Mar 31, 2017
1. CORPORATE INFORMATION
OCL India Limited (the Company) was incorporated in India on 11th October, 1949. The Company is domiciled in India whose shares are listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The registered office is located at Rajgangpur, Sundargarh, Odisha - 770017. The Company is engaged in the manufacturing of cement and refractory products. The Company is a subsidiary of Dalmia Cement (Bharat) Limited (Holding Company) which is a subsidiary of Dalmia Bharat Limited (Ultimate Holding Company).
The financial statements of the Company for the year ended 31st March, 2017 were authorised for issue in accordance with a resolution of the Board of Directors on 10th May, 2017.
2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
2.1 Statement of Compliance
These financial statements, for the year ended 31st March 2017, are the first, the Company has prepared in accordance with section 133 of the Companies Act 2013, read with Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016. For periods up to and including the year ended 31st March 2016, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP). Adjustments pertaining to transition to Ind AS is detailed in Note No. 42.19 of the financial statements.
2.2 Basis of Measurement
The financial statements have been prepared on a historical cost basis (which includes deemed cost as per Ind AS 101), except for the following assets and liabilities which have been measured at fair value:
(i) Derivative financial instruments
(ii) Certain financial assets and liabilities measured at fair value (refer accounting policy regarding financial instruments).
(iii) Defined benefits plans - Plan assets measured at fair value
The financial statements are presented in Indian Rupees (â), which is the Companyâs functional currency and all values are rounded to the nearest crore, except wherever otherwise stated.
3. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the amount reported in the financial statements and notes thereto. Differences between the actual results and estimates are recognised in the period in which the results are known / materialised and, if material, their effects are disclosed in the notes to the financial statements.
3.1 Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.
3.2 Impairment of non-financial assets
The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the assetâs recoverable amount. An assetâs recoverable amount is the higher of an assetâs or CGUâs fair value less costs of disposal and its value in use. It is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded subsidiaries or other available fair value indicators.
3.3 Defined benefit plans
The cost of the defined benefit plan and other post-employment benefits and the present value of such obligation are determined using the actuarial valuations. An actuarial valuation involves making various assumptions that may differ from the actual developments in the future. These include the determination of the discount rate, future salary increases, mortality rates and attrition rate. Due to the complexities involved in the valuation and its long- term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.
3.4 Fair value measurement of financial instruments
When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the Discounted Cash Flow (DCF) model. The inputs to these models are taken from observable markets where possible, but where it is not feasible, a degree of judgment is required in establishing fair values. Judgments include considerations of inputs such as liquidity risk, credit risk and volatility risk. Changes in assumptions about these factors could affect the reported fair value of financial instruments.
3.5 Impairment of financial assets
The impairment provisions for financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on Companyâs past history, existing market conditions as well as forward looking estimated at the end of each reporting period.
3.6 Provision for decommissioning
The Company has recognised a provision for mine reclamation until the closure of mine. In determining the fair value of the provision, assumptions and estimates are made in relation to the expected future inflation rates, discount rate, expected cost of reclamation of mines, expected balance of reserves available in mines and the expected life of mines. The Company estimates that the costs would be incurred over its residual economic life estimated as per the mining plan or finite life whichever is lower and calculates the provision using the DCF method based on the following assumptions:
- Inflation rate - 5.37%
- Discount rate - 7.79%
OTHER NOTES TO NOTE NO. 4 TO 8 (a) Disclosures for Property, Plant & Equipment (PPE) and Capital Work-in-Progress (CWIP)
(i) Amount of borrowing cost capitalised and rate of capitalisation
(ii) Additions/ (-) deduction to PPE and Capital work-in-progress includes Rs.-2.39 Crore (Previous Year: Rs.5.76 Crore) towards adjustment of foreign exchange loss / (gain) on long term foreign currency borrowings.
(iii) The Company has clear title to all the items of PPE. All the PPE related to Cement Division (with net carrying values shown at Rs.2,001.10 Crore, Rs.1,923.02 Crore and Rs.1,935.09 Crore, as on 31st March, 2017, 31st March, 2016 and 1st April, 2015 respectively) are either mortgaged or hypothecated against the secured borrowings of the company as detailed in Note No. 22 and 26.
(iv) The Company has elected the option of fair value as deemed cost for following class of PPE:
(v) The above fair valuation has been performed by an external independent valuer and following assumptions/ techniques are applied by the valuer:
Freehold land
The fair valuation of landed properties are based on the benchmark value of land as fixed for different mouzas (village) by the authorities of respective State Governments.
Buildings
The replacement cost of each civil item has been arrived on basis of proper indexing to the cost inflation index. The present value/ fair value has been arrived after deducting depreciation for the life enjoyed till date. The plinth area cost Indices for civil works as set by Central Public Works Department (CPWD), New Delhi has been referred as cost inflation index. Designed/effective life of civil items as standardized for the industry has been referred.
Plant & Machinery & Railway line
The replacement cost has been arrived after proper indexing of the cost capitalised on the installation date. The above indexation are in conformity with the machineries and machine tools price index as standardized by the Reserve Bank of India. The present market value/fair valuation is arrived after deducting depreciation for the life enjoyed till date. Designed/effective life of plant and machinery as standardized for the industry has been referred.
(vi) Capital Work-in-Progress includes the following expenses / (income)
Current year expenses pertains to Green Power Project, Rajgangpur and previous year expenses pertains to OCL Bengal Cement Works, Midnapore.
(b) Disclosures for Investment Property
(i) The Company has identified and reclassifed certain immovable properties as Investment Properties on the date of transition i.e. 1st April, 2015.
(ii) There is no material expenses incurred for the maintenance of investment properties nor income derived out of the same.
(iii) The Company has no restrictions on the realisability of its investment properties and no contractual obligations to purchase, construct or develop investment properties or for repairs, maintenance and enhancements. Investment properties are either mortgaged or hypothecated against the secured borrowings of the company as detailed in Note No. 22 and 26.
(iv) As at 31st March 2017, 31st March 2016 and 1st April 2015, the fair values of the properties are Rs.2.99 Crore Rs.2.99 Crore and Rs.3.03 Crore respectively. Fair values are determined based on an annual evaluation performed by an accredited external independent valuer. The fair valuation of investment properties comprising land are based on the benchmark value of land as fixed for different mouzas (village) by the authorities of respective State Governments.
(c) Disclosures for Intangible Assets
(i) The mining rights has been granted by various state governments for a finite period. The Company has amortised on straight line basis, the expenditure on mining rights over its residual economic life estimated as per the mining plan or finite life whichever is lower.
(ii) The Company has clear title to the mining rights classified under Intangible Assets.
(d) Other disclosures
(i) Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for the year ended 31st March, 2017 is Rs.59.91 Crore ( 31st March, 2016: Rs.24.63 Crore and 1st April, 2015: Rs.34.83 Crore).
(ii) Disposals/adjustments includes Rs.1.97 Crore and Rs.0.16 Crore for the year ended 31st March 2017 and 31st March 2016, respectively classified to assets held for sale or disposal.
(iii) There has been no impairment loss on above assets during the year.
(iv) The livestock comprises of milch cattles and the produce is utilised for welfare of the employees. It is measured at cost as the fair value cannot be measured reliably.
5 INVENTORIES (Refer Note No. 3.6)
- During the year ended 31st March, 2017 Rs.1.37 Crore ( 31st March, 2016: Rs.2.89 Crore) was recognised as an expense for the
inventories carried at net realisable value.
- The above inventories were valued at FIFO basis, hence reversal for write down of inventories in earlier periods were not required.
- No restriction has been put by the charge holders on the use of the inventories of the Company.
16 TRADE RECEIVABLES
- There are no debts due by directors or other officers of the Company or any of them either severally or jointly with any other persons or debts due by firms or private companies respectively in which any director is a partner or a director or a member.
- Trade receivables are netted with bills discounted as at 31st March, 2017: Rs.8.81 Crore (31st March, 2016: Rs.1.97 Crore and 1st April, 2015: Rs.4.75 Crore)
- The Company has provided for expected credit losses in two parts. Firstly, provision has been made on the basis of realisation pattern or past experience, for receivables outstanding below 181 days. Secondly, provision has been made by applying the provision matrix for receivables outstanding as mentioned below.
7 CASH & CASH EQUIVALENTS
Bank balances includes Rs.45,035 (31 March, 2016: Rs.45,139 and 1st April, 2015: Rs.45,191) lying in a current account with a nationalised bank, to be operated jointly by the authorised signatories of the Company and OCL Iron & Steel Limited in respect of coal block operations as mentioned in Note No. 42.10.
8 EQUITY SHARE CAPITAL (Refer Statement of Changes in Equity)
(a) Reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period
(b) Terms/ Rights attached to Equity Shares
The Company has issued only one class of equity shares having a par value of Rs.2 per share. Each equity shareholder is entitled to one vote per share. The Company had declared and paid dividends in Indian rupee.
The Company has proposed Rs.28.45 Crore as dividend ( Rs.5 per share) before the date of approval for issue of financial statements but not recognised as a distribution to owners during the period, (31st March, 2016: nil). During the previous year ended 31st March, 2016 , the amount of interim dividend per share recognised for distribution and distributed to equity shareholders was Rs.4 per share.
In 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.
(c) 4,24,79,273 (% of shareholding:74.66) shares held by Dalmia Cement (Bharat) Ltd. (Holding Company) w.e.f. 25.02.2015
(d) Details of shareholders holding more than 5% shares in the Company
(e) Aggregate number of bonus shares issued and shares bought back during the period of five years immediately preceding the reporting date: Nil
9 OTHER EQUITY (Refer Statement of Changes in Equity)
a) Security Premium Reserve
Security premium reserve was created on merger of Dalmia Cement (Meghalaya) Ltd during the financial year 2007-08. The Company may use this reserve for issue of fully paid-up bonus shares to its members and for buy-back of its shares.
(b) Capital Reserve
Capital Reserve of Rs.1.57 Crore was created due to merger of Dalmia Cement (Meghalaya) Limited during financial year 2007-08. Rs.0.08 Crore was created out of subsidy received from Orissa State Financial Corporation, Odisha against capital investment as per scheme framed by the Odisha Government. Rs.5.77 Crore has been received from Director of Industries, Odisha as Industrial Policy benefits as per the scheme framed by the Odisha Government.
(c) Debenture Redemption Reserve (DRR)
The Company has issued redeemable non-convertible debentures. The Companies (Share Capital and Debentures) Rules, 2014 (as amended), require the Company to create DRR out of profits of the Company available for payment of dividend. DRR is required to be created for an amount which is equal to 25% of the value of debentures issued. The Company is creating debenture redemption reserve every year out of the profit available for payment of dividend to ensure creation of reserve equal to 25% of the value of debenture issued over the life of the debentures.
10.1 In the opinion of the Board of Directors and to the best of their knowledge and belief, the valuation on realisation of financial assets and other assets in the ordinary course of business would not be less than the amount at which they are stated in the financial statements.
10.2 Scheme of Arrangement and Amalgamation amongst the Company, Dalmia Cement East Limited, Shri Rangam Securities & Holdings Limited, Dalmia Bharat Cements Holdings Limited and Odisha Cement Limited (âScheme 1â), has been approved by the Board of Directors, Shareholders and Creditors of the Company and the BSE Limited and National Stock Exchange of India Limited (âStock Exchangesâ). Scheme 1 is pending for sanction of the jurisdictional NCLT of the companies involved and has not come into effect.
Scheme of Arrangement and Amalgamation amongst Odisha Cement Limited, Dalmia Bharat Limited and Dalmia Cement (Bharat) Limited (âScheme 2â) has been approved by the Board of Directors at its meeting held on 5th November, 2016, as Scheme 2 involves its wholly owned subsidiary, i.e., Odisha Cement Limited and is inter alia conditional upon the effectiveness of the Scheme 1, subject to approval of shareholders, creditors and other applicable regulatory authorities. Scheme 2 has been approved by the Stock Exchanges on 5th May, 2017.
The accounting for arrangement and amalgamation as contemplated in the aforesaid schemes will be done upon the scheme coming into effect.
10.3 Standards issued but not yet effective
In March 2017, the Ministry of Corporate Affairs issued the Companies ( Indian Accounting Standards ) (Amendments) Rules 2017, notifying amendments to Ind AS 7, âStatement of Cash Flowsâ and Ind AS 102, â Share-based paymentsâ. These amendments are in accordance with the recent amendments made by International Accounting Standards Board (IASB) to IAS 7, âStatement of Cash Flowsâ and IFRS 2, â Share-based paymentsâ, respectively. The amendments are applicable to the Company from 1st April, 2017.
10.4 Balance confirmation letters were sent in respect of accounts showing debit or credit balances. Balance confirmations have not been received in some cases. In the opinion of the management, adjustments, if any, required on confirmation and reconciliation is not expected to be material.
10.5 Details of the Companyâs interest in Joint Venture
In respect of license granted for captive mining block at Radhikapur mines, a Joint Venture company Radhikapur (West) Coal Mining Private Limited has been incorporated on 29th March, 2010 in which the Companyâs interest jointly with OCL Iron & Steel Limited (OISL) is 14.696%. The Company has invested Rs.7.35 Crore (PY Rs.7.35 Crore) in equity shares of the JV Company which includes Rs.3.83 Crore (PY Rs.3.83 Crore) being proportionate value of shares to be transferred to OISL after the receipt of approval from the Ministry of Coal, Government of India and other Joint Venture Partners.
Consequent upon decision of the Honâble Supreme Court of India cancelling the allocation of Coal block, vide Order dated 24th September, 2014, the Company is in the process of assessing the recoverability of the amounts invested of Rs.3.51 Crore in the Joint Venture Company, Radhikapur (West) Coal Mining Private Ltd. As a matter of prudence, a provision for similar amount has been made in the accounts during the earlier years.
10.6 Disclosure on Corporate Social Responsibility Expenses
(a) Gross amount required to be spent by the Company during the year in pursuance to the provisions of Section 135 of the Companies Act, 2013 and rules made thereunder : Rs.3.61 Crore (PY Rs.3.52 Crore).
(b) Amount spent during the year 2016-17 and shown under Other Expenses in the Statement of Profit and Loss (Refer Note No. 39):
10.7 Disclosures as required by Ind AS 17, Leases
A Finance Lease
(a) Company as Lessor
The Company has purchased wagons under âown your wagon schemeâ of Railways and leased it to Railways on rent ,the wagons were recognized as assets and carried in the books at residual value, the company is earning rental income from the arrangement, hence it qualifies to be recognized as finance lease arrangement where Railways is the lessee. Future minimum lease receivables (MLR) and its present value under finance leases are as follows:
(b) Company as Lessee
The Company has finance lease agreements for land at various locations. These leases have term of between 90 and 99 years and are eligible for renewal at the end of lease term. Future minimum lease payments (MLP) and its present value under finance leases are as follows:
B Operating Lease
The Company has taken / given various residential / commercial premises and plant & equipment under cancellable operating lease. These lease agreements are normally renewed on expiry, wherever required.
The future minimum lease payments under non-cancellable operating leases in the aggregate and for each of the following periods:
Total operating lease expenses debited to statement of profit and loss is Rs.13.66 Crore (Previous Year: Rs.14.18 Crore)
10.8 Disclosures as required by Ind AS 19, Employee Benefits
(a) Defined contribution plans:
(b) Defined benefit plan:
Gratuity
The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount equivalent to 15 to 30 daysâ salary for each completed year of service subject to a maximum of Rs.0.10 Crore. Vesting occurs upon completion of five continuous years of service in accordance with Indian law. The gratuity fund is separately administered by a Gratuity Fund Trust.
(c) Other long-term employee benefits:
Compensated Absences
The Company provides for the expected cost of accumulating paid absences which can be carried forward and used in future periods by the employees. The obligation for accumulating paid absences has been recognised at the end of the reporting period.
The weighted average duration based on discounted cash flows of the defined benefit plan obligation at the end of the reporting period is 5 years (31st March,2016: 5 years).
The weighted average duration based on discounted cash flows of the other long term employee benefits at the end of the reporting period is 7 years (31st March,2016: 5 years).
10.9 Disclosures as required by Ind AS 108, Operating Segments Identification of Segments:
The chief operational decision maker monitors the operating results of its business segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements. Operating segments have been identified on the nature of products and services and have been identified as per the quantitative criteria specified in the Ind AS.
Operating Segments identified as follows:
(a) Cement Division which produces various grades of cement and cement related products
(b) Refractory Division which produces various types of refractory products.
No other operating segments have been aggregated to form the above reportable operating segments.
Segment revenue and results:
The expense or incomes which are not directly attributable to any business segment are shown as unallocable expenditure (net of unallocated income).
Segment assets and liabilities:
Segment assets include all operating assets used by the operating segment and mainly consist of property, plant and equipment, trade receivables, cash and cash equivalents and inventories. Segment liabilities primarily include trade payables and other liabilities. Common assets and liabilities which cannot be allocated to any of the segments are shown as part of unallocable assets/liabilities.
Inter segment transfer:
As per practice consistently followed, inter segment transfers for capital jobs recognised at cost and for other jobs at estimated realisable value. Profit or loss on inter segment transfers are eliminated at the Company level.
* In addition to above, perquisite value of Rs.6.53 crore for 36,000 Employee Stock Options were granted by Dalmia Bharat Limited, (Ultimate Holding Company) on February 03, 2016 at a price of Rs.105.50/- per share being the exercise price representing discount of 20% on the price determined as 30 days average of opening price as on May 18, 2012. The said 36,000 ESOPs were vested and exercised by Shri Amandeep on February 03, 2017.
The transactions with related parties are net of taxes & reimbursement of expenses and have been made on terms equivalent to those that prevail in armâs length transactions. This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates. Outstanding balances at the year-end are unsecured and settlement occurs in cash.
10.10 Fair Value Measurement
The fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties other than in a forced or liquidation sale.
The following methods and assumptions were used to estimate the fair values:
(1) Fair value of cash and short-term deposits, trade and other short term receivables, trade payables , other current liabilities, shortterm loans from banks and other financial institutions approximate their carrying amounts largely due to the short term maturities of these instruments.
(2) Financial instruments with fixed and variable interest rate are evaluated by the Company based on parameter such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken into account for the expected losses of these receivables.
The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique.
Level 1 : quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2 : other techniques for which all inputs which have a significant effects on the recorded fair value are observable, either directly or indirectly.
Level 3 : techniques which use inputs that have a significant effects on the recorded fair value that are not based on observable market data.
10.11 Financial Risk Management Objective and Policies:
The Companyâs principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables and advances from customers. The main purpose of these financial liabilities is to finance the Companyâs operations, projects under implementation and to provide guarantees to support its operations. The Companyâs principal financial assets include Investment, loans and advances, trade and other receivables and cash and bank balances that derive directly from its operations.
The Company is exposed to market risk, credit risk and liquidity risk. The Companyâs financial risk management is an integral part of how to plan and execute its business strategies. The Companyâs financial risk management policy is set by the Managing Board.
All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision. It is the Companyâs policy that no trading in derivatives for speculative purposes to be undertaken. The Board of Directors reviews and finalises policies for managing each of these risks, which are summarised below.
(a) Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and commodity price risk. Financial instruments affected by market risk include investments and deposits, foreign currency receivables, payables, loans and borrowings and derivative financial instruments.
The Company manages market risk through a treasury department, which evaluates and exercises independent control over the entire process of market risk management. The treasury department recommends risk management objectives and policies, which are approved by Senior Management and the Audit Committee. The activities of this department include management of cash resources, implementing hedging strategies for foreign currency exposures, borrowing strategies and ensuring compliance with market risk limits and policies.
(i) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to optimize the Companyâs position with regard to interest income and interest expenses to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.
Interest rate sensitivity
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on the unhedged portion of loans and borrowings. With all other variables held constant, the Companyâs profit before tax is affected through the impact on floating rate borrowings, as follows:
(ii) Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Companyâs exposure to the risk of changes in foreign exchange rates relates primarily to the Companyâs operating and financing activities. The Company manages its foreign currency risk by hedging transactions that are expected to realise in future.
Note: Details of amount in foreign currency less than 100,000 are given below :
-Forward Contract for imports in Euro (FY 2016: 95,500, FY 2015: 49,725).
-Trade Receivables in GBP (FY 2016: 9,101.85).
-Trade Payables in GBP (FY 2017: 7078.11, FY 2016: 19,481.63, FY 2015: 21,425).
-Cash & bank balance in USD (FY 2017: 0.75, FY 2016: 1259.75, FY 2015: 5.75) , in GBP (FY 2017: 1.20, FY 2016: 1.20, FY 2015: 1.20), in EURO (FY 2017: 6.66, FY 2016: 236.66, FY 2015: 6.66), in RMB (FY 2017: 7.50, FY 2016: 606.50, FY 2015: 3,000), in JPY (FY 2017: 580, FY 2016: 580, FY 2015: 580), and in Kwacha (FY 2017: 30,000, FY 2016: 30,000, FY 2015: 30,000).
-PCFC Loan in USD (FY 2017: 64,986.30) and in GBP (FY 2016: 8,191).
-Interest accrued on term loan & buyers credit in USD (FY 2017: 60,357, FY 2016: 30,799, FY 2015: 17,667) and in EURO (FY 2017: 2,922.08).
Note: Details of amount in Rupee less than 100,000 are given below :
-Cash & bank balance in USD (FY 2017: 48, FY 2016: 83,503, FY 2015: 358) , in GBP (FY 2017: 95, FY 2016: 114, FY 2015: 110), in EURO (FY 2017: 449, FY 2016: 17,750, FY 2015: 445), in RMB (FY 2017: 70, FY 2016: 6,290, FY 2015: 30,600), in JPY (FY 2017: 327, FY 2016: 347, FY 2015: 299), and in Kwacha (FY 2017: 309, FY 2016: 309, FY 2015: 309).
Foreign Currency Sensitivity
The following tables demonstrate the sensitivity to a reasonably possible change in exchange rates, with all other variables held constant. The impact on the Companyâs profit before tax is due to changes in the fair value of monetary assets and liabilities.
(iii) Commodity price risk
The Company is affected by the price volatility of certain commodities. Its operating activities require the on-going purchase or continuous supply of slag, coal, pet coke, and gypsum for manufacture of cement and quartzise, magnasite and alumina for manufacture of refractory products. The Company procures slag, coal, pet coke domestically by participating in public tenders / e-auctions. Imported pet coke is exposed to price volatility due to fluctuation in international petroleum market. Quartzite is procured from captive mines, magnasite and alumina are imported. Raw material for refractory products are procured under annual rate contracts or by floating tenders. The Company monitors its purchases closely to optimise the price.
(b) Credit Risk
Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables and advances to suppliers) and from its financing activities, including deposits and other financial instruments.
(i) Trade Receivables
Customer credit risk is managed by each business unit subject to the Companyâs established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored. An impairment analysis is performed at each reporting date on an individual basis for major clients.
The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and operate in largely independent markets.
The ageing analysis of the receivables (gross of provisions) have been considered from the date the invoice falls due.
(ii) Financial Instruments and Cash and bank balances
Credit risk from balances with banks and financial institutions is managed by the Companyâs treasury department in accordance with the Companyâs policy. Investments of surplus funds are made only with approved authorities. Credit limits of all authorities are reviewed by the Management on regular basis. All balances with banks and financial institutions is subject to low credit risk due to good credit ratings assigned to these entities.
(c) Liquidity Risk
The Company monitors its risk of a shortage of funds using a liquidity planning tool. The Companyâs objective is to maintain a balance between continuity of funding and flexibility through the use of cash credit, letter of credit and working capital limits.
The table below summarises the maturity profile of the Companyâs financial liabilities based on contractual payments.
10.12 Capital Management:
For the purpose of the Companyâs capital management, equity includes issued equity capital, securities premium and all other equity reserves attributable to the equity share holders, including capital reserve and net debt includes interest bearing loans and borrowings except lease liability less investment in mutual funds, commercial papers and cash and cash equivalents. The primary objective of the Companyâs capital management is to safeguard continuity, maintain a strong credit rating and healthy capital ratios in order to support its business and provide adequate return to shareholders through continuing growth.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The funding requirement is met through a mixture of equity, internal accruals, long term borrowings and short term borrowings. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt.
In order to achieve this overall objective, the Companyâs capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.
10.13 First Time Adoption of Ind-AS:
These financial statements, for the year ended 31st March 2017, are the first, the Company has prepared in accordance with section 133 of the Companies Act 2013, read with Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016. For periods up to and including the year ended 31st March 2016, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP).
Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on 31st March 2017, together with the comparative period data as at and for the year ended 31st March 2016. In preparing these financial statements, the Companyâs opening balance sheet was prepared as at 1st April 2015, the Companyâs date of transition to Ind AS. The figures for the previous periods and for the year ended 31st March, 2015 have been restated, regrouped and reclassified, wherever required to comply with Ind-AS and Schedule III to the Companies Act, 2013 and to make them comparable.
10.14 (a) Exemption applied
The Company has applied following exemptions
(1) Business Combinations
The Company has elected not to apply Ind AS 103 - Business Combinations, retrospectively to past business combinations that are occurred before the date of transition to Ind AS.
(2) Deemed Cost
The Company has elected to measure the certain items of property, plant and equipment on the date of transition to Ind AS i.e. 1st April, 2015 at its fair value and is using that fair value as its deemed cost on that date. Items measured at fair value are plant and machinery, buildings, freehold land and railway sidings. Lease hold land, furniture & fixtures, office equipments and vehicles are carried at their previous GAAP carrying amount.
(3) Leases
The Company has assessed the classification of each element as finance or operating lease at the date of transition to Ind AS on the basis of the facts and circumstances existing as at that date.
(4) Long Term Foreign Currency Monetary Items
The Company has elected to continue the policy adopted for accounting for exchange differences arising from translation of long-term foreign currency monetary items recognised in the financial statements for the period ending immediately before the beginning of the first Ind AS financial reporting period as per the previous GAAP. The policy is detailed in Note No. 3.8 of significant accounting policies.
(5) Investments in subsidiaries and joint ventures
The Company has elected to measure investments in subsidiaries and joint ventures at previous GAAP carrying amount, accordingly it has elected to measure the investments at deemed cost in its opening Ind AS Balance Sheet.
(6) Fair value measurement of financial assets or financial liabilities at initial recognition
Under IndAS 109, the financial assets and liabilities are initially recognised at fair value and subsequently measured at amortised cost, less allowance for impairment, if any. For transactions entered into on or after the date of transition to IndAS, the requirement of initial recognition at fair value is applied prospectively.
(7) Decommissioning liabilities included in the intangible assets
The Company has elected to measure the decommissioning liability related to mines, at the date of transition to IndAS in accordance with Ind AS 37.
(8) Non current assets held for sale
The Company has elected to measure non current assets held for sale at carrying value at the date of transition, hence opening IndAS Balance Sheet was not required to be adjusted.
10.14 (b) Exceptions
The following mandatory exceptions have been applied in accordance with IndAS 101 in preparing the financial statements.
(1) Estimates
The estimates at 1st April, 2015 and at 31st March, 2016 are consistent with those made for the same dates in accordance with Indian GAAP (after adjustments to reflect any differences in accounting policies, if any) apart from the following items where application of Indian GAAP did not require estimation.
Fair Value through Other Comprehensive Income
Impairment of financial assets based on expected credit loss model
(2) Classification and measurement of financial assets
The Company has classified the financial assets at fair value in accordance with Ind AS 109 on the basis of facts and circumstances that exists at the date of transition to Ind AS.
10.14 (f) Notes to the Reconciliation
1. (a) Property Plant & Equipment
The Company has elected to measure items of property, plant and equipment on the date of transition to Ind AS i.e. 1st April, 2015 at its fair value and is using that fair value as its deemed cost on that date. Details of increase in amounts due to fair valuation of assets is disclosed under Other Notes to Note No. 5 to 9. This amount has been adjusted in retained earnings.
2. Non Current Investments
A financial guarantee is given against loan to OCL Global, a subsidiary and OCL China, a step-down subsidiary. The financial guarantee is recognised at fair value and resulting gain/loss at the time of transition of Rs.0.73 Crore is recognised in retained earnings and subsequent gain/loss of Rs.0.09 Crore in statement of profit and loss. Preference shares are fair valued through profit or loss at transition date, Rs.3.91 Crore has been adjusted in retained earnings.
3. Loans
Loan to employees are measured at fair value using amortisation method. At transition date, resulting change in assets are adjusted in retained earnings. Subsequent adjustments are recognised in statement of profit and loss.
4. Other Financial Assets
The Company has recognized the present value of future lease rental as receivable and derecognized the carrying value of wagons from PPE. At the time of transition, Rs.1.45 Crore has been recognised under other financial assets and Rs.0.29 Crore derecognised from PPE.
For 31st March 2016, Rs.0.05 Crore has been derecognised from Other operating revenue and has been recognised as interest income.
Current Financial Assets- Others includes, impact of fair valuation of derivative instruments as at 31st March, 2016: Rs. -0.48 Crore and as at 31st March, 2015: Rs.1.17 Crore.
5. Inventories
6. Current Investments
The mutual fund investments are valued at fair value through profit or loss at time of transition and resulting gain/loss is recognised under retained earnings. Subsequently the gain/ loss is recognised under statement of profit and loss.
7. Current Trade Receivables
The Company has applied practical expediency in calculation of the expected credit losses on trade receivables by using the provision matrix for each business segment as detailed in Note No. 16 of notes to the financial statements. Outstanding balance of provision as at 31st March, 2016: Rs.5.03 and as at 31st March, 2015: Rs.10.53 Crore.
8. Current Assets
(i) Impact of fair valuation of PPE on assets held for sale as at 31st March, 2016 : Rs. -0.16 Crore
The adjustments pertaining to opening balance sheet at the time of transition to Ind AS are adjusted into retained earnings and subsequently , the adjustments are made into Profit or Loss or Other Comprehensive Income as prescribed under Ind AS.
10. Borrowings
Under Indian GAAP, transaction costs incurred in connection with borrowings were amortised upfront and charged to profit or loss for the period. Under Ind AS, transaction costs are included in the initial recognition amount of financial liability and subsequently charged to profit or loss using the effective interest method. Fair value of leased land has been recognised on the date of transition to Ind AS.
11. Provisions
The Company has recognised the decommissioning liability of Mines at discounted cost. The policy in respect to the provision amount is envisaged in Note No. 3.16 of notes to the financial statements.
For the year ended 31st March 2016, The Company has recognised Rs.1.09 Crore under finance cost and Rs.0.96 Crore under depreciation. The provision as per previous GAAP of Rs.1.67 Crore has been derecognised by crediting Cost of Material Consumed Rs.1.28 Crore and Mines Restoration expenses Rs.0.39 Crore.
12. Deferred Tax Liability/Asset
Indian GAAP required deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP.
In addition, the various transitional adjustments lead to temporary differences. According to the accounting policies, the Company has to account for such differences. On the date of transition, the net impact on deferred tax liabilities of Rs.273.24 Crore has been recognised in retained earnings and for the year ended 31st March, 2016, Rs.3.30 Crore has been recognised in statement of profit and loss.
13. Short Term Provision
Under Indian GAAP, proposed dividends including dividend distribution tax (DDT), are recognised as a liability in the period to which they relate, irrespective of when they are declared. Under Ind AS, a proposed dividend is recognised as a liability in the period in which it is declared by the Company (usually when approved by shareholders in a general meeting) or paid.
Therefore, the dividend liability including DDT amounting to Rs.27.39 Crore has been derecognised as on transition date and has been recognised in retained earnings during the year ended 31st March, 2016 as declared and paid.
15. Employee Benefit Expenses
Both under Indian GAAP and Ind AS, the Company recognised costs related to its post-employment defined benefit plan on an actuarial basis. Under Indian GAAP, the entire cost, including actuarial gains and losses, are charged to profit or loss. Under Ind AS, remeasurements [comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets excluding amounts included in net interest on the net defined benefit liability] are recognised in the balance sheet through OCI. Thus the employee benefit expense is reduced by Rs.1.03 Crore and remeasurement gains/ losses on defined benefit plans has been recognized in the OCI net of tax.
Unwinding of discount on loan to employees recognised as at transition date: Rs.0.02 Crore
16. Finance Cost
10.14 (g)There is no material impact on the Statement of Cash Flows due to the transition from previous GAAP to Ind AS.
10.15 Details of Specified Bank Notes held and transacted during the period 8th November, 2016 to 30th December, 2016 are given below:
10.16 Previous year figures have been regrouped/rearranged/ reclassified where necessary to correspond with current year figures.
Mar 31, 2016
A) Terms/ Rights attached to Equity Shares
The Company has issued only one class of equity shares having a par
value of Rs. 2 per share. Each equity shareholder is entitled to one
vote per share. The Company had declared and paid dividends in Indian
rupees.
During the year ended 31st March 2016, the amount of interim dividend
per share recognised for distribution and distributed to equity
shareholders is Rs. 4 (Previous year: Final Dividend was Rs. 4).
In 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.
c) 4,24,79,273 (% of shareholding:74.66) shares held by Dalmia Cement
(Bharat) Ltd. (Holding Company) w.e.f. 25.02.2015.
e) Aggregate number of bonus shares issued and shares bought back
during the period of five years immediately preceding the reporting
date: Nil
Notes
1 Gross Block includes amount added in 1985 on revaluation of Land
Rs.132.31 lakh, Buildings Rs.1,200.64 lakh and Plant and Machinery
Rs.1,917.55 lakh as carried out by an external independent valuer.
Since the valuation was carried out long back the indices applied by
the valuer is not available
2 Additions to Fixed Assets and Capital Work-in-Progress include net
borrowing cost of Rs.384.76 lakh capitalised during the year (Previous
Year Rs.625.09 lakh ).
3 Additions to Fixed Assets and Capital work-in-progress include
Rs.576.27 Lakh (Previous Year Nil), towards adjustments of foreign
exchange loss/ (gain) on long term foreign currency borrowings.
4 Additions to Capital WIP include Pre-operative expenses/income as
detailed under Note 28.19.
5 There has been no impairment loss on assets during the year.
6. In the opinion of the Board and to the best of their knowledge and
belief, the valuation on realisation of current assets, loans and
advances in the ordinary course of business would not be less than the
amount at which they are stated in the Balance Sheet.
7. The Board of Directors has, at its meeting held on 28th March,
2016, approved the Scheme of Arrangement and Amalgamation amongst OCL
India Limited, Dalmia Cement East Limited, Shri Rangam Securities &
Holdings Limited, Dalmia Bharat Cements Holdings Limited and Odisha
Cement Limited. The said Scheme has been filed with the Stock Exchanges
and shall be submitted with the High Court(s) on its approval by the
Stock Exchanges.
8. In respect of license granted for captive mining block at
Radhikapur mines, a Joint Venture company Radhikapur (West) Coal Mining
Private Limited has been incorporated on 29th March 2010 in which the
Company''s interest jointly with OCL Iron & Steel Limited (OISL) is
14.696%. The Company has invested Rs. 734.80 Lakh (PY 734.80 lakh) in
equity shares of the JV Company which includes Rs. 383.35 Lakh (PY Rs.
383.35 lakh) being proportionate value of shares to be transferred to
OISL after the receipt of approval from the Ministry of Coal, Govt of
India and other Joint Venture Partners.
9. Consequent upon decision of the Hon''ble Supreme Court of India
cancelling the allocation of Coal block, vide Order dated 24th
September, 2014, the Company is in the process of assessing the
recoverability of the amounts invested of Rs. 351.45 Lakh in the Joint
Venture Company ''Radhikapur (West) Coal Mining Private Ltd.'' As a
matter of prudence, a provision for similar amount has been made in the
accounts during the earlier years.
10. Bank balances includes Rs.0.45 Lakh (PY Rs. 0.45 Lakh)lying in a
current account with a nationalised bank, to be operated jointly by the
authorised signatories of the Company and OISL in respect of coal block
operations as mentioned in note 28.6 above
11. Balance confirmation letters were sent in respect of accounts
showing debit or credit balances. Balance confirmations have not been
received in few cases. In the opinion of the management, adjustments,
if any, required on confirmation and reconciliation is not expected to
be material.
12. Disclosure on Corporate Social Responsibility Expenses
(a) Gross amount required to be spent by the Company during the year in
pursuance to the provisions of Section 135 of the Companies Act, 2013
and rules made thereunder - Rs. 352.24 lakh (PY Rs. 270.24 lakh)
(b) Amount spent during the year 2015-16 and shown under Other Expenses
in the Statement of Profit and Loss (Refer Note No. 27):
13. Previous year figures have been regrouped/rearranged/
reclassified where necessary to correspond with current year figures.
Mar 31, 2015
1. SHARE CAPITAL
a) Terms/ rights attached to ordinary shares
The Company has issued only one class of ordinary shares having a par
value of Rs. 2/- per share. Each holder of ordinary 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 2015, the amount of dividend per share
recognised for distribution to ordinary shareholders is Rs. 4 /- (
Previous year: Final dividend Rs. 4/- per share).
In event of liquidation of the company, the holders of ordinary 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 ordinary shares held by the shareholders.
b) 4,24,79,273 (% of shareholding-74.66) shares held by Dalmia Cement
(Bharat) Ltd. (Holding Company) w.e.f. 25.02.2015
c) Aggregate number of bonus shares issued and shares bought back
during the period of five years immediately preceding the reporting
date: Nil.
2. Contingent liabilities not provided for in respect of :
(Rs. In Lakhs)
2014-15 2013-14
(i) Claims against the Company not acknowledged
as debts
(a) Disputed liability relating to ESI
Contribution on over time wages and other 59.96 57.95
allowances
(b) Disputed liability relating to PF
Contribution on certain allowances 71.22 71.22
(c) Disputed liability relating to payment
of premium on forest land used for 154.13 154.13
Mining purpose
(d) For Pollution Control Board, Orissa 8.86 8.86
(e) Disputed claim for supply of
Refractories 156.30 156.30
(f) Disputed liabilities relating to Railway
for enhanced Godown rent and over 219.14 197.49
loading penal charges
(g) Disputed Sales Tax demand(including
interest & penalty)-matter under appeal 838.94 665.57
(h) Disputed Entry Tax demand-matter 416.60 293.28
under appeal
(i) Disputed Excise matters 3,756.38 3,756.38
(j) Disputed liabilities relating to - 302.16
purchase of Electricity
(k) Disputed liabilities for Lanjiberna 8,349.76 8,349.76
Mines for payment of Stamp Duty
(l) Disputed liabilities for Lanjiberna 2,419.17 -
Mines for payment under Mines and Min-
erals (Development & Regulation) Act.
(m) Others 86.21 222.15
16,536.67 14,235.25
(ii) Other monies for which the Company is
contingently liable :
(a) Disputed liability relating to labour
matters-pending in Courts 3.01 4.57
(b) Disputed liability relating to Land
matters-pending in Courts 38.21 39.51
(c) Others 78.00 78.50
Total 119.22 122.58
(iii) Disputed liability in respect of
Income Tax demands 296.10 213.03
In respect of items above, future cash
outflows in respect of contingent liabilities
are determinable only on receipt of judgements
/ decisions pending at various forums /
authorities.
(iv) a)Liability on account of OD limit of
USD 3.50 million enjoyed by OCL Global 1,000.57 498.21
Limited a Subsidiary, secured by First pari
passu charge on current assets of the company
and further secured by second pari passu
charge on fixed assets of cement division of
the company outstanding amount at year end USD
15,86,704.55 (PY USD 8,39,441) #
b)Guarantee given to Banks on behalf of OCL
China Ltd USD 25,80,673 (Previous 1,627.37 1,749.75
Year USD 29,48,184)#
c)Guarantee given to Banks on behalf of
Radhikapur (West) Coal Mining Private - 636.00
Limited against which counter guarantee
of Rs. 3.32 Lacs has been received
from OISL#
3. In the opinion of the Board and to the best of their knowledge and
belief, the valuation on realisation of current assets, loans and
advances in the ordinary course of business would not be less than the
amount at which they are stated in the Balance Sheet.
4. The Supreme Court of India in April, 1996, upheld the validity of
Jute Packing Materials (Compulsory use in Packing Commodities) Act,
1987. The Company has been legally advised that the Act is applicable
to it only with effect from October, 1996. Under the Act, Cement
Manufacturers are required to use Jute Packaging Material for supply or
distribu- tion upto 50% of their total production. The Calcutta High
Court has granted stay against show cause notice received by the
Company from the Jute Commissioner. The Transfer Petition filed by the
Union of India before the Hon''ble Supreme Court was dismissed by the
Hon''ble court due to default and as a result of which the pending writ
of the Company will be heard by the Hon''ble Kolkata High Court on
merits. The amount that may become payable, is presently not
ascertainable. However, the Government has not notified the compulsory
packing of Cement in jute packing materials for the period effective
from 1st July, 1997.
5. In respect of licence granted for captive mining Block at
Radhikapur mines, a Joint Venture company Radhikapur (West) Coal Mining
Private Limited has been incorporated on 29th March 2010 in which the
Company''s interest jointly with OCL Iron & Steel Limited (OISL) is
14.696%. The Company has invested Rs. 734.80 Lacs (PY 734.80 lakhs) in
equity shares of the JV Company which includes Rs. 383.35 Lacs (PY Rs.
383.35 lakhs) being proportionate value of shares to be transfered to
OISL after the receipt of approval from the Ministry of Coal, Govt of
India and other Joint Venture Partners.
6. Consequent upon decision of the Hon''ble Supreme Court of India
cancelling the allocation of Coal block, vide Order dated 24th
September, 2014, the Company is in the process of assessing the
recoverabilty of the amounts invested of Rs. 351.45 Lakhs in the Joint
Venture Company ''''Radhikapur (West) Coal Mining Private Ltd.''''. As a
matter of prudence, a provision for similar amount has been made in the
accounts during the current year.
7. Bank balances includes Rs. 0.45 Lakhs (PY Rs. 0.45 Lakhs-)lying in
a current account with a nationalised bank, to be operated jointly by
the authorised signatories of the Company and OISL in respect of Coal
Block Operations as mentioned in note 29.7 above
8. Related Party Disclosures (AS-18)
a) Related parties and their relationship :
1) Key management personnel:
Shri M H Dalmia, Shri R H Dalmia,Shri.Gaurav Dalmia(Managing Director),
Shri D.D.Atal (Wholetime Director)
Relatives:
Shri.A.H.Dalmia, Shri.V.H.Dalmia, Shri YH Dalmia, Smt. Abha Dalmia, Smt
Padma Dalmia, Smt. Shripriya Dalmia Thirani, Smt. Anuradha Jatia, Smt.
Kanupriya Somany, Smt.Sharmila, Dalmia, Shri.Puneet Yadu Dalmia, Smt.
Kiran Atal
2) Ultimate Holding Company:
Dalmia Bharat Limited (w.e.f 25.02.2015) (Formly Dalmia Bharat
Entrprises Ltd)
3) Holding Company: Dalmia Cement (Bharat) Limited (w.e.f 25.02.2015)
4) Subsidiary : OCL Global Limited, Odisha Cement Limited
5) Step down Subsidiary: OCL China Limited
6) Enterprises over which key management personnel are able to exercise
significant influence : Hari Machines Limited, Dalmia Bharat OCL Trust,
Dalmia Institute of Scientific & Research (DISIR), Dalton International
Ltd, Landmark Property Development Co.Ltd, Shree Natraj Ceramic &
Chemical Industries Ltd, Landmark Landholdings Pvt.Ltd, Dalmia Bharat
Sugar & Industries Ltd, Calcom Cement India Ltd, Debikay Systems
Limited, Kiran Resources (P)Ltd, Dalmia Magnesite Corporation, Dalmia
Cement East Limited, Dalmia Refrac- tories Limited
9. Employee Benefits - AS 15 (Revised)
a) The Company has determined the liability for Employee benefits as at
March 31,2015 in accordance with revised Accounting Standard 15
notified by Govt. of India - Employee defined benefits.
b) The major category of plan assets as a percentage of total plan
Gratuity : 80% (PY80%) invested with Central Govt/State govt/State
Govt. Securities/Public sector bonds Fixed Deposit with PSU Banks
Leave Encashment : Unfunded
c) Gratuity is administered by an approved gratuity fund trust
10. Balance confirmation letters were sent in respect of accounts
showing debit or credit balances. Balance Confirmations have not been
received in few cases. In the opinion of the Management, adjustments,
if any, required on confirmation and reconciliation is not expected to
be material.
11. As per section 135 the Companies Act, 2013, the Company is
required to spend two percent of the average net profits of the Company
made during the last three immediately preceding financial years on
Corporate Social Responsibility. Ac- cordingly the Company has complied
with the said section and spent amounts aggregative to Rs. 279.45 lakhs
(in excess of the said percentage) which includes: Contribution to
Prime Minister relief fund Rs. 12.10 Lakhs, and to other institutions
Rs. 45.01 lakhs both approved under section 80G of the Income tax 1961,
contribution to institutions approved under sec- tion 35(1)(ii) of the
Income Tax Act, 1961 Rs. 100 lakhs, to institutions approved under
section 35 AC of the Income Tax Act, 1961 of Rs. 30 Lakhs and
expedniture on rural infrastructure development, healthcare, skill
development, livelihood, promo- tion of education etc. aggregating to
Rs.92.34 Lakhs.
12. Previous year figures have been regrouped/rearranged/
reclassified where necessary to correspond with current year figures
Mar 31, 2014
2013-14 2012-13
1 OTHER NOTES FORMING PART OF THE
FINANCIAL STATEMENTS
1.1 Contingent liabilties not provided
for in espect of:
(i) Claims against the Company not acknowledged
as debts
a) Disputed lability relating to ESI Contribution
on over time wages and other allowances 57.95 55.95
b) Disputed liabily relating to PF Contribution on
certain alowances 71.22 71.22
c) Disputed abiy elating to payment of premum on
orest land used or Mning purpose 154.13 154.13
For Pollution Control Bod, Ossa 8.86 8.86
d) Disputed claim for supply of Refractories 156.30 156.30
e) Disputed liabilities relating to Railway for
enhanced Godown ent and over loading penal charges 197.49 175.91
g) Disputed Sale Tax demand(including interest &
penalty)-matter under appeal 665.57 629.00
h) Disputed Entr Tax demand-matter under appeal 293.28 149.66
i) Disputed Excis matteRs 3,756.38 4,265.49
j) Disputed iabilties relating to purchse of
Electricity 302.16 358.92
k) Disputed abilties for Lanjiberna Mnes for payment
of Stamp Duty 8,349.76 -
l) OtheRs 222.15 363.04
14,235.26 6,388.48
ii) other monies or wch the Company is contingenty
lable :
Disputed iabily relating to labour matteRs-pending
in Courts 4.57 4.57
Disputed abily relating to Land matteRspending in
Courts 39.51 39.51
c) Others 78.50 78.50
Total 122.58 122.58
iii) Diputed liabity in espect of Income Tax demands 213.03 302.88
in respect of items above, future cash outflows in
respect of contingent liabiities are determinable only
on receipt of judgements / decisions pending at various
forums / authorities
iv) a) Security provided to bank in respect of loan 498.21 689.13
granted upto USD 3.50 mn. (USD8.39 Lakhs)
(PY USD12.56 Lakhs) to OCL Global Limited, a
Subsidiary, (w.e.f 01.01.2013)
- fiRst pari passu charge on current assets of the
company and further secured by
second pari passu charge on fixed assets, of cement
division of the company loan
outstanding amount as on the balance sheet date
b) Guarantee given to Banks on behalf of OCL China 1,749.75 649.84
USD 29.48 Lakhs) (PY USD 11.84 Lakhs) (a step down
subsidiary w.e.f 01.01.2013)
c) Guarantee given to Banks on behalf of Radhikapur
(West) Coal Mining Private Limited 636.00 1,076.00
against which counter guarantee of Rs332.00 Lakhs
(PY 561 Lakhsjhas been received from OCL
Iron & Steel Ltd
2.1 mount of contracts remaining to be executed on
capital account (net of 5,865.96 15,644.97
3. OTHER NOTES FORMNG PART OF THE FINANCIAL STATEMENTS (CONT...)
3.1 In the opinion of the Board and to the best of their knowledge and
belief, the valuation on realisation of current assets, loans and
advances in the ordinary couRse of business would not be less than the
amount at which they are stated in the Balance Sheet
3.2 The Supreme Court of India in April, 1996, upheld the validity of
Jute Packing Materials (Compulsory use in Packing Commodities) Act,
1987. The Company has been legally advised that the Act is applicable
to it only with effect from October, 1996. Under the Act, Cement
ManufactureRs are required to use Jute Packaging Material for supply or
distribution upto 50% of their total production. The Calcutta High
Court has granted stay against show cause notice received by the
Company from the Jute Commissioner.The Transfer Petition filed by the
Union of India before the Hon''ble Supreme Court was dismissed by the
Hon''ble court due to default and as a result of which the pending writ
of the Company will be heard by the Hon''ble Kolkata High Court on
merits. The amount that may become payable, is presently not
ascertainable. However, the Government has not notified the compulsory
packing of Cement in jute packing materials for the period effective
from 1st July 1997.
3.3 Durng the year an amount of 7115.00 lakhs (PY 25.00 lakhs) has
been donated to "Rashtriya Ahinsa Manch" a registered Political party
under section 29A of Representation of the People Act, 1951 having its
registered office at 132/1, Mahatma Gandhi Road, Kolkata-700007.
3.4 In respect of licence granted for captive mining Block at
Radhikapur mines, a Joint Venture company Radhikapur (West) Coal Mining
Private Limited has been incorporated on 29th March 2010 in which the
Company''s interest jointly with OCL Iron & Steel Limited (OISL) s
14.696%. The Company has invested 7734.80 Lacs (PY 734.80 lakhs) in
equity shares of the JV Company which includes 7383.35 Lacs (PY 7383.35
lakhs) being proportionate value of shares to be transfered to OISL
after the receipt of approval from the Ministry of Coal, Govt of India
and other Joint Venture Partnes
The details of the Company''s interest in J.V are as under
This is pre-operating period of the Joint Venture company. All the
expenditure incurred till commencement of commercial production s
classified as ''Mines Development & Pre-Operative Expenses'' pending
capitalization under pre-operative expenses
3.5 The Ministry of Coal, Government of India vide its letter
dt.14.2.2014 cancelled the allocation of coal blocks to the joint
venture company alleging delay in undertaking production. The joint
venture company and the Company filed a writ petition before the
Hon''ble Delhi High Court, which has directed the Ministry to maintain
status quo till the next date of hearing and not to take any further
steps to reallocate the coal blocks or for creating any third party
rights therein, till their further ordeRs. The Court has also given
berty to the Company to approach it, if there is any action for
encashment of bank guarantee. The Company has taken the stand that he
delay has occurred, mainly on account of the State and Central
Government and consequently de-allocation is not warranted. n the
circumstances, the company is of the view that the situation does not
affect the carrying cost of the investments and it is not equired to
recognise decline (if any) of its investments as on as on the Balance
sheet date.
3.6 Bank balances includes Rs45,494/- (PY Rs45,794/-) lying in a
current account with a nationalised bank, to be operated jointy by the
authorised signatories of the Company and OISL in respect of Coal Block
Operations as mentioned in note 28.7 above.
Note:
a) As per practice consstenty olowed, inter segment tanseRs for capital
jobs ecognised at cost and or other jobs at estimated realisable value.
b) Business segment is consdered as prmary segment and there is only
one geographical segment
3.7 Related Party Disclosures (AS-18)
a) Related parties and their relationship :
1) Key management peRsonnel: Shri M H Dalma, Shr R H Dalma, Shr.Gaurav
Dalma(Managing Diector Shr D.D.Atal (Wholetime Director)
Relatives: Shri.A.H.Dalma, Shri.V.H.Dalmia, Shri Y.H Dalmia, Smt. Abha
Dalmia, Smt. Padma Dalmia, Smt. Shrpriya Dalma Thirani, Smt. Anuradha
Jatia, Smt. Kanupriya Somany, SmtSharmila Dalmia, ShriPuneet Yadu
Dalmia, SmtKiran Atal
2) Subsidiary: OCL Global Limited, Odisha Cement Limed (w.e.f
12.07.2013)
3) Step down Subsidiary: OCL China Limited
4) Enterprises over which key management peRsonnel are able to exercise
significant influence : Hari Machines Limited, Dalmia Bharat Seva
Trust, Dalmia Institute of Scientific & Research (DISIR), Dalton
International Ltd, Dalmia Cement (Bharat) Ltd., Landmark Property
Development Co.Ltd, Shree Natraj Ceramic & Chemical Industries Ltd,
Astir Properties Pvt. Ltd, Landmark Landholdings Pvt.Ltd, Dalmia Bharat
Sugar & Industries Ltd, Dalmia Bharat Ltd (Formaly Dalmia Bharat
Entrprises Ltd), Calcom Cement India Ltd, Debikay Systems Limited,
Kiran Resources (P)Ltd, Dalmia Refractories(Prop : Dalmia Bharat
Enterprises Ltd.), Dalmia Magnesite Corporation(Prop : Dalmia Bharat
Sugar & Industries Ltd.
3.8 The Company has not paid dividends in foreign currency during the
year in respect of shares held by non-residents Te amount payable to
non-resident shareholdeRs has been paid to their mandatee banks The
amount of dividend so paid to non esdent shareholdeRs during the year
is as follows
3.9 Employee Benefits - AS 15 (Revised)
a) The Company has determined the liability for Employee benefits as at
March 31,2014 in accordance wih revised Accounting Standard 15 issued
by ICAI - Employee defined benefits.
b) Following information are based on report of Actuar Defined benefit
plans as at March 31, 2014
The major category of plan assets as a percentage of total plan
Gratuity 80%(PY76%)investedwithCentralGovt/Stategovt/StateGovt.
Securties/Public sector bonds Fixed Depost with PSU Banks Leave
Encashment Unfunded
3.10 Research & Development Expenses
a) The Company has in-house R&D Centre, approved by the Department of
Scientific and ndustral Research (DISIR), Ministry of Scientific &
Technology Govt of India. The details of revenue/capital expenditure
incurred by the said R&D Centre during the year is as under:-
4.1 The Ministry of Corporate AffaiRs, Government of India, vide
General Circular No. 2 and 3 dated 8th February 2011 and 21st February
2011 respectively has granted a general exemption from compliance with
section 212 of the Companies Act, 1956, subject to fulfillment of
conditions stipulated in the circular. The Company has satisfied the
conditions stipulated in the circular and hence is entited to the
exemption. Necessary information relating to the subsidiaries has been
included in the Consoldated Financial Statements
4.2 Balance confirmation etteRs were sent in respect of accounts
showing debit or credit balances. Balance Confirmations have not been
received in few cases In the opinion of the Management adjustments, if
any required on confirmation and reconciliation is not expected to be
material.
4.3 Previous year figures have been regrouped where necessary to
corespond wih curent year figures.
Mar 31, 2013
1.1 In the opinion of the Board and to the best of their knowledge and
belief, the valuation on realisation of current assets, loans and
advances in the ordinary course of business would not be less than the
amount at which they are stated in the Balance Sheet.
1.2 The Supreme Court of India in April, 1996, upheld the validity of
Jute Packing Materials (Compulsory use in Packing Commodities) Act,
1987. The Company has been legally advised that the Act is applicable
to it only with effect from October, 1996. Under the Act, Cement
Manufacturers are required to use Jute Packaging Material for supply or
distribution upto 50% of their total production. The Calcutta High
Court has granted stay against show cause notice received by the
Company from the Jute Commissioner.The Transfer Petition filed by the
Union of India before the Hon''ble Supreme Court was dismissed by the
Hon''ble court due to default and as a result of which the pending writ
of the Company will be heard by the Hon''ble Kolkata High Court on
merits. The amount that may become payable, is presently not
ascertainable. However, the Government has not notified the compulsory
packing of Cement in jute packing materials for the period effective
from 1st July, 1997.
1.3 During the year an amount of Rs.25.00 lakhs (PY 10.00 lakhs) has
been donated to "Rashtriya Ahinsa Manch" a registered Political party
under section 29A of Representation of the People Act, 1951 having its
registered office at 132/1, Mahatma Gandhi Road, Kolkata-700007.
1.4 In respect of licence granted for captive mining Block at
Radhikapur mines, a Joint Venture company Radhikapur (West) Coal Mining
Private Limited has been incorporated on 29th March 2010 in which the
Company''s interest jointly with OCL Iron & Steel Limited (OISL) is
14.696%. The Company has invested Rs.734.80 Lacs (PY Rs.293.92 lakhs)
in equity shares of the JV Company which includes Rs.383.35 Lacs (PY
Rs.153.34 lakhs) being proportionate value of shares to be transfered
to OISL after the receipt of approval from the Ministry of Coal, Govt
of India and other Joint Venture
1.5 Bank balances includes Rs.45,794/- (PY Rs.45,944/-)lying in a
current account with a nationalised bank, to be operated jointly by the
authorised signatories of the Company and OISL in respect of Coal Block
Operations as mentioned in note 28.7 above.
1.6 Related Party Disclosures (AS-18)
a) Related parties and their relationship :
i) Key management personnel :Shri M H Dalmia, Shri R H Dalmia,
Shri.Gaurav Dalmia(Managing Director), Shri D.D.Atal (Wholetime
Director)
Relatives : Shri.A.H.Dalmia, Shri.V.H.Dalmia, Shri Y.H Dalmia, Smt.
Abha Dalmia, Smt. Padma Dalmia, Smt. Shripriya Dalmia Thirani, Smt.
Anuradha Jatia, Smt. Kanupriya Somany, Smt.Sharmila Dalmia, Shri.Puneet
Yadu Dalmia, Smt.Kiran Atal
ii) Subsidiary: OCL Global Limited (w.e.f 01.01.2013)
iii) Step down Subsidiary: OCL China Limited (w.e.f 01.01.2013)
iv) Enterprises over which key management personnel are able to
exercise significant influence : Hari Machines Limited, Dalmia Bharat
Seva Trust, Dapel Investments Pvt. Ltd, Dalmia Institute of Scientific
& Research (DISIR), Dalton International Ltd, Agrico Ltd., Dalmia
Cement (Bharat) Ltd., Landmark Property Development Co.Ltd, Shree
Natraj Ceramic & Chemical Industries Ltd, Chirawa Navyuvak Trust, Astir
PropertiesPvt. Ltd., Dalmia Shiksha Pratishthan, Landmark Landholdings
Pvt.Ltd, Dalmia Bharat Sugar & Industries Ltd, Dalmia Bharat Limited
(Formaly Dalmia Bharat Enterprise Limited), DCB Power Ventures Ltd,
Calcom Cement India Ltd, Debikay Systems Limited, Kiran Resources Pvt.
Ltd
1.7 Employee Benefits - AS 15 (Revised)
a) The Company has determined the liability for Employee benefits as at
March 31, 2013 in accordance with revised Accounting Standard 15 issued
by ICAI - Employee defined benefits.
b) Following information are based on report of Actuary. Defined
benefit plans as at March 31, 2013
1.8 The Ministry of Corporate Affairs, Government of India, vide
General Circular No. 2 and 3 dated 8th February 2011 and 21st February
2011 respectively has granted a general exemption from compliance with
section 212 of the Companies Act, 1956, subject to fulfillment of
conditions stipulated in the circular. The Company has satisfied the
conditions stipulated in the circular and hence is entitled to the
exemption. Necessary information relating to the subsidiaries has been
included in the Consolidated Financial Statements
1.9 Previous year figures have been regrouped where necessary to
correspond with current year figures.
Mar 31, 2012
A) Terms/ rights attached to ordinary shares
The Company has issued only one class of ordinary shares having a par
value of Rs. 2/- per share. Each holder of ordinary 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 31 st March 2012, the amount of dividend per
share recognised for distribution to ordinary shareholders is Rs. 2/-
(Previous year: Rs. 4/- per share).
In event of liquidation of the company, the holders of ordinary 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 ordinary shares
held by the shareholders.
d) Aggregate number of bonus shares issued and shares bought back
during the period of five years immediately preceding the reporting
date: Nil.
In respect of shares issued for consideration other than cash,
1,23,52,500/- ordinary shares of Rs. 2/- each fully paid up where
alloted during the year 2007-08 to the shareholders of erstwhile Dalmia
Cement (Meghalaya) Limited pursuant to a scheme of arrangement for
merger.
# Secured by First pari passu charge by way of mortgage and
hypothecation over all immovable properties and moveable fixed assets
of Cement Division, (both present and future) and further secured by
second pari pasu charge on all current assets of the Company.
$ Secured by First charge on fixed assets of the Cement Division of
Company , both present and future to be shared pari passu with the
providers of the other debt and existing lenders, further secured byway
of second pari pasu charge on current assets of cement division.
@ Secured by First ranking mortgage on all immovable & movable, present
& future assets related to the Cement Division (excluding Current
Assets) to be shared pari passu with other lenders in respect of other
debts and existing secured lenders to the Cement Division in respect of
the existing debt.
Working capital facilities (fund based & non fund based limits) are
secured by first pari passu charge over stocks, stores, raw materials,
inventories, work in progress, finished goods and also book debts,
bills and moneys receivable of the Company by way of hypothecation.
These facilities are further secured by second charge over the fixed
assets of the Cement Division of the Company.
2011-12 2010-11
Rs.Lakhs Rs.Lakhs
1. OTHER NOTES FORMING PART OF THE FINANCIAL
STATEMENTS
1.1 Contingent liabilities not provided
for in respect of :
(i) Claims against the Company not
acknowledged as debts
(a) Disputed liability relating to ESI
Contribution on over time wages and
other allowances 72.59 70.58
(b) Disputed liability relating to PF
Contribution on certain allowances 94.97 94.97
(c) Disputed liability relating to payment
of premium on forest land used for
Mining purpose 154.13 154.13
(d) For Pollution Control Board, Orissa 11.82 11.82
(e) Disputed claim for supply of Refractories 156.30 156.30
(f) Disputed liabilities relating to Railway
for enhanced Godown rent and over loading
penal charges 123.19 115.51
(g) Disputed Sales Tax demand(including
interest & penalty)-matter under appeal 707.07 636.48
(h) Disputed Entry Tax demand-matter under appeal 122.73 12.76
(i) Disputed Excise matters 3,980.67 56.72
(j) Disputed counterclaim in Arbitration
Proceeding arising out of claim of - -
Rs. 214.19 Lakhs by the company 468.26 468.26
(k) Others 221.18 102.98
6,112.91 1,880.51
(ii) Other monies for which the Company
is contingently liable :
(a) Disputed liability relating to
labour matters-pending in Courts 4.57 6.17
(b) Disputed liability relating to Land
matters-pending in Courts 62.01 39.51
(c) Others 78.50 78.50
Total 145.08 124.18
(iii) Disputed liability in respect of
Income Tax demands 855.46 654.47
In respect of items above, future cash
outflows in respect of contingent
liabilities are determinable only on
receipt of judgements / decisions
pending at various forums / authorities.
(iv) (a) Guarantee given to Banks for
loan facilities on behalf of
OCL Global Ltd (USD 15.88 Lakhs) an
associate concern.
(Previous Year USD 20.74 Lakhs) 818.30 936.20
(b) Guarantee given to Banks on behalf
of OCL China Ltd (USD 15.00 Lakhs) 772.95 677.10
(c) Guarantee given to Banks on behalf
of Radhikapur (West) Coal Mining Private
Limited against which counter gurantee of
Rs.561.00 Lakhs has been received from OISL 1,076.00 1,076.00
1.2 In the opinion of the Board and to the best of their knowledge and
belief, the valuation on realisation of current assets, loans and
advances in the ordinary course of business would not be less than the
amount at which they are stated in the Balance Sheet.
1.3 The Supreme Court of India in April, 1996, upheld the validity of
Jute Packing Materials (Compulsory use in Packing Commodities) Act,
1987. The Company has been legally advised that the Act is applicable
to it only with effect from October, 1996. Under the Act, Cement
Manufacturers are required to use Jute Packaging Material for supply or
distribution upto 50% of their total production. The Calcutta High
Court has granted stay against show cause notice received by the
Company from the Jute Commissioner.The Transfer Petition filed by the
Union of India before the Hon'ble Supreme Court was dismissed by the
Hon'ble court due to default and as a result of which the pending
writ of the Company will be heard by the Hon'ble Kolkata High Court
on merits. The amount that may become payable, is presently not
ascertainable. However, the Government has not notified the compulsory
packing of Cement in jute packing materials for the period effective
from 1st July, 1997.
1.4 During the year an amount of Rs. 10.00 Lakhs has been donated to
"Rashtriya Ahinsa Manch" a registered Political party under section
29A of the Representation of the People Act, 1951 having its registered
office at 132/1, Mahatma Gandhi Road, Kolkata-700007.
1.5 In respect of licence granted for captive mining Block at
Radhikapur mines, a Joint Venture company Radhikapur (West) Coal Mining
Private Limited has been incorporated on 29th March 2010 in which the
Company's interest jointly with OCL Iron & Steel Limited is 14.696%.
The Company has invested Rs. 293.92 Lakhs (Rs. 146.96 Lakhs) in equity
shares of the JV Company & paid Rs. 440.88 Lakhs as application money
pending allotment which includes Rs. 383.35 Lakhs (Rs. 76.67 lakhs)
being proportionate value of shares to be transferred to OISL after the
receipt of approval from the Ministry of Coal, Govt of India and other
Joint Venture Partners.
1.6 Bank balances includes Rs. 0.49 (PY Rs. 60.10 Lakhs) Lakhs lying
in a current account with a nationalised bank, to be operated jointly
by the authorised signatories of the Company and OISL in respect of
Coal Block Operations as mentioned in note 28.7 above.
1.7 Pursuant to letter dated December 27, 2011 from the Office of the
Deputy Director of Mines, Rourkela, the mining of limestone at
Lanjiberna Limestone and Dolomite Mines of the Company were suspended
from January 07, 2012 till March 31, 2012.
1.8 I Related Party Disclosures (AS-18)
a) Related parties and their relationship :
1) Key management personnel : Shri M H Dalmia, Shri R H Dalmia, Shri.
Gaurav Dalmia (Managing Director), Shri D.D. Atal (Wholetime Director)
Relatives : Shri. A.H. Dalmia, Shri. V.H. Dalmia, Shri Y.H Dalmia, Smt.
Abha Dalmia, Smt. Padma Dalmia, Smt. Shripriya Dalmia Thirani, Smt.
Anuradha Jatia, Smt. Kanupriya Somany, Smt. Sharmila Dalmia, Shri.
Puneet Yadu Dalmia, Smt. Kiran Atal.
2) Associate concern (Joint Venture) : OCL Global Limited
3) Enterprises over which key management personnel are able to exercise
significant influence : Hari Machines Limited, Dalmia Bharat Seva
Trust, Dapel Investments Pvt. Ltd, Dalmia Institute of Scientific &
Industrial Research (DISIR), Dalton International Ltd, Agrico Ltd.,
Dalmia Cement (Bharat) Ltd., Landmark Property Development Co. Ltd,
Shree Natraj Ceramic & Chemical Industries Ltd, Chirawa Navyuvak Trust,
Astir Properties Pvt. Ltd, Dalmia Shiksha Pratishthan, Landmark
Landholdings Pvt. Ltd, Dalmia Bharat Sugar & Industries Ltd, Dalmia
Bharat Entrprises Ltd, DCB Power Ventures Ltd, Calcom Cement India Ltd,
Debikay Systems Limited
1.9 Employee Benefits - AS 15 (Revised)
a) The Company has determined the liability for Employee benefits as at
March 31, 2012 in accordance with revised Accounting Standard 15 issued
by ICAI - Employee defined benefits.
1.10 Previous year figures have been regrouped where necessary to
correspond with current year figures including those on account of
adoption of revised schedule VI of the Companies Act, 1956 effective
from 01.04.2011.
Mar 31, 2011
1. In the opinion of the Board and to the best of their knowledge and
belief, the valuation on realisation of current assets, loans and
advances in the ordinary course of business would not be less than the
amount at which they are stated in the Balance Sheet.
2. The Supreme Court of India in April, 1996, upheld the validity of
Jute Packing Materials (Compulsory use in Packing Commodities) Act,
1987. The Company has been legally advised that the Act is applicable
to it only with effect from October, 1996. Under the Act, Cement
Manufacturers are required to use Jute Packaging Material for supply or
distribution upto 50% of their total production. The Calcutta High
Court has granted stay against show cause notice received by the
Company from the Jute Commissioner.The Transfer Petition filed by the
Union of India before the Hon'ble Supreme Court was dismissed by the
Hon'ble court due to default and as a result of which the pending writ
of the Company will be heard by the Hon'ble Kolkata High Court on
merits. The amount that may become payable, is presently not
ascertainable. However, the Government has not notified the compulsory
packing of Cement in jute packing materials for the period effective
from 1st July, 1997.
3. Disclosure of Sundry Creditors under Current Liabilities is based
on the information available with the Company regarding the status of
the suppliers as defined under the "Micro, Small and Medium Enterprises
Development Act, 2006". Amount overdue as at 31 March, 2011, to Micro
and Small Enterprises on account of principal is Rs.0.92 Lakhs &
interest is Rs.0.14 Lakhs (Previous year Rs. Nil on account of
principal and interest of Rs.0.12 Lakhs)
4. The uncashed dividend of Rs. 66.23 lakhs (Previous year Rs.51.92
lakhs) and deposits (including interest) of Rs.16.83 lakhs (Previous
year Rs. 16.51 lakhs), shown under current liabilities do not include
any amount due and outstanding to be credited to the 'Investor
Education and Protection Fund'.
5. In respect of licence granted for captive mining Block at
Radhikapur mines, a Joint Venture Company Radhikapur (West) Coal Mining
Private Limited has been incorporated on 29th March 2010 in which
company's interest jointly with OCL Iron & Steel Limited (OISL) is
14.696%. During the year, the company has invested Rs. 146.96 lakhs in
equity shares of the JV Company which includes Rs. 76.67 Lakhs being
proportionate value of shares to be transfered to OISL after the
receipt of approval from the Ministry of Coal , Govt of India and other
Joint Venture Partners.
6. Bank balances includes Rs. 60.10 lakhs lying in a current account
with nationalised bank, to be operated jointly by the authorised
signatories of the company and OISL in respect of Coal Block Operations
as mentioned in note 11 above.
7. Related Party Disclosures (AS-18)
a) Related parties and their relationship :
1) Key management personnel : Shri M H Dalmia, Shri R H Dalmia,
Shri.Gaurav Dalmia(Managing Director), Shri D.D.Atal (Wholetime
Director)
Relatives : Shri A H Dalmia, Shri.V.H.Dalmia, Shri Y.H.Dalmia, Smt.
Abha Dalmia, Smt. Padma Dalmia, Smt.Shripriya Dalmia Thirani,
Smt.Kanupriya Somany, Smt. Anuradha Jatia, Shri.Puneet Dalmia,
Smt.Sharmila Dalmia, Smt. Kiran Atal.
2) Associate concern : OCL Global Limited
3) Enterprises over which key management personnel are able to exercise
significant influence : Hari Machines Limited, Dalmia Bharat Seva
Trust, Dapel Investments Pvt. Ltd, Dalmia Institute of Scientific &
Industrial Research, Dalton International Ltd, Agrico Ltd., Dalmia
Cement (Bharat) Ltd., Landmark Property Development Co.Ltd, Shree
Natraj Ceramic & Chemical Industries Ltd, Chirawa Navyuvak Trust, Astir
Properties Pvt. Ltd, Dalmia Shiksha Pratishthan, Landmark Landholdings
Pvt.Ltd, Dalmia Bharat Sugar & Industries Ltd, Dalmia Bharat Entrprises
Ltd.
Mar 31, 2010
1 Contingent liabilities not provided for in respect of :
(i) Claims against the Company not acknowledged
as debts
(a) Disputed liability relating to ESI Contribution
on over time wages and other allowances 51.33 48.82
(b) Disputed liability relating to PF Contribution
on certain
allowances 95.14 191.50
(c) Disputed liability relating to payment of
premium on forest land
used for Mining purpose 154.00 154.00
(d) For Pollution Control Board, Orissa 11.82 11.82
(e) Disputed claim for supply of Refractories 156.30 156.30
(f) Disputed liabilities relating to Railway
for enhanced Godown rent
and over loading penal charges 107.83 132.27
g) Disputed Sales Tax demand(including interest
& penalty)- matter under appeal 606.94 626.08
(h) Disputed Entry Tax demand-matter under appeal 7.37 5.08
(i) Disputed Excise matters 56.72 56.72
(j) Others 102.98 22.21
1,350.43 1,404.80
(ii) Other monies for which the Company is
contingently liable:
(a) Disputed liability relating to labour
matters-pending in Courts 4.57 6.70
(b) Disputed liability relating to Land
matters-pending in Courts 39.51 -
(b) Others 78.50 41.24
Total 122.58 47.94
In respect of items above, future cash outflows
are determinable only on receipt of judgements /
decisions pending at various forums /
authorities.
(iii) Disputed liability in respect of Income
Tax demands - 0.03
(iv) a) Guarantee given to Banks for loan/guarantee
facilities on
behalf of OCL Global Ltd (USD 32.28 lakhs) an 1,471.10 1,018.71
associate concern. (Previous Year USD 19.80 lakhs)
b) Guarantee given to Life Insurance Corporation for
loan - 3,500.00
facilities on behalf of OCL Iron & Steel Ltd
2. Conveyance deed in respect of immovable properties costing
Rs.184.61 lakhs is pending execution in favour of the Company. The
estimated expenses amounting to Rs.12.03 Lakhs on account of execution
of conveyance deed has been provided in the books.
3. In the opinion of the Board and to the best of their knowledge and
belief, the valuation on realisation of current assets, loans and
advances in the ordinary course of business would not be less than the
amount at which they are stated in the Balance Sheet.
4. The Supreme Court of India in April, 1996, upheld the validity of
Jute Packing Materials (Compulsory use in Packing Commodities) Act,
1987. The Company has been legally advised that the Act is applicable
to it only with effect from October, 1996. Under the Act, Cement
Manufacturers are required to use Jute Packaging Material for supply or
distribution upto 50% of their total production. The Calcutta High
Court has granted stay against show cause notice received by the
Company from the Jute Commissioner. The Union of India, through the
Jute Commissioner have fled petition for transfer of all writ petitions
along with other proceedings pending before various High Courts for
hearing and disposal on merit by Supreme Court. The amount that may
become payable, in case it is ultimately held that penalty is payable
for non compliance of Act during the intervening period is presently
not ascertainable. However, the Government has not notified the
compulsory packing of Cement in jute packing materials for the period
effective from 1st July, 1997.
5. Disclosure of Sundry Creditors under Current Liabilities is based
on the information available with the Company regarding the status of
the suppliers as defined under the ÃMicro, Small and Medium Enterprises
Development Act, 2006. Amount overdue as at 31 March, 2010, to Micro
and Small Enterprises on account of interest is Rs 0.13 Lakhs (Previous
year Rs. 34.40 Lakhs on account of principal and interest of Rs. 0.13
Lakhs).
6. The uncashed dividend of Rs.51.92 lakhs (Previous year Rs.41.55
lakhs) and deposits (including interest) of Rs.16.51 lakhs (Previous
year Rs.7.00 lakhs), shown under current liabilities do not include any
amount due and outstanding to be credited to the ÃInvestor Education
and Protection FundÃ.
7. Rebates, Discounts and Allowances includes Rs. 130.97 Lakhs
related to previous year.
8. In respect of Licence granted for captive mining Block at
Radhikapur mines, a Joint Venture company Radhikapur (West) Coal Mining
Private Limited has been incorporated on 29th March 2010 in which
CompanyÃs interest jointly with OCL Iron & Steel Limited will be
14.696%. The Company has undertaken to subscribe for shares of the
value of Rs. 0.15 Lakhs as a subscriber to the Memorandum.
9. Related Party Disclosures (AS-18)
a) Related parties and their relationship :
1) Key management personnel : Shri M H Dalmia, Shri R H Dalmia, Shri Y
H Dalmia (upto 28.01.2010 ), Shri V P Sood (whole time director)
Relatives : Shri A H Dalmia, Shri V H Dalmia, Shri Gaurav Dalmia, Smt
Abha Dalmia, Smt. Padma Dalmia, Smt. Shripriya Dalmia Thirani, Smt.
Kanupriya Somany, Smt. Anuradha Jatia, Shri Puneet Dalmia, Shri Vikas
Sood.
2) Associate concern : OCL Global Limited
3) Enterprises over which key management personnel are able to exercise
significant influence : Hari Machines Limited, Dalmia Bharat Seva
Trust, Satya Miners And Transporters Limited, Swank Services Pvt. Ltd.,
Konark Investments Limited, Marathwada Refractories Limited, Dapel
Investments Pvt. Ltd, Dalmia Institute of Scientific & Industrial
Research, Dalton International Ltd, Agrico Ltd., Dalmia Cement (Bharat)
Ltd., Landmark Property Development Co.Ltd., OCL Iron & Steel Ltd. (up
to 16.02.2010), Shree Natraj Ceramic & Chemical Industries Ltd.,
Chirawa Navyuvak Trust.
10. Previous year figures have been regrouped where necessary to c
orrespond with current year figures.