Mar 31, 2013
1 Contingent Liabilities
i) Bank Guarantee amounts to Rs. 214.15 lakhs (Previous year- Rs.214.15
lakhs), [FDR for Rs. 23.98 lakhs (Previous Year- 23.98 lakhs) pledged
with the bank as margin].
ii) Demand for West Bengal VAT of Rs. 1,93,65,628 and for Central Sales
Tax of Rs. 14,32,166 for the year 2005- 2006 disputed in Appeal with
Senior Joint Commissioner Sales Tax and advance of Rs. 20 lakhs paid
under protest.
iii) Demand for West Bengal VAT of Rs. 4,85,58,046 and for Central
Sales Tax of Rs.13,99,114 for the year 2006-2007 disputed in appeal
with West Bengal Commercial Taxes Appellate and Provisional Board
Kolkata and advance of Rs. 30 Lakhs paid under protest.
iv) The Interest & Penalty on Statutory Dues is not accounted by the
company and booked in the financial statements on the grounds that the
company has referred the company in BIFR and they will ask concession
and relief for the waiver of interest and penalty from the statutory
departments and hence not booked in the financial statement and thus
Interest and penalty on Statutory Dues can be created at
Unascertainable Contingent Liabilities of the company.
2. In the opinion of the management, Current Assets, Loans & Advances
have a value on realisation at least equal to the amount at which they
are stated in the Balance Sheet. Adequate provisions have been made for
all known losses and undisputed liabilities.
3. Certain balances of Advances, Sundry debtors & Sundry creditors are
subject to confirmation.
4. There are no Micro, Small and Medium Enterprises to whom the
Company owes dues, which are outstanding for more than 45 days as at
31st March, 2013. This information as required to be disclosed under
the Micro, Small and Medium Enterprises Development Act, 2006 has been
determined to the extent such parties have been identified on the basis
of information available with the Company and relied upon by the
auditors.
5. Managerial Remuneration:- a) Detail of payments and provisions on
account of remuneration to managerial personnel is as under:
b) The computation of net profit for the purpose of director''s
remuneration under Section 349 of the Companies Act, 1956 has not been
enumerated since no commission has been paid to any director. Fixed
Managerial remuneration has been paid to the Managing Director within
the limit specified in Schedule XIII of the Companies Act, 1956.
6. There are no transactions which are required to be disclosed under
Clause 32 of the Listing Agreement.
7. No forward contracts / hedging instruments are outstanding at the
Balance Sheet date. Unhedged foreign currency exposure as at 31.03.2013
is Nil.
8. Based on the synergies, risks and returns associated with business
operations and in terms of Accounting Standard-17, the Company is
predominantly engaged in a single reportable segment of Iron and Steel
during the year. The risks and returns of existing captive power plant
are directly associated with the manufacturing operations of Iron &
Steel and hence treated as a single reportable segment as per
Accounting Standard-17. There is no separate geographical segment.
9. Related party disclosures
i. Name of the related parties where control exists irrespective of
whether transactions have occurred or not
a) Enterprise on which the Company has control  None
b) Entities / Individuals owning directly or indirectly an interest in
the voting power that gives them control  None
ii. Names of the other related parties with whom transactions have
taken place during the year
a) Joint Venture Moira Mahujore Coal Ltd
b) Key Managerial Personnel (KMP) & Relatives Mr.Vikash Patni, Managing
Director of KMP Mr.Vimal Kumar Patni, Director
Mr. Akash Patni, Director
Mrs. Premlata Patni, Mother of MD
Mrs. Sunita Patni, Wife of MD
c) Enterprises owned or significantly influenced by Impex Infotech Ltd.
(b) above Brahmand Udyog Ltd.
Swami Vinimay Ltd. Unilever Enterprises Ltd. Sahyogi Distributors
Ltd. Vikash Ores Ltd. Lucky Prime Dealers Pvt. Ltd.
Mar 31, 2011
1. Contingent liabilities not provided for in respect of-
a) Bank Guarantees amounting to Rs. 214.15 Lacs (Previous year - Rs.
284.35 Lacs) [FDR for Rs. 23.98 Lacs (Previous year-Rs. 31.46 Lacs)
pledged with the banks as margin.]
b) Demand for West Bengal VAT of? 19,365,628 (Previous year Nil) and
for Central Sales Tax of Rs. 14,32,166 (Previous year Nil) for the year
2005-06 disputed in appeal with Senior Joint Commissioner Sales Tax. An
Advance of? 20 Lacs paid under protest.
c) Demand for West Bengal VAT of Rs. 48,558,046 (Previous year - Rs.
67,186,278) and for Central Sales Tax of Rs. 1,399,114 (Previous year
- Rs. 1,399,114) for the year 2006-07 disputed in appeal with West
Bengal Commercial Taxes Appellete and Revisional Board, Kolkata. An
Advance of Rs. 30 Lacs paid under protest.
2. Estimated amount of commitments on Capital Account (Net of
Advances) - NIL (Previous year - Rs. 27.36 Lacs).
3. In the opinion of the management, Current Assets, Loans & Advances
have a value on realisation at least equal to the amount at which they
are stated in the Balance Sheet. Adequate provisions have been made for
all known losses and liabilities.
4. Certain balances of Advances, Sundry debtors & Sundry creditors are
subject to confirmation.
5. There are no Micro, Small and Medium Enterprises to whom the
Company owes dues, which are outstanding for more than 45 days as at
31st March, 2011. This information as required to be disclosed under
the Micro, Small and Medium Enterprises Development Act, 2006 has been
determined to the extent such parties have been identified on the basis
of information available with the Company and relied upon by the
auditors.
6. Managerial Remuneration:
b) Liability for gratuity and leave encashment is provided on actuarial
basis for the Company as a whole. The amount pertaining to directors is
not ascertainable and, therefore, not included above.
c) The computation of net profit for the purpose of directors'
remuneration under Section 349 of the Companies Act, 1956 has not been
enumerated since no commission has been paid to any director. Fixed
managerial remuneration has been paid to the Managing Director within
the limit specified in Schedule XIII of the Companies Act, 1956.
7. Research and Development is assimilated to the production process
of the Company and hence cannot be segregated. No specific expenditure
was incurred under this head.
8. Amount of excise duty on variation in stocks shown in Schedule -16
represents differential excise duty on opening and closing stock of
finished goods.
9. There are no transactions which are required to be disclosed under
Clause 32 of the Listing Agreement.
10. No forward contracts/hedging instruments are outstanding at the
Balance Sheet date. Unhedged foreign currency exposure as at 31.03.11
is Nil.
11. During the year, the Company has changed its accounting policy
relating to write off of share issue expenses from amortising 1/5th of
the expenditure every year to adjusting the same against the balance
available in Securities Premium Account as permitted in Section 78 of
the Companies Act, 1956. The change in accounting policy does not have
any impact on the profit for the year
12. Several Parties including the Company have disputed the basis of
levy of fuel surcharge in electricity bills of Damodar Valley
Corporation (DVC). Based on the order of Appellate Tribunal of
Electricity dated 10/05/2010, the provisional bills are issued by DVC
and provided for in the accounts of the Company.
The Company has also during the year provided for disputed Electricity
dues of DVC for Rs. 24,514,255/- in respect of earlier years as per the
basis indicated in the said Order. However, the appeal filed by DVC in
the matter is pending before the Hon'ble Supreme Court of India.
13. The Company is in the process of issuing Global Depository
Receipts (GDR's) amounting to USD 12 million. Expenses incurred during
the year in relation thereto have been shown under the head "Loans &
Advances" to be adjusted in the year of issue with balance available in
the Securities Premium inline with the provisions of Section 78 of the
Companies Act, 1956.
14. The Company has made current tax provision for Minimum Alternate
Tax (MAT) u/s 115JB of the Income Tax Act, 1961. As per the provisions
of Section 115JAA, MAT Credit receivable has been recognized as an
asset in accordance with the recommendations contained in Guidance Note
issued by the Institute of Chartered Accountants of India. The said
asset is created by way of a credit to the profit & loss account and
shown as MAT Credit Entitlement. The Company will review the same at
each balance sheet date and write down the carrying amount of MAT
Credit Entitlement to the extent there is no longer convincing evidence
to the effect that Company will pay normal Income Tax during the
specified period.
15. Disclosure pursuant to accounting Standard-15 (Revised)-"Employee
Benefits-
Defined Benefit Plan:
The employee gratuity fund scheme managed by SBI Life Insurance Company
Ltd (insurer) is a defined benefit plan. The present value of
obligation is determined based on the actuarial valuation using the
Projected Unit Credit Method as on 31 st March 2011, which recognizes
each period of service as giving rise to additional unit of employee
benefit entitlement and measures each unit separately to build ud the
final obliaation.
The estimates of rate of escalation in salary considered in actuarial
valuation, take into account inflation, seniority, promotion and other
relevant factors including supply and demand in the employment market.
The expected rate of return on plan assets is determined considering
several applicable factors, mainly the composition of plan asset held,
assessed risks, historical results of return on plan asset and the
Company's policy for plan assets management.
The above information is certified by the actuary.
The Company expects to contribute Rs. 2.51 Lacs to the Gratuity Fund
managed by the SBI Life Insurance Company Ltd during the Financial Year
2011-12.
16. Based on the synergies, risks and returns associated with business
operations and in terms of Accounting Standard -17, the Company is
predominantly engaged in a single reportable segment of Iron and Steel
during the year. The risks and returns of existing captive power plant
are directly associated with the manufacturing operations of Iron &
Steel and hence treated as a single reportable segment as per
Accounting Standard-17. There is no separate geographical segment.
17. Related party disclosures
i. Name of the related parties where control exists irrespective of
whether transactions have occurred or not a) Enterprise on which the
Company has control None
b) Entities/Individuals owning directly or indirectly - None
an interest - in the voting power that gives them
control
ii. Names of the other related parties with whom transactions have
taken place during the year
a) Joint Venture Moira Mahujore Coal Ltd
b) Key Managerial Personnel
(KMP) & Relatives of KMP Mr.Vikash Patni, Managing Director
Mr.Vimal Kumar Patni, Director
Mr. Akkash Patni, Director
Mrs. Premlata Patni, Mother of MD
Mrs. Sunita Patni, Wife of MD
c) Enterprises owned or
significantly Influenced by
(b) above Impex Infotech Ltd
Brahmand Udyog Ltd.
Swami Vinimay Ltd.
Impex Ferro Tech Ltd.
Vikash Smelters & Alloys Ltd.
Unilever Enterprises Ltd.
Sahyogi Distributors Ltd.
Vikash Ores Ltd.
Lucky Prime Dealers Pvt Ltd
18. Components of Deferred tax liability as on 31st March, 2011 are as
follows:
Deferred tax asset on account of unabsorbed depreciation has been
recognised as there exists virtual certainty of realisation on reversal
of deferred tax liability in future years on account of depreciation.
19. In compliance with Accounting Standard - 27 on "Financial Reporting
for Interests in Joint Venture" as notified under Companies (Accounting
Standards) Rules, 2006, brief description of Joint Venture of the
Company are:
Moira Madhujore Coal Ltd - A Joint Venture with five other Companies
for the purpose of development of Coal Block. The Company's share in
the said Venture is 23.32%.
20. Previous year's figures have been reworked, re-grouped, re-arranged
and reclassified, wherever considered necessary. Accordingly amounts
and other disclosures for the preceding year are included as an
integral part of the current year financial Statements and are to be
read in relation to the amounts and other disclosures relating to the
current year.
Mar 31, 2010
1. Contingent liabilities not provided for in respect of -
a) Bank Guarantees amounting to Rs. 284.35 Lacs (Previous Year - Rs.
377.16 Lacs) [FDR for Rs. 31.46 Lacs (Previous Year- Rs. 37.72 Lacs)
pledged with the banks as margin.]
b) Excise duty liability arising out of search operation by the
Directorate General of Central Excise Intelligence. However, the
Company has paid under protest a sum of Rs. 5,000,000, pending issuance
of any show cause notice.
c) Sales Tax Demand of Rs. 67,186,278 for the year 2006-07 (Previous
Year Nil) disputed in appeal.
d) Central Sales Tax Demand of Rs. 1,399,114 for the year 2006-07
(Previous Year Nil) disputed in appeal.
e) Several Parties including the Company have disputed the basis of
levy of Fuel Surcharge in the electricity bills of Damodar Valley
Corporation (DVC). Accordingly an amount of Rs. 80,857,963/- (after
considering waiver of electricity duty admitted by DVC) has not been
provided for by the Company. Pending adjudication of final demand, the
Company has made adhoc payments against the bills.
2. Estimated amount of commitments on Capital Account (Net of
Advances) - Rs. 27.36 Lacs (P.Y. Rs. 27.36 Lacs).
3. The Company has entered into an agreement for assignment of
specific debts with a Company on 24th March, 2010. Accordingly the
Company as a beneficial owner has assigned unto the Purchaser all the
several debts and sums of money as specified in the agreement and
amounting to Rs. 108 Lacs on non-recourse basis. The amount receivable
from the Purchaser is shown in Schedule 9 "Loans and Advances" under
the head "Amount receivable under assignment". The Company has received
the amounts due subsequent to the Balance Sheet date.
4. In the opinion of the management, Current Assets, Loans & Advances
have a value on realisation at least equal to the amount at which they
are stated in the Balance Sheet. Adequate provisions have been made for
all known losses and liabilities.
5. Certain balances of Advances, Sundry debtors & Sundry creditors are
subject to confirmation.
6. There are no Micro, Small and Medium Enterprises to whom the
Company owes dues, which are outstanding for more than 45 days as at
31st March, 2010. This information as required to be disclosed under
the Micro, Small and Medium Enterprises Development Act, 2006 has been
determined to the extent such parties have been identified on the basis
of information available with the Company and relied upon by the auditors.
b) Liability for gratuity and leave encashment is provided on actuarial
basis for the Company as a whole. The amount pertaining to directors is
not ascertainable and, therefore, not included above.
c) The computation of net profit for the purpose of directors
remuneration under Section 349 of the Companies Act, 1956 has not been
enumerated since no commission has been paid to any director. Fixed
managerial remuneration has been paid to the Managing Director as per
Schedule XIII of the Companies Act, 1956.
7. Research and Development is assimilated to the production process
of the Company and hence cannot be segregated. No specific expenditure
was incurred under this head.
8. Amount of excise duty on variation in stocks shown in Schedule -15
represents differential excise duty on opening and closing stock of
finished goods.
9. No forward contracts/hedging instruments are outstanding at the
Balance Sheet date. Unhedged foreign currency exposure as at 31.03.10
is Nil.
10.The Company has made current tax provision for Minimum Alternate Tax
(MAT) u/s 115JB of the Income Tax Act, 1961. As per the provisions of
Section 115JAA, MAT Credit receivable has been recognized as an asset
in accordance with the recommendations contained in Guidance Note
issued by the Institute of Chartered Accountants of India. The said
asset is created by way of a credit to the profit & loss account and
shown as MAT Credit Entitlement. The Company will review the same at
each balance sheet date and write down the carrying amount of MAT
Credit Entitlement to the extent there is no longer convincing evidence
to the effect that Company will pay normal Income Tax during the
specified period.
11. There are no transactions which are required to be disclosed under
Clause 32 of the Listing Agreement.
The estimates of rate of escalation in salary considered in actuarial
valuation, take into account inflation, seniority, promotion and other
relevant factors including supply and demand in the employment market.
The expected rate of return on plan assets is determined considering
several applicable factors, mainly the composition of plan asset held,
assessed risks, historical results of return on plan asset and the
Companys policy for plan assets management.
The above information is certified by the actuary.
12. Based on the synergies, risks and returns associated with business
operations and in terms of Accounting Standard-17, the Company is
predominantly engaged in a single reportable segment of Iron and Steel
during the year. The risks and returns of existing captive power plant
are directly associated with the manufacturing operations of Iron &
Steel and hence treated as a single reportable segment as per
Accounting Standard-17. There is no separate geographical segment.
13. Related party disclosures
i. Name of the related parties where control exists irrespective of
whether transactions have occurred or not
a) Enterprise on which the Company has control None
b) Entities/Individuals owning directly
or indirectly an interest in the voting
power that gives them control None
ii. Names of the other related parties with
whom transactions have taken place during
the year
a) Key Managerial Personnel (KMP) & Relatives
of KMP Mr. Vikash Patni,
Managing Director
Mr. Vimal Kumar
Patni, Director
Mr. Akkash
Patni, Director
Mrs. Premlata Patni,
Mother of MD Mrs.
Sunita Patni, wife
of MD
b) Enterprises owned or significantly Impex Infotech Ltd.
Influenced by (a) above Brahmand Udyog Ltd.
Swami Vinimay Ltd.
Impex Ferro-Tech Ltd.
Vikash Smelters &
Alloys Ltd.
Unilever Enterprises
Ltd.
Sahyogi Distributors
Ltd.
Vikash Ores Ltd.
Impex Metal & Ferro
Alloys Ltd.
Deferred tax asset on account of unabsorbed depreciation has been
recognised as there exists virtual certainty of realisation on reversal
of deferred tax liability in future years on account of depreciation.
14. Previous years figures have been reworked, re-grouped, re-arranged
and re-classified, wherever considered necessary. Accordingly amounts
and other disclosures for the preceding year are included as an
integral part of the current year financial Statements and are to be
read in relation to the amounts and other disclosures relating to the
current year.