Dec 31, 2013
1. a) Terms/ rights attached to equity shares
The Company has only one class of equity shares having a par value of
Rs.10 per share. Each holder of equity shares is entitled to one vote
per share. The dividend, if any, proposed by the Board of Directors is
subject to approval of the shareholders in ensuing Annual General
Meeting. During the year ended 31st December 2013, the Company has not
declared any dividend (year ended 31st December 2012 : Nil)
In the event of liquidation of the Company, the holders of the equity
shares will be entitled to receive remaining assets of the Company,
after distribution of all preferential amounts, if any. The
distribution will be in proportion to the number of equity shares held
by the shareholders.
2. Exceptional item comprises of claim paid to an ex-employee as per
settlement agreement dated 25st April 2013 of Rs. 4,678,293 and
reimbursement of legal cost of Rs. 2,190,491.
3. CONTINGENT LIABILITIES (TO THE EXTENT NOT PROVIDED FOR)
As at As at
31/12/2013 31/12/2012
(Rs.) (Rs.)
a) Claims against Company not
acknowledged as debts - 8,660,591
b) Guarantees given by banker to various
customers for performance and other 11,047,472 11,672,642
contingencies for which the Company has
given counter guarantee to the bank.
Description of contingent liabilities:
Sr.
No. Contingent liability Brief description
1. Claims not acknowledged as debt Arbitration application filed
against the Company by one of
its ex- employee.
2. Guarantees given by the bank As a part of its operation, the
Company has given bank
guarantees to its customers.
Guarantees generally represent
irrevocable assurances that the
Company will make payment in
the event the Company fails to
fulfill its performance or
financial obligations.
4. The Company is required to comply with the transfer pricing
regulations under Section 92-92F of The Income Tax-Act, 1961. The
management is of the opinion that its international transactions are at
arms length and that the aforesaid legislation will not have any impact
on the financial statements, particularly on the amount of tax expense
and that of provision for taxation.
5. In respect of import transaction of the Company, Terruzzi Fercalx
S.p.A., the holding company had made payment to the supplier
aggregating to USD 727,637 (as at 31/12/2013 Rs. 45,026,202) after the
Company has received Reserve Bank of India (RBI) approval.
The same is disclosed under "Other Current Liability" as "Due to
Holding company". As the Company could not remit the funds to its
holding company within the time allowed by RBI, the Company has sought
extension of time for remittance from RBI and received such extension
from time to time. Latest extension was received vide RBI letter dated
22 November 2012 for a period of two months from the date of receipt of
the letter by the Company. However, the Company could not remit the
funds to its holding company till date. The Company is in the process
of taking necessary action for settlement of the transactions.
6. The balances in respect of certain receivables, payables and loans
and advances are subject to confirmation, reconciliation and consequent
adjustments, if any. The management does not expect any material
difference affecting the financial statements on such reconciliation /
adjustments.
7. Previous year''s figures have been regrouped/ reclassified wherever
necessary to confirm to the current year''s classification.
Dec 31, 2012
A) Terms/ rights attached to equity shares
The Company has only one class of equity shares having a par value of
Rs.10 per share. Each holder of equity shares is entitled to one vote
per share. The dividend, if any, proposed by the Board of Directors is
subject to approval of the shareholders in ensuing Annual General
Meeting. During the year ended 31 December 2012, the Company has not
declared any dividend (year ended 31 December 2011 : Nil)
In the event of liquidation of the Company, the holders of the equity
shares will be entitled to receive remaining assets of the Company,
after distribution of all preferential amounts, if any. The
distribution will be in proportion to the number of equity shares held
by the shareholders.
b) The Company has not issued any bonus shares during the five years
preceding the balance sheet date.
Note: The Company has not received any information from its suppliers
regarding their registration under the ''Micro, Small and Medium
Enterprises Development Act, 2006''. Hence, interest if any payable as
required under the Act has not been provided and the information
required to be given in accordance with Section 22 of the said Act, is
not ascertainable and hence, not disclosed.
Notes:
1) Secondary segments are identified by the management as per the
requirements of Accounting Standard (AS) - 17 ''Segment Reporting''
taking into account the organisation structure as well as the differing
risks and returns.
2) The segment revenue and assets include revenue and assets, which are
identifiable with each segment and amount allocated to the segments on
a reasonable basis.
3) Figures in brackets are corresponding figures for the previous year.
1 LEASES
The Company has taken office premises and residential flats under
operating lease that are renewable on a periodic basis at the option of
both the lessor and lessee. The period of lease ranges from 11 months
to 36 months and are cancelable in nature. The amount of minimum lease
payments with respect to the above lease recognized in the statement of
profit and loss for the year is Rs. Nil (previous year: Rs. 583,450).
2 The Company is required to comply with the transfer pricing
regulations under Section 92-92F of The Income Tax-Act, 1961. The
management is of the opinion that its international transactions are at
arms length and that the aforesaid legislation will not have any impact
on the financial statements, particularly on the amount of tax expense
and that of provision for taxation.
3 There was no impairment loss on fixed assets on the basis of review
carried out by the management in accordance with Accounting Standard
(AS) -28 ''Impairment of Assets''.
4 The balances in respect of certain receivables, payables and loans
and advances are subject to confirmation, reconciliation and consequent
adjustments, if any. The management does not expect any material
difference affecting the financial statements on such reconciliation /
adjustments.
5 Previous year''s figures have been regrouped / reclassified
wherever necessary to confirm to the current year''s classification
which is as per revised Schedule VI to the Companies Act, 1956.
Dec 31, 2010
1) In respect of the stock of work-in-progress cost is estimated by the
management. In view of the nature of activity of the Company, it is not
considered feasible / practical by the management to compute cost of
work-in-progress using FIFO or weighted average basis. The basis of
computing cost used is, to that extent, a deviation from that
prescribed by the Accounting Standard (AS)-2 Valuation of
Inventories. The impact on profit for the period, if any, due to above
deviations is not ascertainable.
2) The Company had revalued certain fixed assets as on 15/10/1989 based
on the report of an approved valuer. The plant and machinery had been
revalued at replacement value and other assets had been revalued at
fair market value. The resultant net increase in the book value of the
said assets amounting to Rs. 6,012,488 was credited to Revaluation
Reserve.
An amount equivalent to depreciation on the amount of net increase in
the value of fixed assets is transferred from revaluation reserve to
profit and loss account.
3) Contingent liabilities not provided for and commitments as at
period/year-end are as follows:
As at As at
31/12/2010 31/03/2010
RS. RS.
a) Claims against Company not
acknowledged as debts. Nil 626,091
b) Guarantees given by banker to
various customers for performance and
other contingencies for which the Company
has given counter guarantee to the
bank 16,960,264 23,715,993
Description of contingent liabilities :
Sr.
No.
Contingent liability Brief description
1. Claims not acknowledged as debt Notice / legal proceedings
against the Company by its
suppliers for claims which
are not accepted by the
Company. The management does
not expect the outcome of
these to have a material
adverse effect on the
Companys financial condition.
2. Guarantees given by the bank As a part of its operation,
the Company has given bank
guarantee to its customers.
Guarantee generally represents
irrevocable assurances that the
Company will make payment in
the event the Company fails to
fulfill its performance or
financial obligations.
5) Quantitative Information (As certified by the Management):
1) Licenced capacity : Not applicable
2) Installed capacity : Not applicable
Notes:
1) Secondary segments are identified are as per the requirements of
Accounting Standard (AS)-17 Segment Reporting taking into account the
organisation structure as well as the differing risks and returns.
2) The segment revenue and assets include revenue and assets, which are
identifiable with each segment and amount allocated to the segments as
a reasonable basis.
4) Figures in brackets represent previous year amount.
5) Related party disclosures:
I) Related party relationship:
Holding Company Terruzzi Fercalx SPA.
Notes:
1) The related party relationships have been determined by the
management on the basis of the requirements of the Accounting Standard
(AS) -18 "Related Party Disclosures" and the same have been relied upon
by the Auditors.
2) The relationships, as mentioned above, pertain to those related
parties with whom transactions have taken place during the period,
except where control exists.
6) There was no impairment loss on fixed assets on the basis of review
carried out by the management in accordance with Accounting Standard AS
-28 "Impairment of Assets".
7) The balances in respect of certain debtors, creditors and loans and
advances are subject to confirmation reconciliation and consequent
adjustments, if any.
8) Previous years figures have been rearranged or regrouped wherever
necessary to confirm with the figures of current period. Current
period figures are for nine months and as such not comparable with
previous year figures.
Mar 31, 2010
1) In respect of the stock of work-in-progress cost is estimated by the
management. In view of the nature of activity of the Company, it is not
considered feasible / practical by the management to compute cost of
work-in-progress using FIFO or weighted average basis. The basis of
computing cost used, is to that extent a deviation from that prescribed
by the Accounting Standard (AS)-2 Valuation of Inventories. The
impact on profit for the year if any due to above deviations is not
ascertainable.
2) The Company had revalued certain fixed assets as on 15/10/1989 based
on the report of an approved valuer. The plant and machinery had been
revalued at replacement value and other assets had been revalued at
fair market value. The resultant net increase in the book value of the
said assets amounting to Rs. 6,012,488 was credited to "Revaluation
Reserve.
An amount equivalent to depreciation on the amount of net increase in
the value of fixed assets is transferred from revaluation reserve to
profit and loss account.
3) Contingent liabilities not provided for and commitments as at
year-end are as follows:
As at As at
31-03-2010 31-03-2009
Rs. Rs.
a) Claims against Company not acknowledged
as debts. 626,091 825,401
b) Guarantees given by banker to various
customers for performance and other
contingencies for which the Company has
given counter guarantee to the bank 23,715,993 21,513,063
c) Service tax liability towards export /
import of services. Nil
Amount not ascertained
Description of contingent liabilities :
Sr
No Contingent liability and Brief description
1. Claims not acknowledged as debt
Notice / legal proceedings against the Company by its suppliers for
claims which are not accepted by the Company. The management does not
expect the outcome of these to have a material adverse effect on the
Companys financial condition.
2. Guarantees given by the bank
As a part of its operation, the Company has given bank guarantee to its
customers. Guarantee generally represents irrevocable assurances that
the Company will make payment in the event the Company fails to fulfill
its performance or financial obligations.
3. Other items for which the Company is contingently liable
This includes liability in respect of service tax.
5) Quantitative Information (As certified by the Management):
1) Licenced capacity : Not applicable
2) Installed capacity : Not applicable
3) Materials and Components: Opening stock, purchases, turnover and
closing stock :
4) The Company has not received any information from its suppliers
regarding their registration under the Micro, Small and Medium
Enterprises Development Act, 2006. Hence interest if any payable as
required under the Act has not been provided and the information
required to be disclosed is not ascertainable and hence not disclosed.
5) Defined Benefit Plans - As per Actuarial Valuations as on 31 March
2010 and recognized in the financial statements in respect of Employee
Benefit Schemes:
Notes:
1) Secondary segments identified are as per the requirements of
Accounting Standard (AS)-17 Segment Reporting taking into account the
organisation structure as well as the differing risks and returns.
2) The segment revenue and assets include revenue and assets, which are
identifiable with each segment and amount allocated to the segments as
a reasonable basis.
3) Figures in brackets represent previous year amount.
The amount of minimum lease payments with respect to the above lease
recognized in the profit and loss account for the year is Rs. 152,000
(March 31, 2009 Rs. Nil).
6) There was no impairment loss on fixed assets on the basis of review
carried out by the management in accordance with Accounting Standard AS
-28 "Impairment of Assets".
7) The Company is yet to appoint a Company Secretary as required under
section 383A of the Companies Act, 1956, as such, the accounts have not
been signed by a Company Secretary.
8) The balances in account of certain debtors, creditors and loans and
advances are subject to confirmation reconciliation and consequent
adjustments.
9) Previous years figures have been rearranged or regrouped wherever
necessary, and figures in brackets indicate the corresponding figures
for previous year.