Mar 31, 2016
b) 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. 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 amount. The distribution will be in proportion to the number of Equity Shares held by the shareholders.
(A) Working Capital Term Loan:
Upon implementation of the CDR Package (Refer Note 28), the overdrawn portion of the Cash Credit Accounts of the Company has been carved out into separate Working Capital Term Loans (WCTL).
(B) Funded Interest Term Loan:
Upon implementation of the CDR Package (Refer Note 28), funding of interest has been provided for: -
Interest on existing term loans for a period of 24 months from the Cut-Off Date i.e. from October 01, 2013 to
September 30, 2015;
- Interest on WCTL for a period of 24 months from the Cut-Off Date i.e. from October 01, 2013 to September 30, 2015;
- Interest on residual cash credit limit for a period of 9 months from the Cut-Off Date i.e. from October 01, 2013 to June 30, 2014;
(C) Details of security:
(i) In terms of the CDR package, Rupee Term Loans , Working Capital Term Loans, Funded Interest Term Loans and Working Capital Loan (Refer Note 7) are pooled together and secured as under:
a) First pari-passu charge on the entire Fixed Assets of the Company (excluding value of vehicles), both present and future, including equitable mortgage of factory land & building at Bishnupur (West Bengal), Jajpur (Odisha) and Haldia (West Bengal). Also, secured by way of mortgage on Freehold land at New Town, District: North 24 Parganas measuring 50 Cottahs.
b) First pari-passu charge on the entire Current Assets of the Company comprised of stock of raw materials, semi finished and finished goods and book debts, outstanding moneys, receivables, both present and future pertaining to the Company''s manufacturing units/divisions at Bishnupur (West Bengal), Jajpur (Odisha) and Haldia (West Bengal) and at other Units.
c) Collateral security by equitable mortgage on Land & Building at 1/26, Vidyadhar Nagar, Jaipur, Rajasthan held in the name of Shubham Complex Pvt. Ltd., Office space measuring 835 sq. ft. located at Flat no. 21B, 4th Floor, Bowbazar, 35, C.R. Avenue, Kolkata-12, held in the name of Mr. S.K.Patni and Flat No. A-52, Block-A, 35, Dr. Abani Dutta Road, Salkia, Howrah, held in the name of Mr. Rohit Patni.
d) Pledge of 100% of the promoter''s shares representing 72% of the paid up Capital of the company on pari passu basis.
e) Personal Guarantee of the Promoters - Mr. S.K.Patni, Mr. Rohit Patni and Mr. Ankit Patni.
f) Corporate Guarantee of the Group Companies - Vasupujya Enterprises Pvt. Ltd., Shubham Complex Pvt. Ltd., Poddar Mech Tech Services Pvt. Ltd., Invesco Finance Pvt. Ltd. and Suanvi Trading and Investment Co. Pvt. Ltd.
(ii) Loans against Vehicles & Equipments are secured by way of hypothecation of the underlying asset financed
(D) Terms of Repayment of Loans:
(i) Terms of Repayment of Rupee Term Loans availed for Haldia Project, 33 MVA Furnace and Stainless Steel Plant of the Company and Working Capital Term Loan :
Upon implementation of the CDR Package, the existing Rupee Term Loan amounting to Rs. 33,234.93 lacs in respect of Haldia Project, 33 MVA Furnace and Stainless Steel Project and Working Capital Term Loan are to be repaid over a period of 8 years by way of 32 structured quarterly installments commencing from December to and forming part of Financial Statements as at 31st March, 2016
NOTE 1 LONG-TERM BORROWINGS (Contd.)
31, 2015 up to September 30, 2023 as per the Repayment Schedule given below. Further, such loans carry the interest rate @ 11% p.a. linked to the Base Rate of the State Bank of India, with annual reset option with the approval of CDR-EG.
(ii) Terms of Repayment of Term Loan availed for 67.5 MVA Captive Power Plant project of the Company :
Upon implementation of the CDR Package, the Rupee Term Loan amounting to Rs. 25,699.04 lacs in respect of 67.5 MVA Captive Power Plant is to be repaid by way of 38 equal quarterly installments commencing from December 31, 2015 up to March 31, 2025. Further, the loan carries the interest rate @ 11% p.a. linked to the Base Rate of the State Bank of India, with annual reset option with the approval of CDR-EG.
(iii) Terms of Repayment of Funded Interest Term Loan :
Repayment of FITL is to be made in 18 equal quarterly installments commencing from December 31, 2015 with the last installment due on March 31, 2020. FITL carries interest @11% p.a. linked to the Base Rate of the State Bank of India, with annual reset option with the approval of CDR-EG.
(v) Pursuant to CDR Package, the Company has received unsecured loans amounting to Rs. 7280 lacs from promoters & promoter group Companies as promoterâs contribution, to be converted into equity. Subsequently, with the invocation of SDR, the said amount of Rs. 7280 lacs was allowed to be converted into equity at par. The company has since applied for in-principal approval from Stock Exchanges and the same is awaited.
(vi) Unsecured Loan from Body Corporate (Other than related parties) aggregating to Rs. 6,577.72 Lacs (P.Y. Rs. 6,487.34 Lacs) are interest free. Such loans are repayable at the option of the Company and are stated by the management to be in the nature of Long-term borrowings.
(vii) Loans against Vehicles and Equipments are repayable by way of Equated Monthly Installments subsequent to taking of such loan. The original period of such loans is 3 years.
Net Deferred Tax Asset on account of balance of Unabsorbed Depreciation and Business Loss has not been recognized as a matter of prudence.
NOTE 2 SHORT-TERM BORROWINGS
Working Capital Loans from Banks (Secured)
Rupee Loans
Other Loans and Advances
Bridge Loan from WBIDC Ltd. (against interest subsidy receivable)
- SBI Global Factors Ltd. under factoring facility secured against specific debts
(A) Details of security
The rate of interest on the working capital loans from banks is 10.3% linked to the base rate of State Bank of India. For details of security given for short term borrowings, Refer Note 4(C) above.
There are no Micro, Small and Medium Enterprises to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March 2016. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.
NOTE 3 CORPORATE DEBT RESTRUCTURING
During the year 2013-14 , at the request of the Company, the Corporate Debt Restructuring Proposal (CDR Proposal) was referred to CDR Empowered Group (CDR EG) by the consortium of lenders led by State Bank of India (SBI). The CDR Proposal as recommended by SBI was approved by CDR EG on March 24, 2014 and communicated vide Letter of Approval dated March 28, 2014, as amended / modified from time to time. Under CDR package, the Company''s debts were restructured / rescheduled and additional credit facilities have been sanctioned as set out in the said Letter of Approval. The cutoff date for CDR package was September 30, 2013 and upon implementation, the financial effect thereof has been duly taken into accounts.
The CDR Package includes reliefs/measures such as reduction in interest rates, funding of interest, rearrangement of securities etc. The key features of the CDR Proposal are as follows:
(i) Repayment of Rupee Term Loans (RTL) (except term loan for Captive Power Plant of the Company) after moratorium of 2 years from the cut-off date in 32 structured quarterly installments commencing from December 31, 2015 to September 30, 2023.
(ii) Repayment of Rupee Term Loans for Captive Power Plant of the Company after moratorium of 2 years from the cutoff date in 38 structured quarterly installments commencing from December 31, 2015 to March 31, 2025.
(iii) Conversion of various irregular/outstanding/devolved financial facilities into Working Capital Term Loan (''WCTL''). Repayment of WCTL after moratorium period of 2 years from cut-off date in 32 structured quarterly installments commencing from December 31, 2015 to September 30, 2023.
(iv) Restructuring of existing fund based and non fund based financial facilities.
(v) Interest on RTL and WCTL during the moratorium period of 2 years from cut-off date and interest on Cash Credit limit for a period of 9 months from the cut-off date shall be converted to FITL. Repayment of FITL would be done in 18 equal quarterly installments commencing from December 31, 2015 to March 31, 2020.
(vi) The rate of interest on RTL, WCTL, FITL and Fund Based Working Capital Facilities shall be 11% (linked to the base rate of SBI) with the right to reset the rate of the Term loan(s) and FITL every year with the approval of CDR-EG.
(vii) Waiver of penal interest for irregularities in the Cash Credit accounts for the period from cut-off date to the date of implementation of the package.
(viii) Contribution of Rs. 5,664 lacs in the Company by the promoters in lieu of bank sacrifices and Rs. 8,577 lacs to meet the additional cost over run towards the Captive Power plant project of the Company. The contribution is to be brought initially in the form of unsecured loan by September 30, 2014 and the same is to be converted into Equity by June 30, 2015.
(ix) The CDR Package as well as the provisions of the Master Circular on Corporate Debt Restructuring issued by the Reserve Bank of India, gives a right to the CDR Lenders to get a recompense of their waivers and sacrifices made as part of the CDR Proposal. The recompense payable by the Company is contingent on various factors, the outcome of which currently is materially uncertain and hence the proportionate amount payable as recompense has been treated as a contingent liability. The aggregate present value of the outstanding sacrifice made/ to be made by CDR Lenders as per the CDR package is approximately Rs. 69,987 lacs.
NOTE 30 CONTINGENT LIABILITIES AND COMMITMENTS
(i) Contingent Liabilities not provided for in the books of accounts in respect of :
(a) Bills discounted, outstanding as on 31st March, 2016 - Rs. 189.55 Lacs (P.Y. - Rs. 697.49 Lacs)
(b) Corporate Guarantee to Indian Overseas Bank, Hongkong to secure the financial assistance to SKP Overseas Pte Ltd., a Wholly Owned Subsidiary. Amount payable by SKP Overseas Pte Ltd. to Indian Overseas Bank, Hongkong as on 31st March 2016 is USD. 2.57 Million (P.Y. USD. 3.29 Million).
(c) Right of Recompense to CDR Lenders for the relief and sacrifice extended, subject to provisions of CDR Guidelines, amounting to Rs. 69,987 lacs (Refer Note 28)
NOTE 4
The current and non-current assets, in the opinion of the management, have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the accounts. Adequate provisions have been made for all known losses and liabilities.
NOTE 5
Certain Balances of the sundry creditors, sundry debtors, unsecured loans and advances are subject to confirmation and reconciliation. The reported financials might have consequential impact once the reconciliation is completed, the quantum where of remains unascertained. Advance from Parties includes Rs. 116.04 lacs (P.Y. Rs. 74.84 lacs) being certain receipts lying under suspense account in absence of information as to the credits in the bank account.
NOTE 6 RESEARCH AND DEVELOPMENT EXPENSES
Research and Development expenses aggregating to Rs. 5.25 Lacs ( P.Y. Rs.10.53 Lacs) in the nature of revenue expenditure have been included under the appropriate account heads.
NOTE 7 EMPLOYEE BENEFITS
Disclosure pursuant to Accounting Standard- 15 (Revised) "Employee Benefits"
NOTE 8 EMPLOYEE BENEFITS (Contd.)
(b) The employees. gratuity fund scheme managed by a Trust is a defined benefit plan. The present value of obligation is determined based on the actuarial valuation using the Projected Unit Credit Method as on March 31, 2016 which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.
NOTE 36 RELATED PARTY DISCLOSURE |
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(i) Name of the related parties where control exists irrespective of whether transactions have occurred or not |
||
(a) |
Enterprise on which the Company has control |
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SKP Overseas Pte Ltd. |
Wholly Owned Subsidiary |
|
PT Bara Prima Mandiri |
Subsidiary of SKP Overseas Pte Ltd. |
(b) |
Entities/Individuals owning directly or indirectly an interest in the voting power that gives them control |
|
|
A.B Infratel Pvt. Ltd. |
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Gannath Commerce Pvt. Ltd. |
|
|
Mahabala Merchants Pvt. Ltd. |
|
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Narmada Rivers Resources Pvt. Ltd. |
|
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Relybulls Derivatives and Commodities Pvt. Ltd. |
|
|
SBM Steels Pvt. Ltd. |
|
|
SKP Aviation Services Ltd. |
|
|
Gajavakra Merchandise Pvt. Ltd. |
|
(c) |
(i) Key Managerial Personnel |
Mr. Rohit Patni (till 21.08.2015) Mr. R.K.Burnwal (w.e.f. 24.03.2016) Mr. Dinesh Biyanee (till 30.03.2016) Mr. Ankit Patni (w.e.f 30.09.2015) Mr. Vipul Jain Mr. Anil Prasad Shaw |
|
(ii) Relatives of Key Managerial Person |
Mr. Suresh Kumar Patni Mrs. Sarita Patni Mr. Rohit Patni |
|
(iii) Enterprises owned or significantly |
Impex Metal & Ferro Alloys Ltd. |
|
influenced by the Key Managerial |
Impex Ferro Tech Ltd. |
|
Personnel or their relatives |
Ankit Metal & Power Ltd. Whitestone Suppliers Pvt. Ltd. Vasupujya Enterprises Pvt. Ltd. Marble Arch Properties Pvt. Ltd. SKP Power Ventures Ltd. Poddar Mech Tech Services Pvt. Ltd. Suanvi Trading & Investment Co. Pvt. Ltd. Shreyansh Leafin Pvt. Ltd. Relybulls Stock Broking Pvt. Ltd. Sarita Steel & Power Ltd. Shubham Complex Pvt. Ltd. Gajkarna Merchandise Pvt. Ltd. Astabhuja Properties Pvt. Ltd. Invesco Finance Pvt. Ltd. Arthodock Vinimay Pvt. Ltd. Nucore Exports Pvt. Ltd. VNG Mercantiles Pvt. Ltd. SKP Mining Pvt. Ltd. Divine Trading Co. Pvt. Ltd. |
NOTE 9
The Company has not made any remittance in foreign currencies on account of dividend during the year and does not have information as to the extent to which remittance in foreign currencies on account of dividends have been made on behalf of non - resident shareholders.
NOTE 10
The Company had entered into an agreement dated February 19, 2015, for the sale, transfer or otherwise disposal of Company''s Manufacturing Unit at Jajpur, Odisha as a going concern with M/s Balasore Alloys Ltd., on slump sale basis. The long stop date in terms of the said agreement was up to March 31, 2016 which has not been renewed.
NOTE 11
The Company''s Factory at Haldia (West Bengal) is temporarily suspended since July 1, 2015 on account of depressed domestic and global market conditions in steel industry, and excess procurement cost of Electricity.
NOTE 12
The Joint Lender Forum (JLF) of consortium bankers has since approved "in principle" the decision for the invocation of Strategic Debt Restructuring (SDR) in terms of RBI Guidelines and among other things is exploring the investment proposals in the Company.
NOTE 13
The operations of the Company are severely impacted by weak steel industry scenario and lack of demand for Company''s finished product. Lower utilization of capacity and drop in finish goods price realization has impacted the top line as well as bottom line of the Company. The Company has incurred loss of Rs. 48,406.62 Lacs for year ended March 31, 2016. The accumulated loss as on March 31, 2016 is Rs. 80,404.93 Lacs which is in excess of the entire net worth of the company. The company has continuous support from the promoters and has put in place measures for revival and cost reduction. Considering the above initiative of the Company and given the emerging scenario of steel industry in India, the management is of view of foreseeable future about the operations of the Company and accordingly the Financial Statements have been prepared under Going Concern basis.
NOTE 14
Previous yearâs figures have been reworked, regrouped, rearranged and reclassified wherever considered necessary to confirm to this year''s classification. Accordingly, amounts and other disclosures for the preceding year are included as an integral part of the current year Financial Statements and are to be read in relation to amounts and other disclosures relating to the current year.
.
Mar 31, 2015
1. Terms/Rights attached to Equity Shares
The Company has only one class of Equity Shares having a par value of
'10 per share. Each holder of Equity Shares is entitled to one vote per
share. 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 amount. The distribution
will be in proportion to the number of Equity Shares held by the share
holders.
2. Pursuant to the Companies Act, 2013 the company has reworked the
depreciation on the estimated useful life of Fixed Assets prescribed
under Schedule II of the Act. Consequently, the depreciation for the
year ended 31st March, 2015 is lower by Rs. 533.36 Lacs and profit
before tax is higher to this extent. Further based on transitional
provision provided in note 7(b) of Schedule II to the Act an amount of
Rs. 249.45 Lacs has been adjusted in the opening balance of retained
earnings in respect of assets having no useful life as on 1st April,
2014.
3. Working Capital Term Loan :
Upon implementaion of the CDR Package (Refer Note 28), the overdrawn
portion of the Cash Credit Accounts of the
Company has been carved out into separate Working Capital Term Loans
(WCTL).
4. Funded Interest Term Loan :
Upon implementaion of the CDR Package (Refer Note 28), funding of
interest has been provided for:
* Interest on existing term loans for a period of 24 months from the
Cut-Off Date i.e from October 01, 2013 to September 30, 2015;
* Interest on WCTL for a period of 24 months from the Cut-Off Date i.e
from October 01, 2013 to September 30, 2015;
* Interest on residual cash credit limit for a period of 9 months from
the Cut-Off Date i.e from October 01, 2013 to June 30, 2014;
5. Details of security :
(i) In terms of the CDR package, Rupee Term Loans, Working Capital Term
Loans, Funded Interest Term Loans and Working Capital Loan (Refer Note
7) are pooled together and secured as under:
a) First pari-passu charge on the entire Fixed Assets of the Company
(excluding value of vehicles), both present and future, including
equitable mortgage of factory land & building at Bishnupur (West
Bengal), Jajpur (Odisha) and Haldia (West Bengal). Also, secured by way
of mortgage on Freehold land at New Town, District: North 24 Parganas
measuring 50 Cottahs.
b) First pari-passu charge on the entire Current Assets of the Company
comprised of stock of raw materials, semi finished and finished goods
and book debts, outstanding moneys, receivables, both present and
future pertaining to the Company's manufacturing units/divisions at
Bishnupur (West Bengal), Jajpur (Odisha) and Haldia (West Bengal) and
at other Units.
c) Collateral security by equitable mortgage on Land & Building at
1/26, Vidyadhar Nagar, Jaipur, Rajasthan held in the name of Shubham
Complex Pvt. Ltd., Office space measuring 835 sq. ft. located at Flat
no. 21B, 4th Floor, Bowbazar, 35, C.R. Avenue, Kolkata-12, held in the
name of Mr. S.K.Patni and Flat No. A-52, Block-A, 35, Dr. Abani Dutta
Road, Salkia, Howrah, held in the name of Mr. Rohit Patni.
d) Pledge of 100% of the promoter's shares representing 72% of the paid
up Capital of the Company on pari passu basis.
e) Personal Guarantee of the Promoters - Mr. S.K.Patni, Mr. Rohit Patni
and Mr. Ankit Patni.
f) Corporate Guarantee of the Group Companies - Vasupujya Enterprises
Pvt. Ltd., Shubham Complex Pvt. Ltd., Poddar Mech Tech Services Pvt.
Ltd., Invesco Finance Pvt. Ltd. and Suanvi Trading and Investment Co.
Pvt. Ltd.
(ii) Loans against Vehicles & Equipments are secured by way of
hypothecation of the underlying asset financed.
6. Terms of Repayment of Loans :
(i) Terms of Repayment of Rupee Term Loans availed for Haldia Project,
33 MVA Furnace and Stainless Steel Plant of the Company and Working
Capital Term Loan :
Upon implementaion of the CDR Package, the existing Rupee Term Loan
amounting to Rs. 33,234.93 Lacs. in respect of Haldia Project, 33 MVA
Furnace and Stainless Steel Project and Working Capital Term Loan are
to be repaid over a period of 8 years by way of 32 structured quarterly
installments commencing from December 31, 2015 upto September 30, 2023
as per the Repayment Schedule given below. Further, such loans carry
the interest rate @ 11% p.a. linked to the Base Rate of the State Bank
of India, with annual reset option with the approval of CDR-EG.
(ii) Terms of Repayment of Term Loan availed for 67.5 MVA Captive Power
Plant project of the Company :
Upon implementaion of the CDR Package, the Rupee Term Loan amounting to
Rs. 25,699.04 Lacs. in respect of 67.5 MVA Captive Power Plant is to be
repaid by way of 38 equal quarterly installments commencing from
December 31, 2015 upto March 31, 2025. Further, the loan carries the
interest rate @ 11% p.a. linked to the Base Rate of the State Bank of
India, with annual reset option with the approval of CDR-EG.
(iii) Terms of Repayment of Funded Interest Term Loan :
Repayment of FITL is to be made in 18 equal quarterly installments
commencing from December 31, 2015 with the last installment due on
March 31, 2020. FITL carries interest @11% pa linked to the Base Rate
of the State Bank of India, with annual reset option with the approval
of CDR-EG.
(iv) Unsecured Loans from Related Parties (Interest free) are to be
converted into Equity by June 30, 2015 as per CDR package. [Refer Note
2].
(v) Unsecured Loan from Body Corporates (Other than related parties)
aggregating to Rs. 6,487.34 Lacs. (P.Y. Rs.6,487.34 Lacs.) are interest
free. Such loans are repayable at the option of the Company and are
stated by the management to be in the nature of Long term borrowings.
(vi) Loans against Vehicles and Equipments are repayable by way of
Equated Monthly Installments subsequent to taking of such loan. The
original period of such loans is 3 years.
a. There are no Micro, Small and Medium Enterprises to whom the
Company owes dues, which are outstanding for more than 45 days as at
31st March 2015. This information as required to be disclosed under the
Micro, Small and Medium Enterprises Development Act, 2006 has been
determined to the extent such parties have been identified on the basis
of information available with the Company.
b. Trade Payables include Rs. 3,494.18 Lacs. (P.Y. Rs. 5,590.43 Lacs.)
against pledge of stock of raw materials.
c. The Trade Payables include Rs. 536.35 Lacs. (P.Y Rs. 4.55 Lacs.)
due to related parties. (Refer Note No. 36)
Pursuant to the Companies Act, 2013 the Company has reworked the
depreciation on the estimated useful life of Fixed Assets prescribed
under Schedule II of the Act. Consequently, the depreciation for the
year ended 31st March 2015 is lower by Rs. 533.36 Lacs and profit
before tax is higher to this extent. Further based on transitional
provision provided in note 7(b) of Schedule II to the Act an amount of
Rs. 249.45 Lacs has been adjusted in the opening balance of retained
earnings in respect of assets having no useful life as on 1st April
2014.
The original cost of vehicles & equipments includes Rs. 62.91 Lacs
(P.Y. Rs. 370.60 Lacs.) acquired under vehicle and equipment finance
scheme from banks & financial institutions, of which Rs.16.82 Lacs.
(P.Y. Rs. 105.54 Lacs. ) were outstanding as at year end.
* Includes Rs. 14.61 Lacs (P.Y. Rs. 5.05 Lacs) debited to Capital
Work-in-Progress.
7. During the year 2013-14, at the request of the Company, the Corporate
Debt Restructuring Proposal (CDR Proposal) was referred to CDR
Empowered Group (CDR EG) by the consortium of lenders led by State Bank
of India (SBI). The CDR Proposal as recommended by SBI was approved by
CDR EG on March 24, 2014 and communicated vide Letter of Approval dated
28th March, 2014, as amended/modified from time to time. Under CDR
package, the Company's debts were restructured/rescheduled and
additional credit facilities have been sanctioned as set out in the
said Letter of Approval. The cut off date for CDR package was September
30, 2013 and upon implementation, the financial effect thereof has been
duly taken into accounts.
The CDR Package includes reliefs / measures such as reduction in
interest rates, funding of interest, rearrangement of securities etc.
The key features of the CDR Proposal are as follows:
(i) Repayment of Rupee Term Loans (RTL) (except term loan for Captive
Power Plant of the Company) after moratorium of 2 years from the
cut-off date in 32 structured quarterly installments commencing from
December 31, 2015 to September 30, 2023.
(ii) Repayment of Rupee Term Loans for Captive Power Plant of the
Company after moratorium of 2 years from the cut- off date in 38
structured quarterly installments commencing from December 31, 2015 to
March 31, 2025.
(iii) Conversion of various irregular/outstanding/devolved financial
facilities into Working Capital Term Loan ('WCTL'). Repayment of WCTL
after moratorium period of 2 years from cut-off date in 32 structured
quarterly installments commencing from December 31, 2015 to September
30, 2023.
(iv) Restructuring of existing fund based and non fund based financial
facilities.
(v) Interest on RTL and WCTL during the moratorium period of 2 years
from cut-off date and interest on Cash Credit limit for a period of 9
months from the cut-off date shall be converted to FITL. Repayment of
FITL would be done in 18 equal quarterly installments commencing from
December 31, 2015 to March 31, 2020.
(vi) The rate of interest on RTL, WCTL, FITL and Fund Based Working
Capital Facilities shall be 11% (linked to the base rate of SBI) with
the right to reset the rate of the Term loan(s) and FITL every year
with the approval of CDR-EG.
(vii) Waiver of penal interest for irregularities in the Cash Credit
accounts for the period from cut-off date to the date of implementation
of the package.
(viii) Contribution of Rs. 5,664 Lacs. in the Company by the promoters
in lieu of bank sacrifices and Rs. 8,577 Lacs. to meet the additional
cost over run towards the Captive Power plant project of the Company.
The contribution is to be brought initially in the form of unsecured
loan by September 30, 2014 and the same is to be converted into equity
by June 30, 2015.
(ix) The CDR Package as well as the provisions of the Master Circular
on Corporate Debt Restructuring issued by the Reserve Bank of India,
gives a right to the CDR Lenders to get a recompense of their waivers
and sacrifices made as part of the CDR Proposal. The recompense payable
by the Company is contingent on various factors, the outcome of which
currently is materially uncertain and hence the proportionate amount
payable as recompense has been treated as a contingent liability. The
aggregate present value of the outstanding sacrifice made/to be made by
CDR Lenders as per the CDR package is approximately Rs. 69,987 Lacs.
a. Pursuant to CDR Package, the Company has received unsecured loans
amounting to Rs. 7,131.00 Lacs from promoters & promoter companies as
promoter's contribution, to be converted into equity by June 30, 2015,
at such price as will be determined in accordance with the SEBI (Issue
of Capital and Disclosure Requirements) Regulations. Pending approval &
determination of price by SEBI, the same has not been considered in the
calculation of EPS.
(i) Contingent Liabilities not provided for in the books of accounts in
respect of :
(a) Bills discounted, outstanding as on 31st March, 2015 - Rs. 697.49
Lacs (P.Y. - Rs. 2,389.29 Lacs)
(b) Corporate Guarantee to Indian Overseas Bank, Hongkong to secure the
financial assistance to SKP Overseas Pte Ltd, a Wholly Owned Subsidary.
Amount payable by SKP Overseas Pte Ltd. to Indian Overseas Bank,
Hongkong as on 31st March 2015 is USD. 3.29 Million (P.Y. USD. 4.20
Million).
(c) Right of Recompense to CDR Lenders for the relief and sacrifice
extended, subject to provisions of CDR Guidelines, amounting to Rs.
69,987 Lacs (Refer Note 28)
(d) Claims against the company not acknowledged as debt:
(Rs. in Lacs)
31-03-2015 31-03-2014
Disputed Excise Duty under appeal 720.86 720.86
Disputed Sales Tax/VAT under appeal 3,696.36 2,393.98
Disputed VAT Refund claim under appeal 1,305.99 1,305.99
Disputed Entry Tax under appeal 155.39 16.03
Excise Duty demand for which
show cause notice issued 243.92 59.61
Disputed Provident Fund demand under appeal 1.88 0.84
Disputed ESI demand under appeal - 0.26
Excise Demand, pending show cause 20.00 20.00
(ii) Estimated amount of contracts remaining to be executed on Capital
Account and not provided for (Net of Advances) - Rs. 1434.96 Lacs
(Previous Year Rs. 8,008.36 Lacs).
8. In the opinion of the Board of Directors, the Current Assets, Loans &
Advances have a value on realisation in the ordinary course of business
at least equal to the amount at which they are stated in the accounts.
Adequate provisions have been made for all known losses and
liabilities.
9. Certain balances of Trade Payable, Trade Receivables and Advances are
subject to confirmation and reconciliation. Advance from Parties
includes Rs. 74.84 Lacs (P.Y. Rs. 185.68 Lacs) being certain receipts
lying under suspense account in absence of information as to the
credits in the bank account.
10. RESEARCH AND DEVELOPMENT EXPENSES
Research and Development expenses aggregating to Rs. 10.53 Lacs (P.Y.
Rs. 15.05 Lacs) in the nature of revenue expenditure have been included
under the appropriate account heads.
(viii) (a) The estimates of rate of escalation in salary considered in
actuarial valuation, take into account inflation,
seniority, promotion and other relevant factors including supply and
demand in the employment market.
(b) The discounting rate is considered based on market yield on
government bonds having currency and terms consistent with the currency
in terms of the post employment benefit obligations.
(c) Expected rate of return assumed by the insurance company is
generally based on their investment pattern as stipulated by the
Government of India.
(ix) The above information is certified by the actuary.
(x) The Company expects to contribute Rs. 42.37 Lacs to the Gratuity
Fund managed by the Life Insurance Corporation of India during the
Financial Year 2015-2016.
11. SEGMENT REPORTING
i) Business segments : Based on the synergies and in terms of
Accounting Standard - 17, the Company is mainly engaged in the business
segment of manufacture & sale of Ferro Alloys and Iron & Steel
Products. The risks and returns of Captive Power Plant is directly
associated with the manufacturing operations of Ferro Alloys and hence
treated as a part of Ferro Alloys segment.
(i) Name of the related parties where control exists irrespective of
whether transactions have occurred or not
(a) Enterprise on which the Company has control
SKP Overseas Pte Ltd. Wholly Owned Subsidiary
PT Bara Prima Mandiri
Subsidiary of SKP Overseas Pte. Ltd.
(b) Entities/Individuals owning directly or indirectly an
interest in the voting power that gives them control
A.B Infratel Pvt. Ltd.
Gannath Commerce Pvt. Ltd.
Mahabala Merchants Pvt. Ltd.
Narmada Rivers Resources Pvt. Ltd.
Relybulls Derivatives and Commodities Pvt. Ltd.
SBM Steels Pvt. Ltd.
SKP Aviation Services Ltd.
Gajavakra Merchandise Pvt. Ltd.
(ii) Names of the other related parties with whom transactions have
taken place during the year
(a) Key Managerial Personnel
Mr. Rohit Patni
Mr. Dinesh Biyanee
Mr. Vipul Jain
Mr. Anil Prasad Shaw
(b) Relatives of Key Managerial Person
Mr. Suresh Kumar Patni
Mr. Ankit Patni
Mrs. Sarita Patni
(c) Enterprises owned or significantly influenced by the Key
Managerial Personnel or their relatives
Impex Metal & Ferro Alloys Ltd.
Impex Ferro Tech Ltd.
Ankit Metal & Power Ltd.
Whitestone Suppliers Pvt. Ltd.
Vasupujya Enterprises Pvt. Ltd.
Marble Arch Properties Pvt. Ltd.
SKP Power Ventures Ltd.
Poddar Mech Tech Services Pvt. Ltd.
Suanvi Trading & Investment Co. Pvt. Ltd.
Shreyansh Leafin Pvt. Ltd.
Relybulls Stock Broking Pvt. Ltd.
Sarita Steel & Power Ltd.
Shubham Complex Pvt. Ltd.
Gajkarna Merchandise Pvt. Ltd.
Astabhuja Properties Pvt. Ltd.
The Company has not made any remittance in foreign currencies on
account of dividend during the year and does not have information as to
the extent to which remittance in foreign currencies on account of
dividends have been made on behalf of non - resident shareholders.
12. The Company has entered into an agreement dated 19th February, 2015,
for the sale, transfer or otherwise disposal of Company's Manufacturing
Unit at Jajpur, Odisha as a going concern to M/s Balasore Alloys Ltd.
on slump sale basis. Pending compliance of certain conditions
precedent to tha said agreement, the effect of the said agreement has
not been given in these accounts and the said assets are continued to
be shown under Fixed Assets instead of assets held for disposal. These
have consequential impact on the reported financials which remains
unascertained.
13. The operations of the Company are severely impacted by weak steel
industry scenario and lack of demand for Company's finished product .
The Company has incurred loss after tax of Rs. 35,283.46 Lacs. and
accumulated loss as on 31st March, 2015 is Rs. 32,138.32 Lacs which is
in excess of 50% of the net worth of the company. As a part of its
financial revival process, the lenders of the company has already
approved CDR package (as referred in note no 28 above). The Company has
continuous support from the promoters and has put in place measures for
revival and cost reduction. Considering above initiative of the
company and given the overall position in India, the financial
statements have been prepared under Going Concern basis.
14.Previous year's figures have been reworked, regrouped, rearranged
and reclassified wherever considered necessary to conform to this year's
classification. Accordingly, amounts and other disclosures for the
preceding year are included as an integral part of the current year
financial statements and are to be read in relation to amounts and
other disclosures relating to the current year.
Mar 31, 2014
1 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. 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 amount. The distribution
will be in proportion to the number of Equity Shares held by the share
holders.
2 As per the CDR Package approved by CDR Empowered Group (Refer Note
No. 28) on March 24, 2014, the Company has during the year received
unsecured loan amounting to Rs. 4,653 Lacs (Refer Note No. 4), which is
to be converted to Equity by March 31, 2015. The conversion price will
be determined in accordance with the SEBI (Issue of Capital and
Disclosure Requirements) Regulations.
3 Working Capital Term Loan :
Upon implementaion of the CDR Package (Refer Note No. 28), the
overdrawn portion of the Cash Credit Accounts of the Company has been
carved out into separate Working Capital Term Loans (WCTL).
4 Funded Interest Term Loan :
Upon implementaion of the CDR Package (Refer Note No. 28), funding of
interest has been provided for :
* Interest on existing term loans for a period of 24 months from the
Cut-Off Date i.e from October 01, 2013 to September 30, 2015;
* Interest on WCTL for a period of 24 months from the Cut-Off Date i.e
from October 01, 2013 to September 30, 2015;
* Interest on residual cash credit limit for a period of 9 months from
the Cut-Off Date i.e from October 01, 2013 to June 30, 2014;
5 Details of security :
(i) In terms of the CDR package, Rupee Term Loans, Working Capital Term
Loans, Funded Interest Term Loans and Working Capital Loan (Refer Note
No. 7) are pooled together and secured as under:
a) First pari-passu charge on the entire Fixed Assets of the Company
(excluding value of vehicles), both present and future, including
equitable mortgage of factory land & building at Bishnupur (West
Bengal), Jajpur (Odisha) and Haldia (West Bengal). Also, secured by way
of mortgage on Freehold land at New Town, District : North 24 Parganas
measuring 50 Cottahs.
b First pari-passu charge on the entire Current Assets of the Company
comprised of stock of raw materials, semi finished and finished goods
and book debts, outstanding moneys, receivables, both present and
future pertaining to the Company''s manufacturing units/divisions at
Bishnupur (West Bengal), Jajpur (Odisha) and Haldia (West Bengal) and
at other Units.
c) Collateral security by equitable mortgage on Land & Building at
1/26, Vidyadhar Nagar, Jaipur, Rajasthan held in the name of Shubham
Complex Pvt. Ltd., Office space measuring 835 sq. ft. located at Flat
no. 21B, 4th Floor, Bowbazar, 35, C.R. Avenue, Kolkata-12, held in the
name of Mr. S.K.Patni and Flat No. A-52, Block-A, 35, Dr. Abani Dutta
Road, Salkia, Howrah, held in the name of Mr. Rohit Patni.
d) Pledge of 100% of the promoter''s shares representing 72% of the paid
up Capital of the Company on pari passu basis (pending creation).
e) Personal Guarantee of the Promoters - Mr. S.K.Patni, Mr. Rohit Patni
and Mr. Ankit Patni.
f) Corporate Guarantee of the Group Companies - Vasupujya Enterprises
Pvt. Ltd., Shubham Complex Pvt. Ltd., Poddar Mech Tech Services Pvt.
Ltd., Invesco Finance Pvt. Ltd. and Suanvi Trading and Investment Co.
Pvt. Ltd.
(ii) Loans against Vehicles & Equipments are secured by way of
hypothecation of the underlying asset financed.
(D) Terms of Repayment of Loans :
(i) Terms of Repayment of Rupee Term Loans availed for Haldia Project,
33 MVA Furnace and Stainless Steel Plant of the Company and Working
Capital Term Loan :
Upon implementaion of the CDR Package, the existing Rupee Term Loan
amounting to Rs. 32,434.42 lacs in respect of Haldia Project, 33 MVA
Furnace and Stainless Steel Project and Working Capital Term Loan are
to be repaid over a period of 8 years by way of 32 structured quarterly
installments commencing from December 31, 2015 upto September 30, 2023
as per the Repayment Schedule given below. Further, such loans carry
the interest rate @ 11% p.a. linked to the Base Rate of the State Bank
of India, with annual reset option with the approval of CDR-EG.
(ii) Terms of Repayment of Term Loan availed for 67.5 MVA Captive Power
Plant project of the Company :
Upon implementaion of the CDR Package, the Rupee Term Loan amounting to
Rs. 26,410.32 lacs in respect of 67.5 MVA Captive Power Plant is to be
repaid by way of 38 equal quarterly installments commencing from
December 31, 2015 upto March 31, 2025. Further, the loan carries the
interest rate @ 11% p.a. linked to the Base Rate of the State Bank of
India, with annual reset option with the approval of CDR-EG.
(iii) Terms of Repayment of Funded Interest Term Loan :
Repayment of FITL is to be made in 18 equal quarterly installments
commencing from December 31, 2015 with the last installment due on
March 31, 2020. FITL carries interest @11% p.a. linked to the Base Rate
of the State Bank of India, with annual reset option with the approval
of CDR-EG.
(iv) Unsecured Loans from Related Parties (Interest free) are to be
converted into Equity by March 31, 2015 as per CDR package. [Refer Note
No. 2]
(v) Unsecured Loan from Body Corporates (Other than related parties)
aggregating to Rs. 6,487.34 Lacs (P.Y. Rs. 9,184.50 Lacs) are interest
free. Such loans are repayable at the option of the Company and are
stated by the management to be in the nature of Long-term borrowings.
(vi) Loans against Vehicles and Equipments are repayable by way of
Equated Monthly Installments subsequent to taking of such loan. The
original period of such loans is 3 years.
6 CORPORATE DEBT RESTRUCTURING
During the year, at the request of the Company, the Corporate Debt
Restructuring Proposal (CDR Proposal) was referred to CDR Empowered
Group (CDR EG) by the consortium of lenders led by State Bank of India
(SBI). The CDR Proposal as recommended by SBI was approved by CDR EG on
March 24, 2014 and communicated vide Letter of Approval dated 28th
March, 2014, as amended / modified from time to time. Under CDR
package, the Company''s debts were restructured / rescheduled and
additional credit facilities have been sanctioned as set out in the
said Letter of Approval. The cut off date for CDR package was September
30, 2013 and the implementation is under progress. Pending
implementation, the financial effect thereof has been taken into
accounts.
The CDR Package includes reliefs / measures such as reduction in
interest rates, funding of interest, rearrangement of securities etc.
The key features of the CDR Proposal are as follows:
(i) Repayment of Rupee Term Loans (RTL) (except term loan for Captive
Power Plant of the Company) after moratorium of 2 years from the
cut-off date in 32 structured quarterly installments commencing from
December 31, 2015 to September 30, 2023.
(ii) Repayment of Rupee Term Loans for Captive Power Plant of the
Company after moratorium of 2 years from the cut-off date in 38
structured quarterly installments commencing from December 31, 2015 to
March 31, 2025.
(iii) Conversion of various irregular/outstanding/devolved financial
facilities into Working Capital Term Loan (''WCTL''). Repayment of WCTL
after moratorium period of 2 years from cut-off date in 32 structured
quarterly installments commencing from December 31, 2015 to September
30, 2023.
(iv) Restructuring of existing fund based and non fund based financial
facilities.
(v) Interest on RTL and WCTL during the moratorium period of 2 years
from cut-off date and interest on Cash Credit limit for a period of 9
months from the cut-off date shall be converted to FITL. Repayment of
FITL would be done in 18 equal quarterly installments commencing from
December 31, 2015 to March 31, 2020.
(vi) The rate of interest on RTL, WCTL, FITL and Fund Based Working
Capital Facilities shall be 11% (linked to the base rate of SBI) with
the right to reset the rate of the Term loan(s) and FITL every year
with the approval of CDR-EG.
(vii) Waiver of penal interest for irregularities in the Cash Credit
accounts for the period from cut-off date to the date of implementation
of the package.
(viii) Contribution of Rs. 5,664 lacs in the Company by the promoters
in lieu of bank sacrifices and Rs. 8,577 lacs to meet the additional
cost over run towards the Captive Power Plant project of the Company.
The contribution is to be brought initially in the form of unsecured
loan by September 30, 2014 and the same is to be converted into equity
by March 31, 2015.
(ix) The CDR Package as well as the provisions of the Master Circular
on Corporate Debt Restructuring issued by the Reserve Bank of India,
gives a right to the CDR Lenders to get a recompense of their waivers
and sacrifices made as part of the CDR Proposal. The recompense payable
by the Company is contingent on various factors, the outcome of which
currently is materially uncertain and hence the proportionate amount
payable as recompense has been treated as a contingent liability. The
aggregate present value of the outstanding sacrifice made/ to be made
by CDR Lenders as per the CDR package is approximately Rs. 69,987 lacs.
7 CONTINGENT LIABILITIES AND COMMITMENTS
(i) Contingent Liabilities not provided for in the books of accounts in
respect of :
(a) Bills discounted, outstanding as on 31st March, 2014 - Rs. 2,389.29
Lacs (P.Y. - Rs. 4,521.85 Lacs)
(b) Corporate Guarantee to Indian Overseas Bank, Hongkong to secure the
financial assistance to SKP Overseas Pte Ltd, a Wholly Owned Subsidary.
Amount payable by SKP Overseas Pte Ltd. to Indian Overseas Bank,
Hongkong as on 31st March, 2014 is USD. 4.20 Million (P.Y. USD. 5.35
Million).
(c) Right of Recompense to CDR Lenders for the relief and sacrifice
extended, subject to provisions of CDR Guidelines, amounting to Rs.
69,987 lacs (Refer Note No. 28)
(d) Claims against the Company not acknowledged as debt : (Rs. in Lacs)
31-03-2014 31-03-2013
Disputed Excise Duty / Service Tax
under appeal 720.86 546.07
Disputed Sales Tax/ VAT under appeal 2,393.98 836.77
Disputed VAT Refund claim under appeal 1,305.99 -
Disputed Entry Tax under appeal 16.03 16.03
Excise Duty demand for which show
cause notice issued 59.61 20.78
Disputed Provident Fund demand
under appeal 0.84 -
Disputed ESI demand under appeal 0.26 -
Excise Demand, pending show cause 20.00 20.00
Irregular Claim of Export Incentives,
pending show cause from DRI - 150.00
(ii) Estimated amount of contracts remaining to be executed on Capital
Account and not provided for (Net of Advances) - Rs. 8,008.36 Lacs
(P.Y. Rs. 9,551.28 Lacs).
(iii) Estimated amount of export obligations to be fulfilled in respect
of goods imported under Export Promotion Capital Goods Scheme (EPCG) -
Rs. Nil (P.Y. Rs. 1,849.09 Lacs).
NOTE 8
In the opinion of the Board of Directors, the Current Assets, Loans &
Advances have a value on realisation in the ordinary course of business
at least equal to the amount at which they are stated in the accounts.
Adequate provisions have been made for all known losses and
liabilities.
NOTE 9
Certain balances of Trade Payable, Trade Receivables and Advances are
subject to confirmation. Advance from Parties includes Rs. 185.68 lacs
(P.Y. Rs. 1,450.49 lacs) being certain receipts lying under suspense
account in absence of information as to the credits in the bank
account.
NOTE 10 RESEARCH AND DEVELOPMENT EXPENSES
Research and Development expenses aggregating to Rs. 15.05 Lacs ( P.Y.
Rs. 30.19 Lacs) in the nature of revenue expenditure have been included
under the appropriate account heads.
NOTE 11 EMPLOYEE BENEFITS
Disclosure pursuant to Accounting Standard - 15 (Revised) "Employee
Benefits" :
(a) Contribution to Defined Contribution Plan, recognised as expense
for the year is as under :
(viii) (a) The estimates of rate of escalation in salary considered in
actuarial valuation, takes into account inflation, seniority, promotion
and other relevant factors including supply and demand in the
employment market.
(b) The discounting rate is considered based on market yield on
government bonds having currency and terms consistent with the currency
in terms of the post employment benefit obligations.
(c) Expected rate of return assumed by the insurance company is
generally based on their investment pattern as stipulated by the
Government of India.
(ix) The above information is certified by the actuary.
(x) The Company expects to contribute Rs. 46.98 Lacs to the Gratuity
Fund managed by the Life Insurance Corporation of India during the
Financial Year 2014 - 2015.
NOTE 12 SEGMENT REPORTING
i) Business segments : Based on the synergies and in terms of
Accounting Standard - 17, the Company is mainly engaged in the business
segment of manufacture & sale of Ferro Alloys and Iron & Steel
Products. The risks and returns of Captive Power Plant is directly
associated with the manufacturing operations of Ferro Alloys and hence
treated as a part of Ferro Alloys segment.
NOTE 13 RELATED PARTY DISCLOSURE
i) Name of the related parties where control exists irrespective of
whether transactions have occurred or not
(a) Enterprise on which the Company has control
SKP Overseas Pte Ltd. Wholly Owned Subsidiary
PT Bara Prima Mandiri Subsidiary of SKP Overseas Pte Ltd.
(b) Entities / Individuals owning directly or indirectly an interest in
the voting power that gives them control
None
ii) Names of the other related parties with whom transactions have
taken place during the year
(a) Key Managerial Personnel Mr. Suresh Kumar Patni
Mr. Rohit Patni
Mr. Dinesh Biyanee
(b) Relatives of Key Managerial Person Mr. Ankit Patni
Mrs. Sarita Patni
(c) Enterprises owned or significantly
influenced by KMP or their relatives
Impex Metal & Ferro Alloys Ltd.
Impex Ferro Tech Ltd.
Ankit Metal & Power Ltd.
Nucore Exports Pvt. Ltd.
Arthodock Vinimay Pvt. Ltd.
Whitestone Suppliers Pvt. Ltd.
Vasupujya Enterprises Pvt. Ltd.
Marble Arch Properties Pvt. Ltd.
SKP Power Ventures Ltd.
VNG Mercantiles Pvt. Ltd.
Invesco Finance Pvt. Ltd.
Poddar Mech Tech Services Pvt. Ltd.
Suanvi Trading & Investment Co.Pvt. Ltd.
Shreyansh Leafin Pvt. Ltd.
Relybulls Stock Broking Pvt. Ltd.
Sarita Steel & Power Ltd.
Shubham Complex Pvt. Ltd.
NOTE 14
Exceptional Item in earlier year represents provision for additional
power charges on retrospective revision of power tariff, net of waiver
of Electricity Duty and Power Incentive recognised, on receipt of
Eligibility Certificate, under the West Bengal Incentive Scheme 2000
and other approvals. The Current tax figure of P.Y. is net of Rs.
863.33 Lacs, being the tax effect on the Exceptional item.
NOTE 15
The Company has not made any remittance in foreign currencies on
account of dividend during the year and does not have information as to
the extent to which remittance in foreign currencies on account of
dividends have been made on behalf of non - resident shareholders.
NOTE 16
The Ministry of Corporate Affairs, Government of India, vide General
Circular No. 2 and 3 dated 8th February, 2011 and 21st February, 2011
respectively read with General Circular No. 08/2014 dated 4th April,
2014 has granted a general exemption from compliance with Section 212
of the Companies Act, 1956, subject to fulfilment of conditions
stipulated in the circular. The Company has satisfied the conditions
stipulated in the circular and hence is entitled to the exemption.
Necessary information relating to the subsidiaries has been included in
the Consolidated Financial Statements.
NOTE 17
Previous year''s figures have been reworked, regrouped, rearranged and
reclassified wherever considered necessary to conform to this year''s
classification. Accordingly, amounts and other disclosures for the
preceding year are included as an integral part of the current year
financial statements and are to be read in relation to amounts and
other disclosures relating to the current year.
Mar 31, 2013
NOTE 1
In the opinion of the Board of Directors, the Current Assets, Loans &
Advances have a value on realisation in the ordinary course of business
at least equal to the amount at which they are stated in the accounts.
Adequate provisions have been made for all known losses and
liabilities.
NOTE 2
Certain balances of Sundry Creditors, Sundry Debtors, Unsecured Loans
and Advances are subject to confirmation.
NOTE 3 RESEARCH AND DEVELOPMENT EXPENSES
Research and Development expenses aggregating to Rs. 30.19 Lacs ( P.Y. Rs.
17.84 Lacs) in the nature of revenue expenditure have been included
underthe appropriate account heads.
NOTE 4 SEGMENT REPORTING
(i) Business segments : Based on the synergies and in terms of
Accounting Standard -17, the Company is mainly engaged in the business
segment of manufacture & sale of Ferro Alloys and Iron & Steel
Products. The risks and returns of Captive Power Plant is directly
associated with the manufacturing operations of Ferro Alloys and hence
treated as a part of Ferro Alloys segment.
(ii) Geographical segments: The Company''s secondary geographical
segments have been identified based on the location of customers and
are disclosed based on revenues within India and revenues outside
India. Secondary segment assets are based on the location of such
asset.
NOTE 5 RELATED PARTY DISCLOSURE
i) Name of the related parties where control exists irrespective of
whether transactions have occurred or not
(a) Enterprise on which the Company has control
SKP Overseas PTE Ltd. Wholly Owned Subsidiary
PT Bara Prima Mandiri Subsidiary of SKP Overseas PTE Ltd.
(b) Entities / Individuals owning directly or indirectly an interest in
the voting power that gives them control None
ii) Names of the other related parties with whom transactions have
taken place during the year
(a) Key Managerial Personnel (KMP) Mr. Suresh Kumar Patni
Mr.RohitPatni
Mr. Ankit Patni (upto 24.08.2012)
Mr.BinitJain
(b) Relatives of KMP Mrs. Sarita Patni
Mr. Ankit Patni (from 25.08.2012)
(c) Enterprises owned or significantly influenced by KMP or their
relatives Arin Minerals Pvt. Ltd.
Impex Metal & Ferro Alloys Ltd.
ImpexFerro Tech Ltd.
Ankit Metal & Power Ltd.
Nucore Exports Pvt. Ltd.
ArthodockVinimayPvtLtd.
Whitestone Suppliers Pvt. Ltd.
Vasupujya Enterprises Pvt. Ltd.
Marble Arch Properties Pvt. Ltd.
SKPPowerVenturesLtd.
VNGMercantilesPvtLtd.
Invesco Finance Pvt. Ltd.
PoddarMech Tech Services Pvt. Ltd.
Suanvi Trading & Investment Co. Pvt. Ltd.
HiraConcastLtd.
Impex Steel Ltd.
ShreyanshLeafinPvtLtd.
MahabalilspatPvtLtd.
SKP Stock Broking Pvt. Ltd.
Sarita Steel & Power Ltd.
Shubham Complex Pvt. Ltd.
NOTE 6
Exceptional Item represents provision for additional power charges for
the period upto 31st March, 2012 on retrospective revision of power
tariff, net of waiver of Electricity Duty and Power Incentive
recognised, on receipt during the current year of Eligibilty
Certificate, under the West Bengal Incentive Scheme 2000 and other
approvals. Since the exceptional item relates to the previous periods,
the management treated the same as a rare circumstance and, to reflect
the true and fair representation of the performance of the Company for
the year, considered it appropriate that the profits after tax be
presented before the exceptional item, and then give effect to the
exceptional item instead of making disclosure as per the currentformat
in Part-ll of Schedule VI (Revised) to the Companies Act, 1956. The
Current taxfigure is net ofRs.863.33 Lacs, being the tax effect on the
Exceptional item.
NOTE 7
Effective 1st April 2012, the Company has adopted the principles of
Hedge Accounting as set out in Accounting Standard (AS) 30 on Financial
Instruments: Recognition and Measurement, in respect of foreign
exchange forward contracts which have been taken against forecasted
transactions and which are not covered by the requirements of
Accounting Standard (AS) 11- ''The Effects of changes in Foreign
Exchange Rates''. Accordingly, net loss of Rs. 110.48 lacs arising on fair
valuation of outstanding derivatives as on 31st March 2013 that are
designated as effective cash flow hedges has been adjusted against
Hedging Reserve.
NOTE 8
The Company has not made any remittance in foreign currencies on
account of dividend during the year and does not have information as to
the extent to which remittance in foreign currencies on account of
dividends have been made on behalf of non-resident shareholders.
NOTE 9
Previous year''s figures have been reworked, regrouped, rearranged and
reclassified wherever considered necessary to conform to this year''s
classification. Accordingly, amounts and other disclosures for the
preceding year are included as an integral part of the current year
financial statements and are to be read in relation to amounts and
other disclosures relating to the current year.
Mar 31, 2012
INCHED CONTINGENT LIABILITIES AND COMMITMENTS
(i) Contingent Liabilities not provided for in the books of accounts in
respect of: -
(a) Bills discounted, outstanding as on 31st March, 2012 Rs.6,097.24 Lacs
(P.Y - Rs. 892.70 Lacs)
(b) Corporate Guarantee is given to Indian Overseas Bank, Hongkong to
secure the financial assistance to SKP Overseas Pte Ltd., a Wholly
Owned Subsidiary. Amount payable by SKP Overseas Pte Ltd. to Indian
Overseas Bank, Hongkong as on 31st March, 2012 is USD 8.35 Million
(P.Y.-USD 8.35 Million).
(c) Claims agamst the Company not acknowledged as debt :
(Rs.in Lacs)
31-03-2012 31-03-2011
Disputed Excise Duty under appeal 576.91 614.99
Disputed Sales Tax/VAT under appeal 533.95 334.23
Disputed Entry Tax under appeal 0.70 1.94
Disputed Income Tax Demands
under appeal 21.68 137.80
Excise Duty demand for which
show cause notice issuld 4.31 34.96
Claim under Workmens'
Compensation Act - 4.99
Disputed ESI under Settlement
Commission 10.25 -
Irregular Claim of Export
Incentives, pending show
cause from DRI 150.00 -
(ii) Estimated amount of contracts remaining to be executed on Capital
Account and not provided for (Net of Advances) - Rs. 1 5.1 55.45 Lacs
(P.Y.-Rs. 1,1 07.32 Lacs).
(iii) Estimated amount of export obligations to be fulfilled in respect
of goods imported under Duty Free Import Authorisation Scheme - Rs.
988.22 Lacs (P.Y. - Rs. 862.53 Lacs) and under Export Promotion Capital
Goods Scheme (EPCG) - Rs. 4,885.35 Lacs (P.Y. - Rs. Nil).
In the opinion of the Board of Directors, the Current Assets, Loans &
Advances have a value on realisation in the ordinary course of business
at least equal to the amount at which they are stated in the accounts.
Adequate provisions have been made for all known losses and
liabilities.
Certain balances of Sundry Creditors, Sundry Debtors, Unsecured Loans
and Advances are subject to confirmation.
i Note B RESEARCH AND DEVELOPMENT EXPENSES]
Research and Development expenses aggregating to Rs. 17.84 Lacs (P.Y.
- Rs. 8.01 Lacs) in the nature of revenue expenditure have been included
under the appropriate account heads.
i Note B EMPLOYEE BENEFITS]
Disclosure pursuant to Accounting Standard - 15 (Revised)" Employee
Benefits" : Contribution to Defined Contribution Plan, recognised as
expense for the year is as under:
Employer's Contribution to Provident and Other Fund Rs. 80.33 52.42
The employees' gratuity fund scheme managed by a Trust is a defined
benefit plan. The present value of obligation is determined based on
the actuarial valuation using the Projected Unit Credit Method as on
31st March, 2012 which recognises each period of service as giving rise
to additional unit of employee benefit entitlement and measures each
unit separately to build up the final obligation.
The Company has not made any remittance in foreign currencies on
account of dividend during the year and does not have information as to
the extent to which remittance in foreign currencies on account of
dividends have been made on behalf of non-resident shareholders.
The Financial Statements for the year ended 31st March, 2011 had been
prepared as per the then applicable, pre-revised Schedule VI to the
Companies Act, 1956. The financial statements for the year ended 31 st
March, 2012 are prepared as per Revised Schedule VI. Accordingly, the
previous year figures have also been reclassified to conform to this
year's classification. The adoption of Revised Schedule VI for previous
year figures does not impact recognition and measurement principles
followed for preparation of financial statements.
Mar 31, 2011
1. Contingent Liabilities not provided for in the books of accounts in
respect of :
a) Bank Guarantees - Rs. 53,088,850 (P.Y. - Rs. 35,080,618).
b) Bills discounted with Banks, outstanding as on 31st March, 2011 Rs.
892,709,093 (P.Y. - Rs. 853,625,986).
c) Letters of Credit opened in favour of suppliers, outstanding as on
31st March, 2011 - Rs. 67,529,725 (P.Y. - Rs. 338,907,794).
d) Corporate Guarantee given to Indian Overseas Bank, Hongkong to
secure the financial assistance to SKP Overseas Pte Ltd, a wholly owned
subsidary, amounting to USD 15 million (P.Y. - USD 15 million). Amount
payable by SKP Overseas Pte Ltd. to Indian Overseas Bank, Hongkong as
on 31st March, 2011 is USD. 8.35 Million (P.Y. - USD 8.5 Million).
2. Estimated amount of contracts remaining to be executed on Capital
Account and not provided for (Net of Advances) - Rs. 110,732,188 (P.Y.
- Rs. 454,328,844).
3. Estimated amount of export obligation to be fulfilled in respect of
goods imported under Duty Free Import Authorisation Scheme - Rs. 862.53
lacs. (P.Y. - Rs. 871.99 lacs)
4. During the year, the company has changed its accounting policy
relating to accounting of share issue expenses from writing off 1/5th
of the expenditure every year to adjusting the same against the balance
available in Securities Premium Account in line with Section 78 of the
Companies Act,1956. Had there been no change in the policy, the profit
for the year would have been lower by Rs. 1,078,823.
5. In the opinion of the Board of Directors, the Current Assets, Loans
& Advances have a value on realisation in the ordinary course of
business at least equal to the amount at which they are stated in the
accounts. Adequate provisions have been made for all known losses and
liabilities.
6. Securities for Loans :
i) Term Loans from banks (other than Stainless Steel Project and
Captive Power Plant) are secured by way of :
a) 1st charge on pari passu basis on the entire Fixed Assets of the
Company, both present and future, including equitable mortgage of
factory land & building at Bishnupur (West Bengal) and Jajpur (Orissa)
and exclusive 1st charge over Haldia where UBI and SBI are the Term
Lenders.
b) Charge on the entire cash flows of the Company on pari passu basis.
c) Collateral security by equitable mortgage of landed properties with
building at Jaipur held in the name of Shubham Complex (P) Ltd.,
equitable mortgage of office space at Kolkata and extention of charge
over all the Current assets of the Company pertaining to all the units.
d) Personal Guarantee of the Promoter Directors & Corporate Guarantee
of the group companies.
ii) Term loans from banks for Stainless Steel Project of the Company at
Bishnupur (West Bengal) are secured by pari passu 1st charge over the
entire fixed assets of the said project and pari passu 2nd charge on
all the current assets of the said Project.
iii) Term loans from banks for Captive Power Plant of the Company at
Jajpur (Orissa) are secured by pari passu 1st charge over the entire
fixed assets of the said project and pari passu 2nd charge on all the
current assets of the said project.
iv) Working Capital Loans (Fund Based Non Fund Based) are secured by
way of :
a) Hypothecation of current assets including inventory, receivables
etc., of the Company at Jajpur, Bishnupur and Haldia on pari passu
basis.
b) Collateral security by equitable mortgage of landed properties with
building at Jaipur held in the name of Shubham Complex (P) Ltd.,
equitable mortgage of office space at Kolkata and extention of charge
over all the fixed assets of the Company, both present and future,
located at Bishnupur (West Bengal) and Jajpur (Orissa) and exclusive
charge over Haldia where UBI and SBI are the Term Lenders.
c) Personal Guarantee of the Promoter Directors & Corporate Guarantee
of the group companies.
7. During the year, the Company has issued and allotted 15,793,178
equity shares of Rs. 10 each on rights basis at a premium of Rs. 50 per
share, aggregating to Rs. 9,475.91 Lacs to part finance Ferro Alloys
Plant at Haldia and issue related expenses. The proceeds of the issue
have been utilised on the objects of the issue.
8. Certain balances of Sundry Creditors, Sundry Debtors, Unsecured
Loans and Advances are subject to confirmation.
9. Sundry Debtors include Rs. 241,219,735 (P.Y. - Rs. 194,068,926)
covered by letters of credit in favour of the Company.
10. The Company has accounted for Interest Subsidy recievable from the
Government of West Bengal under West Bengal Incentive Scheme
aggregating to Rs. NIL (P.Y. - Rs. 42,004,699) including Rs. NIL (P.Y.
- Rs. 35,863,351) for earlier years. The said amount was recognised as
net off with interest and finance charges in Schedule 21.
b) The computation of net profit for the purpose of Director's
Remuneration under Section 349 of Companies Act, 1956 has not been
enumerated since no commission has been paid to any of the directors.
Fixed managerial remuneration has been paid to the wholetime directors
within the limit specified in Schedule XIII of the Companies Act, 1956.
11. Amount of excise duty on variation in stocks shown in Schedule 18
represents differential excise duty on opening and closing stock of
finished goods.
12. The Company has commenced commercial production of four Furnaces
out of six Furnaces of 9 MVA each at its Haldia Unit. The 1st Furnace
started from 10th June, 2010 ; 2nd Furnace from 10th August, 2010 ; 3rd
and 4th Furnace from 23rd February, 2011. Accordingly, pre-operative
expenses relating to the said project have been capitalised by transfer
to Factory Shed & Building, Plant & Machinery and Electrical
Installations in proportion to their respective costs.
13. Research and Development expenses aggregating to Rs. 801,584 (P.Y.
- Rs. 795,500) in the nature of revenue expenditure have been included
under the appropriate account heads.
14. Disclosure pursuant to Accounting Standard - 15 ( Revised)
"Employee Benefits" :
a. Defined Contribution Plan : Amount of Rs. 5,241,575 (P.Y. - Rs.
3,202,466) is recognised as expense and included in "Payments to &
Provisions For Employees" in Schedule -19 of the Profit & Loss Account.
b. Defined Benefit Plan :
The employee gratuity fund scheme managed by a Trust is a defined
benefit plan. The present value of obligation is determined based on
the actuarial valuation using the Projected Unit Credit Method as on
31st March, 2011 which recognises each period of service as giving rise
to additional unit of employee benefit entitlement and measures each
unit separately to build up the final obligation.
viii. a) The estimates of rate of escalation in salary considered in
actuarial valuation, take into account inflation, seniority, promotion
and other relevant factors including supply and demand in the
employment market.
b) The discounting rate is considered based on market yield on
government bonds having currency and terms consistent with the currency
in terms of the post employment benefit obligations.
c) Expected rate of return assumed by the insurance company is
generally based on their investment pattern as stipulated by the
Government of India.
ix. The above information is certified by the actuary.
x. The Company expects to contribute Rs. 8.5 Lacs to the Gratuity Fund
managed by the Life Insurance Corporation of India during the financial
year 2011-12.
15. A) Business segments : Based on the synergies, risks and returns
associated with business operations and in terms of Accounting Standard
- 17, the Company is predominantly engaged in a single reportable
segment of 'Ferro Alloys' during the year. Trading of Iron and Steel &
Minerals has not been considered as a separate reportable segment since
segment revenue/result from the same is less than 10% of the total
revenue/result.
B) Geographical segments : The Company's secondary geographical
segments have been identified based on the location of customers and
are disclosed based on revenues within India and revenues outside
India. Secondary segment assets and liabilities are based on the
location of such asset/liability.
16. Related Party Disclosures
i) Name of the related parties where control exists irrespective of
whether transactions have occurred or not
a) Enterprise on which the Company has control
SKP Overseas Pte. Ltd. Wholly Owned Subsidiary
b) Entities/Individuals owning directly or indirectly an interest in
the voting power that gives them control None
c) Joint Ventures
Rohit Persia Mines & Industries PJSC
ii) Names of the other related parties with whom transactions have
taken place during the year
a) Key Managerial Personnel Suresh Kumar Patni
Rohit Patni
Ankit Patni
Binit Jain
b) Relatives of Key Managerial Person Sarita Patni
c) Enterprises owned or significantly influenced by the Key Managerial
Personnel or their relatives
Arin Minerals Pvt. Ltd.
Impex Metal & Ferro Alloys Ltd.
Impex Ferro Tech Ltd.
Ankit Metal & Power Ltd.
Nucore Exports Pvt. Ltd.
Arthodock Vinimay Pvt. Ltd.
Whitestone Suppliers Pvt. Ltd.
Vasupujya Enterprises Pvt. Ltd.
Marble Arch Properties Pvt. Ltd.
SKP Power Ventures Ltd.
SKP Aviation Services Ltd.
VNG Mercantiles Pvt. Ltd.
Invesco Finance Pvt. Ltd.
Poddar Mech Tech Services Pvt. Ltd.
Suanvi Trading & Investment Co. Pvt. Ltd.
Hira Concast Ltd.
Impex Steel Ltd.
17. The Company has made current tax provision for Minimum Alternate
Tax (MAT) under Section 115JB of the Income Tax Act, 1961. As per the
provisions of Section 115JAA, MAT Credit receivable for the amount in
excess over tax liability as per normal computation has been recognised
as an asset. MAT credit is recognised as an asset in accordance with
the recommendations contained in Guidance Note issued by the Institute
of Chartered Accountants of India. The said asset is created by way of
a credit to the Profit & Loss Account and shown as MAT Credit
Entitlement.
18. The Company has not made any remittance in foreign currencies on
account of dividend during the year and does not have information as to
the extent to which remittance in foreign currencies on account of
dividends have been made on behalf of non-resident shareholders.
19. The Company has entered into a Joint Venture namely "Rohit Persia
Mines and Industries PJSC" with 49% interest to acquire mines in Iran.
The said Joint Venture is yet to acquire the same. The Company has
invested a sum of Rs. 6,454,933 (P.Y. - Rs. 6,181,519) (including
advances for supplies) as on 31st March, 2011.
20. There are no transactions (other than transactions with
subsidiaries as given in para 17 above) which are required to be
disclosed under Clause 32 of the Listing Agreement.
21. Additional information pursuant to the provisions of paragraphs 3
& 4 of Part II of Schedule VI to the Companies Act,1956.
A) The Ministry of Corporate Affairs, Government of India vide its
General Notification No. S.O.301 (E) dated 8th February, 2011 issued
under Section 211 (3) of the Companies Act, 1956 has exempted certain
classes of companies from disclosing certain information in their
Profit & Loss Account. The Company being an 'Export Oriented Company'
is entitled to the exemption. Accordingly, disclosures mandated by
paragraphs 3(i)(a), 3(ii)(a), 3(ii)(b) and 3(ii)(d) of Part II,
Schedule VI to the Companies Act, 1956 have not been provided.
B) Capacity & Production - Ferro Alloys
a) Licenced Capacity : N.A.
b) Installed Capacity : 239,542 MT Per Annum (P.Y. - 172,875 MT)
(Installed Capacity has been certified by the management and not
verified by the auditors being a technical matter)
c) Production : 181,360.04 MT (P. Y. - 142,289.25 MT)
22. Previous year's figures have been reworked, regrouped, rearranged
and reclassified wherever considered necessary. Accordingly, amounts
and other disclosures for the preceeding year are included as an
integral part of the current year financial statements and are to be
read in relation to the amounts and other disclosures relating to the
current year.
Mar 31, 2010
1. Contingent Liabilities not provided for in the books of accounts in
respect of:
a) Bank Guarantees - Rs. 35,080,618/- (Previous year - Rs. 846,000/-).
b) Bills discounted with Banks, outstanding as on 31st March, 2010 Rs.
853,625,986/- (Previous year - Rs. 680,792,008/-).
c) Letters of Credit opened in favour of suppliers, outstanding as on
31st March, 2010 - Rs. 338,907,794/- (Previous year - Rs.
33,794,920/-).
d) Corporate Guarantee given to Indian Overseas Bank, Hongkong to
secure the financial assistance to SKP Overseas Pte. Ltd., a wholly
owned subsidary, amounting to USD 15 million (Previous year - USD 15
million). Amount payable by SKP Overseas Pte. Ltd. to Indian Overseas
Bank, Hongkong as on 31st March, 2010 is USD 8.5 Million (Previous year
- USD 5 Million).
e) Claim against the Company not acknowledged as debt:
(Amounts in Rs.)
As at As at
31st March, 2010 31st March, 2009
Disputed Excise Duty under appeal 11,899,557 -
Deputed Sales Tax/VAT under appeal 6,396,795 1,749,295
Disputed Entry Tax under appeal 594,010 594,010
biiputed Excise Duty for which
appeals are pending 3,395,888 -
Disputed Sales Tax/VAT for which
appeals are pending 1,912,431 -
f) Excise Duty Liability arising out of search operation by the
Directorate General of Central Excise Intelligence. However, the
Company has paid under protest a sum of Rs. 15,000,000 pending issuance
of any show cause notice.
2. Estimated amount of contracts remaining to be executed on Capital
Account and not provided for (Net of Advances) - Rs. 454,328,844/-
(Previous year-Rs. 125,907,600/-).
3. In the opinion of the Board of Directors, the Current Assets, Loans
& Advances have a value on realisation in the ordinary course of
business at least equal to the amount at which they are stated in the
accounts. Adequate provisions have been made for all known losses and
liabilities.
4. Certain balances of Sundry Creditors, Sundry Debtors, Unsecured
Loans and Advances are subject to confirmation.
5. Draft Letter of Offer for issue of equity shares of the Company on
rights basis to the existing equity shareholders is pending approval
from Securities Exchange Board of India. The Company has received an
amount of Rs. 484,000,000 as share application money from the Promoter
Group against the proposed rights issue.
6. In the year 2007-08, the Company had issued 8,000,000 Preferential
Convertible Warrants (Exercise Price of Rs. 43 each) on preferential
basis to promoters & other strategic investors. Each warrant carried a
right to convert the same into one Equity Share of Rs.10 each at a
premium of Rs. 33 each [as per the formula prescribed under the SEBI
(DIP) guidelines] over a period of 18 months from the date of
allotment.
Of the above, 5,020,000 warrants were converted into the Equity Shares
during the year 2008-09. Warrent holders holding 2,980,000 warrants
expressed their inability to pay the remaining amount. Accordingly, the
Board of Directors forfeited the same and credited the amount of Rs.
12,814,000 received against those warrants to Capital Reserve.
7. Sundry Debtors include Rs. 194,068,926/- (Previous year - Rs.
275,901,296/-) covered by letters of credit in favour of the Company.
8. During the year, the Company has accounted for Interest Subsidy
recievable from the Government of West Bengal under West Bengal
Incentive Scheme aggregating to Rs. 42,004,699/- (Previous year - Nil)
including Rs. 35,863,351/- (Previous year - Nil) for earlier years. The
said amount recognised has been net off with interest and finance
charges in Schedule 21.
b) The computation of net profit for the purpose of Directors
Remuneration under Section 349 of Companies Act, 1956 has not been
enumerated since no commission has been paid to any of the directors.
Fixed managerial remuneration has been paid to the whole- time
directors as per Schedule XIII of the Companies Act, 1956.
9. Amount of excise duty on variation in stocks shown in Schedule 18
represents differential excise duty on opening and closing stock of
finished goods.
10. Research and Development expenses aggregating to Rs. 795,500/-
(Previous year - Rs. 657,829/-) in the nature of revenue expenditure
have been included under the appropriate account heads.
11. Disclosure pursuant to Accounting Standard-15 (Revised) "Employee
Benefits" :
a. Defined Contribution Plan : Amount of Rs. 3,202,466/- (Previous
year- Rs. 2,693,276/-) is recognised as expense and included in
"Payments to and Provisions For Employees" in Schedule -19 of the
Profit & Loss Account.
vii. a) The estimates of rate of escalation in salary considered in
actuarial valuation, take into account inflation, seniority, promotion
and other relevant factors including supply and demand in the
employment market.
b) The discounting rate is considered based on market yield on
government bonds having currency and terms consistent with the currency
in terms of the post employment benefit obligations.
c) Expected rate of return assumed by the insurance Company is
generally based on their investment pattern as stipulated by the
Government of India.
viii.The above information is certified by the actuary.
11. (A) Business Segments : Based on the synergies, risks and returns
associated with business operations and in terms of Accounting Standard
-17, the Company is predominantly engaged in a single reportable
segment of Ferro Alloys during the year. Trading of iron and steel &
minerals has not been considered as a separate reportable segment since
segment revenue/result from the same is less than 10% of the total
revenue/result.
12. Related Party Disclosures
i) Name of the related parties where control exists irrespective of
whether transactions have occurred or not:
a) Enterprise on which the Company has control
SKP Overseas Pte. Ltd. Wholly Owned Subsidiary
b) Entities/Individuals owning directly or
indirectly an
interest in the voting power that gives them
control None
c) Joint Ventures Rohit Persia Mines &
Industries PJSC
ii) Names of the other related parties with whom transactions have
taken place during the year:
a) Key Managerial Personnel Suresh Kumar Patni
Rohit Patni
Ankit Patni
Binit Jain
b) Relatives of Key Managerial Person Sarita Patni
c) Enterprises owned or significantly
influenced by the Key Managerial Personnel
or their relatives Arin Minerals Pvt. Ltd.
Impex Metal & Ferro
Alloys Ltd.
Impex Ferro Tech Ltd.
Ankit Metal Power Ltd.
Vasupujya Enterprises
(P) Ltd.
Marble Arch Properties
Pvt. Ltd.
SKP Power Ventures Ltd.
VNG Mercantiles Pvt.Ltd.
Invesco Finance Pvt.
Ltd.
PoddarMech Tech Services
(P) Ltd.
Suanvi Tradings
Investment Co. Pvt.
Ltd.
13. The Company has not made any remittance in foreign currencies on
account of dividend during the year and does not have information as to
the extent to which remittance in foreign currencies on account of
dividends have been made on behalf of non-resident shareholders.
14. The Company has entered into a Joint Venture namely "Rohit Persia
Mines and Industries PJSC" with 49% interest to acquire mines in Iran.
The said Joint Venture is yet to acquire the same. The Company has
invested a sum of Rs. 6,181,519/- (Previous year - Rs. 6,768,571/-)
(including advances for supplies) as on 31st March, 2010.
15. There are no transactions (other than transactions with
subsidiaries as given in para 17 above) which are required to be
disclosed under Clause 32 of the Listing Agreement.
16. Previous years figures have been re-worked, re-grouped,
re-arranged and re-classified wherever considered necessary.
Accordingly, amounts and other disclosures for the the preceeding year
are included as an integral part of the current year financial
statements and are to be read in relation to the amounts and other
disclosures relating to the current year.