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Notes to Accounts of Rama Steel Tubes Ltd.

Mar 31, 2015

Note No.1 Contingent Liabilities

Contingent inability not provided for in respect of:

a) Bank Guarantees of Rs.1751.10l_acs{PrevtousyearRs.1812.01 Lacs).

b) Bills Discounted ofRs.111.63 Lacs (Previous YearRs.Nil)

c) Accrued Liability for Leave Encashment of Rs.3.94 Lacs (Previous Year Rs.3.39 Lacs)

d) Accrued Liability for Gratuity Outstanding of Rs.44.78 Lacs (Previous Year Rs.39.14 Lacs)

e) Outstanding letters of credit amounting to Rs. 125.00 Lacs. (Previous year Rs. 125.00 Lacs)

f) Entry Tax Payable Rs.111.42 Lacs (Previous Year Rs.111.42 Lacs)

g) Corporate Guarantees of Rs.3000.00 Lacs (previous Year Rs.3000) given to Union Bank of India on account of Bank Guarantees furnished by Union Bank of India to the Jammu & Kashmir Govt towards contracts awarded to M/s Pir Panchal Construction Pvt.Ltd., Joint Venture, an association of person, in which our company is one of the participant.

Note No. 2: Depreciation

During the year, pursuant to the notification of Schedule II to the Companies Act, 2013 with effect from April 1,2014, the Company revised the estimated useful life of some of its assets to align the useful life with those specified in Schedule II. Further, assets individually costing Rs. 5,000/- or less that were depreciated fully in the year of purchase are now depreciated based on the useful life considered by the Company for the respective category of assets. The details of previously applied depreciation method, rates/ useful life are as follows:

Note No.3

a) During the Year 2011-12, the Petition filed by the company, challenging the Entry Tax (on Purchases) imposed by U.P VAT Authorities, was rejected by the Hon'ble High Court of Allahabad, holding the imposition of Entry Tax as lawful. The verdict of the hon'ble Court accrued Entry Tax Liability amounting to Rs.2,21,36,566/- upon the Company towards the UP Commercial Taxes Department. But the Company filed a petition in the hon'ble Supreme Court challenging the verdict of Allahabad High Court. Further in accordance with the directions of the hon'ble Supreme Court, the Company has paid a sum of Rs. 1,11,41,669/-to the Department and gave the Bank Guarantee for the balance amount of Rs. 1.09,94,897/-. The Case is still pending in the Court of Law. As the Company was of the opinion that eventually no liability shall accrue to the company on this issue, it did not provide for this Entry Tax Liability on Purchases intheYear2011-12.

b) The Company has filed civil suit for Rs. 45,35,667/-, against one of its debtor for recovery of dues in respect of goods supplied to them against LCs. The matter is pending in Delhi High Court

Note No.4

None of the employees was in receipt of remuneration in excess of Rs.60,00,000 p.a. or Rs,5,00,000 p.m. if employed for part of the year as prescribed under section 217 (2) (A) of the Companies Act, 1956.

Note No.5 Segment Reporting (AS-17)

The Company is primarily engaged in the business of manufacture and sate of steel Tube/Pipes and its revenue from trading segment is not significant. As such the accounting standard on segment reporting is not applicable

Note No.6 Related Party Disclosures (AS 18)

Related Parties with whom transaction have taken place during the year and balances outstanding as on the last day of the year; A. List of Related Parties

Enterprises over which Key Management Personnel (KMP) and Relatives of such personnel exercise significant control

1. M/s Advance Hightech Agro Products Pvt. Ltd

2. M/s Ravi Developers Pvt. Ltd.

3. M/s Gujarat Hi-Tech Steel Pvt. Ltd.

4. M/sHarbansLal(HUF)

5. M/sNareshKumar&Sons(HUF)

6. M/s Rich! Bansal (HUF)

7. M/sSwastika Industries

Key Management Personnel

1. Mr. Naresh Kumar Bansal

2. Mr. Richi Bansal

3. Mr.Surender Kumar Sharma

Relatives of Key Manangement Personnel

1. Ms. Kumud Bansal

2. Ms. Krati Bansal

3. Mr. Nikhil Bansal

4. Master Ishaan Bansal

5. Ms.ReetaRani

6. Ms.Parveen Bansal

7. Ms.Kanika Bansal

Note No.7

The outstanding balances of Sundry Debtors/Creditors in the books of the company are subject to confirmation.

Note No.8

Long Term Loans & Advances vide Note No. 12 include Advances against Capital Account of Rs, 17,92,025/- given as Advance against Mumbai Land Development. The aforesaid Land is in the name of the company.

Note No.9

On the basis of information available with the company, it does not owe any outstanding dues towards Small Scale Industrial Undertaking amended Schedule VI of the companies Act, 1956 vide Notification NO. GSR 129 (E) dated 22.02.99, in case the sum owned is Rs. 1.00 Lac or more which is outstanding for more than 30 days as at 31st March, 2015.

Note No.10

On the basis of information available with the company, the Company does not have any amounts due to suppliers under the Micro, Small and Medium Enterprises covered under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) as at 31st March 2015.

NoteNo.11

Amounts except number of shares and earnings per share are rounded Of to the nearest rupees.

Note No.12

The figures of previous year have been regrouped / rearranged wherever considered necessary.

Note No.13

Significant accounting policies and practices adopted by the company are disclosed in the Note No.1 annexed to these financial statements,


Mar 31, 2014

1. Contingent liability not provided for in respect of :

a) Bank Guarantees of Rs.1812.01 Lacs (Previous year Rs.1272.45 Lacs).

b) Bills Discounted of Rs.Nil (Previous Year Rs. 62.09 Lacs)

c) Accrued Liability for Leave Encashment of Rs. 3.39 Lacs (Previous Year Rs. 4.38 Lacs)

d) Accrued Liability for Gratuity Outstanding of Rs. 39.14 Lacs (Previous Year Rs. 33.36 Lacs)

e) Outstanding letters of credit amounting to Rs. 125.00 Lacs. (Previous year Rs. 125.00 Lacs)

f) Entry Tax Payable Rs.111.42 Lacs (Previous Year Rs.111.42 Lacs

g) Corporate Guarantees of Rs. 3000.00 Lacs (previous Year Rs. 3000) given to Union Bank of India on account of Bank Guarantees furnished by Union Bank of India to the Jammu & Kashmir Govt towards contracts awarded to M/s Pir Panchal Construction Pvt.Ltd., Joint Venture, an association of person, in which our company is one of the participant.

2.a) During the Year 2011-12, the Petition filed by the company, challenging the Entry Tax (on Purchases) imposed by U.P VAT Authorities, was rejected by the Hon'ble High Court of Allahabad, holding the imposition of Entry Tax as lawful. The verdict of the hon'ble Court accrued Entry Tax Liability amounting to Rs. 2,21,36,566/- upon the Company towards the UP Commercial Taxes Department. But the Company filed a petition in the hon'ble Supreme Court challenging the verdict of Allahabad High Court. Further in accordance with the directions of the hon'ble Supreme Court, the Company has paid a sum of Rs. 1,11,41,669/- to the Department and gave the Bank Guarantee for the balance amount of Rs. 1,09,94,897/-. The Case is still pending in the Court of Law. As the Company was of the opinion that eventually no liability shall accrue to the company on this issue, it did not provide for this Entry Tax Liability on Purchases in the Year 2011-12..

b) The Company has filed civil suit for Rs. 45,35,667/- , against one of its debtor for recovery of dues in respect of goods supplied to them against LCs. The matter is pending in Delhi High Court

3. None of the employees was in receipt of remuneration in excess of Rs. 60,00,000 p.a. or Rs. 5,00,000 p.m. if employed for part of the year as prescribed under section 217 (2) (A) of the Companies Act, 1956.

4. Segment Reporting (AS-17)

The Company is primarily engaged in the business of manufacture and sale of steel Tube/Pipes and its revenue from trading segment is not significant. As such the accounting standard on segment reporting is not applicable.

5. Related Party Disclosures (AS 18)

Related Parties with whom transaction have taken place during the year and balances outstanding as on the last day of the year;

A. List of Related Parties

Enterprises over which Key Management Personnel (KMP) and Relatives of such personnel exercise significant control

1. M/s Advance Hightech Agro Proucts Pvt. Ltd

2. M/s Ravi Developers Pvt. Ltd.

3. M/s Gujarat Hi-Tech Steel Pvt. Ltd.

4. M/s Harbans Lal (HUF)

5. M/s Naresh Kumar & Sons (HUF)

6. M/s Richi Bansal

7. M/s Swastika Industries

Key Management Personnel

1. Mr. Naresh Bansal

2. Mr. Richi Bansal

3. Mr.Surender Kumar Sharma

Relatives of Key Manangement Personnel

1. Ms. Kumud Bansal

2. Ms. Krati Bansal

3. Mr. Nikhil Bansal

4. Master Ishaan Bansal

5. Ms. Reeta Rani

6. Ms.ParveenBansal

7. Ms.Kanika Bansal

The outstanding balances of Sundry Debtors/Creditors in the books of the company are subject to confirmation.

6. Long Term Loans & Advances vide Note No.11 include Advances against Capital Account of Rs.12,92,025/- given as Advance against Mumbai Land Development. The aforesaid Land is in the name of the company.

7. On the basis of information available with the company, it does not owe any outstanding dues towards Small Scale Industrial Undertaking amended Schedule VI of the companies Act, 1956 vide Notification NO. GSR 129 (E) dated 22.02.99, in case the sum owned is Rs. 1.00 Lac or more which is outstanding for more than 30 days as at 31st March, 2014.

On the basis of information available with the company, the Company does not have any amounts due to suppliers under the Micro, Small and Medium Enterprises covered under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) as at 31st March 2014.

8. Amounts except number of shares and earnings per share are rounded off to the nearest rupees.

9. The figures of previous year have been regrouped / rearranged wherever considered necessary.

10. Significant accounting policies and practices adopted by the company are disclosed in the statement annexed to these financial statements as Annexure 1.




Mar 31, 2013

Contingent liability not provided for in respect of :

a) Bank Guarantees of Rs.1272.45 Lacs (Previous year Rs.767.46 Lacs).

b) Bills Discounted of Rs.61.09 Lacs (Previous Year Rs.54.86 Lacs)

c) Accrued Liability for Leave Encashment of Rs.4.38 Lacs (Previous Year Rs.2.58 Lacs)

d) Accrued Liability for Gratuity Outstanding of Rs.33.36 Lacs (Previous Year Rs.28.90 Lacs)

e) Outstanding letters of credit amounting to Rs.125.00 Lacs. (Previous year Rs.125.00 Lacs)

f) Entry Tax Payable Rs.111.42 Lacs (Previous Year Rs.111.42 Lacs)

g) Corporate Guarantees of Rs.3000.00 Lacs (previous Year NIL) given to Union Bank of India on account of Bank Guarantees furnished by Union Bank of India to the Jammu & Kashmir Govt towards contracts awarded to M/s Pir Panchal Construction Pvt.Ltd., Joint Venture, an association of person, in which our company is one of the participant.

Note No.2

a) During the Year 2011-12, the Petition filed by the company, challenging the Entry Tax (on Purchases) imposed by U.P VAT Authorities, was rejected by the Hon''ble High Court of Allahabad, holding the imposition of Entry Tax as lawful. The verdict of the hon''ble Court accrued Entry Tax Liability amounting to Rs.2,21,36,566/- upon the Company towards the UP Commercial Taxes Department. But the Company filed a petition in the hon''ble Supreme Court challenging the verdict of Allahabad High Court. Further in accordance with the directions of the hon''ble Supreme Court, the Company has paid a sum of Rs.1,11,41,669/- to the Department and gave the Bank Guarantee for the balance amount of Rs.1,09,94,897/-. The Case is still pending in the Court of Law. As the Company was of the opinion that eventually no liability shall accrue to the company on this issue, it did not provide for this Entry Tax Liability on Purchases in the Year 2011-12.

b) The company filed one civil suit against MPSEB, JABLAPUR for cancellation of Bank Guarantee invoked by MPSEB, JABLAPUR amounting to Rs. 9,41,700/- in the civil court Jabalpur. The Suit has been decided in favour of the Company against which MPSEB has preferred Appeal. As such the Case is still subjudice. The company is of the view that it would get favourable verdict and no demand would be eventually sustained in any of the pending matters. Accordingly, no provision is made in the books in respect of these contingent liabilities.

c) The Company has filed civil suit for Rs. 45,35,667/- , against one of its debtor for recovery of dues in respect of goods supplied to them against LCs. The matter is pending in Delhi High Court

Note No.3

None of the employees was in receipt of remuneration in excess of Rs.24,00,000 p.a. or Rs.2,00,000 p.m. if employed for part of the year as prescribed under section 217 (2) (A) of the Companies Act, 1956.

Note No.4 Disclosure regarding computation of EPS in accordance with AS-20

Note No.5 Segment Reporting (AS-17)

The Company is primarily engaged in the business of manufacture and sale of steel Tube/Pipes and its revenue from trading segment is not significant. As such the accounting standard on segment reporting is not applicable.

Related Parties with whom transaction have taken place during the year and balances outstanding as on the last day of the year;

A. List of Related Parties

Enterprises over which Key Management Personnel (KMP) and Relatives of such personnel exercise significant control

1. M/s Advance Hightech Agro Products Pvt. Ltd

2. M/s Ravi Developers Pvt. Ltd.

3. M/s Gujarat Hi-Tech Steel Pvt. Ltd.

4. M/s Harbans Lal (HUF)

5. M/s Naresh Kumar & Sons (HUF)

Key Management Personnel

1. Mr. Naresh Bansal

2. Mr. Richi Bansal

3. Mr.Surender Kumar Sharma

Relatives of Key Manangement Personnel

1. Ms. Kumud Bansal

2. Ms. Krati Bansal

3. Mr. Nikhil Bansal

4. Master Ishaan Bansal

5. Ms. Reeta Rani

6. Ms. Parveen Bansal

Long Term Loans & Advances vide Note No.11 include Advances against Capital Account of Rs.21,61,225/- given as Advance against Mumbai Land Development. The aforesaid Land is in the name of the company.

Note No.6

On the basis of information available with the company, it does not owe any outstanding dues towards Small Scale Industrial Undertaking amended Schedule VI of the companies Act, 1956 vide Notification NO. GSR 129 (E) dated 22.02.99, in case the sum owned is Rs. 1.00 Lac or more which is outstanding for more than 30 days as at 31st March, 2013.

Note No.7

On the basis of information available with the company, the Company does not have any amounts due to suppliers under the Micro, Small and Medium Enterprises covered under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) as at 31st March 2013.

Note No.8

Amounts except number of shares and earnings per share are rounded off to the nearest rupees.

Note No.9

The figures of previous year have been regrouped / rearranged wherever considered necessary.

Note No.10

Significant accounting policies and practices adopted by the company are disclosed in the statement annexed to these financial statements as Annexure 1.


Mar 31, 2012

1. Contingent liability not provided for in respect of :

a) Bank Guarantees of Rs.767.46 Lacs (Previous year Rs.862.82 Lacs).

b) Bills Discounted of Rs.54.86 Lacs (Previous Year Rs.301.05 Lacs)

c) Leave Encashment of Rs.2.58 Lacs (Previous Year Rs.1.92 Lacs)

d) Accrued Liability in respect of Gratuity Outstanding of Rs.28.90 Lacs (Previous Year Rs.25.70 Lacs)

e) Outstanding letters of credit amounting to Rs.125.00 Lacs. (Previous year Rs.125.00 Lacs)

f) Entry Tax Payable Rs.111.42 Lacs (Previous Year NIL)

g) Corporate Guarantees of Rs.3000.00 Lacs (previous Year NIL) given to Union Bank of India on account of Bank Guarantees furnished by Union Bank of India to the Jammu & Kashmir Govt on account of contracts awarded to M/s Pir Panchal Construction Pvt.Ltd., Joint Venture, an association of person, in which our company is one of the participant.

2. During the Year the Petition filed by the company, challenging the Entry Tax (on Purchases) imposed by U.P VAT Authorities, was rejected by the Hon'ble High Court of Allahabad, holding the imposition of Entry Tax as lawful. The verdict of the hon'ble Court accrued Entry Tax Liability amounting to Rs.2,21,36,566/- upon the Company towards the UP Commercial Taxes Department. The Company has filed a petition in the hon'ble Supreme Court challenging the verdict of Allahabad High Court. Further in accordance with the directions of the hon'ble Supreme Court, the Company has paid a sum of Rs.1,11,41,669/- to the Department and gave the Bank Guarantee for the balance amount of Rs.1,09,94,897/-. The Case is still pending in the Court of Law. As the Company is of the opinion that eventually no liability shall accrue to the company on this issue, it did not provide for this Entry Tax Liability on Purchases (Previous Year NIL).

(A) The company filed one civil suit against MPSEB, JABLAPUR for cancellation of Bank Guarantee invoked by MPSEB, JABLAPUR amounting to Rs. 9,41,700/- in the civil court Jabalpur. The Suit has been decided in favour of the Company against which MPSEB has preferred Appeal. As such the Case is still subjudice. The company is of the view that it would get favourable verdict and no demand would be eventually sustained in any of the pending matters. Accordingly, no provision is made in the books in respect of these contingent liabilities.

(B)The Company has filed civil suit for Rs. 45,35,667/- , against one of its debtor for recovery of dues in respect of goods supplied to them against LCs. The matter is pending in Delhi High Court.

3. None of the employees was in receipt of remuneration in excess of Rs.24,00,000 p.a. or Rs.2,00,000 p.m. if employed for part of the year as prescribed under section 217 (2) (A) of the Companies Act, 1956.

4. The Company is primarily engaged in the business of manufacture and sale of steel Tube/Pipes and its revenue from trading segment is not significant. As such the accounting standard on segment reporting is not applicable.

Related Parties with whom transaction have taken place during the year and balances outstanding as on the last day of the year;

5. List of Related Parties

Enterprises over which Key Management Personnel (KMP) and Relatives of such personnel exercise significant control

1. M/s Advance Hightech Agro Products Pvt. Ltd.

2. M/s Hi Tech Pipes Ltd.

3. M/s Harso Steels Pvt. Ltd.

4. M/s Ravi Developers Pvt. Ltd.

5. M/s Gujarat Hi-Tech Steel Pvt. Ltd.

6. M/s Harbans Lal (HUF)

7. M/s Naresh Kumar & Sons (HUF)

8. M/s Richi Bansal (HUF)

Key Management Personnel

1. Mr. Naresh Bansal

2. Mr. Richi Bansal

3. Mr.Subhash Chander Khurana

Relatives of Key Manangement Personnel

1. Ms. Kumud Bansal

2. Ms. Krati Bansal

3. Mr. Nikhil Bansal

4. Master Ishaan Bansal

5. Ms. Reeta Rani

6. Ms. Parveen Bansal

6. The outstanding balances of Sundry Debtors/Creditors in the books of the company are subject to confirmation.

7. Long Term Loans & Advances vide Note No.11 include Advances against Capital Account of Rs.21,61,225/- given as Advance against Mumbai Land Development. The aforesaid Land is in the name of the company.

8. On the basis of information available with the company, it does not owe any outstanding dues towards Small Scale Industrial Undertaking amended Schedule VI of the companies Act, 1956 vide Notification NO.GSR 129 (E) dated 22.02.99, in case the sum owned is Rs. 1.00 Lac or more which is outstanding for more than 30 days as at 31st March, 2012.

9. On the basis of information available with the company, the Company does not have any amounts due to suppliers under the Micro, Small and Medium Enterprises covered under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) as at 31st March 2012.

10. Amounts except number of shares and earnings per share are rounded off to the nearest rupees.

11. The figures of previous year have been regrouped / rearranged wherever considered necessary.

 
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