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Notes to Accounts of N R International Ltd.

Mar 31, 2015

1 Corporate information

N. R. INTERNATIONAL LTD is engaged in the business of handling and transportation of Coal and Coke. The company is a public limited company and is listed on the Bombay, Calcutta, Ahmedabad and Bhubaneshwar Stock Exchanges.

2. (b) Rights, preferences and restrictions attached to Shares

Equity Shares: The company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

3. Contingent liabilities and commitments (to the extent not provided for)

As at 31 March, As at 31 March, 2014 2015

(i) Contingent liabilities Rs Rs

(a) Claims not acknowledged by - - the Company

(b) Guarantee provided by the 146,500,000 146,500,000 Company in favour of Allahabad Bank on behalf of Surya Sponge Iron Ltd

(c) Demand raised under Orissa VAT, 36,755,832 36,755,832 CST and Entry Tax against the company and also against M/s Sunrise Sponge Iron and Steels P Ltd and M/s Shree Maruti Steels & Castings Ltd (Both now merged with the Company) wherein the company has filed appeals against the order.

4. Disclosure as per Clause 32 of the Listing Agreements with the Stock Exchanges

Loans and advances in the nature of loans given to subsidiaries, associates and others and investment in shares of the Company by such parties:

5. Other Informations

a) The company maintains separate books of accounts for it's unit - M/s Bharat Hardcoke Manufacturers at Ranchi which are audited by M/s V. Modi & Co. (Chartered Accountants) at Ranchi. The audited accounts of the unit is merged in the statement of accounts of the company.

b) Cash in hand as on the balance sheet date is as per the books of accounts and as certified by the directors. Cash in hand has not been verified physically.

c) The Company has during the year sold entire fixed assets of it's unit - M/s I B Industries Ltd (merged with the Company in the earlier years) and also it's land at Jharsuguda to M/s Bharat Global P Ltd where wife and son of the Chairman are directors at a total price of Rs. 2.00 crores wherein the company has incurred a loss of Rs. 26.70 Lacs. As the market value of the assets sold could not be ascertained, reasonableness of the transaction could not be established.

d) The amount credited to the revaluation reserves on revaluation of Land, building and plant & machinery has now been transferred to revaluation reserve on sale of respective assets.

e) With the current sale of Land with Building and Plant & Machinery situated at Dhenkanal of it's Unit - M/s I. B. Industries, the company has closed all it's manufacturing activities during the year.

f) Some of the Debtors, creditors, advances and other ledger balances are subject to confirmation.

g) The loan account with Federal Bank has been settled under the One Time Settlement and the settlement amount was fully paid. The net payable amount after adjusting all writeoffs has been considered as income as liability no longer required.

h) The company has during the year written off it's investment and receivables in M/s Surya Sponge Iron Ltd to the tune of Rs. 8.35 crores against the amount payable to federal bank as the operaions of the said company has been closed and their assets taken over by banks against their dues.

6. Related Party Transactions

As per accounting standard - 18 'Related Party Disclosures' as prescribed under Companies (Accounting Standards) Rules, 2006 the company's related parties and transactions are disclosed below.

7. LEASES

As a Lessee:

Operating Lease

Operating Lease AS19p25(e) The Company has significant operating leases for it's manufacturing unit - M/s Bharat Hardcoke Manufacturing at Tupudana, Ranchi and other office premises. These lease arrangements range for a period between 11 months and 10 years, which include both cancellable and non-cancellable leases. Most of the leases are renewable for further period on mutually agreeable terms and also include escalation clauses.


Mar 31, 2014

1 Corporate information

N. R. INTERNATIONAL LTD is a public limited company having CIN No L74999WB1991PLC051738. The company is engaged in diversified business primarily handling and transportation of Coal and Coke. The company is also engaged in the manufacturing of Low Ash Metallurgical Coke . The company has it's manufacturing units in Orissa and sell it's products and services throughout the country. The company is a public limited company and is listed on the Bombay, Calcutta, Ahmedabad and Bhubaneshwar Stock Exchanges.

2. Share Capital

(a) Rights, preferences and restrictions attached to Shares

Equity Shares: The company has one class of equity shares having a par Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors s of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend In the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all their shareholding.

(b) Shares allotted as fully paid up pursuant to contract's) without payment being received in cash (during 5 years immediately preceding March 31,2014): NIL

(c) Terms of securities convertible into equity shares - NA

3. Contingent liabilities and commitments (to the extent not provided for) As at 31 As at 31 March 2013 March 2014 (i) Contingent liabilities Rs. Rs.

(a) Claims not acknowledged by the Company 1,751,000

(b) Guarantee provided by the Company in favour of Allahabad Bank on behalf 146,500,000 146,500,000 of Surya Sponge Iron Ltd

(c) Demand raised under Orissa VAT, CST and Entry Tax against the company 36,755,832 52,286,361 and also against M/s Sunrise Sponge Iron and Steels P Ltd and M/s Shree Maruti Steels & Castings Ltd (Both now merged with the Company) wherein the company has filed appeals against the order.

4. Other Informations

a) The company has during the year surrendered it's Central Excise registration certificate to the concerned authority and consequently the MODVAT credit of Rs 38,87.225/- receivable from them, now becoming unrealisable has been written off during the year under Rates and Taxes.

b) The company maintains separate books of accounts for it's unit — M/s Bharat Hardcoke Manufacturers at Ranchi which are audited by M/s V. Modi & Co (Chartered Accountants) at Ranchi, The audited accounts of the unit is merged in the statement of accounts of the company

c) Cash in hand as on the balance sheet date is as per the books of accounts and as certified by the directors. Cash in hand has not been verified physically

d) The company has not made any provision for interest on delay payment of outstanding statutory dues such as TDS, Service Tax, etc.

e) The Company has sold balance Land with Building and Plant & Machinery situated at Mouza - Baichua, SRO - Jagatpur, PS - Tangi, Dist - Cuttack to M/s Flexir Impex P Ltd where wife the Chairman is a director at a total price of Rs 1.76 crores wherein the company has made a profit Rs 1,10,45,018/-. As the market value of the assets sold could not be ascertained, reasonableness of the transaction could not be established.

f) The amount of Rs. 2,86,64,630/- credited to the revaluation reserves on revaluation of Tangi Land has now been transferred to revaluation reserve on sale of land and thereby reducing the amount of revaluation reserves by an equivalent amount.

g) With the current sale of Land with Building and Plant & Machinery situated at Mouza - Baichua, SRO - Jagatpur, PS - Tangi, Dist - Cuttack, the company has disposed of the whole of fixed assets relating to iron and Steel Business and has totally closed the Iron and Steel Business during the year

h) The company has during the year been alloted 7,50,000 equity shares of M/s Aim Credit Capital P Ltd at the rate of Rs. 39.10 per share and 16,00,000 equity shares of M/s Flexir Impex P Ltd at the rate of Rs 42.00 per share In both the companies wife and children of the Chairman / Managing Director are Directors. NAV of M/s Aim Credit Capital P Ltd as per the audited financial statements of the company as on 31.03 2013 is Rs 38 83 and that of M/s Flexir Impex P Ltd is Rs. 41.96 per share

i) The company has during the year purchased 14,05.000 equity shares of M/s Surya Sponge Iron Ltd from M/s Aim Credit Capital P Ltd at the rate of Rs 20/- per share and another 14.05.000 equity shares of the same company from M/s Flexir Impex P Ltd at the rate of Rs 25/- per share,in both the companies wife and children of the Chairman /Managing Director are Directors. NAV of M/s Surya Sponge iron Ltd as per the audited financial statements of the company as on 31.03.2013 is negative.

j) The company has not made any provision for interest on secured borrowings from Banks as the account nas become NPA and the company has taken up the matter with bank for One Time settlement where they expect waiver of interest and other charges

k) Some of the Debtors, creditors advances and other ledger balances are subject to confirmation.

l) The company is not having a full time company secretary thereby violating the provisions of sub section (1) of section 383 A of The Companies Act, 1956,

5. LEASES

As a Lessee:

Operating Lease

Operating Lease AS19p25(e) The Company has significant operating leases for it's manufacturing unit - M/s Bharat Hardcoke Manufacturing at Tupudana, Ranchi and other office premises. These lease arrangements range for a period between 11 months and 10 years, which include both cancellable and non-cancellable leases. Most of the leases are renewable for further period on mutually agreeable terms and also include escalation clauses.

6. Previous year's figures

Previous Year's figures has been regrouped, re arranged and re classified wherever necessary to make them comparable to those for the current year.


Mar 31, 2013

1 Corporate information

N. R. INTERNATIONAL LTD s engaged in diversified business primarily handling, and transportation of Coal I and Coke. The company is also engaged in the manufacturing of Low Ash Metallurgical Coke and Iron &

Steel Products like MS Steel Ingots. The company has its manufacturing units in Orissa and sell its products and services throughout the country. The company is a public limited company and is listed on the Bombay, Calcutta, Ahmadabad and Bhubaneswar Stock Exchanges.

2.1 Other In formations

a) The company has during the year surrendered it''s registration under Orissa VAT and Entry Tax and therefore the amount receivable from them, now becoming unrealizable has been written off during the year as under

VAT : Rs. 2,19,32,734.50

Entry Tax : Rs. 71,66,825.83

b) The company maintains separate books of accounts for its unit - M/s Bharat Hardcoke Manufacturers at Ranchi which are audited by M/s V. Modi & Co. (Chartered Accountants) at Ranchi. The audited accounts of the unit is merged in the statement of accounts of the -company.

c) Some of the Debtors, creditors, advances and other ledger balances are subject to confirmation.

d) Cash in hand as on the balance sheet date is as per the books of accounts and as certified by the directors. Cash in hand has not been verified physically.

e) The Company has sold part of Tangi Land with Building and Plant & Machinery, thereat to M/s Flexir Impex P Ltd where wife the Chairman is a director at a total price of Rs. 5.00 Crores .wherein the company has incurred a loss of Rs. 12,39,182/-. As the market value Of the assets sold could not be ascertained, reasonableness of the transaction could not be established.

f) The Company has sold part of immovable properties of the company to M/s Aim Credit Capital P Ltd where wife and son of the Chairman .''are directors at a total price of Rs. 17. 50 Lacs wherein the company has earned a overall profit of Rs. 1,12,159/-. As the market value of the assets sold could not be ascertained, reasonableness of the transaction could not be established

g) The Company*has sold part of its investment'' in equity share capital of'' M/s Surya Sponge Iron Limited to M/s Aim Credit Capital Pvt Ltd and Bharat Global Private Limited where spouse of Chairman is a director and also to the Directors and their family members at a price lower than the cost price. The company has incurred a total loss of Rs. 1.01 crore out of such transactions.

h) The Income Tax demand of Rs. 18,12,353/- has been very old and the whole of the demand amount has been adjusted against TDS refund. Therefore, the liability against the same has been taken as NIL for the current year. Now there is no demand on account of income tax - whether disputed or not as on the date of the balance sheet.

i) The company has not made any provision for interest on secured borrowings from Banks as the account has become NPA act the company has taken up the matter with bank for One Time settlement where they expect waiver of interest and other charges,

j) The company has not made any provision for interest on delay payment of outstanding statutory dues such as TDS, Service Tax, etc.

k) The company is not having a full time company secretary thereby violating the provisions of sub section (1) of section 383 A of-The Companies Act, 1956.


Mar 31, 2012

1 Corporate information

N. R. INTERNATIONAL LTD is engaged in diversified business primarily handling and transportation of Coal and Coke. The company is also engaged in the manufacturing of Low Ash Metallurgical Coke and Iron & Steel Products like MS Steed! Ingots. The company has its manufacturing units in Orissa and sell its products and services throughout the country. The company is a public limited company and is listed on the Bombay, Calcutta, Ahmadabad and Bhubaneshwar Stock Exchanges.

(a) The term loan from bank specified in (b)(i) above, was repayable in 24 quarterly installments beginning September, 2011 . The Company could not maintain the repayment terms, as disclosed above, and the loan account has accordingly, declared as NPA by the Bank on 11.05.2011.

2.1 Other Information's

a) The company has carried forward entry tax balance of Rs. 71,66,825.83 (Previous Year - Rs. 71,66,825,.83) as deposits with govt authorities whereas under The Orissa Entry Tax Rule, 1999 there is no provision of carry forward of entry tax. The directors has confirmed that they are filing appeals against the said rules. Under the present scenario, the current assets of the company has been overstated by an equivalent amount.

b) The company has not given effect to the changes in Orissa VAT (Amendment) Rule 2009 as regards to reduction of Input Tax Credit (ITC) in excess of CST payable which was effective from June, 2008 and will result in ITC reversal of Rs. 70,28,479.00. The director has confirmed that they are filing appeals against the said rules. However the company has made ITC reversal of Rs 24,37,450.75 relating to the financial year 2009-10 during the financial year 2010-11 pursuant to Orissa Gazette No. 265 dated 25.02.2009.

c) The company maintains separate books of accounts for its unit - M/s Bharat Hard coke Manufacturers at Ranchi which are audited by M/s V. Modi & Co. (Chartered Accountants) at Ranchi. The audited accounts of the unit is merged in the statement of accounts of the company.

d) The company has during the year written off its investment (Rs. 2,61,871/-) and advances (Rs. 33,41,540/-) in the Partnership Firm M/s R. N. Misra as the firm is closed and assets of the firm has been taken over by the banks.

e) Debtors, creditors, advances and other ledger balances are subject to confirmation.

f) Cash in hand as on the balance sheet date is as per the books of accounts and as certified by the directors. Cash in hand has not been verified physically.

g) During the year, the Company has written of advances paid to M/s R. N. Misra -Partnership Firm (Rs. 33,45,540.47/-), M/s Mutual Inductors Ltd (Rs. 29,72,370.16) and M/s Suryaa Newsprint & Papers P Ltd (Rs. 57,46,165/-) as the above firms / companies are closed and the advance paid to them for various purpose could not be realized now.

h) The Company has sold some of the fixed assets at a price of of Rs. 2,00,00,000/- (Rupees : Two Crores only) to M/s Aim Credit Capital Pvt. Ltd. where wife and son of the Chairman are directors. As the market value of the assets sold could not be ascertained, reasonableness of the transaction could not be established.

i) During the year 2009-10, the company has raised quality claims for inferior quality of materials on various parties on purchase of raw materials. Against the claims raised a sum of Rs. 2,40,56,310/- is not accepted by the parties and hence the same has been written off during the current fiscal year.

j) The company is not having a full time company secretary thereby violating the provisions of sub section (1) of section 383 A of The Companies Act, 1956.


Mar 31, 2010

1. Secured Loans:

Cash Credit facility from Bank is secured by way of hypothecation of Inventories of Stocks, Book-Debts, Outstanding Moneys, Receivables and Claims, immovable properties, etc.

Other loans under the hire purchase finance scheme from Banks / Financial Institutions is secured by hypothecation of respective assets.

2. Contingent liabilities not provided for :

Sl No Nature of Liability Current Year Previous Year

a) Income Tax demand disputed by the 18,12,353 18,12,353 Company and is under appeals

b) Claims not acknowledged by the company 17,51,000 17,51,000

c) Guarantee provided by the company in favour of Allahabad Bank on behalf of M/s Surya Sponge Iron Ltd 14,65,00,000 14,65,00,000

d) Sales Tax Demand of M/s Sunrise sponge Iron and Steels P Ltd and M/s Shree Maruti Steels & Castings P Ltd (now merged with the company) wherein the company has filed appeals against assessment order. 2,42,00,887 0

3. Related Party Disclosures:

a) Enterprises that directly or indirectly through one or more intermediaries, control or are controlled by or are under common control with the reporting enterprise (this includes holding companies, subsidiaries and other fellow subsidiaries : NIL

b) Associate : NIL

c) Individuals owning directly or indirectly, an interest in the voting power of the reporting company that gives them control or significant influence over the company and relatives of any such individual : NIL

d) Key Managerial Personnel and their relatives :

Key Managerial Personnel

1) Mr. Nirmal Modi

2) Mr. Deepak Agarwal

3) Mr. B. R. Nanda

4) Capt Ajay Singh Chauhan Relatives of Key Managerial Personnel

1) Mrs. Sangeeta Modi ( wife of Nirmal Modi)

e) Enterprise over which any person described in ( c ) or ( d ) is able to significant influence :

1) Bharat Global Private Limited

2) Suryaa Sponge Iron Limited

3) M/s R. N. Misra

4) Satyam Castings Private Limited

11. Segment Reporting

The companys business activities predominantly relates to transportation & cargo handling, manufacturing and trading of coal & coke and iron and steel. As per the provisions of AS 17, the company has identified three primary segment - Transportation & Handling, Coal & Coke and Iron & steel. However, the company operates only in one geographical segment i.e India, hence there is only one geographical segment.

4. Employees Benefit

Defined Contribution Plan

The company has recognized Rs. 2,88,441.00 (Pr Yr - Rs. 2,77,846/-) for provident contribution as expenses under the defined contribution plan in the profit and loss account for the current financial year.

Defined Benefit Plan

The company recognizes Rs. 1,02,170.00 (Pr Yr - Rs. 12,890/-) as benefit towards gratuity and makes provision for the same in the statement of accounts as on balance sheet date.

The company has not made any actuarial valuation of the defined benefit obligation for gratuity and other retirement benefits as on the balance sheet date.

5. Leases

The only property of the company which is acquired on lease is the factory land of its manufacturing unit - Bharat Hardcoke Manufacturers at Ranchi. The company does not make any provision for depreciation on the leasehold assets. The lease rentals amounting to Rs. 82,738/- paid during the current financial year has been debited to profit & loss account.

6. Revaluation of Fixed Assets

The company has revalued its freehold land at Tangi, Cuttack based on the valuation by independent valuers during the financial year 2001-02 thereby increasing its value by Rs. 5,57,97,563/-. The assets of the company were again revalued in 2005-06 when the coke over unit of the company at Dhenkanal, Orissa was revalued increasing the value of plant & machinery by Rs. 2,29,38,423/- and land situated at Jharsugda was revalued increasing its value by Rs. 91,70,094/-

7. The company has carried forward entry tax balance of Rs. 70,03,538.11 (Previous Year - Rs. 54,20,073.86) as advance and deposits whereas under The Orissa Entry Tax Rule, 1999 there is no provision of carry forward of entry tax. The directors has confirmed that they are filing appeals against the said rules. Under the present scenario, loss of the company has been understated and net current assets has been overstated by an equivalent amount.

8. The company has not given effect to the changes in Orissa VAT (Amendment) Rule 2009 as regards to reduction of Input Tax Credit (ITC) in excess of CST payable which was effective from June, 2008 and will result in ITC reversal of Rs. 70,28,479.00. The directors has confirmed that they are filing appeals against the said rules. Under the present scenario, loss of the company has been understated and net current assets has- been overstated by an equivalent amount.

9. The company maintains separate, books of accounts for its unit - M/s Bharat Hardcoke Manufacturers at Ranchi. The audited accounts of the unit is merged in the statement of accounts of the company.

10. The company has done Inter Unit Transfer of goods amounting to Rs. 5,83,47,215.00 during the financial year due to which both sale and purchase has been overstated by equivalent amount which contravenes the provisions of AS 9.

11. The profit / loss of the partnership firm - M/s R. N. Misra has not been incorporated in the statement of accounts as the accounts of the firm has not been finalized as on the date of balance sheet.

12. Additional information as required under schedule VI para II of the Companies Act, 1956 to the extent not applicable are not given.

13. The figures of the previous year are regrouped, rearranged and recasted wherever necessary.

 
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