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.
Mar 31, 2011
1) Some of the balances of Sundry Debtors, Deposits, Loans & Advances,
Advances received from customers and Sundry Creditors 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.
2) The Company has amounts due to suppliers under The Micro, Small and
Medium Enterprise Development Act, 2006, (MSMED Act) as at 31ST March,
2011. 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 ÃMicro, Small and Mediumà Enterprises on
the basis of information available with the Company.
3) 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.
4) Sundry debit balances written off amounting to Rs. 1,080,856/- are
net of sundry credit balances written back amounting to Rs. 7,627,246/-
(in previous year sundry credit balance written back amounting to Rs.
2,697,956/- are net of sundry debit balances written off amounting to
Rs. 1,663,763/-)
5) Prior period adjustment (Net) amounting to Rs. 773,423/-(Cr.)
{Previous year Rs. 266,789/-(Cr.)} includes income of Rs.1,037,678/-
(Previous year Rs. 1,142,317/-) and expenses Rs. 264,255/- (Previous
year Rs. 875,528/-)
6) During the year, the Company has reviewed its fixed assets for
impairment loss as required by Accounting Standard 28 ÃImpairment of
AssetsÃ. In the opinion of management no provision for impairment loss
is considered necessary.
7) During the year 2008-09 search operation u/s. 132 of the Income Tax
Act, 1961 was carried out by the Income Tax Authorities on the Company
and the Company, based on professional advice, had declared undisclosed
income of Rs. 71,097,351/- to buy peace. The income tax liability
arising as a result of such declaration has been provided for in the
books of accounts in the said year. However, based on professional
advice, the penalty, if any, payable on the tax liability has so far
not been provided for as the same has not yet been quantified by the
Tax Authorities.
8) Related Party Disclosure:
Disclosure requirement as per Accounting Standard 18 (AS-18) "Related
Party Disclosure" issued by the Institute of Chartered Accountants of
India.
9) Initial Public Offer
During the current year, the Company has completed an Initial Public
Offer (IPO) of its 6,250,039 Equity Shares of Rs. 10/- each for cash at
a price of Rs. 110/- The premium of Rs. 100/- per share amounting to
Rs.625,003,900/- is credited to share premium account. Expenses
pertaining to the issue of shares amounting Rs.52,098,433/- after net
of tax of Rs.6,496,428/- i.e. Rs.45,602,005/- has been written off
against the balance available in share premium account in terms of
section 78 of the Companies Act, 1956.
Pursuant to the public issue, shares of the Company were listed on
Bombay Stock Exchange and National Stock Exchange with effect from
August 25, 2010.
10) Figures of the previous year have been re-grouped, re-classified
and re- arranged, wherever necessary.