192,544
(B) Guarantees issued by Bank 4,300,000 4,520,000
199,959,04 96,251,672
b. Commitments
Estimated amount of contracts
remaining to be executed on capital
account and not provided for
(Net of advance) 3,128,134 1,989,593
3,128,134 1,989,593
TOTAL (a b) 203,087,177 98,241,265
4. Some of the balances of Trade Receivables, Trade Payables, advances
and Security deposits as on 31.03.2015 are subject to confirmation. The
company had initiated legal cases on some debtors for its recovery and
the same have been included to the extent of Rs.1,07,87,259/- in
outstanding for more than six months and Rs.2,15,09,264/- in other non
current assets. The management of the company is hopeful of favourable
decision on such legal cases, hence no provision for bad and doubtful
debts have been considered. Other payables under other long term
liabilities includes Rs.2,39,33,701/- of trade payables under
litigation.
5. In the opinion of the management, current & non current assets,
loans & advances have a value on realisation in the ordinary course of
business at least equal to the amount at which thay are stated in the
Balance Sheet.
6. Effective from 01.04.2014, the company has revised estimated useful
life of its fixed assets as per the Schedule II of the Companies Act
2013. Based on current estimates, after retaining the residual value,
the carrying amount of the fixed assets of Rs.53,46,251 (net of
deffered tax assets of Rs.28,29,445) on account of fixed assets whose
useful life has already exhausted as on 1st April, 2014 have been
adjusted to General Reserves. Had there not been any change in the
useful of life of the fixed assets, net depreciation for the year ended
31.03.2015 would have been lower by Rs. 55,32,096.
7. The gross amount required to be spent by the company on CSR during
the year worked out to be Rs.10,41,236 which is yet to be spent.
8. Disclosure of related parties and transaction with them:
Description of Relationship
Nature of Relationship Name of Related Party
Key Management Personnel Sh. Satish Kumar Agarwal, Chairman &
Managing Director
Sh. Sunil Kumar Agarwal, Whole Time
Director
Sh. Saurabh Agarwal, Whole Time
Director
Sh. Sachin Agarwal, Whole Time
Director
Sh. Harish Kumar Agarwal-Chief
Financial Officer
Sh. Jogeswar Mohanty-Company Secretary
Related Company M/s Kamdhenu Overseas Ltd.
9. As per Accounting Standard-28 " Impairment of Assets" issued by
ICAI, there are no indication of overall impairment in assets.
10. Previous year figures have been reclassified/ rearranged wherever
necessary.
Mar 31, 2014
1. Terms/rights attached to Equity Shares
The Company lias only one class of equity shares having a par value of
Rs. 10/- Per Share. Each holder of equity shares is entitled to one
vote per share. The Company declares aixj pays drvidends in Indian
rupees.The repayment of Equity share capital in the event of
Liquidation and buy back of Shares are possible subject to prevalent
regulations. In the event of Liquidation, normally the equity
shareholders are eligible to receive the remaining assets of the
company after distribution of all preferential amount, in proportion of
shareholding.
2. The Company has not allotted any fully paid up shares pursuant to
contracts) without payment being receded m cash. The Company has
neither allotted any fully paid up shares by way of bonus shares nor
has bought back any dass of shares during the period of frve years
immediately preceding the balance sheet date.
3. Nature of Security oi'Term Loan from Bank and Financial
institution:
-# Term Loans from State Bank of Bikaner & Jaipur are secured by way of
(a) Pbri passu charge by way of hypothecation of stocks, book debts &
Other current assets of the company, present & future.
(b) fari passu charge over the movable and immovable assets including
equitable mortgage of land & building at Plot No. A- IIl 2 &
A-1114.R1A. Bhiwadi, Rajasthan & Plot no. E-538-539A R1A. Chopanki.
Rajasthan & Personal guarantee of whole time directors.
# # Term Loans from Rl ICO are secured by way of.
(a) First pari passu charge over the movable and immovable assets
including equitable mortgage of land & building at Plot No. A-1 112 &
A- 1114.RIA. Bhrwadi, Rajasthan and Personal guarantee of whole time
directors.
*Vehicle loans from Banks are secured by hypothecation of respective
vehicles.
4. Some of the balances of Trade Receivaoles, Trade Payables, advances
and Security deposits as on 3 i .03.2014 are subject to confirmation.
The company had initiated legal cases on some debtors for its recovery
and the same have been included to the extent of Rs.97.87,786 in
outstanding for more than six months and Rs. i .91.37.711 in other non
current assets. The management of the company is hopeful of favourable
decision on such legal cases, hence no provision for bad and doubtful
debts have been considered. Other payables under other long term
liabilities includes Rs.2.39,33.701 of trade payables under litigation.
5. In the opinion of the management, current & non current assets,
loans & advances have a value on realisation in the ordinary course of
business at least equal to the amount at which thay are stated in the
Balance Sheet.
6. The Company has already initiated the process of obtaining copies
of memorandum fifed with the concerned authonty by entities falling
under the MSMED Act 2006. The Company has received copies of the said
memorandum as on date from few entities and outstanding amount against
these memorandums are NIL.
7. The company does not have any fund for gratuity and leave
encashment liability and same is accounted for as provision or. actunal
basis. The following table summarizes the components of net
benefitsy'expenses neconginsed in the statement of profit & loss and
balance sheet.
8. As per Accounting Standard-17 " Segment Reporting issued by ICAI,
the Company has identified three reportable business segments viz.
Steel, Power & Paints and following policies have been adopted for the
segment reporting.
a) Revenu and Expenses have been identified to a segment on the basis
of relationship to operating activities of the segment. Revenue and
Expenses which could not be allocate to a specific segment are being
disclosed separately as un-allocable.
b) Segment Assets and Segment Liabilities represent assets and
liabilities in respective segment. Investments, tax related assets,
other assets and liabilities that cannot be aflocated to a segment on a
reasonable basis nave been disclosed as " Un-allocable".
9. .As per Accounting Standard-18 "Related Party Disclosures' issued
by The Institute of Chartered Accountants of India, the disclosure of
transactions with the related parties as defined in the Accounting
Standard are given below:
Description of Relationship
Nature of Relationship Name of Related Party
Key Management Personnel Sh. Satsh Kumar Agarwal. Chairman &
Managing Director
Sh. Sum! Kumar Agarwal. Whole Time
Director
Sh. Saurabh Agarwal. Whole Time
Director
Sh. Sachin Agarwal. Whole Time
Director
Related Companies M/s Kamdhenu Overseas Ltd.
M/s Kamdhenu Nutrients Pvt Ltd.
M/s Somti Polymers Pvt. Ltd.
Mar 31, 2013
1. Contingent Liabilities and Commitments (to the extent not provided
for) lAmount in *:¦
a. Contingent Liabilities
(A) Cairns agains; the company not acknowledged as debt
- Ceniral Excise & Service Tax 42.160.&45 23.692.62S
- Income Tax 3,921,000 36.095.148
- Sales Tax & Central Sales Tax 37.542.436 38.494.436
{B) Guarantees Issued by Bank. 1.5 20.000 2.236.590
90,164,051
b. Commitments
Estimated amount of contracts
remaining to De executed an capital
account and not crowded
for ''Net of advance} 4.965.585 2.626.328
4,965.585 2,626.326
TOTAL (a b)
2. Some of the balances of Trade Receivables, Trade Payables,
advances and Security deposits as on 3 1.03.2013 and sub|ect
tdconfjiinatioo. Trade Receivables, outstanding for mere than six
months includes fts. 2,66,78,776 on w*nch legal cases have been
initiated for recovery by the company. The management of the company is
hopeful of favourable decision on such legal cases, hence no provision
for bad and doubtful debts have been considered.
3. In the opinion of the management, current & ncr> current assets,
toans a advances have a value on realisation In the ordinary course of
bus.ness at least equal io the amount at which thay are stated m the
Balance Sheet,
4. The Company has already initiated the process of obtaining copes
of memorandum filed with the concenied authority by entities falling
under the M5MED Act 2006. The Company has received copies of the sad
memorandum as on date from few entities and outstanding amount against
these memorandums are NIL,
5. The company does not have any fund for gratuity and leave
encashment liability and same is accounted for as provision on actural
basis, The following table summarizes thecomponentsofnet
benefits/expenses reconginsed ir.the statement of profit & toss and
balance sheet.
6. As per Accounting Stindand-1 7" Segment Reporting'' issued by iCfii,
the Company has identified three reportable bus-ness segments v
Expenses wfwch could noL be allocable to a specie segment are being
disclosed separately as un-allocable. b} Segment Assets and Segment
Liabilities represent assets and liabilities in respective segment.
Investments, tax related assets, other assets and liabilities mat
cannot be allocated to a segment on a reasonable basis have been
disclosed as" Un allocable",
7. As per Accounting Standard- IS '' Impairment of Assets" issued by
ICAI, there are no indication of overall impairment in assets.
8. Previous year Inures, have been reclassified,'' rearranged where ver
necessary.
Mar 31, 2012
1) Contingent liabilities:
(A) Claims against the company/disputed liabilities not acknowledged as
debts Rs in Lacs Rs in Lacs 2010-2011 2009-2010 a) Central Excise &
Service Tax 279.97 281.97 b) Income Tax 359.07 20.90 d) Sales Tax &
Central Sales Tax 366.53 366.53 Total 1,005.57 669.40
(B) Estimated amount of contracts remaining to be executed on capital
account and not provided for Rs.42.74 Lacs (Previous year Rs.328.55
Lacs) net of advances.
2) The company was subjected to search by the Directorate General of
Central Excise Intelligence (DGCEI), New Delhi during the financial
year ended 31.03.2009 and deposed a sum of Rs.100 Lacs under protest
which has been shown as "Excise Duty Deposed under Protest" in Loans &
Advances. Subsequently, the company has received a show cause notice
dated 09.05.2011 from the DGCEI, New Delhi for imposing excise duty
aggregating amount of Rs.4492 Lacs. The Company is in the process of
filing suitable reply of the alleged imposition of Excise duty and due
to pending adjudication of the show cause notice, liability on this
account has neither been considered nor disclosed in the accounts.
3) Some of the balances of sundry debtors, creditors, advances and
unsecured loans as on 31.03.2011 are subject to confirmation. Sundry
Debtors, outstanding for more than six months includes Rs.191.67 Lacs
on which legal cases have been initiated for recovery by the company.
The management of the company is hopeful of favourable decision on such
legal cases, hence no provision for bad and doubtful debts have been
considered.
4) In the opinion of the management, currents 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 in the Balance Sheet.
5) The Company has already initiated the process of obtaining copies of
memorandum filed with the concerned authority by entities falling under
the MSMED Act 2006. The Company has not received copies of the said
memorandum as on date from any such entity. In the absence of
information, the company is unable to identify units and as well as
furnish details required under the said Act.
6) The company does not have any fund for gratuity and leave encashment
liability and same is accounted for as provision.
7) Remuneration paid/payable to Managing/whole time directors during
the year was Rs.148.68 Lacs (Previous Year Rs.148.68 Lacs).
8) During the year, in terms of memorandum of settlement/arrangement
dated 14.03.2011 arrived at before the Hon'ble Delhi High Court,
Mediation & Conciliation Centre, The company has agreed to assign trade
mark of Kamdhenu Cement, cement bricks, cement tiles and cement sheets
only falling under Class-19 of the Trade Mark Rules,2002 for a total
sum of Rs.140 Lacs in favour of Kamdhenu Cement Limited. The said
revenue net of tax has been included in the "Royalty, Trademarks &
Others" of Schedule-13.
9) Royalty,Trademarks & Others comprises royalty of Rs. 1406.79 Lacs
(Previous Year Rs.1473.98 Lacs), Sale of Trademark of Rs.133.33 Lacs
(Previous Year NIL), Income from derivatives of Rs.79.09 Lacs (Previous
Year 105.03 Lacs) and priority dealership charges of Rs.1.16 Lacs
(Previous Year 21.46 Lacs).
10) During the year, the Company has undertaken modernisation program
at its Steel Plant with capital investment of Rs.545.20 Lacs in Plant &
Machinery which have since become operational from 25.03.2011.
11) Balance with Schedule Bank in Current Accounts includes Unpaid
Divident amount of Rs.2.33 Lacs and IPO Refund amount of Rs.2.62 Lacs
(Previous Year of Rs. 2.38 Lacs & Rs.2.62 Lacs respectively).
12) The Cash flow Statement has been prepared in accordance with the
requirements of Accounting Standard-3 "Cash Flow Statement" issued by
ICAI.
13) As per Accounting Standard-17 " Segment Reporting" issue business
segments viz. Steel, Power & Paints and following policies have been
adopted for the segment reporting.
a) Revenue and Expenses have been identified to a segment on the basis
of relationship to operating activities of the segment. Revenue and
Expenses which could not be allocable to a specific segment are being
disclosed separately as un-allocable.
b) Segment Assets and Segment Liabilities represent assets and
liabilities in respective segment. Investments, tax related assets,
other assets and liabilities that cannot be allocated to a segment on a
reasonable basis have been disclosed as "Un-allocable".
14) As per Account Standard-28 "Impairment of Assets" issued by ICAI,
there are no indication of overall
15) Additional information pursuant to provisions of paragraph 3 & 4 of
part II of Schedule VI of the Companies Act ,1956.
16) Value of Import on CIF basis in respect of Traded goods Rs.14.85
Lacs (Previous Year NIL).
17) Expenditure in Foreign Currency on Import of Traded goods Rs.13.55
Lacs (Previous Year NIL).
18) The previous year's figures have been reworked, regrouped,
rearranged and reclassified wherever necessary. Accordingly, amounts
and other disclosure for the preceding year are included as an integral
part of the current year financial statements and are to be read in
relation to the amounts and other disclosures relating to the current
year
Mar 31, 2010
1) Contingent liabilities:
(A) Claims against the company/disputed liabilities not acknowledged as
debts
Rs in Lacs Rs in Lacs
2009-2010 2008-2009
a) Central Excise & Service Tax # 281.97 123.65
b) Income Tax 20.90 20.90
d) Sales Tax & Central Sales Tax 366.53 97.64
Total 669.40 242.19
- Includes Rs.156.35 Lacs on account of show cause notices issued by
the Excise Department during the Financial Year 2009-10.
(B) Estimated amount of contracts remaining to be executed on capital
account and not provided for Rs.328.55 Lacs (Previous year Rs.8.89
Lacs) net of advances.
2) Some of the balances of sundry debtors, creditors, advances and
unsecured loans as on 31.03.2010 are subject to
confirmation. Sundry Debtors, outstanding for more than six months
includes Rs.108.79 Lacs and others includes Rs.5.64 Lacs on which legal
cases have been initiated for recovery by the company. The management
of the company is hopeful of favourable decision on such legal cases,
hence no provision for bad and doubtful debts have been considered.
3) In the opinion of the management, currents 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 in the Balance Sheet.
4) The Company has already initiated the process of obtaining copies of
memorandum filed with the concerned authority by entities falling under
the MSMED Act 2006. The Company has not received copies of the said
memorandum as on date from any such entity. In the absence of
information, the company is unable to identify units and as well as
furnish details required under the said Act.
5) The company does not have any fund for gratuity and leave encashment
liability and same is accounted for as provision
6) Remuneration paid/payable to Managing/whole time directors during
the year was Rs.148.68 Lacs (Previous Year Rs.148.68 Lacs).
7) Royalty & others comprises royalty of Rs.1473.98 Lacs, Income from
commodity derivaties of Rs.105.03 Lacs and priority dealership charges
of Rs.21.46 Lacs.
8) Provision for tax for current year amounting to Rs.42.52 Lacs
(Previous year Rs.26.77 Lacs) have been made U/s 115JB of Income Tax
Act,1961. Tax credit available U/s 115JAA of Income Tax Act.1961
amounting to Rs.33.11 Lacs (Previous year Rs.26.77 Lacs) have been
taken as "MAT Credit Entitlemant Account" by giving credit to profit &
loss account.
9) The company was subjected to search by Income Tax and Excise
Authorities during the year ended 31st March,2009 .The proceedings are
under process. Income Tax & Excise Duty liability,if any,upon
conclusion of search proceedings shall be provided for in the year in
which assessment by concerned authorities are completed.Pending
assessment by Excise Authority,the company has deposited a sum of
Rs.100 Lacs under protest,which has been shown as Excise Duty
Deposited under Protest in Loans & Advances.
10) Balance with Schedule Bank in Current Accounts includes Unpaid
Divident amount of Rs.2.38 Lacs and IPO Refund amount of Rs.2.62 Lacs (
Previous Year of Rs. 2.74 Lacs & Rs.2.98 Lacs respectively).
11) The Cash flow Statement has been prepared in accordance with the
requirements of Accounting Standard-3 "Cash Flow Statement" issued by
ICAI.
12) Sales includes Rs.3.53 Lacs (Previous Year Rs.30.70 Lacs) of stores
items sold being not usable.
13) As per Accounting Standard-17 " Segment Reporting" issued by ICAI,
the Company has identified three reportable business segments viz.
Steel, Power & Paints and following policies have been adopted for the
segment reporting.
a) Revenue and Expenses have been identified to a segment on the basis
of relationship to operating activities of the segment. Revenue and
Expenses which could not be allocable to a specific segment are being
disclosed separately as un-allocable.
14) As per Accounting Standard-18 "Related Party Disclosures" issued by
The Institute of Chartered Accountants of India, the disclosure of
transactions with the related parties as defined in the Accounting
Standard are given below:
Description of Relationship
Nature of Relationship Name of Related Party
Key Management Personnel Sh. Satish Kumar Agarwal, Chairman &
Managing Director
Sh. Sunil Kumar Agarwal, Whole Time Director
Sh. Saurabh Agarwal, Whole Time Director
Sh. Sachin Agarwal, Whole Time Director
Relatives of Key
Management Smt. Radha Agarwal W/o Sh.Satish Kumar
Agarwal
Smt. Priyanka Agarwal W/o Sh.Saurabh Agarwal
Smt. Shivani Agarwal W/o Sh.Sachin Agarwal
Smt. Shafali Agarwal W/o Late Shailendra
Kumar Agarwal
Sh. Ayush Agarwal S/o Late Shailender Kumar
Agarwal
Ms. Shreya Agarwal D/o Late Shailender Kumar
Agarwal
Smt. Sarita Agarwal W/o Sh.Sunil Kumar
Agarwal
Ms. Ishita Agarwal D/o Sunil Kumar Agarwal
Ms. Somya Agarwal D/o Sunil Kumar Agarwal
Ms. Shatul Agarwal D/o Sunil Kumar Agarwal
Related Companies
and other Kamdhenu Overseas Limited
Kamdhenu Cement Industries Limited
Satish Kumar Agarwal & Sons (HUF)
Sunil Kumar Agarwal & Sons (HUF)
Shailender Kumar Agarwal & Sons (HUF)
15) As per Accounting Standard-28 " Impairment of Assets" issued by
ICAI, there are no indication of overall impairment in assets.
16) The previous years figures have been reworked, regrouped,
rearranged and reclassified wherever necessary. Accordingly, amounts
and other disclosure for the preceding year are included as an integral
part of the current year financial statements and are to be read in
relation to the amounts and other disclosures relating to the current
year.
Schedules "1 to 22Ã form an integral part of the Balance Sheet and
Profit & Loss Account and have been duly authenticated as such.