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Notes to Accounts of Sandur Manganese & Iron Ores Ltd.

Mar 31, 2015

1.Contingent Liabilities and commitments (to the extent not provided for)

(i) Contingent Liabilities

a) Claims against the Company not acknowledged as debts:

Rs. lakh

Particulars As at 31.03.2015

Income tax (relating to disallowance of deduction) 1,322.71

Service tax (relating to applicability of tax) 293.35

Customs duty (relating to applicability of tax) -

Others (relating to provident fund and other matters) 22.85

Particulars As at 31.03.2014

Income tax (relating to disallowance of deduction) 924.10

Service tax (relating to applicability of tax) 293.35

Customs duty (relating to applicability of tax) 232.06

Others (relating to provident fund and other matters) 4.29

The above amounts have been arrived at based on the notice of demand or the Assessment Orders, as the case may be, and the Company is contesting these claims with the respective authorities. Outflows, if any, arising out of these claims would depend on the outcome of the decisions of the appellate authorities and the Company's rights for future appeals before the judiciary. No reimbursements are expected.

The Company has given the said guarantee in respect of fulfilment of the export obligations by the subsidiary company. There are no defaults as at the year end and no liability is expected.

2. Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

There are no micro and small enterprises to whom the Company owes dues which are outstanding as at the balance sheet date. The information regarding Micro Enterprises and Small Enterprises have been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

3. As per the draft rehabilitation scheme of Sandur Laminates Limited and Sandur Micro Circuits Limited, the Company has given an undertaking not to dispose of its share holdings in Sandur Laminates Limited and Sandur Micro Circuits Limited without prior approval of Board for Industrial and Financial reconstruction (BIFR).

4. Trade payables do not include any amount to be credited to the Investor Education and Protection Fund.

5. Employee benefit plans: a) Defined contribution plan

The Company makes Provident Fund, Superannuation Fund and Employee State Insurance Scheme contributions which are defined contribution plans, for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs.134.39 lakh (year ended 31 March 2014 - Rs.120.40 lakh) for provident fund contributions to SMIORE Provident Fund Trust and Rs.34.89 lakh (year ended 31 March 2014 Rs.30.14 lakh) for superannuation fund contributions in the statement of profit and loss as part of contribution to provident and other funds in note 22 and Rs.0.74 lakh (year ended 31 March 2014 -Rs.0.68 lakh) for employee state insurance scheme contribution included as part of Employee welfare expenses in note 22. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

In case of SMIORE Provident Fund Trust interest rate payable by the Trust to its beneficiaries is as notified by the Government. The Company has an obligation to make good the short fall, between the return from the investments of the trust and the notified interest rate and recognise such shortfall as an expense. Based on management assessment, there is no shortfall in the interest payable by the trust to the beneficiaries as on the balance sheet date.

b) Defined benefit plan - Funded

The Company makes annual contributions to an Insurance Managed fund to fund its gratuity liability. The scheme provides for lump sum payment to vested employees on retirement, death while in employment or on termination of employment as per the Company's Gratuity Scheme, vesting occurs upon completion of three years of service.

The following table sets out the funded status and amount recognised in the Company's financial statements for Gratuity.

Name of related parties and description of relationship

1 Holding Company None

2 Subsidiary Star Metallics and Power Private Limited

3 Enterprise having significant influence over the Company Skand Private Limited

4 Key Management Personnel (KMP) i) S.Y Ghorpade, Chairman & Managing Director

ii) Nazim Sheikh, Joint Managing Director

iii) S.H. Mohan, Executive Director (Project)

iv) S.R. Sridhar, Executive Director (Mines)

v) U.R. Acharya, Director (Commercial)

vi) K. Raman, Director (Finance)

5 Relative of KMP Aditya Shivrao Ghorpade

Dhananjai Shivrao Ghorpade

Mubeen A Sherif

As Lessor

The Company has entered into operating lease arrangements for certain surplus facilities. The lease is non-cancellable for a period of 3 years and is renewable by mutual consent.

As Lessee

The Company has entered into operating leases in respect of office premises and residential premise. The leasing arrangements are cancellable and are renewable by mutual consent. The lease rentals charged to the statement of profit and loss in respect of these leases amounts to Rs. 17.62 lakh (2013-14 : Rs. 21.79 lakh)

(a) Gross amount required to be spent by the company during the year Rs. 80.69 lakh.

(b) Amount spent during the year on : (included under expenditure on corporate social responsibility note 24)

6. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.


Mar 31, 2014

Note 1 - Contingent Liabilities and commitments (to the extent not provided for) (i) Contingent Liabilities

a) Claims against the Company not acknowledged as debts: As at As at Particulars 31.03.2014 31.03.2013 (Rs lakh) (Rs lakh)

Stamp duty on net present value includes maximum - 5,454.00 penalty of H4,545.00 lakh (relating to applicability of duty)

Income tax (relating to disallowance 924.10 924.10 of deduction)

Service tax (relating to applicability of tax) 316.64 316.64

Customs duty (relating to applicability of tax) 232.06 -

Others (relating to applicability of forest 4.29 2,144.60 lease rental and other matters)

The above amounts have been arrived at based on the notice of demand or the Assessment Orders, as the case may be, and the Company is contesting these claims with the respective authorities. Outflows, if any, arising out of these claims would depend on the outcome of the decisions of the appellate authorities and the Company''s rights for future appeals before the judiciary. No reimbursements are expected.

Note 2 - Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

There are no micro and small enterprises to whom the Company owes dues which are outstanding as at the balance sheet date. The information regarding Micro Enterprises and Small Enterprises have been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

Note 3 - Disclosures as per Clause 32 of the Listing Agreements with the Stock Exchanges Loans and advances in the nature of Loans given to subsidiary :

Note 4

As per the draft rehabilitation scheme of Sandur Laminates Limited and Sandur Micro Circuits Limited, the Company has given an undertaking not to dispose of its share holdings in Sandur laminates Limited and Sandur Micro Circuits Limited without prior approval of Board for Industrial and Financial reconstruction (BIFR).

Note 5

Trade payables do not include any amount to be credited to the Investor Education and Protection Fund.

Note 6 - Employee benefit plans:

a) Defined contribution plan

The Company makes Provident Fund, Superannuation Fund and Employee State Insurance Scheme contributions which are defined contribution plans, for qualifying employees. For the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised H120.40 lakh (2012-13 - H116.09 lakh) for provident fund contributions and H30.14 lakh (2012-13 H29.06 lakh) for superannuation fund contributions in the statement of profit and loss as part of contribution to provident and other funds in note 21 and H0.68 lakh (2012-13 - H0.67 lakh) for employee state insurance scheme contribution included as part of employee welfare expenses in note 21). The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

In case of SMIORE Provident Fund Trust interest rate payable by the Trust to its beneficiaries is as notified by the Government. The Company has an obligation to make good the short fall, between the return from the investments of trust and the notified interest rate and recognise such shortfall as an expense. Based on the actuarial valuation, there is no shortfall in the interest payable by the trust to the beneficiaries as on the balance sheet date.

b) Defined benefit plan - Funded

The Company makes annual contributions to an Insurance managed Fund. The scheme provides for lump sum payment to vested employees on retirement, death while in employment or on termination of employment as per the Company''s Gratuity Scheme, vesting occurs upon completion of three years of service.

The discount rate for defined benefit plan and other long term benefits is based on the prevailing market yields of Indian Government securities as at the balance sheet date for the estimated term of obligations. The estimate of future salary increases considered for defined benefits plan and other long term benefits takes into account the inflation, seniority, promotion, increments and other relevant factors.

Note 7 - Related party disclosures

Name of related parties and description of relationship

1 Holding Company None

2 Subsidiary Star Metallics and Power Private Ltd

3 Key Management Personnel (KMP) i) S. Y. Ghorpade, Chairman & Managing Director

ii) Nazim Sheikh, Joint Managing Director iii) S.H. Mohan, Executive Director (Projects) iv) S.R.Sridhar, Executive Director (Mines) v) U.R. Acharya, Director (Commercial) vi) K. Raman, Director (Finance)

4 Relative of KMP Aditya Shivrao Ghorpade Dhananjai Shivrao Ghorpade Mubeen Ahmed Sheriff (w.e.f 1 June 2013)

Note 1 : Primary business segments have been identified on the basis of distinguishable businesses in which the Company is engaged. Note 2 : Inter segment transfer from the mining segment is measured at cost.

b) The Company operates in a single geographical segment and accordingly, secondary segments for geographical segment, as envisaged in Accounting Standard - 17 on Segment Reporting are not applicable.

Note 8 - Operating lease disclosure:

The Company has entered into operating leases in respect of office premises and residential premise. The leasing arrangement is cancellable and is renewable by mutual consents. The lease rentals charged to the statement of profit and loss in respect of these leases amounts to H21.79 lakh (2012-13 H16.71 lakh)

NOTES:

a) Iron ore production excludes 405,856 tonnes (previous year: Nil tonnes) salvaged from waste dumps.

b) Silico Manganese production includes Nil tonnes (previous year 52 tonnes) salvaged from bunker.

c) Previous year figures are in brackets.

Note 9

Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

1 Name of Subsidiary Star Metallics and Power Private Ltd

2 Financial Year of the subsidiary ended on: 31 March 2014

3 Share of the subsidiary held on the above date:

a) Number of shares and face value 75,240,000 equity shares of Rs10/-each (fully paid up)

b) Extent of Holding 81.24%

4 Net aggregate amount of profit of the Subsidiary so far as they concern the members of The Sandur Manganese & Iron Ores Limited

a) Dealt with in the accounts of The Sandur Nil Manganese & Iron Ores Limited for the year ended 31 March 2014

b) Not dealt with in the accounts of The Sandur Loss of Rs-1958.73 Manganese & Iron Ores Limited for the year ended lakh 31 March 2014

5 Net aggregate amount of profit for previous financial years of the Subsidiary since it became a subsidiary so far as they concern the members of The Sandur Manganese & Iron Ores Limited

a) Dealt with in the accounts of The Sandur Nil Manganese & Iron Ores Limited for the year ended 31 March 2013

b) Not dealt with in the accounts of The Sandur Loss of Rs-798.83 Manganese & Iron Ores Limited for the year ended lakh 31 March 2013


Mar 31, 2013

Note 1 - Contingent Liabilities and commitments (to the extent not provided for) (i) Contingent Liabilities

a) Claims against the Company not acknowledged as debts:

As at 31.03.2013 As at 31.03.2012 Particulars Rs. lakh Rs. lakh

Stamp duty on net present value includes maximum penalty of 4,545.00 lakh

(relating to applicability of duty)

Income tax (relating to disallowance of deduction) 924.10 2,553.74

Service tax (relating to applicability of tax) 316.64 316.64

Others (relating to applicability of forest lease rental and other matters) 2,144.60 14.80

The above amounts have been arrived at based on the notice of demand or the Assessment Orders, as the case may be, and the Company is contesting these claims with the respective authorities. Outflows, if any, arising out of these claims would depend on the outcome of the decisions of the appellate authorities and the Company''s rights for future appeals before the judiciary. No reimbursements are expected.

Note 2 - Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

There are no micro and small enterprises to whom the Company owes dues which are outstanding as at the balance sheet date. The information regarding Micro Enterprises and Small Enterprises have been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

Note 3 - As per the draft rehabilitation scheme of Sandur Laminates Limited and Sandur Micro Circuits Limited, the Company has given an undertaking not to dispose of its share holdings in Sandur Laminates Limited and Sandur Micro Circuits Limited without prior approval of Board for Industrial and Financial reconstruction (BIFR).

Note 4 - Trade payables do not include any amount to be credited to the Investor Education and Protection Fund.

Note 5 - Employee benefit plans:

a) Defined contribution plan

The Company makes Provident Fund, Superannuation Fund and Employee State Insurance Scheme contributions which are defined contribution plans, for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs. 116.09 lakhs (Year ended March 31, 2012 - Rs. 133.18 lakhs) for provident fund contributions, Rs. 29.06 lakhs (Year ended March 31, 2012 Rs. 25.21 lakhs) for superannuation fund contributions and Rs. 0.67 lakhs (Year ended March 31, 2012 Rs. 0.64 lakhs) for employee state insurance scheme contributions in the statement of profit and loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

In case of SMIORE Provident Fund Trust interest rate payable by the Trust to its beneficiaries is as notified by the Government. The Company has an obligation to make good the short fall, between the return from the investments of trust and the notified interest rate and recognise such shortfall as an expense. Based on the actuarial valuation, there is no shortfall in the interest payable by the trust to the beneficiaries as on the balance sheet date.

b) Defined benefit plan - Funded

The Company makes annual contributions to an Insurance managed Fund. The scheme provides for lump sum payment to vested employees on retirement, death while in employment or on termination of employment as per the Company''s Gratuity Scheme, vesting occurs upon completion of three years of service.

Note 6 - Related party disclosures

Name of related parties and description of relationship

1 Holding Company None

2 Subsidiary Star Metallics and Power Private Limited

3 Key Management Personnel (KMP) i) S. Y. Ghorpade, Chairman & Managing Director

ii) Nazim Sheikh, Joint Managing Director (with effect from 9 April 2011) and Executive Director (up to 8 April 2011)

iii) S.H. Mohan, Technical Director

iv) S.R.Sridhar, Director (Mines)

v) U. R. Acharya, Director (Commercial) (with effect from 9 April 2011)

vi) K. Raman, Director (Finance) (with effect from 9 April 2011)

4 Relative of KMP i) Aditya Shivrao Ghorpade

ii) Dhananjaya Shivarao Ghorpade (with effect from 1 April 2011)

iii) Puneet Acharya (with effect from 1 April 2011 up to 31 October 2011)

Note 7 - Operating lease disclosure :

The Company has entered into operating leases in respect of office premises and residential premise. The leasing arrangement is cancellable and is renewable by mutual consents. The lease rentals charged to the statement of profit and loss in respect of these leases amounts to Rs.16.71 lakh (2011-12 Rs.14.40 lakh).

Note 8 - Accounting for Taxes on Income

a) During the year, the Company has provided for Minimum Alternative Tax (MAT) under section 115JB of the Income-tax Act, 1961 since the tax liability as per regular provisions of the Income-tax Act, 1961 is lower. Correspondingly, the Company has also claimed credit of Rs. 60 lakh (2011-12 Rs. Nil lakh) under section 115JAA of the said Act, which is disclosed as ''MAT credit entitlement'' in the statement of profit and loss.

b) Details of deferred tax assets/ (liabilities) are as below:

Note 9 - Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.


Mar 31, 2012

Note 1 - Contingent Liabilities and commitments (to the extent not provided for)

(i) Contingent Liabilities

a) Claims against the Company not acknowledged As at 31.03.2012 As at 31.03.2011 as debts Rs. lakh Rs. lakh

Stamp duty on net present value includes maximum penalty of 5,454.00 5,454.00 Rs. 4545.00 Lakh (relating to applicability of duty)

Income tax (relating to disallowance of deduction) 2,553.74 3,561.13

Service tax (relating to applicability of tax) 316.64 316.64

Others 14.80 14.80

The above amounts have been arrived at based on the notice of demand or the Assessment Orders, as the case may be, and the Company is contesting these claims with the respective authorities. Outflows, if any, arising out of these claims would depend on the outcome of the decisions of the appellate authorities and the Company's rights for future appeals before the judiciary. No reimbursements are expected.

Note 2 - Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

There are no micro and small enterprises to whom the Company owes dues which are outstanding as at the balance sheet date. The information regarding Micro Enterprises and Small Enterprises have been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

Note 3 - As per the draft rehabilitation scheme of Sandur Laminates Limited and Sandur Micro Circuits Limited, the Company has given an undertaking not to dispose of its share holdings in Sandur Laminates Limited and Sandur Micro Circuits Limited without prior approval of Board for Industrial and Financial reconstruction (BIFR).

Note 4 - Trade payables do not include any amount to be credited to the Investor Education and Protection Fund.

(b) Defined Benefit Plan - Funded

The Company makes annual contributions to an Insurance managed Fund. The scheme provides for lump sum payment to vested employees on retirement, death while in employment or on termination of employment as per the Company's Gratuity Scheme, vesting occurs upon completion of three years of service.

Note 5 - Related party disclosures:

Names of related parties and description of relationship:

1 Holding Company None

2 Subsidiary Star Metallics and Power Private Limited

3 Key Management Personnel (KMP)

ii) Nazim Sheikh, Joint Managing Director (w.e.f. 9 April 2011) and Executive Director (up to 8 April 2011)

iii) S.H. Mohan, Technical Director

iv) S.R.Sridhar, Director (Mines)

v) U. R. Acharya, Director (Commercial) (w.e.f. 9 April 2011)

vi) K. Raman, Director (Finance) (w.e.f.9 April, 2011)

4 Relative of KMP

Aditya Shivrao Ghorpade

Dhananjaya Shivarao Ghorpade (w.e.f. 1 April 2011)

Puneet Acharya (w.e.f. 1 April 2011 up to 31 October 2011)

Note 6 - Operating lease disclosure :

The Company has entered into operating leases in respect of office premises and residential premise. The leasing arrangements are cancellable and are renewable by mutual consents. The lease rentals charged to the statement of profit and loss in respect of these leases amounts to Rs.14.40 Lakh (Previous year Rs.17.32 Lakh)

Note 7 - The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.


Mar 31, 2011

1) Contingent Liabilities

31.03.2011 31.03.2010 Rs. Lakh Rs. Lakh

a) Claims against the Company not acknowledged as debts.

Stamp duty on net present value includes maximum penalty of 5,454.00 5,454.00 4545.00 lakh (relating to applicability of duty)

Income tax (relating to disallowance of deduction) 3,561.13 1,573.76

Service tax (relating to applicability of tax) 316.64 5.85

Others 14.80 17.68

The above amounts have been arrived at based on the notice of demand or the Assessment Orders, as the case may be, and the Company is contesting these claims with the respective authorities. Outflows, if any, arising out of these claims would depend on the outcome of the decisions of the appellate authorities and the Company's rights for future appeals before the judiciary. No reimbursements are expected.

b) Guarantees given by the Company:

i) Employees (including some former employees) in respect of 0.48 3.54 housing loans

The Company has got an undertaking from the employees to repay on their behalf directly to the bank/financial institution.

ii) Corporate guarantee issued to Customs authorities on behalf of 1,050.00 1,050.00 subsidiary company

The Company has given the said guarantee in respect of fulfillment of the export obligations by the subsidiary company. There are no defaults as at the year end and no liability is expected.

iii) Others (principal guarantees) - 10.00

The Company had given the said guarantee for the working capital facilities availed by the welfare organization sponsored by the Company.

2) There are no micro and small enterprises to whom the Company owes dues which are outstanding as at the balance sheet date. The above information and that given under current liabilities and provisions (Schedule 6) regarding Micro Enterprises and Small Enterprises have been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

3) Related party disclosures:

Related parties and description of relationship:

1. Holding company None 2. Subsidiary Star Metallics and Power Private Limited

3. Key Management personnel i) S.Y Ghorpade, Chairman & Managing Director (KMP) ii) Nazim Sheikh, Joint Managing Director (w.e.f. 09th April 2011) and Executive Director (upto 08th April 2011)

iii) S. H. Mohan, Technical Director

iv) S. R. Sridhar, Director (Mines)

v) U.R.Acharya, Director (Commercial) (w.e.f. 09th April 2011)

vi) K. Raman, Director (Finance) (w.e.f 09th April 2011)

4. Relative of KMP Aditya Shivrao Ghorpade

4) Employee Benefits

a) Defined contribution plan

The Company makes contributions at predetermined rates to SMIORE Provident Fund Trust and to the Regional Provident Fund commissioner in respect of Employee Provident Fund and to the Life Insurance Corporation of India in respect of Superannuation Fund.

In case of SMIORE Provident Fund Trust interest rate payable by the Trust to the beneficiaries is as notified by the Government. The Company has an obligation to make good the short fall, if any, between the return from the investments of trust and the notified interest rate and recognise such shortfall as an expense. There is no shortfall in the interest payable by the trust to the beneficiaries as on the balance sheet date.

b) Defined Benefit Plan - Funded

The Company makes annual contributions to an Insurance managed fund. The scheme provides for lump sum payment to vested employees on retirement, death while in employment or on termination of employment as per the Company's Gratuity Scheme, vesting occurs upon completion of three years of service.

c) Other Long term benefits - Unfunded

The discount rate for defined benefit plan and other long term benefits is based on the prevailing market yields of Indian Government securities as at the balance sheet date for the estimated term of obligations. The estimate of future salary increases considered for defined benefits plan and other long term benefits takes into account the inflation, seniority, promotion, increments and other relevant factors.

5) Operating lease disclosure

The Company has entered into operating leases in respect of office premises and residential premises. This leasing arrangement is cancellable and is renewable by mutual consent. The lease rentals charged to the Profit and Loss Account in respect of these leases amount to 75.82 lakh. (Previous Year 81.58 lakh)

6) As per the draft rehabilitation scheme of Sandur Laminates Limited and Sandur Micro Circuits Limited, the Company has given an undertaking not to dispose of its share holdings in Sandur Laminates Limited and Sandur Micro Circuits Limited without the prior approval of Board for Industrial and Financial Reconstruction (BIFR).

7) Current liabilities do not include any amount to be credited to the Investor Education and Protection Fund.

8) a) Previous year's figures have been regrouped / recast, wherever necessary, to conform to the classification adopted for the current year.

b) Schedules 1 to 9 form an integral part of the accounts


Mar 31, 2010

1) Contingent Liabilities

31.03.2010 31.03.2009 Rs.lakh Rs.lakh

a) Claims against the Company not ackn owledged as debts.

i) Stamp duty on net present value inc ludes maximum 5,454.00 - penalty of Rs.4,545.00 lakh (relating to applicability of duty)

ii) Income tax (relating to disallowance of deduction) 1,573.76 -

iii) Service tax (relating to applicabi lity of tax) 5.85 293.35

iv) Others 17.68 17.68

The above amounts have been arrived at based on the notice of demand or the Assessment Orders, as the case may be, and the Company is contesting these claims with the respective authorities. Outflows, if any, arising out of these claims wouid depend on the outcome of the decisions of the appellate authorities and the Companys rights for future appeals before the judiciary. No reimbursements are expected.

b) Guarantees given by the Company:

i) Employees (including some former employees) in respect of housing loans 3.54 9.87

The Company has got an undertaking from the employees to repay on their behalf directly to the bank/financial institution.

ii) Corporate guarantee issued to Customs authorities on behalf of subsidiary company 1,050.00 1,050.00

The Company has given the said guarantee in respect of fulfillment of the export obligations by the subsidiary company. There are no defaults as at the year end and no liability is expected.

iii) Others (principal guarantees) 10.00 10.00

The Company has given the said guarantee for the working capital facilities availed by the welfare organisation sponsored by the Company. There are no defaults as at the year end and no liability is expected._

c) Bills discounted - 533.18

Represents bills discounted against the irrecoverable letter of credit.

NOTES:

Processed by third parties.

a) Manganese ore production includes 28,678 tonnes (previous year: 4,212 tonnes) and iron ore production includes 36,234 tonnes (previous year: 332,829 tonnes) salvaged from waste dumps.

b) Production / purchase includes 10,000 tonnes of iron ore purchases and 97 tonnes of TMT steel bars purchases.

c) Previous year figures are in brackets

2) There are no micro and small enterprises to whom the Company owes dues which are outstanding as at the balance sheet date. The above information and that given under current liabilities and provisions (Schedule 6) regarding Micro Enterprises and Small Enterprises have been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

NOTE : Most of the assets are not identifiable separately to any reportable segment as these are used interchangeably between segments.

NOTE : The above costs of assets are not identifiable separately to any reportable segment as these are used interchangeably between segments.

The Company essentially operates within India and there are exports mainly through Export Trading House in respect of the Mines.

3) Employee Benefits

a) Defined contribution plan

The Company makes contributions at predetermined rates to SMIORE Provident Fund Trust and to the Regional Provident Fund Commissioner in respect of Employee Provident Fund and to the Life Insurance Corporation of India in respect of Superannuation Fund.

In case of SMIORE Provident Fund Trust interest rate payable by the Trust to the beneficiaries is as notified by the Government. The Company has an obligation to make good the shortfall, if any, between the return from the investments of trust and the notified interest rate and recognise such shortfall as an expense. There is no shortfall in the interest payable by the trust to the beneficiaries as on the balance sheet date.

b) Defined Benefit Plan - Funded

The Company makes annual contributions to an Insurance managed fund. The scheme provides for lump sum payment to vested employees on retirement, death while in employment or on termination of employment as per the Companys Gratuity Scheme, vesting occurs upon completion of three years of service.

Expected rate of return on plan assets is based on average yield on investment.

The discount rate for defined benefit plan and other long term benefits is based on the prevailing market yields of Indian Government securities as at the balance sheet date for the estimated term of obligations.

The estimate of future salary increases considered for defined benefits plan and other long term benefits takes into account the inflation, seniority, promotion, increments and other relevant factors.

4) As per the draft rehabilitation scheme of Sandur Laminates Limited and Sandur Micro Circuits Limited, the Company has given an undertaking not to dispose of its share holdings in Sandur Laminates Limited and Sandur Micro Circuits Limited without their prior approval of Board for Industrial and Financial Reconstruction (BIFR).

5) Current liabilities do not include any amount to be credited to the Investor Education and Protection Fund.

6) a) Previous years figures have been regrouped/recast, wherever necessary, to conform to the classification adopted for the current year. b) Schedules 1 to 9 form an integral part of the accounts.

 
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