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Notes to Accounts of Panchmahal Steel Ltd.

Mar 31, 2015

1) Freehold Land, Staff & Executive Building include shares of Rs.750/-(Previous year Rs.750/-) held in co-operative Societies , which are in the name of nominees of the Company.

The information has been given in respect of such suppliers to the extent they could be identified as 'Micro, Small and Medium Enterprises' on the basis of information available with the company.

The remuneration to Managing Director has been paid in accordance with the approval of the Central Government. The Remuneration to the other whole-time Directors has been paid in terms of approval of shareholders to the said appointments.

2) Balances of the most of the Debtors, Creditors and Loans of the Company are confirmed periodically.

3) Pursuant to the provisions of the Companies Act, 2013, becoming effective from 01.04.2014, the Company has charged depreciation based on the specified useful life of Fixed Assets as per Schedule II to the Act. The written down value less residual value of its Fixed Assets amounting to Rs.79,29,100/- having Nil useful life has been adjusted against opening balance of retained earnings.

4) Segment Disclosures :

The Company is engaged in a single segment of manufacture and sale of "Steel Products" in accordance with Accounting Standard (AS-17). Accordingly primary and secondary reporting disclosure for business/geographical segment as envisage in AS-17 are not applicable to the Company.

5) Retirement Benefits :

The table of retirement benefits as on 31st March, 2015 is as below.

Based on the favourable decision in similar cases and in the opinion of lawyers, the Management believes that it has good cause in respect of all the items listed under (c) to (f) above therefore no provision against is considered.

*Owing to excess Plan Assets as compared to required Investment in terms of valuation report for Gratuity, no additional adjustment as mentioned above is made either in Profit and Loss Account or in Balance Sheet at the year end.

6) Related Party Disclosures (As identified by the Management)

A. List of Related Parties :

i) Associate Companies : Honeyvick Enterprises Private Limited

ii) Enterprise over which one of key : Amil Enterprises Private Limited Management Personnel exercises significant control iii) Key Management Personnel : Mr.Ashok Malhotra - Chairman & Managing Director

Mr.Hanish Malhotra - Director (Marketing) Mr.Pradeep Sharma - Director (Operations) Mr.Pradip H.Gupta - Chief Financial Officer (w.e.f. 14.11.2014) Mr.Deepak Nagar - GM (Legal) & Co.Secretary

B. Related Party /Key Management Personnel Transactions : i) Associates

Deposit received : Rs. 190,00,000 (Rs.185,00,000)

Deposit repaid : Rs. 190,00,000 (Rs.185,00,000)

Interest : Rs. 22,36,274 (Rs. 15,92,296)

ii) Enterprise over which one of key Management Personnel exercises significant control

Deposit received : Rs.45,00,000 (Rs.45,00,000)

Deposit repaid : Rs.45,00,000 (Rs.45,00,000)

Interest : Rs. 5,29,644 (Rs.3,47,671)

iii) Key Management Personnel

Gross Remuneration : Rs. 2,24,38,950 (Rs.2,01,40,446)

Note: Figures in the brackets are for previous year.

7) Financial Restructuring :

The Company has discharged all its liabilities towards the Secured Lenders of the Company as per the sanctioned modified Scheme of Compromise and/or Arrangements and orders of the Hon'ble High Court of Gujarat.

The Company has received no due certificates from all the secured lenders covered under the Scheme except ARCIL, for which the company has moved an application under section 392 of the erstwhile Companies Act, 1956 before the Hon'ble High Court of Gujarat, seeking directions for ARCIL to issue no due certificate to the company.

* Include Job work production 2,633 M.T. (Previous Year 3,175 M.T) Note: Figures in the bracket are for previous year.

8) Previous year's figures have been recast/ regrouped/reclassified wherever necessary to correspond with current year's classification/disclosures.


Mar 31, 2014

1 Contingent Liabilities & Commitments not provided for :

Amount - Rupees

31.03.2014 31.03.2013

a) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of Advances) 274,70,561 174,07,526

b) Letter of Credits Outstanding 1730,49,630 1873,33,632

c) Claims against Company not acknowledged as Debts 185,82,336 185,82,336

d) Disputed Excise, Custom, Service Tax and Gujarat VAT Liabilities 136,45,993 135,20,290

e) Disputed Income Tax Liabilities 148,76,029 148,76,029

f) Guarantee given to MGVCL by Company''s Banker 425,79,785 425,79,785

Based on the favourable decision in similar cases and in the opinion of lawyers, the Management believes that it has good cause in respect of all the items listed under (c) to (e) above therefore no provision against is considered.

* Freehold Land & Staff Executive Building include shares of Rs.750/- (Previous year Rs.750/-) held in Co-operative Societies, which are in the name of nominees of the Company.

* Balances of the most of the Debtors, Creditors and Loans of the Company are confirmed periodically.

* Segment Disclosures :

The Company is engaged in a single segment of manufacture and marketing of "Steel Products " in accordance with Accounting Standards (AS - 17).

* Financial Restructuring :

The Company has discharged all its liabilities towards the Secured Lenders of the Company as per the sanctioned modified Scheme of Compromise and/or Arrangement and orders of the Hon''ble High Court of Gujarat.

The Company has received no due certificates from all the secured lenders covered under the Scheme except Arcil, for which the company has moved an application under Section 392 of the Companies Act, 1956 before the Hon''ble High Court of Gujarat, seeking directions for Arcil to issue no due certificate to the company.


Mar 31, 2013

1) Contingent Liabilities & Commitments not provided for :

Amount - Rupees

31.03.2013 31.03.2012

a) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of Advances) 174,07,526 186,88,010

b) Letter of Credits Outstanding 1873,33,632 1465,22,599

c) Claims against Company not acknowledged as debts 185,82,336 185,82,336

d) Disputed Excise, Custom, Service Tax and Gujarat VAT Liabilities 135,20,290 126,34,028

e) Disputed Income Tax Liabilities 148,76,029 272,51,851

f) Guarantee given to MGVCL by Company`s Banker 425,79,785 346,17,067

Based on the favourable decision in similar cases and in the opinion of lawyers, the Management believes that it has good cause in respect of all the items listed under (c) to (e) above, therefore, no provision against is considered.

2) Free-hold Land & Staff Executive Building include shares of Rs.750/- (Previous year Rs.750/-) held in Co-operative Societies, which are in the name of nominees of the Company.

3) Balances of the most of the Debtors, Creditors and Loans of the Company are confirmed periodically.

4) Related Party Disclosures (As identified by the Management)

A. List of Related Parties

i) Associate : AMIL Enterprises Private Limited

: Honeyvick Enterprises Private Limited

ii) Key Management Personnel : Mr. Ashok Malhotra - Chairman & Managing Director

: Mr. Hanish Malhotra - Director (Marketing)

: Mr. Pradeep Sharma - Director (Operations)

iii) Relative of Key Management Personnel : Mr. Vikas Malhotra (Relative of Director)

B. Related Party /Key Management Personnel Transactions i] Associate

Deposit received : Rs.320,00,000 (Rs.197,00,000)

Deposit paid : Rs.320,00,000 (Rs.197,00,000)

Interest : Rs. 20,50,684 (Rs. 11,57,852)

ii) Key Management Personnel

Gross Remuneration : Rs. 198,25,434 (Rs.163,54,176)

iii) Relative of Key Management Personnel* :

Gross Remuneration : Rs. 4,88,500 (Rs.3,97,933)

*Employed for part of the year in both the years

Note: Figures in the brackets are for previous year.

5) Segment Disclosures :

The Company is engaged in a single segment of manufacture and marketing of "Steel Products " in accordance with Accounting Standards (AS - 17).

6) Financial Restructuring

The Existing Loans with secured lenders under the Scheme of Compromise and/or Arrangement as approved by the Hon`ble High Court of Gujarat have been duly settled and paid to all the secured lenders. The matter related to dissenting secured lender is pending before the Hon`ble High Court of Gujarat.

The security documents, in relation to creation of charge on the assets of the Company, duly executed by the company in favour of its Secured Lenders and Debenture Trustees, as stipulated under the said Scheme are continuing to remain in full force and effect.

7) Previous year''s figures have been recast/ regrouped/reclassified wherever necessary to correspond with current year''s classification/disclosures.


Mar 31, 2012

1) Contingent Liabilities & Commitments not provided for: Amount - Rupees

31.03.2012 31.03.2011

a) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of Advances) 186,88,010 83,84,036

b) Letter of Credits Outstanding 1465,22,599 1012,35,667

c) Claims against Company not acknowledged as debts 185,82,336 185,82,336

d) Disputed Excise, Custom & Service Tax Liabilities 126,34,028 190,59,341

e) Disputed Income Tax Liabilities 272,51,851 272,51,851

f) Guarantee given to M.G.V.C.L. by Company's Banker 346,17,067 346,17,067

Based on the favourable decision in similar cases and in the opinion of lawyers, the Management believes that it has good cause in respect of all the items listed under (c) to (e) above therefore no provision against is considered.

2) Free-hold Land & Staff Executive Building include shares of Rs.750/- (Previous year Rs.750/-) held in Co-operative Societies, which are in the name of nominees of the Company.

3) Balances of the most of the Debtors, Creditors and Loans of the Company are confirmed periodically.

4) Segment Disclosures:

The Company is engaged in a single segment of manufacture and marketing of "Steel Products " in accordance with Accounting Standards (AS - 17).

5) Financial Restructuring:

The Company has fully implemented the Scheme of Compromise and/or Arrangement as approved by Hon'ble High Court of Cuiarat. The matter related to dissenting creditor is nendine before the Hon'ble High Court of Guiarat.

6) The revised schedule VI has become effective from April 1 st, 2011 for the preparation of financial statements. This significantly impacted the disclosures and presentation made in the financial statements. Previous year's figures have been recast/ regrouped/reclassified wherever necessary to correspond with current year's classification/ disclosures.


Mar 31, 2011

1) Micro, Small and Medium Enterprises Development Act, 2006 :

The information has been given in respect of such vendors to the extent they could be identified as 'micro, small and medium enterprises' on the basis of information available with the company.

2) (A) Managerial Remuneration :

Remuneration to the Managing Director and Whole time Directors has been paid in terms of approval of shareholders/ Central Government to the said appointments.

3) Contingent Liabilities not provided for :

Amount - Rs. in Lacs 31.03.2011 31.03.2010

a) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of Advances) 83.84 121.94

b) Letter of Credits Outstanding 1012.36 278.00

c) Claims against Company not acknowledged as debts 185.82 185.82

d) Disputed Excise, Custom & Service Tax Liabilities 190.59 187.02

e) Disputed Income Tax Liabilities 246.06 269.68

f) Guarantee given to MCVCL by Company's Banker 346.17 Nil

Based on the favourable decision in similar cases and in the opinion of lawyers, the Management believes that it has good cause in respect of all the items listed under (c) to (e) above therefore no provision against is considered.

4) Free-hold Land & Staff Executive Building include shares of Rs.750/- (Previous year Rs.750/-) held in Co-operative Societies, which are in the name of nominees of the Company.

5) Balances of some of the Debtors, Creditors and Loans of the Company are subject to confirmation and Company is in the process of obtaining the same.

6) Related Party Disclosures (As identified by the Management)

A. List of Related Parties

i) Associate Companies : AMIL Enterprises Private Limited

: Honeyvick Enterprises Private Limited

ii) Key Management Personnel : Mr. Ashok Malhotra - Chairman & Managing Director

: Mr. Hanish Malhotra - Director (Marketing)

: Mr. Pradeep Sharma - Director (Operations)

iii) Relative of Key Management Personnel : Mr. Vikas Malhotra (Relative of Director) (up to 30.04.2010)

7) Segment Disclosures:

The Company is engaged in a single segment of manufacture and marketing of "Steel Products" in accordance with Accounting Standards (AS -17).

8) Financial Restructuring

The Company has fully implemented the Scheme of Compromise and/or Arrangement as approved by Hon'ble High Court of Gujarat.

The matter related to dissenting creditor is pending before the Hon'ble High Court of Gujarat.

9) Previous year's figures have been recast and regrouped wherever necessary to conform to current year's classification.


Mar 31, 2010

1) Free-hold Land & Staff Executive Building include shares of Rs.750/- (Previous year Rs.750/-) held in Co-operative Societies, which are in the name of nominees of the Company.

2) Balances of some of the Debtors, Creditors and Loans of the Company are subject to confirmation and Company is in the process of obtaining the same.

3) Related Party Disclosures (As identified by the Management) A. List of Related Parties

i) Associate Companies

AMIL Enterprises Private Limited Honeyvick Enterprises Private Limited

ii) Key Management Personnel

Mr. Ashok Malhotra - Chairman & Managing Director Mr. Hanish Malhotra - Director (Marketing) Mr. Pradeep Sharma - Director (Operations)

iii) Relative of Key Management Personnel

Mr. Vikas Malhotra (Relative of Director)

B. Related Party /Key Management Personnel Transactions

i] Associate

Deposit received : Rs. Nil ( 75.00) lacs

Deposit paid : Rs. Nil (335.00) lacs

Interest : Rs. Nil ( 15.19 ) lacs

ii) Key Management Personnel

Gross Remuneration : Rs.161.04 (144.96) lacs

iii) Relative of Key Management Personnel :

Gross Remuneration : Rs. 4.54 (4.49) lacs

4) Segment Disclosures :

The Company is engaged in a single segment of manufacture and marketing of "Steel Products " in accordance with Accounting Standards (AS - 17).

5) Financial Restructuring

The Company has fully implemented the Scheme of Compromise and/or Arrangement as approved by Hon`ble High Court of Gujarat.

The matter related to dissenting creditor is pending before the Honble High Court of Gujarat.

6) Previous years figures have been recast and regrouped wherever necessary to conform to current years classification.

 
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