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Notes to Accounts of Siddhartha Tubes Ltd.

Mar 31, 2015

1. DEFERRED TAXATION:

As per the provisions of Accounting Standard - 22 issued by the Institute of Chartered Accountants of India, during the year the Company has not recognized any additional Deferred Tax Assets in view of the uncertainty attached to the reliability of the same; which has been caused due to heavy losses incurred by the Company during the year.

2. Segment Account

Segmentation has been determined based on activity and product of the Company i.e. (i) Steel Pipes and Tubes (ii) GP/GC /CR Coil / Sheets.

i) Segment accounting policies.

Segment accounting policies are generally in line with the accounting policies of the Company. However, the following specific accounting policies have been followed for segment reporting:

(a) Segment Revenues includes Sales and other Income directly identifiable with / allocable to the segment including intersegment revenue.

(b) Expenses that are directly identifiable with / allocable to segments are considered for determining the segment results. The expenses, which relate to the Company as a whole and not allocable to segments, are included under "Other Unallowable expenditure.

(c) Income which relates to the Company as a whole and not allocable to segments is included in "Unallowable other Income".

(d) Segment Assets and Liabilities include those directly identifiable with the respective segments. Consolidated Segment information for the year ended March 31, 2015.

Non-Cash Expenses other than Depreciation

1) Total Assets excluding Investments, TDS and Total liabilities does not include Secured & Unsecured Loan.

3. In the opinion of the management, Debts disclosed in the books of accounts due to Lenders, Creditors and other parties include debts which have become time barred and are not legally payable and / or debts in respect of which the Company has its counter claims. Disclosure of the same in the accounts is not to be treated as acknowledgement of debt by the Company. Suitable accounting effects in the books shall be given at the appropriate stage. However, no evidence/legal opinion /documents /correspondence have been provided to the auditors for verification; who are thus unable to make any comment.

4. There are no dues payable to Micro and Small Scale Industries, which have been outstanding for more than 30 days as on 31.03.2015 and 31.03.2014. This information regarding Micro and Small Scale Industries has 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.

5. Assignment of a part of Financial Assistance extended by IDBI to the Company is disputed and has been / is being/ is liable to be challenged by the Company before the Appropriate Court(s)/ RBI. The only effect of assignment (if effected), would be to replace IDBI by the Assignee as a Lender in its place, in respect of the assigned facilities.

6. CAPITAL WORK IN PROGRESS

The CRM Division continues to remain partly commissioned. The Capital Work-in-Progress, comprise of costs attributable to the 6HI CR Mill, details whereof are as under:

7. (a) Figures have been rounded off to the nearest Rupee lacs.

(b) Previous year Figures have been regrouped / rearranged wherever necessary to make them comparable with the Current year.

(c ) Figures in brackets related to previous year.

8. (a) The Company is a Sick Industrial Company in terms of Section 3(1) (o) of Sick Industrial Companies (Special Provisions) Act, 1985. (b) The accounts of the Company have been prepared on going concern basis in spite of the fact that the Company


Mar 31, 2014

1 DEFERRED TAXATION:

As per the provisions of Accounting Standard - 22 issued by the Institute of Chartered Accountants of India, during the year the Company has not recognized any additional deferred tax assets in view of the uncertainty attached to the realisabiiity of the same; which has been caused due to heavy losses incurred by the Company.

2 Segment Account

Segmentation has been determined based on activity and product of the Company i.e. (i) Steel Pipes and Tubes (ii) GP/GC /CR Coil / Sheets.

i). Segment accounting policies.

Segment accounting policies are generally in line with the accounting policies of the Company. However, the following specific accounting policies have been followed for segment reporting;

(a) Segment Revenues includes Sales and other Income directly identifiable with / allocable to the segment including intersegment revenue.

(b) Expenses that are directly identifiable with / allocable to segments are considered for determining the segment results. The expenses, which relate to the Company as a whole and not allocable to segments, are included under "Other Unallocable expenditure". 1

(c) Income which relates to the Company as a whole and not allocable to segments is included in "Unallocable other Income".

(d) Segment assets and liabilities include those directly identifiable with the respective segments. Consolidated Segment information for the year ended March 31, 2014.

3 CONTINGENT LIABILITIES 2013-14 2012-13

3.1 Bank Guarantees 60.00 60.00

3.2 In respect of Which Company is in Appeal, pending before Appellate Authorities:

Central Excise & Customs 384.50 409.57

Income Tax Department 250.00 250.00

694.50 719.57

4 In the opinion of the management, Debts disclosed in the books of accounts due to lenders, creditors and other parties include debts which have become time barred and are not legally payable and / or debts in respect of which the Company has its counter claims. Disclosure of the same in the accounts is not to be treated as acknowledgement of debt by the Company. Suitable accounting effects in the books shall be given at the appropriate stage. However, no evidence/legal opinion /documents /correspondence have been provided to the auditors for verification; who are thus unable to make any comment.

5 There are no dues payable to Micro and Small Scale Industries, which have been outstanding for more than 30 days as on 31.03.2014 and 31.03.2013. This information regarding Micro and Small Scale Industries has 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.

6 Assignment of a part of financial assistance extended by IDBI to the Company is disputed and has been / is being/ is liable to be challenged by the Company before the appropriate court(s)/ RBI. The only effect of assignment (if effected), would be to replace IDBI by the assignee as a lender in its place, in respect of the assigned facilities.

7 (a) Figures have been rounded off to the nearest Rupee lacs.

(b) Previous year figures have been regrouped / rearranged wherever necessary to make them comparable with the current year.

(c ) Figures in brackets related to previous year.


Mar 31, 2013

1 DEFERRED TAXATION:

As per the provisions of Accounting Standard - 22 issued by the Institute of Chartered Accountants of India, during the year the Company has not recognized any additional deferred tax assets in view of the uncertainty attached to the reliability of the same; which has been caused due to heavy losses incurred by the Company during the year.

2 RELATED PARTY DISCLOSURES

2.1 KEY MANAGEMENT PERSONNEL:

Mr. Nainesh ]. Sanghvi Chairman And Managing Directors

Mr. Rajendra Prasad Gupta(*) Jt. Managing Director

Mr. Shreyans Gupta Executive Director

Mr. K. R. Murthy Whole time Director (Technical)

Mr. K.C. Sharma Vice President (Marketing)

(Note* : Mr. Rajendra Prasad Gupta was Jt. Managing Director in the Company up to 27/05/2013. On his sudden demise, Mr. Shreyans Gupta has joined as Executive Director in the Company since 29/06/2013 and looks after all the functions and day to day operations hitherto managed by Mr. R. P. Gupta)

3 Segment Account

Segmentation has been determined based on activity and product of the Company i.e. Steel Pipes and Tubes and GP/GC /CR Coil / Sheets.

i). Segment accounting policies.

Segment accounting policies are generally in line with the accounting policies of the Company. However, the following specific accounting policies have been followed for segment reporting:

(a) Segment Revenues includes Sales and other income directly identifiable with / allocable to the segment including intersegment revenue.

(b) Expenses that are directly identifiable with / allocable to segments are considered for determining the segment results. The expenses, which relate to the Company as a whole and not allocable to segments, are included under "Other Unallowable expenditure".

(c) Income which relates to the Company as a whole and not allocable to segments is included in "Unallowable other Income".

(d) Segment assets and liabilities include those directly identifiable with the respective segments. Consolidated Segment information for the year ended March 31, 2013.

Non-Cash Expenses other than Depreciation

1) Total Assets excluding investments, TDS and total liabilities does not include Secured & Unsecured Loan (except secured loan paid during the year).

4 CONTINGENT LIABILITIES 2012-13 2011-12

4.1 Bank Guarantees 60.00 134.00

4.2 In respect of Which Company is in Appeal, pending before Appellate Authorities:

Central Excise & Customs 409.57 428.34

Income Tax Department 250.00 0.00

719.57 562.34

5 In the opinion of the management, Debts disclosed in the books of accounts due to lenders, creditors and other parties include debts which have become time barred and are not legally payable and / or debts in respect of which the Company has its counter claims. Disclosure of the same in the accounts is not to be treated as acknowledgement of debt by the Company. Suitable accounting effects in the books shall be given at the appropriate stage. However, no evidence/legal opinion /documents /correspondence have been provided to the auditors for verification; who are thus unable to make any comment.

6 There are no dues payable to Micro and Small Scale Industries, which have been outstanding for more than 30 days as on 31.03.2013 and 31.03.2012. This information regarding Micro and Small Scale Industries has 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.

7 Assignment of a part of financial assistance extended by IDBI to the Company is disputed and has been / is being challenged by the Company before the appropriate court(s)/ RBI. The only effect of assignment (if effected), would be to replace IDBI by the assignee as a lender in its place, in respect of the assigned facilities.

8 (a) Figures have been rounded off to the nearest Rupee lacs.

(b) Previous year figures have been regrouped / rearranged wherever necessary to make them comparable with the current year.

(c ) Figures in brackets related to previous year.


Mar 31, 2012

1)Term Loans from Financial Institutions / Banks are secured by way of first mortgage of all immoveable properties and hypothecation of all the Company's movables (save and except book debts and stocks) including movable Machinery, Spares and Tools both present and future ranking pari-passu inter-se subject to prior charge created/ to be created in favour of the Banks on specified movable assets for securing borrowings for working capital requirements and personal guarantee of the Jt. Managing Director and Managing Director.

2) Secured Loans from ACRE represent Term Loans & Working Capital facilities acquired by them from SBI and Dena Bank (Both facilities shown seperately ). A settlement has been concluded between the Company and ACRE, whereupon both these facilities are clubbed together and made jointly payable as per an agreed schedule. Therefore, the Working Capital facilities acquired by ACRE, being also now repayable over an agreed term, have lost the character of Demand Cash Credit attributed to W.Capital facilities, and hence these are also included under "Long Term Borrowings" (the corresponding pro-rata current maturities being classified under other Current Liabilities).

3 Segment Account

Segmentation has been determined based on activity and product of the Company i.e. Steel Pipes and Tubes and GP/GC / CR Coil / Sheets.

i). Segment accounting policies.

Segment accounting policies are generally in line with the accounting policies of the Company. However, the following specific accounting policies have been followed for segment reporting:

(a) Segment Revenue includes Sales and other income directly identifiable with / allocable to the segment including inter- segment revenue.

(b) Expenses that are directly identifiable with / allocable to segments are considered for determining the segment results. The expenses, which relate to the Company as a whole and not allocable to segments, are included under "Other Unallowable expenditure".

(c) Income which relates to the Company as a whole and not allocable to segments is included in "Unallocable other Income".

(d) Segment assets and liabilities include those directly identifiable with the respective segments. Consolidated Segment information for the year ended March 31, 2012.

Information about Primary Business Segments:

(Amount Rs. In lacs)

4 CONTINGENT LIABILITIES 2011-12 2010-11

4.1 Bank Guarantee 60.00 134.00

4.2 In respect of Which Company is in Appeal, pending before Appellate Authorities:

Central Excise & Custom 428.34 431.84

488.34 565.84

5 In the opinion of the management, Debts disclosed in the books of accounts due to lenders, creditors and other parties include debts which have become time barred and are not legally payable and / or debts in respect of which the Company has its counter claims. Disclosure of the same in the accounts is not to be treated as acknowledgement of debt by the Company. Suitable accounting effects in the books shall be given at the appropriate stage. However no evidence/legal opinion /documents /correspondence have been provided to the auditors for verification; who are thus unable to make any comment.

6 There are no dues payable to Micro and Small Scale Industries, which have been outstanding for more than 30 days as on 31.03.2012 and 31.03.2011. This information regarding Micro and Small Scale Industries has 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.

7 Assignment of a part of financial assistance extended by IDBI to the Company is disputed and has been / is being challenged by the Company before the appropriate court(s)/ RBI. The only effect of assignment (if effected), would be to replace IDBI by the assignee as a lender in its place, in respect of the assigned facilities.

8 LIC and IDBI (CRPS) { previous year Standard Chartered Bank, Jammu & Kashmir Bank & Cosmos Co- Op}. Bank stood settled and fully repaid by the Company during the year. Accordingly, the dues remaining over and above the settlement amount against these Lenders, stand waived in full, and have been written off from the Company's Books as under:-

9 (a) The Company is a Sick Industrial Company in terms of Section 3(1) (o) of Sick Industrial Companies (Special Provisons) Act, 1985.

(b) The accounts of the Company have been prepared on going concern basis in spite of the fact that the Company has become a Sick Company under Sick Industrial Companies (Special Provisions) Act, 1985.


Mar 31, 2011

1. CONTINGENT LIABILITIES:

a) (i) Guarantees issued on behalf of the Company by Banks Rs. l,34,00,000/-(previous year Rs. 1,34,00,000/-). (ii) Indigenous and Export Letters of Credit issued on behalf of the Company by Banks Rs. Nil (previous year Rs. Nil).

b) In respect of which Company is in Appeal, pending before appellate authorities:

CURRENT YEAR PREVIOUS YEAR * Amt. in Rs. Amt. in Rs.

Central Excise & Custom - 4,31,83,541 4,28,21,128

3. In the opinion of the management, Debts disclosed in the books of accounts due to lenders, creditors and other parties include debts which have become time barred and are not legally payable and / or debts in respect of which the Company has its counter claims. Disclosure of the same in the accounts is not to be treated as acknowledgement of debt by the Company. Suitable accounting effects in the books shall be given at the appropriate stage. However no evidence/legal opinion /documents /correspondence have been provided to the auditors for verification; who are thus unable to make any comment.

4. There are no dues payable to Small Scale Industries, which have been outstanding for more than 30 days as on 31.03.2011 and 31.03.2010. This information regarding Small Scale Industries has 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.

5. Assignment of a part of financial assistance extended by IDBI to the Company is disputed and challenged by the Company, before the appropriate court(s)/ RBI. The only effect of assignment (if effected), would be to replace IDBI by the assignee as a lender in it's place, in respect of the assigned facilities.

6. Standard Chartered Bank, Jammu & Kashmir Bank & Cosmos Co-Op. Bank stood settled and fully repaid by the Company during the year, Accordingly, the dues remaining over and above the settlement amount against these Lenders, stand waived in full, and have been written off from the Company's Books as under :-

7. Under the Negotiated Settlement of Dues (NSD), reached with various Lenders, some lenders (refer note 6 above) stand fully repaid during the year. In respect of the NSD reached with other lenders. Viz IFCI, LIC, ACRE and IDBI (for the CRPS & Share application Money held with them in the Company) the Company has paid installments/ interest fallen due up to 31.03.2011. However, in the event of any default by the Company in meeting the NSD terms, Lenders have retained the right to restore the original liability and / or appropriate such repayments made by the Company against expenses / charges / penalties/applied or unapplied up to date interest etc. The said payment of Rs.13.66 crore (previous year Rs. 18.70 crores) made up to 31.03.2011 has therefore been separately shown as Advance in Schedule II until full repay- ment of their respective NSD amounts. Necessary accounting entries will be passed in the books of accounts on receiving the respective no dues certificates from these Lenders as and when the NSD amounts are repaid in full.

8. (a) The Company is a Sick Industrial Company in terms of Section 3(1) (o) of Sick Industrial Companies (Special Provisions) Act, 1985. (b) The accounts of the Company have been prepared on going concern basis in spite of the fact that the Company has become a Sick Company under Sick Industrial Companies (Special Provisions) Act, 1985.

9) GENERAL:

(a) Figures have been rounded off to the nearest rupee.

(b) Previous year figures have been regrouped / rearranged wherever necessary to make them comparable with the current year.

(c) Figures in bracket relates to previous year. As per our report of even date attached


Mar 31, 2010

1. CONTINGENT LIABILITIES:

a) (i) Guarantees issued on behalf of the Company by Banks Rs. 1,34,00,000/- (prevlous year Rs. 2,54,00,000/- ),

(II) Indigenous and Export Letters of Credit issued on behalf of the Company by Banks Rs. Nil (previous year Rs. Nil), These facilities are secured by hypothecation charge on current assets and second charge on fixed assets of the Company.

b) In respect of which Company is in Appeal pending before appellate authorities:

CURRENT YEAR PREVIOUS YEAR Amt. In Rs. Amt. In Rs.

Central Excise & Custom - 4,28,21,128 4,36,12,978

2. In the opinion of the management, Debts disclosed in the books of accounts due to lenders, creditors and other parties include debts which have become time barred and are not legally payable and / or debts in respect of which the Company has its counter claims. Disclosure of the same in the accounts is not to be treated as acknowledgement of debt by the Company. Suitable accounting effects in the books shall be given at the appropriate stage. However no evidence/legal opinion / documents / correspondence have been provided to the auditors for verification; who are thus unable to make any comment.

3. There are no dues payable to Small Scale Industries, which have been outstanding for more than 30 days as on 31.03.2010 and 31.03.2009. This information regarding Small Scale Industries has 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.

4. Assignment of a part of financial assistance extended by IDBI to the Company is disputed and challenged by the Company, before the appropriate court(s)/ RBI. The only effect of assignment (if effected), would be to replace IDBI by the assignee as a lender in its place, in respect of the assigned facilities.

5. Non Convertible Debentures held by UTI stood settled and fully repaid by the Company during the year. Accordingly, waiver of "Principal" and "Interest Accured And Due" as appearing against their name, aggregating to Rs. 2.33 Crore and Rs.29.68 Crore respectively have been written off from the Companys books.

6. IDBI had extended an unsecured Foreign Currency Corporate loan to the Company in 1995. The said loan stood classified as Secured Loans in Companys financial statements in previous years. The Company has not created any charge on its assets in respect of the loan. The said facility accordingly has been reclassified as unsecured loans during the year.

7. Under the Negotiated settlement of dues reached with various Lenders (IFCI, LIC, J&K Bank, Cosmos Bank, Standard Chartered Bank & IDBI (for the CRPS and Share application Money held by them in the Company)), the Company has paid installments/ interest fallen due upto 31.03.2010. However, in the event of any breach of NSD terms, Lenders have retained the right to restore the original liability and / or appropriate such repayments made by the Company against expenses / charges / penalties/applied or unapplied upto date interest etc. The said payment of Rs.18.70 crore (previous year Rs.2.13 crores) made upto 31.03.2010 has therefore been separately shown as Advance in Schedule No. 11 until full repayment of the NSD amount. Necessary accounting entries will be passed in the books of accounts on receiving the respective no dues certificates from the Lenders as and when the NSD amount is repaid in full.

8. (a) The Company is a Sick Industrial Company in terms of Section 3(1) (o) of Sick Industrial Companies "(Special Provisions) Act, 1985.

(b) The accounts of the Company have been prepared on going concern basis in spite of the fact that the Company has become a Sick Company under Sick Industrial Companies (Special Provisions) Act, 1985.

9. QUANTITATIVE & OTHER INFORMATION:

10. GENERAL:

(a) Figures have been rounded off to the nearest rupee.

(b) Previous year figures have been regrouped / rearranged wherever necessary to make them comparable with the current year.

(c) Figures in bracket relates to previous year.

 
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