Mar 31, 2015
1. Rights, Preferences and Restrictions attached to Shares:
a) Equity shares
The Company has issued Equity Shares having a par value of Rs, 10. Each
holder of equity shares is entitled to one vote per share. The
dividend proposed by the Board of Directors, if any, is subject to the
approval of shareholders in Annual General Meeting. In the event of
liquidation of the Company the holder of the equity shares will be
entitled to receive remaining assets of the Company offer settlement of
all preferential amounts, The distribution will be in proportion to the
number of equity shares held by the equity shareholders.
The rights attached to 30 lakh equity shares out of warrant conversion
has been restrained by the Delhi High Court till disposal of the
matter,
b) Preference Shares
The Company has issued 2 crores 10 % Cumulative Non (avertable
Redeemable Preference Shores of Rs,10 each at par amounting to Rs,2Q
crores or by private placement redeemable on the expiry of 12 years
from the date of Issue. The shares were allotted to Manet Ispat &
Energy Limited amounting 19,51 crores and Torsteel Services Private
Limited (a relative party) amounting to Rs,49 lakhs. These shares are
not listed,
2. a) Money received against Share Warrants
Equity shore warrants amounting to f 601.50 lacs represent 10 %
consideration received from a party against share warrants issued an
preferential basis during the year 2007-08. The issue relating to
conversion of share warrants to equity has been referred to Securities
Appellate Tribunal (SAT) and the decision is awaited.
3. Purim the year State Bank of Bikoner and Jaipur (SBB)) have
assigned the financial exposure taken in the Company by transfer of
debts, rights and obligations to Edelweiss Asset Reconstruction Company
Limited (EARQ vide their letter dated 24.07.2014
4. All the lenders of Term Loan except IREDA viz, SBI, BQI. PNB & EARC
hove issued loan recall notice to the company under Section 13(2) of
the Securitization and Reconstruction of Financial Assets and
Enforcement of Security Interest Act 2002 during the year. Consequently
term loan repayments due and payable to SBF, BOI & PNB have been shown
undercurrent maturity.
5. Term loans from banks and other parties are secured / to be secured
by joint equitable mortgage by deposit of title deed of immovable
properties and hypothecation of all moveable assets of the Company both
present and future (save and except book debts) ranking pan-passu
subject to prior charge created in favor of the Company's bankers far
securing working capital finance on stock of raw material, finished
goods etc. and also by second charge on current assets. Further, the
above term loans have been guaranteed by the personal guarantee of the
Vice Chairman & Managing Director if the Company.
6. interest and maturity profile on Term Loans are set out below:
Interest an term loan from banks and other parties carry interest @ 1
5.75% to 16.75 % and 10% to 12.89 % respectively.
7. Disclosure as reburied under AS 29
Provision for Entry Tax, Sales To* and Interest on Bonk Borrowings have
been recognized In the financial statements considering the following:
i) The Company has a present obligation as a result of past event
ii) It is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation: and
iii) Are liableness tamale can be made of the amount of the obligation.
8. During the year State Bank of Bikaner and Japura (SBBJ) have
assigned the financial exposure taken in the Company by transfer of
debts, rights and obligations to Edelweiss Asset Reconstruction Company
Limited (EARQ vide their letter dated 20.07.2014.
9. All the lenders of working capital to the Company viz. SBI, BOI. &
EARC have issued loan recall notice to the Company under Section
10.(2) of the Securitization and Reconstruction of Financial Assets and
Enforcement of Security Interest Act, 2002 during the year.
11. Gash Credit from banks are sanctioned on a consortium basis by
hypothecation of raw materials, finished goods, stores and spares, hook
debts etc, pari-passu secured charge on immovable properties and other
fixed assets and also guaranteed by personal guarantee of vice-
chairman of the Company (Dr. P. K. Mohanty). The above cash credit is
repayable on demand and carries interest @15.75 % to 17.15 %.
* Based on and to the extent of information obtained from suppliers
regarding their status as Micro, Small or Medium enterprises under the
Micro, Small and Medium Enterprises Development Act, 2006, there are no
amounts due to them as at the end of the year.
12. Loons and advances to related parties includes:
Advances to Bilati (Orissa) Ltd (BOL) - doubtful Rs, 1,927.51 Iocs (Rs,
1,927.51 lacs)
As the prospect of reviving of Bilati (Orissa) Ltd. (which is under
BIFR). appears to be uncertain, provision has been made for advances
due from Bilati (Orissa) Ltd.
13. Lang Term Advances under doubtful Includes claim receivable
amounting to of 119.QC lacs from Mahanadl Coalfield Ltd. Mahanadl
Coalfield Ltd. encased the bonk guarantee given to them for purchasing
of coal under the jells supply agreement The Company has contested such
encashment of bank guarantee and the matter is subjudice.
14. Advqnce to Bamra Iron & Steel Company (India) Limited amounting to
Rs, 8,525.770 has been written off as the name of the said company has
been struck off from the Register of Companies as per Order of the
Registrar of Companies, Odisha.
b) Defined Benefit Plans :
i) Compensated Absences: Liability for Compensated Absences is provided
on the basis of valuation, as at the Balance Sheet date, carried out by
an independent actuary. The actuarial valuation method used for
measuring the liability is, the Projected Unit Credit method. Under
this method, the Defined Benefit Obligation is calculated taking into
account pattern of avail meat of leave while in service and qualifying
salary and the date of a ailment of leave. In respect of encashment of
leave, the Defined Benefit obligation is calculated taking into account
in qualifying salary projected up to the assumed date of encashment
15. Subsidiary Company
Bamra Iron h. Steel Company (India) Limited, is a wholly owned
subsidiary has been struck off from the Registrar of Companies to non
Operation by the order of Registrar of Companies Desha. Consequently
the provisions relating to subsidiary Companies are not applicable for
the reporting period.
In computing diluted corning per share equity share warrants (10%
consideration of 35,00,000 equity shares) allotted an preferential
basis has been excluded as the conversion of warrants into equity
shares is under sub-juice. 35, As the Company's business activity
falls within a single primary business segment, viz. "Iron & Steel" the
disclosure requirement of Accounting
Standard 17-Segment reporting are not applicable. 36- Related Party d
Indosuez under Accounting Standard -1B
A. Name of related party and relationship :
I. Subsidiary : Bamra Iron and Steel Company (India) Limited,
II. Associates : Torsteel Research Foundation In India
TRFl Investment Pvt. Ltd.
OSIL-TRFI Community Services
OSIL-TRFI Community Services Trust
Bilati (Orissa) Limited
Torsteel Services Pvt Ltd.
Keonjhar Infrastructure Development Company Limited HI. Key Management
Personnel : Dr. P. K. Mohanty
Mr. Munir Mohanty
16. Exceptional item represent written off advance Rs. 85.26 lacs end
investment Rs. 74.99 lacs in the subsidiary company Bamra Iron fit
Steel Company (India) Limited,
17. All the amounts in Rupees have been rounded off to lacs with
thousands in decimals.
18. Previous year's figures
Previous year figures have been regrouped / reclassified wherever
necessary to correspond with the current year's classification /
disclosure.
Mar 31, 2014
1. Bamra Iron & Steel Company (India) Limited (Bamra)
Bamra Iron & Steel Company (India) Limited, is a wholly owned
subsidiary of the Company. As the Company has not yet started
operations and project is under implementation consolidated financial
statement (AS-21) has not been prepared.
2. Lease
Fixed Assets acquired under Finance Leases:
The Company has acquired vehicles under finance lease. The year wise
break-up of outstanding lease obligations are as under:
2013-14 2012-13
Rs lacs Rs / lacs
3. Contingent Liabilities and Commitments
(A) Contingent liabilities
(a) Claims against the Company not
acknowledge as debts:
i) Disputed Sales Tax (under appeal) 3,313.31 3,313.31
Includes ? 1,369 lacs is for non
submission of declaration forms,
out of which ? 1,357.79 lacs has since
been collected / submitted and Rs 1,962.31 lacs
other disallowance items
ii) Disputed Central Excise and
Service Tax (under appeal) 155.33 155.33
iii) Income Tax Demand (under appeal ) 3.27 3.27
iv) Other Claim not acknowledged as debt 2,090.14 12.45
* (includes case filed by a party claiming
Rs 3,285.24 lacs out of which Rs 1,255.55 lacs
is admitted by the Company. Case is filed before
Orissa High Court. Previous year ? Nil)
(b) Guarantees
i) Letters of Credit and for Counter Guarantees
to the Banks for guarantees given by them 560.30 560.30
ii) Guarantee given to Keonjhar Central
Co-Operative Bank Ltd. for cash
credit facilities obtained
by Bilati (Orissa) Ltd. 126.93 126.93
iii) Joint Undertaking given for "over-run /
shortfall and Guarantee-cum- Undertaking", in
debt servicing in the event of default, in
connection with term loan of ? 58 crores,
granted by State Bank of India to Keonjhar Not Not
Infrastructure Development Company Ltd. (KIDCO) AscertainableAscertainable
(B) Commitments
i) Estimated amount of contracts (Net of
advance 55.16 lacs, previous year
RS 55.16 lacs) remaining to be executed on
Capital Account and not provided for. 229.35 229.35
ii) Other Commitments Nil Nil
4. As the Company''s business activity falls within a single primary
business segment, viz. "Iron & Steel" the disclosure requirement of
Accounting Standard 17-Segment reporting are not applicable.
5. Related Party disclosures under Accounting Standard -18 A. Name
of related party and relationship :
I. Subsidiary : Bamra Iron and Steel Company (India) Ltd.
II. Associates : Torsteel Research Foundation in India
TRFI Investment Pvt. Ltd.
OSIL-TRFI Community Services
OSIL-TRFI Community Services Trust
Bilati (Orissa) Ltd.
Torsteel Services Pvt. Ltd.
Keonjhar Infrastructure Development Company Ltd.
III. Key Management Personnel :
Dr. P. K. Mohanty
Mr. Munir Mohanty
6. All the amounts in Rupees have been rounded off to lacs with
thousands in decimals.
7. Previous years figures
Previous year figures have been regrouped / reclassified wherever
necessary to correspond with the current year''s classification /
disclosure.
1. Name of the Subsidiary : BAMRA IRON & STEEL COMPANY (INDIA) LTD.
2. The Financial Year of the Subsidiary Company ended on : 31st March
201 4
3. a) No. of shares held by Orissa Sponge Iron & Steel Ltd. :
7,49,930 Equity Shares of Rs.10 each b) Extent of holding at the end of
Financial Year of Subsidiary Company : 99.99%
4. The net aggregate amount of the Subsidiary Company profit/(loss) so
far as it concerns the members of the holding Company: :
a) Not dealt with in the holding accounts :
i) For the financial year ended 31st March 2014 : NIL
ii) For the previous financial years
of the Subsidiary Company since
it became the holding Company''s subsidiary : Not Applicable
b) Dealt with in the holding Company''s accounts :
i) For the financial year ended 31st March 2014 : NIL
ii) For the previous financial years
of the Subsidiary Company since
it became the holding Company''s subsidiary : Not Applicable
Mar 31, 2013
1. CORPORATE INFORMATIONS
Orissa Sponge Iron & Steel Limited was incorporated in the year 1979.
The Company established its works at Palaspanga, Dist Keonjhar, Odisha
for manufacturing Sponge Iron by direct reduction method and generation
of power from Waste Heat. The Company has also a manufacturing facility
at Palaspanga for Steel Billet.
The Company''s performance has been adversely impacted due to mismatch
of the raw materials cost and sale price of sponge Iron. The viability
and stability of stand alone sponge iron unit is largely dependent on
availability of raw materials from captive sources. The Company had
applied for allocation of an iron ore mine which was granted by the
State Government with the concurrence of Central Government in the year
2004 in accordance with the prevailing laws. As required the Company
had secured approval of mining plan and other clearance such as
pullution control, environment etc. However the forest clearance from
the Ministry of Environment and Forest which was pending for last 8
years even after the recommendation of the State Government was finally
received on 3rd June 2013. The Company hope to fulfil all terms and
conditions stipulated thereon and commence mining in approximately 18
months. Use of iron ore from own mines will reduce cost by nearly 50 %
and allow the company to vastly improve profitability and recoup all
losses.
2. Bamra Iron & Steel Company (India) Limited (Bamra)
Bamra Iron & Steel Company (India) Ltd. is a wholly owned subsidiary of
the Company. As the Company has not yet started operations and project
is under implementation consolidated financial statement (AS-21) has
not been prepared.
3. As the Company''s business activity falls within a single primary
business segment, viz. "Iron & Steel" the disclosure requirement of
Accounting Standard 17-Segment reporting are not applicable.
4. Related Party disclosures under Accounting Standard -18 A. Name
of related party and relationship :
I. Subsidiary : Bamra Iron and Steel Company (India) Ltd.
II. Associates : Torsteel Research Foundation in India
TRFI Investment Pvt. Ltd. OSIL-TRFI Community Services OSIL-TRFI
Community Services Trust Bilati (Orissa) Ltd. Torsteel Services Pvt.
Ltd.
5. All the amounts in Rupees have been rounded off to lacs with
thousands in decimals.
6. Previous years figures
Previous year figures have been regrouped / reclassified wherever
necessary to correspond with the current year''s classification /
disclosure.
Mar 31, 2012
1.1 Rights, Preferences and Restrictions attached to Shares:
a) Equity shares
The Company has issued Equity Shares having a par value of Rs. 10. Each
holder of equity shares is entitled to one vote per share. The
dividend proposed by the Board of Directors, if any, is subject to the
approval of shareholders in Annual General Meeting. In the event of
liquidation of the Company the holder of the equity shares will be
entitled to receive remaining assets of the Company after settlement of
all preferential amounts. The distribution will be in proportion to the
number of equity shares held by the equity shareholders.
b) Preference Shares
The Company has not issued any Preference Shares. Subject to the
provisions of Section 80 of the Companies Act, 1956 preference shares
can be issued by the Company with the sanction of an ordinary
resolution on the terms that they are, or at the option of the Company
liable to be redeemed in such terms and on such manner as the Company,
before the issue of the shares may, by special resolution, determine.
1.2 Rights attached to 30 lacs equity shares out of warrant conversion
cannot be exercised as the matter is sub-juiced.
2. Money received against Share Warrants
Equity share warrants amounting to Rs. 601.50 lacs represent 10%
consideration received from a party against share warrants issued on
preferential basis during the year 2007-08. The conversion of share
warrants to equity is subjudice.
2.1 Term loans from banks and other parties are secured / to be secured
by joint equitable mortgage by deposit of title deed of immovable
properties and hypothecation of all moveable assets of the company both
present and future (save and except book debts) ranking pari-passu
subject to prior charges created in favour of the company's bankers for
securing working capital finance on stock of raw material, finished
goods etc. and also by second charges on current assets. Further, the
above term loans have been guaranteed by the personal guarantee of the
Vice Chairman & Managing Director of the Company.
2.2 Interest and maturity profile on Term Loans are set out below :
Interest on term loan from banks and other parties carry interest @ 15%
to 16.75 % and 10% to 13.50 % respectively.
Debt re-structuring proposal of the Company for the above is under
consideration of the lenders.
Disclosure as required under AS 29
Provision for Sales Tax and Entry tax have been recognized in the
financial statements considering the following :
i) The company has a present obligation as a result of past event.
ii) It is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation; and
iii) A reliable estimate can be made of the amount of the obligation.
6.1 Cash Credit from banks are secured on a consortium basis by
hypothecation of raw materials, finished goods, stores and spares, book
debts etc. and also by pari-passu second charges on the immovable
properties and also by second charges on fixed assets. The cash credit
is payable on demand and carries interest @ 15.05 % to 17.50 %.
Further, the above Cash Credit from banks have been guaranteed by the
personal guarantee of the Vice Chairman & Managing Director of the
Company.
* Excluding interest not debited by Banks.
* Default in Cash Credit represents outstanding balance in excess of
Drawing Power as on 31.03.2012 confirmed by the banks. The Company has
submitted restructuring proposal to banks, which is under
consideration.
* Based on and to the extent of information obtained from suppliers
regarding their status as Micro, Small or Medium enterprises under the
Micro, Small and Medium Enterprises Development Act, 2006, there are no
amounts due to them as at the end of the year.
Note:
1. Cost at beginning of year includes increase in valuation of Rs.
1,042.01 lacs and Rs.5,091.98 lacs in Buildings and Plant & Machinery
respectively on Revaluation of assets as at 31st March, 1993 due to
revaluation.
2. Depreciation includes of Rs. 719.43 lacs (Rs. 687.41 lacs) and Rs.
5,013.32 lacs (Rs. 4,967.49 lacs) in Building and Plant & Machinery
respectively on increased of value of assets due to revaluation.
3. Fixed Assets include vehicles acquired under finance lease with a
Gross Block of Rs. 36.32 lacs (Rs. 98.83 lacs), Accumulated Depreciation
of Rs. 3.26 lacs (Rs. 27.13 lacs) and Net Block of Rs. 33.06 lacs (Rs.
71.70 lacs)
3.1 ** Investment in equity share of Keonjhar Infrastructure
Development Company Ltd. (KIDCO) amounting to Rs. 0.72 lacs (Rs. 0.72
lacs in 2009-10) has been pledged with State Bank of India (SBI) as
security for loan granted to KIDCO by SBI.
It is expected that the company will be able to earn sufficient profit
in future years to recoup the deferred tax assets on commencement of
mining from the mines allocated to the Company, which is awaiting
approval of appropriate authorities.
4.1 Loans and advances to related parties includes
Advances to Bilati (Orissa) Ltd (BOL) - doubtful Rs. 1,873.83 lacs.
Advance to Bamra Iron & Steel Company (India) Ltd. (Bamra) - Rs. 83.82
lacs.
In spite of best effort, the prospect of reviving BOL, appears to be
uncertain, hence provision has been made.
4.2 Advance recoverable in cash or in kind includes provision for
doubtful advances to Neelachal I spat Nigam Limited (NINL) for Rs. 273.62
lacs. Provision has been made for claims receivable from NINL, though
the management is perusing for recovery.
5. Exceptional items
Exceptional item represents de - recognition of CER credit pending
certification by UNFCCC as per guidelines issued by ICAI. In the
earlier years CER credit was considered on the basis of net realizable
value of estimated accrued CER units.
b) Defined Benefit Plans :
i) Compensated Absences : Liability for Compensated Absences is
provided on the basis of valuation, as at the Balance Sheet date,
carried out by an independent actuary. The actuarial valuation method
used for measuring the liability is the Projected Unit Credit method.
Under this method, the Defined Benefit Obligation is calculated taking
into account pattern of a ailment of leave while in service and
qualifying salary on the date of a ailment of leave. In respect of
encashment of leave, the Defined Benefit obligation is calculated
taking into account in qualifying salary projected up to the assumed
date of encashment.
6. Bamra Iron & Steel Company (India) Limited (Bamra)
Bamra Iron & Steel Company (India) Ltd. is a wholly owned subsidiary of
the Company. As the Company has not started operations and project is
under implementation consolidated financial statement (AS-21) has not
been prepared.
The Company's initiative for expansion and obtaining iron ore mining
lease was based on creating production facilities of one million tonne
of steel production. Bamra Iron & Steel Company (India) Limited was
floated as a wholly owned subsidiary Company for implementing expansion
programme of the Company. The project implementation at present is on
hold as there are delays in obtaining iron ore mining lease due to
certain technical reasons.
Investments in Bamra as on 31 st March 2012 is as follows :
1. Investment in equity share capital :Rs. 75.00 lacs (Rs. 75.00 lacs)
2. Advances :Rs. 83.82 lacs (Rs. 83.56 lacs)
2011-12 2010-11
Rs. / lacs Rs. / lacs
7. Contingent Liabilities
and Commitments
(A) Contingent liabilities
(a) Claims against the company
not acknowledge as debts:
i) Disputed Sales Tax (under appeal) 3,303.41 3,403.36
ii) Disputed Central Excise and
Service Tax (under appeal) 175.67 49.17
iii) Income Tax Demand (under appeal) 3.27 393.49
iv) Claim made by a supplier contested
by the company net of admitted
liability 9.06 -
(b) Guarantees
i) Letters of Credit and for Counter
Guarantees to the Banks
for guarantees given by them. 691.27 811.28
ii) Guarantee given to Keonjhar Central
Co-Operative Bank Ltd. for cash
credit facilities obtained by Bilati
(Orissa) Ltd. 126.93 126.93
iii) Joint Undertaking given for
over-run / shortfall and
Guarantee-cum-
Undertaking", in debt service
account and debt repayment in the
event of Not Not
default, in connection with term
loan of Rs. 58 crores, granted by State
Bank Ascertainable Ascertainable of
India to Keonjhar Infrastructure
Development Company Ltd. (KIDCO).
KIDCO has been floated by mine
owners and industries of the localities
including Orissa Sponge Iron & Steel
Limited for development of Palaspanga -
Bamebari Road under BOT arrangement.
(c) Claim not acknowledged as debt 32.73 -
(B) Commitments
i) Estimated amount of contracts (Net of
advance Rs. 54.01 lacs, previous year
Rs. 182.44 lacs) remaining to be
executed on Capital Account and not
provided for. 241.34 443.72
ii) Other Commitments Nil Nil
In computing diluted earnings per share equity share warrants (10%
consideration of 35,00,000 equity shares) allotted on preferential
basis has been excluded as the conversion of warrants into equity
shares is under sub-judice.
8. As the Company's business activity falls within a single primary
business segment, viz. "Iron & Steel" the disclosure requirement of
Accounting Standard 17-Segment reporting are not applicable.
9. All the amounts in Rupees have been rounded off to lacs with
thousands in decimals.
10. Previous year's figures
The revised Schedule VI has become effective from 1 st April 2011 for
the preparation of financial statements. This has significantly
impacted the disclosure and presentation made in the financial
statements. Previous year figures have been regrouped / reclassified
wherever necessary to correspond with the current year's classification
/ disclosure.
Mar 31, 2010
1) Considering commercial viability and better realization from the
sale of surplus power generated from waste heat power project, the
company has suspended the production of billet temporarily towards the
end of the year.
2) As per sale agreement entered between GRIDCO Ltd., Bhubaneswar and
the Company for sale of power dated 16th day of September 2009, the
Company has been evacuating surplus power for sale to GRIDCO after
meeting the captive requirement, generated from Waste Heat Power Plant.
3) The capacity of waste heat power project has been expended in
January, 2009. The certification of the expanded capacity, as a valid
project for entitlement of allotment of CER, is pending. Pending
certification, carbon credit accrued and estimated by Accredited
Agencies, from the certified project upto 31st December, 2008 has been
considered for estimating the accrued CER. The CER accrued from the
expanded project will be considered after obtaining approval of CDM
registration.
During the year there is no sale of CER. The difference between
valuation in opening and closing accrued CER units are shown as
(decrease) / increase in other income (Schedule - 9).
4) Equity share warrants amounting to Rs. 601.50 lacs represents 10 %
consideration received from a party against share warrants issued on
preferential basis during the year 2007-08. The conversion of share
warrants to equity is sub-judice and pending before High Court of
Orissa, Cuttack.
5) Rs. 274 lacs is due from Neelachal Ispat Nigam Ltd. (NINL) for certain
claims. As per legal advice obtained from eminent Advocates, the claim
is payable by NINL. The Management is pursuing the recovery and
confident of realizing the amount.
6) Bilati (Orissa) Ltd. (BOL)
Bilati (Orissa) Ltd. (BOL), was promoted by the Company along with
Torsteel Research Foundation in India (TRFI) and Orissa Agro Industries
Corporation Ltd. for setting up a food processing and horticulture unit
in Keonjhar for socio-economic development of the region. A State-
of-Art Fruits and Vegetables processing plant of stainless steel
imported from Italy with a large processing capacity was set up.
Production could not be achieved at the sustainable level due to
non-availability of adequate working capital. Consequently, BOL became
a sick company. Management considered that BOL as a debt-free company
is a viable unit and could meet the objective for which project was
contemplated.
7) Bamra Iron & Steel Company (India) Limited (Bamra)
The Companys initiative for expansion and obtaining iron ore mining
lease was based on creating production facilities of one million tonne
of steel production. Bamra Iron & Steel Company (India) Limited was
floated as a wholly owned subsidiary Company for implementing expansion
programme of the Company.
8) The advances recoverable include payment of Rs. 273.69 lacs to
Noth-Eastern Electricity Supply Company Ltd. (NESCO) for enhanced
tariff as per notification for the period May 1996 to 31 st March 1997.
Honourable High Court, Cuttack, Orissa has set aside the said
notification as "Not sustainable". NESCO has filed an appeal in the
Honourable Supreme Court of India and decision is still pending. In
view of the Honourable High Court decision, the aforesaid amount has
been considered as good and recoverable.
9) The management has reviewed the impairment of Fixed Assets during
the year and there are no such impairment of assets.
10) Based on and to the extent of information obtained from suppliers
regarding their status as Micro, Small or Medium enterprises under the
Micro, Small and Medium Enterprises Development Act, 2006, there are no
amounts due to them as at the end of the year.
11) Estimated amount of contracts (Net of advance) remaining to be
executed on Capital Account and not provided for amounts to Rs. 129.67
lacs (Rs. 235.20 lacs).
12) Prior period items include ^ 151.45 lacs paid to NESCO for settling
claim of delayed payment surcharges in respect of earlier years.
13) Raw material stock includes coal char stock of Rs. 209.06 lacs
(previous year Rs. 177.99 lacs) which will be consumed for power
generation through coal fired boiler. Coal char is a waste generated
from the process and valued at net realizable value.
14) Contingent liabilities not provided for:
2009-10 2008-09
i) For Letters of Credit and for Counter
Guarantees to the Banks 1,357.24 735.17
for guarantees given by them.
ii) Disputed Sales Tax (under appeal) 2,973.63 2,973.63
(Includes Rs. 1,175.80 lacs towards
disallowance of branch transfer and consignment
transfer of finished goods and Rs. 940.67 lacs is
for non-submission of declaration forms, out
of which Rs. 887.39 lacs have since been
collected / submitted).
iii) Disputed Central Excise (under appeal) 44.76 44.76
iv) Income Tax Demand (under appeal) 85.22 210.01
v) Interest on TDS for different years (under appeal) - 1.39
vi) Minimum Demand charges (Electricity) - 153.85
vii) Interest for delayed payment of Sales
Tax & Excise Duty loan 145.04 -
15) As the Companys business activity falls within a single primary
business segment, viz. Iron & Steel" the disclosure requirement of
Accounting Standard 17 - Segment reporting issued by ICAI are not
applicable.
16) DISCLOSURES IN ACCORDANCE WITH REVISED AS-15 ON "EMPLOYEES
BENEFITS" a) Compensated Absences:
Liability for Compensated Absences is provided on the basis of
valuation as at the Balance Sheet date, carried out by an Independent
actuary. The Actuarial valuation method used for measuring the
liability is the Projected Unit Credit method. Under this method, the
Defined Benefit Obligation is calculated taking into account pattern of
availment of leave while in service and qualifying salary on the date
of availment of leave. In respect of encashment of leave, the Defined
Benefit obligation is calculated taking into account in qualifying
salary projected up to the assumed date of encashment.
17) The Company has not prepared the Consolidated Financial Statement
as required under Accounting Standard - 21 (AS-21), since the
subsidiary of the Company has not started project implementation during
the year and transactions done by the Company is not material. However
separate financial statements of the Subsidiary is presented.
18) Related Party disclosures under Accounting Standard -18 A. Name of
related party and relationship :
I. Subsidiary Bamra Iron and Steel Company (India) Ltd.
II. Associates Torsteel Research Foundation in India
TRFI Investment Pvt. Ltd.
OSIL-TRFI Community Services
Bilati (Orissa) Ltd.
Torsteel Services Pvt. Ltd.
III. Key Management Personnel
Dr. P. K. Mohanty
Mr. Munir Mohanty
Mr. M. A. Khan
IV. Enterprises over which Key Management Torsteel Research Foundation
in India Personnel exercise significant interest TRFI Investment Pvt.
Ltd.
OSIL-TRFI Community Services
Bilati (Orissa) Ltd.
Torsteel Services Pvt. Ltd.
19) All the amounts in Rupees have been rounded off to lacs with
thousands in decimals.
20) Previous years figures have been regrouped and reclassified
wherever necessary.