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Notes to Accounts of Scan Steels Ltd.

Mar 31, 2015

I. The exceptional items represents expenses of LC Usance Interest and Stores, Spares and Consumables related to earlier years.

ii Amalgamation:

Pursuant to the scheme of Arrangement (the scheme) approved by the shareholders and sanctioned by the Hon'ble High Court of Odisha and at Bombay whereby Scan Steels Ltd. the transferor company are amalgamated with M/s Clarus Infrastructure Realities Ltd. the transferee company. The scheme became effective on 1st of April, 2010. Under the provisions of the Companies Act 1956 ('the Act") , the transferor company was transferred to and vested in the company as a going concern basis.

The Amalgamation has been accounted for in the books of account of 'Clarus Infrastructure Realties Ltd. under "Pooling of Interest Method m" as prescribed under Accounting Standard (As) 14 "Accounting for Amalgamations ' issued by the Institute of Chartered Accountants of India.

iii. Trade Payable includes acceptances of bill representing liability towards Letter of Credit and MSME RFS limit from Banks. The Letter Of credit is primarily secured with hypothecation of merchandise covered under said LC on pari-passu basis with Consortium member Banks. The MSME RFS limit solely sanctioned by SIDBI is primarily secured with pledge of Fixed Deposit, personal guarantee of directors along with other collateral securities.

iv. The company has not received any intimation from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. and hence disclosures, relating to amount unpaid as at the year end together with the interest paid /payable as required under the said act have not been given.

v. Debtors & Creditors balances are subject to confirmation.

vi. Previous year figures have been regrouped and/or rearranged wherever necessary, confirming to current year. Figures in bracket represent previous year figure.


Mar 31, 2014

A. Basis of Preparation of Financial Statements:

The financial statements have been prepared under the historical cost convention on an accrual basis and materially comply with the mandatory Accounting Standards notified by the Central Government in the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956. All the significant accounting policies applied are consistent with those used in the previous year, unless otherwise specified.

i. Contingent Liabilities and commitments

(to the extent not provided for)

a) Estimated amount of contracts remaining to be executed on capital accounts and not provided for Nil Lacs (Previous year: Nil)

b) The company has Issued Letter of Credit aggregating to 20,53,56,205.00 (Previous year: 19,26,36,657.00).

c) Bank Guarantee opened with Banks amounting on 2,39,17,079.00(Previous Year 1,86,56,839.00.)

d) Claims not acknowledged by the company relating to Sales tax and Entry tax of 5,88,40,175.00 (Previous year: 5,78,69,501.00).

e) Corporate guarantee to its associates in respect of Bank Loan

Nature of Facilities Amount in(Crores)

Term loan 70.08

Cash Credit 59.00

ii. The company has not received any intimation from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. and hence disclosures, if any relating to amount unpaid as at the year end together with the interest paid /payable as required under the said act have not been given.

iv. Expenses and income related to earlier years Rs. Nil (Previous year Rs. Nil) which has not been charged to profit for the Year.

v. Income And Expenditure in foreign

currency (Nil) (P.Y:Nil)

vi. The presentation of figures as regards consumptions of materials and sale of products have been changed this year to nullify the effect of unit transfer and/or captive consumption information, the details of which are as follows:

vii. Long Term Advances includes Rs. 3,09,69,732/- (Previous year Rs. 968,61,151/-) paid o M/s Bafna Builders & Land Developers ("BBLD") as advance towards booking of flats in the "Anmol Nayantara Gold Project" at Nashik by BBLD. The company has received the allotment letter to that extent from BBLD. Registration of the proposed flats for the above projects are yet to be done and hence the same has been reflected under Long Term Advances . The company is in receipt of a letter from BBLD mentioning that the project is scheduled to be completed by 30th September,2014.

viii. During the year,the company has received compensation from M/s Bafna Builders & Land Developers ( " BBLD" ) amounting to Rs. 54,72,723/- due to cancellation of flats booked earlier by the company . Same has been recognized as under the head "Other Income" Income in the financial year under review.

ix. Notes on Amalgamation :

Pursuant to the scheme of Arrangement (the scheme) approved by the shareholders and sanctioned by the Hon''ble High Court of Odisha and at Bombay whereby Scan Steels Ltd. the Transferor company are amalgamated with M/s Clarus Infrastructure Realities Ltd. , the transferee company. The scheme became effective on 01st of April, 2010. Under the provisions of the Companies Act, 1956 (''the Act''),the transferor company was transferred to and vested in the company as a going concern and accordingly the scheme had been given effect to in these accounts.

The Amalgamation has been accounted for in the books of account of '' Clarus Infrastructure Realties Ltd.'' Under "Pooling of Interest method" as prescribed under Accounting Standard (AS) 14, ''Accounting for Amalgamations'' issued by the Institute of Chartered Accountants of India.

x. Clarus Infrastructure Realties Ltd. (''the transferee company '') had applied with the Registrar of companies for change of its name M/s Scan Steels Ltd. after the completion process of amalgamation. Subsequently, the Registrar of Companies has accepted the name change and issued the fresh certificate containing the name change on dtd. 26th of September, 2014.

xi. Debtors & Creditors balances are subject to confirmation.

xii. Previous year figures have been regrouped and/or rearranged wherever necessary, confirming to current year.


Mar 31, 2013

Note 1 Segment information

The Company has identified business segments as its primary segment. Business segments are primarily Financial and Realty Revenues and expenses directly attributable to segments are reported under each reportable segment. Expenses which are not directly identifiable to each reportable segment have been allocated on the basis of associated revenues of the segment and manpower efforts. All other expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses. Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as unallocable.

31st March, 2013 31st March, 2012 (Rs.) (Rs.)

2.1 Contingent liabilities and commitments (to the extent not provided for)

(i) Contingent liabilities

(a) Claims against the Company not acknowledged as debt Nil Nil

(b) Guarantees Nil Nil

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

Micro, Small and Medium Enterprises in terms of section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 have been determined to the extent such parties have been identified on the basis of information available with the Company and relied upon by the auditors. Since the relevant information is not readily available, no disclosures have been made in the accounts. However, in the opinion of the management, the impact of interest, if any, that may be payable in accordance with the provision of this Act is not expected to be material.

2.3 Details of Merger

In terms of the Scheme of Arrangement (the Scheme), M/s Scan Steels Ltd (referred to as Transfer or Company),had been proposed to be merged with the Company ("Transferee Company"), upon which the undertaking and the entire business, including all assets and liabilities of the Transferor Companies shall stand transferred to and vested in the Transferee Company at their book value as determined by the Board of Directors of the Transferee Company.

The Scheme of Arrangement filed by the Company has been approved by the Honourable High Court of Judicature at Mumbai on 11th May, 2012 with an appointed date of 1 April 2010, being the date on which all the requirements under the Companies Act, 1956 have been completed. However, since the transferor company''s registered office is situated in the State of Orissa, the approval of the scheme by the Hon''ble High Court of Mumbai is subject to approval from the Hon''ble High Court of Orrisa. The application with the Hon''ble High Court of Orissa is pending as on the date of signing of this report. Pursuant to the Scheme, the Company shall be allotting 2,00,00,000 equity shares of Rs. 10/- each of the company to the shareholders in the Transferor Companies.

The present standalone annual accounts of the company are prepared without giving effect of the above merger. The same will be reinstated for financial years 2010-2011, 2011-2012 and 2012-13 once the scheme has been approved by the Hon''ble High Court of Orrisa and the relevant formalities are completed by both the transferor and transferee companies.

2.4 Earnings per share (EPS)

The following reflects the profit and share data used in the basic and diluted EPS computations:

2.5 The balances appearing under short term borrowings, sundry creditors, short term loans and advances, and certain banks are subject to confirmation and reconciliation and consequential adjustment, if any, will be accounted for in the year of confirmation and/or reconciliation

2.6 In the opinion of the Board, assets other than fixed assets do have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

2.7 The company is not registered as a NBFC with the Reserve Bank of India and accordingly has not complied with the direction related to provisions of Non Banking Financial (Non Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007.

2.8 Other advances includes Rs. 9,68,61,151/- (Previous year Rs. 11,25,00,000/-) paid to M/s Bafna Builders & Land Developers ("BBLD") as advance towards booking of flats in the "Anmol Nayantara Gold Project" at Nasik by BBLD. The company has received the allotment letter to that extent from BBLD. Registration of the proposed flats for the above projects are yet to be done and hence the same has been reflected under other advances. The company is in receipt of a letter from BBLD mentioning that the project is scheduled to be completed by December 2013.

2.9 During the year, the company after negotiations with BBLD has transferred its rights in certain of the above flats allotted to the company by BBLD, in favour of third parties. The consideration for the same of Rs. 39,63,252/- (net of transfer fees payable to BBLD for the transfer) has been recognised as revenue for the year. Accordingly, outstanding amount of Rs. 56,38,849/- receivable from BBLD on account of the principal has been reflected under advance recoverable in cash or in kind or for value to be received.

2.10 Since the Company recognises gratuity on payment basis no liability for the same has been ascertained and provided in the accounts. Hence, the company has not complied with the provisions of AS-15 "Accounting for Retirement Benefit".

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


Mar 31, 2012

Note 1 Segment Information

The Company has identified business segments as its primary segment. Business segments are primarily Financial and Realty. Revenues and expenses directly attributable to segments are reported under each reportable segment. Expenses which are not directly identifiable to each reportable seg- ment have been allocated on the basis of associated revenues of the segment and manpower efforts. All other expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses. Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as unallocable.

Note Particulars 31st March, 2012 31st March, 2011 (Rs.) (Rs.)

2.1 Contingent liabilities and commitments (to the extent not provided for)

(i) Contingent liabilities

(a) Claims against the Company not acknowledged as debt Nil Nil

(b) Guarantees Nil Nil

2.2 Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Devel- opment Act, 2006

Micro, Small and Medium Enterprises in terms of section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 have been determined to the extent such parties have been identified on the basis of information available with the Company and relied upon by the auditors. Since the relevant information is not readily available, no disclosures have been made in the accounts. However, in the opinion of the management, the impact of interest, if any, that may be payable in accordance with the provision of this Act is not expected to be material.

2.3 Details of Merger

In terms of the Scheme of Arrangement (the Scheme), M/s Scan Steels Ltd (referred to as Trans- feror Company'), had been proposed to be merged with the Company ("Transferee Company"), upon which the undertaking and the entire business, including all assets and liabilities of the Transferor Companies shall stand transferred to and vested in the Transferee Company at their book value as determined by the Board of Directors of the Transferee Company.

The Scheme of Arrangement filed by the Company has been approved by the Honourable High Court of Judicature at Mumbai on 11th May, 2012 with an appointed date of 1 April 2010, being the date on which all the requirements under the Companies Act, 1956 have been completed. However, since the transferor company s registered office is situated in the State of Orissa, the approval of the scheme by the Hon ble High Court of Mumbai is subject to approval from the Hon ble High Court of Orrisa. The application with the Hon ble High Court of Orissa is pending as on the date of signing of this report. Pursuant to the Scheme, the Company shall be allotting 2,00,00,000 equity shares of 10/- each of the company to the shareholders in the Transferor Companies. "The present standalone annual accounts of the company are prepared without giving effect of the above merger. The same will be reinstated for financial years 2010-2011 and 2011-2012 once the scheme has been approved by the Hon ble High Court of Orrisa and the relevant formalities are completed by both the transferor and transferee companies.

2.4 The balances appearing under unsecured loans, sundry creditors, loans and advances, and certain banks are subject to confirmation and reconciliation and consequential adjustment, if any, will be accounted for in the year of confirmation and/or reconciliation

2.5 In the opinion of the Board, assets other than fixed assets do have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

2.6 The company has neither registered as NBFC nor has complied with the direction related to provisions of Non Banking Financial Companies Prudential Norms (Reserve Bank) Direction, 1998.

2.7 Other advances includes Rs. 11,25,00,000/- (Previous year 710,00,00,000/-) paid to M/s Bafna Builders & Land Developers ("BBLD") as advance towards booking of flats in the "Anmol Nayantara Gold Project" at Nasik by BBLD. The company has received the allotment letter to that extent from BBLD. Registration of the proposed flats for the above projects are yet to be done and hence the same has been reflected under other advances. The company is in receipt of a letter from BBLD mentioning that the project is scheduled to be completed by December 2013.

2.8 Since the Company recognises gratuity and leave salary expense on payment basis no liability for the same has been ascertained and provided in the accounts. Hence, the company has not complied with the provisions of AS-15 "Accounting for Retirement Benefit".

2.9 During the year, company has advanced loans (as detailed in mote 21.4 above) to parties covered in the register maintained under section 301 of the Companies Act, 1956. However, the Company has not obtained the prior approval of Central Government for the same wherever applicable as required by the provisions of Section 295 of Companies Act, 1956.

2.10 Prior period items include reversal of expenses claimed in the previous year to the extent of service tax included in it. Accordingly Cenvat Credit under the Service tax Act has been shown as receivable from the department (Refer note 11).

2.11 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 finan- cial statements. Previous year s figures have been regrouped / reclassified wherever neces- sary to correspond with the current year s classification / disclosure


Mar 31, 2010

1. Contingent Liabilities

Claims against the company not acknowledged as Debts Nil

2. At the Annual General Meeting (AGM) of the company held on 27th October, 2009, members passed a resolution to issue 148,00,000/- equity shares of Rs. 10/- each for cash, aggregating to Rs. 14,80,00,000/- in accordance with the provisions of the Companies Act, 1956 and Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulation, 2009 to Promoter and non-promoters. Accordingly, the in-principle approval of the Mumbai Stock Exchange (BSE) was obtained and the allotment of. shares was done on the 5m December, 2009.

3. The balances appearing under unsecured loans, sundry creditors, loans and advances, and certain banks are subject to confirmation and reconciliation and consequential adjustment, if any, will be accounted for in the.year of confirmation and/or reconciliation.

4. In the opinion of the Board, the Current assets, Loans and advances have value on realisation in the ordinary course of business, at least equal to the amount at which they are stated in the Balance Sheet.

5. Under the Micro, Small and Medium Enterprises Development Act, 2006 certain disclosures are required to be made relating to Micro, Small and Medium Enterprises. The Company is in the process of compiling relevant information from its suppliers about their coverage under the said Act. Since the relevant information is not readily available, no disclosures have been made in the accounts. However, in the opinion of the management, the impact of interest, if any, that may be payable in accordance with the provision of this Act is not expected to be material.

6. The company has neither registered as NBFC nor has complied with the direction related to provisions of Non Banking Financial Companies Prudential Norms (Reserve Bank) Direction, 1998.

7. Other advances includes:

- Rs.10,00,00,000/- (Previous year Rs. Nil) paid to M/s Bafna Builders & Land Developers ("BBLD") as advance towards booking of flats in the "Anmol Nayantara Gold Project" at Nasik by BBLD. The company has received the allotment letter to that extent from BBLD.

- Rs. 1,50,00,000/- (Previous Year Rs. Nil) paid to M/s Shanti & Santosh Builders (SSD) as per the Memorandum of Understanding dated 9th December, 2009 entered by the company with SSD for allotment of flats in the SRA Project at Mumbai by SSD.

Registration of the proposed flats for both the above projects are yet to be done and hence the same has been reflected under other advances.

8. Since the Company recognises gratuity and leave salary expense on payment basis no liability for the same has been ascertained and provided in the accounts. Hence, the company has not complied with the provisions of AS-15 "Accounting for Retirement Benefit".

9. Additional information required to be furnished as per Para 3(1) and (2), 4 (c) and 4(d) of Part II to Schedule VI to the Companies Act, 1956.

(As Certified by the Director)

10. Disclosure as per Accounting Standard -18

(a) List of Related Parties:

Key Managerial Personnel

Manakchand Jain

Harsh Jain

Relatives of Key Managerial Personnel

Naresh Jain

Associated Concerns

Diamant Investment & Finance Limited

Obident Exports Private Limited

Verbana Mercantile Private Limited

Kisha Exim Private Limited

11. The management was of the opinion that there were no impairment indicators that existed as on the balance sheet date. Hence no provision for the impairment loss in accordance with the provisions of AS-28 on "Impairment of Assets" has been done.

12. Previous years figures have been regrouped/re-classified in order to conform to current years figures.

13. Balance Sheet and General Business Profile (in terms of Part IV of Schedule VI to the Companies Act, 1956) is annexed herewith.

 
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