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Notes to Accounts of Uttam Galva Steels Ltd.

Mar 31, 2015

1 Cash Flow Statement has been prepared following the indirect method except in case of interest paid / received, dividend paid / received, purchase and sale of Investments which have been considered on the basis of actual movements of cash with necessary adjustments in the corresponding assets and liabilities.

2 Purchase of Fixed Assets includes movement of Capital Work in Progress between the begining and end of the year and net of Creditors for Capital Expenditure.

3 Cash and Cash Equivalents represent Cash& Bank balances and bank deposits only.

CORPORATE INFORMATION

The Company is promoted by Miglani Family initially in the year 1985 and ArcelorMittal has joined as Co-Promoter in the year 2009-10.

The Company is in the business of manufacturing of intermediate steel products i.e Cold Rolled Steel (CR) and Galvanised Products comprising of Galvanised Plain (GP), Galvanised Corrugated (GC) and Colour Coated Products (CCP) Coils and Sheets; situated at Khopoli, Mumbai, Western part of India. The Company is in the business of procuring Hot Rolled Steel (HR) and processing it in to CR and further in to GP and PPGI. Its current facilities are mainly in thicker and thinner guage material. The CR not used for galvanizing is converted to value added grades in Cold Rolled Closed Annealed (CRCA) coils, Cut to Length (CTL) Sheets and also sold as Full Hard CR in Domestic and Overseas market. The market segment for value added grades include Appliance, General Engineering, Automotive, Construction, Packaging, Sandwich Panels and Others. The Company has initiated the process of development of surplus land available at Pali Road Complex (PRC), Khalapur. The Registered office of the Company is situated at Uttam House, 69 P D'Mello Road, Carnac Bunder, Mumbai.

2) ECA from Nordea Bank is secured by exclusive charge on Packing machine, supplied by PESMEL, Finland.

The details of amounts outstanding to Micro, Small & Medium Enterprises based on information available with the Company is as under:

Note:

1 During the year the Company has revalued its Land at Pali Road Complex, Khalapur The addition reflects / includes Rs. 614.53 Crores towards Revaluation of Land. The difference between the Market Value (Revalued value) and the cost is credited to Revaluation Reserve.

2 i) During the year the Company has converted a part (surplus) of above Revalued Land at Pali Road Complex,

Khalapur from Fixed Asset to Stock in Trade at Market Value (Revalued value).

ii) Deduction in Gross Block of Land reflect revalued value of Land, converted into stock in trade amounting to Rs. 347.36 Crores.

3 The Company has re-worked depreciation with reference to the estimated useful lives of fixed assets prescribed under Schedule II to the Companies Act 2013 or as per technical evaluation and componentization. Accordingly, an amount of Rs. 2.74 Crore is being adjusted against the retained earnings as per transitional provision in Note 7 (b) of Schedule II .

Sales includes Rs. 742.30 Crores ( Previous Year Rs 529.92 )towards sales from trial run/stabilisation of Production, of 4 Hi Skin Pass Mill.

GP Sales includes Rs. 1,283.32 Crore (Previous Year Rs. 1,147.63 Crore) towards sales during stabilisation of Super Galvanising Line (SGL).

Manufactured Sales includes Export Sales Rs. 1,365.77 Crore ( Previous Year Rs. 1,480.84 Crore).

CRCA includes Hot Rolled Pickled and Oiled (HPRO) Arising Processing Centre (APC) & Tubes.

4. Contingent Liabilities not provided for in respect of:

RsIn Crore Sr.No. Particulars 31st March 2015 31st March 2014

(a) Letters of Credit outstanding 1,438.71 988.64

(b) Bank Guarantees 62.70 124.42

(c) Estimated amount of contracts remaining to be 61.16 83.21 executed on capital account and not provided for

(d) Disputed Statutory Liabilities 25.77 16.35

The Company had given a corporate guarantee of Rs. 87.54 Crores (Previous Year Rs. 87.54 Crores) to Commissioner of Customs against export obligation of Uttam Galva Metallics Limited.

The Company had given a corporate guarantee of Rs. 4.30 Crores (Previous Year Rs. 4.30 Crores) to Punjab National Bank Ltd, against Loan obtained by Moira Madhujore Coal Limited.

5. (a) The Income Tax Assessments are completed up to 31st March, 2012.

(b) The Sales Tax Assessments are completed up to 31st March, 2012.

(c) The Company does not expect any liability on remaining assessments / appeals.

6. Pursuant to revision of Accounting Standard 11 (AS 11), exchange fluctuation Loss of Rs. 70.03 Crore (Previous Year Rs. 76.69 Crore) on Foreign Currency Loans is adjusted against cost of fixed assets.

7. The Company's manufacturing facility situated at Donvat, Khopoli has been granted "Mega Project Status" by Government of Maharashtra and therefore is eligible for Industrial Promotion Subsidy (IPS) under Packaged scheme of incentive (PSI) 2007.

The purpose of the packaged scheme of incentive PSI 2007 is for promoting industries in the state of Maharashtra coupled with the object of generating mass employment opportunities.

Modalities of payment of IPS consist of the following:

a. Electricity duty exemption for a period of 9 years 6 months from the date of commencement of commercial production i.e. from 01.12.2014 to 31.05.2024.

b. 50% exemption from payment of stamp duty.

c. VAT & CST payable to state government on sales made from Donvat Plant within a period of 19 years 6 months starting from 01.12.2014.

In terms of Accounting Standard (AS 12) "Accounting for Government Grants" incentive/subsidy receivable to the tune of Rs. 24.44 crores is considered to be in nature of Promoters Contribution and has been credited to "Capital Reserve Account".

8. Taxation.

(a) The Company does not have any taxable income as per the provisions of the Income Tax Act, 1961. However, it is liable to MAT (Minimum Alternate Tax)

(b) During the year, the Company decided to prepay Value Added Tax (VAT) payable under Deferral Sales Tax scheme, Against the Deferral Sales Tax liability of Rs. 139.71 Crores (Previous year Rs. 122.97 Crores) for period up to March, 2015. The Company has prepaid Rs. 39.13 Crores (Previous year Rs. 34.44 Crores) at net present value as prescribed, and consequential balance of Rs. 100.59 Crores (Previous year Rs. 88.54 Crores) is treated as sales. This credit has accrued and arisen during the Financial year 2014-15.

9. During the year under review, the Company carried out modification / revamping of Super Galvanizing Line (SGL). Total expenditure includes cost of sales, Rs. 1431.48 Crores (Previous Year Rs. 1419.44 Crores) related to goods produced during trial run. Excess of expenditure over Sales realization is capitalized.

10. During the year under review, the Company carried out modification / revamping of 4HI WW Skin Pass Mill. Total expenditure includes cost of sales, Rs. 874.37 Crores (Previous Year) Rs. 630.76 Crores) related to goods produced during trial run. Excess of expenditure over Sales realization is capitalize.

11. Capital Work-in-progress:

Expenses incurred towards On-going Projects under various heads of capital assets including advances paid to suppliers are as under:

Atlantis International Service Company Limited Uttam Galva North America, INC Uttam Galva Steels , Netherland BV Uttam Export BVI

Neelraj International Trade Limited Uttam Galva International FZE ( Step Down Subsidiary)

Co-Promoter:

ArcelorMittal Netherland, B.V.

Ability to Control/Exercise Signifcant Influnence:

ArcelorMittal Finanzaria, SRL ArcelorMittal International Luxembourg

ArcelorMittal Cons Reunion ArcelorMittal Distribution Solution

ArcelorMittal SSC,Italia ArcelorMittal Singapore Pvt Limited

ArcelorMittal International FZE

Associates / Joint Ventures :

Grow Well Mercantile Private Limited Moira Madhujore Coal Limited

Evergreen Tradeplace Private Limited Uttam Value Steels Limited

Shree Uttam Steel and Power Limited Kredence Multi Trading Limited

Uttam Galva Metallics Limited Archisha Steels Private Limited

Uttam Utkal Steels Limited Uttam Galva International PTE Limited

Sainath Trading Company Private Limited Uttam Exports Private Limited

Texturing Technology Private Limited

The Company has entered into transactions of fund transfers during the course of business on temporary/ current account transaction basis. Such transactions do not form part of loans.

During the year Company has shut down its subsidiary namely Uttam Galva Steels FZE at cost.

12. Derivative Contracts entered into by the Company and outstanding as on 31st March 2015.

For Hedging Currency and Interest Rate Related Risks:

The Company uses forward exchange contracts to hedge its exposure in foreign currency related to firm commitments and highly probable forecasted transactions. The nominal amount of derivative contract entered into by the Company and outstanding as on 31st March, 2015 is as follows:

13. Previous Year's figures are regrouped and rearranged wherever necessary.


Mar 31, 2014

1. (a) The Company is being re-assessed, u/s 153A r/w section 132 of the Income Tax Act, 1961, for Assessment Years 2006-2007 to 2012-2013 relevant to Financial Years 2005-2006 to 2011-2012.

(b) The Sales Tax Assessments are completed up to 31st March, 2012.

(c) The Company does not expect any liability on remaining assessments / appeals.

2. Pursuant to revision of Accounting Standard 11 (AS 11), exchange fluctuation Loss ofRs. 76.69 Crore (Previous Year Rs. 8.82 Crore) on Foreign Currency Loans is adjusted against cost of fixed assets.

3. Taxation.

(a) The Company does not have any taxable income as per the provisions of the Income Tax Act, 1961. However, it is liable to MAT (Minimum Alternate Tax).

(b) During the year, the Company decided to prepay Value Added Tax (VAT) payable under Deferral Sales Tax scheme, against the Deferral Sales Tax liability ofRs. 122.97 Crore (Previous year Rs. 132.23 Crore) for period upto 31st March, 2014. The Company has prepaid Rs. 34.44 Crore (Previous year Rs. 37.03 Crore) at net present value as prescribed, and consequential balance of Rs. 88.54 Crore (Previous year Rs. 93.83 Crore) is treated as sales and Rs. Nil (Previous Year Rs. 1.37 Crore) is credited to Fuel Account. This credit has accrued and arisen during the financial year 2013-2014.

4. During the year under review, the Company carried out modification / revamping of Super Galvanizing Line (SGL). Total expenditure includes Cost of Sales of Rs. 1419.44 Crore (Previous Year Rs. 1162.10 Crore) related to goods produced during trial run. Excess of expenditure over Sales realization is capitalized.

5. During the year under review, the Company carried out modification / revamping of 4HI WW Skin Pass Mill. Total expenditure includes cost of sales of Rs. 630.76 Crore (Previous Year Rs. 952.42 Crore) related to goods produced during trial run. Excess of expenditure over sales realization is capitalized.

6. Segment Reporting

The Company is manufacturing Steel Products and also has a Captive Power Plant, hence it is reporting its results in single segment as required by AS-17.

7. Ferro Zinc International (FZE) has ceased to be a step-down Subsidiary of the Company during the year ended 31st March, 2014. Therefore the financial statement of Ferro Zinc International (FZE) will not form part of consolidated financial statements of the Company with effect from 1st April, 2013.

8. Previous Year''s figures are regrouped and rearranged wherever necessary.


Mar 31, 2013

CORPORATE INFORMATION

The Company is promoted by Miglani family initially in the year 1985 and ArcelorMittal has joined as Co-Promoter in the year 2009-10.

The Company is in the business of manufacturing of intermediate steel products i.e Cold Rolled Steel (CR) and Galvanised Products comprising of Galvanised Plain (GP), Galvanised Corrugated (GC) and Colour Coated Products (CCP) Coils and Sheets situated at Khopoli, Mumbai Western part of India. The Company is in the business of procuring Hot Rolled Steel (HR) and processing it in to CR and further in to GP and PPGI. Its current facilities are mainly in thicker and thinner guage material. The CR not used for galvanizing is converted to value added grades in Cold Rolled Closed Annealed (CRCA) coils, Cut to Length (CTL) Sheets and also sold as Full Hard CR in Domestic and Overseas market. The market segment for value added grades include Appliance, General Engineering, Automative, Construction, Packaging, Sandwich Panels and Others.

The registered office of the Company is situated at Uttam House, 69 P D''Mello Road, Carnac Bunder, Mumbai.

1.0 Previous Year''s figures are regrouped and rearranged wherever necessary.

2.1 Contingent Liabilities not provided for in respect of:

Sr. Particulars As at As at No 31st March, 2013 31st March, 2012

(a) Letters of Credit outstanding 754.88 698.58

(b) Bank Guarantees 129.12 130.25

(c) Estimated amount of contracts remaining to be executed on 86.31 126.02 capital account and not provided for

(d) Bills Discounted NIL NIL

2.2 The Company had given a corporate guarantee of Rs.87.54 Crores (Previous Year Rs. 87.54 Crores) to Commissioner of Customs against export obligation of Uttam Galva Metallics Limited.

2.3 The Company had given a corporate guarantee of Rs.4.30 Crores (Previous Year Rs. 4.30 Crores) to Punjab National Bank Limited on behalf of Joint Venture Company.

2.4 The Company has given a corporate guarantee of USD 40 million (Previous Year USD 40 Million) to Standard Chartered Bank against credit facility availed by Atlantis International Service Company Limited, Sundry Creditors under the head current liability includes Rs. Nil Crores (Previous Year Rs 96.66 Crores) towards the liability payable to subsidiary company.

2.5 The company has given a corporate guarantee of USD 30 million ( Previous Year USD 30 million) to ICICI Bank against credit facility availed by Ferro Zinc International FZE, Sundry Creditors under the head current liability includes Rs. 59.79 (Previous Year Rs.153.99 Cores ) towards the liability payable to subsidiary company.

3.0 During the Financial Year, the Company has shifted its ERP System from MFG-PRO to SAP w.e.f 1st January 2013. Prima Facie, the new system is implemented satisfactorily with reference to material movements (MM Module) and financial transactions (SD and FI Modules). Errors/Omissions / Slippages of insignificant nature noticed during implementation have been corrected appropriately.

4.0 (a) The Company is being re-assessed, under Section I53A r/w Section 132 of the Act for Assessments Year 2006-07 to 2011-12 i.e Financial Year 2005-06 to 2010-11.

(b) The Sales Tax Assessments are completed up to 31st March, 2011.

(c) The Company does not expect any liability on remaining assessments / appeals.

5.0 Pursuant to revision of Accounting Standard II (AS II), exchange fluctuation Loss of Rs.8.82 Crores (Previous Year Rs. I8.33 Crores) on Foreign Currency Loans is adjusted against cost of relevant fixed assets.

6.0 Taxation.

6.1 The Company does not have any taxable income as per the provisions of the Income Tax Act, I96I. However, it is liable to MAT (Minimum Alternate Tax).

6.2 During the year, the Company decided to prepay Value Added Tax (VAT) payable under Deferral Sales Tax scheme, Against the Deferral Sales Tax liability of Rs.I32.23 Crores (Previous year Rs. I35.03 Crores) for period April 20I2 to March 20I3. The Company has prepaid Rs. 37.03 Crores (Previous year Rs.37.8I Crores) at net present value as prescribed, and consequential balance of Rs. 93.83 Crores (Previous year Rs. 97.2I Crores) is treated as sales and Rs. I.37 crores (Previous Year Rs. I.0I crores) is credited to Fuel Account. This credit has accrued and arisen during the financial year 20I2-I3.

7.0 During the current year under review the company carried out modification / revamping of Super Galvanizing Line (SGL). Total expenditure includes cost of sales, Rs. II62.I0 Crores (Previous year Rs. 86I.2I Crores) related to goods produced during trial run. Excess of expenditure over Sales realization is capitalized.

8.0 During the current year under review the Company carried out modification / revamping of 4HI WW Skin Pass Mill. Total expenditure includes cost of sales, Rs. 952.42 Crores (Previous year Rs. 913.87 Crores) related to goods produced during trial run. Excess of expenditure over Sales realization is capitalized

9.0 (a) During the year, Uttam Galva Steels (BVI) Limited, a wholly owned Subsidiary has been incorporated on 26th day of November, 2012 at British Virgin Islands and Uttam Galva Steels FZE, a wholly owned Subsidiary has also been incorporated on 21st day of November, 2012 at United Arab Emirates.

10.0 (a) List of Related Parties As per Accounting Standard I8 (AS.I8) with whom the Company have entered into transactions during the year in the ordinary course of business:

(i) Key Managerial Personnel:

Shri Rajinder Miglani

Shri Anuj R Miglani

Shri Ankit Miglani

Shri Gursharan Singh Sawhney

Shri Sunil Prakash

(ii) Other Related Parties

(Associates of the Company / Enterprises over which key management personnel and/or their relatives exercise significant influence)

Wholly Owned Subsidiary / Step down Subsidiary:

Uttam Galva Holdings Limited

Atlantis International Services Company Limited

Ferro Zinc International FZE

Uttam Galva Steels , Netherlands BV

Neelraj International Trade Limited, BV

Uttam Galva Steels ( BVI) Limited

Uttam Galva Steels FZE

Associates / Joint Ventures :

Grow Well Mercantile Limited

Shree Uttam Steel and Power Limited

Uttam Galva Metallics Limited

Uttam Distribution Network Limited

Uttam Utkal Steels Limited

Sainath Trading Company Private Limited

Texturing Technology Private Limited

Moira Madhujore Coal Limited

Uttam Value Steels Limited (Formerly known as Llyods Steel Industries Limited)

Kredence Multi Trading Limited Archisha Investment Pvt Limited

Uttam Galva Ferous Limited

Ability to Control / Exercise Significant Influence

ArcelorMittal Finanzaria, SRL

ArcelorMittal Cons Reunion

ArcelorMittal SSC, Italia

ArcelorMittal International FZE

ArcelorMittal International Luxembourg

ArcelorMittal Distribution Solution

ArcelorMittal Singapore Pvt Limited

11.0 Segment Reporting The Company is Manufacturing of Steel Products and also has a Captive Power Plant, hence it is reporting its results in single segment as required by AS - 17.

12.0 Sundry Debit Balances and Credit balances are subject to confirmations.


Mar 31, 2012

1. Previous Year's figures are regrouped and rearranged wherever necessary.

2.1 Contingent Liabilities not provided for in respect of:

(Rs in Crores)

Sr. As at As at No. Particulars 31st March, 2012 31st March, 2011

(a) Letters of Credit outstanding 698.58 591.93

(b) Bank Guarantees 130.25 92.54

(c) Estimated amount of contracts remaining to be executed on capital 126.02 60.04 account and not provided for

2.2 The Company had given a corporate guarantee of Rs 84.54 Crores (Previous Year Rs 87.54 Crores) to Commissioner of Customs against export obligation of Uttam Galva Metallics Limited.

2.3 The Company has given a corporate guarantee of USD 40 million (Previous Year USD 40 Million) to Standard Chartered Bank against credit facility availed by Atlantis International Service Company Limited Trade Payable to Subsidiary Companies includes Rs 99.66 Crores (Previous Year NIL) towards the liability payable to subsidiary company.

2.4 The company has given a corporate guarantee of USD 30 million ( Previous Year USD 30 million ) to ICICI Bank against credit facility availed by Ferro Zinc International FZC, Trade Payable to Subsidiary Companies includes Rs 153.99 ( Previous Year Rs 142.78 Cores ) towards the liability payable to Subsidiary Company.

3.0 (a) The Income Tax Assessment is completed up to 31st March, 2009 i.e. Assessment Year 2009-10.

(b) The Sales Tax Assessments are completed up to 31st March, 2011.

(c) The Company does not expect any liability on remaining assessments / appeals.

4.0 Pursuant to revision of Accounting Standard 11 ( AS 11), exchange fluctuation Loss of Rs 18.33 Crores ( Previous Year Rs 31.88 Crores ) on Foreign Currency Term Loans ( FCTL ) is adjusted against cost of relevant fixed assets.

5.0 Taxation.

6.1 The Company does not have any taxable income as per the provisions of the Income Tax Act, 1961. However, it is liable to Mat (Minimum Alternate Tax)

6.2 During the year, the Company decided to prepay Value Added Tax (VAT) payable under Deferral Sales Tax scheme, Against the Deferral Sales Tax liability of Rs 135.03 Crores ( Previous Year Rs 100.52 Crores ) for period up to March '12. the Company has prepaid Rs 37.81 Crores ( Previous Year Rs 28.15 Crores ) at Net Present Value ( NPV ) as prescribed, and consequential balance of Rs 97.21 Crores ( Previous Year Rs 72.37 Crores ) is treated as sales. This credit has accrued and arisen during the financial year 2011-12.

7.0 During the year Company Commenced trial runs of Captive Power Plant ( CPP ). Power Generated 340977 MWH ( 42345 MWH Auxiliary Consumption ) out of this 147399 MWH has been consumed captively & balance sold to outside parties.

8.0 During the current year under review the Company carried out modification / revamping of Super Galvanizing Line ( SGL ) since July 2011. Total expenditure includes cost of sales, Rs 861.21 Crores ( Previous Year Nil ) related to goods produced during trial run. Excess of expenditure over Sales realization is capitalized.

9.0 During the current year under review the Company carried out the Test Runs / Stabilization 4HI WW Skin Pass Mill during 2011-12. Total expenditure includes cost of sales, Rs 913.87 Crores ( Previous Year Nil ) related to goods produced during trial run. Excess of expenditure over Sales realization is capitalized

10.0 (a) During the year, Neelraj International Trade Limited, a wholly owned Subsidiary has been incorporated on 9th day of January, 2012 at British Virgin Islands.

11.0 (a) List of Related Parties as per Accounting Standard 18 (AS.18) with whom the Company have entered into transactions during the year in the ordinary course of business:

(i) Key Managerial Personnel:

Mr. Rajinder Miglani Mr. Anuj R Miglani Mr. Ankit Miglani

(ii) Other Related Parties

(Associates of the Company / Enterprises over which key management personnel and / or their relatives exercise significant influence)

Wholly Owned Subsidiary / Step down Subsidiary:

Uttam Galva Holdings Limited

Atlantis International Services Company Limited

Ferro Zinc International FZE

Uttam Galva Steels, Netherlands BV

Neelraj International Trade Limited

Associates / Joint Ventures :

Grow Well Mercantile Limited

Shree Uttam Steel and Power Limited

Uttam Galva Metallics Limited

Uttam Distribution Network Limited

Uttam Utkal Steels Limited

Sainath Trading Company Private Limited

Texturing Technology Private Limited

Moira Madhujore Coal Limited

Ability to Control / Exercise Significant Influence

ArcelorMittal Finanzaria, SRL

ArcelorMittal Cons Reunion

ArcelorMittal SSC, Italia

ArcelorMittal International FZE

ArcelorMittal Internation Luxembourg

ArcelorMittal Distribution Solution

12.0 Segment Reporting

The Company is Manufacturer of Steel Products and also has a Captive Power Plant (CPP), hence it is reporting its results in single segment as required by AS - 17

13.0 Sundry Debit Balances and Credit Balances are subject to confirmations.


Mar 31, 2010

1.0 Previous Years figures are regrouped and rearranged wherever necessary.

2.1 Contingent Liabilities not provided for in respect of:

(Rs. in Crores) 31st March, 31st March, 2010 2009 (a) Letters of Credit outstanding 1346.31 600.56

(b) Bank Guarantees 19.17 47.25

(c) Estimated amount of contracts remaining to be executed on capital account and not provided for 54.00 115.00

2.2 The Company had given a corporate guarantee of Rs.91.94 Crores to Commissioner of Customs against export obligation of Uttam Galva Metallics Limited.

2.3 The company has given a corporate guarantee of USD 40 million to Standard Chartered Bank against credit facility availed by Atlantis International Service Company Ltd., Sundry Creditors under the head current liability includes Rs.166.93 Crores towards the liability payable to subsidiary company.

3.0 (a) The Income Tax Assessment is completed up to 31st March, 2006. ie. Assessment Year 2006-07.

(b) The Sales Tax Assessments are completed up to 31st March, 2009.

(c) The Company does not expect any liability on remaining assessments / appeals.

4.0 Pursuant to revision of Accounting Standard 11 (AS 11), exchange fluctuation Gain of Rs. 31.29 Crores on Foreign Currency Loans is adjusted against cost of relevant fixed assets.

5.0 Taxation.

5.1 The Company has taxable income as per the provisions of the Income Tax Act, 1961.

5.2 The company has provided for deferred tax liability to the tune of Rs. 32.02 Crores (Previous Year Rs. 39.73 Crores) arising on account of timing difference between the book and tax profit of the period. The same is net of tax incentive available at a future date and deferred tax payable at future date.

5.3 During the year the Company has recognised MAT Credit Entitlement to the sum of Rs.7.98 Crores (Previous Year Rs.10.85 Crores) pertaining to MAT payment for the current year.

6.0 During the year, the Company decided to prepay Value added tax (VAT) payable under Deferral Sales Tax scheme, against the Deferral Sales Tax liability of Rs.79.31 Crores (Previous Year Rs. 61.24 Crores) for period upto March 10. The Company has prepaid Rs. 22.21 Crores (Previous Year Rs.19.72 Crores) at net present value as prescribed, and consequential balance of Rs. 57.10 Crores (Previous Year Rs.41.52 Crores) is treated as sales. This credit has accrued and arisen during the Financial Year 2009-10.

7.0 Total expenditure includes cost of sales, Rs.-NIL, (Previous Year 957.48 Crores) related to goods produced during trial run. Excess of expenditure over sale realisation is capitalised.

8.0 The Company has provided for Unclaimed Leave Encashment Benefits as at 31st March, 2010 to the tune of Rs. 4.66 Crores.

9.0 During the year, Atlantis International Service Company Limited a wholly owned subsidiary has been incorporated on 8th Day of June 2009 in British Virgin Island (BVI).

10.0 (a) List of Related Parties As per Accounting Standard 18 (AS.18) with whom the Company have entered into transactions during the year in the ordinary course of business:

(i) Key Managerial Personnel:

Rajinder Miglani

Praveen Miglani

Anuj Miglani

Ankit Miglani

Note: Details relating to remuneration to the above key management personnel have been disclosed in Note No. 16 (a).

(ii) Other Related Parties

(Associates of the Company/Enterprises over which key management personnel and/or their relatives exercise significant influence)

1) Wholly Owned Subsidiary / Step down Subsidiary:

Uttam Galva Holding Limited

Atlantis International Service Company Limited

Ferro Zinc International FZE

2) Associates / Joint Ventures

Growell Mercantile Private Limited Shree Uttam Steel and Power Limited Uttam Galva Metallics Limited Uttam Distribution Network Limited Uttam Utkal Steels Limited. Texturing Technology Private Limited

3) Ability to control / exercise significant influence:

ArcelorMittal Netherlands B.V. ArcelorMittal International, Brazil ArcelorMittal International, Romania ArcelorMittal Cons Reunion ArcelorMittal SSC Italia ArcelorMittal South Africa

Note : ArcelorMittal Netherlands became shareholder w.e.f. 19.01.2010. However, related party transactions for the earlier period have been disclosed, as required by Accounting Standard 18 issued by ICAI.

11.0 The Company has sent memorandum (as required to be filled by the suppliers with the notified authority under the Micro, Small and Medium Enterprises Development Act, 2006) Claiming their status as on 31st March, 2010 as micro, small or medium enterprises.

The Company is of the view that such parties are restricted to Job workers and Stores / Consumable material suppliers. Hence, such instances and respective outstanding may be insignificant.

Notes: (1) Galvanised Production does not include Nil GP Coils purchased, processed to GC and sold. (Previous Year 465 MT)

(2) Colour Coating Line production includes 507 MT CC Sheets consumed for Capital Projects. (Previous Year 253 MT)

(3) Production of 4297 MT CR Baby coil is not included in the aforesaid production. (Previous Year 10251 MT)

(4) Previous Year figures have been regrouped and reclassified to make them comparable with figures of Current Year.

 
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