Home  »  Company  »  Skipper Ltd.  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Skipper Ltd.

Mar 31, 2016

1. Rights, Preferences and Restrictions attached to Equity Shares:

The Company has one class of equity shares having a par value of Rs, 1 per share. Each shareholder is eligible for one vote per
share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual
General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive
the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.


2. The Company does not have any Holding Company.

3. The Company has reserved Equity Shares for issue under the Employee Stock Options Scheme. Please refer Note No. 38 on
"Employee Share-Based Payment" for details of Employee Stock Options Plan.

4. None of the securities are convertible into shares at the end of the reporting period.

5. The Company during the preceding 5 years –

(i) Has not allotted shares pursuant to contracts without payment received in cash.

(ii) Has issued 4,872,212 nos. of shares as fully paid up by way of bonus shares. (iii) Has not bought back any shares.

6. There are no calls unpaid by Directors / Officers.

7. The Company has not forfeited any shares.


Secured Loans are covered as follows :

8. Rupee Term Loans from Banks of Rs, 27.50 million (Previous Year Rs, 64.17 million) are secured by way of first pari- passu
charge over all immovable and moveable fixed assets, both present and future of Jangalpur unit, Howrah of the company excluding
those assets for which there is an exclusive charge of other lenders.

It is further secured by the second pari-passu charge on the current assets of the unit both present and future, excluding those
assets for which there is an exclusive charge of other lenders.

9. Rupee Term Loans from Banks of Rs, 207.41 million (Previous Year Rs, 491.33 million) and foreign currency term loans of Rs,
479.99 million (Previous Year Rs, 346.46 million) are secured by way of first pari- passu charge over all immovable and moveable
fixed assets, both present and future of Uluberia unit, Howrah of the company excluding those assets for which there is an
exclusive charge of other lenders. It is further secured by the second pari-passu charge on the current assets of the unit both
present and future, excluding those assets for which there is an exclusive charge of other lenders.

10. Rupee Term Loans from Banks of Rs, 200.00 million (Previous Year Rs, 186.88 million) is secured by way of first pari- passu
charge over all immovable and moveable fixed assets, both present and future of Uluberia unit and Jangalpur Unit, Howrah of the
company excluding those assets for which there is an exclusive charge of other bankers. It is further secured by the second
pari-passu charge on the current assets of the unit both present and future, excluding those assets for which there is an
exclusive charge of other lenders.


11. Loans from related parties of Rs, 107.65 million (Previous year Rs, 57.96 million) and loans from other body corporate of Rs,
745.25 million (Previous year Rs, 620.09 million), being long term in nature, have not been considered in the above repayment
schedule.

12. Interest Rates:

(i) Rupee Term Loan from Banks carries interest ranging from base rate plus 1.30% to base rate plus 3% , Rupee Term Loan from
Body Corporate carries interest of SBI base rate plus 1.30% and Foreign currency Term Loans from Banks bear interest from 3
months libor plus 250 bps to 6 months libor plus 300 bps

(ii) Vehicle Loan from Banks carries interest between 9.35 % to 12% p.a.

(iii) Unsecured Loan from Body corporate and from Banks carries interest between 9% to 12.50% p.a.

13. Rupee Term Loan from Body Corporate of Rs, 185.90 million (Previous Year: Rs, Nil ) is secured by way of first pari- passu
charge on plant & machinery of PVC units situated at Ahmedabad, Guwahati, Hyderabad & Sikandrabad.

14. Vehicle loans from Banks of Rs, 32.78 million (Previous Year Rs, 44.48 million) and Rs, 4.24 million (Previous Year Rs, Nil )
from Others are secured against hypothecation of respective fixed assets fnanced by them.


15. The Company does not expect any reimbursements in respect of the above contingent liability.

16. It is not practicable to estimate the timing of cash outfows, if any, in respect of matters at pending resolution of the
appellate proceedings.

17. Estimated amount of contracts pending execution on capital account net of advances of Rs, 21.78 million (previous year Rs,
30.60 million) and not provided for is Rs, 90.50 million (Previous year Rs, 67.19 million).

18. As per Section 135 of the Companies Act, 2013, a CSR committee has been formed by the company. The disclosure in respect of
CSR Expenditure during the year as aligned with the CSR Policy of the Company which is in line with the activities specified in
Schedule VII of the Companies Act, 2013 is as under:


19. The Company is accounting for transactions in foreign currency as per Clause 46A of Accounting Standard-11- Effects of
changes in foreign exchange rates and has exercised the option of deferment of exchange fluctuation on long term liabilities
granted by Companies (Accounting Standards) (Second Amendment) Rules, 2011 issued by the Ministry of Corporate Affairs on
29.12.2011 by way of capitalization to the respective fixed assets.

20. In the opinion of the management, no impairment loss is required to be charged to Statement of Profit and Loss at the end of
the financial year.

21. Other Operational Income includes Rs, 181.37 million (Previous year Rs, 420.13 million) towards the derivative gains
realized on cancellation /rollover of forward contracts (foreign currency) relating to future export sales (firm commitment).

22. Balances of certain debtors and creditors are subject to confirmation and reconciliation. In the opinion of the management,
current assets, loan and advances will have value on realization in the ordinary course of business at least equal to the amount
at which they are stated.

23. The information regarding amounts due to creditors registered under the Micro, Small and Medium Enterprises Development Act,
2006, has been given to the extent available with the Company. The required disclosures of outstanding dues of micro, small &
medium enterprises are as under:


Defined Benefit Plan :

Post employment and other long term employee benefits in the form of gratuity and leave encashment are considered as defined
benefit obligation. The employees'' gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan.
The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which
recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit
separately to build up the final obligation.

24. The disclosures required under Accounting Standard 15 "Employees Benefits" notified in the Companies (Accounting Standards)
Rules 2006, are given below:


*Net asset on account of Gratuity Fund as at the end of previous year was not recognized in the Financial Statement. Liability
for leave payable at the time of retirement has been recognized on actuarial basis. The estimates of rate of escalation in
salary considered in actuarial valuation, take into account Inflation, seniority, promotion and other relevant factors including
supply and demand in the employment market. The above information is as given by the Life Insurance Corporation of India (LIC)
and as per certain estimates made by the management, which had been accepted by the auditor.

25. OPERATING LEASE

The Company has taken various residential/commercial premises under cancelable operating leases except for land taken on lease
for units located at Guwahati & Ahmedabad with a lock-in-period of 36 months from start of lease period. There is no escalation
clause in the lease agreement except in case of land taken on lease for units located in Ahmedabad, Guwahati, Hyderabad &
Sikandrabad. There are no restrictions imposed by lease agreements. These lease agreements are normally renewed on expiry.


26. EMPLOYEE SHARE-BASED PAYMENT:

Employee Stock Options Plan 2015 ("ESOP 2015")

On 7th January, 2016, the Shareholders of the Company approved the Employee Stock Options Plan 2015 ("ESOP 2015") for issue of
Option not exceeding 20,00,000 (Twenty Lakh) options to its permanent employees (including a Director, whether whole time or not
but excluding independent directors) of the Company, working in India or outside India. Each option when exercised would be
converted into one Equity Share of Rs, 1/- (Rs, One) each fully paid-up. Pursuant to ESOP 2015, Nomination & Remuneration
Committee on 9th March, 2016 has granted 410,000 options with a graded vesting schedule of 25% at the end of each year over a
period of 4 years conditional on Corporate Performance Matrix as per Plan. All the options granted on any date shall vest not
later than a maximum of 6 (six) years from the date of grant of options. The Exercise period would commence from the date of
vesting and will expire on completion 5 (five) years from the date of respective vesting and these options do not carry rights to
dividends or voting rights till the date of exercise. The Shares issued upon exercise of Options shall be freely transferable and
shall not be subject to any lock-in period restriction after such exercise.


Fair Valuation:

During the year ended 31st March, 2016, the Company has granted 410,000 options under ESOP 2015. At grant date, the weighted
average fair value of stock options granted under ESOP 2015 was Rs, 85.65 for each option. The said fair valuation have been
done by an independent valuer using Black and Scholes Model. The details of stock options granted during the year ended 31st
March, 2016, and the key assumptions taken into account for fair valuation are as under:

The expected volatility was determined based on the historical share price volatility over the past period depending on life of
the options granted.

For the year ended 31st March, 2016, the Company determined Rs, 0.46 million (Previous year Rs, Nil ) as amortized compensation
cost for stock options granted. The Company measures compensation cost for the stock options granted using intrinsic value
method. Had the compensation cost been determined in a manner consistent with fair value approach, the Company''s net Profit and
earnings per share as reported would have been as under:


(C) Other disclosures

There are no inter-segment revenues.

The Engineering Products segment includes Towers, Angles, Highmast Poles, Swaged Poles, scaffoldings etc.

The Infrastructure Projects segment includes Horizontal Direct Drilling services and Engineering, Procurement & Construction
services.

The Polymer Product segment includes PVC, CPVC, UPVC, SWR pipes & fittings and other related products.

27. RELATED PARTY DISCLOSURES

A. Names of the related parties and nature of relationship

(1) Key Management Personnels and their relatives.

(i) Mr. Sajan Kumar Bansal Managing Director

(ii) Mr. Sharan Bansal Whole Time Director

(iii) Mr. Devesh Bansal Whole Time Director

(iv) Mr. Siddharth Bansal Whole Time Director

(2) Parties where key managerial personnel along with their relatives have significant infuence. Skipper Realties Limited (
Formerly Bansal TMT Steels Limited)

Skipper Telelink Limited

Ventex Trade Private Limited

Skipper Plastics Limited ( Formerly Rama Consultancy Company (1993) Limited)

Suviksit Investments Limited

Skipper Polypipes Private Limited (Formerly Prakriti Steels Private Limited)

Skipper Foundation

Sadhuram Bansal Foundation

Sheo Bai Bansal Charitable Trust

(3) Relatives of key managerial personnel

(i) Mr. Sadhu Ram Bansal Father of Mr. Sajan Kumar Bansal (Expired on 27.09.2014)

(ii) Mrs. Sumedha Bansal Wife of Mr. Sharan Bansal

(iii) Mrs. Rashmi Bansal Wife of Mr. Devesh Bansal

(iv) Mrs. Shruti M Bansal Wife of Mr. Siddharth Bansal


28. FIGURES RELATING TO THE PREVIOUS YEAR HAVE BEEN REGROUPED AND REARRANGED WHEREVER NECESSARY.

Significant Accounting Policies 1

The accompanying notes are an integral part of the financial statements


Mar 31, 2015

1 CONTINGENT LIABILITIES NOT PROVIDED IN RESPECT OF:

Rs. in million

31-03-2015 31-03-2014

Particulars

a) Claims against the Company not acknowledged as debt Disputed tax/duties 201.52 170.42

b) Bank Guarantee issued by Banks 3007.18 2182.53

Less: Margin money pledged against Bank Guarantee 87.93 62.25

Bank Guarantee net of Margin Money 2,919.25 2,120.28

Notes:

(i) The Company does not expect any reimbursements in respect of the above contingent liabilities.

(ii) It is not practicable to estimate the timing of cash outflows, if any in respect of matters at (a) pending resolution of the appellate proceedings.

(iii) In respect of matters at (b) the cash outflows, if any, could generally occur at any time during the subsistence of the liability to which the guarantees relate.

2. Estimated amount of contracts pending execution on capital account (net of advances of Rs. 30.60 million (previous year Rs. 21.11 million) and not provided for isRs. 67.19 million (Previousyear Rs. 38.18 million).

3. The Gross Block of Fixed Assets includes Rs. 43.52 million (Previous year Rs. 43.52 million) on account of revaluation of Fixed Assets carried out in the past. Pursuant to Companies Act 2013 the company has revised depreciation rates on fixed assets w.e.f 1st April, 2014 as per the useful life specified in Schedule II of the Companies Act, 2013 and also depreciation on revalued amount of certain assets have been charged to statement of profit & loss. Pending clarification, depreciation on revalued amount for year ended 31st March, 2015 for Rs. 0.36 million has not been adjusted with Revaluation Reserve.

4. As per Section 135 of the Companies Act, 2013, a CSR committee has been formed by the company. The disclosure in respect of CSR Expenditure during the year as aligned with the CSR Policy of the Company which is in line with the activities specified in Schedule VII of the Companies Act, 2013 is as under:

5. The Company is accounting for transactions in foreign currency as per Clause 46A of Accounting Standard-11- Effects of changes in foreign exchange rates and has exercised the option of deferment of exchange fluctuation on long term liabili- ties granted by Companies (Accounting Standards) (Second Amendment) Rules, 2011 issued by the Ministry of Corporate Affairs on 29.12.2011 by way of capitalization to the respective fixed assets.

6. In the opinion of the management, no impairment loss is required to be charged to Statement of Profit and Loss at the end of the financial year.

7. Other Operational Income includes Rs. 420.13 million (Previous year Rs. Nil) towards the derivative gains realized on cancellation /roll over of forward contracts (foreign currency) relating to future export sales (firm commitment).

6. Balances of certain debtors and creditors are subject to confirmation and reconciliation. In the opinion of the management, current assets, loan and advances will have value on realization in the ordinary course of business at least equal to the amount at which they are stated.

7. The disclosures required under Accounting Standard 15 "Employees Benefits" notified in the Companies (Accounting Standards) Rules 2006, are given below:

2) Parties where key managerial personnel along with their relatives have significant influence

Skipper Realties Limited (Formerly Bansal TMT Steels Limited)

Skipper Telelink Limited

Ventex Trade Private Limited

Skipper Plastics Limited (Formerly Rama Consultancy Company (1993) Limited)

Suviksit Investments Limited

Prakriti Steels Private Limited

Skipper Foundation

Sadhuram Bansal Foundation

Sheo Bai Bansal Charitable Trust

3) Relatives of key managerial personnel

Mr. Sadhu Ram Bansal (father of Mr. Sajan Kumar Bansal) (Expired on 27.09.2014) Mrs.Sumedha Bansal (wife of Mr. Sharan Bansal) Mrs.Rashmi Bansal (wife of Mr. Devesh Bansal) Mrs.Shruti M Bansal (wife of Mr. Siddharth Bansal)

B Secondary Segment (Geographical Segment)

There are no items to be reported under geographical segments, considered as secondary segment, as overseas customers do not costitute a reportable segment as per Accounting Standard (AS) 17 "Segment Reporting".

C Other disclosures

There are no inter-segment revenues.

The Engineering Products segment includes Towers, Angles, Highmast Poles, Swaged Poles, scaffoldings etc.

The Infrastructure Projects segment includes Horizontal Direct Drilling services and Erection, painting and commissioning services.

The PVC Products segment includes PVC pipes and other related products.

8. For the year ended 31st March, 2015, the Board of Directors of the Company has recommended dividend of Rs. 1.30 per share (Previous year Rs. 0.15 per share) to equity shareholders aggregating to Rs. 160.09 million (Previous year Rs. 18.03 million) including Dividend Distribution Tax.

9. THERE IS NO UNHEDGED FOREIGN CURRENCY EXPOSURE.

10. FIGURES RELATING TO THE PREVIOUS YEAR HAVE BEEN REGROUPED AND REARRANGED WHEREVER NECESSARY.


Mar 31, 2013

1. Cash and Cash Equivalents represent cash and bank balances as indicated in Note 15 to the Annual Accounts and include fixed deposit pledged as margin money.

2. The above Cash Flow Statement has been prepared under the Indirect method as set out in Accounting Standard-3 on Cash Flow Statement issued by the Institute of Chartered Accountants of India.

In terms of our report of even date

3. Contingent liabilities not provided in respect of:

Amounting

Particulars 31.03.2013 31.03.2012

a) Claims against the Company not acknowledged as debt 49,918,200 48,114,117 Disputed tax/duties

b) Bank Guarantee issued by Banks (net of margin money) 1,207,543,322 1,215,255,508

Notes:

(i) The Company does not expect any reimbursements in respect of the above contingent liabilities.

(ii) It is not practicable to estimate the timing of cash outflows, if any, in respect of matters at (a) pending resolution of the appellate proceedings.

(iii) In respect of matters at (b) the cash outflows, if any, could generally occur at any time during the subsistence of the liability to which the guarantees relate.

4. Estimated amount of contracts pending execution on capital account (net of advances) and not provided for is Rs. 7,539,699 (Previous yearRs. 23,317,766).

5. The Gross Block of Fixed Assets includes Rs. 43,520,129 (Previous year Rs. 43,520,129) on account of revaluation of Fixed Assets carried out in the past. Consequent to the said revaluation there is an additional charge of depreciation of Rs. 241,237 (Previous Year Rs. 241,237) and an equivalent amount, has been withdrawn from Revaluation Reserve and credited to the Profit and Loss Account.

6. Expenditure on account of premium on forward exchange contracts to be recognized in the profit and loss account of subsequent accounting period aggregates to Rs. 2,857,807 (Previous year Rs. 6,396,114).

7. The Company is accounting for transactions in foreign currency as per Accounting Standard-11- Effects of changes in foreign exchange rates and shall not exercise the option of deferment of exchange fluctuation on long term liabilities granted by Companies (Accounting Standard) Amendment Rules, 2009 issued by the Ministry of Corporate Affairs on 31st March, 2009.

8. In the opinion of the management, no impairment loss is required to be charged to Statement of Profit and Loss at the end of the financial year.

9. Balances of certain debtors and creditors are subject to confirmation and reconciliation. In the opinion of the management, current assets, loan and advances will have value on realization in the ordinary course of business at least equal to the amount at which they are stated.

10. The Company had issued 2,900,000 (Twenty Nine Lacs), 8% Redeemable Non Cumulative Preference shares of Rs. 100 each on 31st March, 2011, out of which 2,500,000 shares were redeemable after twelve years from the date of allotment and balance 400,000 shares were redeemable after thirteen years from the date of allotment. During the year the Company has redeemed all these shares before the due date of redemption.

11. The information regarding amounts due to creditors registered under the Micro, Small and Medium Enterprises Development Act, 2006, has been given to the extent available with the Company. The required disclosures of outstanding dues of micro, small & medium enterprises are as under:

Defined Benefit Plan

The employees'' gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is as given by the Life Insurance Corporation of India (LIC) and as per certain estimates made by the management, which had been accepted by the auditor.

12. The Company has recognized Deferred Tax Liability as per Accounting Standard-22 regarding ''Accounting for Taxes on Income''. The movement of major components of deferred tax provision/adjustment is:

13. Leases

(a) Operating Lease

The Company has taken various residential/commercial premises under cancelable operating leases. There is no escalation clause in the lease agreement. There are no restrictions imposed by lease agreements. These lease agreements are normally renewed on expiry.

(b) Finance Leases:

(i) Assets acquired on finance lease mainly comprise vehicles. The leases have a primary period, which is fixed and non-cancelable. There are no exceptional/restrictive covenants in the lease agreement:

(ii) The minimum lease rentals as at 31st March, 2013 of minimum lease payments in respect of assets acquired under finance lease are as follows:

14 List of related parties with whom the Company has entered into transactions during the year in the ordinary course of business

A Relationship

1) Key Managerial Personnel

Mr. Sajan Kumar Bansal Mr.SharanBansal Mr. Devesh Bansal Mr. Siddharth Bansal

2) Parties where key managerial personnel along with their relatives have significant influence

Bansal TMT Steels Limited

Skipper Telelink Limited

VentexTrade Private Limited

Rama Consultancy Company (1993) Limited

Skipper Foundation

Sadhuram Bansal Foundation

SheoBai Bansal Charitable Trust

3) Relatives of key managerial personnel

Mr.Sadhu Ram Bansal (father of Mr. Sajan Kumar Bansal) Mrs.Sumedha Bansal (wife of Mr. Sharan Bansal) Mrs.Rashmi Bansal (wife of Mr. Devesh Bansal)

The business segment has been considered as primary segment.

The Company has identified the following business segments taking into account products or group of related products that is subject to risks and returns that are different from those of other business segments, the organisation structure and the financial reporting system.

Iron & Steel Products

Infrastructure Projects

PVC Products

There are no items to be reported under geographical segments, considered as secondary segment, as overseas customers do not costitute a Reportable Segment as per Accounting Standard (AS) 17 "Segment Reporting".

There are no inter-segment revenues.

15. Figures relating to the previous year have been regrouped and rearranged wherever necessary.


Mar 31, 2012

1. The name of the Company has been changed from Skipper Steels Limited to Skipper Limited with effect from 07th September, 2009.

2. The Company has changed the method of valuation of Raw Materials from First in First out to Moving Average method during the financial year ended 31st March, 2012, which has the increasing effect on the net profit of the Company for the year to the extent of Rs. 70,92,886/-.

3. Contingent liabilities not provided in respect of:

Paticular 31.03.2012 31.03.2011 a) Claims against the Company not acknowledged as debt Disputedtax/duties 4,81,14,117 4,51,15,597

b) Bills Discounted 15,21,48,293 31,67,88,201

c) Bank Guarantee issued by Banks 1,24,53,29,969 131,75,23,098

Notes:

(i) The Company does not expect any reimbursements in respect of the above contingent liabilities.

(ii) It is not practicable to estimate the timing of cash outflows, if any, in respect of matters at (a) pending resolution ofthe appellate proceedings.

(iii) In respect of matters at (b), the cash outfows if any, could occur or defoult by the parties whose bills have been discounted bythe banks.

(iii) In respect of matters at (c) the cash outflows, if any, could generally occur at any time during the subsistence of the liability to which the guarantees or letters of credit relate.

4. Estimated amount of contracts pending execution on capital account (net of advances) and not provided for is Rs. 1,63,56,384 (Previous year Rs. 2,33,17,766).

5. The Gross Block of Fixed Assets includes Rs. 4,35,20,129 (Previous year Rs. 4,35,20,129) on account of revaluation of Fixed Assets carried out in the past. Consequent to the said revaluation there is an additional charge of depreciation of Rs. 2,41,237 (Previous Year Rs. 2,41,237) and an equivalent amount has been withdrawn from Revaluation Reserve and credited to the Profit and Loss Account.

6. Expenditure on account of premium on forward exchange contracts to be recognized in the profit and loss account of subsequent accounting period aggregates to Rs. 63,96,114(Previous year Rs. 25,36,478).

7. The Company is accounting for transactions in foreign currency as per Accounting Standard-11- Effects of changes in foreign exchange rates and shall not exercise the option of deferment of exchange fluctuation on long term liabilities granted by Companies (Accounting Standard) Amendment Rules, 2009 issued by the Ministry of Corporate Affairs on 31st March, 2009.

8. In the opinion of the management, no impairment loss is required to be charged to Profit and Loss Account at the end of the financial year.

9. Balances of certain debtors and creditors are subject to confirmation and reconciliation. In the opinion of the management, current assets, loan and advances will have value on realization in the ordinary course of business at least equal to the amount at which they are stated.

10. The Company had issued Nil ( Previous year Rs. 25,00,000) Redeemable Non-cumulative Preference Shares of Rs. 100 each aggregating to Rs. Nil (Previous Year Rs. 25,00,00,000) during the year, which are redeemable after twelve years from the date of allotment and Nil (Previous year 4,00,000 ) Redeemable Non-cumulative Preference Shares of Rs. 100 each aggregating to Rs. Nil (Previous year Rs. 4,00,00,000) redeemable after thirteen years from the date of allotment. 8% dividend will be paid to all the Preference shareholders subject to availability of distributable profits.

11. The information regarding amounts due to creditors registered under the Micro, Small and Medium Enterprises Development Act, 2006, has been given to the extent available with the Company. The required disclosures of outstanding dues of micro enterprises and small enterprises are as under:

12. The disclosures required under Accounting Standard 15 "Employees Benefits" notified in the Companies (Accounting Standards) Rules 2006, are given below:

Defined Contribution Plan

Contribution to Defined Contribution Plan, recognised are charged off for the year are as under:

Defined Benefit Plan

The employees'' gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is as given by the Life Insurance Corporation of India (LIC) and as per certain estimates made by the management, which has been accepted by the auditors.

13. The Company has set up a PVC Pipe (Expansion), Producer Gas Plant (Coal Gasifier) and other Expansion Projects at Uluberia, West Bengal during the year. The expenditure incurred during the construction period were debited to Capital Work-In-Progress and have been apportioned to the fixed assets on the completion of the project. The necessary details of such expenditure has been disclosed below:

14. The Company has recognized Deferred Tax Liability as per Accounting Standard-22 regarding ''Accounting for Taxes on Income''. The movement of major components of deferred tax provision/adjustment is:

15. Leases

(a) Operating Lease

The Company has taken various residential/commercial premises under cancelable operating leases. There is no escalation clause in the lease agreement. There are no restrictions imposed by lease agreements. These lease agreements are normally renewed on expiry.

(b) Finance Leases:

(i) Assets acquired on finance lease mainly comprise vehicles. The leases have a primary period, which is fixed and non- cancelable. There are no exceptional/restrictive covenants in the lease agreement:

(ii) The minimum lease rentals as at 31st March, 2012 of minimum lease payments in respect of assets acquired under finance lease are as follows:

16. List of related parties with whom the Company has entered into transactions during the year in the ordinary course of business

A. Relationship

1) Key Management Personnel

Mr. Sajan Kumar Bansal

Mr. Sharan Bansal

Mr. Devesh Bansal

Mr.Siddharth Bansal

2) Parties where key management personnel along with their relatives have significant influence

Bansal TMT Steels Limited SkipperTelelink Limited VentexTrade Private Limited Rama Consultancy Company (1993) Limited

3) Relatives of key management personnel

Sadhu Ram Bansal (father of Mr. Sajan Kumar Bansal)

Sumedha Bansal (wife of Mr. Sharan Bansal)

Rashmi Bansal (wife of Mr. Devesh Bansal)

The business segment has been considered as primary segment.

1) The Company has identified the following business segments taking into account products or group of related products that is subject to risks and returns that are different from those of other business segments, the organisation structure and the financial reporting system

I) Iron & Steel products II) Infrastructure Projects III) PVC Products

2) There are no items to be reported under geographical segments, considered as secondary segment, as overseas customers do not costitute a Reportable Segment as per Accounting Standard (AS) 17 "Segment Reporting".

3) There are no inter-segment revenues.


Mar 31, 2011

1. The name of the Company has been changed from Skipper Steels Limited to Skipper Limited with effect from 7th September, 2009.

2. Contingent liabilities not provided in respect of:

Amount in Rs Paticular 31.03.2011 31.03.2010 a) ClaimsagainsttheCompanynotacknow ledgedasdebtDisputedtax/duties 4,51,15,597 5,73,25,830

b) Bills Discounted 31,67,88,201 13,16,54,634

c) BankGuaranteeissuedbyBanks 1,31,75,23,098 1,08,08,47,568

d) UnexpiredLettersofCredit 77,52,36,044 5,17,727

Note :

(i) The Company does not expect any reimbursements in respect of the above contingent liabilities.

(ii) It is not practicable to estimate the timing of cash outflows, if any, in respect of matters at (a) pending resolution of the appellate proceedings.

(iii) In respect of matters at (b), the cash outflows, if any, could occur on default by the parties whose bills have been discounted by the bank.

(iv) In respect of matters at (c) and (d), the cash outflows, if any, could generally occur at any time during the subsistence of the liability to which the guarantees or letters of credit relate.

3. Estimated amount of contracts pending execution on capital account (net of advances) and not provided for is Rs.2,33,17,766 (Previousyear Rs. 1,78,99,852).

4. The Gross Block of Fixed Assets includes Rs.4,35,20,129 (Previous year Rs.4,35,20,129) on account of revaluation of Fixed Assets carried out in the past. Consequent to the said revaluation there is an additional charge of depreciation of Rs.2,41,237 (Previous Year Rs. 2,41,237) and an equivalent amount, has been withdrawn from Revaluation Reserve and credited to the Profit and Loss Account.

5. Expenditure on account of premium on forward exchange contracts to be recognized in the profit and loss account of subsequent accounting period aggregates to Rs.25,36,478 (Previous Year Rs.66,99,598).

6. The Company is accounting for transactions in foreign currency as per Accounting Standard-11- Effects of changes in foreign exchange rates and shall not exercise the option of deferment of exchange fluctuation on long term liabilities granted by Companies (Accounting Standard) Amendment Rules, 2009 issued by the Ministry of Corporate Affairs on 31st March, 2009.

7. In the opinion of the management, no impairment loss is required to be charged to Profit and Loss Account at the end of the financial year.

8. Balances of certain debtors and creditors are subject to confirmation and reconciliation. In the opinion of the management, current assets, loan and advances will have value on realization in the ordinary course of business at least equal to the amount at which they are stated.

9. The Company had issued 25,00,000 ( Previous year Nil) Redeemable Non-cumulative Preference Shares of Rs.100 each aggregating to Rs. 25,00,00,000 (Previous Year Rs.Nil) during the year, which are redeemable after twelve years from the date of allotment and 4,00,000(Previous year nil) Redeemable Non-cumulative Preference Shares of Rs.100 each aggregating to Rs.4,00,00,000(Previous year T Nil) redeemable after thirteen years from the date of allotment. 8% dividend will be paid to all the Preference shareholders subject to availability of distributable profits. The proceeds from the issue had been utilized towards acquisition of capital assets for the new projects and towards repayment of liabilities incurred for the said projects.

10. The information regarding amounts due to creditors registered under the Micro, Small and Medium Enterprises Development Act, 2006, has been given to the extent available with the Company. The required disclosures of outstanding dues of micro enterprises and small enterprises are as under:

11. Fixed monthly remuneration has been paid to directors in terms of provisions under Schedule XIII ofthe Companies Act, 1956. Fixed monthly remuneration has also been paid to Non-Executive Chairman of the Company under section 309(4) of the Companies Act, 1956. Computation of net profits in accordance with Section 198 read with Section 309(5) ofthe Companies Act, 1956:

12. Disclosures pursuant to Accounting Standard-7 "Construction Contracts" notified in the Companies (Accounting Standards) Rules 2006, are given below:

13. The disclosures required under Accounting Standard 15 "Employees Benefits" notified in the Companies (Accounting Standards Rules 2006, are given below:

Defined Contribution Plan

Contribution to Defined Contribution Plan, recognised are charged off for the year are as under:

Defined Benefit Plan

The employees'' gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is as given by the Life Insurance Corporation of India (LIC) and as per certain estimates made by the management, which has been accepted by the auditors.

14. The Company is setting up a PVC Pipe (Expansion), Producer Gas Plant (Coal Gasifire) and other Expansion Projects at Uluberia, West Bengal during the year. The expenditure incurred during the construction period has been debited to Capital Work-In- Progress and are being apportioned to the assets on the completion of the project. The necessary details such expenditure has been disclosed below:

15. Leases

(a) Operating Lease

The Company has taken various residential/commercial premises under cancelable operating leases. There is no escalation clause in the lease agreement. There are no restrictions imposed by lease agreements. These lease agreements are normally renewed on expiry.

(b) Finance Leases:

(i) Assets acquired on finance lease mainly comprise vehicles. The leases have a primary period, which is fixed and non cancelable. There are no exceptional/restrictive covenants in the lease agreement:

(ii) The minimum lease rentals as at 31st March, 2011 of minimum lease payments in respect of assets acquired under finance lease are as follows:

16. List of related parties with whom the Company has entered into transactions during the year in the ordinary course of business A Relationship

1) Key Management Personnel

Mr. Sajan Kumar Bansal Mr. Sharan Bansal Mr. Devesh Bansal Mr. Siddharth Bansal

2) Parties where key management personnel along with their relatives have significant influence

Cement Manufacturing Company Limited Megha Technical Engineers (P) Limited Bansal TMT Steels Limited SkipperTelelink Limited Star Cement Meghalaya Limited VentexTrade Private Limited

3) Relatives of key management personnel

Sadhu Ram Bansal (father of Mr. Sajan Kumar Bansal)

Sumedha Bansal (wife of Mr. Sharan Bansal)

Rashmi Bansal (wife of Mr. Devesh Bansal)

The business segment has been considered as primary segment.

1 The Company has identified the following business segments taking into account products or group of related products that is subject to risks and returns that are different from those of other business segments, the organisation structure and the financial reporting system

I) Iron & Steel products

II) Infrastructure Projects

III) PVC Products

2 There are no items to be reported under geographical segments, considered as secondary segment, as overseas customers do not costitute a Reportable Segment as per Accounting Standard (AS) 17 "Segment Reporting".

3 There are no inter-segment revenues.

includes 348.940 M.T. (Previous year 3192.320 M.T.) inter unit transfer of semi-finished fabrication items and 6344.430 M.T. (Previous year Nil) Fabricated M S Angle

Notes:

1. Licensed Capacity is not applicable in view of the Company''s products having been delicenced as per licensing policy of Government of India.

2. Installed capacity is as certified by the management and accepted by auditors, being a technical matter.

Find IFSC