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Notes to Accounts of Prakash Steelage Ltd.

Mar 31, 2015

1 Disclosure under Revised Accounting Standard 15 on Employee Benefits:

Consequent to Accounting Standard 15 "Employee Benefits" (Revised 2005) becoming effective, the Company has made the provision for Defined Contribution Plan and Defined Benefit Plan.

Defined Contribution Plan

During the year, the Company has recognized Rs. 3,489,560/- (Previous Year Rs. 3,500,521/- ) towards Provident Fund and Employees, State Insurance Corporation as Defined Contribution Plan Obligation.

Defined Benefit Plan Gratuity & Leave Encashment

Liability is computed on the basis of Gratuity & Leave Encashment payable on retirement, death and other withdrawals as per the Act and already accrued for past service, with the qualifying wages/salaries appropriately projected, as per the Projected Unit Credit Method.

2 Segment Reporting

The Company's operations predominantly relates to manufacturing and trading of "Stainless Steel Tubes & Pipes", Hence there is no separate reporting segment as per Accounting Standard 17 "Segment Reporting" as prescribed under section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014.

3 Related Party Disclosure

Disclosure requirement as per Accounting Standard 18 (AS-18) "Related Party Disclosure" as prescribed under section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014.

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.

4 Some of the balances of Trade Receivables, Deposits, Loans & Advances, Advances received from customers, Liability for expenses and Trade Payables are subject to confirmation from the respective parties and consequential reconciliation/adjustment arising there from, if any. The management, however, does not expect any material variation.

5 In the opinion of the Management, Current Assets, Loans & Advances are approximately of the value stated, if realized, in the ordinary course of business. The provision for all known and determined liability is adequate and not in the excess of the amount reasonably required.

6 Sundry balances (net) written off amounting to Rs. 20,010,323/- are net of sundry credit balances written back amounting to Rs.4,527,680/- (in previous year sundry balances (net) written off amounting to Rs. 31,326,734/- are net of sundry credit balances written back amounting to Rs.85,65,196/-)

7 Prior period adjustment (Net) amounting to Rs 35,805/- (credit) {Previous year Rs. 31,090/- (credit)} includes income of Rs. 37,864/- (Previous year Rs. 290,025/- ) and expenses Rs. 2,059/- (Previous year Rs.258,935/-).

8 During the year, the Company has written off Bad debts amounting to Rs.102,592,154/-. This being a material amount, the same has been shown as 'Exceptional Item' for the year. ('Exceptional Item' for the previous year ended 31st March, 2014 represents gain of Rs.17,500,000/- on account of forfeiture of advance due to cancellation of sale contract by the customer as per terms of contract.)

9 Discolosures of derivative instruments

The Company has entered into the following derivative instruments. All the forward contracts are accounted for as per Accounting Policies stated in Note 1(i) annexed to Balance Sheet and Statement of Profit and Loss.

The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations. The Company does not use forward contracts for speculative purposes.

10 During the year, pursuant to the notification of Schedule II to the Companies Act, 2013 with effect from 1 April, 2014, the Company has revised the useful life of its assets to the useful life specified in Schedule II whereas previously the Company was providing the depreciation on its fixed assets at the rates specified in Schedule XIV of the Companies Act, 1956. Accordingly, the carrying amount of the fixed assets as on 1st April, 2014 has been depreciated over the remaining revised useful life of the fixed assets. As a result, the depreciation charge for year ended 31st March, 2015 is higher by Rs.23,621,956/- and profit before tax year ended 31st March, 2015 is lower to the said extent. Further, based on the transitional provisions provided in note 7(b) of the Schedule II, fixed assets whose useful life has already been completed as on 1st April, 2014, the carrying value of those fixed assets amounting to Rs. 9,070,071/- and the corresponding deferred tax thereon amounting to Rs. 3,082,917/- have been debited and credited respectively to the opening balance of 'Retained Earnings'.

11 The Company has entered into a Joint Venture Agreement with Tubacex S. A. on February 13, 2015. Pursuant to the joint ventured agreement, the Company proposes to transfer its Seamless Stainless Steel Tubes and Pipes business (herein after referred as "seamless business" or "discontinued operations") to the new Joint Venture Company (JVC) (incorporated on April 22, 2015) at a net consideration of Rs. 209.16 crores and sell additional land measuring about 16,188 sq. metres for an additional consideration of about Rs.20 crores subject to fulfilment of various terms & condition based on which the execution of the business transfer agreement will take place. The JVC has been incorporated as a wholly owned subsidiary and subsequently the 67.53% of the shareholding in the JVC will be held by Tubacex S.A and 32.47% by the Company. The effect of the said transaction will be given on fulfilment of various terms and conditions of joint venture agreement.

The Company operates under a single business segment i.e. 'Stainless Steel Tubes & Pipes' within the meaning of Accounting Standard – 17 'Segment Reporting'. The transfer of the seamless business would involve transfer of assets and liabilities as are related to the seamless business and as the same are identified by the parties to the transaction. For this purpose, employees, tangible and intangible assets, current assets, market territories, other liabilities etc. are being identified as are related to the seamless business. In view of common employees, marketing expenses, operating expenses, finance cost, common customers, common suppliers, logistics & distribution arrangements and general corporate overheads, which are not separately identifiable for seamless business, the Company is unable to determine the income, expenses, assets and liabilities clearly attributable to the discontinued operations. As per the practice followed by the Company for preparation of its financial statements for financial reporting purposes, its present system of maintenance of books of account and other relevant records do not provide clearly identifiable details of income and expenditure as are related to the seamless business. Under the circumstances, the management is of the view that seamless business, a component of the enterprise, cannot be distinguished operationally and for financial reporting purposes and also in view of the fact that the binding agreement for the transfer of the seamless business is pending, the initial disclosures, namely total assets, total liabilities, revenue, expenses, net cash flows and pre-tax profit or loss in respect of the ordinary activities attributable to the discontinuing operation and the income tax expense related thereto pertaining to the discontinuing operations as required by Accounting Standard (AS) 24 'Discontinuing Operations' are not given.

12 The Company's pending litigations comprise of claims against the Company and proceedings pending with Statutory and Ta x Authorities. The Company has reviewed all its pending litigations and proceedings and has made adequate provisions, whenever required and disclosed the contingent liabilities, wherever applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a material impact on its financial position (Refer note no 28 for details on contingent liabilities).

13 The Company periodically reviews all its long term contracts including derivative contracts to assess for any material foreseeable losses. Based on such review, the Company has made adequate provisions for these long term contracts in the books of account as required under any applicable law/ accounting standard.

14 For the year ended march 31, 2015. the Company is not required to transfer any amount into the investor education & protection fund.

15 Disclosure in respect of Corporate Social Responsibility Expenditure ( CSR ) is as under. (a) Gross amount required to be spent by the company during the year is Rs 4,850,465/- (b) Amount spent during the year is Rs Nil

16 Disclosure pursuant to clause 32 of the Listing Agreement:

17 Details of loans given , Investments made and guarantee given covered u/s 186 (4) of the Companies Act, 2013:

Details of the loans are given in note 45 above and details of investment are given in note no 10 above.

18 During the previous year, Company had initiated the development of the "Industrial Park Project" on its idle land at Palgam (Umbergaon) and accordingly, it had converted the Land from Fixed Assets into Stock-in- Trade at lower of cost or net realizable value i.e. at cost of Rs. 88,18,164/-. It had passed a special resolution for including real estate business activities as one of the main object and obtained approval from shareholders. However, the Company could not alter the main object clause of memorandum and articles of association as the Registrar of the Companies (ROC) has approved the same subject to change of name of the Company in line with proposed new business. Accordingly, during the year, it has reconverted the Land from stock-in-trade to Fixed Assets.

19 During the previous year, Company has incorporated on 10th April, 2013, wholly-owned foreign subsidiary viz. Pioneer Stainless & Alloy - F.Z.C. at Ajman, United Arab Emirates for doing trade activities internationally in ferrous and non ferrous metal items.

20 Figures of the previous year have been re-grouped, re-classified and re-arranged, wherever necessary.


Mar 31, 2014

1 Earnings Per Share (EPS)

In accordance with Accounting Standard 20 - "Earning per Share" notified under Companies (Accounting Standard) Rules, 2006, (as amended) and relevant provisions of Companies Act, 1956 the required disclosure is given below:

The Company does not have any potential dilutive equity shares. Consequently, the basic and diluted earnings per share remain the same.

2 Disclosure under Revised Accounting Standard 15 on Employee Benefits:

Consequent to Accounting Standard 15 "Employee Benefits" (Revised 2005) becoming effective, the Company has made the provision for Defined Contribution Plan and Defined Benefit Plan.

Defined Contribution Plan

During the year, the Company has recognized Rs. 3,500,521/- (Previous Year Rs. 3,902,078/-) towards Provident Fund and Employees, State Insurance Corporation as Defined Contribution Plan Obligation.

Defined Benefit Plan

Gratuity & Leave Encashment

Liability is computed on the basis of Gratuity & Leave Encashment payable on retirement, death and other withdrawals as per the Act and already accrued for past service, with the qualifying wages/salaries appropriately projected, as per the Projected Unit Credit Method.

3 Segment Reporting

The Company''s operations predominantly relates to manufacturing and trading of "Stainless Steel Tubes & Pipes", and the revenue from Real Estate segment is yet to commence, there is no separate reporting segment as per Accounting Standard 17 "Segment Reporting" notified under the Companies (Accounting Standard) Rules, 2006.

4 Related Party Disclosure

Disclosure requirement as per Accounting Standard 18 (AS-18) "Related Party Disclosure" notified under Companies (Accounting Standard) Rules, 2006, (as amended) and relevant provisions of Companies Act 1956,

Related Parties Nature of relationship

M/s. Pioneer Stainless & Alloys F.Z.C. Subsidiary Company (w.e.f. 10th April, 2013)

M/s. Sunrise Metal Industries Enterprise of which key management person (Shri Prakash Kanugo) is proprietor

M/s. AMS Trading & Investments Pvt. Ltd. M/s. Seth Iron & Steel Pvt. Ltd. M/s. Seth Steelage Pvt. Ltd. Associates / Enterprises over which direcors and / or their relatives has significant influence M/s. PCK Metal Pvt. Ltd. M/s. Seth Carbon & Alloys Pvt. Ltd.

M/s. Prakash & Daga Infra Projects Pvt. Ltd.

M/s. Prakash C. Kanugo (HUF)

M/s. Ashok M. Seth (HUF)

M/s. Prakash Integrated Hi-Tech Steel And Metal Cluster Private Limited

M/s. Chandan and Kanugo Land Developer

M/s. Hemant & Co.

M/s. Prakash Land Developer

M/s. Hemant P Kanugo ( HUF )

M/s Vimal P Kanugo ( HUF )

Shri Prakash C. Kanugo, Chairman & Managing Director

Shri Ashok M. Seth, Executive Director Key Management Personnel

Shri Hemant P. Kanugo, Whole Time Director

Shri Kamal P. Kanugo , Whole Time Director

Smt. Babita P. Kanugo

Shri Vimal P. Kanugo

Shri Kirti P. Kanu o Relatives of Key Management Personnel

Smt. Ekta H. Kanugo

Note: Related Party Relationships have been identified by the management and relied upon by the Auditors.

5 Contingent Liabilities

31st March 31st March 2014 In Rs 2013 In Rs

Contingent liabilities not provided for in respect of:

(a) Guarantees given by the bankers of the company 43,665,328 48,226,175

(b) Sales Tax demands disputed in appeals 15,459,374 448,879

(c) Letter of Credit - 16,104,672

(d) Gujarat Commercial Tax Penalty - 234,581

(e) Central Sales Tax Liability towards pending declaration forms 29,811,068 7,594,259

(f) Disputed Excise Duty Rebate Claim 551,080 551,080

(g) Disputed CENVAT Credit 3,599,712 3,599,712

(h) Commitment towards development work for Industrial Park Project 85,000,000 -

6 Details of dues to micro, small and medium enterprises as defined under the MSMED Act, 2006

The Company has amounts due to suppliers under The Micro, Small and Medium Enterprise Development Act, 2006, (MSMED Act) as at 31st March, 2014. The disclosure pursuant to the said Act is as under:

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.

7 Some of the balances of Trade Receivables, Deposits, Loans & Advances, Advances received from customers, Liability for expenses and Trade Payables are subject to confirmation from the respective parties and consequential reconciliation/adjustment arising there from, if any. The management, however, does not expect any material variation.

8 In the opinion of the Management, Current Assets, Loans & Advances are approximately of the value stated, if realized, in the ordinary course of business. The provision for all known and determined liability is adequate and not in the excess of the amount reasonably required.

9 Sundry balances (net) written off amounting to Rs. 31,326,734/- are net of sundry credit balances written back amounting to Rs.85,65,196/- (in previous year sundry credit balance written back amounting to Rs. 9,284,930/- are net of sundry debit balances written off amounting to Rs.4,653,705/-)

10 Prior period adjustment (Net) amounting to Rs 31,090/- (credit) {Previous year Rs. 1,100,001/-(debit)} includes income of Rs. 290,025/- (Previous year Rs. 130,807/- ) and expenses Rs. 258,935/- (Previous year Rs.1,230,808/-).

11 Exceptional item represents gain of Rs.1,75,00,000/- on account of forfeiture of advance due to cancellation of sale contract by the customer as per terms of contract.

12 Disclosures of derivative instruments

The Company has entered into the following derivative instruments. All the forward contracts are accounted for as per Accounting Policies stated in Note 1(i) annexed to Balance Sheet and Statement of Profit and Loss.

The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations. The Company does not use forward contracts for speculative purposes.

13 Company has initiated the development of the "Industrial Park Project" on its idle land at Palgam (Umbergaon) and accordingly, the Company has converted the Land into Stock-in-Trade at lower of cost or net realizable value i.e. at cost of Rs. 88,18,164/-.

14 During the year, Company has incorporated on 10th April, 2013, wholly-owned foreign subsidiary viz. Pioneer Stainless & Alloy - F.Z.C. at Ajman, United Arab Emirates for doing trade activities internationally in ferrous and non ferrous metal items.

15 Figures of the previous year have been re-grouped, re-classified and re-arranged, wherever necessary.


Mar 31, 2013

1 Disclosure under Revised Accounting Standard 15 on Employee Benefits:

Consequent to Accounting Standard 15 "Employee Benefits" (Revised 2005) becoming effective, the Company has made the provision for Defined Contribution Plan and Defined Benefit Plan.

Defined Contribution Plan

During the year, the Company has recognized Rs. 1,493,963/- (Previous Year Rs. 1,408,812/-) towards Provident Fund and Employees, State Insurance Corporation as Defined Contribution Plan Obligation.

Defined Benefit Plan Gratuity & Leave Encashment

Liability is computed on the basis of Gratuity & Leave Encashment payable on retirement, death and other withdrawals as per the Act and already accrued for past service, with the qualifying wages/salaries appropriately projected, as per the Projected Unit Credit Method.

2 Segment Reporting

The Company''s operations predominantly relates to manufacturing and trading of "Stainless Steel Tubes & Pipes", Hence there is no separate reporting segment as per Accounting Standard 17 "Segment Reporting" notified under the Companies (Accounting Standard) Rules, 2006.

3 Related Party Disclosure

Disclosure requirement as per Accounting Standard 18 (AS-18) "Related Party Disclosure" notified under Companies (Accounting Standard) Rules, 2006, (as amended) and relevant provisions of Companies Act 1956,

4 Contingent Liabilities

31st March, 2013 31st March, 2012 In Rs. In Rs.

Contingent liabilities not provided for in respect of:

(a) Guarantees given by the bankers of the company 48,226,175 114,170,699

(b) Sales Tax demands disputed in appeals 448,879 489,346

(c) Letter of Credit 16,104,672 3,576,074

(d) Gujarat Commercial Tax Penalty 234,581 234,581

(e) Central Sales Tax Liability towards pending declaration forms 7,594,259 2,828,568

5 Details of dues to micro, small and medium enterprises as defined under the MSMED Act, 2006

The Company has amounts due to suppliers under The Micro, Small and Medium Enterprise Development Act, 2006, (MSMED Act) as at 31st March, 2013. The disclosure pursuant to the said Act is as under:

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.

6 Some of the balances of Trade Receivables, Deposits, Loans & Advances, Advances received from customers, Liability for expenses and Trade Payables are subject to confirmation from the respective parties and consequential reconciliation/adjustment arising there from, if any. The management, however, does not expect any material variation.

7 In the opinion of the Management, Current Assets, Loans & Advances are approximately of the value stated, if realized, in the ordinary course of business. The provision for all known and determined liability is adequate and not in the excess of the amount reasonably required.

8 Sundry credit balances written back amounting to Rs. 9,284,930/- are net of sundry debit balances written off amounting to Rs.4,653,705/- (in previous year sundry credit balance written back amounting to Rs.1,511,517/- are net of sundry debit balances written off amounting to Rs.3,974,001/-)

9 Prior period adjustment (Net) amounting to Rs 1,100,001/-(debit) {Previous year Rs. 1,598,251/-(debit)} includes income of Rs. 130,807/- (Previous year Rs. 1,134,791/- ) and expenses Rs. 1,230,808/- (Previous year Rs.2,733,042/-).

10 Disclosures of derivative instruments

The Company has entered into the following derivative instruments. All the forward contracts are accounted for as per Accounting Policies stated in Note 1(i) annexed to Balance Sheet and Statement of Profit and Loss.

The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations. The Company does not use forward contracts for speculative purposes.

11 Subsequent to the balance sheet date, on 10th April, 2013, the Company has incorporated wholly-owned foreign subsidiary viz. Pioneer stainless & alloy- F.Z.E. at United Arab Emirates.

12 Figures of the previous year have been re-grouped , re-classified and re-arranged, wherever necessary.


Mar 31, 2012

A) Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs.10/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

The Board of Directors, in their meeting on 28th May, 2012, proposed a final dividend of Re.1 per equity share. The proposal is subject to the approval of shareholders at the Annual General Meeting to be held on 14th August, 2012. The total dividend appropriation for the year ended 31st March, 2012 amounted to Rs.1,75,00,039/- excluding corporate dividend tax of Rs.28,38,944/-.

During the year ended 31st March, 2011, the amount of final dividend recognized as distributions to equity shareholders was Re.1 per equity share. The total dividend appropriation for the year ended 31st March, 2011 amounted to Rs.1,75,00,039/- excluding corporate dividend tax of Rs.28,38,944/-.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in the proportion to the number of equity shares held by the shareholders.

a) Foreign currency loan from Bank (secured) carries interest @ LIBOR 1.5 % p.a. The loan is repayable in 9 half yearly installment of USD 388,888.88 each along with interest, from the date of loan, viz., 16th March, 2007. The loan is secured by way of mortgage of factory land & building and hypothecation of plant & machinery of Company at Umbergaon. (First pari passu charges between ICICI Bank & Vijaya Bank ) further it is also secured by mortgage of residential flat at Tardeo Tower, Mumbai belonging to Director and his relatives and by personal guarantee of three Directors).

b) Indian rupee loan from Bank (secured) carries interest @BPLR 0.50 % 0.25 % which was 14.50 % to 15.75 % p.a. The loan is repayable in 84 monthly installments of Rs 14,57,764/- each along with interest from the date of loan, viz., 10th July, 2008 the loan is secured by way of mortgage of factory land & building, and hypothecation of plant & machinery of Company at Umbergaon. (First pari passu charges between ICICI Bank & Vijaya Bank )

c) i) Vehicle loans from Banks (secured) carries interest in the range of 7.50% p.a. to 12.50% p.a. All the loans are repayable in 34 - 36 monthly installments from the date of disbursement. These loans are secured against hypothecation of specific capital assets i.e. Motor Cars and Post Dated Cheques for Principal & Interest payable thereon.

ii) Vehicle loan from NBFC (secured) carries interest of approximately 11.50% p.a. The loan is repayable in 34 monthly installments from the date of disbursement and is secured against hypothecation of specific capital asset i.e. Motor Car and Post Dated Cheques for Principal & Interest payable thereon.

Cash Credit from Banks (Secured) are repayable on demand and carries interest @ 12% to 16% p.a., Buyers Credit (Secured) represents Foreign Currency Buyers Credit from various Banks. The said facility is repayable on demand. These loans carries interest ranging from 2 % to 4.25% p.a., Export Packing Credit from Banks (Secured) are for a tenor of maximum up to 180 days and the rate of interest is Margin LIBOR i.e. approximately 4% to 4.5% p.a. and Bill Discounting from Banks (Secured) represents bill discounted with various banks. The tenor of the loan is in the range of 60 - 120 days and the rate of interest (local bill discounting) is 13.25% p.a. to 14.25% p.a. and rate of interest (foreign bill discounting) is in the range of 3.80% to 4.50% p.a., All these loans are secured by Hypothecation of Stock of Raw Material, Stock-in-process, Finished Goods, book debts (both present and future), Receivables and Collateral security in the form of Land, Building and on the entire Fixed Assets at Silvassa (First Pari Passu charges between Vijaya Bank, ICICI Bank, Bank of Baroda, The Royal Bank of Scotland and Standard Chartered Bank) and collateral security in the form of Land & Building and entire Fixed Assets at Umergaon (Second Pari Passu charges between Vijaya Bank, ICICI Bank, Bank of Baroda , The Royal Bank of Scotland and Standard Chartered Bank) and first pari-passu charge on office premises no 101 & 102 at Islampura Street, at Mumbai and 701, Mahalaxmi chambers, at Mumbai belonging to Director and his relatives and Personal Guarantee of three Directors and their relatives.

Cash Credit from Bank (Unsecured) carries interest approximately 14% p.a. The interest is payable at monthly rests, Buyers Credit (Unsecured) represents Foreign Currency Buyers Credit from various Banks. The said facility is repayable on demand & carries interest ranging from 2% to 4.25% p.a., Working capital loan from Bank (Unsecured) is availed for meeting working capital requirements of the company. The maximum tenor of the loan is 180 days and rollover is permitted after cooling period 3 days. The current rate of interest is 12.75% p.a. The interest is payable monthly at the end of each month / at the end of closure of the loan transaction, Export Packing Credit (Unsecured) availed from a Bank carries interest approximately 2.25% p.a. The interest is payable at monthly rests, Bill Discounting from Bank (Unsecured) represents export bills discounted with a bank. The tenor of the loan is in the range of 60 to 120 days and the rate of interest is approximately 3.50% p.a. and Bill Discounting from a NBFC (Unsecured) is availed from a finance company. The tenor of the loan is 90 days and the rate of interest is 13.25% p.a.

1 Disclosure under Revised Accounting Standard 15 on Employee Benefits:

Consequent to Accounting Standard 15 "Employee Benefits" (Revised 2005) becoming effective, the Company has made the provision for Defined Contribution Plan and Defined Benefit Plan.

Defined Contribution Plan

During the year, the Company has recognized Rs. 3,574,023/- (Previous Year Rs. 2,774,399/-) towards Provident Fund and Employees, State Insurance Corporation as Defined Contribution Plan Obligation.

Defined Benefit Plan Gratuity & Leave Encashment

Liability is computed on the basis of Gratuity & Leave Encashment payable on retirement, death and other withdrawals as per the Act and already accrued for past service, with the qualifying wages/salaries appropriately projected, as per the Projected Unit Credit Method.

2 Segment Reporting

The Company's operations predominantly relates to manufacturing and trading of "Stainless Steel Tubes & Pipes", Hence there is no separate reporting segment as per Accounting Standard 17 "Segment Reporting" notified under the Companies (Accounting Standard) Rules, 2006.

3 Related Party Disclosure

Disclosure requirement as per Accounting Standard 18 (AS-18) "Related Party Disclosure" notified under Companies (Accounting Standard) Rules, 2006, (as amended) and relevant provisions of Companies Act 1956,

4 Contingent Liabilities

31st March, 2012 31** March, 2011

In Rs. In Rs.

Contingent liabilities not provided for in respect of:

a) Guarantees given by the bankers of the company 114,170,699 26,002,411

b) Sales Tax demands disputed in appeals 479,346 3,926,267

c) Letter of Credit 933,943,287 442,266,854

d) Gujarat Commercial Tax Penalty 234,581 234,581

5 Utilization of money raised through public issue

During previous year, the Company came out with Initial Public Offer (IPO) of its Equity Shares aggregating Rs.687,504,290/- and the same were listed on the Bombay Stock Exchange Limited (BSE) and the National Stock Exchange of India Limited (NSE). Out of amount debited to share premium account of Rs.45,602,005/- (net of tax) in the financial year 2010-11, expenses of Rs.924,174/- pertaining to the issue of shares has been written back during the year as the same is no longer payable. Further during the year, the tax impact of Rs.1,410,392/- has been credited to share premium account on claim amounting to Rs.4,347,025/- under section 35D of Income Tax Act, 1961, on completion of pending cost of projects. Details of utilization of funds received from IPO of Equity Shares are as under:

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.

6 Some of the balances of Trade Receivables, Deposits, Loans & Advances, Advances received from customers, Liability for expenses and Trade Payables are subject to confirmation from the respective parties and consequential reconciliation/adjustment arising there from, if any. The management, however, does not expect any material variation.

7 In the opinion of the Management, Current Assets, Loans & Advances are approximately of the value stated, if realized, in the ordinary course of business. The provision for all known and determined liability is adequate and not in the excess of the amount reasonably required.

8 Sundry credit balances written back amounting to Rs.1,511,517/- are net of sundry debit balances written off amounting to Rs.3,974,001/- (in previous year sundry debit balance written off amounting to Rs.1,080,856/- are net of sundry credit balances written back amounting to Rs.7,627,246/-)

9 Prior period adjustment (Net) amounting to Rs. 1,598,251/-(debit) {Previous year Rs. 773,423/-(credit)} includes income of Rs.1,134,791/- (Previous year Rs. 1,037,678/-) and expenses Rs. 2,733,042/- (Previous year Rs.264,255/-)

10 During the year ended 31st March, 2012, the Revised schedule VI notified under The Companies Act 1956, has become applicable to the Company, for presentation and preparation of its financial statement. The adoption of revised schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impacts on presentation and disclosure made in the financial statements. The Company has also reclassified the previous year figure in accordance with the requirements applicable in the current year.

 
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