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.