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Notes to Accounts of Panyam Cements & Mineral Industries Ltd.

Mar 31, 2015

1. Under The Micro, Small and Medium Enterprises Development Act, 2006 and in accordance with the notification issued by the Ministry of Corporate Affairs, certain disclosures are required to be made relating to Micro and Small Enterprises as defined in the said Act. The company is in the process of compiling the relevant information from its suppliers about their coverage under the said Act and hence required disclosures could not be made.

2. Disclosure of discontinued operations of Wire / Engineering Division:

The operations of the Wire/ Engineering Division at Bengalore were permanently discontinued from October 2005 and the division was closed on 31.01.2006. The company has entered into agreements for joint development of land with the developers. As per the disclosure requirements under Accounting Standard (AS 24), the book value Rs.94.24 lakhs of land property under joint development agreements, was shown separately under "Current Assets" as current investment in land property and the amounts received from intending buyers of Rs.314.00 lakhs (previous year Rs.289.00 lakhs) were shown separately under "Non-Current Liabilities" as other long term liability. There was no revenue income/expenses incurred during the year (previous year profit on sale of property Rs.2820.97 lakhs considered as exceptional item).

3. Belated charges/overdue interest on delay in payment of statutory dues/liabilities have not been provided in the absence of demand for the same.

4. The balances of sundry debtors, sundry creditors, other liabilities, advance to suppliers for raw materials and spares, other advances including claims and deposits have been shown as appearing in the books of account and are subject to reconciliation and confirmation.

5. Lease payments:

The Company has not taken any assets under non cancelable operating lease agreements and hence no future lease payments.

6. Segment Reporting

The business activity and geographical operations of the company is in one segment of cement product and hence segment reporting is not applicable.

7. EARNING PER SHARE

Basic and diluted earnings/(Loss) per share (face value of Rs.10/-each) calculated in compliance with the provisions of Accounting Standard 20 for the year ended 31.03.2015 comes to loss Rs.(9.48) (Previous year Rs.(2.67).

The denominator for basic/diluted EPS is 16018139 Equity Shares of Rs.10/- each numerator is net loss of Rs.15,15,53,621.11 for the year as per Statement of Profit and Loss (Previous year net Loss Rs.4,25,81,139.63) and as increased by the preference dividend for the year of Rs.2,70,186/- on "C" Cumulative Redeemable Preference Shares, which is not provided.

Therefore basic/diluted earning per share = Net Loss of Rs.15,18,23,807.11÷16018139 shares=Rs.(9.48)

8. Figures have been rounded off to the nearest decimal of Lacs under Notes to Accounts.

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


Mar 31, 2014

NOTE NO : 1

Significant Accounting Policies and Notes to Accounts for the year ended 31st March, 2014

1.1 Contingent Liabilities not provided in respect of :

RUPEES IN LAKHS

SI. No. PARTICULARS Current Year Previous Year 2013-14 2012-13

a) As a signatory to the Memorandum of Cement Allocation and 1.00 1.00 Co-ordinating Organization

b) Guarantees given by the Bankers / Letters of Credit 222.02 220.37 (Net of margin money paid)

c) Corporate guarantee given to SIPCOT for the financial 3174.79 3124.85 assistance availed by M/s.Cheran Cement Limited (as on 30-04-2013)

d) Corporate guarantee given to SBI, SBH, Bank of India, Syndicate Bank, Indian Overseas Bank, Central Bank of India 19886.91 5877.27 and Canara Bank for financial assistance availed by S.P.Y. Agro Industries Limited

e) Arrears of dividend on "C" Cumulative Preference shares held 40.50 37.80 by institutions, being not redeemed and requested for extension of time

f) Estimated amount of contracts remaining to be executed on 605.78 605.78 capital account (Net of advances)

g) Claims against the Company not acknowlodged as debts being disputed and pending in appeals and not provided for as the Company is hopeful of success in appeals:

i) CENTRAL EXCISE :

a) CENVAT credits availed and utilized were subsequently 469.21 848.27 disallowed by the Department and demand raised for differential duty.

b) Differential Duty on supplies made to direct parties The Company has contested in appeals and are pending with 671.24 575.74 the Commssioner of Appeals or CEGAT/or A.P High Court (paid under protest Rs.12.56 lakhs)

ii) ELECTRICITY MATTERS:

a) Claim of APSEB for 10% voltage surcharge for the period from September 1983 to November 1984 contested. 30.64 30.64 High Court granted stay and directed APSEB to dispose off the pending representations made by the company.

b) Fuel Surcharge Adjustment (FSA) charges for the years 2008-09, 2009-10 and for the first quarter of 2010-11 payable to APCPDCL contested by the industrial units including the company before the Hon''ble High Court of A.P. and the 53.56 53.56 High Court granted stay for the year 2009-10 and first quarter 2010-11 and the favourable order of the High Court for the year 2008-09 was referred to Supreme Court and the same is pending.

iii) INCOME TAX MATTERS

a) During the year the appeal for the Assessment year 2378.49 - 2008-09 was disposed by the C.I.T. Appeals in favour of - 2378.49 the company and re-opened the assessment for theAssessment Year 2006 07.

b) During the year the Assessing Officer (Dy. Commissioner of Income Tax, Kurnool) has raised demand for payment of 3309.50 - capital gains tax on land under Joint Development Agreement for the Assessment year 2006-07. The company contested the demand before the Commissioner of Income Tax Appeals, Hyderabad.

c) During the year the Assessing Officer has re-opened the assessment for the A.Y 2008-09 and demand raised for MAT liability on book profit under section 115JB of Income 878.68 - Tax Act, the Company contested the demand before the Commissioner of Income Tax Appeals, Hyderabad.

d) The MAT liability for the Assessment year 2009-10 was confirmed by the ITAT and not contested by the Company - 222.52 (Paid under protest Rs. 211.30 lakhs was adjusted and (211.30) balance is payable).

e) Demand raised by the Assessing Officer (Deputy CIT, Hyderabad for the Assessment Year 2011 -12 for payment of TDS and Interest on delayed payments, contested in Nil 32.42 appeals before the Commissioner of Income tax (Appeals), Hyderabad. During the year the appeal was disposed in favour of the Company.

iv) COMMERCIAL TAX MATTERS

a) Demand raised by the Commercial Tax Department, Tamilnadu in respect of levy of penalty for the assessment 5.56 5.56 year 1994-95 contested in appeal before Appellate Authority and the matter was remanded to assessing authority.

b) Penalties levied by the Commercial Tax Officer, Kurnool for non payment of tax dues before the due date. The Company 124.85 114.05 has requested the Government for waiver of the penalties.

v) Penal Interest/ Damages on P.F Dues

The Department has levied penal interest and damages for delay in P.F payments for the period from May 1989 to 255.39 - September 2001 and the company requested for waiver.

During the year the liability was provided since not waived by the Department and paid part of the amount.

vi) During the year Department of Mines and Geology has raised demand for penal interest up to 31.03.2014 of Rs.1052.56 lakhs on royalty dues for delay in payments and the Company has filed Revision Application for waiver 835.76 650.26

of interest before the Department and Ministry of Mines, New Delhi. (Part of the interest of Rs.216.80 lakhs was provided in earlier years)

viii) OTHER MATTERS

Suits filed by the parties against the company and pending 120.45 126.34 in Appeals Courts

1.2 Under The Micro, Small and Medium Enterprises Development Act, 2006 and in accordance with the notification issued by the Ministry of Corporate Affairs, certain disclosures are required to be made relating to Micro and Small Enterprises as defined in the said Act. The company is in the process of compiling the relevant information from its suppliers about their coverage under the said Act and hence required disclosures could not be made.

1.3 Disclosure of discontinued operations of Wire / Engineering Division:

The operations of the Wire / Engineering Division at Bengalore were permanently discontinued from October 2005 and the division was closed on 31.01.2006. The company has entered into agreements for joint development of land with the developers. As per the requirements of Revised Schedule VI which is effective from 1st April, 2011, the book value of Rs.94.24 lakhs of land property under joint development agreements, was shown separately under "Current Assets" as current investment in land property and the amounts received from joint developers and advances received from intending buyers were shown separately under "Non-Current Liabilities" as other long term liability. There were no revenue income expenses incurred during the year and in previous year. During the year 2013-14 the company has sold the property under Joint Development Aggrement to the extent of possession given by the Developers and Sale Deads were executed and the profit on sale of property of Rs. 2820.97 lakhs (Previous year Rs.4276.00 lakhs) was considered as exceptional item.

1.4 Belated charges/overdue interest on delay in payment of statutory dues/liabilities have not been provided in the absence of demand for the same.

1.5. The balances of sundry debtors, sundry creditors, other

liabilities, advance to suppliers for raw materials and spares, other advances including claims and deposits have been shown as appearing in the books of account and are subject to reconciliation and confirmation.

1.6. Lease payments:

The Company has not taken any assets under non cancelable operating lease agreements and hence no future lease payments.

1.7 Segment Reporting

The business activity and geographical operations of the company is in one segment of cement product and hence segment reporting is not applicable.

1.8 Related party transactions:

The following are the transactions of the related parties, which are related on account of shareholding by key management personnel and their relatives viz. Sri. S.P.Y.Reddy, Chairman, Sri. S.Sreedhar Reddy, Managing Director and other Directors and the Associated Companies :

1.9 EARNING PER SHARE

Basic and diluted earnings/(Loss) per share (face value of Rs.10/-each) calculated in compliance with the provisions of Accounting Standard 20 for the year ended 31.03.2014 comes to loss Rs.(2.67) (Previous year Rs.10.90).

The denominator for basic/diluted EPS is 16018139 Equity Shares of Rs.10/- each numerator is net loss of Rs.4,25,81,140 for the year as per Statement of Profit and Loss (Previous year net Profit Rs.17,48,73,880) and as reduced by the preference dividend for the year of Rs.2,70,186 - on "C" Cumulative Redeemable Preference Shares, which is not provided.

Therefore basic/diluted earning per share = Net Loss of Rs.4,28,51,326-16018139 shares=Rs.(2.67)

1.10 Figures have been rounded off to the nearest decimal of Lacs as required under Revised Schedule VI.

1.11 Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure as required under Revised Schedule VI.


Mar 31, 2013

1.1. Under The Micro, Small and Medium Enterprises Development Act, 2006 and in accordance with the notification issued by the Ministry of Corporate Affairs, certain disclosures are required to be made relating to Micro and Small Enterprises as defined in the said Act. The company is in the process of compiling the relevant information from its suppliers about their coverage under the said Act and hence required disclosures could not be made.

1.2 Disclosure of discontinued operations of Wire / Engineering Division:

The operations of the Wire/ Engineering Division at Bengalur were permanently discontinued from October 2005 and the division was closed on 31.01.2006. The company has entered into agreements for joint development of land with the developers. As per the requirements of Revised Schedule VI which is effective from 1st April, 2011, the book value Rs. 660.52 lakhs of land property under joint development agreements, was shown separately under "Current Assets" as current investment in land property and the amounts received from joint developers and advances received from intending buyers were shown separately under "Non-Current Liabilities" as other long term liability. There were no revenue income/expenses incurred during the previous year. During the year 2012-13 the company has sold the property under Joint Development Aggrements to the extent of possession given by the Developers and Sale Deads were executed and the profit on sale of properity of Rs.4276.00 lakhs was considered as exceptional item.

1.3 Belated charges/overdue interest on delay in payment of statutory dues liabilities have not been provided in the absence of demand for the same.

1.4 The balances of sundry debtors, sundry creditors, other liabilities, advance to suppliers for raw materials and spares, other advances including claims and deposits have been shown as appearing in the books of account and are subject to reconciliation and confirmation.

1.5 Lease payments:

The Company has not taken any assets under non cancelable operating lease agreements and hence no future lease payments.

1.6 Segment Reporting

The business activity and geographical operations of the company is in one segment of cement product and hence segment reporting is not applicable.

1.7 EARNING PER SHARE

Basic and diluted earnings/(Loss) per share (face value of Rs.10/-each) calculated in compliance with the provisions of Accounting Standard 20 for the year ended 31.03.2013 comes to Rs. 10.90 (Previous year Rs.5.68).

The denominator for basic/diluted EPS is 16018139 Equity Shares of Rs.10/- each numerator is profit after tax of Rs. 1748.74 lakhs for the year as per Statement of Profit and Loss (Previous year net Profit Rs. 913.28 lakhs) and as reduced by the preference dividend for the year of Rs. 2.70 lakhs on "C" Cumulative Redeemable Preference Shares, which is not provided.

Therefore basic/diluted earning per share = Net Profit of Rs. 174603879 16018139 shares = Rs. 10.90

1.8 Figures have been rounded off to the nearest decimals of lakhs for disclosures under Notes to Accounts

1.9 Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure as required under Revised Schedule VI.


Mar 31, 2012

1.1 There were no loans repayable on demand and short term deposits/loans and advances from related parties

1.2 There was no default as on 31.03.2012 and 31.03.2011 in repayment of loans and interest payments on working capital cash credit loans.

1.3 SECURITY

Cash Credits working capital loans from banks: Secured by hypothication of inventory of raw materials,finished goods, stocks in-process and book debts and first pari pasu charge on the current assets and second charge on fixed assets of the company and also by the personal gurantee of the above Directors and shareholders.

1.4 There were no current maturities of Finance Lease Obligations, unpaid Dividends,unpaid matured Debentures or deposits and interest accrued thereon, Income received in advance and Application money received for allotment of securities.

There were no investments in Subsidiaries, Associates, Joint Ventures and controlled special purpose Entities and in Preference Shares, Bonds,Debentures,Mutual Funds and in Partnership Firms

2.1 Contingent Liabilities not provided in respect of :

RUPEES IN LAKHS

SI. No. PARTICULARS 2011-2012 2010-2011

a) As a signatory to the Memorandum of Cement Allocation and 1.00 1.00 Co-ordinating Organization

b) Guarantees given by the Bankers/Letters of Credit (Net of 314.61 66.80 margin money paid)

c) Corporate guarantee given to SIPCOT for the financial 2351.62 1683.74 assistance availed by M/s.Cheran Cement Limited (estimated liability)

6952.54 7742.77

d) Corporate guarantee given to SBI, SBH, Bank of India, Syndicate Bank and Indian Overseas Bank for financial assistance availed by S.P.Y. Agro Industries Limited

e) Arrears of dividend on "C" Cumulative Preference shares held 35.10 32.40 by institutions, being not redeemed and requested for extension of time

f) Estimated amount of contracts remaining to be executed on 705.50 765.65 capital account (Net of advances)

g) Claims against the Company not acknowlodged as debts being disputed and pending in appeals and not provided for as the Company is hopeful of success in appeals:

i) CENTRAL EXCISE AND CENVAT CREDIT: CENVAT credits 950.51 878.62 availed and utilized were subsequently disallowed by the Department and demand raised for differential duty and show cause notice for irregular availment of CENVAT credit (July 2006 to November 2007).

The Company has contested in appeals and are pending with the Commssioner of Appeals or CEGAT/or A.P High Court (paid under protest Rs. 12.56 lakhs)

ii) ELECTRICITY MATTERS:

Claim of APSEB for 10% voltage surcharge for the period from September 1983 to November 1984 contested. High 30.64 108.73 Court granted stay and directed APSEB to dispose off the pending representations made by the company. (Provided during the year Rs. 70.35 lakhs)

iii) INCOME TAX MATTERS

Demand raised by the Assessing Officer (Addl.CIT, Kurnool) 2601.00 2378.48 for the Assessment year 2008-09 for payment of capital gains tax on Bengaluru/ Wire Division land under Joint Development Agreement and for assessment year 2009-10 MAT liability on book profit under section 115JB of IT Act, which are contested by the company before the Commissioner of Income Tax (Appeals), Hyderabad and the appeals are pending and got stay/installments from the Commissioner for the balance amount.(Paid under protest Rs. 144.70 lakhs)

iv) COMMERCIAL TAX MATTERS

a) Demand raised by the Commercial Tax Department, Tamilnadu in respect of levy 5.56 5.56 of penalty for the assessment year 1994-95 contested in appeal before Appellate Authority and the matter was remanded to assessing authority.

b) Demand raised by the Asst. Commissioner (CT) Audit, Nil 92.59 Kurnool for payment of dirfferential tax for the year 2007-08,contested in appeal before the Appellate Dy.Commissioner, Kurnool and the Appeal was remanded during the year. The Assessing Officer partly allowed and the amount was paid (Rs.11.57 lakhs paid under protest in previous year was adjusted during the year)

c) During the year Penalties levied by the Commercial Tax 58.27 Nil Officer, Kurnool for non payment of tax dues before the due date for which installments were granted by the Department. The Company has requested the Government for waiver of the penalities.

v) Penal Interest / Damages on PF Dues The Department 277.59 399.69 has levied penal interest and damages for delay in P.F payments for the period from May 1989 to September 2001 and the company requested for waiver. (Paid during the year Rs. 122.10 lakhs and previous year Rs. 28.19 lakhs)

vi) Penal interest on Royalty Dues During the year Department 343.72 Nil of Mines and Geology has raised demand for penal interest up to 31.03.2011 of Rs. 560.52 lakhs on royalty dues for delay in payments and the Company has filed Revision Application for waiver of interest before the Department and Ministry of Mines, New Delhi. (Part of the interest of Rs. 216.80 lakhs was provided in earlier years)

vii) Suits filed against the Company and the Developers of 66625.12 66625.12 Bengaluru Property, in the Court of City Civil Judge, Bengaluru by two prospective buyers (Kare Electronics and Developments Private Limited and Pranava Electronics Private Limited) for specific performance of agreements to sell the property of Bengaluru land under development agreements and for refund of advances paid under the agreements to sell with interest, damages and value of undivided right, title, interest in the land entitlement as per the agreements to sell, which were contested by the company and the case was dismissed by the City Civil Court and High Court of Karnataka, Bengaluru and the matter is pending before the Honourable Supreme Court of India.

viii)OTHER MATTERS

Suits filed by the parties against the company and 126.34 126.34 pending in Appeals/Courts

2.2. Under The Micro, Small and Medium Enterprises Development Act, 2006 and in accordance with the notification issued by the Ministry of Corporate Affairs, certain disclosures are required to be made relating to Micro and Small Enterprises as defined in the said Act. The company is in the process of compiling the relevant information from its suppliers about their coverage under the said Act and hence required disclosures could not be made.

2.3 Disclosure of discontinued operations of Wire / Engineering Division:

The operations of the Wire/ Engineering Division at Bengalur were permanently discontinued from October 2005 and the division was closed on 31.01.2006. The company has entered into agreements for joint development of land with the developers. As per the requirements of Revised Schedule VI which is effective from 1st April, 2011, the book value Rs. 813.12 lakhs of land property under joint development agreements, was shown separately under "Current Assets" as current investment in land property and the amounts received from joint developers and advances received from intending buyers were shown separately under "Non-Current Liabilities" as other long term liability. There were no revenue income/expenses incurred during the year and in previous year.

2.4 Belated charges/overdue interest on delay in payment of statutory dues liabilities have not been provided in the absence of demand for the same.

2.5 The balances of sundry debtors, sundry creditors, other liabilities, advance to suppliers for raw materials and spares, other advances including claims and deposits have been shown as appearing in the books of account and are subject to reconciliation and confirmation.

2.6 Lease payments:

The Company has not taken any assets under non cancelable operating lease agreements and hence no future lease payments.

2.7 Segment Reporting

The business activity and geographical operations of the company is in one segment of cement product and hence segment reporting is not applicable.

2.8 EARNING PER SHARE

Basic and diluted earnings/(Loss) per share (face value of Rs.10/-each) calculated in compliance with the provisions of Accounting Standard 20 for the year ended 31.03.2012 comes to Rs. 5.68 (Previous year (Loss) Rs.2.40).

The denominator for basic/diluted EPS is 16018139 Equity Shares of Rs.10/- each numerator is profit after tax of Rs.913.28 lakhs for the year as per Statement of Profit and Loss (Previous year net loss Rs.381.20 lakhs) and as reduced by the preference dividend for the year of Rs. 2.70 lakhs on "C" Cumulative Redeemable Preference Shares, which is not provided.

Therefore basic/diluted earning per share =Net Profit of Rs. 910582016018139 shares=Rs.5.68.

2.9 Figures have been rounded off to the nearest decimal of Lacs as required under Revised Schedule VI.

2.10 The Revised Schedule VI has become effective from 1st April, 2011 for preparation of financial statements for the year 2011 -12. This has significantly impacted the disclosure and presentation in financial statements. Consequently previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure as required under Revised Schedule VI.


Mar 31, 2011

Rupees in Lakhs 2010-2011 2009-2010

1 Contingent Liabilities not provided for :

a) As a signatory to the Memorandum of Cement Allocation and Co-ordinating Organization

1.00 1.00

b) Guarantees given by the Bankers/ Letters of Credit(Net of margin money paid)

66.80 19.28

c) Corporate guarantee given to SIPCOT for the financial assistance availed by M/s.Cheran Cement Limited estimated Liability.

1445.00 1000.00

d) Corporate guarantee given to SBI, SBH, Bank of India, Syndicate Bank and Indian Overseas Bank for financial assistance availed by S.P.Y. Agro Industries Limited

7742.77 6569.69

e) Arrears of dividend on "C" Cumulative Preference shares held by institutions, being not redeemed and requested for extension of time

32.40 29.70

f) Estimated amount of contracts remaining to be executed on capital account(Net of advances)

765.65 1724.12

2. Under The Micro, Small and Medium Enterprises Development Act, 2006 and in accordance with the notification issued by the Ministry of Corporate Affairs, certain disclosures are required to be made relating to Micro and Small Enterprises as defined in the said Act. The company is in the process of compiling the relevant information from its suppliers about their coverage under the said Act and hence required disclosures could not be made.

3. Disclosure of discontinued operations of Wire Division and Chemical Division:

The operations of the Engineering Division were permanently discontinued from October 2005 and the division was closed on 31.01.2006. The company has entered into an agreement for joint development of land with the developers. As per the requirements of Accounting Standard (AS-24), the book values as at 31.03.2009 of fixed assets (land, office equipment, furniture and vehicle etc.) of Rs.759.95 lakhs were not shown separately but included under relevant heads of account and the amount received from joint developer during the year of Rs.65.00 lakhs (Previous year Rs.Nil) and advances received from intending buyers during the year of Rs. Nil (Previous year Rs.NIL lakhs) and repayments made to parties during the year Rs.200.81 lakhs (Previous year Rs.356.50 lakhs) shown separately under sources of funds as advance against property development. There was no revenue income expenses incurred during the year and in previous year.

The operations of the Chemical Division were permanently discontinued and the division was closed on 31.03.1998. During the year 2008 09, the company has disposed off the total land and buildings of the division and during the year no expenses were incurred.

4. Belated charges/overdue interest on delay in payment of statutory dues/ liabilities have not been provided in the absence of demand for the same.

5 The balances of sundry debtors, sundry creditors, other liabilities, advance to suppliers for raw materials and spares, other advances including claims and deposits have been shown as appearing in the books of account and are subject to reconciliation and confirmation.

6. Lease payments:

There are no lease payments during the year and no liability in future years.

7. Deferred Tax Liability

There is no deferred tax liability as on 31.03.2011 on account of business loss/depreciation and expenditure allowable under section 43B of the I.T. Act, 1961.

8. Segment Reporting

The business activity and geographical operations of the company is in one segment of cement product and hence segment reporting is not applicable.

9. EARNING PER SHARE

Basic and diluted earnings/(Loss) per share (face value of Rs.10/-each) calculated in compliance with the provisions of Accounting Standard 20 for the year ended 31.03.2011, comes to loss Rs.(2.40) (Previous year Rs.9.06).

The denominator for basic/diluted EPS is 16018139 Equity Shares of Rs.10/- each numerator is net loss after tax of Rs.381.20 lakhs for the year as per Profit and Loss Account(Previous year Rs. 1453.99 lakhs)and as increased by the preference dividend for the year of Rs.2.70 lakhs on "C" Cumulative Redeemable Preference Shares, which is not provided.

Therefore basic/diluted loss per share = Net Loss of Rs.3,83,90,635/16018139 shares = Rs.(2.40).

10. Previous year figures have been regrouped/rearranged wherever necessary to make them comparable with the current year figures.


Mar 31, 2010

Rupees in Lakhs

2009-2010 2008-2009

1 Contingent liabilities not provided for:

a) As a signatory to the Memorandum of Cement Allocation and Co-ordinating Organization

1.00 1.00

b) Guarantees given by the Bankers/ Letters of Credit(Net of margin money paid)

19.28 16.19

c) Corporate guarantee given to SIPCOT/TIIC for the financial assistance availed by M/s.Cheran Cement Limited estimated liability (During the year TIIC liability paid Rs. 148.69 lakhs under final settlement of Rs. 198.69 lakhs (previous year paid Rs.50.00 lakhs

1000.00 1362.53

d) Corporate guarantee given to SBI, SBH, Bank of India, Syndicate Bank and Indian Overseas Bank for financial assistance availed by S.P.Y. Agro Industries Limited

6569.69 7394.29

e) Arrears of dividend on "C" Cumulative Preference shares held by institutions, being not redeemed and requested for extension of time

29.70 27.00

f) Estimated amount of contracts remaining to be executed on capital account (Net of advances)

1724.12 3549.86

2. Under The Micro, Small and Medium Enterprises Development Act, 2006 and in accordance with the notification issued by the Ministry of Corporate Affairs, certain disclosures are required to be made relating to Micro and Small Enterprises as defined in the said Act. The company is in the process of compiling the relevant information from its suppliers about their coverage under the said Act and hence required disclosures could not be made.

3. Disclosure of discontinued operations of Wire Division and Chemical Division:

The operations of the Engineering Division were permanently discontinued from October 2005 and the division was closed on 31.01.2006. The company has entered into an agreement for joint development of land with the developers. As per the requirements of Accounting Standard (AS 24), the book values as at 31.03.2009 of fixed assets (land, office equipment, furniture and vehicle etc.) of Rs.759.95 lakhs were not shown separately but included under relevant heads of account and the amount received from joint developer during the year of Rs.Nil (Previous year Rs.Nil) and advances received from intending buyers during the year of Rs.Nil (Previous year Rs.30.00 lakhs) and repayments made to parties during the year Rs.356.50 lakhs (Previous year Rs.Nil) shown separately under sources of funds as advance against property development. There was no revenue income/expenses incurred during the year and in previous year.

The operations of the Chemical Division were permanently discontinued and the division was closed on 31.03.1998. During the year 2008- 09, the company has disposed off the total land and buildings of the division and during the year no expenses were incurred.

4 During the year 2005-06 the company has announced

VRS and the amount settled under VRS treated as deferred revenue expenditure to be written off over a period of five years from 2005-06. Accordingly an amount of Rs.282.85 lakhs (Previous year Rs.282.86 lakhs) has been written off and the balance at the year end is Rs.Nil (Previous year Rs.282.85 lakhs).

5. Belated charges/overdue interest on delay in payment of statutory dues/liabilities have not been provided in the absence of demand for the same.

6. The balances of sundry debtors, sundry creditors, other liabilities, advance to suppliers for raw materials and spares, other advances including claims and deposits have been shown as appearing in the books of account and are subject to reconciliation and confirmation.

7. Lease payments:

There are no lease payments during the year and no liability in future years.

8. Deferred Tax Liability

There is no deferred tax liability as on 31.03.2010 on account of expenditure allowable under section 43B of thel.T.Act, 1961 and deferred revenue expenditure allowable in future years.

9. Segment Reporting

The business activity and geographical operations of the company is in one segment of cement product and hence segment reporting is not applicable.

10. Related party transactions:

The following are the transactions of the related parties, which are related on account of shareholding by key management personnel and their relatives viz. Sri S.P.Y.Reddy, Chairman, Sri S.Sreedhar Reddy, Managing Director and other Directors and the Associated Companies.

EARNING PER SHARE :

Basic and diluted earnings per share (face value of Rs.10/-each) calculated in compliance with the provisions of Accounting Standard 20 for the year ended 31.03.2010, comes to Rs.9.06 (Previous year Rs.21.50)

The denominator for basic/diluted EPS is 16018139 Equity Shares of Rs. 10/-each numerator is net profit after tax of Rs.1453.99 lakhs for the year as per Profit and Loss Account(Previous year Rs.3446.55lakhs)and as reduced by the preference dividend for the year of Rs.2.70 lakhs on "C" Cumulative Redeemable Preference Shares, which is not provided.

Therefore basic/diluted EPS = Net Profit of Rs.145129015/16018139 shares=Rs.9.06.

11.Previous year figures have been regrouped/rearranged wherever necessary to make them comparable with the current year figures.

 
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