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Notes to Accounts of Tinplate Company of India Ltd.

Mar 31, 2016

1. The Company had claimed a refund amounting to Rs 823.89 lacs pertaining to sales tax on purchase of raw materials based on Bihar Industrial Policy, 1995. This claim was up-held during 2002-03 by the erstwhile Ranchi Bench of Patna High Court and was passed on to the Joint Commissioner of Commercial Taxes (JCCT) for implementation. Despite admittance of the refund claim in its entirety by JCCT, the Commissioner of Commercial Taxes (CCT) reduced the claim to Rs 519.26 lacs and refunded the same over 2002-03 and 2003-04. The Company''s Review petition before the Hon''ble High Court of Jharkhand against the order of CCT had been rejected. Later on, the Company had filed a Special Leave Petition (SLP) before Hon''ble Supreme Court. This SLP has been disposed off with the direction to file an application before the High Court and directed the High Court to decide the case on merit. The application has already been filed before High Court Ranchi. The balance claim amount outstanding at the year end isRs.304.63 lacs. (31st March, 2015: Rs. 304 .63 lacs) 7 in I arc

2. The Company has an on-going conversion arrangement with Tata Steel Limited which includes consignment agency and marketing arrangements, and the Company is responsible for collection of debts on behalf of Tata Steel Limited. Such debts (considered good) outstanding at 31.03.2016 amounts to Rs. 6,054.27 Lacs (Bills discounted of Rs. 1,494.82 lacs) [ 31.03.2015 : Rs. 7,223.57 lacs (Bills discounted of Rs. 1,386.99 lacs)], of which Rs. 62.23 lacs (31.03.2015-^13.80 lacs) are overdue for more than six months.

3. Previous year figures have been regrouped where necessary to conform with figures for the current period.


Mar 31, 2015

1. General Corporate Information

The Tinplate Company of India Ltd.(TCIL) is the largest producer of tin coated and tin free steel sheets in India. Having its headquarter in Kolkata, the company's works is located at Jamshedpur, Jharkhand. The strategic goal of the company is to create and enhance value for the stakeholders through growth and competitiveness and also to reach status of supplier of choice for tin mill products in Asia.

2 Rights, preferences and restrictions attached to shares 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,if any, 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 Preference shares

8.5% Non Cumulative Optionally Convertible Preference Shares (OCPS): The OCPS holder whose shares have been redeemed on 31.03.2015, as per the terms of the subscription agreement, is entitled to dividend @ Rs. 8.50 per OCPS.

4. Contingent Liabilities and commitments

(a) Contingent Liabilities Rs.in lacs

As at As at 31.03.2015 31.03.2014

A. Claims not acknowledged by the Company

Excise $ 338.21 341.64

Customs 265.92 265.92

Sales Tax/CST*$ 1,321.67 2,104.64

Service Tax 3,830.55 2,805.49

Income Tax 317.14 2,045.36

ESI(Labourrelated)# 8.78 8.78

Others 149.00 149.00

B. Bills Discounted 9,413.08 8,410.18

*Other than demands amounting to Rs. 9.75 Lacs (31st March 2014: Rs. 9.75 Lacs)

* Other than items remanded back for fresh assessment.

* Company has been getting exemption till 31.12.2004. Our application for exemption was pending for the period 01.01.2005 to 31.12.2010 before the ESI authorities, which was denied on alleged technical ground. Company has filed an appeal before The Hon'ble Jharkhand High Court, on which a stay has been granted. In the mean time company received recovery notice for Rs. 8.78 lakhs for the period 01.01.2005 to 31.07.2005. No other demand has been raised by The ESI Corporation in absence of which contingent liability for the period in which exemption was denied is not ascertainable.

(b) Capital Commitments

Estimated value of contracts in capital account remaining to be executed [net of advances Rs. 518.90 lacs (31.03.2014: Rs. 116.47lacs)refernoteno.13] 3,197.00 1,868.44

5. The Company had claimed a refund amounting to Rs 823.89 lacs pertaining to sales tax on purchase of raw materials based on Bihar Industrial Policy, 1995. This claim was up-held during 2002-03 by the erstwhile Ranchi Bench of Patna High Court and was passsed on to the Joint Commissioner of Commercial Taxes (JCCT) for implementation. Despite admittance of the refund claim in its entirety by JCCT, the Commissioner of Commercial Taxes (CCT) reduced the claim to Rs. 519.26 lacs and refunded the same over 2002-03 and 2003-04. The Company's Review petition before the Hon'ble High Court of Jharkhand against the order of CCT had been rejected. Later on,the Company had filed a Special Leave Petition (SLP) before Hon'ble Supreme Court. This SLP has been disposed off with the direction to file an application before the High Court and directed the High Court to decide the case on merit. The application has already been filed before High Court Ranchi. The balance claim amount outstanding at the year end is Rs. 304.63 lacs (31st March, 2014:

6. Segment Reporting

The Company's operations are predominantly manufacture of Electrolytic Tin Mill Product. The Company is managed organisationally as a unified entity and according to the management this is a single segment Company as envisaged in "Accounting Standard (AS 17)".

7. Related Party Transactions Related party relationship:

Name of the related party Nature of Relationship

Tata Steel Limited : PromoterCompany/Parent

Tayo Rolls Limited

The Tata Pigments Limited

The Indian Steel and Wire Products Limited

TKM Global Logistics Limited

Tata Steel Processing and Distribution Limited : Fellow Subsidiary

Kalimati Investment Company Limited Tata Steel UK Limited

Tata Steel International (Singapore) Pte. Limited Jamshedpur Utility and Services Company Limited Tata Sponge Iron Limited

Key Management Personnel

Mr. Tarun Kumar Daga Managing Director

Mr Chacko Joseph Chief Financial Officer

Mr Suddhabrata Kar Company Secretary

Mrs. Anita Kar Relative of Company Secretary

8. The Company has an on-going conversion arrangement with Tata Steel Limited which includes consignment agency and marketing arrangements, and the Company is responsible for collection of debts on behalf of Tata Steel Limited. Such debts (considered good) outstanding at 31.03.2015 amounts to Rs. 7,223.57 Lacs (net of bills discounted of Rs. 1,386.99 lacs) [31.03.2014: Rs. 8,265.87 lacs (net of bills discounted of Rs. 2,602.48 lacs)], of which Rs. 13.80 lacs (31.03.2014: Rs. 9.57 lacs) are overdue for more than six months.

9. Previous year's figures have been regrouped where necessary to confirm with figures for the current year.


Mar 31, 2014

1. General Corporate Information

The Tinplate Company of India Ltd. (TCIL) is the largest producer of tin coated and tin free steel sheets in India. Having its headquarter in Kolkata, the company''s works is located at Jamshedpur, Jharkhand. The strategic goal of the company is to create and enhance value for the stakeholders through growth and competitiveness and also to reach status of supplier of choice for tin mill products in Asia.

2. Share Capital

Notes :

As per the terms of the Subscription Agreement 13,10,000 8.5% Non Cumulative Optionally Convertible Preference Shares (OCPS) and 6,62,000 OCPS were partly redeemed on 1st April, 2013 and 31st March, 2014 respectively. With the said part redemptions made on 1st April, 2013 and 31st March, 2014 13,10,000 OCPS and 6,62,000 OCPS aggregating to 19,72,000 OCPS stands fully redeemed. In adherence to the Subscription Agreement the balance 92,61,000 were also partly redeemed on 31st March, 2014.

Rights, preferences and restrictions attached to shares 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, if any, 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.

Preference shares

8.5% Non Cumulative Optionally Convertible Preference Shares (OCPS) :The holder of OCPS is entitled to dividend @ Rs.8.50 per OCPS and entitled to vote on issues relating to OCPS. Based upon a legal opinion obtained by the Company, the option to convert the OCPS into Equity Shares of the Company is not available as per the existing SEBI guidelines.

Preference Shares amounting to Rs. 4,630.50 lacs are due for redemption on 31.03.2015.

Surplus in Statement of Profit and Loss

(a) Out of the outstanding 8.5% Non Cumulative Optionally Convertible Preference Shares (OCPS) of Rs. 100/- each, 13,10,000 OCPS were redeemed in two equal installments of Rs. 6,55,00,000/- each on 1st April 2012 and 1st April 2013, and 6,62,000 OCPS were partly redeemed on 1st April 2013 and 31st March 2014. In order to comply with the requirement of the Companies Act 1956, a total amount ofRs. 6,602.50 lakhs has been transferred to Capital Redemption Reserve Account up to 31 March 2014.

(b) General Reserve is a free reserve and is not meant for meeting any specific liability, contingency or commitment.

Tangible assets

Note:

(a) Site, Water and Drainage System and Building (except at Kolkata) are on leasehold land.

(b) Land includes free hold land Rs. 3.86 lacs( 31.03.2013 Rs.3.86 lacs)

(c) Plant and Machinery having a carrying value of Rs. 137.97 lacs as on 31 March 2013 has been retired from active use during the year. Consequently depreciation for the year includes the additional depreciation of Rs. 137.97 lacs provided on these assets.

(d) Company has discharged the lease liability for one of its lease hold plant & machinery consequent to that ownership has been transferred in the name of the Company.

(e) Obligations under Finance Lease:

The Company has acquired Plant and Machinery under financial lease arrangements. Minimum Lease Payments outstanding as at 31st March 2014and other particulars in respect of leased assets are as under:

The Company operates following post employment / other long term defined benefits plans:

a. Funded

i. Gratuity

b. Nonfunded

i. Post Retirement Medical Benefit (PRMB)

ii. Compensated absence

iii. Long Service Award (LSA)

iv. OtherRetirementBenefit(ORB)

* Best estimate of Contribution expected to be paid in 2014-15 Rs. 400 Lacs (2013-14 : Rs. 350 Lacs) in respect of gratuity.

* The basis used to determine overall expected rate of return on assets and the effect on major categories of plan assets is as follows:

The major portions of the assets are invested in PSU bonds and Government Securities. Based on the asset allocation and prevailing yield rates on these asset classes, the long term estimate of the expected rate of return on the fund assets have been arrived at. Assumed rate of return on assets is expected to vary from year to year reflecting the returns on matching government bonds.

3. Contingent Liabilities and commitments

Rs.in Lacs As at 31.03.2014 As at 31.03.2013

Contingent Liabilities

A. Claims not acknowledged by the Company

Excise $ 341.64 341.64 Customs 265.92 265.92 Sales Tax/CST*$ 2,104.64 2,605.05 Service Tax 2,805.49 2,799.47 Income Tax 2,045.36 310.56 ESI (Labour related) # 8.78 - Others 149.00 149.00

B. Bills Discounted 8,410.18 7,134.52

*Other than demands amounting to Rs. 9.75 Lacs (31st March 2013: Rs. 9.75 Lacs)

$ Other than items remanded back for fresh assessment.

# Company has been getting exemption till 31.12.2004. The Companies application for exemption was pending for the period 01.01.2005 to 31.12.2010 before the ESI authorities, which was denied on alleged technical ground. Company has filed an appeal before The Hon''ble Jharkhand High Court, on which a stay has been granted. In the mean time company received recovery notice for Rs. 8.78 lakhs for the period 01.01.2005 to 31.07.2005. No other demand has been raised by The ESI Corporation in absence of which contingent liability for the period in which exemption was denied is not ascertainable.

(b) Capital Commitments

Estimated value of contracts in capital account remaining to be executed

[net of advances Rs. 116.47 lacs (31.03.2013 :Rs.139.85lacs) refernoteno.13] 1,868.44 2,387.63

* The Company had claimed a refund amounting to Rs 823.89 lacs pertaining to sales tax on purchase of raw materials based on Bihar Industrial Policy, 1995. This claim was up-held during 2002-03 by the erstwhile Ranchi Bench of Patna High Court and was passed on to the Joint Commissioner of Commercial Taxes (JCCT) for implementation. Despite admittance of the refund claim in its entirety by JCCT, the Commissioner of Commercial Taxes (CCT) reduced the claim to Rs.519.26 lacs and refunded the same over 2002-03 and 2003-04. The Company''s Review petition before the Hon''ble High Court of Jharkhand against the order of CCT had been rejected. Later on, the Company had filed a Special Leav Petition (SLP) before Hon''ble Supreme Court. This SLP has been disposed off with the direction to file an application before the High Court and directed the High Court to decide the case on merit. The application has already been filed before High Court Ranchi. The balance claim amount outstanding at the year end is Rs. 304.63 lacs. (31st March, 2013:Rs. 304 .63 lacs).

Segment Reporting

The Company''s operations are predominantly manufacture of Electrolytic Tin Mill Product. The Company is managed organisationally as a unified entity and according to the management this is a single segment Company as envisaged in "Accounting Standard (AS 17) - Segment Reporting" issued pursuant to Companies (Accounting Standards) Rules 2006.

The Company has an on-going conversion arrangement with Tata Steel Limited which includes consignment agency and marketing arrangements, and the Company is responsible for collection of debts on behalf of Tata Steel Limited. Such debts (considered good) outstanding at 31.03.2014 amounts to ? 8,265.87 lacs (net of bills discounted of Rs. 2,602.48 lacs) [31.03.2013 : Rs. 11,915.96 lacs (net of bills discounted of ?2,309.09 lacs)], of which Rs. 9.57 lacs (31.03.2013- Rs. 5.22 lacs) are overdue for more than six months.

Previous year''s figures have been regrouped where necessary to confirm with figures for the current year.


Mar 31, 2013

1. General Corporate Information

The Tinplate Company of India Ltd.(TCIL) is the largest producer of tin coated and tin free steel sheets in India. Having its headquarter in Kolkata, the company''s works is located at Jamshedpur, Jharkhand. The strategic goal of the company is to create and enhance value for the stakeholders through growth and competitiveness and also to reach status of supplier of choice for tin mill products in Asia.

2.01 The Company operates following post employment / other long term defined benefits plans:

a. Funded

i. Gratuity

b. Nonfunded

i. Post Retirement Medical Benefit (PRMB)

ii. Compensatedabsence

iii. Long Service Award (LSA)

iv. Other Retirement Benefit (ORB)

2.02 Best estimate ofContribution expected to be paid in 2013-14 Rs. 350 lacs (2012-13:Rs. 395 Lacs) in respect ofgratuity.

2.03 The basis used to determine overall expected rate of return on assets and the effect on major categories of plan assets is as follows:

The major portions ofthe assets are invested in PSU bonds and Government Securities. Based on the asset allocation and prevailing yield rates on these asset classes,thelongterm estimate oftheexpected rateofreturnonthefund assets have been arrived at. Assumed rate of return on assets is expected to vary from year to year reflecting the returns on matching government bonds.

2.04 The estimate offuture salary increases take into account inflation, seniority, promotion and other relevant factors.

Rs. in Lacs As at 31.03.2013 As at 31.03.2012

3. Contingent Liabilities and commitments

(a) Contingent Liabilities

A. Guarantees to Banks on behalf of others - 469.81

B. Claims not acknowledged by the Company Excise $ 341.64 451.43

Customs 265.92 265.92

Sales Tax/CST*$ 2,605.05 2,527.28

Service Tax 2,799.47 2,215.36

Income Tax 310.56 121.69

Others 149.00 149.00

C. Bills Discounted 7,134.52 2,799.28

*Other than demands amounting to Rs. 9.75 lacs (31st March 2012 : Rs. 9.75Lacs)

$ Other than items remanded back for fresh assessment.

4 The Company had claimed a refund amounting to Rs. 823.89 lacs pertaining to sales tax on purchase of raw materials based on Bihar Industrial Policy, 1995. This claim was up-held during 2002-03 bythe erstwhile Ranchi Bench of Patna High Court and was passsed on to theJoint CommissionerofCommercial Taxes (JCCT) for implementation. Despite admittance ofthe refund claim in its entirety by JCCT, the Commissioner of Commercial Taxes (CCT) reduced the claim toRs. 519.26 lacs and refunded the same over 2002-03 and 2003-04. The Company''s Review petition before the Hon''ble High Court ofJharkhand against the order ofCCT had been rejected. Later on,the Company had filed a Special Leave Petition before Hon''ble Supreme Court for final disposal, which is pending. The balance claim amount outstanding at the yearend is Rs. 304.63 lacs. (31st March, 2012 : Rs. 304.63 Lacs).

(a) As per the legal opinion obtained by the Company, the option to convert the Optionally Convertible Preference Shares (OCPS) into Equity Shares ofthe Company is not available as perthe existing SEBI guidelines. Accordingly such shares have not been considered as potential equity shares for the purpose of computation of Diluted Earnings pershare.

5. Segment Reporting

The Company''s operations are predominantly manufacture of Electrolytic Tin Mill Product. The Company is managed organisationally as a unified entity and according to the management this is a single segment Company as envisaged inAS17 issued pursuant to Companies (Accounting Standards) Rules 2006.

6. The Company has an on-going conversion arrangement with Tata Steel Limited which includes consignment agency and marketing arrangements, and the Company is responsible for collection of debts on behalf of Tata Steel Limited. Such debts (considered good) outstanding at 31.03.2013 amounts to Rs. 11,915.96 lacs ( net of bills discounted of Rs. 2,309.09 lacs) [ 31.03.2012 : Rs. 8,688.13 lacs (net of bills discounted of Rs. 6,262.08 lacs)], of which Rs. 5.22 lacs (31.03.2012- Rs. 6.84 lacs) are overdue for more than six months.

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


Mar 31, 2012

1. CONTINGENT LIABILITIES Rs. in Lakhs

As at As at 31st March 2012 31st March 2011

A. Guarantees to Banks and Financial Institutions on behalf of others 469.81 875.34

B. Claims not acknowledged by the Company

Excise $ 451.43 308.36

Customs 265.92 265.92

Sales Tax/ GST*$ 2,527.28 2,811.26

Service Tax 2,215.36 -

IncomeTax 121.69 32.14

Others 149.00 68.00

C. Bills Discounted 2,799.28 2,592.03

* Other than demands amounting to Rs. 9.75 Lakhs (31st March 2011:Rs. 536.20 Lakhs) pertaining to issues settled in Company's favour in earlier years.

$ Other than items remanded back for fresh assessment.

2. The Company operates following post employment / other long term defined benefits plans:

a. Funded

i. Gratuity

b. Unfunded

i. Post Retirement Medical Benefit (PRMB)

ii. Leave

iii. Long Service Award (LSA)

iv. Other Retirement Benefit (ORB)

3. Best estimate of Contribution expected to be paid in 2012-2013 Rs. 395 Lakhs (2010-2011: Rs. 350 Lakhs) in respect of gratuity.

4. The basis used to determine overall expected rate of return on assets and the effect on major categories of plan assets is as follows:

The major portions of the assets are invested in PSU bonds and Government Securities. Based on the asset allocation and prevailing yield rates on these asset classes, the long term estimate of the expected rate of return on the fund assets have been arrived at. Assumed rate of return on assets is expected to vary from year to year reflecting the returns on matching government bonds.

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

6. In addition to post employment/other long term defined benefit plans as set out in Note 27.1 above, the Company also provides Provident Fund benefit to its employees through a Trust, managed by the Company in line with the Provident Fund and Miscellaneous Provisions Act, 1952. Provident Fund contributions (both employer's and employees') are made to the Trust. The Plan guarantees interest at the rate notified annually by the Provident Fund Authorities irrespective of the interest earnings of the Fund for distribution to the Provident Fund Members. Shortfall in the interest rate, if any, is required to be made good by the Company. The actuary of the Company has determined the related liability of the Company using Projected Unit Credit Method and based thereon there is no shortfall in the interest rate guarantee obligation of the Company at the year end. Further, during the year, the Company's contribution of Rs. 314.25 Lakhs (2010-11 : Rs. 277.89 Lakhs) to the Provident Fund Trust has been expensed under' Contribution to provident and other funds'. Disclosures given here under are restricted to the Information available as per the Actuary's report.

7. The Company had claimed a refund amounting to Rs. 823.89 Lakhs pertaining to sales tax on purchase of raw materials based on Bihar Industrial Policy, 1995. This claim was up-held during 2002-03 by the erstwhile Ranchi Bench of Patna High Court and was passed on to the Joint Commissioner of Commercial Taxes (JCCT) for implementation.

Despite admittance of the refund claim in its entirety by JCCT, the Commissioner of Commercial Taxes (CCT) reduced the claim to Rs. 519.26 Lakhs and refunded the same over 2002-03 and 2003-04. The Company's Review petition before the Hon'ble High Court of Jharkhand against the order of CCT had been rejected. Later on, the Company had filed a Special Leave Petition before Hon'ble Supreme Court for final disposal, which is pending. The balance claim amount outstanding at the year end is Rs. 304.63 Lakhs. (31 st March 2011 - Rs. 304.63 Lakhs).

8. SEGMENT REPORTING

The Company's operations are predominantly manufacture of Electrolytic in Mill Product. The Company is managed organizationally as a unified entity and according to the management this is a single segment Company as envisaged in AS 17 issued pursuant to Companies (Accounting Standards) Rules 2006.

Sales (gross) for the year ended 31st March 2012 of Rs. 23111.98 Lakhs (2010-2011 :Rs. 47566.09 Lakhs) includes domestic sales of Rs. 2119.27 Lakhs (2010-2011 : Rs. 18287.14 Lakhs). Details of export sales and year end debtors (being related capital employed overseas), are as follows :

9. The Company has an ongoing conversion arrangement with Tata Steel which includes consignment agency and marketing arrangements, and the Company is responsible for collection of debts on behalf of Tata Steel. Such debts (considered good) outstanding at the year-end amount to Rs. 8688.13 Lakhs (net of discounted bills ofRs. 6262.08 Lakhs) [ 31st March 2011 Rs. 1737.57 Lakhs (net of discounted bills of Rs. 3209.11 Lakhs)], of which Rs. 6.84 Lakhs [(31st March 2011 Rs. 37.61 Lakhs) are overdue for more than six months].

10. PREVIOUS YEAR FIGURES

The financial statements for the year ended 31 March 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956.Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended 31 March 2012 are prepared as per Revised Schedule VI. Accordingly, the previous year's figures have been reclassified to conform to this year's classification.


Mar 31, 2011

1. Directors' Remuneration:

(d) Directors' remuneration does not include retirement benefit of Rs. 19.98 Lakhs (2009-10 Rs. 31.65 Lakhs) paid to the former Managing Director.

2. The Company had claimed a refund amounting to Rs. 823.89 Lakhs pertaining to sales tax on purchase of raw materials based on Bihar Industrial Policy, 1995. This claim was up-held during 2002-03 by the erstwhile Ranchi Bench of Patna High Court and was passed on to the Joint Commissioner of Commercial Taxes (JCCT) for implementation.

Despite admittance of the refund claim in its entirety by JCCT, the Commissioner of Commercial Taxes (CCT) reduced the claim to Rs. 519.26 Lakhs and refunded the same over 2002-03 and 2003-04. The Company's Review petition before the Hon'ble High Court of Jharkhand against the order of CCT had been rejected. Later on, the Company had filed a Special Leave Petition before Hon'ble Supreme Court for final disposal, which is pending. The balance claim amount outstanding at the year end is Rs. 304.63 Lakhs (31st March 2010 - Rs. 304.63 Lakhs).

3. There are Contingent Liabilities in respect of:

3.1 Bank Guarantee given by the Company in connection with various matters amounting to Rs. 875.34 Lakhs (31st March 2010 : Rs. 726.03 Lakhs).

3.2 Bills discounted Rs. 2592.03 Lakhs (31st March 2010 : Rs. 7929.13 Lakhs)

3.3 Claims not acknowledged as debts by the Company : 31st March, 31st March, 2011 Rupees 2010 Rupees Lakhs Lakhs

i) Customs Duty 265.92 265.92

ii) Sales Tax (estimated by management)* $ 2811.26 2855.62

iii) Excise Duty $ 308.36 343.19

iv) Provident Fund - 19.12

v) Others 100.14 113.71

* Other than demands amounting to Rs. 536.20 Lakhs (3lst March 2010 : Rs. 536.20 Lakhs) pertaining to issues settled in Company's favour in earlier years.

$ Other than items remanded back for fresh assessment

4. Disclosure in respect of Employee Benefits in keeping with Accounting Standard 15

4.1 The Company's Provident Fund is exempted under Section 17 of Employees' Provident Fund Act, 1952. Conditions for grant of exemption stipulate that the employer shall make good deficiency, if any, in the interest rate declared by Trust over statutory limit. Having regard to the assets of the Fund and the return on the investments, the Company does not expect any deficiency in the foreseeable future.

4.2 The Company operates following post employment/other long term defined benefits :

a. Funded

i. Gratuity

b. Unfunded

i. Post Retirement Medical Benefit (PRMB)

ii. Leave

iii. Long Service Award (LSA)

iv. Other Retirement Benefits (ORB)

5.1. Actual return on Plan assests - 8.26% (2009-10 : 8.00%)

5.2. Best estimate of Contribution expected to be paid in 2011-2012 Rs. 350 Lakhs (2010-2011 : Rs. 165 Lakhs) in respect of gratuity.

5.3. The basis used to determine overall expected rate of return on assets and the effect on major categories of plan assets is as follows:

The major portions of the assets are invested in PSU bonds and Government Securities. Based on the asset allocation and prevailing yield rates on these asset classes, the long term estimate of the expected rate of return on the fund assets have been arrived at. Assumed rate of return on assets is expected to vary from year to year reflecting the returns on matching government bonds.

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

6. The Company's operations predominantly is manufacture of Electrolytic Tinplate in course of which certain intermediate product namely Full hard cold rolled coils in small quantity are also produced and marketed. The Company is managed organizationally as a unified entity and all its assets other than export debtors are located in India.

Sales (gross) for the year ended 31st March, 2011 of Rs 47753.01 Lakhs ( 2009-2010 : Rs. 42861.33 Lakhs) includes domestic sales of Rs. 18474.05 Lakhs (2009-2010 : Rs. 12414.33 Lakhs). Details of export sales and year end debtors (being related capital employed overseas), are as follows:

(iii) For fixed assets (tangibles and intangibles) additions, refer column 2 of Fixed Assets Schedule (Schedule D)

7. The Company has an ongoing conversion arrangement with Tata Steel which includes consignment agency and marketing arrangements, and the Company is responsible for collection of debts on behalf of Tata Steel. Such debts (considered good) outstanding at the year-end amount to Rs. 1737.57 Lakhs (net of discounted bills of Rs. 3209.11Lakhs) [31 st March 2010 Rs 1395.30 Lakhs (net of discounted bills of Rs. 3641.56 Lakhs)], of which Rs. 44.39 Lakhs (31st March 2010 Rs. 36.60 Lakhs) are outstanding for more than six months.

8. Related Party Disclosures in keeping with Accounting Standard 18 : a) Related Parties

Name Relationship

Tata Steel Limited (TSL) The Company is an Associate Company of Tata Steel

Mr. B.L. Raina (BLR), Managing Director (MD - up to 16.06.2009) Key Management Personnel

Mr. Tarun Kumar Daga (TKD), [Executive Director(ED) up to 16.06.2009] Key Management Personnel (MD-from 17.06.2009)

9. (a) The Company has since issued and allotted on 1st April, 2011, 32704209 Equity Shares of Rs. 10/- each at premium of Rs. 45/- per Equity Shares against conversion of 17987315 3% Fully Convertible Debentures of Rs. 100/- each outstanding at the year end. Such Equity Shares are entitled to dividend for the year in keeping with the terms of the issue and related SEBI Guidelines.

10. basic and Diluted Earnings per share :

(B) Diluted

a) Adjusted after taking into consideration fair value per share prior to Rights Issue and theoretical ex- right fair value per share.

b) Based upon a legal opinion obtained by the Company, the option to convert the Optionally Convertible Preference Shares (OCPS) into Equity Shares of the Company is not available as per the existing SEBI guidelines. Accordingly such shares have not been considered as potential equity shares for the purpose of computation of Diluted Earning per share.

11. Figures of the previous year have been rearranged and regrouped wherever necessary.


Mar 31, 2010

1. The Company had claimed a refund amounting to Rs. 823.89 Lakhs pertaining to sales tax on purchase of raw materials based on Bihar Industrial Policy, 1995. This claim was up-held during 2002-03 by the erstwhile Ranchi Bench of Patna High Court and was passed on to the Joint Commissioner of Commercial Taxes (JCCT) for implementation.

Despite admittance of the refund claim in its entirety by JCCT, the Commissioner of Commercial Taxes (CCT) reduced the claim to Rs. 519.26 Lakhs and refunded the same over 2002-03 and 2003-04. The Companys Review petition before the Honble High Court of Jharkhand against the order of CCT had been rejected. Later on, the Company had filed a Special Leave Petition before Honble Supreme Court for final disposal, which is pending. The balance claim amount outstanding at the year end is Rs. 304.63 Lakhs.

2. There are Contingent Liabilities in respect of:

2.1 Bank Guarantee given by the Company in connection with various matter amounts to Rs. 726.03 Lakhs (31st March 2009 - Rs. Nil).

2.2 Bills discounted Rs. 7929.13 Lakhs (31st March 2009: Rs. 1486.51 Lakhs)

2.3 Claims not acknowledged as debts by the Company :

31st March, 2010 31st March, 2009 Rupees Lakhs Rupees Lakhs

i) Customs Duty 265.92 265.92

ii) Sales Tax (estimated by management)* $ 2855.62 2475.85

iii) Excise Duty $ 343.19 456.39

iv) Provident Fund 19.12 19.12

v) Others 113.71 83.00



* Other than demands amounting to Rs. 536.20 Lakhs (31st March 2009 : Rs. 536.20 Lakhs)

pertaining to issues settled in Companys favour in earlier years. $ Other than items remanded back for fresh assessment.

3. Disclosure in respect of Employee Benefits in keeping with Accounting Standard 15.

3.1 The Companys Provident Fund is exempted under Sectionl 7 of Employees Provident Fund Act, 1952. Conditions for grant of exemption stipulate that the employer shall make good deficiency, if any, in the interest rate declared by Trust over statutory limit. Having regard to the assets of the Fund and the return on the investments, the Company does not expect any deficiency in the foreseeable future.

3.2 The Company operates following post employment/other long term defined benefits :

a. Funded

i. Gratuity

b. Unfunded

i. Post Retirement Medical Benefit (PRMB)

ii. Leave

iii. Long Service Award

iv. Other Retirement Benefits

3.3. Best estimate of Contribution expected to be paid in 2010-2011 Rs.165 Lakhs (2009-2010: Rs. 150 Lakhs) in respect of gratuity.

3.4. The basis used to determine overall expected rate of return on assets and the effect on major categories of plan assets is as follows:

The major portions of the assets are invested in PSU bonds and Government Securities. Based on the asset allocation and prevailing yield rates on these asset classes, the long term estimate of the expected rate of return on the fund assets have been arrived at. Assumed rate of return on assets is expected to vary from year to year reflecting the returns on matching govt, bonds.

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

4. The Company has an ongoing conversion arrangement with Tata Steel which includes consignment agency and marketing arrangements, and the Company is responsible for collection of debts on behalf of Tata Steel. Such debts (considered good) outstanding at the year-end amount to Rs. 1395.30 Lakhs (net of discounted bills of Rs 3641.56 Lakhs) [31st March 2009 Rs. 1932.30 Lakhs (net of discounted bills of Rs. 1997.13 Lakhs)], of which Rs. 36.60 Lakhs (31st March 2009 Rs. 79.10 Lakhs) are outstanding for more than six months.

5. In respect of the Companys simultaneous but unlinked Rights Issue of 4,31,90,851 Equity Shares of Rs. 10 each at a premium of Rs. 35 per share and 1,79,96,188, 3% Fully Convertible Debentures of Rs. 100 each (FCDs) which opened on 17th September, 2009 and closed on 1st October, 2009, 4,31,69,528 Equity Shares and 1,79,87,315 FCDs aggregating Rs.37,413.60 lakhs were allotted on 12th October, 2009.

6. Figures of the previous year have been rearranged and regrouped wherever necessary.

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