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Notes to Accounts of Kanishk Steel Industries Ltd.

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 share is entitled to one vote per share.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive the assets of the company, in proportion to the number of equity shares held by the shareholders.

2. Terms of Repayment and rate of interest:

HP Loan of Rs.1,199,000/- is repayable in 24 monthly instalments of Rs.55,605/- each and it carries an interest @ 10.50 % p.a

HP Loan of Rs.1,070,000/- is repayable in 24 monthly instalments of Rs.49,622/- each and it carries an interest @ 10.50 % p.a.

3. Security:

Secured HP Loans from Bank / Financial Institutions are secured by the respective Vehicles and Machinery.

Notes attached to and forming part of the Balance Sheet as at 31-3-2015 and the Statement of Profit and Loss for the period ended on that date:

4. Company overview:

Kanishk Steel Industries Limited (the company) incorporated under the Companies Act, 1956, in the year 1989, is engaged in the manufacture and supply of Iron and Steel products. The company's shares are listed on the Bombay Stock Exchange Limited and the shares are traded regularly.

5. Additional Information to the Financial Statements

i) Contingent liability not provided for:

(a) Counter Guarantees furnished to bank Rs.1,54,05,800/- (Previous year Rs.1,04,37,200/-)

(b) Towards outstanding Letters of Credit Rs.11,17,56,109/-(Previous year Rs.25,45,74,922/-) on account of import of raw materials.

ii) Claims against the company not acknowledged as debt:

a) towards the disallowance of deemed Credit to extent of Rs.2,34,094/- under Rule 57-I of the Central Excise Rules, 1944 read with Section 11-A of Central Excise Act, 1944 made on the erstwhile Avanti Oil and Steel Industries Private Limited, the transferor company. Matter under appeal before Commissioner of Central Excise (Appeals) Chennai.

b) towards the demand of Rs.35,66,000/- plus penalty of an equal amount plus interest thereon for re-fixation of Annual Capacity of Production (ACP) by the Commissioner of Central Excise on the erstwhile OP Steels Limited, the transferor company. Company has filed a stay petition and the matter is pending before Hon'ble High Court of Madras.

c) towards the demand of differential duty of Rs.52,38,000/- (Rs.87,25,000/- less Rs.34,87,000/- already paid) plus interest and penalty as per the provisions of the Central Excise Act, 1944 as per the show cause notice no:2/06 dated 171-2006 issued by the Commissioner of Central Excise, Chennai claiming wrong adoption of assessable value for the excisable goods cleared from factory to depots. Company has won the appeal before the settlement commission. The Central Excise Department has filed an appeal in the Hon'ble High Court of Madras against the orders of the settlement commission.

d) towards the demand of Rs 9,00,000/- plus penalty of an equal amount plus interest thereon for re-fixation of Annual Capacity of Production(ACP) by the Commissioner of Central Excise. The matter is pending before Hon'ble High Court of Madras.

e) towards the demand of Central Excise duty of Rs.69,06,945/- plus equal amount of penalty plus interest of Rs.50,12,040/- plus fine of Rs.5,00,000/- (total demand Rs.1,93,25,930/- and Rs.1,36,45,721/- paid there-against) - matter under appeal with CESTAT, Chennai.

6. Depreciation:

a. Revaluation of Fixed Assets:

Fixed Assets pertaining to Rolling Division of the Company have been revalued on 31.03.2008, corresponding credit given to the Revaluation Reserve as per AS 10. Depreciation to the extent of Rs. 63,38,535/- (Previous Year Rs. 48,40,175/-). has been adjusted against revaluation reserve during the current year and credited to General Reserves.

b. Depreciation is provided on Fixed Assets as per Schedule II of the Companies Act 2013, accordingly an amount of Rs.18,22,616/- is charged from opening reserves for the assets which are in existence beyond useful life as on 01-042014.

7. Employee Benefits:

Disclosures in terms of AS-15 are under:

a. Defined contribution plan:

Contribution to defined contribution plan recognized as expenses for the year 2014-2015 is Employers contribution to Provident Fund and ESI Rs.16,41,684/-.

b. Defined Benefit Plan:

As per the explanations given by the management of the company except for Gratuity, there are no other benefit plans for the employees of the company. The present value of Gratuity obligation is determined during this year (2014-2015) based on actuarial valuation using the projected unit credit method. Accordingly provision of Rs.17,476/-has been made in the year 2014-2015. (Previous year - Rs.3,61,011/-)

8. Deferred Taxes:

Based on the petition filed by the company on 21-04-2008, the Hon'ble High Court of Madras has allowed the company on 19-08-2008 to utilize the Securities Premium account towards the Deferred Tax Liability computed as per Accounting Standard 22 issued by the Institute of Chartered Accountants of India.

9. Disclosures of Trade payable under current/ noncurrent liabilities is based on the information available with the company regarding the status of the suppliers as defined under the "Micro, Small and Medium Enterprises Development Act, 2006" (the Act). There are no delays in payment made to such suppliers and there is no overdue amount outstanding as at the Balance Sheet date. Based on the above the relevant disclosure u/s. 22 of the said Act is as follows:

Particulars Amount in Rs.)

Principal amount outstanding at the end of the year -

Interest amount due at the end of the year -

Interest paid to suppliers -

10. Company has circularized/sought confirmation of balance letters to/from sundry debtors & advance parties / sundry creditors. In the absence of negation, the balances appearing the books are taken as confirmed.

11. Remittance in Foreign Currency towards Dividend - Nil

12. Earnings in Foreign Currency Rs. Nil (Previous year Rs. Nil)

28. The application relating to waiver of remuneration in excess of section 309(5B) of the Companies Act, 1956 for the year 2012-13 & 2013-14 has been rejected by the Central Government, accordingly an amount of Rs.12,00,000/- has been reversed from the Directors Remuneration account. Amount debited to the statement of profit and loss Rs.16,00,000/- is net of the above said recovery.

13. RELATED PARTY DISCLOSURES:

List of parties where control exists

a) Associates:

1. OPG Energy Private Limited

2. Gita Renewable Energy Limited

3. OPG Renewable Energy Private Limited

b) Other related parties:

1. Sonal Vyapar Limited

2. OPG Business Centre Private Ltd

3. Chennai Ferrous Industries Limited

4. Indian Corporate Business Centre Limited

5. Kanishk Metal Recycling Pvt ltd

6. OM Power Sakthi India Pvt Ltd

7. Sri Sri Rukmani Rolling Mill Private Limited

8. OM Energy Generation Private Limited

Key Management Personnel (KMP):

Mr. Ravi Kumar Gupta, Chairman & Managing Director

Mr. Vishal Keyal, Whole Time Director & Chief Financial Officer

Mr. Kanishk Gupta, Director

Notes:

1. Remuneration to key management personnel is Rs.28,00,000/-

2. Sitting Fees to Directors Rs.50,000/-

3. Related party relationship is as identified by the company and relied upon by the Auditors.

31. Disclosure of loans and advances as per the requirement of clause 32 of the listing agreement with Stock Exchanges in India.

i) The company does not have any subsidiary and has not given any loans and advances in the nature of loans to its associates.

ii) No Interest free loans have been given to its employees.

14. PREVIOUS YEAR FIGURES:

Previous year's / figures have been regrouped and rearranged wherever necessary.


Mar 31, 2014

1. CORPORATE INFORMATION

Kanishk Steel Industries Limited (the company) incorporated under the Companies Act, 1956, in the year 1989, is engaged in the manufacture and supply of iron and steel products. The company''s shares are listed on the Bombay Stock Exchange Limited and the shares are traded regularly.

2. LONG TERM BORROWINGS

Terms of Repayment and rate of interest:

HP Loan of Rs.1,199,000/- is repayable in 24 monthly instalments of Rs.55,605/- each and it carries an interest @ 10.50% p.a.

HP Loan of Rs.1,070,000/- is repayable in 24 monthly instalments of Rs. 49,622/- each and it carries an interest @ 10.50% p.a.

HP Loan of Rs.17,450,000/- is repayable in 24 monthly instalments of Rs. 817,400 each and it carries an interest @ 11.67 % p.a.

Security :

Secured HP Loans from Bank / Financial Institutions are secured by the respective vehicles and machinery.

3. ADDITIONAL INFORMATION TO THE FINANCIAL STATEMENTS

i) Contingent liability not provided for:

(a) Counter Guarantees furnished to the bank Rs. 1,04,37,200/- (Previous year Rs.5,00,000/-)

(b) Towards outstanding Letter of Credit Rs. 25,45,74,922/- (Previous year Rs.7,03,41,723/-) on account of import of raw materials.

ii) Estimated amount of contracts remaining to be executed on capital accounts and not provided for Rs. Nil (Previous year Rs. Nil pertaining to resulting company) and for others is nil.

iii) Claims against the company not acknowledged as debt:

a) towards the disallowance of deemed Credit to the extent of Rs.2,34,094/- under Rule 57-I of the Central Excise Rules, 1944 read with Section 11-A of Central Excise Act, 1944 made on the erstwhile Avanti Oil and Steel Industries Private Limited, the transferor company. Matter under appeal before the Commissioner of Central Excise (Appeals) Chennai.

b) towards the demand of Rs.35,66,000/- plus penalty of an equal amount plus interest thereon for re-fixation of Annual Capacity of Production (ACP) by the Commissioner of Central Excise on the erstwhile O.P.Steels Limited, the transferor company. Company has filed stay petition. This matter is pending before Honb''le High Court of Madras.

c) towards the demand of differential duty of Rs.52,38,000/- (Rs.87,25,000/- less Rs.34,87,000/- already paid) plus interest and penalty as per the provisions of the Central Excise Act, 1944 as per the show cause notice no:2/06 dated 17-1-2006 issued by the Commissioner of Central Excise, Chennai claiming wrong adoption of assessable value for the excisable goods cleared from factory to depots. Company has won the appeal before the settlement commission. The Central Excise Department has filed an appeal in the Hon''ble High Court of Madras against the order of the settlement commission.

d) towards the demand of Rs 9,00,000/- plus penalty of an equal amount plus interest thereon for re-fixation of Annual Capacity of Production (ACP) by the Commissioner of Central Excise. The department has filed its appeal against this company. This matter is pending before Hon''able High Court of Madras.

e) towards the demand of Central Excise duty of Rs.69,06,945/- plus equal amount of penalty plus interest of Rs.50,12,040/- plus fine of Rs.5,00,000/- (total demand Rs.19,325,930/- and Rs.1,36,45,721/- paid there-against) - matter under appeal with CESTAT, Chennai.

iv) Revaluation of Fixed Assets:

Fixed Assets pertaining to Rolling Division of the Company have been revalued on 31.03.2008, corresponding credit given to the Revaluation Reserve as per AS 10. Depreciation to the extent of Rs. 48,40,175/- has been adjusted against revaluation reserve during the current year (Previous Year Rs. 48,40,175/-).

v) Employee Benefits:

Disclosures in terms of AS-15 are under:

a. Defined contribution plan:

Contribution to defined contribution plan recognized as expenses for the year 2013-14 is Employers contribution to Provident Fund and ESI Rs.18,18,950/-.

b. Defined Benefit Plan:

As per the explanations given by the management of the company except for Gratuity, there are no other benefit plans for the employees of the company. The present value of Gratuity obligation is determined during this year (2013-2014) based on actuarial valuation using the projected unit credit method. Accordingly provision of Rs. 3,61,011/- has been made in the year 2013-14. (2012-13 is Rs. 4,19,912/-)

vi) Deferred Taxes:

Based on the petition filed by the company on 21.04.2008, the Hon''ble High Court of Madras has allowed the company on 19.08.2008 to utilize the Securities Premium account towards the Deferred Tax Liability computed as per Accounting Standard 22 issued by the Institute of Chartered Accountants of India.

vii) Disclosures of Trade payable under current/ noncurrent liabilities is based on the information available with the company regarding the status of the suppliers as defined under the "Micro, Small and Medium Enterprises Development Act, 2006" (the Act). There are no delays in payment made to such suppliers and there is no overdue amount outstanding as at the Balance Sheet date. Based on the above the relevant disclosure u/s. 22 of the Act are as follows:

viii) Company has circularized/sought confirmation of balance letters to/from sundry debtors & advance parties / sundry creditors. In the absence of negation, the balances appearing in the books are taken as confirmed.

xi) Remittance in Foreign Currency towards Dividend - Nil

xii) Earnings in Foreign Currency Rs. Nil (Previous year Rs. Nil)

4. Remuneration of Rs.40,00,000/- paid to the Managing Director / Director and debited to the Statement of Profit and Loss for the financial year 2013-14 includes Rs. 6,00,000/- in excess of the limits specified in Section 309 of the Companies Act, 1956. The excess payment is as a result of lower profits in the wake of adverse market conditions. The Company is in the process of making application to Central Government u/s 309(5B) of the Companies Act, 1956 to waive the recovery of the said excess remuneration. Pending such approval the Managing Director holds the excess remuneration paid in trust for the Company.

5. RELATED PARTY DISCLOSURES:

Enterprises:

OPG Energy Private Limited OPG Renewable Energy Private Limited

OM Energy Generation Private Sonal Vyapar Limited Limited

Salem Food Products Limited Durga Rubber Works

OPG Business Centre Private Ltd Gita Renewable Energy Ltd

Chennai Ferrous Industries Limited Sri Sri Rukmani Rolling Mill Private Limited

Indian Corporate Business Centre Primex Infrastructure Private Limited Limited

Kanishk Metal Recycling Private Limited

Relationship: Enterprises in which key management personnel are having significant influence.

Key Management Personnel:

Mr. Ravi Kumar Gupta Chairman & Managing Director Mr. Vishal Keyal Whole-time Director Mr. Kanishk Gupta Director

6. Disclosure of loans and advances as per the requirement of clause 32 of the listing agreement with stock Exchanges in India.

a) The company does not have any subsidiary and has not given any loans and advances in the nature of loans to its associates.

b) No Interest free loans have been given to its employees.

7. PREVIOUS YEAR FIGURES

Previous year''s figures have been regrouped and rearranged wherever necessary.


Mar 31, 2013

1. CORPORATE INFORMATION

Kanishk Steel Industries Limited was incorporated under the Companies Act, 1956, in the year of 1989 and carried out the business activities as follows:

- Manufacture of Steel and Allied Products (Rolling Division and Sponge Iron Division)

- Generation of power (Power Division)

Pursuant to the Scheme of Arrangement (Demerger) approved by the Honourable High Court of Madras under Sections 391 to 394 of the Companies Act, 1956, the Company transferred all the assets and liabilities of the Power Division and Sponge Iron Division of the Company into Gita Renewable Energy Limited and Chennai Ferrous Industries Limited respectively at their respective book values and on a going concern basis.

Presently the Company operates the Rolling Division only. The shares of the Company are traded at Bombay Stock Exchange regularly.

2. ADDITIONAL INFORMATION TO THE FINANCIAL STATEMENTS

i) Contingent liability not provided for:

(a) Counter Guarantees furnished to the bank Rs. 70,341,723/- (Previous year Rs. 21,711,900/-)

(b) Towards outstanding Letter of Credit Rs. 500,000 /- (Previous year Rs. 139,308,804/-) on account of import of raw materials.

ii) Estimated amount of contracts remaining to be executed on capital accounts and not provided for Rs. Nil (Previous year Rs. 135,900,000 pertaining to resulting company) and for others is nil.

iii) Claims against the company not acknowledged as debt:

a) towards the disallowance of deemed Credit to extent of Rs. 234,094/- under Rule 57-I of the Central Excise Rules, 1944 read with Section 11-A of Central Excise Act, 1944 made on the erstwhile Avanti Oil and Steel Industries Private Limited, the transferor company. Matter under appeal before Commissioner of Central Excise (Appeals), Chennai.

b) towards the demand of Rs. 3,566,000/- plus penalty of an equal amount plus interest thereon for re-fixation of Annual Capacity of Production (ACP) by the Commissioner of Central Excise on the erstwhile OP Steels Limited, the transferor company. Company has filed stay petition. This matter is pending before Honb''le High Court of Madras.

c) towards the demand of differential duty of Rs. 5,238,000/- (Rs.8,725,000/- less Rs.3,487,000/- already paid) plus interest and penalty as per the provisions of the Central Excise Act, 1944 as per the show cause notice No. 2/06 dated 17-1-2006 issued by the Commissioner of Central Excise, Chennai claiming wrong adoption of assessable value for the excisable goods cleared from factory to depots. Company has won during the year its appeal before the settlement commission and the matter has been referred to Hon''ble High Court of Madras by the Commissioner of Central Excise.

d) towards the demand of Rs. 900,000/- plus penalty of an equal amount plus interest thereon for re-fixation of Annual Capacity of Production (ACP) by the Commissioner of Central Excise. The department has filled its appeal against this company. This matter is pending before Hon''able High Court of Madras.

iv) Revaluation of Fixed Assets:

Fixed Assets pertaining to Rolling Division of the Company have been revalued on 31.03.2008, corresponding credit given to the Revaluation Reserve as per AS 10. Depreciation to the extent of Rs. 4,840,175/- has been adjusted against revaluation reserve during the current year (Previous Year Rs. 4,840,175/-).

v) Employee Benefits:

Disclosures in terms of AS-15 are under:

a. Defined contribution plan:

Contribution to defined contribution plan recognized as expenses for the year 2012-2013 is Employers contribution to Provident Fund and ESI Rs.1,426,133/-.

b. Defined Benefit Plan:

As per the explanations given by the management of the company except for Gratuity, there are no other benefit plans for the employees of the company. The present value of Gratuity obligation is determined during this year (2012-13) based on actuarial valuation using the projected unit credit method. Accordingly provision of Rs. 419,912/- has been made in the year 2012-13. (2011-12 is Rs. 850,800/-)

vi) Deferred Taxes:

Based on the petition filed by the company on 21.04.2008, the Hon''ble High Court of Madras has allowed the company on 19.08.2008 to utilize the Securities Premium account towards the Deferred Tax Liability computed as per Accounting Standard 22 issued by the Institute of Chartered Accountants of India.

vii) Disclosures of Trade payable under current/ noncurrent liabilities is based on the information available with the company regarding the status of the suppliers as defined under the Micro, Small and Medium Enterprises Development Act, 2006 (the Act). There are no delays in payment made to such suppliers and there is no overdue amount outstanding as at the Balance Sheet date. Based on the above the relevant disclosure under section 22 of the Act are as follows:

viii) Company has circularized/sought confirmation of balance letters to/from sundry debtors & advance parties / sundry creditors. In the absence of negation, the balances appearing the books are taken as confirmed.

xii) Earnings in Foreign Currency Rs. Nil (Previous year Rs. Nil)

xiii) Segment Information for the Year Ended 31st March, 2013:

Business Segment:

The Company operates in single Business Segment of ''Manufacturing of Steel and Allied Products''. Therefore, the Company is of the view that the disclosure requirement of Accounting Standard AS-17 issued by the Institute of Chartered Accountants of India is not applicable to the Company.

3. Remuneration of Rs. 4,025,000/- paid to the Managing Director / Director and debited to the Statement of Profit and Loss for the financial year 2012-13 includes Rs. 600,000/- in excess of the limits specified in Section 309 of the Companies Act, 1956. The excess payment is as a result of lower profits in the wake of adverse market conditions. The Company is in the process of making application to Central Government u/s 309(5B) of the Companies Act, 1956 to waive the recovery of the said excess remuneration. Pending such approval the Managing Director holds the excess remuneration paid in trust for the Company.

4. RELATED PARTY DISCLOSURES: Enterprises:

OPG Energy Private Limited

OPG Renewable Energy Private Limited

OM Energy Generation Private Limited

Sonal Vyapar Limited

Salem Food Products limited

Durga Rubber Works

OPG Business Centre Private Ltd

Gita Renewable Energy Pvt Ltd

Chennai Ferrous Industries Limited

Sri Sri Rukmani Rolling Mill Private Limited

Indian Corporate Business Centre Limited

Primex Infrastructure Private Limited

Relationship: Enterprises in which key management personnel are having significant influence.

Key Management Personnel:

Mr. Ravi Kumar Gupta Chairman & Managing Director

Mr. Vishal Keyal Whole-time Director.

Mr. Kanishk Gupta Director

5. SCHEME OF ARRANGEMENT

a) Pursuant to the Scheme of Arrangement ("the Scheme") approved by the Hon''ble High Court of Madras, all the assets and liabilities of the Power Division and Sponge Iron Division of the Company have been vested with Gita Renewable Energy Limited and Chennai Ferrous Industries Limited respectively at their respective book values and on a going concern basis from 1st July 2010.

b) As per the scheme, appointed date as approved by the Hon''ble High Court of Madras is 1st July 2010 and the effective date is 28th February, 2013 being the date on which the certified copy of the order sanctioning the said Scheme was filed with Registrar of Companies, Chennai in accordance with Companies act, 1956.

c) Details of assets and liabilities transferred to the Resulting company are as under:

5. Disclosure of loans and advances as per the requirement of clause 32 of the listing agreement with stock Exchanges in India.

a) The company does not have any subsidiary and has not given any loans and advances in the nature of loans to its associates.

b) No Interest free loans have been given to its employees.

7. PREVIOUS YEAR FIGURES

a) Pursuant to the Clause 7.1 of the Scheme of Arrangement, all profits accruing or losses incurred including the effect of taxes relating to the Power Division and Sponge Iron Division, from the Appointed Date (1st July, 2010) until 31st March, 2012 are to be treated as Profits or Losses as the case may be of the respective Resulting Companies. This Clause has been given due effect in the audited accounts.

b) The figures for the year ended on 31st March, 2013 have been recast to give effect of the Scheme of Arrangement of the demerger of the Power Division and Sponge Iron Division.

c) Previous period figures have been regrouped wherever necessary. The results for the year ended on 31st March, 2012 being inclusive of results of Power Division and Sponge Iron Division of the Company, are not comparable with those of the same period of current year.


Mar 31, 2009

1. Contingent liability not provided for:

(a) Counter Guarantees furnished to the bank Rs.99.58 Lakhs (Previous year Rs. 97.91 Lakhs)

(b) Towards outstanding Letter of Credit Rs. NIL (Previous year Rs. 2893.19 Lakhs) on account of import of raw materials.

2. Estimated amount of contracts remaining to be executed on capital accounts and not provided for Rs. NIL (Previous year: Rs. 7.85 Crores).

3. Claims against the company not acknowledged as debt:

a) - towards the disallowance of deemed Credit to extent of Rs.2,34,094/- under Rule 57-1 of the Central Excise Rules, 1944 read with Section 11-A of Central Excise Act, 1944 made on the erstwhile Avanti Oil and Steel Industries Private Limited, the transferor company. Matter under appeal before Commissioner of Central Excise (Appeals) Chennai.

b) - towards the demand of Rs.35.66 lakhs plus penalty of an equal amount plus interest thereon for re-fixation of Annual Capacity of Production (ACP) by the Commissioner of Central Excise on the erstwhile OP Steels Limited, the transferor company. Company has filed stay petition. This matter is pending before Honble High Court of Madras.

c) - towards the demand of penalty of Rs.11,000/- imposed by Central Excise Authorities relating to difference in the mode of valuation of Sponge Iron cleared on job work basis. Company has filed a stay application and the matter is pending before Commissioner of Central Excise (Appeals) Chennai.

d) -towards the demand of differential duty of Rs.52.38 lakhs (Rs.87.25 lakhs less Rs.34.87 lakhs already paid) plus interest and penalty as per the provisions of the Central Excise Act, 1944 as per the show cause notice no:2/06 dated 17-1-2006 issued by the Commissioner of Central Excise, Chennai claiming wrong adoption of assessable value for the excisable goods cleared from factory to depots. Company has won during the year its appeal before the settlement commission and the matter has been referred to Honble High Court of Madras by the Commissioner of Central Excise

e) - towards the disallowance of Cenvat Credit relating to the Furnace Oil to extent of Rs. 17,99,434/- plus penalty of an equal amount imposed by the Central excise Dept. Matter pending before Honble High Court of Madras.

4. Revaluation of Fixed Assets:

Fixed Assets pertaining to Rolling Division of the Company have been revalued on 31.3.08, corresponding credit given to the Revaluation Reserve as per AS 10. Depreciation to the extent of Rs.48.40 Lakhs has been adjusted against revaluation reserve during the current year.

5. License Agreement:

Company has entered into a License Agreement on 26th April 2008 to give on License the 10MW Power Plant to OPG Renewable Energy Private Limited (OPGREPL) on the understanding that OPGREPL shall provide power to the Company upto 9 Million units every year. It has also been undertaken that in the event of shortfall, OPGREPL shall compensate the company by an amount equal to the value of such shortfall calculated by applying the rate of power charged by TNEB in that financial year. An interest free deposit of Rs.20 Crores has been given by OPGREPL during the year and the commitment has accordingly been halved to 4.5 million units a year w.e.f. 1-4- 09.

6. Employee Benefits

Disclosures in terms of AS-15 are under:

a. Defined contribution plan:

Contribution to defined contribution plan recognized as expenses for the year 2008-09 is Employers contribution to Provident Fund and ESI Rs. 13.02 Lakhs.

b. Defined Benefit Plan:

As per the explanations given by the management of the company except for Gratuity, there are no other benefit plans for the employees of the company. The present value of Gratuity obligation is determined during this year (2008-09) based on actuarial valuation using the projected unit credit method. Accordingly provision of Rs.2.12 Lacs has been made in the year 2008-09. (2007-08 Rs. 12.96 Lacs)

7. Deferred Taxes:

Based on the petition filed by the company on 21st April 2008, the Honble High Court of Madras has allowed the company on 19th August 2008 to utilize the Securities Premium account towards the Deferred Tax Liability computed as per Accounting Standard 22 issued by the Institute of Chartered Accountants of India.

8. There were no amounts overdue (above Rs.1 lakh) to Small Scale and/or Ancillary Industrial Suppliers on account of Principal and/or Interest as at 31.03.2009. This disclosure is based on the information available with the Company regarding the status of the suppliers.

9. Company has circularized/sought confirmation of balance letters to/from sundry debtors & advance parties / sundry creditors. In the absence of negation, the balances appearing the books are taken as confirmed.

10. Sundry creditors include an amount of Rs.101.65 lakhs being the value of the surety given by the company to the Customs Authorities on behalf of M/s OPG Energy Private Ltd. (OPGEL) to the extent of Rs.461.41 lakhs with a commitment of Export obligation for US$ 79,63,973.76 within 8 years from 3.11.2003 for OPGEL to avail concessional customs duty for import of capital equipment. As per the arrangement, OPGEL will compensate the company with a total amount of Rs.386.41 lakhs towards the saving based on progress achieved in the export obligations guaranteed by the Company and the joint venture partners on behalf of OPGEL within the stipulated period, out of which Rs. 100.70 lakhs income received during the year.

11. Previous year figures are regrouped / rearranged wherever necessary.


Mar 31, 2000

1. Estimated amount of contracts remaining to be executed on capital account and not provided for is Rs. nil lakhs (Previous Year - Nil)

2. Contingent liability not provided for:

(a) Counter Guarantees furnished to the bank Rs. 50.00 Lakhs (Previous year Rs. 180.24 Lakhs).

(b) Towards outstanding Letter of Credit Rs. 106.70 Lakhs (Previous year Rs. 85.27 Lakhs).

3. Claims against the company not acknowledged as debt NIL (Previous year NIL).

4. Previous period figures are regrouped / rearranged wherever necessary to conform to the current year layout of accounts and are not strictly comparable with the previous period figures which covered a period of 18 months.

5. Remuneration to the Directors:

Ravi Gupta, CMD 1,80,000

Rajesh Gupta, JMD 1,20,000

Total 3,00,000

6. There were no amounts overdue (above Rs.1 lakh) to small scale and/or ancillary industrial suppliers on account of principal and/or interest as at 31.03,2000. This disclosure is based on the information available with the company regarding the status of the suppliers.

7. No provision for dividend has been made on the 3000, 15% Cumulative Preference Shares of Rs.100/- each during the period.

8. Additional information pursuant to the provisions of paragraphs 3,4c,3,4d of Part II of Schedule VI of the Companies Act, 1956.

Name of the Product manufactured Tor steel and Profiles.

Licenced Capacity Not applicable.

Installed Capacity 50,000 Metric Tonnes

 
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