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Notes to Accounts of Resurgere Mines & Minerals India Ltd.

Mar 31, 2015

1. Company Overview

Resurgere Mines & Minerals India Limited is a Public Limited Company engaged in the business of extraction, processing & sale of Ore and exploration & development of mining assets. Presently the Company is enjoying long term raising and purchasing rights for Bauxite Mine in the State of Maharashtra and mining rights for Soapstone in the State of Rajasthan.

The Company has also 99.98 % equity holding in Shri Warana Minerals (India) Pvt. Ltd. having another bauxite mine in the State of Maharashtra through its wholly owned subsidiary i.e. Warana Minerals Private Limited.

* Term loan taken from Union Bank of India for acquisition of Plant & Machinery and Equipments for Maharajpur mines at Orissa. Repayment of Instalment was not made from May-2011 and interest payment on the same payment was not made from Jun-2011.

* Due to non payment of instalment as well as interest, Union Bank of India has declared same term loan as NPA.

* Term loan is secured by exclusive charges on the underlying plant & machineries. Collateral security by way of pledge of shares of the company owned by the director/s and lien on fixed deposit. The loan is further secured by personal guarantee of one of the director (Mr. Subhash Atmaram Sharma).

* Cash Credit / Short Term Loan taken from Bank of India, State Bank of India, Union Bank of India, IndusInd Bank and Barclays Bank for working capital requirement. Repayment of Instalment was not made from May-2011 and Interest payment on the same payment was not made from Jan-2011

* The banks has declared same working capital loan as NPA due to non payment of interest as well as principle amount on demand.

* All loans are secured by first pari-passu charge on the entire current assets of the company and lien on fixed deposits. Collateral security by way of mortgage of residential property and office premises belonging to a director and a partnership firm in which a director is partner respectively on pari-passu basis. Personal Guarantee of one of the directors, a relative of director and also Guarantee of a partnership firm in which director is partner.

** Received from Mr. Subhash Atmaram Sharma (Managing Director of the Company)

*** Unsecured Loan from related parties received in the year 2011-2012, and company is not providing interest on the same. There is no material movement during the year.

* The names of the Micro, Small and Medium Enterprises suppliers defined under "The Micro Small and Medium Enterprises Development Act 2006" could not be identified, as the necessary evidence is not in the possession of the Company.

** Outstanding trade payables are as per books of accounts and subject to confirmation and company does not have any confirmation and reconcilation with the parties from last 3 years.

** There is no material Movement in Trade Payable from FY 2010-11.

* Duties & Taxation includes TDS on salary of Rs. 9.37 Lacs related to deduction of directors remuneration for the FY 2012-13 which is not yet paid. Interest on TDS on salary payable not provided during the year

** Interest on Term Loan overdue - Rs.591.66 Lacs (from Jun-2011 to Mar-2015) and Interest on Working Capital overdue - Rs.7104.21 Lacs (from Jun-2011 to Mar-2015). Due to all bank loans(working capital loan,term loan & short term loan) are NPA, the company has taken interest provision at the rate mentioned in their last sanstion letter.

*** ROC Filing Fee's is payable for increasing authorise share capital amounting to Rs. 48.98 lacs and provision for Interest on fee's payable is amounting to Rs.60.89 lacs.

**** Outstanding Creditors for Capital Goods and Other Liabilities are as per books of accounts and company does not have any confirmation and reconcilation with the parties.

* Advance to Suppliers are as per books of accounts and company does not have any confirmation and reconcilation with the parties from last 3 years.

* Advance to Suppliers includes Rs.1821.78 Lacs are outstanding more than 3 years and there are no material movement in the parties account.

** Advance to Subsidiary includes interest free loans advanced to a foreign subsidiary of Rs.14,258.57 Lacs (Previous Year Rs.13,691.10 Lacs) and the maximum amount outstanding during the period is Rs. 14,427.30 Lacs (Previous Year Rs. 14,300.98 Lacs). Advance was given during the FY 2010-11.

*** Principle and Interest amount of Inter - Corporate Deposits are outstanding for more than 3 years. There are no material movement in the parties account and company does not have any confirmation and reconcilation with the parties.

**** Mine Deposit are outstanding more than 3 years and there are no material movement in the parties account and company does not have any confirmation and reconcilation with the parties.

* Interest on term loan has been charged by bank till 31/05/2011. Term loan has been classified as NPA after 31/05/ 2011 by the bank, therefore bank has stopped charging interest due to RBI norms on NPA classified loans. The Company has accrued interest on estimation basis (@ as specified in sanction letter of respective bank in the books of accounts.)

** Interest on cash credit working capital loans has been charged by Union Bank of India till May-2011, Bank of India and State Bank of India till June-2011, Indusland Bank till November-2011. The same has been classified as NPA by respective banks, therefore bank has stopped charging interest due to RBI norms on NPA classified loans. The Company has accrued interest on estimation basis (@ as specified in sanction letter of respective bank in the books of accounts. )

** Short term loan from Barclays Bank has been classified as NPA by the banks, therefore bank has stopped charging interest due to RBI norms on NPA classified loans. The Company has accrued interest on estimation basis (@ as specified in sanction letter of the bank in the books of accounts. )

2. Contingent Liabilities not provided for in respect of: (Rs.in Lacs)

Particular As on As on 31-03-2015 31-03-2014

Claims against the Company not acknowledged 2,447.08 2,424.18 as debts including interest

Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) 5,173.51 5,173.51

3. In the opinion of the Management, all Current Assets, Loans & Advances would be realizable at least of an amount equal to the amount at which they are stated in the Balance.

a) Primary (Business) Segment

In accordance with the requirements of Accounting Standard 17 "Segment Reporting" issued by the Institute of Chartered Accountants of India, the Company's business constitutes only one reportable business segment being Mining & Trading of Minerals and hence no separate disclosure to attributable Revenues, Profits, Assets, Liabilities, and Capital Employed are given.

b) Secondary (Geographical Segment)

Secondary Segment Reporting is on the basis of geographical location of the customers. The operation of the Company comprises local sales and export sales. The management views the Indian Market and Export Market are distinct geographical segments. The following is the distribution of the Company's sale by geographical markets.

4. 'Related Party' Disclosure as per Accounting Standard 18 as specified under section 133 of the Companies Act, 2013 read with rule 7 of the Companies (Accounts) Rules, 2014, the related parties of the Group are as follows: : (As identified by the management)

Names of Related Parties:

(A) Key Management Personnel:

a. Mr. Subhash Atmaram Sharma - Chairman Cum Managing Director and CEO

b. Mr. Alok Ambastha - Independent Non-Executive Director

c. Mr. Mayur Jitendra Shah - Independent Non-Executive Director

d. Mr. Ajay Sethi ** - Independent Non-Executive Director

e. Ms. Mamta Parekh * - Independent Non-Executive Director

f. Mr. Rohit Palav * - Independent Non-Executive Director

g. Mr. Rakesh Gupta - Company Secretary

* Appointed during the year

** Resigned during the previous year

(B) Subsidiary Companies:

a. Warana Minerals Private Limited - Wholly owned Subsidiary Company

b. Shri Warana Minerals (India) Private - Subsidiary Company of Warana Limited Minerals Private Limited

c. Resurgere Sponge Iron Limited - Wholly owned Subsidiary Company

d. Resurgere Ferro Alloys Limited - Wholly owned Subsidiary Company

e. Resurgere Industries Limited - Wholly owned Subsidiary Company

f. Resurgere International FZE - Wholly owned Subsidiary Company at UAE

g. Resurgere Coal India LLP - Limited Liability Partnership Frim

(C) Related Parties:

(Entities in which any director or his relative is a partner , director or member)

a. M/S Exfin Shipping (India) - Partnership Frim

b. Victory Sponge Private Limited - Company

c. Eminent Steel private Limited - Company

d. Runwell Steel Private Limited - Company

e. Spear petroleum Private Limited - Company

f. Resurgere Infracorn Private Limited - Company

g. Akshar Lighting Systems - Partnership Frim

5. Consequent upon estimation on useful life for screening and crushing machinery, as estimated by management, and on wagons procured under "WIS" Scheme and as mentioned under point no. 2.6, "Depreciation and Amortization" charged to Profit and Loss Account is higher by Rs.265.20 Lacs (Previous Year - Rs.969.70 Lacs) and correspondingly Net Fixed Assets is also lower by Rs.576.91 Lacs (Previous Year - Rs.969.70 Lacs).

6. Miscellaneous Expenditure as per point no. "13", Depreciation & Amortization as per point no."24" and as per point no. "2.12" referred to above, also includes amounts which are more clearly mentioned in the table below. The table mentions respective mine location with its respective opening balance of the un-adjusted amount, if any, included under the head "Miscellaneous Expenditure", amount incurred during the year, amount written off and debited to Profit & Loss Account under the head "Depreciation & Amortisation" and the closing balance of the un-adjusted amount carried forward under

7. In the opinion of the Management, the Current Assets, Loans & Advances are approximately of the value stated and are realizable in the ordinary course of business. The provisions for all known liabilities are adequate.

8. Confirmation letters have been sent by the Company in respect of balances reflected under Sundry Debtors, Sundry Creditors and Loans and Advances. In view of confirmations having been received from only some of the parties, the balance under these heads have been shown as per books of accounts and are subject to reconciliation and adjustment, if any.

9. a Other Liabilities shown in point no. "10" Includes Rs.156.48 Lacs (Previous year - Rs.150.25 Lcas) being share application money refundable to an Overseas Corporate Body. Necessary approval for which is still awaited.

b Local Sales shown in point no. "18" is net of sales tax of Rs.1.38 Lacs (Previous year - Rs. 0.56 Lacs)

c Foreign exchange fluctuation (Net) shown in point no. "25" includes Rs.6.23 Lacs (Previous year - Rs.14.28 Lacs ) being exchange loss on account of share application money refundable to an overseas body corporate.

10. Taxes on Income:

a) As there is a loss during the year, therefore provision for Taxation for the year has not been made in accordance with the provisions of the Income Tax Act,1961

b) The accumulated balance in Net Deferred Tax Liability comprises of:

41 The annual accounts of the subsidiary companies and the related detailed information shall be made available to shareholders seeking such information at any point of time. The annual accounts of the subsidiary companies shall also be kept for inspection by any shareholders in the head office of the holding company and of the subsidiary companies concerned. The holding company shall furnish a hard copy of details of accounts of subsidiaries to any shareholder on demand.

11. Figures less than Rs. 500/- has been shown at actual wherever statutory required to be disclosed since figures have been rounded off to the nearest Rs. in Thousand.

12. Figures of the previous year have been reworked, regrouped, rearranged and reclassified, wherever necessary, to compare with the figures of the current year.


Mar 31, 2014

1. Company Overview

Resurgere Mines & Minerals India Limited is a Public Limited Company engaged in the business of extraction, processing & sale of Ore and exploration & development of mining assets. Presently the Company is enjoying long term raising and purchasing rights for Bauxite Mine in the State of Maharashtra and mining rights for Soapstone in the State of Rajasthan.

The Company has also 99.98 % equity holding in Shree Warana Minerals (India) Pvt. Ltd. having another bauxite mine in the State of Maharashtra through its wholly owned subsidiary i.e. Warana Minerals Private Limited.

2. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

* Term loan taken from Union Bank of India for acquisition of Plant & Machinery and Equipments for Maharajpur mines at Orissa. Repayment of Instalment was not made from May-2011 and interest payment on the same payment was not made from Jun-2011.

* Due to non payment of instalment as well as interest, Union Bank of India has declared same term loan as NPA.

* Term loan is secured by exclusive charges on the underlying plant & machineries. Collateral security by way of pledge of shares of the company owned by the director/s and lien on fixed deposit. The loan is further secured by personal guarantee of one of the director (Mr. Subhash Sharma).

Note: As there is Loss during the year ended on 31st March 2014, therefore provision for Deferred Tax for the year has not been made in accordance with the provisions of the Income Tax Act, 1961.

* Income tax payable pertaining to the Assessment year 2008-09, 2009-10, 2010-11 and 2011-12. Company is not providing any interest on payable amount.

* Cash Credit / Short Term Loan taken from Bank of India, State Bank of India, Union Bank of India, IndusInd Bank and Barclays Bank for working capital requirement. Repayment of Instalment was not made from May-2011 and Interest payment on the same payment was not made from Jan-2011.

* The banks has declared same working capital loan as NPA due to non payment of interest as well as principle amount on demand.

* All loans are secured by first pari-passu charge on the entire current assets of the company and lien on fixed deposits. Collateral security by way of mortgage of residential property and office premises belonging to a director and a partnership firm in which a director is partner respectively on pari-passu basis. Personal Guarantee of one of the directors, a relative of director and also Guarantee of a partnership firm in which director is partner.

** Received from Mr. Subhash Sharma (Managing Director of the Company)

*** Unsecured Loan from Associates Company received in the year 2011-2012, and company is not providing interest on the same. There is no material movement during the year.

* The names of the Micro, Small and Medium Enterprises suppliers defined under "The Micro Small and Medium Enterprises Development Act 2006" could not be identified, as the necessary evidence is not in the possession of the Company.

** Outstanding trade payables are as per books of accounts and subject to confirmation and company does not have any confirmation and reconcilation with the parties from last 3 years.

** There is no material Movement in Trade Payable from FY 2010-11.

* Duties & Taxation includes TDS on salary of Rs. 9.37 Lacs related to deduction of directors remuneration for the FY 2012-13 which is not yet paid. Interest on TDS on salary payable not provided during the year

** Interest on Term Loan overdue - Rs.410.48 Lacs (from Jun-2011 to Mar-2014) and Interest on Working Capital overdue - Rs.4932.71 Lacs (from Jun-2011 to Mar-2014). Due to all bank loans(working capital loan,term loan & short term loan) are NPA, the company has taken interest provision at the rate mentioned in their last sanstion letter.

*** ROC Filing Fee''s is payable for increasing authorise share capital amounting to Rs. 48.98 lacs and provision for Interest on fee''s payable is amounting to Rs.46.04 lacs.

**** Outstanding Creditors for Capital Goods and Other Liabilities are as per books of accounts and company does not have any confirmation and reconcilation with the parties.

* Advance to Suppliers are as per books of accounts and company does not have any confirmation and reconcilation with the parties from last 3 years.

* Advance to Suppliers includes Rs.1837.82 Lacs are outstanding more than 3 years and there are no material movement in the parties account.

** Advance to Subsidiary includes interest free loans advanced to a foreign subsidiary of Rs.13,691.10 Lacs (Previous Year Rs.12,390.21 Lacs) and the maximum amount outstanding during the period is Rs. 14,300.98 Lacs (Previous Yea Rs. 12,827.53 Lacs). Advance was given during the FY 2010-11.

*** Principle and Interest amount of Inter - Corporate Deposits are outstanding for more than 3 years. There are no material movement in the parties account and company does not have any confirmation and reconcilation with the parties.

**** Mine Deposit are outstanding more than 3 years and there are no material movement in the parties account and company does not have any confirmation and reconcilation with the parties.

* Interest provision on Inter - Corporate Deposits provided in books of accounts on outstanding principle amount. Company has not yet received any payment against interest from more than 3 years.

* Interest on term loan has been charged by bank till 31/05/2011. Term loan has been classified as NPA after 31/05/2011 by the bank, therefore bank has stopped charging interest due to RBI norms on NPA classified loans. The Company has accrued interest on estimation basis @ as specified in sanction letter of respective bank in the books of accounts.

** Interest on cash credit working capital loans has been charged by Union Bank of India till May-2011, Bank of India and State Bank of India till June-2011, Indusland Bank till November-2011.. The same has been classified as NPA by respective banks, therefore bank has stopped charging interest due to RBI norms on NPA classified loans. The Company has accrued interest on estimation basis @ as specified in sanction letter of respective bank in the books of accounts.

** Short term loan from Barclays Bank has been classified as NPA by the banks, therefore bank has stopped charging interest due to RBI norms on NPA classified loans. The Company has accrued interest on estimation basis @ as specified in sanction letter of the bank in the books of accounts.

(b) Other Expenses includes Rs.1.50 Lacs (Previous Year Rs.7.20 lacs) towards sitting fees paid to non-executive directors.

(c) The Managerial Remuneration paid / payable by the Company to its Managing Directors for the year under review of Rs. NIL (Previous year - Rs. 47.21 Lacs), was not in conformity with the provisions of Part II of Schedule XIII to the Companies Act, 1956 and therefore, was subjected to the requisite approval from the Central Government, for which, necessary application is not yet made by the Company.

3. In the opinion of the Management, all Current Assets, Loans & Advances would be realizable at least of an amount equal to the amount at which they are stated in the Balance.

4. Segment Reporting:

a) Primary (Business) Segment

In accordance with the requirements of Accounting Standard 17 "Segment Reporting" issued by the Institute of Chartered Accountants of India, the Company''s business constitutes only one reportable business segment being Mining & Trading of Ore and hence no separate disclosure to attributable Revenues, Profits, Assets, Liabilities, and Capital Employed are given.

b) Secondary (Geographical Segment)

Secondary Segment Reporting is on the basis of geographical location of the customers. The operation of the Company comprises local sales and export sales. The management views the Indian Market and Export Market are distinct geographical segments. The following is the distribution of the Company''s sale by geographical markets.

5. ''Related Party'' Disclosure as per Accounting Standard 18: (As identified by the management)

Names of Related Parties:

(A) Key Management Personnel:

a. Mr. Subhash A. Sharma - Chairman Cum Managing Director

b. Mr. Alok Ambastha - Independent Non-Executive Director

c. Mr. Mayur Shah - Additional Independent Non-Executive Director

d. Mr. Ajay Sethi - Independent Non-Executive Director

(B) Associates:

a. M/S Exfin Shipping (India) - Partnership Frim

b. Victory Sponge Private Limited - Company

c. Eminent Steel private Limited - Company

d. Runwell Steel Private Limited - Company

e. Spear petroleum Private Limited - Company

(C) Subsidiary Companies:

a. Warana Minerals Private Limited - Wholly owned Subsidiary Company

b. Shri Warana Minerals (India) Private Limited - Subsidiary Company of Warana Minerals Private Limited

c. Resurgere Sponge Iron Limited - Wholly owned Subsidiary Company

d. Resurgere Ferro Alloys Limited - Wholly owned Subsidiary Company

e. Resurgere Industries Limited - Wholly owned Subsidiary Company

f. Resurgere International FZE - Wholly owned Subsidiary Company at UAE

g. Resurgere Coal India LLP - Limited Liability Partnership Frim

Note:

1. Income / Liabilities are shown as minus figure.

2. There is no write off / write back from / to related parties.

6. Additional Information Pursuant to the provisions of Part II of the Schedule VI of the Companies Act 1956

Quantitative Information:

a) Installed Capacity N.A.

b) Purchase/Production, Consumption/Sales/Stock :

i) Opening Stock, Production/Purchases, Sales & Closing Stock of Finished Goods:-

Above mentioned quantity and value includes :

1. Purchase/Production includes trading purchases of Nil MTS of Rs.Nil (Previous Year Nil MTS of Rs.Nil).

2. Sales include trading sales of Nil MTS of Rs.Nil (Previous Year Nil MTS of Rs.Nil).

3. * net of shortage

7 Consequent upon estimation on useful life for screening and crushing machinery, as estimated by management, and on wagons procured under "WIS" Scheme and as mentioned under point no. 2.6, "Depreciation and Amortization" charged to Profit and Loss Account is higher by Rs.969.70 Lacs (Previous Year - Rs.969.05 Lacs) and correspondingly Net Fixed Assets is also lower by Rs.969.70 Lacs (Previous Year - Rs.969.05 Lacs).

8 Miscellaneous Expenditure as per point no. "13", Depreciation & Amortization as per point no."24" and as per point no. "2.12" referred to above, also includes amounts which are more clearly mentioned in the table below. The table mentions respective mine location with its respective opening balance of the un-adjusted amount, if any, included under the head "Miscellaneous Expenditure", amount incurred during the year, amount written off and debited to Profit & Loss Account under the head "Depreciation & Amortisation" and the closing balance of the un-adjusted amount carried forward under the head "Miscellaneous Expenditure" in the Balance Sheet.

9 In the opinion of the Management, the Current Assets, Loans & Advances are approximately of the value stated and are realizable in the ordinary course of business. The provisions for all known liabilities are adequate.

10 Confirmation letters have been sent by the Company in respect of balances reflected under Sundry Debtors, Sundry Creditors and Loans and Advances. In view of confirmations having been received from only some of the parties, the balance under these heads have been shown as per books of accounts and are subject to reconciliation and adjustment, if any.

11 a Other Liabilities shown in point no. "10" Includes Rs.150.25 Lacs (Previous year - Rs.135.97 Lacs) being share

application money refundable to an Overseas Corporate Body. Necessary approval for which is still awaited.

b Local Sales shown in point no. "18" is net of sales tax of Rs.0.56 Lacs (Previous year - Rs. 0.77 Lacs)

c Foreign exchange fluctuation (Net) shown in point no. "25" includes Rs.14.28 Lacs (Previous year - Rs.8.08 Lacs gain) being exchange loss on account of share application money refundable to an overseas body corporate.

d Insurance expenses shown in Schedule "25" includes Rs. Nil (Previous Year - Rs.0.48 Lacs) towards key man insurance premium.

12 Taxes on Income:

a) As there is a loss during the year, therefore provision for Taxation for the year has not been made in accordance with the provisions of the Income Tax Act,1961

b) The accumulated balance in Net Deferred Tax Liability comprises of:

* As there is a loss during the year, therefore provision for Deferred Tax Liability / (Asset) for the year has not been made.

13 The annual accounts of the subsidiary companies and the related detailed information shall be made available to shareholders seeking such information at any point of time. The annual accounts of the subsidiary companies shall also be kept for inspection by any shareholders in the head office of the holding company and of the subsidiary companies concerned. The holding company shall furnish a hard copy of details of accounts of subsidiaries to any shareholder on demand.

14 Figures less than Rs. 500/- has been shown at actual wherever statutory required to be disclosed since figures have been rounded off to the nearest Rs. in Thousand.

15 Figures of the previous year have been reworked, regrouped, rearranged and reclassified, wherever necessary, to compare with the figures of the current year.


Mar 31, 2013

1. Company Overview

Resurgere Mines & Minerals India Limited is a Public Limited Company engaged in the business of extraction, processing & sale of Ore and exploration & development of mining assets. Presently the Company is enjoying long term raising and purchasing rights for Bauxite Mine in the State of Maharashtra and mining rights for Soapstone in the State of Rajasthan.

The Company has also 99.98 % equity holding in Shree Warana Minerals (India) Pvt. Ltd. having another bauxite mine in the State of Maharashtra through its wholly owned subsidiary i.e. Warana Minerals Private Limited.

2. In the opinion of the Management, all Current Assets, Loans & Advances would be realizable at least of an amount equal to the amount at which they are stated in the Balance.

3. Segment Reporting:

a) Primary (Business) Segment

In accordance with the requirements of Accounting Standard 17 "Segment Reporting" issued by the Institute of Chartered Accountants of India, the Company''s business constitutes only one reportable business segment being Mining & Trading of Ore and hence no separate disclosure to attributable Revenues, Profits, Assets, Liabilities, and Capital Employed are given.

b) Secondary (Geographical Segment)

Secondary Segment Reporting is on the basis of geographical location of the customers. The operation of the Company comprises local sales and export sales. The management views the Indian Market and Export Market are distinct geographical segments. The following is the distribution of the Company''s sale by geographical markets.

4. ''Related Party'' Disclosure as per Accounting Standard 18: (As identified by the management) Names of Related Parties:

(A) Key Management Personnel:

a. Mr. Subhash A. Sharma - Chairman Cum Managing Director

b. Mr. Alok Ambastha - Independent Non-Executive Director

c. Mr. Mayur Shah - Additional Independent Non-Executive Director

d. Mr. Ajay Sethi - Independent Non-Executive Director

(B) Associates:

a. M/S Exfin Shipping (India) - Partnership Frim

b. Victory Sponge Private Limited - Company

c. Eminent Steel private Limited - Company

d. Runwell Steel Private Limited - Company

e. Spear petroleum Private Limited - Company

(C) Subsidiary Companies:

a. Warana Minerals Private Limited - Wholly owned Subsidiary Company

b. Shri Warana Minerals (India) Private Limited - Subsidiary Company of Warana Minerals Private Limited

c. Resurgere Sponge Iron Limited - Wholly owned Subsidiary Company

d. Resurgere Ferro Alloys Limited - Wholly owned Subsidiary Company

e. Resurgere Industries Limited - Wholly owned Subsidiary Company

f. Resurgere International FZE - Wholly owned Subsidiary Company at UAE

g. Resurgere Coal India LLP - Limited Liability Partnership Frim

5 Consequent upon estimation on useful life for screening and crushing machinery, as estimated by management, and on wagons procured under "WIS" Scheme and as mentioned under point no. 2.6, "Depreciation and Amortization" charged to Profit and Loss Account is higher by Rs.969.05 Lacs (Previous Year - Rs.969.05 Lacs) and correspondingly Net Fixed Assets is also lower by Rs.969.05 Lacs (Previous Year - Rs.969.05 Lacs).

6 Miscellaneous Expenditure as per point no. "13 ", Depreciation & Amortization as per point no."24" and as per point no. "2.12" referred to above, also includes amounts which are more clearly mentioned in the table below. The table mentions respective mine location with its respective opening balance of the un-adjusted amount, if any, included under the head "Miscellaneous Expenditure", amount incurred during the year, amount written off and debited to Profit & Loss Account under the head "Depreciation & Amortisation" and the closing balance of the un-adjusted amount carried forward under the head "Miscellaneous Expenditure" in the Balance Sheet.

7 In the opinion of the Management, the Current Assets, Loans & Advances are approximately of the value stated and are realizable in the ordinary course of business. The provisions for all known liabilities are adequate.

8 Confirmation letters have been sent by the Company in respect of balances reflected under Sundry Debtors, Sundry Creditors and Loans and Advances. In view of confirmations having been received from only some of the parties, the balance under these heads have been shown as per books of accounts and are subject to reconciliation and adjustment, if any.

9 a Other Liabilities shown in point no. "10" Includes Rs.135.97 Lacs (Previous year - Rs.127.89) being share application money refundable to an Overseas Corporate Body. Necessary approval for which is still awaited.

b Local Sales shown in point no. "18" is net of sales tax of Rs.0.77 Lacs (Previous year - Rs. 272.08 Lacs)

c Foreign exchange fluctuation (Net) shown in point no. "25" includes Rs.8.08 Lacs (Previous year - Rs. 16.26 Lacs gain) being exchange loss on account of share application money refundable to an overseas body corporate.

d Insurance expenses shown in point no. "25" includes Rs. 0.48 Lacs (Previous Year - Rs.0.21 Lacs) towards key man insurance premium.

10 Taxes on Income:

a) As there is a loss during the year, therefore provision for Taxation for the year has not been made in accordance with the provisions of the Income Tax Act,1961

b) The accumulated balance in Net Deferred Tax Liability comprises of:

11 The annual accounts of the subsidiary companies and the related detailed information shall be made available to shareholders seeking such information at any point of time. The annual accounts of the subsidiary companies shall also be kept for inspection by any shareholders in the head office of the holding company and of the subsidiary companies concerned. The holding company shall furnish a hard copy of details of accounts of subsidiaries to any shareholder on demand.

12 Figures less than Rs. 500/- has been shown at actual wherever statutory required to be disclosed since figures have been rounded off to the nearest Rs. in Thousand.

13 Figures of the previous year have been reworked, regrouped, rearranged and reclassified, wherever necessary, to compare with the figures of the current year.


Mar 31, 2012

1. Company Overview

Resurgere Mines & Minerals India Limited is a Public Limited Company engaged in the business of extraction, processing & sale of Ore and exploration & development of mining assets. Presently the Company is enjoying long term raising and purchasing rights for Bauxite Mine in the State of Maharashtra and mining rights for Soapstone in the State of Rajasthan.

The Company has also 99.98 % equity holding in Shri Warana Minerals (India) Pvt. Ltd. having another bauxite mine in the State of Maharashtra through its wholly owned subsidiary i.e. Warana Minerals Private Limited.

2. Long-Term Borrowings

- Term loan taken from Union Bank of India for acquisition of Plant & Machinery and Equipments for Maharajpur mines at Orissa. Repayment of Installment was not made from May-2011 and interest payment on the same payment was not made from Jun-2011

- Due to non payment of installment as well as interest, Union Bank of India has declared same term loan as NPA.

- Term loan is secured by exclusive charge on the underlying plant & machineries. Collateral security by way of pledge of shares of the company owned by the director/s and lien on fixed deposit. The loan is further secured by personal guarantee of one of the director.

- Installment overdue - Rs. 619.48 Lacs (from May-2011 to Mar-2012) and Interest overdue - Rs. 112.86 Lacs (from Jun-2011 to Mar-2012)

3. Short-Term Borrowings

- Cash Credit/Short Term Loan taken from Bank of India, State Bank of India, Union Bank of India, IndusInd Bank and Barclays Bank for working capital requirement. Repayment of Installment was not made from May-2011 and Interest payment on the same payment was not made from Jan-2011

- The banks has declared same working capital/Short Term Loan as NPA due to non payment of interest as well as principle amount on demand.

- All loans are secured by first pari-passu charge on the entire current assets of the company and lien on fixed deposits. Collateral security by way of mortgage of residential property and office premises belonging to a director and a partnership firm (in which a director is partner) respectively on pari-passu basis. Personal Guarantee of one of the directors, a relative of director and also Guarantee of a partnership firm in which director is partner.

- Working Capital outstanding - Rs. 10,239.37 Lacs (on 31-Mar-2012) ; Interest overdue - Rs. 1,774.39 Lacs (from Jan-2011 to Mar-2012) and Bank charges overdue - Rs. 35.06 Lacs (from Feb-2011 to Mar-2012) )

4. Trade Payables

* The names of the Micro, Small and Medium Enterprises suppliers defined under "The Micro Small and Medium Enterprises Development Act 2006" could not be identified, as the necessary evidence is not in the possession of the Company.

** Outstanding trade payables are as per books of accounts and subject to confirmation and reconciliation with the parties.

5. Other Current Liabilities

* Interest on Term Loan overdue - Rs. 112.86 Lacs (from Jun-2011 to Mar-2012) and Interest on Working Capital overdue - Rs. 921.31 Lacs (from Jun-2011 to Mar-2012)

** Outstanding Creditors for Capital Goods and Other Liabilities are as per books of accounts and subject to confirmation and reconciliation with the parties.

6. Other Current Assets

* Advance to Suppliers and Deposits are as per books of accounts and subject to confirmation and reconciliation with the parties.

** Advance to Subsidiary includes interest free loans advanced to a foreign subsidiary of Rs. 11,653.76 Lacs (Previous Year - Rs. 10,171.54 Lacs) and the maximum amount outstanding during the year is Rs 12,134.32 Lacs (Previous Year - Rs. 10,747.00 Lacs).

7. Finance Cost

* Interest on term loan has been charged by bank till 31/05/2011. Term loan has been classified as NPA after 31/05/ 2011 by the bank, therefore bank has stopped charging interest due to RBI norms on NPA classified loans. The Company has accrued interest on estimation basis, at the rate as specified in sanction letter of respective bank, in the books of accounts

** Interest on cash credit working capital loans has been charged by Union Bank of India till May-2011, Bank of India and State Bank of India till June-2011, Indusland Bank till November-2011.. The same has been classified as NPA by respective banks, therefore bank has stopped charging interest due to RBI norms on NPA classified loans. The Company has accrued interest on estimation basis, at the rate as specified in sanction letter of respective bank, in the books of accounts.

** Short term loan from Barclays Bank has been classified as NPA by the banks, therefore bank has stopped charging interest due to RBI norms on NPA classified loans. The Company has accrued interest on estimation basis, at the rate as specified in sanction letter of the bank, in the books of accounts.

8. Contingent Liabilities

Contingent Liabilities not provided for in respect of:

(Rs. in Lacs)

Particular As on As on 31-03-2012 31-03-2011

Claims against the Company not acknowledged as debts including interest 137.86 132.52

Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) 5,173.51 3,973.51

9. Directors' Remuneration :

(c) Administration & Selling Expenses included Rs. 10.40 Lacs (Previous Year Rs. 12.60 lacs) towards sitting fees paid to non-executive directors.

(d) Professional fees includes Rs. Nil (Previous Year Rs. 3.30 Lacs) paid to an Independent Director of the company.

(e) During the year compnay has paid/credited Rs. 96.88 lacs as remuneration to executive directors/managing directors. The company has paid/credited remuneration to managing directors is more than the maximum eligible amount as per schedule XIII of Companies Act., 1956. Since the Company does not have profits during the year under review, provisions of Section II of Part II of Schedule XIII of the Companies Act, 1956 relating to remuneration payable by the Companies having no profits or inadequate profits will applicable. As explained by the management, the excess amount credited will be reversed during financial year 2012-13.

10. In the opinion of the Management, all Current Assets, Loans & Advances would be realizable at least of an amount equal to the amount at which they are stated in the Balance Sheet.

11. Segment Reporting:

a) Primary (Business) Segment

In accordance with the requirements of Accounting Standard 17 "Segment Reporting" issued by the Institute of Chartered Accountants of India, the Company's business constitutes only one reportable business segment being Mining & Trading of Ore and hence no separate disclosure to attributable Revenues, Profits, Assets, Liabilities, and Capital Employed are given.

b) Secondary (Geographical Segment)

Secondary Segment Reporting is on the basis of geographical location of the customers. The operation of the Company comprises local sales and export sales. The management views the Indian Market and Export Market are distinct geographical segments. The following is the distribution of the Company's sale by geographical markets.

12. 'Related Party' Disclosure as per Accounting Standard 18: (As identified by the management) Names of Related Parties: (A) Key Management Personnel:

a. Mr. Subhash A. Sharma - Chairman Cum Managing Director

b. Mr. Amit Sharma** - Whole time Director

c. Mr. Alok Ambastha - Independent Non-Executive Director

d. Mr. Mayur Shah* - Additional Independent Non-Executive Director

e. Mr. Nitin Sethi** - Independent Non-Executive Director

f. Mr. Ajay Sethi - Independent Non-Executive Director

g. Mr. Ashwin Shankar Iyer** - Independent Non-Executive Director

* Appointed during the year

** Resigned during the year

(B) Associates:

a. M/s. Exfin Shipping (India) - Partnership Frim

b. Victory Sponge Private Limited - Company

c. Eminent Steel private Limited - Company

d. Runwell Steel Private Limited - Company

e. Spear petroleum Private Limited - Company

(C) Subsidiary Companies:

a. Warana Minerals Private - Wholly owned Subsidiary Company Limited

b. Shri Warana Minerals (India) - Subsidiary Company Private Limited of Warana Minerals Private Limited

c. Resurgere Sponge Iron Limited - Wholly owned Subsidiary Company

d. Resurgere Ferro Alloys Limited - Wholly owned Subsidiary Company

e. Resurgere Industries Limited - Wholly owned Subsidiary Company

f. Resurgere International FZE - Wholly owned Subsidiary Company at UAE

g. Resurgere Coal India LLP - Limited Liability Partnership Frim

13. Consequent upon estimation on useful life for screening and crushing machinery, as estimated by management, and on wagons procured under "WIS" Scheme and as mentioned under point no. 2.6, "Depreciation and Amortization" charged to Profit and Loss Account is higher by Rs. 969.05 Lacs (Previous Year - Rs. 787.00 Lacs) and correspondingly Net Fixed Assets is also lower by Rs. 969.05 Lacs (Previous Year - Rs. 787.00 Lacs).

14. Miscellaneous Expenditure as per point no. "13 (b)", Depreciation & Amortization as per point no. "11" and as per point no. "2.12" referred to above, also includes amounts which are more clearly mentioned in the table below. The table mentions respective mine location with its respective opening balance of the un-adjusted amount, if any, included under the head "Miscellaneous Expenditure", amount incurred during the year, amount written off and debited to Profit & Loss Account under the head "Depreciation & Amortisation" and the closing balance of the un-adjusted amount carried forward under the head "Miscellaneous Expenditure" in the Balance Sheet.

15. In the opinion of the Management, the Current Assets, Loans & Advances are approximately of the value stated and are realizable in the ordinary course of business. The provisions for all known liabilities are adequate.

16. Confirmation letters have been sent by the Company in respect of balances reflected under Sundry Debtors, Sundry Creditors and Loans and Advances. In view of confirmations having been received from only some of the parties, the balance under these heads have been shown as per books of accounts and are subject to reconciliation and adjustment, if any.

17. a) Other Liabilities shown in point no. "10" Includes Rs. 127.89 Lacs (Previous year - Rs. 111.63 Lcas) being share application money refundable to an Overseas Corporate Body. Necessary approval for which is still awaited.

b) Local Sales shown in point no. "18" is net of sales tax of Rs. 272.08 Lacs (Previous year - Rs. 3081.97 Lacs)

c) Foreign exchange fluctuation (Net) shown in point no. "24" includes Rs. 16.26 Lacs ((Previous year - Rs. 1.23 Lacs (gain)) being exchange loss on account of share application money refundable to an overseas body corporate.

d) Insurance expenses shown in Point No. "24" includes Rs. 0.21 Lacs (Previous Year - Rs. 0.71 Lacs) towards key-man insurance premium.

18. Taxes on Income:

a) As there is a loss during the year, therefore provision for Taxation for the year has not been made in accordance with the provisions of the Income Tax Act, 1961

19. The annual accounts of the subsidiary companies and the related detailed information shall be made available to shareholders seeking such information at any point of time. The annual accounts of the subsidiary companies shall also be kept for inspection by any shareholder in the head office of the holding company and of the subsidiary companies concerned. The holding company shall furnish a hard copy of details of accounts of subsidiaries to any shareholder on demand.

20. Figures less than Rs. 500/- has been shown at actual wherever statutory required to be disclosed since figures have been rounded off to the nearest rupees in Thousand.

21. Figures of the previous year have been reworked, regrouped, rearranged and reclassified, wherever necessary, to compare with the figures of the current year.

 
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