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Notes to Accounts of Maharashtra Seamless Ltd.

Mar 31, 2015

1. CONTINGENT LIABILITIES

a) Letter of Credit - Rs. 325,694,836/- (Previous Year Rs. 763,605,220/-)

b) Guarantees & SBLC: Bank & Others - Rs. 26,791,398,783/-(Previous Year Rs. 8,549,752,190/-)

c) Sales Tax Demand under Appeal - Rs. 465,199/- (Previous Year Rs. 465,199/-)

d) Income Tax Demand under Appeal - Rs. 945,537/- (Previous Year Rs. 945,537/- )

e) Excise Duty Demand under Appeal - Rs. 50,029,784/- (Previous Year Rs. 188,917,922/-)

f) Indian Oil Corporation Ltd. (IOCL) had raised a claim of Rs. 179,848,064/- during the financial year 2008-09 & against this claim a performance bank guarantee of Rs. 85,279,100/- was given to IOCL, which was realized by them, and an equivalent amount is charged in the Profit & Loss Account in financial year 2008-09. The matter is still under dispute and arbitration proceeding is going on. Any further demand, if any, will be provided for on the date of final settlement.

2. The Company pledged 4,500,000 Equity Shares of USD 1/- each held in Jindal Pipes (Singapore) Pte. Ltd in favour of Standard Chartered Bank (Hong Kong) Limited acting as security agent towards loan availed by Jindal Pipes (Singapore) Pte. Ltd. (Associate Company). Further, the Company has pledged its investment in mutual funds amounting to Rs. 3,670,972,670/- in favour of Deutsche Bank AG towards loan availed by Dev Drilling Pte. Ltd. (Joint Venture Company).

3. The company has imported Capital Goods under the Export Promotion Capital Goods (EPCG) scheme of the Government of India, at concessional rate of duty against the Legal Undertaking (LUT) to fulfill Exports obligations. The duty saved on such import of capital goods during the year amounting to Rs. 19,814,748/- (Previous Year Rs. 21,073,185/-) and for this the company is under an obligation to export goods amounting to Rs. 158,517,984/- (Previous Year Rs. 168,585,480/-), within a period of eight years, commencing from the date of issue of licenses. The company has, however, fulfilled, the export obligation till date to the extent of Rs. 158,517,984/- (Previous Year Rs. 168,585,480/-), for which the LUTs are to be discharged.

Pending fulfillment of such future export obligations entails Custom Department a right to enforce the LUT executed by us to the extent of Rs. Nil (Previous Year Rs. Nil).

4. Estimated amount of contracts remaining to be executed on capital account, net of advances, and not provided for Rs. 38,633,581/- (Previous Year Rs. 128,962,357/-).

5. The company is entitled to Mega Project Industrial Promotion Subsidy under the Package Scheme of Incentive 2007 approved by the Govt. of Maharashtra, to the extent of 75% of the eligible fixed capital investment at Mangaon or to the extent of taxes paid to the State Govt. less incentive of stamp duty and electricity duty exemption, within a period of 7 years from the date of approval, whichever is lower.

As per AS -12 & accounting policy followed by the company the amount of such subsidies receivable is considered as Capital Receipt and is credited to Capital Reserve. The amount receivable amounts to Rs. 16,652,521/- (Previous Year Rs. 3,008,030/-).

6. Tangible Fixed Assets namely Land, Factory Shed & Building and Plant & Machinery acquired upto 31st March, 2009 were revalued on 1st April, 2009. As a result of revaluation, Revaluation Reserve was created amounting to Rs. 7,832,375,428/- , and additional depreciation of Rs. 408,899,018/- (Previous Year Rs. 408,899,018/-) provided on increased amount of assets due to revaluation has been adjusted from Revaluation Reserve.

7. Excise duty in respect of finished goods lying in factory premises and custom duty on goods lying in custom bonded warehouse are provided and included in the valuation of inventory. This accounting treatment has no impact on the profit for the year. Credit of taxes and duties availed is accounted for by reducing the purchase cost of the materials and fixed assets.

8. The company owes Rs. 754,650/- (Previous Year Rs. 3,427,545/-) to Micro and Small Enterprises which are outstanding for more than 45 days as at 31st March, 2015. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company. The Auditors have relied upon the same.

9. The Company has incurred an expenditure of Rs. 22,729,000/- towards promoting education, health care, eradication of hunger and malnutrition. These expenditures are covered under various schemes of Corporate Social Responsibility as prescribed under section 135 of Companies Act, 2013.

Gross amount required to be spent during the year Rs. 501 Lacs (approx.)

Amount Spent during the year Rs. 227 Lacs (approx.)

10. Effective from 1st April 2014, the company has changed depreciation based on the remaining useful life of the assets as per the requirement of Schedule II of the Companies Act, 2013. Had there been no change in the depreciation rate, the depreciation charged for the year ended 31st March, 2015 would have been higher by Rs. 98,470,417/- (net).

In respect of assets whose useful life is already exhausted as on 1st April, 2014 has been adjusted and depreciation amounting to Rs. 40,405,997/- has been adjusted from Reserves & Surplus in accordance with the requirement of Schedule II of the Companies Act, 2013.

11. In the opinion of the company, the value on realization of current assets, loans & advances in the ordinary course of the business shall not be less than the amount at which they are stated in the Balance Sheet.

12.Financial reporting of Interest in Joint Ventures as per Accounting Standard - 27:

13. The foreign exchange fluctuation (net) gain Rs. 70,226,876/- (Previous Year loss Rs. 51,488,189/-), as shown in Profit & Loss Account, has been arrived at after considering loss of Rs. 26,724,103/- (Previous Year Rs. 93,400,085/-) and gain of Rs. 96,950,979/- (Previous Year Rs. 41,911,896/-). Further, mark to market gain/(loss) has been recognized by the company of Rs. Nil (Previous Year Rs. Nil ) as specified in Accounting Standard 30 "Financial Instruments: Recognition and Measurement" issued by ICAI.

14. a) The Accounting Standard 15 (Revised 2005) have been made applicable from F.Y. 2007-08, the requisite information and disclosure have been given separately for this year and previous year.

b) The employees'' gratuity fund scheme managed by LIC of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

15. Segment Reporting Policies

Identification of Segments

Primary Segment

Business segment: The Company''s operating businesses are organized and managed separately according to the nature of products, with each segment representing a strategic business unit that offers different products. The two identified segments are Steel Pipes & Tubes and Power - Electricity.

Inter Division transfers of goods, as marketable products produced by separate divisions of the company for captive consumption are made as if sales were to third parties at current market prices and are included in turnover.

16. Related Parties Disclosures as per Accounting Standard – 18.

List of Related Parties with whom transactions have taken place during the year:

a) Joint Venture Companies Gondkhari Coal Mining Ltd. Dev Drilling Pte. Ltd.

b) Subsidiary Companies

Maharashtra Seamless (Singapore) Pte. Ltd. (WOS) Maharashtra Seamless Finance Ltd. (WOS) Discovery Oil And Mines Pte. Ltd. (WOS)

c) Step Subsidiary Company* Internovia Natural Resources FZ LLC

d) Associate Companies

Jindal Pipes (Singapore) Pte. Ltd.

Star Drilling Pte. Ltd.

Jindal Premium Connections Pvt. Ltd.

(Formerly known as Hydril Jindal International Pvt. Ltd.)

e) Common Controlled Entities Jindal Pipes Ltd.

Haryana Capfin Ltd.

f) Key Management Personnel Shri Saket Jindal

Shri S. P. Raj Shri Ashok Soni Shri D.C. Gupta

g) Relatives of Key Management Personnel Shri D.P. Jindal

Smt. Savita Jindal Shri Raghav Jindal

Smt. Rachna Jindal

Smt. Shruti Raghav Jindal * Internovia Natural Resources FZ LLC is a step subsidiary with direct holding of 5% & holding of 51% through Discovery Oil And Mines Pte. Ltd. (WOS).

No amount has been provided as doubtful debts or advances / written off or written back in the year in respect of debts due from

or to any Related Parties.

* Includes effect of change in foreign exchange translation.

17. Paise have been rounded off to the nearest rupee.

18. Previous year figures have been regrouped / recast, where necessary, to conform to the current year classification.


Mar 31, 2014

Terms / Rights attached to Equity Share

The company has only one class of Equity Shares having a par value of Rs. 5/-. 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 Board of Directors, in their meeting on May 24, 2014, proposed a dividend of Rs. 6/- per Equity Share. The proposal is subject to the approval of shareholders at the Annual General Meeting. The total dividend appropriation for the year ended March 31, 2014 amounted to Rs. 470,317,275/- including corporate dividend tax of Rs. 68,319,519/-. The dividend pay-out is calculated on 66,999,626 no. of shares to the member whose name appear in the register of member as on 24th May 2014.

In the event of liquidation of the company, the holders of Equity Shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of Equity Shares held by the shareholders.

d) Aggregate number of bonus shares issued during the period of five years immediately preceding the reporting date: Nil

e) Aggregate number and class of shares allotted as fully paid up pursuant to contract(s) without payment being received in cash during the period of five years immediately preceding the reporting date: Nil

f) The company has bought back following Equity Shares during the last five years preceding the Balance Sheet Date Financial Year No. of Shares.

Pursuant to the approval of the Board of Directors of the company, for buy back of Equity Shares U/s 77A of the Companies Act, 1956 , during the financial year 2013-14 the company has bought 2,250,298 the Equity Shares and extinguished the same. Consequently a sum of Rs. 11,251,490/- has been reduced from Share Capital & Rs. 404,039,057/- has been reduced from Securities Premium Account.

Capital Redemption Reserve has been created of Rs. 11,251,490/- being nominal value of shares bought back U/s. 77A of the Companies Act, 1956.

Notes to Accounts

* Proposed Dividend on Equity Shares and Tax on Dividend are net of reversal of excess provision of previous year pertaining to Equity Shares bought back before the record date of Dividend aggregating to Rs. 41.86 Lacs.

*The borrowings for working capital are secured by hypothecation of inventories, book debts & all other current assets other than those specifically excluded and second charge on moveable fixed assets and negative lien on immovable fixed assets.

*During the year 1,760 Equity Shares of Welspun Enterprises Ltd. were allotted against 35,200 Equity Shares of Welspun corp Ltd. pursuant to Scheme of Demerger ,wherein for every 20 shares of Welspun Corp Ltd. 1 share of Welspun Enterprises Ltd. was allotted.

1 CONTINGENT LIABILITIES

a) Letter of Credit - Rs. 763,605,220/- (Previous Year Rs. 391,604,808/-)

b) Guarantees: Bank & Others - Rs. 8,549,752,190/- (Previous Year Rs. 6,585,365,409/-)

c) Sales Tax Demand under Appeal - Rs. 465,199/- (Previous Year Rs. 465,199/-)

d) Income Tax Demand under Appeal - Rs. 945,537/- (Previous Year Rs. 453,210/- )

e) Excise Duty Demand under Appeal - Rs. 188,917,922/- (Previous Year Rs. 190,325,905/-)

f) Indian Oil Corporation Ltd. (IOCL) had raised a claim of Rs. 179,848,064/- during the financial year 2008-09 & against this claim a performance bank guarantee of Rs. 85,279,100/- was given to IOCL, which was realized by them, and an equivalent amount is charged in the Profit & Loss Account in financial year 2008-09. The matter is still under dispute and arbitration proceeding is going on. Any further demand, if any, will be provided for on the date of final settlement.

2. The company has pledged 4,500,000 Equity Shares of USD 1/- each held in Jindal Pipes (Singapore) Pte. Ltd. in favour of Standard Chartered Bank (Hong Kong) Limited acting as Security Agent towards Loan availed by Associate Company Jindal Pipes (Singapore) Pte. Ltd.

3. The company has imported Capital Goods under the Export Promotion Capital Goods (EPCG) scheme of the Government of India, at concessional rate of duty against the Legal Undertaking (LUT) to fulfil Exports obligations. The duty saved on such import of capital goods during the year amounting to Rs. 21,073,185/- (Previous Year Rs. 37,139,095/-) and for this the company is under an obligation to export goods amounting to Rs. 168,585,480/- (Previous Year Rs. 222,834,570/-), within a period of eight years, commencing from the date of issue of licenses. The company has, however, fulfilled, the export obligation till date to the extent of Rs. 168,585,480/- (Previous Year Rs. 222,834,570/-), for which the LUTs are to be discharged.

Pending fulfilment of such future export obligations entails Custom Department a right to enforce the LUT executed by us to the extent of Rs. Nil (Previous Year Rs. Nil).

4. Estimated amount of contracts remaining to be executed on Capital Account, net of advances, and not provided for Rs. 128,962,357/- (Previous Year Rs. 119,296,437/-).

5. The company is entitled to Mega Project Industrial Promotion Subsidy under the Package Scheme of Incentive 2007 approved by the Govt of Maharashtra, to the extent of 75% of the eligible fixed capital investment at Mangaon or to the extent of taxes paid to the State Govt. less incentive of stamp duty and electricity duty exemption, within a period of 7 years from the date of approval, whichever is lower.

As per AS -12 & accounting policy followed by the company the amount of such subsidies receivable during the year is considered as Capital Receipt and is credited to Capital Reserve amounting to Rs. 3,008,030/-.

6. Tangible Fixed Assets namely Land, Factory Shed & Building and Plant & Machinery acquired upto 31st March 2009 were revalued on 1st April 2009. As a result of revaluation, Revaluation Reserve was created amounting to Rs. 7,832,375,428/- , and additional depreciation of Rs. 408,899,018/- (Previous Year Rs. 408,899,966/-) provided on increased amount of assets due to revaluation computed on the basis of straight line method has been adjusted from Revaluation Reserve.

7. Excise duty in respect of finished goods lying in factory premises and custom duty on goods lying in custom bonded warehouse are provided and included in the valuation of inventory. This accounting treatment has no impact on the profit for the year. Credit of taxes and duties availed is accounted for by reducing the purchase cost of the materials and fixed assets.

8. The company owes Rs. 3,427,545/- (Previous Year Rs. 736,497/-) to Micro and Small Enterprises which are outstanding for more than 45 days as at March 31, 2014. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company. The Auditors have relied upon the same.

9. The company has given interest free loan of Rs. 58.60 crores during the previous years to Maharashtra Seamless Limited Employee Welfare Trust which had been formed with the sole objective of employee welfare.

10. During the year the company made a contribution to political party (Bhartiya Janta Party).

11. In the opinion of the company, the value on realisation of current assets, loans & advances in the ordinary course of the business shall not be less than the amount at which they are stated in the Balance Sheet.

# Earlier the company was having a joint venture agreement with Hydril Jindal International Pvt. Ltd. which was discontinued during the financial year w.e.f 29th August, 2013 as the stake of Hydril Company Lp, USA in Hydril Jindal International Pvt. Ltd. was acquired by another company, due to this change the new company became as associate company. Further name of the company has been changed to Jindal Premium Connections Pvt. Ltd.

## Earlier the company was holding 49% with Dev Drilling Pte. Ltd. and having status of JV Company. However, during the year due to change in stake it becomes an associate company.

12. Gondkhari Coal Mining Ltd. (Joint Venture Company) & Jindal Premium Connection Pvt. Ltd. (Formally known as Hydril Jindal International Pvt. Ltd.) (Associate Company) had not paid interest on loan due to inadequacy of profit nor the company had charged / provides the interest during the year. Management is considering loan and investments made in the companies as good and recoverable.

13. The Loss of Foreign Exchange Fluctuation (Net) Rs. 51,488,189/- (Previous Year Gain Rs. 62,830,248/-) ,as shown in Profit & Loss Account, has been arrived at after considering loss of Rs. 93,400,085/- (Previous Year Rs. 103,196,743/-) and gain of Rs. 41,911,896/- (Previous Year Rs. 166,026,991/-) .Further, mark to market gain/(loss) has been recognised by the company of Rs. Nil (Previous Year Rs. 2,662,384/- ) as specified in Accounting Standard 30" Financial Instruments: Recognition and Measurement" issued by ICAI.

14. a) The Accounting Standard 15 (Revised 2005) have been made applicable from F.Y. 2007-08, the requisite information and disclosure have been given separately for this year and previous year.

b) The employees'' gratuity fund scheme managed by LIC of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognised in the same manner as gratuity.

15. Segment Reporting Policies

Identification of Segments Primary Segment

Business segment: The Company''s operating businesses are organised and managed separately according to the nature of products, with each segment representing a strategic business unit that offers different products. The two identified segments are Steel Pipes & Tubes and Power - Electricity.

Inter Division transfers of goods, as marketable products produced by separate divisions of the company for captive consumption are made as if sales were to third parties at current market prices and are included in turnover.

16. Related Parties Disclosures as per Accounting Standard - 18.

List of Related Parties with whom transactions have taken place during the year:

a) Joint Venture Company

Gondkhari Coal Mining Ltd.

b) Subsidiary Companies (Wholly owned)

Maharashtra Seamless (Singapore) Pte. Ltd.

Maharashtra Seamless Finance Ltd.

Discovery Oil & Mines Pte. Ltd.

c) Associate Companies

Jindal Pipes (Singapore) Pte. Ltd.

Star Drilling Pte. Ltd.

Jindal Premium Connection Pvt. Ltd.

(Formally known as Hydril Jindal International Pvt. Ltd.)

Dev Drilling Pte. Ltd.

d) Key Management Personnel

Shri Saket Jindal Shri S. P. Raj

e) Relatives of Key Management Personnel

Shri D.P. Jindal Smt. Savita Jindal Shri Raghav Jindal Smt. Rachna Jindal Smt. Shruti Raghav Jindal

17. Paise have been rounded off to the nearest rupee.

18. Previous year figures have been regrouped / recast, where necessary, to conform to the current year figures.


Mar 31, 2013

1.1 CONTINGENT LIABILITIES

a) Letter of Credit - Rs. 391,604,808/- (Previous Year Rs. 2,589,174,373/-)

b) Guarantees: Bank & Others - Rs. 6,585,365,409/- (Previous Year Rs. 2,823,979,013/-)

c) Sales Tax Demand under Appeal - Rs. 465,199/- (Previous Year Rs. 465,199/-)

d) Income Tax Demand under Appeal - Rs. 453,210/- (Previous Year Rs. 3,558,098/- )

e) Excise Duty Demand under Appeal - Rs. 190,325,905/- (Previous Year Rs. 190,325,905/-)

f) Indian Oil Corporation Ltd. (IOCL) had raised a claim of Rs. 179,848,064/- during the financial year 2008-09 & against this claim a performance bank guarantee of Rs. 85,279,100/- was given to IOCL, which was realized by them, and an equivalent amount is charged in the Profit & Loss Account in financial year 2008-09. The matter is still under dispute and arbitration proceeding is going on. Any further demand, if any, will be provided for on the date of final settlement.

1.2 The company has pledged 4,500,000 Equity Shares of USD 1 each held in Jindal Pipes (Singapore) Pte Ltd in favour of Standard Chartered Bank (Hong Kong) Limited acting as Security Agent towards Loan availed by Associate Company Jindal Pipes (Singapore) Pte Ltd.

1.3 The company has imported Capital Goods under the Export Promotion Capital Goods (EPCG) scheme of the Government of India, at concessional rate of duty against the Legal Undertaking (LUT) to fulfil Exports obligations. The duty saved on such import of capital goods during the year amounting to Rs. 37,139,095/- (Previous Year Rs. 28,941,186/-) and for this the company is under an obligation to export goods amounting to Rs. 222,834,570/- (Previous Year Rs. 173,647,114/-), within a period of eight years, commencing from the date of issue of licenses. The company has, however, fulfilled, the export obligation till date to the extent of Rs. 222,834,570/- (Previous Year Rs. 173,647,114/-), for which the LUTs are to be discharged.

Pending fulfilment of such future export obligations entails Custom Department a right to enforce the LUT executed by us to the extent of Rs. Nil (Previous Year Rs. Nil).

1.4 Estimated amount of contracts remaining to be executed on Capital Account, net of advances, and not provided for Rs.119,296,437/- (Previous Year Rs. 144,064,020/-).

1.5 Tangible Fixed Assets namely Land, Factory Shed & Building and Plant & Machinery acquired upto 31st March 2009 were revalued on 1st April 2009. As a result of revaluation, Revaluation Reserve was created amounting to Rs. 7,832,375,428/-, and additional depreciation of Rs. 408,899,966/- (Previous Year Rs. 408,934,046/-) provided on increased amount of assets due to revaluation computed on the basis of straight line method has been adjusted from Revaluation Reserve.

1.6 Excise duty in respect of finished goods lying in factory premises and custom duty on goods lying in custom bonded warehouse are provided and included in the valuation of inventory. This accounting treatment has no impact on the profit for the year. Credit of taxes and duties availed is accounted for by reducing the purchase cost of the materials and fixed assets.

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

1.8 The Board of Directors at its meeting held on 8th April, 2013 had approved buy back of shares of the company through open market purchase for an amount upto Rs. 100 crores at a maximum price of Rs. 300/- per share.

1.9 The company has given interest free loan of Rs. 11.60 crores during the year (Previous Year Rs. 48 crores) to Maharshtra Seamless Limited Employee Welfare Trust which had been formed with the sole objective of employee welfare.

1.10 In the opinion of the company, the value on realisation of current assets, loans & advances in the ordinary course of the business shall not be less than the amount at which they are stated in the Balance Sheet.

1.11 Financial reporting of Interest in Joint Ventures as per Accounting Standard - 27:

The company''s share of the Assets and Liabilities as on 31st March 2013 and share of Income & Expenses for the Year Ended on that date in respect of Joint Venture Companies (on the basis of their unaudited statement of accounts) are given below:

1.12 The Gain of Foreign Exchange Fluctuation (Net) Rs. 62,830,248/- (Previous Year Loss Rs. 122,816,772/-) ,as shown in Profit & Loss Account, has been arrived at after considering loss of Rs. 103,196,743/- (Previous Year Rs. 195,620,698/-) and gain of Rs. 166,026,991/- (Previous Year Rs. 72,803,926/-). Further, mark to market gain/(loss) has been recognised by the company of Rs. 2,662,384/- (Previous Year Rs. Nil ) as specified in Accounting Standard 30" Financial Instruments: Recognition and Measurement" issued by ICAI.

1.13 a) The Accounting Standard 15 (Revised 2005) have been made applicable from F.Y. 2007 - 08, the requisite information and disclosure have been given separately for this year and previous year.

b) The employees'' gratuity fund scheme managed by LIC of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognised in the same manner as gratuity.

1.14 SEGMENT REPORTING POLICIES

Identification of Segments

Primary Segment

Business Segment: The Company''s operating businesses are organised and managed separately according to the nature of products, with each segment representing a strategic business unit that offers different products. The two identified segments are Steel Pipes & Tubes and Power - Electricity.

Inter Division transfers of goods, as marketable products produced by separate divisions of the company for captive consumption are made as if sales were to third parties at current market prices and are included in turnover.

1.15 Related Parties Disclosures as per Accounting Standard - 18.

List of Related Parties with whom transactions have taken place during the year:

a) Joint Venture Companies

Hydril Jindal International Pvt. Ltd.

Gondkhari Coal Mining Ltd.

Dev Drilling Pte. Ltd. w.e.f 12.02.2013

b) Subsidiary Companies (Wholly owned)

Maharashtra Seamless (Singapore) Pte. Ltd.

Maharashtra Seamless Finance Ltd.

c) Associate Companies

Jindal Pipes (Singapore) Pte. Ltd.

Star Drilling Pte. Ltd.

d) Key Management Personnel Shri Saket Jindal

Shri S.P. Raj

e) Relatives of Key Management Personnel Shri D.P. Jindal

Smt. Savita Jindal Shri Raghav Jindal Smt. Rachna Jindal Smt. Shruti Raghav Jindal

1.16 Paise have been rounded off to the nearest rupee.

1.17 Previous year figures have been regrouped / recast, where necessary, to conform to the current year figures.


Mar 31, 2012

1.1 CONTINGENT LIABILITIES

a) Letters of Credits - Rs. 2,193,035,098/- (Previous Year Rs. 177,3 10,078/-)

b) Bank Guarantees & Others-Rs. 1,737,289,663/-(Prev,ous Year Rs. 1,753,464,851/-)

c) Sales Tax Demand under Appeal - Rs. 465,199/- (Previous Year Rs. 465,199/-)

d) Income Tax Demand under Appeal - Rs. 3,558,098/- (Previous Year Rs. 3,558,098/-)

e) Excise Duty Demand under Appeal - Rs. 190,325,905/- (Previous Year Rs. 166,1 17,1 33/-)

f) Indian CI Corporation Ltd. (IOCL) had raised a claim of Rs. I79,848,064/- during the financial year 2008-09 & against the above mentioned claim a performance bank guarantee of Rs. 85,279,100/- was given to IOCL, which was realized by them, and an equivalent amount's charged in the Profit & Loss Account in financial year 2008-09. The matter is still under dispute and arbitration proceeding is going on. Any further demand, if any, will be provided for on the date of final settlement.

1.2 The company has imported Capital Goods under the Export Promotion Capital Goods (EPCG) scheme of the Government of India, at concessional rate of duty against the Legal Undertaking (LUT) to fulfil Exports obligations. The duty saved on such import of capital goods during the year amounting to Rs. 28,941,186/- (Previous Year Rs. 83,503 025/-) and for this the company s under an obligation to export goods amounting to Rs. 173,647,1 14/- (Previous Year Rs. 501,01 8,150/-), withm a period of eight years, commencing from the date of issue of licences. The company has, however, fulfilled, the export obligation till date to the extent of Rs. 173,647,1 14/- (Previous Year Rs. 501,01 8,150/-), for which the LUTs are to be discharged.

Pending fulfilment of such future export obligations entails Custom Department a right to enforce the LUT executed by us to the extent ofRs. Nil (Previous Year Rs. Nil).

1.3 Estimated amount of contracts remaining to be executed on Capital Account, net of advances, and not provided for Rs. 144,064,020/- (Previous YearRs. 276,485,679/-).

1.4 Tangible Fixed Assets namely Land, Factory Shed & Building and Plant & Machinery acquired upto 31st March 2009 were revalued on I st April 2009. As a result of revaluation, Revaluation Reserve was created amounting to Rs. 7,832,375,428/- , and additional deprecation of Rs. 408,934,046/- (Previous Year Rs. 408,934,046/-) provided on increased amount of assets due to revaluation computed on the basis of straight line method has been adjusted from Revaluation Reserve.

1.5 Excise duty in respect of finished goods lying in factor/ premises and custom duty on goods lying in custom bonded warehouse are provided and included in the valuation of inventor/. This accounting treatment has no impact on the profit for the year. Credit of taxes and duties availed is accounted for by reducing the purchase cost of the materials and fixed assets.

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

1.7 The Company has given mterst free loan of Rs. 48 crores during the year to Maharashtra Seamless Limited Employee Welfare Trust which had been formed with the sole objective of employee welfare .

1.8 In the opinion of the company, the value on realisation of Current Assets, Loans & Advances in the ordinary course of the business shall not be less than the amount at which they are stated in the Balance Sheet.

1.9 The Foreign Exchange Fluctuation (Net) Rs. 122,81 6,772/- ,as shown in the Note No. 2.24 of Profit & Loss Account, has been arrived at after considering loss ofRs. 195,620,698/- and gam of Rs. 72,803,926/- Further, no mark to market gam/ (loss) has been recognised as the company has not entered into any transaction of financial instrument as specified in Accounting Standard 30 "Financial Instruments : Recognition and Measurment" issued by ICAI.

1.10 a) The Accounting Standard 15 (Revised 2005) have been made applicable from FY. 2007-08, the requisite information and disclosure have been given separately for this year and previous year.

b) The employees' gratuity fund scheme managed by LIC of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognised in the same manner as gratuity

1.11 SEGMENT REPORTING POLICIES

Identification of Segments

Primary Segment

Business segment: The Company's operating businesses are organised and managed separately according to the nature of products, wrth each segment representing a strategic business unit that offers different products. The two identified segments are Steel Pipes & Tubes and Power - Electricity

Inter Division transfers of goods, as marketable products produced by separate divisions of the company for captive consumption are made as if sales were to third parties at current market prices and are included in turnover.

1.12 Related Parties Disclosures as per Accounting Standard - 18.

List of Related Parties with whom transactions have taken place during the year:

a) jointVenture Companies

Hydnljindal International Pvt. Ltd, Gondkhar, Coal Mining Ltd,

b) Subsidiary Companies (Wholly owned)

Maharashtra Seamless (Singapore) Pte Ltd. w.e.f 06/06/2011 Maharashtra Seamless Finance Ltd. w .e.f 08/02/2012

c) Associate Company

jindal Pipes (Singapore) Pte Ltd. w.e.f 06/06/2011

d) Key Management Personnel

Shri.Saket jindal Shri, S. P. Raj

e) Relatives of Key Management Personnel

Shri D.P.jindal Smt Savita jindal Shri, Raghav jindal Smt. Rachna jindal Smt Shruti jindal

1.13 Paise have been rounded off to the nearest rupee,

1.14 The figures of the previous year have been regrouped / recast, where necessary, to conform to the current year figures including those on account of adoption of Revised Schedule VI of the Companies Act, 1956.


Mar 31, 2011

I. CONTINGENT LIABILITIES

a) Letters of Credit - Rs. 177,310,078/- (Previous Year Rs. 401,721,656/-)

b) Bank Guarantees & Others - Rs. 1,753,464,851 /-(Previous Year Rs. 1,284,061,367/-)

c) Sales Tax Demand under appeal - Rs. 465,199/- (Previous Year Rs. 465,199/-)

d) Income Tax Demand under appeal - Rs. 3,558,098/- (Previous Year Rs. 3,558,098/-)

e) Excise Duty Demand under Appeal - Rs. 166,117,133/- (Previous Year Rs. 138,564,315/-)

f) Indian Oil Corporation Ltd. (IOCL) had raised a claim of Rs. 179,848,064/- during the financial year 2008-09 & against the above mentioned claim a performance bank guarantee of Rs. 85,279,100/- was given to IOCL, which was realized by them, and an equivalent amount is charged in the Profit & Loss Account in financial year 2008-09. The matter is still under dispute and arbitration proceeding is going on. Any further demand, if any, will be provided for on the date of final settlement.

2 The company has imported Capital Goods under the Export Promotion Capital Goods (EPCG) scheme of the Government of India, at concessional rate of duty against the Legal Undertaking (LUT) to fulfil Exports obligations. The duty saved on such import of capital goods during the year is Rs. 83,503,025/- (Previous Year Rs. 83,693,801/-) and for this the company is under an obligation to export goods amounting to Rs. 501,018,150/- (Previous Year Rs. 592,423,145/-), with a period of eight year, commencing from the date of issue of licences. The company has, however, fulfilled, the required export obligation, However, the LUTs are yet to be discharged.

Pending fulfilment of such future export obligations entails Custom Department a right to enforce the LUT executed by us

3. Estimated amount of contracts remaining to be executed on Capital Account and not provided for (net of advances) Rs. 276,485,679/- (Previous Year Rs. 35 1,602,260/-).

4 Assets namely Land, Factory Shed & Building and Plant & Machinery acquired upto 3 1st March, 2009 were revalued or1 st April, 2009. As a result of revaluation, Revaluation Reserve was created amounting to Rs. 7,832,375,428/- , and additiona deprecation of Rs. 408,934,046/- (Previous Year Rs. 408,934,046/-) provided on increased amount of assets due to revaluatior computed on the basis of straight line method has been adjusted from Revaluation Reserve during the year.

5. Excise duty in respect of finished goods lying in factory premises are provided and included in the valuation of inventory. This accounting treatment has no impact on the profit for the year. Credit of taxes and duties availed is accounted for by reducing the purchase cost of the materials and fixed assets.

6. There are no Micro and Small Enterprises, to whom the company owes dues, which are outstanding for more than 45 days as at March 31, 201 I. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company. The Auditors have relied upon the same.

7. Stock includes material in transit

8. In the opinion of the company, the value on realisation of current assets, loans & advances in the ordinary course of the business shall not be less than the amount at which they are stated in the Balance Sheet.

9. The amount of Exchange Difference (Net):

a) The Foreign Exchange Fluctuation (Net - of) Rs. 40,038,912/- (Previous Year Rs. 183,784,811 /-) ,as shown in the Schedule - 13 of Profit & Loss Account, has been arrived at after considering gam/ (losses) on account of mark to market adjustment of Rs. Nil (Previous Year (Rs. 1,91 1,009/-)) on forward cover contracts.

c) Foreign Currency Exposure those are not hedged: Rs. Nil (Previous Year Rs. Nil)

10. a) The Accounting Standard -15 (Revised 2005) have been made applicable from F.Y. 2007-08, the requisite information and disclosure have been given separately for this year and previous year.

b) The employees' gratuity fund scheme managed by LIC of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognised in the same manner as gratuity.

11. Segment Reporting

Information about Business Segment

The Company's operating businesses are organised and managed separately according to the nature of products, with each segment representing a strategic business unit that offers different products. The two identified segments are Steel Pipes & Tubes and Wind Power.

12. Related Parties Disclosures as per Accounting Standard - 18.

List of Related Parties with whom transactions have taken place during the year:

a. joint Venture Companies

Hydnljmdal International Pvt. Ltd. Gondkhar, Coal Mining. Ltd.

b. Key Management Personnel Shri Saketjmda

Shri S. P. Raj

c. Relatives of Key Management Personnel ShnD.P.jmdal

Smt Savitajmda

ShnRaghavjmda

Smt. Rachnajmda

13. In compliance with the AS - 22 relating to Accounting for Taxes on Income issued by The Institute of Chartered Accountants of India, the company has adjusted the deferred tax liability (net) arising out of timing differences accruing during the year aggregating to Rs. 13,994,820/- in the Profit & Loss Account.

14. Further, Disclosure as required, under Clause 32 of Listing Agreement requirement relating to loans / advances / investments, is not applicable, as the company does not have any parent / subsidiary company.

15. Additional information pursuant to the provisions of paragraph 3 & 4 of part II of Schedule VI to the Companies Act, 1956.

16. Paise have been rounded off to the nearest rupee.

17. Previous years' figures have been re-grouped/ re-arranged/ re-class, field wherever considered necessary.

18. Schedule 1 to 20 are annexed to and form part of the Statement of Accounts.


Mar 31, 2010

1. CONTINGENT LIABILITIES

a) Letter of Credit - Rs. 401,721,656/- (Previous Year Rs. 383,197,500/-)

b) Bank Guarantees & Others - Rs. 1,284,061,367/- (Previous Year Rs. 824,1 88,827/-)

c) Sales Tax Demand under appeal - Rs. 465,199/- (Previous Year Rs. 465,199/-)

d) Income Tax Demand under appeal - Rs. 3,558,098/- (Previous Year Rs. Nil)

e) Excise Duty Demand under Appeal - Rs. 138,564,315/- (Previous Year Rs. 96,060,109/-)

f) Indian Oil Corporation Ltd. (IOCL) had raised a claim of Rs. 179,848,064/- during the financial year 2008-09 & against the above mentioned claim a performance bank guarantee of Rs. 85,279,100/- was given to IOCL, which was realized by them, and an equivalent amount is charged in the Profit & Loss Account in financial year 2008-09. The matter is still under dispute and arbitration proceeding is going on. Any further demand, if any, will be provided for on the date of final settlement

2. The company has imported Capital Goods under the Export Promotion Capital Goods (EPCG) scheme of the Government of India, at concessional rate of duty against the Legal Undertaking (LUT) to fulfil Exports obligations. The duty saved on such import of capital goods during the year amounting to Rs. 83,693,801/- (Previous Year Rs. 162,629,058/-) and for this the company is under an obligation to export goods amounting to Rs. 592,423,145/- (Previous Year Rs. 1,301,032,469/-), within a period of eight years, commencing from the date of issue of licences. The company has, however, fulfilled, the export obligation till date to the extent of Rs. 592,423,145/- (Previous Year Rs. 118,333,384/-), for which the LUTs are to be discharged.

Pending fulfilment of such future export obligations, entails Custom Department a right to enforce the LUT executed by us to the extent of Rs. Nil (Previous Year Rs. 1, 182,699,085/-).

3. Estimated amount of contracts remaining to be executed on Capital Account, net of advances, and not provided for Rs. 351,602,260/- (Previous Year Rs. 374,843,571/-).

4. Assets namely Land, Factory Shed & Building and Plant & Machinery acquired upto 31 st March, 2009 were revalued on 1st April, 2009. As a result of revaluation, Revaluation Reserve was created amounting to Rs. 7,832,375,428/-, and additional deprecation of Rs. 408,934,046/- provided on increased amount of assets due to revaluation computed on the basis of straight line method has also been adjusted to Revaluation Reserve.

5. Excise duty in respect of finished goods lying in factor/ premises and custom duty on goods lying in custom bonded warehouse are provided and included in the valuation of inventory. This accounting treatment has no impact on the profit for the year. Credit of taxes and duties availed is accounted for by reducing the purchase cost of the materials and fixed assets.

7. There are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at 31 st March, 2010. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company. The Auditors have relied upon the same

8. Stock includes material in transit

9. In the opinion of the company, the value on realisation of current assets, loans & advances in the ordinary course of the business shall not be less than the amount at which they are stated in the Balance Sheet.

10. The amount of Exchange Difference (Net);

a) The Foreign Exchange Fluctuation (Net - of) Rs.183,784,81 I/- (Previous Year Rs. 132,735,839/-), as shown in the Schedule - 13 of Profit & Loss Account, has been arrived at after considering gain / (losses) on account of mark to market adjustment of Rs 1,91 1,009/- (Previous Year (Rs. 279,059,000/-)) on forward cover contracts.

11. a) The Accounting Standard 15 (Revised 2005) have been made applicable from F.Y. 2007-08, the requisite information and disclosure have been given separately for this year and previous year.

b) The employees gratuity fund scheme managed by LIC of India is a defined benefit plan. The present value of obligation ,s determined based on actuarial valuation using the projected unit credit method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognised in the same manner as gratuity.

Disclosure as per Accounting Standard 15:

12. Segment Reporting Policies

Identification of Segments

Primary Segment

Business segment: The Companys operating businesses are organised and managed separately according to the nature of products, with each segment representing a strategic business unit that offers different products. The two identified segments are Steel Pipes & Tubes and Wind Power.

Inter Division transfers of goods, as marketable products produced by separate divisions of the company for captive consumption are made as if sales were to third parties at current market prices and are included in turnover.

13. Related Parties Disclosures as per Accounting Standard - 18.

List of Related Parties with whom transactions have taken place during the year:

a. joint Venture Companies

Hydnl jindal International PvL Ltd,

Gondkhari, Coal Mining. Ltd,

b. Key Management Personnel

Shri Saket jindal

Shri , S. P. Raj

c. Relatives of Key Management Personnel Shri D.P. jindal

Smt Savita jindal

Shri, Raghav jindal

Smt. Rachna jindal

14. In compliance with the AS - 22 relating to Accounting for Taxes on Income issued by The Institute of Chartered Accountants of India the company has adjusted the deferred tax liability (net) arising out of timing differences accruing during the year aggregating to Rs. 6,976,530/- in the Profit & Loss Account.

15. Further, Disclosure as required, under Clause 32 of Listing Agreement requirement relating to loans/advances/investments are not applicable, as the company does not have any parent/ subsidiary company.

16. Paise have been rounded off to the nearest rupee.

17. Previous years figures have been re-grouped/re-arranged/ re-classified wherever considered necessary.

18. Schedule I to 20 are annexed to and form part of the Statement of Accounts.

 
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