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Notes to Accounts of Tata Metaliks Ltd.

Mar 31, 2016

Rights, preferences and restrictions attached to shares

i) Equity shares

The Company has one class of equity shares having a par value of Rs. 10 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.

ii) Non-cumulative redeemable preference shares

Non-cumulative redeemable preference shares having a par value of Rs. 100 carries a fixed rate of dividend of 8.5%. The dividends proposed by the Board of Directors are subject to approval of the shareholders in the ensuing Annual General meeting. The dividends are not accumulated in case it is not approved by the Annual General Meeting. The preference shares are redeemable at par value after a period for 36 months from the date of allotment which was falling due in March 2015. The Board of Directors of Tata Steel Limited at its meeting held on February 06, 2015 have approved the extention of the period of redemption by a further period of 3 years with effect from April 01, 2015. In case of liquidation the preference shareholders will have preference over the equity shareholders over the distribution of remaining assets of the Company.

1. Segment reporting

The Company has identified the business segment as its primary segment. The Company is engaged in production and sale of Pig Iron and hence Pig Iron is the only reportable business segment in accordance with Accounting Standard 17 - Segment Reporting. The Company is operating only within India and hence India is the only geographical segment.

Additional information:

1. The estimate of future salary increases take into account inflation, seniority, promotion and other relevant factors.

2. Discount rate is based on the prevailing market yields of Indian Government securities as at the balance sheet date for the estimated term of the obligations.

3. Expected rate of return on plan assets is based on the average long term rate of return expected on investments of the Fund during the estimated term of the obligation

4. In the absence of detailed information regarding plan assets which is funded with Life Insurance Corporation of India, the composition of each major category of plan assets, the percentage or amount for each category to the fair value of plan assets has not been disclosed.

5. Net laibilities for pension, post retirement medical benefits and gratuities are disclosed in Note 6 under the heading Post-employment defined benefits.

6. Expenses relating to pension and post retirement medical benefits are included under the heading salaries and wages including bonus in Note 22(a) whereas expenses for retiring gratuities are included under the contribution to provident and other funds in Note 22(b).

2. Discontinuing operations

Based on decision of the Board of Directors of the Company at its meeting held on November 19, 2012 the Company has filed an application with the appropriate authority for closure of the Redi Plant, located at Terekhol Road, Dist: Sindhudurg, Redi - 416 517, Maharashtra, in accordance with the provisions of the Industrial Disputes Act, 1947. The application was initially rejected by the authority and the company has filed a review petition before the same authority. In the mean time the Company has negotiated with the employees for settlement and an agreement was signed on March 25, 2013 with the employees'' union. The Company and the employees'' union have filed the settlement details with the Commissioner of Labour to facilitate the closure process. The carrying value of fixed assets, current assets and current liabilities of the Redi Plant as at March 31, 2016, were Rs. 1,187.91 lacs (March 31, 2015 Rs. 1,188.16 lacs), Rs. 25.37 lacs (March 31, 2015 Rs. 42.33 lacs) and Rs. 29.82 lacs (March 31, 2015 Rs. 72.62 lacs) respectively.

3. Leases

Operating lease arrangement as lessee

The Company has entered into a non-cancellable operating lease in respect of vehicles and the lease rental expenses recognised for the year is Rs. 7.84 lacs (previous year: Rs. 13.75 lacs) The lease agreement provides for an option to the Com- pany to renew the lease period at the end of the non-cancellable period. There are no exceptional/ restrictive covenants in the lease agreements.

E6J The Board of Directors of the Company in their meeting held on 10 April, 2013 has approved a scheme of merger with the parent company, Tata Steel Limited with an appointed date of 1 April, 2013. The said application of merger was made to Hon''ble High Court, Calcutta on 13 December, 2013. Accordingly, the Company as per the directions of the Court has taken the approval of its shareholder on 25 March, 2014 and also made an application to Regional Director (RD), Eastern Region (Ministry of Corporate Affairs, Central Govt.) on 9 May, 2014. An affidavit confirming "No Objection" to the scheme of merger was submitted from Regional Director to the High Court in July, 2014. Next hearing date is awaited.

The said scheme would be effective subject to the approval from the Hon"ble High Court of Judicature at Calcutta and Bombay.

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


Mar 31, 2015

1. General Corporate Information

Tata Metaliks Limited ("the Company") is a subsidiary of Tata Steel Limited, engaged in the manufacture of foundry grade pig iron. The Company is having its manufacturing plants at Kharagpur in the state of West Bengal.

Rights, preferences and restrictions attached to shares

i) Equity Shares

The Company has one class of equity shares having a par value of Rs.10 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.

ii) Non-cumulative Redeemable Preference Shares

Non-cumulative redeemable preference shares having a par value of Rs. 100 carries a fixed rate of dividend of 8.5%. The dividends proposed by the Board of Directors are subject to approval of the ensuing Annual General meeting. The dividends are not accumulated in case it is not approved by the Annual General Meeting. The preference shares are redeemable at par value after a period for 36 months from the date of allotment which is falling due in March 2015. The Board of Directors of Tata Steel Limited at its meeting held on 06 February, 2015 has approved the extention of the period of redemption by a further period of 3 years with effect from 01 April, 2015. In case of liquidation the preference shareholders will have preference over the equity shareholders over the distribution of remaining assets of the Company.

(Rs in lacs)

2. Contingent Liabilities and other Commitments As at As at 31.03.2015 31.03.2014

A. Contingent Liabilities

(a) Cenvat credit disallowed 7,870.68 7,376.98 (including interest)

(b) Income Tax 134.62 134.62

B. Others

(a) Guarantees given to banks on behalf subsidiary company for term loans 1 & 2 7,408.62 7,099.34 1 Includes a guarantee denominated in US dollar - USD 11,850,000 (31.03.2014 : USD 11,850,000)

2 Loan outstanding against the guarantee as at 31.03.2015 Rs. 1852.16 Lacs (31.03.2014 3194.70 Lacs ) (b) Bill discounted 9,045.60 1,087.77

3. Tata Steel Limited has given undertakings to Sumitomo Mitsui Banking Corporation not to dispose of the management control in Tata Metaliks DI Pipes Limited (Formerly known as Tata Metaliks Kubota Pipes Limited) held through the Company so long as the dues to Sumitomo Mitsui Banking Corporation is subsisting by Tata Metaliks DI Pipes Limited.

4. Due to micro and small enterprises

Based on and to the extent of information obtained from suppliers regarding their status as Micro, Small or Medium enterprises under Micro, Small and Medium Enterprises Development Act, 2006, there are no amounts due to them as at the end of the year.

5. Segment Reporting

The Company has identified the business segment as its primary segment. The Company is engaged in production and sale of Pig Iron and hence Pig Iron is the only reportable business segment in accordance with Accounting Standard 17 - Segment Reporting. The Company is operating only within India and hence India is the only geographical segment.

6. Related Party Transactions Related party relationship :

Name of the related party Nature of Relationship

Tata Steel Limited Holding Company

Tata Metaliks DI Pipes Limited Subsidiary

TM International Logistics Limited

Tata Sponge Iron Limited

TKM Global Logistics Limited Fellow Subsidiary

Tata Steel Global Procurement Pte Limited

Tata Steel Processing and Distribution Limited

Key Managerial Person -

Mr. Sanjiv Paul : Managing Director

Mr. Sankar Bhattacharya : Company Secretary

Mr. Subhra Sengupta : Chief Financial Officer

7. Discontinuing Operations :

Based on decision of the Board of Directors of the Company at its meeting held on 19 November, 2012 the Company has filed an application with the appropriate authority for closure of the Redi Plant, located at Terekhol Road, Dist: Sindhudurg, Redi - 416 517, Maharashtra, in accordance with the provisions of the Industrial Disputes Act, 1947. The application was initially rejected by the authority and the company has filed a review petition before the same authority. In the mean time the Company has negotiated with the employees for settlement and an agreement was signed on 25 March, 2013 with the employees' union. The Company and the employees' union have filed the settlement details with the Commissioner of Labour to facilitate the closure process. The carrying value of fixed assets, current assets and current liabilities of the Redi Plant as at March 31,2015, were Rs.1,188.16 lacs (31.03.2014Rs.1,229.27 lacs), Rs. 42.33 lacs (31.03.2014Rs.125.68 lacs) and Rs. 72.62 lacs (31.03.2014Rs.1,240.99) respectively. The pre-tax loss on sale of fixed asset of the Redi Plant for the year ended March 31,2015, was Rs 2.2 lacs.

8. Operating Lease arrangement as lessee

The Company has entered into a non-cancellable operating lease in respect of vehicles and the lease rental expenses recognised for the year is Rs. 13.75 lacs (previous year : Rs. 14.27 lacs) The lease agreement provides for an option to the Company to renew the lease period at the end of the non-cancellable period. There are no exceptional/ restrictive covenants in the lease agreements.

The total of future minimum lease payments under non-cancellable operating lease as at 31.03.15 are as follows :

9. Disclosure as required under AS 29

Provisions for entry tax have been recognised in the financial statements considering the following :

(i) The company has a present obligation as a result of past event

(ii) It is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and

(iii) A reliable estimate can be made of the amount of the obligation (Rs. in lacs)

Indication of uncertainty about those outflows The Act is ultra vires on the following ground -

a) The levy has been enacted without obtaining the prior sanction of President of India, which is contrary to the proviso to Article 304(b) of the Constitution of India.

b) Entry tax is compensatory in nature i.e. the utilisation should be for the advancement of the state by creation of consolidated fund, which was not reflected in the Act enacted by state.

c) The purpose of enactment of this Act is basically for generating revenue.

TML have obtained stay order by filling writ petition before Calcutta High Court (single Bench) and attached the mat- ter with cases which are pending before Division Bench.

Major assumptions concerning future events The matter is pending before Hon'ble Calcutta High Court for adjudication. On the grounds of prudence, provision is made. Amount of any expected reimbursement, i.e.., amount of Nil any asset that has been recognised for that expected reimbursement

10. The Board of Directors of the Company in their meeting held on 10 April 2013 has approved a scheme of merger with the parent company, Tata Steel Limited with an appointed date of 1 April 2013. The said application of merger was made to Hon'ble High Court, Calcutta on 13 December 2013. Accordingly, the Company as per the directions of the Court has taken the approval of its shareholder on 25 March 2014 and also made an application to Regional Director (RD), Eastern Region (Ministry of Corporate Affairs, Central Govt.) on 9 May 2014. An affidavit confirming "No Objection" to the scheme of merger was submitted from Regional Director to the High Court in July 2014. Next hearing date is awaited.

The said scheme would be effective subject to the approval from the Hon'ble High Court of judicature at Calcutta and Bombay.

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


Mar 31, 2014

1. Contingent Liabilities and other Commitments

As at 31.03.2014 As at 31.03.2013

Trade receivable

(a) Cenvat credit disallowed (including interest) 7,376.98 6,883.28

(b) Income Tax 134.62 129.90

(c) Guarantees given to banks on behalf subsidiary company for term 7,099.34 6,523.43 loans 1 & 2

1) Includes a guarantee denominated in US dollar - USD 11,850,000 (31.03.2013 : USD 11,850,000)

2) Loan outstanding against the guarantee as at 31.03.2014 Rs. 3,194.70 Lacs (31.03.2013 : Rs. 4,240.23 Lacs)

(d) Bill discounted 1,087.77 329.79

2. The Company has received a demand notice issued by sales tax department against the sales tax dues of Usha Ispat Limited (erstwhile owner of REDI plant) for Rs. 8,744.21 Lacs (31.03.2013: Rs. 8,744.21 Lacs). The Company has acquired only the assets of Usha Ispat Limited from IDBI SASF under SARFAESI Act and not as the successor of business. Company has filed writ petition before High Court of Bombay against the said demand which is pending for disposal.

3. Tata Steel Limited has given undertakings to Sumitomo Mitsui Banking Corporation not to dispose of the management control in Tata Metaliks DI Pipes Limited (Formerly known as Tata Metaliks Kubota Pipes Limited) held through the Company so long as the dues to Sumitomo Mitsui Banking Corporation is subsisting by Tata Metaliks DI Pipes Limited.

4. Due to micro and small enterprises

Based on and to the extent of information obtained from suppliers regarding their status as Micro, Small or Medium enterprises under Micro, Small and Medium Enterprises Development Act, 2006, there are no amounts due to them as at the end of the year.

5. Segment Reporting

The Company is engaged in production of Pig iron.The Company is managed organisationally as a unified entity and according to the management Pig iron is the only segment as envisaged in Accounting Standard (AS) -17 Segment Reporting.

6. Related Party Transactions

Related party relationship :

Name of the related party Nature of Relationship

Tata Steel Limited Holding Company

Tata Metaliks DI Pipes Limited Subsidiary

TM International Logistics Limited TKM Global Logistics Limited

Tata Steel Resources Australia Pty Limited

- Fellow Subsidiary Tata Steel Global Procurement Pte Limited [

Tata Sponge Iron Limited

Tata Steel Processing and Distribution Limited

Key Managerial Person - Mr. Harsh K. Jha Managing Director (Upto: 31 March 2013)

Key Managerial Person - Mr. D. P. Deshpande Executive Director (Upto: 31 March 2013)

Key Managerial Person - Mr. Sanjiv Paul Managing Director (From: 1 April 2013)

Related Party Transactions Name of the related party

Tata Steel Limited

Nature of transaction

Purchase of raw materials

Sale of goods

Services received

Inter Corporate deposit received/ (repaid)

Interest paid

Advance Received

Name of the related party

Tata Metaliks DI Pipes Limited

TM International Logistics Limited

Tata Steel Resources Australia Pty Limited

Tata Steel Global Procurement Pte Limited

Tata Steel Processing and Distribution Limited

Tata Sponge Iron Limited

TKM Global Logistics Limited Mr. Harsh K. Jha Mr. D. P. Deshpande Mr. Sanjiv Paul

Name of the related party

Tata Steel Limited

Tata Metaliks DI Pipes Limited

TM International Logistics Limited

TKM Global Logistics Limited

Tata Steel Global Procurement Pte Limited

Nature of transaction

Preference Capital Contribution Sale of molten metal and BF gas Purchase of goods Rent received Interest received Expenses reimbursed Services received Expenses reimbursed Recovery of expenses Purchase of goods Expenses reimbursed Purchase of goods Purchase of goods Expenses reimbursed Sale of assets Receiving of Services

Remuneration paid

Nature of outstanding

Trade receivables

Inter Corporate Deposits received

Advance Payable

Trade payables

Interest payable

Trade receivables

Inter Corporate Deposits placed

Advance Receivable

Interest receivable

Advances paid

Trade payables

Trade payables

Trade payables

7. Discontinuing Operations :

Based on decision of the Board of Directors of the Company at its meeting held on November 19, 2012 the Company has filed an application with the appropriate authority for closure of the Redi Plant, located at Terekhol Road, Dist: Sindhudurg, Redi - 416 517, Maharashtra, in accordance with the provisions of the Industrial Disputes Act, 1947. The application was initially rejected by the authority and the company has filed a review petition before the same authority. In the mean time the Company has negotiated with the employees for settlement and an agreement was signed on March 25, 2013 with the employees'' union. The Company and the employees'' union have filed the settlement details with the Commissioner of Labour to facilitate the closure process. Consequent to the closure, the Company has entered into a binding sale agreement with a buyer for sale of its entire Plant and Machinery in dis aggregated form and has received a non-refundable advance of Rs. 2,580 lacs. Pursuant to the sale agreement, the Company has discarded/dismantled its Plant and Machinery and Capital work in progress and recognised the resultant loss of Rs. 2081.41 lacs, disclosed as an exceptional item. The carrying value of fixed assets, current assets and current liabilities of the Redi Plant were Rs. 1,229.27 lacs (31.03.13 Rs. 5,698 lacs) Rs. 125.68 lacs (31.03.13 Rs. 777 Lacs) and Rs. 1,240.99 lacs (31.03.13 Rs. 746 Lacs) respectively.

8. Leases

Operating Lease arrangement as lessee

The Company has entered into a non-cancellable operating lease in respect of vehicles and the lease rental expenses recognised for the year is Rs. 14.27 Lacs (previous year: Rs. 14.53 lacs) The lease agreement provides for an option to the Company to renew the lease period at the end of the non-cancellable period. There are no exceptional/ restrictive covenants in the lease agreements.

9. The Board of Directors of the Company and Committee of Directors of Tata Steel Limited have at their respective meetings held on April 10, 2013, approved a scheme of amalgamation of the Company with Tata Steel Limited with an appointed date of April 1, 2013. The said amalgamation would be effective upon obtaining requisite regulatory approvals/ sanction as may be required.

In terms of the above Scheme, the Company shall from the appointed date upto the effective date, carry on and deemed to have carried on all business and activities and shall hold and stand possessed of all and shall be deemed to hold and stand possessed of all its estates, assets, rights, title, interest, authorities, contracts, investments and strategic decision for and on account of, and in trust for Tata Steel Limited.

10. Previous year''s figures have been regrouped/reclassified where necessary to correspond with the current year''s clasification/disclosure.


Mar 31, 2013

1. General Corporate Information

Tata Metaliks Limited ("the Company") is a subsidiary of Tata Steel Limited, engaged in the manufacture of foundry grade pig iron. The Company is having its manufacturing plants at Kharagpur in the state of West Bengal and at Redi in the State of Maharashtra.

2. Contingent Liabilities

As at 31.03.2013 As at 31.03.2013

(a) Cenvat credit disallowed 6,883.28 6,389.59

(b) Income Tax 129.90

(c) Guarantees given to banks on behalf subsidiary company for term loans * * 6,523.43 8,665.56

1. Includes a guarantee denominated in US dollar - USD 11,850,000 (31.03.2012 : USD 11,850,000)

2. Loan outstanding against the guarantee as at 31.03.2013 Rs. 5,544.91 lacs (31.03.2012 : Rs. 7,740.72 lacs)

(d) Bills discounted 329.79

3. The Company has availed sales tax incentive under Part 1 of the 1993 scheme from the Government of Maharashtra against its investment in BF3 at its plant at Redi. Under the scheme the Company has availed deferred payment facility for Sales tax and made payment at net present value as specified in the scheme. As per scheme the Company has to obtain the approval of Director of Industries for closure of the operations of the plant and also to refund the benefits availed along with interest. The Company is in the process of filing application for the waiver of refund of the benefits availed of Rs. 728.17 lacs.

4. The company has received a demand notice issued by sales tax department against the sales tax dues of Usha Ispat Limited (erstwhile owner of REDI plant) for Rs. 87.44 Cr. The Company has acquired only the assets of Usha Ispat Limited from IDBI SASF under SARFAESI Act and not the successor of business. Company has filed writ petition before High Court of Bombay against the said demand which is pending for disposal.

5. Due to micro and small enterprises

Based on and to the extent of information obtained from suppliers regarding their status as Micro, Small or Medium enterprises under Micro, Small and Medium Enterprises Development Act, 2006, there are no amounts due to them as at the end of the year.

6. Segment Reporting

The Company has identified the business segment as its primary segment. The Company is engaged in production and sale of Pig Iron and hence Pig Iron is the only reportable business segment in accordance with Accounting Standard 17 - Segment Reporting. The Company is operating only within India and hence India is the only geographical segment.

7. Impairments

Board of directors in their meeting held on November 19, 2012 decided to close the operation of the Redi plant and sell the assets at disaggregate mode, i.e., selling the plant and land separately. The company has done an independent valuation of its assets and accordingly recognised the impairment of Rs. 4,500 lacs during the current year and included under exceptional items in Note 27 above.

8. Subsequent Events

(a) The Company has purchased the entire shareholding of Kubota Corporation and Metal One Corporation in its subsidiary Tata Metaliks Kubota Pipes Limited on April 9, 2013. Consequently Tata Metaliks Kubota Pipes Limited has become a wholly owned subsidiary with effect from that date.

(b) The Board of directors at their meeting held on April 10, 2013 approved the scheme of amalgamation of the Company and its subsidiary, Tata Metaliks Kubota Pipes Limited with Tata Steel Limited with an appointed date of April 1, 2013. The Scheme is subject to approval of the High Court judicature of Bombay and Calcutta.

9. Discontinuing Operations :

Based on decision of the Board of Directors of the Company at its meeting held on November 19, 2012 the Company has filed an application with the appropriate authority for closure of the Redi Plant, located at Terekhol Road, Dist: Sindhudurg, Redi - 416 517, Maharashtra, in accordance with the provisions of the Industrial Disputes Act, 1947. The application was initially rejected by the authority and the company has filed a review petition before the same authority. In the mean time the Company has negotiated with the employees for settlement and an agreement was signed on March 25, 2013 with the employees'' union. The Company and the employees'' union have filed the settlement details with the Commissioner of Labour to facilitate the closure process. The Company has provided for Rs. 1,069. 56 lacs which has been included under Note 27 - Exceptional item. The carrying value of fixed assets, current assets and current liabilities of the Redi Plant were Rs. 5,698 lacs, Rs. 262 lacs and Rs. 746 lacs respectively.

10. Consumption of raw materials incudes Rs. Nil (Previous year Rs. 478.52 lacs) and change in stocks include f 18.10 lacs (Previous year: Rs. 63.33 lacs) towards write down of closing inventory of Raw materials and finished goods to net realisable value in accordance with Accounting Standard (AS) - 2 - Valuation of Inventory

11. Leases

Operating Lease arrangement as lessee

The Company has entered into a non-cancellable operating lease in respect of vehicles and the lease rental expenses recognised for the year is Rs. 14.53 lacs (previous year: Rs. 15.90 lacs) The lease agreement provides for an option to the Company to renew the lease period at the end of the non-cancellable period. There are no exceptional/ restrictive covenants in the lease agreements.

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


Mar 31, 2012

1. General Corporate Information

Tata Metaliks Limited ("the Company") is a subsidiary of Tata Steel Limited, engaged in the manufacture of foundry grade pig iron. The Company is having its manufacturing plants at Kharagpur in the state of West Bengal and at Redi in the State of Maharashtra.

1 The Term loan of Rs. Nil (31.03.2011: Rs. 2800.00 lacs) from State Bank of India carried a variable rate of interest at 13% and was secured by equitable mortgage over landed properties of Kharagpur unit of the Company together with all buildings, structures and all plant and machinery thereon, on pari passu first charge basis with other term lenders and by way of hypothecation of moveable plant and machinery, stocks, book debts and other current assets on pari passu second charge basis with other term lenders. The loan has been repaid on November 3, 2011.

2 The corporate loan of Rs. Nil (31.03.2011: Rs. 1400.00 lacs) from State Bank of India carried a variable interest of 13% and was secured by equitable mortgage over landed properties of Kharagpur unit of the Company together with all buildings , structures and all plant and machinery thereon, on pari passu first charge basis with other term lenders and by way of hypothecation of moveable plant and machinery, stocks, book debts and other current assets on pari passu second charge basis with other term lenders. The loan has been repaid on October 13, 2011.

3 The Term loan of Rs. Nil (31.03.2011: Rs. 5500.00 lacs) from Canara Bank carried a variable rate of interest at 13.25% and was secured by equitable mortgage over landed properties of Kharagpur unit of the Company together with all buildings, structures and all plant and machinery thereon, on pari passu first charge basis with other term lenders and by way of hypothecation of moveable plant and machinery, stocks, book debts and other current assets on pari passu second charge basis with other term lenders. The loan has been repaid on October 14, 2011.

4 Working Capital Demand Loans / Short Term Working Capital Loans of Rs. 3000.00 lacs (31.03.2011: Rs. 5000.00 lacs) and Cash Credit ofRs. 1146.98 lacs (31.03.2011: Rs. 2100.34 lacs) from banks are secured by way of hypothecation of moveable plant and machinery, stock, book debts and other current assets on pari passu first charge basis and by way of equitable mortgage over landed properties of Kharagpur unit of the Company together with all buildings, structures and all plant and machinery on pari passu second charge basis.

5 Loan from Holding Company of Rs. 2200.00 lacs (31.03.2011; Rs. 2200.00 lacs) is meant for long term use and will be repaid or converted into long term financial instrument after finalisation of the financing plan for the Kamataka Project or March 31, 2014 whichever is earlier. Short term loan from the Holding Company of Rs. 5000.00 lacs has been taken on October 14, 2011 for three months and has been rolled over for further three months.

6 Buyers' Credit from Banks are repayable at the end of six months from the date of disbursement which are falling due from April 2012.

1. Includes Rs. 350.00 lacs on account of the amount contributed to Konkan Railway Corporation Limited (KRCL) for construction of Railway Siding in which the company has a right of preferential use over others for a period of 10 years. Even though the ownership of the railway siding is vested with KRCL, the amount contributed by the company has been capitalised on the basis of the future economic benefits and amortised over a period of 10 years. The depreciation for the current year includes the amortisation charge Rs. 35.00 lacs (Previous year: Rs. 35.00 lacs).

2. Other than lease hold land all other tangible assets are owned by the Company.

2. Contingent Liabilities

As at 31.03.2012 As at 31.03.2011

(a) Cenvat credit disallowed 6,389.59 5,893.19

(b) Bills discounted 679.54 1,002.07

(c) Guarantees given to banks on behalf of subsidiary company for term loans 1&2 8,665.56 7,859.76

1 Includes a guarantee denominated in US dollar - USD 11,850,000 (31.03.2011: USD 11,850,000)

2 Loan outstanding against the guarantee as at 31.03.2012 Rs. 7740.72 lacs (31.03.2011 : Rs. 7865.68 lacs)

3. Due to micro and small enterprises

Based on and to the extent of information obtained from suppliers regarding their status as Micro, Small or Medium enterprises under Micro, Small and Medium Enterprises Development Act, 2006, there are no amounts due to them as at the end of the year.

4. Segment Reporting

The Company is engaged in production and sale of Pig Iron and hence Pig Iron is the only reportable segment in accordance with Accounting Standard 17 - Segment Reporting.

5. Related Party Transactions

Related party relationship :

Name of the related party Nature of Relationship

Tata Steel Limited Holding Company

Tata Metaliks Kubota Pipes Limited Subsidiary

TM International Logistics Limited :

Tata Steel Resources Australia Pty Limited

Tata Steel Processing and Distribution Limited : L Fe||ow Subsidiaries

International Shipping and Logistics FZE :

TRLKrosaki Refractories Limited (Formerly Tata Refractories Limited> Key Managerial Person - Mr. Harsh K Jha Managing Director

1 Ceased to be subsidiary effective May 31, 2011

Defined Benefit Plans

The Company provided the following employee benefits

Funded : Gratuity

Non Funded : Compensated absence

6. The Board of Directors of the Company in its meeting held on September 27, 2011 had decided to divest its 300,000 Ton pig iron manufacturing facility at Redi in Maharashtra following which, the Company had entered into an agreement for its sale for a consideration of Rs. 180 Crores plus working capital as at the date of sale. However, the transaction could not be consummated by the long stop date i.e., March 28, 2012 consequent upon which the parties decided to terminate the agreement by mutual consent on March 30, 2012. The Board continues to evaluate other strategic options including restarting of the operations of the Redi unit and therefore, continues to be included as part of "continuing operations" of the Company.

7. Consumption of raw materials include Rs. 478.52 lacs and Change in stocks include Rs. 63.33 lacs (Previous year : Rs. 58.81 Lacs ) towards write down of closing inventory of Raw materials and finished goods to net realisable value in accordance with Accounting Standard (AS) - 2 - Valuation of Inventory.

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


Mar 31, 2011

( Rs.in Lac)

1. Contingent Liabilities

31.03.2011 31.03.2010

Contingent Liabilities not provided for

a) Cenvat credit disallowed 5,893.19 10,336.45

b) Customs Duty - 20.08

c) Bills Discounted 1,002.07 -

d) Guarantees given to banks on behalf of subsidiary company for term loans1&2 7,859.76 7,871.61

e) Bank Guarantee 389.87 159.87

f) Letters of Credit 1,648.46 -

1 Includes a guarantee denominated in US dollar - USD 11,850,000 (31.03.2010 : USD 11,850,000)

2 Loan outstanding against the guarantee as at 31.03.2011 Rs. 7865.68 Lac (31.03.2010 : * 7849.00 Lac)

3. Estimated amounts of contracts remaining to be executed on capital account and not provided : Rs.132.19 Lacs (As at 31.3.2010 Rs. 121.95 Lac).

2. Related Party Transaction

a) List of Related Parties and Relationship

Name of the Related Party

i) Tata Steel Limited Holding Company

ii) Tata Metaliks Kubota Limited Subsidiary Company

iii) Tata Refractories Limited

iv) TM International Logistics Limited Fellow Subsidiary

v) International Shipping and Logistics Fze

vi) Tata NYK Shipping Pte Limited

vii) Tata Bluescope Steel Limited

viii) JAMIPOL LimitedAssociate of Holding Company

ix) Key Management Personnel

-Mr. Harsh KJhaManaging Director

3. Employee Benefits

Defined Contribution Plans

The Company has recognised, in the Profit & Loss Account for the current year an amount of Rs. 209.56 lac. (Previous year: Rs. 175.45 lac) expenses under defined contribution plans.

4. The Company is engaged in production and sale of Pig Iron and hence Pig Iron is the only reportable segment in accordance with Accounting Standard 17 - Segment Reporting.

5. Based on and to the extent of information obtained from suppliers regarding their status as Micro, Small or Medium enterprises under Micro, Small and Medium Enterprises Development Act, 2006, there are no amounts due to them as at the end of the year.

6. Derivative Instruments

The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations. The use of foreign currency forward contracts is governed by the Company's strategy approved by the Board of Directors, which provide principles on the use of such forward contracts consistent with the Company's Risk Management Policy. The Company does not use forward contracts for speculative purposes.

7. Raw material consumption includes exchange gain (net) on suppliers' credit Rs. 138.92 lac (Previous year gain of Rs. 347.80 lac) and operation and other expenses includes exchange gain (net) on buyers' credit of Rs. 8.91 lac (Previous year gain of Rs. 21.32 lac).

8. Advances recoverable in cash or kind or for value to be received includes Rs. 800 lac (31.03.2010 Rs. 800 lac) paid as advance to West Bengal Industrial Development Corporation Limited (WBIDC) for purchase of land at Kharagpur for a project, which has been dropped by the Company. WBIDC vide its letter dated 6th July, 2009 has informed the Company that as soon as the land procured for the Company's erstwhile proposed project at Kharagpur would be allotted to a new entrepreneur, the amount deposited by the Company will be refunded. In the opinion of the Company, the said amount is recoverable.

9. Figures for the previous year have been restated/regrouped where necessary to conform with figures for the current year.


Mar 31, 2010

1 Contingent Liabilites

2009-10 2008-09

Rs. Rs.

(a) Other claims of workmen - 716,000.00

(b) Customs demands 2,008,000.00 2,008,000.00

(c) Cenvat credit disallowed including interest and penalty 1,033,644,579.30 696,916,949.00

(d) Guarantee given to a third party on companys business 15,987,000.00 35,702,572.00

(e) The company has given corporate guarantees to the two banks of its subsidiary

2 Minor and Medium scale business entities :

There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at March 31, 2010. The above information regarding micro, small and medium enterprises 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.

3 Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs. 12,195,524.00 (31.03.2009 : Rs. 11,427,203.50).

4 (a) Information about Primary Business Segments

The company has considered business segment as the primary segment for disclosure. The Company is engaged in the manufacture of pig iron, which in the context of Accounting Standard 17 as notified under the Companies (Accounting Standards) Rules, 2006 is considered as the only business segment.

(b) Information about Secondary Segments :- Geographical

The Company sells its products within India. The conditions prevailing in India being uniform, no separate geographical segment disclosure is considered necessary. The export of pig iron is through export house (Tata International Limited).

5 Related Party Disclosures

(a) List of Related Parties and Relationship

Party Relationship

A. Tata Steel Limited Holding Company

B. Tata Metaliks Kubota Pipes Limited Subsidiary Company

C. Hooghly Met Coke Limited Fellow Subsidiary

D. Tata Refractories Limited Fellow Subsidiary

E. TM International Logistic Limited Fellow Subsidiary

F. Jamipol Ltd. Fellow Subsidiary

G. Tata Blue Scope Ltd. Fellow Subsidiary

H Tata NYK Shipping Pte Ltd. Fellow Subsidiary

I. Key Management Personnel Whole Time Director

Mr Harsh K. Jha - Managing Director

6 Taxation

(a) Provision for Current Tax for the year ended 31st March, 2010 Rs 50,946,147.78 has been made under the provisions of Section 115 JB of the Income - tax Act ,1961 by way of Minimum Alternate Tax i.e., where the estimated normal income-tax payable under the usual tax payable method is less than the prescribed percentage of the adjusted book profits of the Company which is deemed to be the total income of the Company.

7. Accounting Policy on Employee Benefits

(i) Provision for gratuity as on 31.03.2010 has been computed on the basis of actuarial valuation for the year ended 31st March, 2010 provided by Watson

(ii) Disclosures in

(iii) below in respect of DBS have been given to the extent practical and the availability of information.

8. Raw material consumption includes exchange gain (net) on suppliers credit Rs 34,780,750.32 (Year ended 31st March 2009 exchange loss Rs 385,227,707.82 )and Operation and other expenses includes exchange gain (net) on buyers credit Rs. 2,132,031.86 (Year ended 31st March 2009 exchange loss : Rs.89,534,109.10)

9. No Debenture Redemption Reserve (DRR) Rs 150,000,000.00 (2008 - 09 : Rs 37,500,000.00 ) for the year ; cumulative DRR Rs 187,500,000.00 (31.03.2009 : Rs 37,500,000.00 ) has been set up in respect of 12.75% Non Convertible Secured Debentures of the issue price of Rs 450,000,000 (31.03.2009 : Rs 450,000,000) , as required to be set up under Section 117C of the Companies Act ,1956 , in view of the cumulative loss position as at 31st March , 2010. These debentures are redeemable between 7th January, 2012 and 6th January, 2014 at par in three annual instalments in the ratio of 30:30:40. DRR would be set - up in future when there are adequate profits.

10. Advances recoverable in cash or in kind or for value to be received includes Rs 80,000,000.00 (31.03.2009 : Rs 95,000,000.00) advances given in earlier years to West Bengal Industrial Development Corporation Limited (WBIDC) for purchase of land in Kharagpur for a project , which has been dropped by the Company . WBIDC vide its letter dated 6th July , 2009 has informed the Company that as soon as the land procured for the Companys erstwhile proposed project at Kharagpur would be allotted to a new entrepreneur the amount deposited by the Company with WBIDC towards the said procurement will be refunded. In the opinion of the Company, the said amount is considered good of recovery.

11. Figures for the corresponding previous year have been regrouped / recast, wherever necessary, to conform to this years classification.

 
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