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Notes to Accounts of Mukesh Steels Ltd.

Mar 31, 2014

1. Corporate Information:

Mukesh Steels Limited (The Company) is a public company incorporated under the provisions of the Companies Act, 1956 on 29t August, 1981. The name of the company at the time of its Incorporation was Mukesh Steels Pvt. Limited and subsequently changed to Mukesh Steel Limited on, 9t October, 1987. The company is engaged in manufacturing and trading on Iron and Steel.

2. Terms/rights attached to equity shares

i) The company presently has one class of equity shares having a par value of Rs.10/- each. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the Annual General Meeting and then the shareholders are entitled for the dividend.

ii) 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. The distribution will be in proportion to the number of equity shares held by the shareholders.

3. Terms/rights attached to preference shares

* Preference shares carry a preferential right of repayement of amount of capital on winding up and also carry preferential right of dividend at a fixed rate on non cumulative basis 1,90,0006% Non Cumulative Redeemable Preference shares are redeemable within a period of 20 years from the date of allotment i.e.31st March 2003.

* 6,10,0006% Non Cumulative Redeemable Preference shares are redeemable within a period of 20 years from the date of allotment i.e.31st Jan. 2007.

* The earliest date of redemption is yet to be decided by the Board of Directors in both the cases.

4. Details of shares held by holding company or the ultimate holding company or their subsidiaries and associates

There is no holding company of the company and therefore no subsidiary/ associate of holding /ultimate holding Company.

5. a) Contingent liability and provisions (to the extent not provided for)

No outflow is expected in view of the post history relating to these claims

31st March, 2014 31 st March, 2013

Nil Nil

b) Commitments

a) Letter of Credit outstanding in favour of suppliers Rs. 600.28 lacs (Previous Year Rs. 550.17 lacs)

b) In respect of uncalled capital on partly paid up shares Rs. 75,000/- (Previous Year Rs.75,000/-)

6. a) The Company has identified Micro and Small Enterprises on the basis of Information made available. There are no dues to Micro and Small Enterprises that are reportable under the Micro, Small and Medium Enterprises'' Development Act, 2006.

b) Disclosures under section 22 of the Micro, Small and Medium Enterprises Development Act, 2006:

7. Secondary Segment Information:

The Company does not have a Secondary Segment. Hence the information under this head is not applicable to the Company.

Segment Revenue and Expenses

* Segment revenue comprises sales to external customers.

* Segment expenses comprise expenses that are directly attributable to the Segment.

Segment Assets and Liabilities

* Segment assets include all operating assets that are employed by a segment in its operating activities and those can be allocated to the segment on a reasonable basis.

* Segment liabilities include the liabilities which result from the operating activities of a segment and those which can be allocated to the segment on a reasonable basis.

* Assets and liabilities not identifiable to any reportable segment have been treated as unallocable.

8. Excise duty attributable to finished goods sold during the year is reduced from gross turnover in the Statement of Profit and Loss. Increase/ (decrease) in excise duty on differential between opening and closing stock of finished goods is also disclosed in other expense under the head miscellaneous expenses.

9. The Company has examined the indications listed in Accounting Standard (AS)- 28 Impairment of Assets, notified by the Companies (Accounting Standards) Rules, 2006. Based on such examination, it has been ascertained that none of the indications as listed in the accounting standard are present in the case of the company. Accordingly no impairment loss has been provided in the books of account.

10. The company has leased facilities under cancellable operating lease agreements with a lease term ranging from one to five years, which are subject to renewal at mutual consent thereafter. The cancellable arrangements can be terminated by either party after giving due notice. The lease rent expenses recognized during the year amounts to Rs. 2,28,000/- (previous year Rs. 2,28,0001-).

11. Related Party Disclosures as required by Accounting Standards AS-18" Related Party Disclosure" notified by the Companies (Accounting Standard) Rules, 2006.

A. Relationship

a) Key Management Personnel

: Sh. Deepak Gupta

: Sh. Krishan Chand Gupta

: Sh. Vinod Gosain

b) Relatives of Key Management Personnel:

: Sandeep Gupta

: Smt. Simla Rani

b) Enterprise over which Key Management Personnel and their relatives is able to exercise significant influence

: Mukesh Strips Limited

: Mukesh Udyog Limited

: DBA Switchgears Private limited **

** No transaction other than loan taken

12. The previous year figures have been regrouped and reclassified to this year classification , wherever necessary.


Mar 31, 2010

1. Liabilities not Provided for:

a) Letter of Credit outstanding in favour of suppliers Rs. 1022.10 lacs (Previous year Rs. 621.24 lacs).

b) In respect of uncalled capital on partly paid up shares Rs. 75000/- (Previous Year Rs.75000/-)

2. Estimated amount of Contracts remaining to be executed on capital account is Rs. 11.15 Lacs (Previous year - 25.00 Lacs) net of advances.

3. Managerial Remuneration includes :

Current Year Previous Year

a) Salary 26,72,400/- 22,22,400/-

b) Contribution to Provident Fund 28,080/- 28,080/-

(i) The above remuneration is the minimum remuneration approved by the shareholders in case of inadequacy of profits.

(ii) The above excludes incremental gratuity which is determined on acturial basis For the company as a whole.

4. (a) The company has, on the basis of technical advice, treated the plant and machinery of the Melting Induction and Pusher type heating Furnace as a continuous process plant. Depreciation for the period has been provided accordingly. Had the depreciation been charged under the category of general plant and machinery, the charge of depreciation would have been higher by Rs. 3.43 Lacs and the profit for the period would have been lower by the same amount.

(b) Rs. 64202/- being the depreciation on the revalued amount of building.

5. The summarized position of Post-Employment benefits & long term employee benefits recognized in the Profit and Loss Account and Balance Sheet in accordance with AS(15) are as under.

a) The estimates of future salary increases, considered in actuarial valuation, take account of inflation,seniority, promotion & other relevant factors, such as supply & demand in employment market.

b) The financial assumption considered for the calculations are as under: h) Short term employees benefit.

Contribution to provident fund.

Short term leave encashment.

i) The plan assets are maintained with Life Insurance Corporation of India. The detail of investment maintained by the Corporation are not provided by the Life Insurance Corporation of India and accounts not disclosed.

Discount Rate:

The discount rate has been chosen by reference to market yield on Government bonds as on date of valuation.

Expected Rate of Return : in case of Gratuity, the actual return has been taken

6. The company has identified the Micro and small enterprises on the basis of information made available . There are no dues to Micro and small enterprises which are reportable under the provisions of the Micro, small and Medium Enterprises Development Act,2006.

7. The Cash Flow Statement has been made in accordance with the Accounting Standard (AS) - 3 on "Cash Flow Statements" issued by the Companies (Accounting Standards) Rules, 2006.

8. The company is a single segment company engaged in manufacturing of Iron and Steel. Accordingly the disclosure requirement prescribed in Accounting Standard -17 on "Segment Reporting" issued by the Companies (Accounting standards) Rules, 2006 are not applicable.

9. Deferred Tax Liability amounting to Rs. 3354526/- as on 31.03.2010 is on account of Timming Difference due to Depreciation.

10. Basic earning per Share: Current Previous

Year Year

a) Net Profit for the year attributable to equity share holders(Rs.) A 3277444 1979985

b) Weighted average number of Equity

Shares of Rs.10/-each ( Nos) B 6566460 6301642

c) Basic earning per share A/B 0.50 0.31 (Nominal Value of share is Rs. 10/-)

11. The Company has examined the indications listed in Accounting Standard (AS)-28 on impairment of Assets, notified by the Companies (Accounting Standards) Rules, 2006. Based on such examination, it has been found that none of the indications as listed in

The Accounting Stanadard are present in the case of the company. Accordingly no impairment loss has been provided in the books of account.

12. Related Party Disclosures as required by Accounting Standards AS-18 "Related Party Disclosure" notified by the Companies (Accounting Standard) Rules, 2006.

A. Relationship

a) Key Management Personnel : Sh. Deepak Gupta Sh Krishan Chand Gupta Sh. Vinod Gosasn

b) Relatives of Key Management Personnel : Smt. Soma Gupta

: Smt. Meena Gupta

c) Enterprise over which relative key Management personnel is able to exercise significant influence : Mukesh Strips Limited. : Mukesh Udyog Limited. : Mukesh Industrial finance Ltd : Krishan Chand Joginder Paul. ; Krishan Chand HUF. ; Deepak Gupta HUF.



C. 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 above said related parties.

D. Related party relationship is as identified by the management are relied upon by the auditors

13. a) 1,90,000 6% Non Cumulative Redeemable Preference shares are redeemable within a period of 20 years from the date of allotment i e 31st March 2003.

b) 6,10,000 6% Non Cumulative Redeemable Preference shares are redeemable within a period of 20 years from the date of allotment i.e.31st Jan. 2007,

The earliest date of redemption is yet to be decided by the Board of Directors in both the cases.

14. Previous year figures have been regrouped /recasted wherever necessary to make them comparable with those of the current period.

15. Excise duty attributable to finished goods sold during the year is reduced from Gross Turnover in the Profit and Loss Account lncrease/(decrease) in excise duty on differential between opening and closing stok of finished goods is also disclosed separately in the Profit and Loss Account.


Mar 31, 2009

1. The company has identified the Micro and small enterprises on the basis of information made available . There are no dues to Micro and small enterprise : under are reportable under the provisions of the Micro, small and Medium Enterprises .development Act, 2010

2. The Company is a single segment company engaged in manufacturing of Iron and Steel. Accordingly the disclosure requirement prescribed in Accounting .standard - 17 on "Segment Reporting" issued by the Companies (Accounting standards ) Rules, 2006.

3. Deferred Tax Liability amounting to Rs. 3327546.62/- as on 31.03.2009 is on account of Timming Difference due to Depreciation.

4, The Company has examined.£he indications listed in Accounting Standard (AS)-28 on Impairment of Assets, notified by tho Companies ( Accounting Standards ) Rules. 2006. Based on such examination, it has been found that none of the indications as listed in the Accounting Stanadard are present in the case of the company. Accordingly no Impairment loss has been provided in the books of account.

5. Related Party Disclosures as required by Accounting Standards AS-10 "Related Party Disclosure" notified by the Companies ( Accounting Standard) Rulos, 2009.

a, 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 above said :relatedparties.

b. Related party relationship is is as identified by the management are relied upon by the auditors.

6. a) 1,90,000 6% Non Cumulative Redeemable Preference sharees arc redeemabla within a period of 20 years from the date of allotment i.e.31st March 2003.

b) 6,10,000 6% Non Cumulative Redeemable Preference, shares are redeemable within a period of 20 years from "the date of allotment i. e.31st.Jan. 2007.

The Earliest date of redemption is yet to be decided by the board of Directors in both the cafes.

7. Previous year figures have been regrouped / recasteded wherever necessary to make them comparable with those of the current period.

8. Excise duty attributable to finished goods sold during the year is reduced from Gross Turnover in the Profit and Loss Account. Increase (decreased in excise duty on differential between opening and closing stok of finished goods .1.also disclosed separately in the Profit and Loss Account.

9. The company has utilized the funds raise through right is for the purpose of working capital requirement and the same has been utilized and there is no unutilized monthly

 
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