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Notes to Accounts of Mukesh Strips Ltd.

Mar 31, 2014

1. Rights Preferences and Restrictions attaching to each class of shares

i) Equity Shares

* The Company has only one class of Equity shares having par value of Rs. 10.00 per share. Each holder of Equity Shares entitled to one vote per share.

* The Equity Shareholders have right to receive dividend out of balance of net profits remaining after payment of dividend to the preference shareholders. The dividend proposed by the Board of Directors Is subject to the approval of the shareholders In the ensuing Annual General Meeting. However, the company has not declared any dividend for the year.

* In the event of the liquidation of the company, the holders of the Equity Shares will be entitled to receive the realized value of the remaining assets of the company, after distribution of all preferential dues. The distribution will be In proportion to the number of Equity Shares held by the Shareholders.

ii) Preference Shares

Preference Shares shall confer on the holders thereof, the right to a fixed preferential dividend on non cumulative basis, at the rate as may be determined by the board at the time of the issue, on the capital for the time being paid up or credited as paid up thereon.

* The Company has two classes of Preference shares l.e. 6% Non Cumulative Redeemable Preference Shares and 5% Non Cumulative Redeemable Preference Shares having par value of Rs. 10.00 per share.

* In the event of liquidation of the company, the holders of such shares will be entitled to have the capital paid up on such shares be paid off In priority to any payment of capital to equity shareholders. However, it shall not have the right to any further participation In the profits or assets of the company.

* The right to vote, In respect of such capital, In proportion as paid up preference share capital bears to the total paid up equity capital only on resolutions directly affecting their rights and on every resolution on non-payment of dividend for the year.

6% Non Cumulative Redeemable Preference Shares are redeemable after 20 years from the date of allotment, and the 2. Aggregate number and class of shares alloted as fully paid up pursuant to contract(s) without payment being received In cash and/or by way of bonus shares and/or shares bought back during the period of five years Immediately preceedlng the balance sheet date are : NIL

3. I) Working capital facilities from State Bank of India are secured by way of hypothecation of pari passu charge alongwith Corporation Bank on all the current assets of the company both present and future. These facilities are also further collaterally secured by 1st pari passu charge of State Bank of India alongwith 2nd pari passu charge of Corporation Bank on all the fixed assets of the company both present and future Including equitable mortgate of factory land situated at Village Dhandarl Khurd, Ludhiana and equitable mortgage of leasehold rights of factory land by the company.

II) All Secured working capital facilities have been guaranteed by three directors of the company.

III) The company has not committed any default In repayment of loan and Interest.

3. Provisions and Contingent Liabilities

Provisions are recognised in the accounts in respect of present probable obligations, the amount of which can be reliably estimated.

Contingent liabilities are disclosed in respect of possible obligations that arise from past events but their existence is confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company.

4. Contingent Liabilities not provided for

a) Claims against the Company not acknowledged as debt is Rs. NIL

b) Letter of Credits outstanding in favour of suppliers is Rs. 480.51 Lacs (Previous Year Rs. 115.46 Lacs)

c) The company has filed an appeal with CEGAT against demand raised by D.C. Central Excise, Range, Ludhiana for differential duty Rs. 142684/-and interest thereon Rs. 75702/-. The company has deposited Rs. 142684/-under protest and has not deposited the interest s75702/-.

5. The company has paid remuneration to the directors with in the limits prescribed in Schedule XIII of the Companies Act, 1956 as under: -

Current Year Previous Year

a) Director''s Remuneration 12,00,000.00 12,00,000.00

b) Directors'' Sitting Fees 18,000.00 5,000.00

6. Hedging Contracts

The company uses forward exchange contracts to hedge its foreign exchange exposure in accordance with its Forex Policy. As at 31st March, 2014, there were two outstanding Forward Exchange Contract. The uncovered foreign exchange exposure as at 31st March 2014 is US$ NIL.

7. There are no Micro, Small and Medium Enterprises, to whom the company owes the dues, which are outstanding for more than 45 days as at the balance sheet date. The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the company. This has been relied upon by the Auditors.

8. The Company has adopted Accounting Standard AS (15) prescribed by the companies Accounting Standard Rules 2006 with effect from 1st April 2007.

9. As the company''s business activity falls within a single primary business segment viz. Iron and steel, the disclosure requirements of Accounting Standard (AS-17) on Segment Reporting issued by the Institute of Chartered Accountants of India are not applicable.

10. The company has carried out comprehensive exercise to assess the impairment loss of assets. Based on such exercise, there is no impairment of assets. Accordingly, no adjustment in respect of loss on impairment of asset is required to be made in the accounts.

11. In the opinion of the Board of Directors, the current assets and loans & advances have a value on realization in the ordinary course of business at least equal to the value at which they are stated.

12. The Company has reduced the amount of cheques issued but not presented for payment with the amount of cheques on hand as on 31.03.2014

13. Confirmation of Balances, whether in debit or credit, from parties and banks have not been obtained. As such their effect on Statement of Profit & Loss can''t be reflected.

14. Previous year figures have been regrouped/rearranged wherever considered necessary to make them comparable with the current year figures.


Mar 31, 2010

1. Contingent Liabilities not provided for :-

a) Claims against the Company not acknowledged, as debt is Rs. NIL

b) Letter of Credits outstanding in favour of suppliers is Rs. 72,57,390.00 (Previous Year Rs. 82,06,688.00)

c) The company has filed an appeal with CEGAT against demand raised by D.C. Central Excise, Range, Ludhiana for differential duty Rs. 142684/- and interest thereon Rs. 75702/-. The company has deposited Rs. 142684/- under protest and has not deposited the interest Rs.75702/-.

2. There are no Micro, Small and Medium Enterprises, to whom the company owes the dues, which are outstanding for more than 45 days as at the balance sheet date. The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the company. This has been relied upon by the Auditors.

3. As the companys business activity falls within a single primary business segment viz. Iron and steel, the disclosure requirements of Accounting Standard (AS-17)on Segment Reporting issued by the Institute of Chartered Accountants of India are not applicable.

4. Related Party Disclosures under Accounting Standard AS-18: -

a) Key Management Personnel Sh. : Sandeep Gupta, Executive Director

: Sh. Krishan Chand Gupta, Chairman

b) Relatives of Key Management Personnel

Mr. Deepak Gupta : Relative of Sh. Krishan Chand Gupta

Mr. Pardeep Gupta : Relative of Sh. Krishan Chand Gupta

Mrs. Simla Rani : Relative of Sh. Krishan Chand Gupta

Mrs. Meena Gupta : Relative of Sh. Sandeep Gupta

c) Enterprise over which key management Personnel is able to exercise significant influence : Akriti Cine Media (P) Ltd.

: D.B.A. Switchgears (P) Ltd.

: Good Luck Travellers (P) Ltd.

: Odeon Enterprises (P) Ltd.

: Matry Mangal Builders (P) Ltd.

: Mukesh Industrial Finance Ltd.

: Mukesh Steels Limited

: Mukesh Udyog Limited

: Sandeep Gupta HUF

: krishan Chand Gupta HUF

: Krishan Chand Joginder Paul (Rs. In Lacs)

Particulars Key Management Enterprises Total Personnel

(KMP) over which

and their KMP is able

relatives to exercise

Significant

Influence

The above information regarding Small Scale Industrial Undertakings has been determined to the extent such parties have been identified as S.S.I, on the basis of information available with the company. This information has been relied upon by the auditors.

No amount has been claimed from the company under the Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993.

5. The Basic & Diluted Earning Per Share disclosed in Profit & Loss Account has been calculated by dividing the net profit for the year attributable to Equity Shareholders by the weighted average number of equity shares outstanding during the said financial year.

The net profit attributable to equity shareholders is Rs. 29,55,575/- (Previous Year Rs. 19,94,313/-) and weighted average number of equity shares is 36,60,000 for this purpose.

6. The company has carried out comprehensive exercise to assess the impairment loss of assets. Based on such exercise, there is no impairment of assets. Accordingly, no adjustment in respect of loss on impairment of asset is required to be made in the accounts.

7. In the opinion.of the Board of Directors, the current assets and loans & advances have a value on realization-in the ordinary course of business at least equal to the value at which they are stated.

8. Confirmation- of Balances, whether in debit or credit, from parties and banks have not been obtained? As such their effect on Profit & Loss Account cant be reflected.

9. Previous year figures have been regrouped/rearranged wherever considered necessary to make them comparable with the current year figures.

10. Schedules I to XX form an integral part of the Balance Sheet and Profit & Loss Account and have been duly authenticated.

II. CAPACITIES

(As certified by the management but not verified by us being technical matter)

i) Licensed Capacity ¦: - No Industrial License is required for any of the products manufactured by the Company.

IV. EXPENDITURE/EARNING IN FOREIGN CURRENCY

Interest on FCNRB/Buyer Credit: 2630752/- (Previous Year Rs. 2413142/-)

V. VALUE OF INDIGENOUS AND IMPORTED RAW MATERIAL & STORES CONSUMED

 
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