Home  »  Company  »  Pradeep Metals  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Pradeep Metals Ltd.

Mar 31, 2015

(1.1.1) Bank Borrowings for Working Capital and Sundry Debtors include export bills aggregating to Rs.1,624.76 Lacs (Rs. 1,404.10 Lacs as on 31st March, 2014) purchased / discounted by the Bank but pending realization as on the date of the Balance Sheet.

(1.1.2) The year end net monetary foreign currency exposures that have not been hedged are as follows:- Packing Credit in Foreign Currency

(1.1.3) Related Party Disclosures {as identified and certified by the Management}

As per Accounting Standard 18, notified under the Company''s (Accounting Standards) Rules, 2006, the disclosures of transactions with the related parties are as follows:

(i) List of related parties where control exists and related parties with whom transactions have taken place and relationships:

* includes Sales, Investments and Receivables to Pradeep Metals Limited, New York merged on 9th March,2015

(1.1.4) The dues outstanding to Micro, Small and Medium Enterprises under Micro, Small and Medium Enterprises Development Act 2006, are based on the Information available with the Company and this has been relied upon by the auditors.

(1.1.5) Additional Information pursuant to the provisions of part II of Schedule VI to the Companies Act, 2013 are Annexed separately.

(1.1.6) Note on Corporate Social Responsibility Expenditure related to Corporate Social Responsibilites as per Section 135 of the Company Act, 2013 read with Schedule VII thereof -

a. Gross amount required to be spent by the Company during the year (2% of Average Net Profit) Rs. 1,606,000.

b. Amount Spent on donations to the institutions involved in Social Responsibilities Rs. 783,002.

(1.1.7) Management reassessed the useful life of assets during the quarter ended 30th June, 2014, consequent to the Notification of relevant provisions of Companies Act, 2013. In line with the transitional provisions as per the Part C of the Schedule II of the Act, the Company has recognized amount of Rs. 222.65 lacs (Net off of Deferred Tax credit of Rs.106.94 lacs ) in the opening balance of retained earnings. If the Company had continued with the previously assessed useful lives, charge for depreciation for the year ended 31st March, 2015 would have been lower by Rs.53.66 lacs, for the assets held at 1st April, 2014.

(1.1.8) Remuneration is being paid to Mr Pradeep Goyal, Chairman and Managing Director of the Company w.e.f. 17th October, 2013 pursuant to the Special Resolutions passed by the shareholders at the Extra Ordinary General Meetings held on 25th January, 2014 and Annual General Meeting held on 4th September, 2014, pending necessary approval of the Ministry of Corporate Affairs with reference to the applications / representation made by the Company.

(1.1.9) Considering the rising power tariff and national objective of maximizing development and use of renewable, green energy, the Company has set up a 2.1 MW Wind Mill at Jath, Sangli, for captive use. It has been commissioned on 31st March, 2015.

(1.1.10) With the merger of Wholly Owned Subsidiary, Pradeep Metals Limited, New York with Pradeep Metals Limited Inc., Texas with effect from 9th March, 2015, Pradeep Metals Limited Inc., Texas, has become Wholly Owned Subsidiary of the Company. The Company has made further investment of Rs.77.32 Lacs (USD 1,25,000) in Pradeep Metals Limited, New York and Rs.187.86 Lacs (USD 3,00,000) in Pradeep Metals Limited, Inc., Texas, during the year.

(1.1.11) Pradeep Metals Limited Inc., Texas, a Wholly Owned Subsidiary has, acquired 51% stake in a CNC Machine Shop at Huston, Texas, pursuant to Assets Contribution and Purchase Agreement dated 24th Apirl, 2015, w.e.f. 1st January, 2015. Accordingly, Dimensional Machine Works, LLC, Houston, USA has become step-down Subsidiary of the Company and its unaudited financials for the period from 1st January, 2015 to 31st March, 2015 have been included in the Consolidated Accounts.

(1.1.12) Previous year''s figures have been regrouped/reclassified, wherever necessary, to correspond with the current year''s classifications/disclosures.


Mar 31, 2014

1 Bank Borrowings for Working Capital and Sundry Debtors include export bills aggregating to Rs.1404.10 Lacs (Rs. 1210.85 Lacs as on 31st March, 2013) purchased / discounted by the Bank but pending for realization as on the date of the Balance Sheet.

31st March 2014 31st March,2013 (Rs.) (Rs.)

2 Contingent Liabilities not provided for

a.Letter of Guarantee issued by Union Bank of India

(secured by 100 % margin) 241,347 89,712

(secured by 10 % margin) 902,224 956,862

b. Capital commitment for Fixed Assets (Net of Advances) 44,484,820 30,917,820

3 Related Party Disclosures { as identified and certified by the Management}

As per Accounting Standard 18 notified under the Company''s (Accounting Standards) Rules, 2006, the disclosures of transactions with the related parties are given below,

4 The dues outstanding to Micro, Small and Medium Enterprises under Micro, Small and Medium Enterprises Development Act 2006, are based on the Information available with the company and this has been relied upon by the auditors and hence the disclosures as required under the said Act have not been given.

5 The Company has duly complied with the Accounting Standards notified under the Companies Act, 1956 ("the Act") read with General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013.

6 Additional Information pursuant to the provisions of part II of Schedule VI to the Companies Act, 1956 are Annexed separately.

7 Previous year''s figures have been regrouped/reclassified, wherever necessary, to correspond with the current year''s classifications/disclosures.


Mar 31, 2013

(1.1.1) Bank Borrowings for Working Capital and Sundry Debtors include export bills aggregating to Rs.1210.85 Lacs (Rs. 1070.59 Lacs as on 31st March, 2012) purchased / discounted by the Bank but pending realization as on the date of the Balance Sheet.

(1.1.2) The dues outstanding to Micro, Small and Medium Enterprises under Micro, Small and Medium Enterprises Development Act 2006, are based on the Information available with the company and this has been relied upon by the auditors and hence the disclosures as required under the said Act have not been given.

(1.1.3) The Company has duly complied with the Accounting Standards referred to in sub-section 3(c) of Section 211 of the Companies Act, 1956.

(1.1.4) Additional Information pursuant to the provisions of part II of Schedule VI to the Companies Act, 1956 are Annexed separately.

(1.1.5) The Revised Schedule VI has become effective from 1st April 2011 for the preparation of financial statements. This has significantly impacted the disclosures & presentations made in the financial statements. Previous year''s figures have been regrouped/reclassified, wherever necessary, to correspond with the current year''s classifications/disclosures.


Mar 31, 2012

31st March 2012 31st March,2011 (Rs.) (Rs.)

(1.1.1) Contingent Liabilities not provided for

a. Letter of Guarantee issued by Union Bank of India

(secured by 100 % margin) 101,208 114,510

(secured by 10 % margin) 866,862 810,000

b. Capital Commitment for purchase of Machinery 22,867,775 2,506,000

(1.1.2) Value of import calculated on CIF basis :

Raw Material and Consumable goods 1,569,252 915,864

Capital goods 24,485,176 28,708,699

(1.1.3) Expenditure in foreign currency - Travelling 1,004,410 969,885

(1.1.4) Earning in foreign currency :

FOB value of Exports 666,563,588 383,644,815

(1.1.5) Bank Borrowings for Working Capital and Sundry Debtors include export bills aggregating to Rs. 1070.59 Lacs (Rs. 719.69 Lacs as on 31st March, 2011) purchased / discounted by the Bank but pending realization as on the date of the Balance Sheet.

(1.1.6) Sundry Debtors includes Rs. Nil (Previous Year Rs. 54.45 lacs) due from (M/s B.S.Metal Private Ltd., a company in which Key Managerial Personnel is a Director.)

(1.1.7) The credit for Minimum alternative Tax of Rs. 263.45 lacs has been recognized for the first time in financial year 2010-2011 in view of visibility of profitability, and the Company is covered under the provisions of Minimum Alternative Tax (MAT) and appropriate adjustments has been made the books as per the provisions of Section 115JAA of the Income Tax Act, 1961,during the year.

(1.1.8) The dues outstanding to Micro, Small and Medium Enterprises under Micro, Small and Medium Enterprises Development Act 2006, are based on the Information available with the company and this has been relied upon by the auditors and hence the disclosures as required under the said Act have not been given.

(1.1.9) The Company has duly complied with the Accounting Standards referred to in sub-section 3(c) of Section 211 of the Companies Act, 1956.

(1.1.10) Additional Information pursuant to the provisions of part II of Schedule VI to the Companies Act, 1956 are Annexed separately.

(1.1.11) The Revised Schedule VI has become effective from 1st April, 2011 for the preparation of financial statements. This has significantly impacted the disclosures & presentations made in the financial statements. Previous year’s figures have been regrouped/reclassified, wherever necessary to correspond with the current year’s classifications/disclosures.


Mar 31, 2011

31st March, 2011 31st March, 2010 (Rs.) (Rs.)

(1) Contingent Liabilities not provided for

a. Letter of Guarantee issued by Union 924,510 111,844 Bank of India (secured by 100 % margin)

b. Capital Commitment for purchase of 2,506,000 - Machinery

(2) a. Arrears of Dividend on 5,19,800, 10% Optionally Convertible Cumulative Redeemable Preference Shares of Rs. 100 each – Rs. 59,678,000 (Previous year Rs.54,480,000) plus applicable dividend distribution tax. Out of this a sum of Rs.128.96 lacs plus applicable dividend distribution tax is being paid in terms of resolution passed in Extra-Ordinary General Meeting held on 6th May, 2011.

b. It is proposed, subject to the approval of the Members and such other approvals, as may be deemed necessary, to redeem 5,19,800 10% Optionally Convertible Cumulative Redeemable Preference Shares (OCCRPS) of Rs. 100/- each, fully paid up, at a premium of Rs. 50/- per OCCRPS, as per the Agreement made with the holders of the OCCRPS, mainly out of the proceeds of Equity Shares and advance against Equity Warrants issued/ to be issued during the current year. As such, Shares Redemption Reserve has not been created.

(3)Sundry Debtors includes Rs- 54.45 lacs (Previous Year Rs.- 54.45 lacs) due from M/s - B.S.Metal Private Ltd., a Company in which Key Managerial Personnel is a Director.

(4)The Company is covered under the provisions of Minimum Alternative Tax (MAT) and has provided Income Tax in the books as per the provisions of Section 115JB of the Income Tax Act, 1961.

(5) b. Deferred Tax Assets / Liability has been worked out after considering the amount of unabsorbed depreciation and MAT credit available with the Company as on 31.03.2011.

(6)The dues outstanding to Micro, Small and Medium Enterprises under Micro, Small and Medium Enterprises Development Act 2006, are based on the information available with the company and hence the disclosures as required under the said Act have not been given.

(7)The Company has duly complied with the Accounting Standards referred to in sub-section 3(c) of Section 211 of the Companies Act, 1956.

(8)Additional Information pursuant to the provisions of part II of Schedule VI to the Companies Act, 1956 are Annexed separately.

(9)Previous years figures have been regrouped / recasted, wherever necessary, to conform to this years classification.


Mar 31, 2010

31st March, 2010 31st March, 2009 (Rs.) (Rs.)

(1) Contingent Liabilities not provided for

a) Letter of Guarantee issued by Union 111,844 554,252

Bank of India (secured by 100 % margin)

(2) Value of import calculated on CIF basis :

Raw material and consumable goods 4,545,329 2,834,304

Capital goods - 9,162,045

(3) Expenditure in foreign currency - Travelling 419,625 1,411,062

(4) Earning in foreign currency :

FOB value of Exports 228,717,277 507,479,971



(5) (a) The Company has extended the terms of redemption of 519800,10% Optionally Convertible Cumulative Redeemable Preference Shares of Rs. 100 each, which were due for redemption in 2 yearly installments of Rs. 25,990,000 each as on 31a March, 2010 and 31a March, 2011, by further period of 3 years and the same would now be redeemable in 2 equal yearly installment of Rs. 25,990,000 each on 31st March, 2013 and 31st March, 2014. (b) Arrears of dividend on 519800, 10% Optionally Convertible Cumulative Redeemable Preference Shares of Rs. 100 each - Rs. 54,480,000 (Previous year Rs.49,282,000).

(6) Related Party Disclosures { as identified and certified by the Management}

As per Accounting Standard 18 notified under the Companys (Accounting Standards) Rules, 2006, the disclosures of transactions with the related parties are given below:

(i) List of related parties where control exists and related parties with whom transactions have taken place and relationships:

(7)The Company is covered under the provisions of Minimum Alternative Tax (MAT) and has provided Income Tax in the books as per the provisions of Section 115JB of the Income Tax Act, 1961.

(8)(a)The tax effect of significant timing differences during the year that have resulted in deferred tax

(9)The Company has duly complied with the Accounting Standards referred to in sub-section 3(c) of Section 211 of the Companies Act, 1956.

(10)Previous years figures have been regrouped / recasted, wherever necessary, to conform to this years classification.