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Notes to Accounts of Tata Sponge Iron Ltd.

Mar 31, 2015

1. CORPORATE INFORMATION

Tata Sponge Iron Limited which has its manufacturing facility at Bileipada Odisha is engaged in production of sponge iron by direct reduction method of iron ore and generation of power from waste heat.

2. SHARE CAPITAL

(a) Rights, preferences and restrictions attached to 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.

3. CONTINGENT LIABILITIES

Claims against the company not acknowledged as debt;

(a) Income tax 346.15 507.05

(b) Sales Tax/Odisha Value Added Tax - 1,001.96

(c) Central excise duty - 684.40

(d) Odisha Entry tax 2,579.93 2,579.93

(e) Demand from SECL 152.13 152.13

(f) Demand from Ministry of Coal against 3,250.00 3,250.00 Radhikapur coal block

(g) Others 549.26 -

4. (a) In the month of November 2012, Ministry of Coal ("MoC") issued notices to the Company for invocation of bank guarantee ("BG") of Rs. 3,250 lac submitted towards performance of conditions for allocation of coal block.The Hon'ble High Court of Delhi vide its order dated October 30, 2014 has granted a stay on invocation of bank guarantee. The High Court also directed the Company to keep the bank guarantee valid till 28th May 2015 by which the Union of India has been directed to take a decision. Pending finalisation of the matter,the BG amount continues to be disclosed as a contingent liability.

(b) During pendency of the aforesaid matters in Delhi High Court, the Hon'ble Supreme Court of India vide its order dated September 24, 2014 has cancelled allocation of 214 coal blocks including the Radhikapur (East) Coal Block which was allotted to the Company on February 07, 2006. The carrying value of investments made in Radhikapur East Coal Block as on March 31st, 2015 is ' 18,074.18 lacs.

(c) Pursuant to the judgment of Hon'ble Supreme Court of India, the Government of India has promulgated Coal Mines (Special Provision) Rules, 2014 ("Rules") for allocation of the coal mines through auction and matters related thereto. In terms of the said Rules, the successful bidder will be called upon to pay to the prior allocattee the expenses incurred by the prior allocatee towards land and mine infrastructure. Pursuant to MoC's directive seeking the details of expenses vide letter dated December 26, 2014, the Company has furnished the required statement of expenses on January 5, 2015. Based on the Rules and necessary legal opinion obtained by the company, no provision is considered necessary.

5. Cross Subsidy Surcharge payable to power distribution companies

In 2012-13, the Company injected power to State Grid beyond the period of invocation of section 11 i.e. June, 2012 by the Government of Odisha. Subsequently the Company continued injecting power to State Grid due to refusal of open access for supply of power to the parent Company, Tata Steel Limited. Consequently, the Company could not qualify to be CGP in the said year and it has filed a case before Appellate Tribunal against the order of OERC to consider the period of injection to State Grid as self consumption and the matter is pending for adjudication. As a matter of prudence, the amount of Rs. 601 lacs has been recognized as provision in the books during the year.

5. Estimated amounts of contracts remaining to be executed on capital account and not provided for : Rs. 844.29 lacs (As at March 31,2014: Rs. 894.85 lacs) [Net of advances Rs. 109.09 lacs (As at March 31,2014: Rs.7.26 lacs)].

6. SALES TAX

(a) The Company had filed a writ petition before the High Court of Orissa for sales tax exemption for a period of two years w.e.f. 10 June 1997 as a Pioneer Unit. The High Court initially ruled that the Company should pay the sales tax under dispute pending disposal of the writ petition. Accordingly, the Company paid Sales tax, which had not been collected from customers, and amounts aggregating to Rs. 573.73 lacs had been charged to the Statement of Profit and Loss during the years 1997-98 to 1999-2000.

The High Court directed the Sales Tax Authorities to refund the amount after ascertaining that the said refund shall not unjustly enrich the Company. The Sales Tax Officer passed the order stating that the refund shall unjustly enrich the Company against which the Company has filed a writ petition in the High Court challenging the correctness of the assessment and the same is pending. No credit has been taken in the accounts, as the matter has not reached finality.

(b) As per Industrial Policy Resolution 1992 of Government of Orissa, the Company has to pay a minimum sales tax of Rs. 252.56 lacs before availing exemption from sales tax on incremental sale of Sponge Iron from Kiln 1 and 2. The Company was paying the above amount until the rate of sales tax was reduced. With reduction in rate of sales tax, the Company contends that the above limit of Rs. 252.56 lacs has to correspondingly reduce and accordingly made reduced payment.The Company however has provided for the differential amount upto the date of availing the benefit and total provision till March 31,2012 amounts to Rs. 513.83 lacs. Pending assessments for the years 2008-09 to 2011-12, The Company has started collecting sales tax on sale of sponge iron produced in those kilns w.e.f. April 01, 2012 and depositing the same with Sales Tax authorities after availing set off of applicable input tax credit.

7. RELATED PARTY TRANSACTION

(a) List of Related Parties and relationship

Name of the Related Party Relationship

(i). Tata Steel Limited Holding Company

(ii). TSIL Energy Limited Wholly owned Subsidiary

(iii). TM International Logistics Limited

(iv). Tata Metaliks Limited

(v). Kalimati Investments Company Limited

(vi). Jamshedpur Utilities & Services Fellow Subsidiary Company Limited

(vii) Tayo Rolls Limited

(viii) Tata Steel Global Procurement Co. Pte. Ltd.

(ix). The Tinplate Company of India Limited

(x) Mr.D P Deshpande, Managing Director Key Managerial Personnel

(xi) Mr.Sanjay Kumar Pattnaik,Executive Key Managerial Personnel Director

(xii) Mr.S K Mishra , Chief Financial Key Management Personnel Officer

(xiii) Mr.S S Dhanjal , Company Secretary Key Management Personnel

* Kalimati Investments Company Limited (KICL) ), pursuant to a scheme of amalgamation whereby KICL has been amalgamated with Tata Steel Limited.

8. EMPLOYEE BENEFITS

(a) Defined Benefits Plans and other long term employee benefits

The Company operates post retirement defined benefit plans as follows:

Post retirement defined benefit plans

(i) Post Retirement Gratuity [Funded]

(ii) Post Retirement Medical Benefits of Past Managing Directors (PRMB) [Unfunded]

(iii) Pension to Past Managing Directors [Unfunded]

9. SEGMENT REPORTING

(a) The Company has identified sale of power as separate business segment other than sale of sponge iron considering the requirements under Accounting Standard - 17 on "Segment Reporting". Further, as the Company's products are sold primarily in India there is no reportable secondary segment i.e. Geographical Segment.

(b) Segment Revenue, Segment Results, Segment Assets and Segment Liabilities include the respective amounts identifiable to each of the segments as also amounts allocated on a reasonable basis. The expenses, which are not directly relatable to the business segment, are shown as unallocable. Assets and liabilities that cannot be allocated between the segments are shown as unallocable assets and liabilities respectively.

10. 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.

11. OPERATING LEASES

The Company has cancellable operating lease agreements for office spaces and residential accommodations. Tenure of leases generally vary from less than a year to 3 years. Terms of such lease include option for renewal on mutually agreed terms. Operating lease rental expenses aggregating Rs. 77.90 lacs (2013-14: Rs. 73.04 lacs) have been debited to the Statement of Profit and Loss.

12. Disclosure as required under AS 29

Provisions for interest on income tax and others 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

13. Previous year figures have been regrouped / reclassified wherever necessary to correspond with the current period classification / disclosure.


Mar 31, 2014

1 CONTINGENT LIABILITIES

Contingent liabilities not provided for

(a) Income tax 169.00 230.44

(b) Sales Tax/Odisha Value Added Tax 1,001.96 1,001.96

(c) Central excise duty 684.40 703.17

(d) Odisha Entry tax 2,579.93 -

(e) Demand from SECL 152.13 162.61

(f) Demand from Ministry of Coal against Radhikapur coal block 3,250.00 3,250.00

2 (a) The Company has received a notice dated November 23, 2012 from the Ministry of Coal ("MoC") for encashment of bank guarantee ("BG") of Rs. 3,250 lacs on the ground that there was a delay in mining at the Radhikapur East coal block allotted to the Company along with two other companies. The Company contends that the delay is mainly attributable to both Central and State Government in granting permissions/ approvals for various critical milestones. The Company has moved to the Hon''ble High Court of Delhi against invocation and encashment of Bank Guarantee by the MoC and the hearing is in process. Pending disposal by the Hon''ble High Court of Delhi and based on legal opinion obtained by the Company, the amount has been disclosed as contingent liability in the financial statements for the year ended March 31, 2014.

(b) The Company earlier applied to the MoC for revision of the zero/normative date of production vide its application dated April 30, 2012. The MoC has rejected the application vide its letter dated February 11, 2014. The Company will initiate legal proceedings against the MoC''s decision.

(c) The Company has received another notice dated February 17, 2014 citing deallocation of the Coal Block on the ground that the Company could not obtain environmental clearance , stage I forest clearance and there has been delay in coal mining. However MoC has further stated that action is put on hold in view of the interim order of the Hon''ble Delhi High Court dated February 12, 2014. The Company contends that the grounds for de-allocation stated by the MoC are also part of notice dated November 23, 2012 which is challenged by the Company and the matter is pending disposal by the Hon''ble High Court. The Company has again moved to the Hon''ble High Court of Delhi against de-allocation of the block and obtained a status quo order from the Court. Pending disposal of the Company''s case before the Hon''ble High Court of Delhi and based on legal opinion obtained by the Company, no provisions have been considered necessary for its exposure in the Coal Block.

The Company''s carrying value in the Radhikapur East coal block as at March 31, 2014, is Rs. 18,150 lacs.

3 Estimated amounts of contracts remaining to be executed on capital account and not provided for : Rs. 894.85 lacs (As at

March 31, 2013: Rs. 752.32 lacs) [Net of advances Rs. 7.26 lacs (As at March 31, 2013 Rs.1.07 lacs)].

4 SALES TAX

(a) The Company had filed a writ petition before the High Court of Orissa for sales tax exemption for a period of two years w.e.f. June 10, 1997 as a Pioneer Unit. The High Court initially ruled that the Company should pay the sales tax under dispute pending disposal of the writ petition. Accordingly, the Company paid Sales tax, which had not been collected from customers, and amounts aggregating to Rs. 573.73 lacs had been charged to the Statement of Profit and Loss during the years 1997-98 to 1999-2000.

The High Court directed the Sales Tax Authorities to refund the amount after ascertaining that the said refund shall not unjustly enrich the Company. The Sales Tax Officer passed the order stating that the refund shall unjustly enrich the Company against which the Company has filed a writ petition in the High Court challenging the correctness of the assessment and the same is pending. No credit has been taken in the accounts, as the matter has not reached finality.

(b) As per Industrial Policy Resolution 1992 of Government of Orissa, the Company has to pay a minimum sales tax of Rs. 252.56 lacs before availing exemption from sales tax on incremental sale of Sponge Iron from Kiln 1 and 2. The Company was paying the above amount until the rate of sales tax was reduced. With reduction in rate of sales tax, the Company contends that the above limit of Rs. 252.56 lacs has to correspondingly reduce and accordingly is making reduced payment. The Company however has provided for the differential amount upto the date of exhausting the benefit of exemption and the total provision till March 31, 2012 amounts to Rs. 513.83 lacs. Pending assessments for the years 2008-09 to 2011-12, the Company has started collecting sales tax on sale of sponge iron produced in those kilns w.e.f. April 1, 2012 and depositing the same with Sales Tax authorities after availing set off of applicable input tax credit.

5 Segment Reporting

(a) The Company has identified sale of power as separate business segment other than sale of sponge iron from the current year considering the requirements under Accounting Standard - 17 on "Segment Reporting" as notified under Companies (Accounting Standards) Rules, 2006 and accordingly the disclosures have been made. Further, as the Company''s products are sold primarily in India there is no reportable secondary segment i.e. Geographical Segment. As sale of power has become reportable from the current year comparatives are not applicable.

(b) Segment Revenue, Segment Results, Segment Assets and Segment Liabilities include the respective amounts identifiable to each of the segments as also amounts allocated on a reasonable basis. The expenses, which are not directly relatable to the business segment, are shown as unallocable. Assets and liabilities that cannot be allocated between the segments are shown as unallocable assets and liabilities respectively.

6 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.

7 Disclosure as required under AS 29

Provision for interest on Income tax has 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

8 Previous year figures have been regrouped / reclassified wherever necessary to correspond with the current period classification / disclosure.


Mar 31, 2013

01 CORPORATE INFORMATION

Tata Sponge Iron Limited which has its manufacturing facility at Bileipada Odisha is engaged in production of sponge iron by direct reduction method of iron ore and generation of power from waste heat.

02 During the financial year 2012-13, Tata Steel Limited has acquired 1,734,040 equity shares, representing 11.26% of outstanding equity share, through a voluntary open offer from the shareholders of the Company at Rs.375/- per share, consequently the holding of Tata Steel Limited increased to 51% with effect from August 28,2012 and accordingly the Company became subsidiary of Tata Steel Limited.

03 The Company has incorporated a wholly owned subsidiary on November 20, 2012 named "TSIL Energy Limited (TSIL Energy)". An amount of Rs. 6.01 lacs has been invested in the fully paid-up equity shares of TSIL Energy having a face value of Rs. 10 each.

4 CONTIGENT LIABILITIES

Contingent liabilities not provided for

a). Income tax 230.44 484.47

b). Sales Tax/Orissa Value Added Tax 1,001.96 1,001.96

c). Central excise duty 703.17 702.04

d). Demand from SECL 162.61 -

e). Demand from Ministry of Coal against Radhikapur coal block 3,250.00 -

5 The Company had received a notice on November 23, 2012 from the Ministry of Coal (MoC) for encashment of bank guarantee (BG) of Rs. 3250 lacs on the ground that there was a delay in commissioning the Radhikapur coal block allotted to the Company along with M/s Scaw Industries Limited and SPS Sponge Iron Limited. The Company contends that the delay in commissioning of the project is mainly attributable to both Central and State Governments in granting permissions/ approvals for various critical milestones. Further, the Company has also applied to the MoC for extension of the normative date of production on account of the above delays which is still pending. The Company had moved to Hon''ble High Court of Delhi against the revocation of BG by the MoC and the hearing is in process. Pending disposal by the MoC of the Company''s application seeking extension of the normative date of production and the disposal of the Company''s case before the Hon''ble High Court of Delhi, the amount has been disclosed as a contingent liability in the financial statements for the year ended March 31, 2013.

6 Estimated amounts of contracts remaining to be executed on capital account and not provided for : Rs. 752.32 lacs (As at March 31,2012: Rs. 918.99 lacs ) [Net of advances Rs. 1.07 lacs (As at March 31,2012 Rs.6.10 lacs)].

7 SALESTAX

a). The Company had filed a writ petition before the High Court of Orissa for sales tax exemption for a period of two years w.e.f. June 10, 1997 as a Pioneer Unit. The High Court initially ruled that the Company should pay the sales tax under dispute pending disposal of the writ petition. Accordingly, the Company paid Sales tax, which had not been collected from customers, and amounts aggregating to Rs. 573.73 lacs had been charged to the Statement of Profit and Loss during the years 1997-98 to 1999-2000.

The High Court directed the Sales Tax Authorities to refund the amount after ascertaining that the said refund shall not unjustly enrich the Company. The Sales Tax Officer passed the order stating that the refund shall unjustly enrich the Company against which the Company has filed a writ petition in the High Court challenging the correctness of the assessment and the same is pending. No credit has been taken in the accounts, as the matter has not reached finality.

b). As per Industrial Policy Resolution 1992 of Government of Orissa, the Company has to pay a minimum sales tax of Rs. 252.56 lacs before availing exemption from sales tax on incremental sale of Sponge Iron from Kiln 1 and 2. The Company was paying the above amount until the rate of sales tax was reduced. With reduction in rate of sales tax, the Company contends that the above limit of Rs. 252.56 lacs has to correspondingly reduce and accordingly is making reduced payment. The Company however has provided for the differential amount upto the date of exhausting the benefit of exemption and the total provision till March 31, 2012 amounts to Rs. 513.83 lacs. Pending assessments for the years 2008-09 to 2011-12, the Company has started collecting sales tax on sale of sponge iron produced in those kilns w.e.f. April 1, 2012 and depositing the same with Sales Tax authorities after availing set off of applicable input tax credit.

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

9 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.

10 The foreign currency exposures at the year end that have not been hedged by a derivative instrument or otherwise are given below:

11 Disclosure as required under AS 29

Provisions for Sales tax and 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

12 Previous year figures have been regrouped / reclassified wherever necessary to correspond with the current period classification / disclosure.


Mar 31, 2012

01 CORPORATE INFORMATION

Tata Sponge Iron Limited which has its manufacturing facility at Bileipada Odisha is engaged in production of sponge iron by direct reduction method of iron ore and generation of power from waste heat.

Rights, preferences and restrictions attached to 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.

02 Estimated amounts of contracts remaining to be executed on capital account and not provided for : Rs.918.99 lacs (As at 31.3.2011: Rs. 658.98 lacs) [Net of advances Rs. 6.10 lacs (Asat31.03.2011 Rs.10.90lacs)].

03 The Company had been allotted a Coal block along with two other companies in 2006-07. The investment and the operation of the mine would be done by the company as the leader of the group. The company has paid advance payments for acquisition of land. The Company has arranged for bank guarantee of Rs. 3250.00 lacs as at 31.03.2012 (As at 31.03.2011 Rs.3250.00 lacs ).

04 SALES TAX

a). The Company had filed a writ petition before the High Court of Orissa for sales tax exemption for a period of two years w.e.f. 10th June 1997 as a Pioneer Unit. The High Court initially ruled that the Company should pay the sales tax under dispute pending disposal of the writ petition. Accordingly, the Company paid Sales tax, which had not been collected from customers, and amounts aggregating to Rs 573.73 lacs had been charged to the Profit & Loss Account during the years 1997-98 to 1999-2000.

The High Court directed the Sales Tax Authorities to refund the amount after ascertaining that the said refund shall not unjustly enrich the Company. The Sales Tax Officer passed the order stating that the refund shall unjustly enrich the Company against which the Company has filed a writ petition in the High Court challenging the correctness of the assessment and the same is pending. No credit has been taken in the accounts, as the matter has not reached finality.

b). As per Industrial Policy Resolution 1992 of Government of Orissa, the company has to pay a minimum sales tax of Rs. 252.56 lacs before availing exemption from sales tax on incremental sale of Sponge Iron from Kiln 1 and 2. The company was paying the above amount until the rate of sales tax was reduced. With reduction in rate of sales tax, the company contends that the above limit of Rs. 252.56 lacs has to correspondingly reduce and accordingly is making reduced payment. The company however has provided for the differential amount of Rs. 513.83 lacs as at 31st March 2012 (Asat31.03.2011 Rs. 397.92lacs).

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

06. 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.

07. 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.

08. DISCLOSURE AS REQUIRED UNDER AS 29

Provisions for Sales tax and 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

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


Mar 31, 2010

1. Contingent Liabilities

31.03.2010 31.03.2009 Rs. In lacs Rs. In lacs

Contingent Liabilities not provided for

a) Income tax 92.46 87.92

b) Bank Guarantee 5,360.79 5,214.23

c) Letter of credit 101.31 57.44

2. Estimated amounts of contracts remaining to be executed on capital account and not provided: Rs,444.48 lacs (As at 31.3.2009 Rs. 482.50 lacs) [Net of advances Rs. Nil (As at 31.03.2009 Rs. Nil)].

3. The Company had been allotted a Coal block along with two other companies in 2006-07. The investment and the operation of the mine would be done by the company as the leader of the group. The company has paid advance payments for acquisition of land. The Company has arranged for bank guarantee of Rs. 3250.00 lacs as at 31.03.2010 (As at 31.03.2009 Rs. 3250.00lacs).

4. Sales Tax

a) The Company had filed a writ petition before the High Court of Orissa for sales tax exemption for a period of two years w.e.f. 10th June 1997 as a Pioneer Unit. The High Court initially ruled that the Company should pay the sales tax under dispute pending disposal of the writ petition. Accordingly, the Company paid Sales tax, which had not been collected from customers, and amounts aggregating to Rs 573.73 lacs had been charged to the Profit & Loss Account during the years 1997-98 to 1999-2000.

The High Court directed the Sales Tax Authorities to refund the amount after ascertaining that the said refund shall not unjustly enrich the Company. The Sales Tax Officer passed the order stating that the refund shall unjustly enrich the Company against which the Company has filed a writ petition in the High Court challenging the correctness of the assessment and the same is pending. No credit has been taken in the accounts, as the matter has not reached finality.

b) As per Industry Policy Resolution 1992 of Government of Orissa, the company has to pay a minimum sales tax of Rs. 252.56 lacs before availing exemption from sales tax on incremental sale of Sponge Iron from Kiln 1 and 2. The company was paying the above amount until the rate of sales tax was reduced. With reduction in rate of sales tax, the company contends that the above limit of Rs. 252.56 lacs has to correspondingly reduce and accordingly is making reduced payment. The company however has- provided for the unpaid amount of Rs. 271.64lacsasat31stMarch2010(Asaf37.03.2009Rs. 145.36lacs).

5. Related party transaction

a) List of Related Parties and Relationship Name of the Related Party

i) Tata Steel Limited Promoter Company holding more than 20%

ii) Key Management Personnel

Mr. Suresh Thawani Managing Director

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

7. 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.

8. Disclosure as required under AS 29

Provisions for Sales tax and 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

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



 
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