Mar 31, 2016
Terms/ rights attached to Equity Shares
The company has only one class of Equity Shares having a nominal 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.
In the event of liquidation of the company, the holders of Equity Shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the shareholders.
Terms/ rights attached to Preference Shares
The company has only one class of Preference Shares (i.e. 6% Non Cumulative Redeemable Preference Shares) having a nominal value of ''10/- per share. The preference shareholders shall have the right to vote on any resolution of the Company directly affecting their rights. The company declares and pays preferential dividends in Indian rupees.
The Preference Share of the Company are non cumulative in nature and therefore in case the Company does not declare dividend in any particular year, dividend right gets lapsed and is not eligible for carry forward in future years.
Preference shares are redeemable within 20 years from the date of allotment at a price to be decided by the Board of Directors at the time of redemption. The said preference shares may be redeemed at a premium not exceeding Rs. 90/per share.
In the event of liquidation of the Company, the holders of Preference Shares will be entitled to receive assets of the company, before its distribution to equity shareholders. The distribution will be in proportion to the number of preference shares held by the preference shareholders.
* During the year, as per the requirement under Schedule II to the Companies Act 2013, vide Notification dated 29th August 2014, the Company based on technical advice identified significant parts & components of the main asset having different useful lives as compared to the main asset and consequently revised the estimated useful lives of certain Plant and Machinery and Electrical Installations w.e.f. from 1st April 2015. Accordingly depreciation of Rs. 26.46 lacs on account of assets whose useful life is already exhausted on 1st April, 2015 has been adjusted against Surplus in statement in Profit and Loss.
Terms and conditions attached to Short term borrowings
Cash Credit and Short term loan facilities and Foreign currency loans from banks are secured by hypothecation of raw materials, finished goods, goods under process, stores and spares, book debts etc. (both present and future), second charge over the entire fixed assets of the Company and personal guarantees of Puran Mal Agrawal (Chairman2), Suresh Kumar Agrawal, Saket Agrawal and Manish Agrawal (Directors of the Company).
c) Depreciation of'' 26.46 lacs on account of assets whose useful life is already exhausted on 1 st April, 2015 has been adjusted against surplus in Statement of Profit and Loss. Pursuant to requirements under Schedule II to companies act, 2013 vide Notification dated 29th August 2014, the Company based on technical advice, identified significant parts & components of the main asset having different useful lives as compared to the main asset and consequently revised the estimated useful lives of certain Plant and Machinery and Electrical Installations w.e.f from 1st April, 2015.
* Includes Rs. 4,949.90 lacs (Rs. 18,017.01 lacs) capitalized from Capital Work in progress (CWIP)
** Represents the amount of borrowing cost transferred from CWIP
* The details of security for the secured loans are as follows:
In terms of the Corporate Debt Restructuring (CDR) Package, effective from October 1, 2014, the Loans considered under the said package have been categorized as Term Loans, Working Capital Term Loans, Funded Interest Term Loans which are secured as under:
a First hypothecation charge on plant, machinery, fixed assets, and other movable assets, both present and future of the company, on pari-passu basis with all term lenders and equitable mortgage of factory land & building on pari passu basis with all Term Lenders.
b Second charge on entire current assets of the company ranking pari passu with other member banks of the consortium. c Pledge of 100% of Promoter''s Shareholding representing 71.90% of the paid up capital of the company as on 30.09.2014 has been executed in favour of the CDR lenders. d Lien on all Bank Accounts including the Trust and Retention Account.
Further, the above facilities are also covered by the following:
Irrevocable, unconditional personal guarantee of promoters (Mr. Puran Mal Agrawal, Mr. Suresh Kumar Agrawal, Mr. Saket Agrawal, and Mr. Manish Agrawal) of the Company.
Registered mortgage of 150.50 acres of segregated agricultural land. As per valuation report of December 2014, realizable value of the property is Rs. 12.41 Crores. The said land shall be converted into industrial land by 31.03.2016 failing which alternate security will be provided by the Company.
Irrevocable, unconditional Corporate Guarantee of Ilex Private Limited.
** Hire purchases obligations are secured by hypothecation of vehicles purchased under the respective agreements.
** The Hon''ble High Court of Judicature at Madras, vide its Order dated June 25, 2015, has sanctioned the Scheme of Arrangement among IDFC Limited (" Transferor Company") and IDFC Bank Limited ("Transferee Company") and their respective shareholders and creditors under section 391 to 394 to the Companies Act, 1956 (" Demerger Scheme").
Pursuant to the Demerger Scheme, IDFC Bank Limited has issued and alloted to the shareholders of IDFC Limited as on the record date i.e., October 5, 2015, one (1) equity share having a face value of '' 10 each of IDFC Bank Limited for every one (1) equity share held by them in IDFC Limited, each equity share being fully paid-up.
* Fixed deposits with a carrying amount of Rs. 285.93 lacs (Rs. 189.73 lacs) are used towards security given against the Bank Guarantees & Company''s Letter of Credits (LC''s) issued by the banks and Rs. 5.74 lacs (Rs. 5.74 lacs) as security deposit issued to sales tax department on behalf of the Company.
1. Other Expenses include Rs. 129.97 Lacs spent towards various schemes of Corporate Social Responsibility as prescribed under section 135 of Companies Act,2013.
2. Gratuity and Other Post Retirement Benefit Plans
The Company provides gratuity benefits which are funded with Life Insurance Corporation of India in the form of qualifying insurance policy. Leave encashment benefits is an unfunded plan of the Company.
The estimate of future salary increase, considered in actuarial valuation, takes account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employee market.
3. Segment Information
The Company is engaged in manufacturing of "Iron and Steel". Consequently it has one reportable business segment e.g. "Iron and Steel". The analysis of geographical segments is based on the area in which the customers of the Company are located.
The Company has common fixed assets for producing goods for domestic and overseas markets which are located at only one place i.e. Raigarh. Hence, separate figures for fixed assets / additions to fixed assets cannot be furnished. Export debtors at the year end amounts to Rs. 846.82 lacs (Rs. 176.49 lacs).
4. Operating Lease Company as Lessee
The Company has lease agreement for various premises which are in the nature of Operating Lease. There are no restrictions placed upon the company by entering into these leases.
5. Interest in Joint Venture
The Company has a 14.90 % (14.90%) interest in Madanpur South Coal Company Limited (a Joint Venture Company), incorporated in India.
The Company''s proportionate share of the capital commitments in this Joint Venture amounts to '' Nil ('' Nil).
6. Impairment of Assets
On the basis of physical verification of assets and cash generation capacity of those assets, in the management perception, there is no impairment of assets as on 31st March 2016.
It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above pending resolution of the respective proceedings as it is determinable only on receipt of judgments/decisions pending with various forums/authorities.
There is no possibility of any reimbursement on any of the cases listed above
* The Company has given guarantee to ICICI Bank in respect of loan taken by AA ESS Tradelinks Private Limited amounting to Rs. 7,500 lacs (Rs. 7,500 lacs) on 31st May 2011. The management believes that the terms of the guarantee given are not prejudicial to the interest of the Company.
7. Valuation of Current Assets, Loans & Advances and Current Liabilities
In the opinion of the management, current assets (including trade receivables), loans and advances and current liabilities (including trade payables) have the value at which these are stated in the Balance Sheet, unless otherwise stated, and adequate provisions for all known liabilities have been made and are not in excess of the amount reasonably required.
8. As per information available with the Company, there are no suppliers covered under "Micro, Small and Medium Enterprise Development Act, 2006". As a result, no interest provision/payment has been made by the Company to such creditors, if any, and no disclosure thereof is made in the accounts.
9. The amount due from related parties are good and hence no provision for doubtful debts in respect of dues from such related parties is required. No amount has been written back / written off during the year in respect of due to / from related parties.
10. The Company has a process whereby periodically all long term contracts (including derivative contracts) are assessed for material foreseeable losses. At the year end, the Company has reviewed and ensured that adequate provision as required under any law/accounting standards for material foreseeable losses on such long term contracts (including derivative contracts) has been made in the books of accounts.
11. The previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures 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. Bifurcation of assets and liabilities into Non-Current and Current for preparation of financial statements has been made by the management.
Mar 31, 2015
1. Corporate Information
MSP Steel & Power Limited ('the Company') is a public company
domiciled in India and is listed on the BSE Limited (BSE) and the
National Stock Exchange of India Limited (NSE). The Company is engaged
in the manufacture and sale of iron and steel products and generation
and sale of power. The Company has manufacturing plant in Raigarh,
Chhattisgarh.
Terms/Rights attached to Equity Shares
The company has only one class of Equity Shares having a nominal 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.
In the event of liquidation of the company, the holders of Equity
Shares will be entitled to receive remaining assets of the company,
after distribution of all preferential amounts. The distribution will
be in proportion to the number of Equity Shares held by the
shareholders.
Terms/Rights attached to Preference Shares
The company has only one class of Preference Shares (i.e. 6% Non
Cumulative Redeemable Preference Shares)
having a nominal value of Rs. 10/- per share. The Preference Shareholders
shall have the right to vote on any resolution of the company directly
affecting their rights. The company declares and pays preferential
dividends in Indian rupees.
The Preference Share of the company are Non Cumulative in nature and
therefore in case the company does not declare dividend in any
particular year, dividend right gets lapsed and is not eligible for
carry forward in future years.
Preference Shares are redeemable within 20 years from the date of
allotment at a price to be decided by the Board of Directors at the
time of redemption.
In the event of liquidation of the company, the holders of Preference
Shares will be entitled to receive assets of the company, before its
distribution to equity shareholders. The distribution will be in
proportion to the number of Preference Shares held by the preference
shareholders.
Terms and Conditions attached to Short Term Borrowings
Cash Credit and Short Term Loan facilities and Foreign Currency Loans
from Banks are secured by hypothecation charge of entire current assets
of the company both present and future on pari passu basis with other
consortium member banks, second charge on the entire fixed assets of
the Company ranking pari passu with other member banks of the
consortium and personal guarantees of Puran Mal Agrawal, Suresh Kumar
Agrawal, Saket Agrawal and Manish Agrawal (Promoters of the Company).
*The details of Secured loans are as follows:
In terms of the Corporate Debt Restructuring (CDR) Package, effective
from October 1, 2014, the Loans considered under the said package have
been categorised as Term Loans, Working Capital Term Loans, Funded
Interest Term Loans which are secured as under :
a. First hypothecation charge on plant, machinery, fixed assets, and
other movable assets, both present and future of the company, on
pari-passu basis with all term lenders and equitable mortgage of
factory land & building on pari passu basis with all Term Lenders.
b. Second charge on entire current assets of the company ranking pari
passu with other member banks of the consortium.
c. Pledge of 100% of Promoter's Shareholding representing 71.90% of
the paid up capital of the company as on 30.09.2014 has been executed
in favour of the CDR lenders.
d. Lien on all Bank Accounts including the Trust and Retention Account.
Further, the above facilities are also covered by the following:
Irrevocable, unconditional personal guarantee of promoters (Mr. Puran
Mal Agrawal, Mr. Suresh Kumar Agrawal, Mr. Saket Agrawal, and Mr.
Manish Agrawal) of the Company.
Registered mortgage of 150.50 acres of segregated agricultural land. As
per valuation report of December 2014, realisable value of the property
is Rs. 12.41 Crores. The said land shall be converted into industrial
land by 31.03.2016 failing which alternate security will be provided by
the Company.
Irrevocable, unconditional Corporate Guarantee of M/s. Ilex Private
Limited.
**Hire Purchase obligations are secured by hypothecation of vehicles
purchsed under the respective agreement.
2. Other expenses include Rs. 135.36 lacs spent towards various schemes
of Corporate Social Responsibility as prescribed under section 135 of
the Companies Act, 2013.
3. Gratuity and Other Post Retirement Benefit Plans
The Company provides gratuity benefits which are funded with Life
Insurance Corporation of India in the form of qualifying insurance
policy. Leave encashment benefits is an unfunded plan of the Company.
Expenses recognized in the statement of profit and loss / Pre-operative
and Trial run expenses (Pending allocation) for respective years are as
follows: Â
4. Segment Information
The Company is engaged in manufacturing of "Iron and Steel".
Consequently it has one reportable business segment e.g. "Iron and
Steel". The analysis of geographical segments is based on the area in
which the customers of the Company are located.
The Company has common fixed assets for producing goods for domestic
and overseas markets which are located at only one place i.e. Raigarh.
Hence, separate figures for fixed assets / additions to fixed assets
cannot be furnished. Export debtors at the year end amounts to Rs. 176.49
lacs (Rs. 974.74 lacs).
5. Operating Lease Company as Lessee
The Company has lease agreement for various premises which are in the
nature of Operating Lease. There are no restric- tions placed upon the
company by entering into these leases.
6. Impairment of Assets
On the basis of physical verification of assets and cash generation
capacity of those assets, in the management perception, there is no
impairment of assets as on 31st March 2015.
7. Contingent Liabilities not Provided for in Respect of:
(Rs. in lacs)
As at As at
Particulars 31st March, 31st March,
2015 2014
Excise Matters under dispute/ appeal 2,103.52 1,890.97
Sales Tax & VAT Matters under dispute/
appeal 400.28 130.14
Income Tax Matters under dispute/ appeal 0.55 0.55
CDR Related Liability (Right to Recompense) 278.01 -
Corporate Guarantees given* 2,812.50 4,879.42
It is not practicable for the Company to estimate the timings of cash
outflows, if any, in respect of the above pending resolution of the
respective proceedings as it is determinable only on receipt of
judgements/decisions pending with various forums/authorities.
There is no possibility of any reimbursement on any of the cases listed
above
*The Company has given guarantee to ICICI Bank in respect of loan taken
by AA ESS Tradelinks Private Limited amounting to Rs. 7500 lacs (Rs. 7500
lacs) on 31st May 2011. The management believes that the terms of the
guartantee given are not prejudicial to the interest of the Company.
8. Corporate debt restructuring:
1. MSP Steel & Power Limited (MSPL), as the borrower has availed
various financial facilities from the secured lenders. At the request
of the Borrower, the Corporate Debt Restructuring Proposal (
Proposal') of the Borrower was referred to Corporate Debt
Restructuring Cell ("CDR Cell") by the consortium of senior lenders
led by the State Bank of India (Monitoring Institution). The CDR
Proposal as recommended by State Bank of India, the lead lender and
approved by lenders who are members of CDR Cell hereinafter referred to
as the 'CDR Lenders' was approved by CDR Empowered Group ('CDR
EG') on March 18, 2015 and communicated vide Letter of Approval dated
March 23, 2015, as amended/ modified time to time. The cutoff date for
CDR Proposal was October 01, 2014. The Master Restructuring Agreement
('MRA') between the Borrowers and the CDR Lenders has been
executed, by virtue of which the restructured facilities are governed
by the provisions specified in the MRA having cutoff date of October
01, 2014.
2. The key features of the CDR Proposal are as follows:
a. Repayment of Restructured Term Loans of Rs. 502.98 Crores ( 'RTL')
after moratorium of 8 quarters from cutoff date in 32 structured
quarterly ballooning instalments commencing from December 2016 to
September 2024.
b. Conversion of various irregular portions of Working Capital Limits
of Rs.149.72 Crores into Working Capital Term Loan ('WCTL-I').
Repayment of WCTL-I after moratorium of 8 quarters from cutoff date in
32 structured quarterly ballooning instalments commencing from December
2016 to September 2024.
c. Conversion of devolved financial facilities of Rs. 63.13 Crores into
Working Capital Term Loan ('WCTL-II'). Repayment of WCTL-II after
moratorium of 8 quarters from cutoff date in 32 structured quarterly
ballooning instalments commencing from December 2016 to September 2024.
d. Restructuring of existing fund based and non fund based financial
facilities, subject to renewal and reassessment every year
e. Interest accrued but not paid on various financial facilities till
cutoff date (i.e., 1st October, 2014) shall be converted into Funded
Interest Term Loan ('FITL'). The interest payable on RTL, WCTL-I
and WCTL-II during moratorium period of 8 quarters from cutoff date
also shall be converted to FITL. The repayment of FITL of Rs. 161.52
Crores should be made in 24 structured quaterly ballooning instalments
commencing from December 2016 to September 2022.
f. Waiver of existing events of defaults, penal interest and charges
etc in accordance with MRA
g. Lenders with the approval of CDR EG shall have the right to
recompense the reliefs/ sacrifices/waivers extended by the respective
CDR lenders as per CDR Guidelines.
h. Contribution of Rs. 28.14 Crores in the Company by promoters in lieu
of bank sacrifice in the form of share application/ unsecured loans
which needs to be converted into equity shares/preference shares latest
by 30.09.2015.
3. In case of financial facilities availed from the non-CDR Lenders,
the terms and conditions shall continue to be governed by the
provisions of the existing financing documents.
4. The Borrowers and the CDR Lenders executed a MRA during the year.
The MRA as well as the provisions of the Master Circular on Corporate
Debt Restructuring issued by the Reserve Bank of India, give a right to
the CDR Lenders to get a recompense of their waivers and sacrifices
made as part of the CDR Proposal. The recompense payable by the
borrowers is contingent on various factors including improved
performance of the borrowers and many other conditions, the outcome of
which currently is materially uncertain and hence the proportionate
amount payable as recompense has been treated as a contingent
liability. The aggregate present value of the outstanding sacrifice
made/ to be made by CDR Lenders as per the MRA is approximately Rs.
112.57 Crores for the Company.
9. Valuation of Current Assets, Loans & Advances and Current
Liabilities
In the opinion of the management, current assets (including trade
receivables), loans and advances and current liabilities (including
trade payables) have the value at which these are stated in the Balance
Sheet, unless otherwise stated, and adequate provisions for all known
liabilities have been made and are not in excess of the amount
reasonably required.
10. As per information available with the Company, there are no
suppliers covered under "Micro, Small and Medium Enterprise
Development Act, 2006". As a result, no interest provision/payment
has been made by the Company to such creditors, if any, and no
disclosure thereof is made in the accounts.
11. The amount due from related parties are good and hence no provision
for doubtful debts in respect of dues from such related parties is
required. No amount has been written back / written off during the year
in respect of due to / from related parties.
12. The Company has a process whereby periodically all long term
contracts (including derivative contracts) are assessed for material
foreseeable losses. At the year end, the Company has reviewed and
ensured that adequate provision as required under any law/accounting
standards for material foreseeable losses on such long term contracts
(including derivative contracts) has been made in the books of
accounts.
13. The previous year's figures have been reworked, regrouped,
rearranged and reclassified wherever necessary. Amounts and other
disclosures 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.
Bifurcation of assets and liabilities into Non-Current and Current for
preparation of financial statements has been made by the management.
Mar 31, 2013
NOTE 1. CORPORATE INFORMATION
MSP Steel & Power Limited (''the Company'') is a public company domiciled
in India and incorporated under the provisions of the Companies Act,
1956. Its shares are listed on two stock exchanges in India. The
Company is engaged in the manufacture and sale of iron and steel
products and generation and sale of-power.
NOTE 2. GRATUITY AND OTHER POST RETIREMENT BENEFIT PLANS
The Company provides gratuity benefits which are funded with Life
Insurance Corporation of India in the form of qualifying insurance
policy. Leave encashment benefits is an unfunded plan of the Company.
Expenses recognised in the statement of profit and loss/Pre-operative
and Trial run expenses (Pending allocation) for respective years are as
follows: - Amount of expenses incurred for the current and previous
years are as follows:
The estimate of future salary increase, considered in actuarial
valuation, takes account of inflation, seniority, promotion and other
relevant factors such as supply and demand in the employee market.
The amount provided for defined contribution plan are as follows:
NOTE 3. SEGMENT INFORMATION
The Company is engaged in manufacturing of "Iron and Steel".
Consequently it has one reportable business segment e.g. "Iron and
Steel". The analysis of geographical segments is based on the area in
which the customers of the Company are located.
Information for Secondary Geographical Segments
The Company has common fixed assets for producing goods for domestic
and overseas markets which are located at only one place i.e. Raigarh.
Hence, separate figures for fixed assets/additions to fixed assets
cannot be furnished. Export debtors at the year end amounts to Rs. 104.04
lacs (Rs. 62.01 lacs).
NOTE 4. INTEREST IN JOINT VENTURE
The Company has a 14.90 % interest in Madanpur South Coal Company
Limited (a Joint Venture Company), incorporated in India.
The Company''s share of the assets and liabilities of the above jointly
controlled entity as at the respective Balance Sheet dates is as
follows:
NOTE 5. IMPAIRMENT OF ASSETS
On the basis of physical verification of assets and cash generation
capacity of those assets, in the management perception, there is no
impairment of assets as on 31st March, 2013.
There is no possibility of any reimbursement on any of the cases listed above
*The Company has given guarantee to ICICI Bank in respect of loan taken
by AA ESS Tradelinks Private Limited amounting to Rs. 7,500 lacs (Rs. 7,500
lacs) on 31st May, 2011. The management believes that the terms of the
guartantee given are not prejudicial to the interest of the Company.
NOTE 43. There has been a delay in payment of dividend on preference s
hares during the year, and the same has been paid out of its
regular bank account without opening a separate dividend account, as
required in terms of Section 205 & 205A of the Companies Act, 1956.
NOTE 6. VALUATION OF CURRENT ASSETS, LOANS & ADVANCES AND CURRENT
LIABILITIES
In the opinion of the management, current assets (including trade
receivables), loans and advances and current liabilities (including
trade payables) have the value at which these are stated in the Balance
Sheet, unless otherwise stated, and adequate provisions for all known
liabilities have been made and are not in excess of the amount
reasonably required.
NOTE 7. As per information available with the Company, there are no
suppliers covered under Micro, Small and Medium Enterprise Development
Act, 2*06. As a result, no interest provision/payment has been made by
the Company to such creditors, if any, and no disclosure thereof is
made in the accounts.
NOTE 8. During the year, the Company has abandoned its sponge iron
project (kiln 4) and extension of railway siding project, as a result
of which the already capitalised borrowing costs and other expenses of
Rs. 795.39 lacs and Rs. 107.43 lacs respectively upto 31st March, 2012 in
respect of these projects has been charged off in the Statement of the
Profit and Loss. The remaining expenditure/materials in respect of
these projects have alternate use in Company''s other projects and as
such, the management is of the opinion that there is no value loss /
impairment on the remaining amount.
NOTE 9. The previous year''s figures have been reworked, regrouped,
rearranged and reclassified wherever necessary as per the Revised
Schedule VI to the Companies Act, 1956. Amounts and other disclosures
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, 2012
1. Corporate information
MSP Steel & Power Limited is a public company domiciled in India and
incorporated under the provisions of the Companies Act, 1956. Its
shares are listed on two stock exchanges in India. The company is
engaged in the manufacture and sale of iron and steel products and
generation and sale of power.
terms/ rights attached to equity shares
The Company has only one class of equity shares having a nominal 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, 2012, the dividend per share
recognised as proposed distributions to equity shareholders is Rs. 0.25
(31st March, 2011: Rs. 0.50).
In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive remaining assets of the Company,
after distribution of all preferential amounts. The distribution will
be in proportion to the number of equity shares held by the
shareholders.
terms/rights attached to preference shares
The Company has only one class of preference shares (i.e. 6% non
cumulative redeemable preference shares) having a nominal value of Rs.
10/- per share. The preference shareholders shall have the right to
vote on any resolution of the Company directly affecting their rights.
The Company declares and pays preferential dividends in Indian rupees.
The preference share of the Company are non cumulative in nature and
therefore in case the Company does not declare dividend in any
particular year, dividend right gets lapsed and is not eligible for
carry forward in future years.
During the year, the Company has issued 1,254,000 (31st March, 201 1:
7,540,000) numbers of preference shares of Rs. 10 each in the same class
with a premium of Rs. 90 per share on private placement basis.
During the year ended 31st March, 2012, the dividend per share
recognised as proposed distributions to preference shareholders is Rs.
0.60 (31st March, 2011: Rs. 0.60).
Preference shares are redeemable within 20 years from the date of
allotment at a price to be decided by the Board of Directors at the
time of redemption.
In the event of liquidation of the Company, the holders of preference
shares will be entitled to receive assets of the Company, before its
distribution to equity shareholders. The distribution will be in
proportion to the number of preference shares held by the preference
shareholders.
NOTE 2. SHARE APPLICATION MONEY PENDING ALLOTMENT
Terms and Conditions relating to Share Application Money pending
allotment
a. The Company has issued a special notice dated 31st March, 2012 to
its shareholders in terms of section 192 (A) of the Companies Act 1956,
read with Company (Passing of the Resolution by the Postal Ballot)
Rules 2011, proposing to issue 10,000,000 equity shares to promoter and
non-promoter group on preferential basis in accordance with Chapter VII
of the Securities and Exchange Board of India (Issue of Capital and
Disclosure Requirements) Regulations, 2009 (the 'SEBI ICDR
Regulations') through postal ballot. Out of the total proposed shares
to be issued, the Company has received share application money against
5,301,667 equity shares considering the proposed issue price of Rs. 60/-
each (including a premium of Rs. 50/- per share).
b. The Company expects to allot the proposed equity shares before July
2012.
c. The Equity Shares to be allotted on preferential basis at a price
of Rs. 60/- (including a premium of Rs. 50/- per share) or the price as
determined in accordance with SEBI (Issue of Capital and Disclosure
Requirements) Regulations 2009 whichever is higher and on such terms
and conditions as may be decided and deemed appropriate by the board at
its sole and absolute discretion.
d. The Equity shares so issued and allotted shall rank pari passu in
all respects with the existing Equity Shares of the company. The Equity
Shares so issued and allotted shall be listed and traded on all the
Stock Exchanges on which the existing equity shares of the Company are
Listed.
e. The Company has sufficient authorised share capital to cover the
share capital amount on allotment of shares out of aforesaid share
application money.
Nature of security:
* Rupee Term Loans from Banks are secured by way of equitable mortgage
of Company's land and immovable properties at Raigarh, first charge by
way of hypothecation of the Company's movable assets (save and except
book debts) including movable machinery, machinery spares, tools and
accessories, (both present and future), second charge over entire
current assets of the company , (both present and future), on pari
passu basis. The term loans are further secured by the personal
guarantees of Puranmal Agrawal (the Chairman), Suresh Kumar Agrawal,
Saket Agrawal and Manish Agrawal (Directors of the Company).
** Foreign Currency Loans from Banks are secured by way of equitable
mortgage of Company's land and immovable properties at Raigarh, first
charge by way of hypothecation of the Company's movable assets (save
and except book debts) including movable machinery, machinery spares,
tools and accessories, (both present and future), second charge over
entire current assets of the company, (both present and future), on
pari passu basis. The term loans are further secured by the personal
guarantees of Puranmal Agrawal (the Chairman), Suresh Kumar Agrawal,
Saket Agrawal and Manish Agrawal (Directors of the Company).
*** Hire purchases obligations are secured by hypothecation of vehicles
purchased under the respective agreements.
Terms and conditions attached to Short term borrowings
Cash Credit and other working capital facilities and Foreign currency
loans from banks are secured by hypothecation of raw materials,
finished goods, goods under process, stores and spares, book debts etc.
(both present and future), second charge over the entire fixed assets
of the Company and personal guarantees of Puranmal Agrawal (the
Chairman), Suresh Kumar Agrawal, Saket Agrawal and Manish Agrawal
(Directors of the Company).
Working Capital loan from Body Corporates is secured by personal
guarantees of Puranmal Agrawal (the Chairman) and Suresh Kumar Agrawal
(Director of the Company) and Subservient charge on all moveable assets
including stock and debtors.
* Includes 2,000 Shares held in the name of a Director on behalf of the
Company.
# 66,960 Shares pledged with IDBI Bank Limited for guarantee given on
behalf of the investee Company ** Wholly owned subsidiary of the
Company w.e.f. 31st August, 2011
*** Subsidiary of the Company w.e.f July 08, 2011
note 3. gratuity and other post retirement benefit plans
The Company provides gratuity benefits which are funded with Life
Insurance Corporation of India in the form of qualifying insurance
policy. Leave encashment benefits is an unfunded plan of the Company.
The estimate of future salary increase, considered in actuarial
valuation, takes account of inflation, seniority, promotion and other
relevant factors such as supply and demand in the employee market.
The Company expects to contribute Rs. 177.60 lacs (Rs. 148.00 lacs) to
gratuity fund in the year 2012-13.
NOTE 4. INTEREST IN JOINT VENTuRE
The Company has a 14.90 % interest in Madanpur South Coal Company
Limited (a Joint Venture Company), incorporated in India.
The Company's share of the assets and liabilities of the above jointly
controlled entity as at the respective Balance Sheet dates is as
follows: -
NOTE 5. SEGMENT INFORMATION
The Company is engaged in manufacturing of "Iron and Steel".
Consequently it has one reportable business segment e.g. "Iron and
Steel". The analysis of geographical segments is based on the area in
which the customers of the Company are located.
The Company has common fixed assets for producing goods for domestic
and overseas markets which are located at only one place i.e. Raigarh.
Hence, separate figures for fixed assets / additions to fixed assets
cannot be furnished. Export debtors at the year end amounts to Rs. 62.01
lacs (Rs. 306.65 lacs).
There is no possibility of any reimbursement on any of the cases listed
above
*The Company has given guarantee to ICICI Bank in respect of loan taken
by AA ESS Tradelinks Private Limited (became subsidiary of the Company
w.e.f. 8th July, 2011) amounting to Rs. 7,500 lacs (Nil) on 31st May,
2011. The management believes that the terms of the guartantee given
are not prejudicial to the interest of the Company as it will derive
future economic benefits from the subsidiary.
In October 2010, search and seizure operations were conducted by the
Income Tax authorities under Section 132 of the Income Tax Act, at
various locations of the Company. During the course of the search and
seizure operations, the income tax authorities have taken custody of
certain materials such as documents, records, and recorded statements
of certain officials of the Company. The Company does not expect any
liability arising out of the aforesaid search and seizure.
note 6. operating lease company as lessee
The Company has entered into commercial leases on certain office
spaces. There are no restrictions placed upon the company by entering
into these leases.
note 7
The Company has during the year made purchases of Rs. 51.29 lacs from and
sales of Rs. 48.69 lacs to certain parties falling within the purview of
Section 297 of the Companies Act, 1956 for which, the Company is in the
process of obtaining the required approval from the Central Government.
note 8
As per information available with the Company, there are no suppliers
covered under Micro, Small and Medium Enterprise Development Act, 2006.
As a result, no interest provision/ payment has been made by the
Company to such creditors, if any, and no disclosure thereof is made in
the accounts.
note 9
Till the year ended 31st March, 2011, the Company was using pre-revised
Schedule VI to the Companies Act 1956, for preparation and presentation
of its financial statements. During the year ended 31st March, 2012,
the revised Schedule VI notified under the Companies Act 1956, has
become applicable to the Company. The Company has reclassified previous
year figures to conform to this year's classification. The adoption of
revised Schedule VI does not impact recognition and measurement
principles followed for preparation of financial statements. However,
it significantly impacts presentation and disclosures made in the
financial statements, particularly presentation of balance sheet.
Mar 31, 2011
Nature of Operations:
MSP Steel & Power Limited is engaged in the manufacture and sale of
iron & steel products and generation and sale of power
1. Contingent liabilities not provided for in respect of:
(Rs. in lacs)
Particulars As at As at
31st March, 2011 31st March, 2010
a) Excise Matters under
dispute/ appeal 1,391.35 392.96
b) Sales Tax Matters under
dispute/ appeal 85.86 34.20
c) Un-expired Bank Guarantees
and Letters of Credit 1,200.44 603.74
d) Corporate guarantee given
for a joint venture company 660.75 660.75
e) Custom duty on import of
equipments and spare parts
under EPCG scheme. 2,113.51 1,240.43
f) Claims against the Company
not acknowledged as debt 60.67 60.67
In October 2010, search and seizure operations were conducted by the
Income Tax authorities under Section 132 of the Income Tax Act, at
various locations of the Company. During the course of the search and
seizure operations, the income tax authorities have taken custody of
certain materials such as documents, records, and recorded statements
of certain officials of Company. The Company has not received any
communication from the income tax authorities in this regard till the
Balance Sheet date. The Company does not expect any liability arising
out of the aforesaid search and seizure. The documents and records
seized by the authorities did not impair the Company's ability to draw
a true and fair financial statement as of and for the year ended March
31, 2011.
2. During the year, the Company has issued 75,40,000 numbers of 6% non
cumulative non convertible redeemable preference shares of Rs.10 each
with a premium of Rs.90 per share on private placement basis.
3. As per information available with the Company, there are no
suppliers covered under Micro, Small & Medium Enterprise Development
Act, 2006. As a result, no interest provision/payment has been made by
the Company to such creditors, if any, and no disclosure thereof is
made in the accounts.
4. Loans are secured as follows:
i) Rupee Term Loans from Banks are secured by way of equitable mortgage
of Company's land and immovable properties at Raigarh and a first
charge by way of hypothecation of the Company's movable assets (save
and except book debts) including movable machinery, machinery spares,
tools & accessories, (both present and future), subject to prior
charges created in favour of the Company's bankers on the stock of raw
materials, finished goods, process stock, consumable stores and book
debts for securing working capital facilities.
ii) The above term loans are further secured by the personal guarantees
of Mr. Puranmal Agrawal (the chairman), Mr. Suresh Kumar Agrawal, Mr.
Saket Agrawal and Mr. Manish Agrawal (directors of the Company).
iii) Cash Credit and other working capital facilities from banks are
secured by hypothecation of raw materials, finished goods, goods under
process, stores and spares, book debts etc. (both present and future),
second charge over the entire fixed assets of the Company and personal
guarantees of Mr. Puranmal Agrawal (the chairman), Mr. Suresh Kumar
Agrawal, Mr. Saket Agrawal & Mr. Manish Agrawal (directors of the
Company).
iv) Hire purchases obligations are secured by hypothecation of vehicles
purchased under the respective agreements. All the mortgages and
charges created in favour of the banks rank pari-passu inter se, except
where specifically stipulated otherwise.
5. Gratuity and other post retirement benefit plans
The Company provides gratuity benefits which are funded with Life
Insurance Corporation of India in the form of qualifying insurance
policy. Leave encashment benefits is an unfunded plan of the Company.
(g) The estimate of future salary increase, considered in actuarial
valuation, takes account of inflation, seniority, promotion and other
relevant factors such as supply and demand in the employee market.
(h) The Company expects to contribute Rs. 148.00 lacs to gratuity fund
in the year 2011-12.
6. During the current year, the Company has recognized MAT credit
entitlement of Rs. 1,055.53 Lacs (Rs.472.84) in terms of Section 115JAA
of the Income Tax Act, 1961. Based on future profitability projections,
the Company is certain that there would be sufficient taxable income in
the future, to claim the above tax credit.
7. In terms of Accounting Standard 22, net deferred tax liability
(DTL) of Rs. 1351.54 lacs (Rs. 402.84 lacs) has been recognized during
the year and consequently the net DTL stands at Rs. 3,337.34 lacs (Rs.
1985.79 lacs).
8. Interest in joint venture
The Company has a 14.90 % interest in the assets and liabilities of the
Madanpur South Coal Company Limited (Joint Venture Company),
established in India.
9. Excise duty & cess on stocks represents differential excise duty
and cess on opening and closing stock of finished goods.
10. Segment Information:
The Company is engaged in manufacturing of ÃIron & SteelÃ. Consequently
it has one reportable business segment e.g. ÃIron & SteelÃ. The
analysis of geographical segments is based on the area in which the
customers of the Company are located.
The Company has common fixed assets for producing goods for domestic
and overseas markets. Hence, separate figures for fixed assets /
additions to fixed assets cannot be furnished. Export debtors at the
year end amounts to Rs. 306.65 (Rs.Nil).
11. Related Party Disclosures
(a) Names of the related parties :
Subsidiary Company : MSP Group International Singapore
(PTE) Limited
Jointly Controlled Entity : Madanpur South Coal Company Limited
Key Management Personnel
& their Relatives : Mr. Puranmal Agrawal à Chairman
Mr. Suresh Kumar Agrawal Ã
Managing Director
Mr. Manish Agrawal Ã
Non Executive Director
Mr. Saket Agrawal Ã
Non Executive Director
Mrs. Kiran Agrawal (wife of Chairman)
Mrs. Nisha Agrawal (wife of
Managing Director)
Mrs. Kisturi Devi Agrawal
(mother of Managing Director)
Enterprises over which
Key Management Personnel
and/ : Howrah Gases Limited
or their Relatives have
significant influence MSP Sponge Iron Limited
MSP Metallics Limited
MSP Infotech Private Limited
MSP Properties (India) Private Limited
MSP Cokes Private Limited
(Merged with MSP Metallics Limited)
MSP Cement Limited
MSP Power Limited
Chaman Metallics Limited
Shree Khathupati Mercantiles
Private Limited
MSP Mines & Minerals Private Limited
High Time Holdings Private Limited
B.S. Confin Private Limited
Prateek Mines & Minerals Private Limited
Adhunik Cement Limited
Danta Vyappar Kendra Limited
Emerald Tradelink Pvt. Ltd.
Ginny Traders Pvt. Ltd.
India Cement And Power Company Limited
Jai K Leasing And Commercial
Investment Limited
M.A. Hire Purchase Pvt. Ltd.
Raj Securities Limited
Rajnath Vyapaar Pvt. Ltd.
Shree Saishraddha Cements Pvt. Ltd.
Larigo Investment Pvt. Limited
12. During the year, the Company has hedged its exposure in the iron
and steel products by way of entering into certain commodity contracts
through the broker dealer. These contracts were settled, otherwise than
through actual delivery, whereby the Company has earned an amount of
Rs. 3, 025.00 lacs on net settlement basis. Based on a legal opinion
obtained, the said income has been treated as income from normal
business.
13. The Board of Directors of the Company approved the final audited
financial statements for the year 2009-2010 at their meeting dated May
29, 2010. However, dividend for the year 2009-2010 was proposed by the
Board of Directors in their meeting dated June 28, 2010 and accordingly
paid and accounted for in the financial statements for the year ended
March 31, 2011.
14. Previous year's figures indicated in brackets have been regrouped
/ rearranged where necessary to conform to this year's classification.
Mar 31, 2010
1. Contingent liabilities not provided for in respect of:
Rs. in lacs
As at As at
Particulars 31st March,2010 31st March, 2009
a) Excise Matters under
dispute/ appeal 392.97 81.57
b) Sales Tax Matters under
dispute/ appeal 34.20 141.69
c) Un-expired Bank Guarantees
and Letters of Credit 603.74 910.05
d) Cess on Power Generation Amount Amount
unascertainable unascertainable
e) Claims against the Company
not acknowledged as debt 60.67 -
A search and Seizure was conducted by the Excise Department at the
Companys Plant at Raigarh on 17th February, 2009. During the current
year, the excise department has returned back the documents relating to
consumption of raw materials and production which were seized by the
said department. The show cause cum demand notice for Rs. 55.81 lacs
received from the department has been considered as contingent
liability and included in (a) above.
2. During the year, the Company has decided to issue 1,20,00,000
numbers of 6% non cumulative redeemable preference shares of Rs. 100
each (including premium of Rs. 90 per share) on private placement
basis. Against the said issue, a sum of Rs. 2,220 lacs has been
received during the year from certain bodies corporate towards
application money which is pending allotment as at March 31,2010.
3. As per information available with the Company, there are no
suppliers covered under Micro, Small S Medium Enterprise Development
Act, 2006. As a result, no interest provision/payment has been made by
the Company to such creditors, if any, and no disclosure thereof is
made in the accounts.
4. A) Loans are secured as follows:
i) Rupee Term Loans from Banks are secured by way of equitable mortgage
by deposit of title deed of Companys land and immovable properties at
Raigarh and a first charge by way of hypothecation of the companys
movables(save and except book debts)including movable machinery,
machinery spares, tools & accessories,(both present and future),
subject to prior charges created in favour of the companys bankers on
the stock of raw materials, finished goods, process stock, consumable
stores and book debts for securing working capital facilities.
ii) All the mortgages and charges created in favour of the banks rank
pari-passu inter se, except where specifically stipulated otherwise.
iii) The above term loans are further secured by the personal guarantee
of Mr. Puranmal Agrawal (chairman), Mr. Suresh Kumar Agrawal, Mr. Saket
Agrawal & Mr. Manish Agrawal (directors of the company).
iv) Cash Credit and other working capital facilities from banks are
secured by hypothecation of raw materials, finished goods, process
stock, consumable stores, book debts etc.(both present and future),
second charge over the entire fixed assets of the company and personal
guarantee of Mr. Puranmal AgrawaKchairman), Mr. Suresh Kumar Agrawal,
Mr. Saket Agrawal S Mr. Manish Agrawal(directors of the company).
v) Hire purchases obligations are secured by hypothecation of vehicles
purchased under the respective agreements.
5. Excise duty & cess on stocks represents differential excise duty
and cess on opening and closing stock of finished goods.
6. The Company, at present, is in the process of updating its fixed
assets register, pending which, the discrepancies, if any, between the
physical and book balance of fixed assets is not presently
ascertainable, which, in the view of the management should not be
material.
7. Related Party Disclosures
(a) Names of the related parties:
Subsidiary Company : MSP Group International Singapore (PTE) Limited
(w.e.f. 1st April 2009)
Jointly Controlled Entity : Madanpur South Coal Company Limited
Key Management Personnel & their Relatives
: Mr. Puranmal Agrawal - Chairman
Mr. Suresh Kumar Agrawal - Managing Director
Mr. Manish Agrawal - Non Executive Director
Mr. Saket Agrawal - Non Executive Director
Mrs. Kiran Agrawal (wife of Chairman)
Mrs. Nisha Agrawal (wife of Managing Director)
Mrs. Kasturi Devi Agrawal (mother of Managing Director)
Enterprises over which Key Management Personnel and/ or their Relatives
have significant influence: Howrah Gases Limited MSP Sponge Iron
Limited MSP Metallics Limited MSP Infotech Private Limited MSP
Properties (India) Private Limited MSP Cokes Private Limited MSP Group
international Singapore (PTE) Limited (Converted into subsidiary with
effect from 1st April 2009) MSP Cement Limited MSP Power Limited MSP
Energy Limited MSP Rolling Mills Private Limited Chaman Metallics
Limited Shree Khathupati Mercantiles Private Limited MSP Mines &
Minerals Private Limited High Time Holding Private Limited B.S. Confin
Private Limited Rama Alloys Private Limited Pratik Mines & Minerals
Private Limited
Mar 31, 2009
1. Contingent liabilities not provided for in respect of:
(Rs.in lacs)
Particulars As at 31st As at 31st
March 2009 March 2008
a) Excise Matters under
dispute/ appeal 81.57 68.35
b) Sales Tax Matters under
dispute/ appeal 141.69 40.25
c) Un-expired Bank Guarantees and
Letters of Credit 910.05 1,037.68
d) Cess on Power Generation
(Amount unascertainable) - -
2. The Pellet Plant having achieved the technical parameters of
operations and stabilization of production efficiency, has commenced
the commercial production as at 29th March, 2009. Accordingly, fixed
assets amounting to Rs. 8,677.69 lacs (including allocated
pre-operative expenditure and trial run expenditures) have been
capitalised during the year.
3. A search and seizure was conducted by Excise department at the
CompanyÃs Plant at Raigarh on 17th February, 2009 where in certain
supporting documents relating to consumption of raw materials and
production have been seized by the said department. Based on the
documents and information available with the Company, the figures of
raw-materials consumption and production have been arrived at for the
period from 1st Aprilà 08 to 17th Februaryà 09 which have been relied
upon by the auditors.
4. As per information available with the Company, there are no
suppliers covered under Micro, Small & Medium Enterprise Development
Act, 2006. As a result, no interest provision/payment have been made by
the Company to such creditors, if any, and no disclosure thereof is
made in this accounts.
5. A) Details of nature of security of Secured Loans
i) Term Loans from banks are secured by way of the following:
a) Equitable mortgage of factory land, buildings and all the immovable
fixed assets and hypothecation of all the plant and machinery and other
movable assets on pari passu basis with all the term lenders of the
Company.
b) Second charge over all the current assets, present and future, on
pari passu basis with all the term lenders of the Company.
ii) Working Capital facilities from banks are secured by way of the
following:
a) First hypothecation charge on entire current assets i.e. inventories
and receivables on pari-passu basis (both present and future).
b) Second charge on factory land and buildings and all the immovable
fixed assets and hypothecation of all the plant and machinery and other
movable assets on pari passu basis.
iii) The terms loans and working capital facilities are additionally
secured by the corporate guarantee of Rama Alloys Private Limited as a
collateral security and personnel guarantee of all promoters directors
of the Company.
iv) Hire purchases obligations are secured by hypothecation of vehicles
purchased under the respective agreements.
B) Secured Loans falling due for repayment within one year Rs. 3,522.30
lacs (Rupees 1,952.70 lacs).
6. Gratuity and other post retirement benefit plans
The Company provides gratuity benefits which is funded with Life
Insurance Corporation of India in the form of qualifying insurance
policy. Leave encashment benefits is an unfunded plan of the Company.
(g) The estimate of future salary increase, considered in acturial
valuation, takes account of inflation, seniority, promotion and other
relevant factors such as supply and demand in the employee market.
(h) The Company expects to contribute Rs. 12.00 lacs to gratuity fund
in the year 2009-2010.
7. a) Current Tax provision is net of Rs 387.51 lacs (including Rs.
311.28 lacs for earlier years) being the Minimum Alternate Tax (MAT) in
terms of section 115JB of the Income Tax Act, 1961. Further, in terms
of the provisions of section 115JB of the Income Tax Act, 1961, MAT
entitlement of Rs 387.51 lacs is being carried forward for future
adjustment. Based on the profitability projections and improved market
conditions, the Company is certain that there would be sufficient
taxable income in the future, to claim the above tax credit.
8. Interest in joint venture
The Company has a 14.90 % interest in the assets and liabilities of the
Madanpur South Coal Company Limited (Joint Venture Company),
established in India which is yet to commence the process of commercial
extraction of coal and hence no Profit & Loss account have been
prepared by the Joint Venture Company.
9. Excise duty & cess on stocks represents differential excise duty
and cess on opening and closing stock of finished goods.
10. Segment Information:
The company has only one business segment i.e. iron & steel and thus no
further disclosures are required in accordance with Accounting Standard
17 as notified by the Companies (Accounting Standards) Rules, 2006 (as
amended).
11. Related Party Disclosures
(a) Names of the related parties : Jointly Controlled Entity : Madanpur
South Coal Company Limited
Key Management Personnel
& their Relatives
Mr. Puranmal Agrawal à Chairman
Mr. Suresh Kumar Agrawal à Managing Director
Mr. Manish Agrawal à Non Executive Director
Mr. Saket Agrawal à Non Executive Director
Mrs. Kiran Agrawal (wife of Chairman)
Mrs. Nisha Agrawal (wife of Managing Director)
Mrs. Kasturi Devi Agrawal (mother of Managing Director)
Enterprises over which Key Management Personnel and / or their
Relatives have significant influence
Howrah Gases Limited
MSP Sponge Iron Limited
MSP Metallics Limited
MSP Infotech Private Limited
MSP Rolling Mills Private Limited
MSP Coke Private Limited
MSP Group International Singapore (PTE) Limited
MSP Cement Limited
MSP Power Limited
Rama Alloys Private Limited
Chaman Metallics Limited
Shree Khathupatti Merchantiles Private Limited
Larigo Investment Private Limited
MSP Mines & Minerals Private Limited
High Time Holding Private Limited
B.S. Confin Private Limited
12. The comparative figures of the previous year appearing in the
financial statement have been audited by Companys previous auditor
M/S. Dwarka Ashok & Associates, Chartered Accountants, Kolkata.
13. Previous yearÃs figures including those given in brackets, have
been regrouped / rearranged where necessary to conform to this yearÃs
classification.