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Notes to Accounts of Vardhman Industries Ltd.

Mar 31, 2015

Note : 1 PRESENTATION OF FINANCIAL STATEMENTS

Financial Statements and other presentational requirements are drawn in accordance with the Companies Act, 2013. Previous year's figures have been recanted/regrouped/ rearranged wherever considered necessary to make them comparable with current year's figures.


Mar 31, 2014

1. SHORT TERM BORROWINGS

Working Capital borrowings from State Bank of India and IDBI Bank Limited are secured by hypothecation of entire present and future tangible current assets of the GPGC unit of the Company on pari passu basis and personally guaranteed by three of the directors. The said borrowings are also secured by way of second charge on block assets of the GPGC unit of the Company.

2. TRADE PAYABLES

Based on the information available with the company regarding the coverage of its suppliers under the Micro, Small and Medium Enterprises Development Act 2006, no amount was due to any party covered under the said Act.

3. SEGMENT REPORTING

The company operates in only one segment viz Iron and Steel.

4. CONTINGENT LIABILITIES NOT PROVIDED FOR

Capital contracts - 1,02,30,000

Letters of Credit 19,75,24,468 23,29,14,447

Corporate Guarantee 2,00,000 24,51,000 5. PRESENTATION OF FINANCIAL STATEMENTS

Financial Statements are drawn in accordance with Schedule VI and other presentational requirements of the Companies Act, 1956. Previous year''s figures have been recasted/regrouped/ rearranged wherever considered necessary to make them comparable with current year''s figures.


Mar 31, 2013

Note : 1 SEGMENT REPORTING

The company operates in only one segment viz Iron and Steel.

Note : 2 CONTINGENT LIABILITIES NOT PROVIDED FOR

Capital contracts 1,02,30,000 2,07,85,749

Letters of Credit 23,20,14,447 19,52,85,859

Bank Guarantee 24,51,000 50,000

2.1 The company has also given Corporate Guarantee to bankers for loans availed by its subsidiary company Vallabh Tinplate Private Limited.

Note : 3 PRESENTATION OF FINANCIAL STATEMENTS

Financial Statements are drawn in accordance with Schedule VI and other presentational requirements of the Companies Act, 1956. Previous year''s figures have been recasted/regrouped/ rearranged wherever considered necessary to make them comparable with current year''s figures.


Mar 31, 2012

1.1 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 Company declare and pay dividend in Indian rupees. The dividend prpoposed by the Board of Directors is subject to the approval of the shareholdres in the ensuing Annual General Meeting.

2.1 Term Loans from IDBI and SBI are secured on pari passu basis by way of equitable mortgage created by deposit of title deeds of immovable properties of GP/GC Sheet unit and by way of hypothecation of all movable properties of the said unit (save except book debts) including movable machinery, machinery spares, tools and accessories, present and future, subject to the prior charge(s) created and/or to be created by the Company in favour of SBI on stocks of Raw Materials, Semi-finished Goods, Finished Goods, Consumable Stores and such other material in the ordinary course of business. These loans have also been guaranteed by three of the directors.

2.2 Term Loan from Allahabad Bank is secured by tangible Fixed Assets of the CR unit at Rajpura and also guaranteed by three of the directors.

2.3 Vehicle loans are secured by way of hypothecation of specific vehicle and personally guaranteed by one director.

2.4 Terms of Repayment

In case of IDBI, instalments payable upto 2016-17 In case of SBI, instalments payable upto 2019-20 In case of AB, instalments payable upto 2015-16

3.1 Working Capital borrowings from State Bank of India are secured by hypothecation of entire present and future tangible current assets of the GP/GC unit of the Company and personally guaranteed by three of the directors. The said borrowings are also secured by way of second charge on block assets of the GP/GC unit of the Company.

3.2 Working Capital borrowings from Punjab National Bank are secured by hypothecation of entire present and future current assets of the Steel unit of the Company &. personally guaranteed by three of the directors. The said borrowings are also secured by way of first charge on block assets of the steel unit of the Company.

Note : 2 CONTINGENT LIABILITIES NOT PROVIDED FOR

Capital Contracts 207.86 1,250.55

Letters of Credit 1,952.86 528.00

Note : 3 PRESENTATION AND DISCLOSURE OF FINANCIAL STATEMENTS

In compliance with the Ministry of Corporate Affairs Notification No F No 2/6/2008-C L-V dated 30th March 2011, the finacncial statements of the company for the year ended 31 st March 2012 have been drawn up in accordance with the terms of the revised Schedule VI to the Companies Act. The adoption of the revised Schedule Vi does not impact the measurement and recognition principles followed for the preparation of financial statements. However, it has significant impact on the presentation of and disclosures made in the financial statements. The company has also recast the previous year's figures to meet the requirements of the revised Schedule VI.


Mar 31, 2010

1. CONTINGENT LIABILITIES NOT PROVIDED FOR :

(Rs. in Lacs)

As at 31.03.2010 As at 31.03.2009

Capital Contracts 1075.12 -

Foreign Exchange Transactions 400.00 400.00

Bank Guarantee 1.90 8.40

Letter of Credit 897.25 79.74

2. In the opinion of Board of Directors and to the best of their knowledge and belief, the value on realisation of loans, advances and current assets in the ordinary course of business will not be less than the amount at which these are stated in Balance Sheet. 3. Parties balances under Debtors, Creditors and Advances are subject to confirmation, reconcilation and adjustments, if any.

4. The Income Tax and Sales Tax assessment of the company has been completed till accounting year 2004-2005 & 2002-2003 respectively.

5. The Company has given guarantee to State Bank of India for term loan and working capital facilities of Rs.3.50 Crore given to another group company Vallabh Steels Limited.

6. Interest on working capital is net of interest received.

7. The company has entered into foreign exchange transactions through banks which are now in legal dispute. The said transactions are negative by Rs. 4.00 crore approximately and has been shown as contingent liablility.

8. The Honble Delhi High Court at New Delhi has approved the Scheme of Arrangement for hiving off the Power and SMS unit of the company and the effective date for the same is 01.03.2006. All the legal and procedural formalties related there to have been complied with.

9. Additional Information pursuant to Para 3 & 4 of Part II of Schedule VI of the Companies Act, 1956 :

a) As per Government of Indias notification No. SO 477 (E) dated 25th July, 1991, licences are not required.

10. Figures have been rounded off to the nearest Rupee and Metric Ton in case of amount and quantity respectively.

11. Previous Year figures have been regrouped/rearranged to make them comparable with those of the Current Year.

12. In response to letters from existing suppliers with whom company deals regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006, the Company has received replies from some of the suppliers. Based on these replies, there is no information that has to be disclosed under the provisions of the above referred Act.

13. The Company operates in one Segment i.e. Iron & Steel.

14. Employee Benefits :

The Disclosures in accordance with requirements of accounting standard 15 (Revised 2005) issued by the Institute of Chartered Accountants of India, employees benefits are provided below :

a) Defined Contribution Plans

The Company has recognised Rs.16,58,662/- (Previous Year Rs. 16,32,256/-) towards post employment defined contribution plans comprising of provident fund employee state insurance funds in the profit and loss account.

b) Defined Benefit Plan

In accordance with the payment of Gratuity Act, 1972, the Company is required to provide post employment benefit to its employees in form of gratuity. The Company has made a provision in the Financial Statement on the basis of actuarial valuation in accordance with the standard. The disclosure relating to the Companys gratuity plan which is certified by the actuary and relied upon by the Auditors are provided below :

15. On the basis of information available with the Company and relied upon by the Auditors, no party falls under the definition of related party as defined in AS- 18 on "- Related Party Disclosures" issued by ICAI.

16. Annexures A to S form an integral part of the Balance Sheet and Profit & Loss Account.

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