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Notes to Accounts of Nelcast Ltd.

Mar 31, 2015

1. Term Loans from Banks are secured by equitable mortgage of land, building and hypothecation of plant and machinery present and future. Working Capital Loan is fully secured by hypothecation of raw materials, stocks in process, finished goods, stores and book debts.

2. CONTINGENT LIABILITIES (Rs. in Lakhs)

Particulars 31st March 31st March 2015 2014

Bank Guarantees 194.02 242.64

Claims against the company not acknowledged as debts primarily towards (net of amount paid to statutory authorities):

(i) Central Excise 331.67 -

(ii) Sales Tax 26.30 -

Claims against the Company not acknowledged as debts represent demands raised by central excise and sales tax authorities during the financial year 2014-15, as reduced by the amounts paid by the Company. Against these demands the Company has already filed appeals with concerned appellate authorities. As per the experts' opinion these disputed matters are likely be decided in Company's favour and as such the management believes the ultimate outcome of the proceedings will not have a material adverse effect on the Company's financial position and results of operations.

3. EXCISE DUTY

Excise Duty on Sales has been disclosed as reduction from the turnover.

4. EMPLOYEE BENEFITS

The Company has a defined benefit gratuity plan covering eligible employees. The following table summarizes the components of net benefit expenses recognised in the Statement of Profit and Loss and the funded status and amounts recognised in the Balance Sheet.

5. Amount payable to Micro, Small and Medium Enterprises (MSMEs) as defined under the Micro Small and Medium Enterprises Development Act, 2006 is Rs. 153.97 Lakhs as on 31st March, 2015 (Previous Year: Rs. 153.22 Lakhs) and there is no overdue amount.

6. INTERIM FINANCIAL REPORTING

The Quarterly financial results are published in accordance with the requirements of Listing Agreement with Stock Exchanges.

7. RELATED PARTY DISCLOSURE

As identified by the Management and relied upon by the auditors

(a) List of Related Parties (2014-15)

Subsidiary Company:- NC Energy Limited

Associate Company:- Nelcast USA INC

Key Management Personnel:- 1. Mr. P. Deepak, Managing Director

2. Ms. P. Divya, Director*

3. Mr. P. Vijaya Bhaskar Reddy, Dy. Managing Director & CFO

8. Previous year's figures have been regrouped/reclassified wherever necessary to correspond with the current year's classification/disclosure.


Mar 31, 2010

1. Loans from Industrial Development Bank of India & Kotak Mahindra Bank Ltd are secured by equitable mortgage of land, building and hypothecation of plant and machinery, both present and future.

2. Working Capital Loan from State Bank of India is fully secured by hypothecation of raw materials, stocks in process, finished goods, stores and book debts and second charge on fixed assets. The said loan is further guaranteed by personal guarantee of two directors of the Company including the Chairman.

3. Provision, Contingent Liabilities and Contingent Assets :

31.03.2010 31.03.2009 Rs. Rs.

a) Contingent liability not provided for on account of Letters of Credit/Bank Guarantee 1,27,43,200 3,75,000

b) Estimated amount of contracts remaining to be 2,06,21,000 2,47,93,000 executed on Capital Account and not provided for

4. Travelling expenses in Schedule S include Rs.13,866/- out of pocket expenses reimbursed to the Auditors. (Previous year Rs. 14,992/-)

5. During the year, a sum of Rs.8.21Crores (Previous year Rs. 10.06 Crores) being interest on borrowings attributable to qualifying assets has been capitalized.

6. Balances of Sundry Debtors, Sundry Creditors, Loans & Advances or receivables are subject to confirmations to be obtained from the parties.

7. Amount payable to Micro, Small and Medium Enterprises (MSMEs) as defined under the Micro Small and Medium Enterprises Development Act 2006, is Rs. 3,75,88,903/- as on 31.3.2010 and there is no overdue amount.

8. Interim Financial Reporting :

The quarterely financial results are published in accordance with the requirements of Listing agreement with stock exchanges.

9. Segment Information :

The Company is principally engaged only in the business of manufacture and sale of Iron Castings, there are no reportable segments as per Accounting Standard No.17 issued by The Institute of Chartered Accountants of India on "Segmental Reporting".

10. Related Party Disclosure :

Disclosure as required by the Accounting Standard 18 on "Related Party Disclosures" are given below:

(a) List of Related Parties.( 2009-10)

Subsidiary Company:- Nelcast USA Inc

Associate company:- Nelcast Energy Corporation Limited

Key Management personnel 1. Mr.P.Radhakrishna Reddy,

Chairman and Managing Director

2. Mr. P.Vijaya Bhaskar Reddy, Deputy Managing Director

(a) List of Related Parties.(2008-09)

Subsidiary Company:- Nelcast USA Inc

Associate company:- Nelcast Energy Corporation Limited

Key Management personnel 1 . Mr.J.Joseph,

Managing Director (Part of the year)

2. Mr.P.Radhakrishna Reddy, , /

Chairman and Managing Director

3 Mr. P.VijayaBhaskar Reddy, Deputy Managing Director

11. Figures for the previous year have been regrouped and reclassified wherever necessary to be in conformity with the figures for the current period.

 
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