Mar 31, 2015
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 shareholder is eligible for one vote per share
held and in case of poll, the voting rights of every member shall be in
proportion to his shares of the paid-up Equity Share capital of the
Company.
2. The Company declares and pays dividends in Indian rupees. The
dividend proposed by the Board of Directors is subject to the approval
of the shareholders in the ensuing Annual General Meeting.
3. In the event of liquidation of the Company, the holders of Equity
Shares will be entitled to receive remaining assets of the Company,
after distribution of all preferential amounts. The distribution will
be in proportion to the number of Equity Shares held by the
shareholders.
4. Working Capital Term Loan (WCTL) :
Upon implementaion of the CDR Package (Refer Note 28), the overdrawn
portion of the Cash Credit Accounts of the Company has been carved out
into separate Working Capital Term Loans (WCTL).
5. Funded Interest Term Loan (FITL) :
Upon implementaion of the CDR Package (Refer Note 28), funding of
interest has been provided for:
* Interest on existing term loans for a period of 24 months from the
Cut-Off Date i.e from February 01, 2014 to January 31, 2016;
* Interest on WCTL for a period of 24 months from the Cut-Off Date i.e
from February 01, 2014 to January 31, 2016;
* Interest on residual cash credit limit for a period of 9 months from
the Cut-Off Date i.e February 01, 2014 to October 31, 2014
6. Nature of Security :
(i) In terms of the CDR package, Project Term Loans, Working Capital
Term Loans, Funded Interest Term Loans and Working Capital Loan (Refer
Note 8) are pooled together and secured as under:
7. First pari-passu charge on fixed assets by way of equitable mortgage
of the land & building / shed along with all movable and immovable
plant & machinery and other fixed assets thereon at Chhatna Dist.
Bankura.
8. First pari-passu charge on the entire Current Assets of the Company
comprised of stock of raw materials, semi finished and finished goods
and book debts, outstanding moneys, receivables, both present and
future pertaining to the Company's manufacturing units/divisions at
Chhatna Dist. Bankura.
9. Collateral Security equitable mortgage on office space at 20A
Thacker House 35, C. R. Avenue, Kolkata standing in the name of Sarita
Patni & Corporate office of the group at SKP House, 132A, S.P.
Mukherjee Road, Kolkata - 700 026 being 1st, 2nd, 3rd and 5th Floor,
standing in the name of M/s. Marble Arch Properties Pvt. Ltd. on pari
passu basis.
10. Personal guarantee of Promoters / Director - Mr. Suresh Kumar Patni,
Mr. Rohit Patni, Mr. Ankit Patni & Mrs. Sarita Patni.
11. Corporate guarantee of the group companies - M/s. Vasupujaya
Enterprises Pvt. Ltd., M/s. Poddar Mech Tech Services Pvt. Ltd., M/s.
Suanvi Trading & Investment Co. Pvt. Ltd., M/s. Sarita Steel & Power
Ltd., M/s. Marble Arch Properties Pvt. Ltd. & pledge of 8,11,80,000
shares of Company in the name of promoters & group associates.
12. Loans against Vehicle amounted to Rs. 10.77 Lacs are repayble by
way of Equated Monthly Installments subsequent to taking of such loan.
The original period of such loans is 3 yrs out of which Rs. 9.27 Lacs
is payable in the next financial year & it is treated as a current
liablities (Refer Note No. 6).
13. During the year, at the request of the Company - Ankit Metal & Power
Limited, the Corporate Debt Restructuring Proposal (CDR Proposal) was
referred to CDR Empowered Group (CDR EG) by the consortium of lenders
led by State Bank of India (SBI). The CDR Proposal as recommended by
SBI was approved by CDR EG on September 9, 2014 and communicated vide
Letter of Approval dated 17th September, 2014, as amended / modified
from time to time. Under CDR package, the Company's debts were
restructured / rescheduled and additional credit facilities have been
sanctioned as set out in the said Letter of Approval. The cut off date
for CDR package is February 01, 2014. Upon implementation, the
financial effect thereof has been taken into accounts w.r.t. the said
CDR scheme as per the said LOA. The said accounts are subject to
confirmation and reconciliation with the lenders.
14. The CDR Package includes reliefs / measures such as reduction in
interest rates, funding of interest, rearrangement of securities etc.
The key features of the CDR Proposal are as follows:
15. Repayment of Rupee Term Loans (RTL) after moratorium of 2 years
from the cut-off date in 32 structured quarterly installments
commencing from April 30, 2016 to January 31, 2024.
16. Conversion of various irregular/outstanding/devolved financial
facilities into Working Capital Term Loan ('WCTL'). Repayment of WCTL
after moratorium period of 2 years from cut-off date in 32 structured
quarterly installments commencing from April 30, 2016 to January 31,
2024.
17. Restructuring of existing fund based and non fund based financial
facilities.
18. Interest on RTL and WCTL during the moratorium period of 2 years
from cut-off date and interest on Cash Credit limit for a period of 9
months from the cut-off date shall be converted to FITL. Repayment of
FITL would be done in 20 structured quarterly installments commencing
from April 30, 2016 to January 31, 2021.
19. The rate of interest on PTL, WCTL, FITL and Fund Based Working
Capital Facilities shall be 11% (linked to the base rate of SBI) with
the right to reset the rate of the Term loan(s) and FITL every year
with the approval of CDR-EG.
20. Waiver of penal interest for irregularities in the Cash Credit
accounts for the period from cut-off date to the date of implementation
of the package.
21. Contribution of Rs. 3,807 Lacs in the Company by the promoters in
lieu of bank sacrifices of Rs. 12,690 Lacs to meet the additional cost
of the Company. The contribution is to be brought initially in the form
of unsecured loan and the same is to be converted into equity.
22. The CDR Package as well as the provisions of the Master Circular on
Corporate Debt Restructuring issued by the Reserve Bank of India, gives
a right to the CDR Lenders to get a recompense of their waivers and
sacrifices made as part of the CDR Proposal. The recompense payable by
the Company is contingent on various factors, the outcome of which
currently is materially uncertain and hence the proportionate amount
payable as recompense has been treated as a contingent liability. The
aggregate present value of the outstanding sacrifice made/ to be made by
CDR Lenders as per the CDR package is approximately Rs. 48,176 Lacs.
23. Contingent Liabilities not provided for in the books of Accounts :
a) In respect of Letter of Credit amounting to Rs. NIL Lacs (P.Y.- Rs.
16,310.00 Lacs) & Bank guarantee amounting to Rs. 539.20 Lacs ( P. Y.
Rs. 482.20 Lacs).
b) Right to Recompense to CDR Lenders for the relief and sacrifice
extended, subject to provisions of CDR Guidelines, amounting to Rs.
4,440.00 Lacs.
c) Relating to Assessment year 2006-07, 2009-10 & 2012-13 a demand of
Rs. 21.11 Lacs, Rs. 25.28 Lacs & Rs. 6,692.78 Lacs was raised by the
Income Tax Department against which the Company has filed an
application with respective department. An amount of Rs. 16.10 Lacs was
paid under protest relating to A.Y 2006-07.
d) Relating to Earlier Financial years a demand of Rs. 384.70 Lacs (PY
Rs. 186.98 Lacs) were raised by the CESTAT department against which
appeal has been filed by the Company. The Company has paid Rs. 50.00
Lacs under protest.
e) Relating to Financial year 2005-06,2006 -07, 2007-08, 2008-09,
2009-10, 2011-12 a demand of Rs. 222.89 Lacs, Rs. 917.91 Lacs, Rs.
358.16 Lacs, Rs. 2,127.7 Lacs, Rs. 37.28 Lacs & Rs. 446.29 Lacs
respectively were raised by the Sales Tax department against which
appeal has been filed by the Company.
f) (i) A Suit of Rs. 100 Lacs filed by Mr. Ram Krishna Mukherjee for
recovery of outstanding money against coal supplied to the Company in
the year 2011. The Company has opposed the suit on the ground of
inferior quality.
(ii) In the year 2013 M/s. Mjunction filed a money suit for recovery of
outstanding from the Company, amount being Rs. 0.40 Lacs. Hearing is
under process.
g) The Ministry of Railway issued a Show Cause Notice in respect of
Evasion of Freight on loading of Iron-ore at a concessional rate and
the penalty on such thereof amounting to Rs. 5,697.90 Lacs. The Company
has filed a writ petition in the High Court in the year 2013 for
issuing an unjustified notice.
Interest of Rs. NIL (P. Y Rs. 2,643.72 Lacs) capitalised during the
year as identified for acquisition & construction of qualifying assets
and a sum of Rs. NIL (P. Y Rs. 1,059.03 Lacs) transferred to pre
operative expenses as a borrowing cost.
Excise duty payable on Closing Stock on Finished Goods valued at Rs.
1,260.31 Lacs (P. Y Rs. 302.10 Lacs) included in Closing Stock of
Finished Goods and effect on Excise duty on change in stock of Finished
Goods shown under Other Expenses (Notes No. 27). Due to above, there is
no effect on profitability of the Company for the year under review.
Certain balances of the Sundry Creditors, Sundry Debtors, Unsecured
Loan and Advances are subject to confirmation and reconciliation.
In the opinion of the Board of Directors, the Current Assets and Loans
& Advances have a value on realisation in the ordinary course of
business at least equal to the amount at which they are stated in the
accounts.
24. INTEREST IN JOINT VENTURE
The Company has the following investment, in a jointly controlled
entity:
Name of the Entity : M/s. SKP Mining Pvt. Ltd.
Country of Incorporation : India
Percentage of ownership interest : 50% as at 31st March, 2015
Percentage of ownership interest : NIL as at 31st March, 2014
The Company's interest in this Joint Venture is reported as Non-current
investment (Refer Note 13) and is stated at cost (net of provision for
other than temporary diminution in value). The Company's share of each
of the assets, liabilities, income, expenses, etc (each without
elimination of the effect of transactions between the Company and the
Joint Venture) related to its interest in this joint venture, based on
the audited financial statements are :
The Company's business activity primarily falls within a single
business segment i.e. Iron & Steel business. However, the Company also
generate power from its captive power plant, which is entirely consumed
in Iron & Steel manufacturing unit without any sale to third party. The
details of such unit generated are shown below. Hence, there are no
additional disclosure to be made under AS - 17.
Particulars 31-10-2015
Unit Generated (KWH ) 1,347.32
25. RELATED PARTIES DISCLOSURE AS PER AS - 18
A. Name of the Related Parties where control exists irrespective of
whether transactions have occurred or not:-
A.1 Enterprise on which the company has control :
Nil
SKP Mining Pvt. Ltd.
A.2 Entities/Individuals owning directly or indrectly an interest in
the voting power that gives them control :
Sarita Patni SBM Steels Pvt. Ltd.
Gajkarna Merchandise Pvt. Ltd.
Shubham Complex Pvt. Ltd.
Rellybulls Derivatives & Commodities Pvt. Ltd.
Narmada River Resources Pvt. Ltd.
A. B. Infratel Pvt. Ltd.
26. PARTICULARS ON REMITTANCES OF DIVIDEND IN FOREIGN CURRENCY
i Number of Non Resident Shareholders NIL
ii Number of Equity Shares Held by them NIL
iii Amount of remittance on account of dividend NIL
Previous year's figures have been regrouped/restated wherever necessary
to conform with this year's classification.
Mar 31, 2014
NOTE 1 ADDTIONAL NOTES ON ACCOUNTS
1.1 Contingent Liabilities not provided for in the books of Accounts :
a) In respect of Bills Discounted, outstanding as on 31.03.2014
amounting to Rs. NIL (P.Y. Rs. 4,843.40 Lacs).
b) In respect of Letter of Credit amounting to Rs. 16,310 Lacs (P.Y. Rs.
3,212.60 Lacs) & Bank guarantee amounting to Rs. 482.20 Lacs (P. Y. Rs.
272.93 Lacs).
c) Commitments against Capital Expenditure not provided in the accounts
Rs. NIL (P. Y Rs. 617.15 Lacs).
d) Relating to Assessment Year 2006-07 & 2009-10 a demand ofRs. 21.11
Lacs &Rs. 25.28 Lacs was raised by the Income Tax Department against
which the Company has fi led an application with respective department.
An amount ofRs. 16.11 Lacs was paid under protest relating to AY.
2006-07. For the AY. 2008-09 a demand of Rs. 954.67 Lacs was raised by
the department out of which orders eff ecting to the tune of Rs. 921.67
Lacs has been passed in favour of the Company and the rest of the
amount is still under litigation.
e) Relating to earlier years, Central Excise Department has raised
demand order aggregating to Rs. 186.98 Lacs out of which payment under
protest ofRs. 35 Lacs has been made and the Company has fi led
Appeal/Writ Petition in the respective Authority/Court.
f) Relating to Financial Year 2005-06, 2006-07, 2007-08, 2008-09,
2009-10, 2010-11 a demand of Rs. 222.89 Lacs, Rs. 358.16 Lacs, Rs. 917.91
Lacs, Rs. 180.88 Lacs, Rs. 1,946.82 Lacs, Rs. 37.28 Lacs, Rs. 88.14 Lacs
respectively were raised by the sales tax department against which
appeals have been fi led by the Company.
g) (i) A Suit of Rs. 100 Lacs fi led by Mr. Ram Krishna Mukherjee for
recovery of outstanding money against coal supplied to the Company in
the year 2011. The Company has opposed the suit on the ground of
inferior quality.
(ii) In the year 2013, M/s. Mjunction fi led a money suit for recovery
of outstanding from the Company, amount being Rs. 0.40 Lacs. Hearing is
under process.
h) The Ministry of Railway issued a Show Cause Notice in respect of
Evasion of Freight on loading of Iron-ore at a concessional rate & the
penalty on such thereof amounting to Rs. 5,697.90 Lacs. The Company has
fi led a writ petition in the High Court in the year 2013 for issuing
an unjustifi ed notice.
1.2 a) Interest of Rs. 2,643.72 Lacs (P. Y Rs. 2,977.78 Lacs) capitalised
during the year as identifi ed for acquisition & construction of
qualifying assets and a sum of Rs. 1,059.03 Lacs (P. Y Rs. 1,838.69 Lacs)
transferred to pre operative expenses as a borrowing cost.
1.3 Excise duty payable on Closing Stock on Finished Goods valued at Rs.
302.10 Lacs (P. Y Rs. 824.21 Lacs) included in Closing Stock of Finished
Goods and eff ect on Excise Duty on change in stock of Finished Goods
shown under Manufacturing Expenses (Note No. 25). Due to above, there
is no eff ect on profitability of the Company for the year under
review.
1.4 Sundry Creditors includes Rs. NIL (P. Y Rs. NIL) due to Micro, Small &
Medium Enterprises to the extent such parties have been identifi ed
from the available documents/information.
1.5 Debtors includes Rs. 22.90 Lacs (P. Y Rs. 22.90 Lacs) for which legal
case has been fi led for recovery u/s. 138 of Negotiable Instrument
Act, 1881.
1.6 Certain balances of the Sundry Creditors, Sundry Debtors,
Unsecured Loan and Advances are subject to Confi rmation.
1.7 In the opinion of the Board of Directors, the Current Assets,
Loans & Advances have a value on realisation in the ordinary course of
business at least equal to the amount at which they are stated in the
accounts.
1.8 Disclosure pursuant to Accounting Standard-15 (Revised) "Employee
Benefits" :
a. Defi ned Contribution Plan : Amount of Rs. 11.14 Lacs is recognised
as expense and included in "Payments to and Provision For Employees" in
Schedule-16 of the Profit & Loss Account.
1.9 Segment Reporting
The Company''s business activity primarily falls within a single
business segment i.e. Iron & Steel business. However, the Company also
generate power from its Captive Power Plant, which is entirely consumed
in Iron & Steel manufacturing unit without any sale to third party. The
details of such unit generated are shown below. Hence, there are no
additional disclosure to be made under AS - 17.
1.10 Related Parties disclosure as per AS - 18
A. Name of the Related Parties with whom the Company had transactions
during the year :
Name of the Related Party Relationship
Ankit Patni_Director - KMP
Suresh Kumar PatniDirector - KMP
Sanjay SinghDirector - KMP
Name of the Related Party Relationship
Rohit PatniRelative of KMP
Sarita PatniRelative of KMP
Neha PatniRelative of KMP
Naina PatniRelative of KMP
Rohit Ferro-Tech LimitedControl of KMP
Impex Ferro Tech Limited_Control of KMP
Impex Metal & Ferro Alloys Limited_Control of KMP
Relybulls Stock Broking Private Limited (Previously known as SKP Stock
Broking Private Limited)_Control of KMP
Sarita Steel & Power Limited_Control of KMP
SKP Overseas Pte. Limited_Control of KMP
Shreyansh Leafi n Private Limited_Control of KMP
VNG Mercantiles Private Limited_Control of KMP
Marble Arch Properties Private LimitedControl of KMP
Arthodock Vinimay Private LimitedControl of KMP
Whitestone Suppliers Private LimitedControl of KMP
Nucore Exports Private Limited_Control of KMP
Invesco Finance Private LimitedControl of KMP
SKP Aviation Services LimitedControl of KMP
SKP Power Ventures Limited_Control of KMP
Suanvi Trading & Investment Co. Private Limited_Control of KMP
Vasupujya Enterprises Private Limited_Control of KMP
Poddar Mech Tech Services Private Limited_Control of KMP
Divine Trading Co. Private LimitedControl of KMP
Relybulls Derivatives & Commodities Private Limited (Previously known
as SKP Derivatives & Control of KMP Commodities Private Limited)_
Laxmiwan Marketing Private Limited Control of KMP
Binapani Tradelink Private Limited Control of KMP
Mahabala Merchants Private Limited Control of KMP
Versatile Suppliers Private Limited Control of KMP
Paropkar Merchants Private Limited Control of KMP
Gannath Commerce Private Limited Control of KMP
Shubham Complex Private Limited Control of KMP
Dhodwala Enterprises Limited Control of KMP
Impex Cements Limited Control of KMP
VSN Agro Products Limited Control of KMP
Impex Industries Limited Control of KMP
Gold Mohar Steel Limited Control of KMP
Patni Metal & Ferro Alloys Limited Control of KMP
SKP Impex Pte. Limited Control of KMP
Nutech Multimax Private Limited Control of KMP
Greetamax Estates Private Limited Control of KMP
SKP Infrarealty Private Limited Control of KMP
Pioneer Multimax Private Limited Control of KMP
SKP Realtors Private Limited Control of KMP
*KMP means Key Managerial Personnel
1.11 Particulars on remittances of Dividend in foreign currency.
i Number of Non Resident Shareholders NIL
ii Number of Equity Shares Held by them NIL
iii Amount of remittance on account of dividend NIL
1.12 Previous Year''s figures have been regrouped/rearranged, wherever
considered necessary.
1.13 The figures have been rounded off to nearest lacs.
Mar 31, 2013
1.1 Contingent Liabilities not provided for in the books of Accounts :
a) In respect of Bills Discounted, outstanding as on 31st March, 2013
amounting to Rs. 4,843.40 lacs (P. Y. Rs. 2,077.35 lacs).
b) In respect of Letter of Credit amounting to Rs. 3,212.60 lacs (P. Y. Rs.
3,122.59 lacs) & Bank guarantee amounting to Rs. 272.93 lacs ( P. Y. Rs.
141.20 lacs).
c) Commitments against Capital Expenditure not provided in the accounts
Rs. 617.15 lacs ( P. Y. Rs. 4,320.79 lacs).
d) Relating to Assessment year 2006-07, 2008-09, 2009-10 & 2010-11 a
demand of Rs. 21.11 lacs, Rs. 217.90 lacs, Rs. 25.28 lacs & Rs. 88.43 lacs was
raised by the Income Tax Department against which the Company has filed
an application with respective department. The Decision of the case
relating to A.Y. 2008-09 is in favour of Company against which
department filed application in Tribunal. An amount of Rs. 11.10 Lacs was
paid under protest relating to A.Y. 2006-07 and Rs. 50 Lacs relating to
A.Y. 2008-09.
e) Relating to previous Financial Year a various demand of Rs. 88.61 lacs
were raised by the Central Excise & Service Tax Department against
which appeal has been filed by the Company. The Company has paid Rs. 5
lacs under protest & a search has been conduted in the factory & office
premises on 11.01.2012 relating to which show cause notice has not been
issued by the department during the financial year. The Company has
paid Rs. 15 lacs under protest.
f) Relating to Financial year 2005-06, 2006-07, 2007-08 & 2008-09 a
demand of Rs. 222.89 lacs, Rs. 358.16 lacs, Rs. 917.91 lacs, Rs. 539.04 lacs &
Rs. 1,946.82 lacs respectively were raised by the sales tax department
against which appeal has been filed by the Company.
g) (i) A Suit of Rs. 1 Cr. filed by Mr. Ram Krishna Mukherjee for
recovery of outstanding money against coal supplied to the Company in
the year 2011. The Company is opposing the suit on the ground of
inferior quality.
(ii) In the year 2012 Mjunction Services Ltd. has filed a suit against
the Company for non-payment of invoices raised by them on account of
service charges of the bidding conducted by them.
h) In the year 2012 the Company has challanged the ACT i.e. Section 4
of West Bengal Tax on Entry of goods into the Local Areas Act
2012,(Levy & Collection of Tax). Hearing of the case is under Progress.
i) A civil suit has been filed before Hon''able Court, Calcutta against
Company on 04.02.2011 for a sum of Rs. 136.82 lacs for non payment of
rejected material alongwith interest and penalty for non-submission of
Sales Tax Declaration in Form "C".
1.2 a) Interest of Rs. 2,977.78 lacs (P. Y. Rs. 3,597.76 lacs) capitalised
during the year as identified for acquisition & construction of
qualifying assets and a sum of Rs. 1,838.69 lacs (P. Y. Rs. 1,323.31 lacs)
transferred to pre operative expenses as a borrowing cost.
1.3 Excise Duty payable on Closing Stock on Finished Goods valued at Rs.
824.21/- lacs (P. Y. Rs. 80.80 lacs) included in Closing Stock of
Finished Goods and effect on Excise Duty on change in Stock of Finished
Goods shown under Other Expenses (Notes No. 28). Due to above, there is
no effect on profitability of the Company for the year under review.
1.4 Sundry Creditors includes Rs. NIL lacs (P. Y. Rs. NIL) due to Micro,
Small & Medium Enterprises to the extent such parties have been
identified from the available documents/ information.
1.5 Debtors includes Rs. 22.90 lacs (P. Y. Rs. 22.90 lacs) for which legal
case has been filed for recovery u/s. 138 of Negotiable Instrument Act,
1881.
1.6 Certain balances of the Sundry Creditors, Sundry Debtors,
Unsecured Loan and Advances are subject to confirmation.
1.7 In the opinion of the Board of Directors, the Current Assets,
Loans & Advances have a value on realisation in the ordinary course of
business at least equal to the amount at which they are stated in the
accounts.
1.8 Disclosure pursuant to Accounting Standard-15 ( Revised) "Employee
Benefits" :
a. Defined Contribution Plan : Amount of Rs. 8.92 Lacs is recognised as
expense and included in "Payments to and Provision For Employees" in
Schedule-16 of the Profit & Loss Account.
b. Defined Benefit Plan:
i. Reconciliation of Opening and Closing balances of the Present Value
of the Defined Benefit Obligation :
1.09 Segment Reporting
The Company''s business activity primarily falls within a single
business segment i.e. Iron & Steel business. However, the Company also
generate power from its Captive Power Plant, which is entirely consumed
in Iron & Steel manufacturing unit without any sale to third party. The
details of such unit generated are shown below. Hence, there are no
additional disclosure to be made under AS -17.
1.10 Particulars on remittances of Dividend in foreign currency.
i Number of Non Resident Shareholders NIL
ii Number of Equity Shares held by them NIL
iii Amount of Remittance on account of Dividend NIL
1.11 Previous year''s figures have been regrouped/rearranged, wherever
considered necessary.
1.12 The figures have been rounded off to nearest lacs.
Mar 31, 2012
Terms/Rights attached to Equity Shares
The Company has only one class of Equity Shares having at a par value
of Rs. 10/- per share. On a show of hands, every member present in person
is entitled to one vote and in case of poll, the voting rights of every
member shall be in proportion to his shares of the paid-up Equity Share
Capital of the Company.
The dividend proposed if any, by the Board of Directors is subject to
the approval of the shareholders in the ensuing Annual General Meeting
& paid in Indian rupees.
In the event of liquidation of the Company, the holders of Equity
Shares will be entitled to receive remaining assets of the Company,
after distribution of all preferential amounts. The distribution will
be in proportion to the number of Equity Shares held by the
shareholders.
During the year under review the Board of Directors has issued &
alloted 625 lacs of Equity Shares of Rs. 10/- each at a premium of Rs. 30/-
per share on preferential basis to part finance the various expansion
scheme & long term working capital requirement of the Company. The
entire proceeds received from the said issue during the year has been
fully utilised towards the object of the issue.
Terms and Conditions relating to Share Application Money Pending
Allotment
The Share Application Money amounted to Rs. 11,075.62 lacs received
during the year 2010-2011 has been, with the consent of the respective
allotees, adjusted against shares alloted to them in preferential issue
of Equity Share of Rs. 10/- each at a premium of Rs. 30/- per share.
The existing Authorised Share Capital of the Company is sufficient to
accommodate the shares to be issued against the aforesaid share
appication money.
Terms and Conditions attached to Short Term Borrowings
Working Capital including SLC are jointly secured by hypothecation of
all the current assets on 1st pari-passu basis &2nd pari-passu charge
by way of extension of charge on the entire fixed assets of factory
land, building/shed, etc. & along with equitable mortgage on office
space at 35, C. R. Avenue, Kolkata on pari-passu basis & personal
guarantee of three Promoters & corporate guarantee of three Companies &
pledge of shares of Promoter Directors.
Loan from Banks/Others is secured by personal guarantees of Mr. Suresh
Kumar Patni (Chairman) and Mr. Ankit Patni (Managing Director), Mr.
Rohit Patni (Jt. Managing Director) and subservient charge on all
moveable assets including stock and debtor.
1.1 Contingent Liabilities not provided for in the books of Accounts:
a) In respect of Bills Discounted, outstanding as on 31st March, 2012
amounting to Rs. 2,077.35 lacs (P.Y. - Rs. 1,050.00 lacs).
b) In respect of Letter of Credit amounting to Rs. 3,122.59 lacs (P.Y. -
Rs. 1,218.15 lacs) & Bank Guarantee amounting to Rs. 141.20 lacs (P.Y. -Rs.
135.20 lacs).
c) Commitments against Capital Expenditure not provided in the accounts
Rs. 4,320.79 lacs (P.Y. - Rs. 4,650.35 lacs).
d) Relating to Assessment Year 2006-07, 2007-08, 2008-09 & 2009-10 a
demand of Rs. 21.11 lacs, Rs. 19.99 lacs, Rs. 217.90 lacs & Rs. 25.28 lacs
was raised by the Income Tax Department against which the Company has filed
an application with respective department. The decision of the case
relating to Assessment Year 2008-09 is in favour of Company against
which department filed application in Tribunal. An amount of Rs. 11.10
lacs was paid under protest relating to Assessment Year 2006-07, and Rs.
50 lacs relating to Assessment Year 2008-09. An amount of Rs. 4.47 lacs
paid relating to year 2007-08.
e) Relating to Financial Year 2005-06, 2006-07, 2007-08 & 2008-09 a
demand of Rs. 222.89 lacs, Rs. 917.91 lacs, Rs. 539.04 lacs & Rs. 1,946.82
lacs respectively were raised by the Sales Tax Department against which
appeal has been filed by the Company.
f) A Civil suit has been filed before Hon'able Court, Calcutta against
Company on 4/2/2011 for a sum of Rs. 136.82 lacs for non payment of
rejected material alongwith interest and penalty for non-submission of
Sales Tax Declaration in Form "C".
1.2 During the year, the Company has alloted 625.00 lacs Equity Shares
of Rs. 10/- at a price of Rs. 40/- per Equity Share (including premium of
Rs.30/- per share) to entities belonging to promoter group and strategic
investors belonging to non-promoter group on a preferential basis in
terms of provisions of SEBI (Issue of Capital and Disclosure
Requirement) Regulation 2009. The total funds amounting to Rs. 25,000
lacs raised from the issue have been utilised for financing expansion
projects and working capital requirements.
1.3 a) Interest of Rs. 3,597.76 lacs (P.Y. - Rs. 21.30 lacs) capitalised
during the year as identified for acquisition & construction of
qualifying assets and a sum of Rs. 1,323.31 lacs (P.Y. - Rs. 850.90 lacs)
transferred to pre operative expenses as a borrowing cost.
1.4 Excise Duty payable on Closing Stock on Finished Goods valued at Rs.
80.80 lacs (P.Y. - Rs. 421.84 lacs) included in Closing Stock of Finished
Goods and effect on Excise Duty on change in Stock of Finished Goods
shown under Other Expenses (Notes No. 27). Due to above, there is no
effect on profitability of the Company for the year under review.
1.5 Sundry creditors includes Rs. NIL lacs (P.Y. - Rs. NIL) due to Micro,
Small & Medium Enterprises to the extent such parties have been
identified from the available documents/information.
1.6 Debtors includes Rs. 22.90 lacs (Rs. 22.90 lacs) for which legal case
has been filed for recovery under Section 138 of Negotiable Instrument
Act, 1881.
1.7 Certain balances of the Sundry Creditors, Sundry Debtors,
Unsecured Loan and Advances are subject to confirmation.
1.8 In the opinion of the Board of Directors, the Current Assets,
Loans & Advances have a value on realisation in the ordinary course of
business at least equal to the amount at which they are stated in the
accounts.
1.9 Disclosure pursuant to Accounting Standard-15 (Revised) "Employee
Benefits":
a. Defined Contribution Plan : Amount of Rs. 2.44 lacs is recognised as
expense and included in "Payments to and Provision For Employees"in
Schedule-16 of the Profit & Loss Account.
b. Defined Benefit Plan :
vii. The estimates of future salary increases considered in actuarial
valuation takes into account inflation, seniority, promotion and other
relevant factors.
1.10 Segment Reporting
The Company's business activity primarily falls within a single
business segment i.e. Iron & Steel business. However, the Company also
generates power from its Captive Power Plant, which is entirely
consumed in Iron & Steel manufacturing unit without any sale to third
party. The details of such unit generated are shown below. Hence, there
are no additional disclosure to be made under AS - 17.
1.11 Previous year's figures have been regrouped/rearranged, wherever
considered necessary.
1.12 The figures have been rounded off to nearest lacs.
Mar 31, 2011
1. Contingent Liabilities not provided for in the Books of Accounts :
a) In respect of Bills Discounted, outstanding as on 31st March, 2011
amounting to Rs. 1,050.00 lacs (P.Y- Rs. 1,259.02 lacs).
b) In respect of Letter of Credit amounting to Rs. 1,218.15 lacs
(P.Y-Rs. 508.92 lacs) & Bank Guarantee amounting to Rs. 135.20 lacs (P.
Y-Rs. 254.55 lacs).
c) Commitments against Capital Expenditure not provided in the accounts
(Net of Advances) Rs. 4,650.45 lacs (P. Y-Rs. 1,238.35 lacs).
d) Relating to Assessment year 2006-07, 2007-08, 2008-09 & 2009-10 a
demand of Rs. 21.11 lacs, Rs. 3.54 lacs, Rs. 217.90 lacs & Rs. 10.32
lacs was raised by the D.C.I.T, Circle-3, Kolkata against which the
Company has filed a appeal. An amount of Rs. 11.11 lacs was paid under
protest relating to year 2006-07 and Rs. 50.00 lacs relating to year
2008-09.
e) Relating to Financial year 2005-06, 2006-07 & 2007-08, a demand of
Rs. 215.65 lacs, Rs. 815.00 lacs & Rs. 539.04 lacs respectively were
raised by the Sales Tax department against which appeal has been filed
by the Company.
f) A sum of Rs. 4.46 lacs was raised by Asssistant Commissioner of
Central Excise, Bolpur, as per Show Cause Notice for which Rs. 5.05
lacs has been paid by the Company.
g) A Civil suit has been filed before Hon'able Court, Calcutta against
the Company on 4th February, 2011 for a sum of Rs. 136.82 lacs for non
payment of rejected material along with interest and penalty for
non-submission of Sales Tax Declaration in Form "C".
2. Draft Letter of Offer for issue of Equity Shares on right basis to
the existing shareholders of the Company has been approved by
Securities and Exchange Board of India (SEBI) subject to compliance of
certain observation contained therein. Pursuant to above, the Company
has received Share application money from the Promoters & Promoter's
Group amounting to Rs. 1,1075.62 lacs shown under the head "Share
Application Money - Pending Allotment".
3. All the related expenses of expansion project which is under
implementation treated as capital work-in-progress. Administrative
expenses relating to said project as identified by the management, have
been transferred to Pre-operative Expenses Account. (Refer note no.
B-13 hereunder).
4. Interest of Rs. 21.30 lacs (P.Y.- Rs. 61.07 lacs) capitalised
during the year as identified for acquisition & construction of
qualifying assets and a sum of Rs. 850.90 lacs (P.Y-Rs. 34.32 lacs)
transferred to pre-operative expenses as a borrowing cost.
5. a) Excise duty payable on Closing Stock of Finished Goods valued at
Rs. 421.84 lacs (P.Y-Rs. 196.05 lacs) included in Closing
Stock of Finished Goods and effect on Excise duty on change in stock of
Finished Goods shown under manufacturing expenses. Due to above, there
is no effect on profitability of the Company for the year under review
b) Excise duty includes Rs. 138.82 lacs paid as per the Directions
given by the Custom & Central Excise Settlement Commission, Additional
Bench, Kolkata as per Final Order no. F-247/CE/10-SC(KB) dated 26th
November, 2010.
6. Sundry creditors includes Rs. NIL (P.Y-Rs. NIL) due to Micro, Small
& Medium Enterprises to the extent such parties have been identified
from the available documents/information.
7. a) Debtors include Rs. 6.07 lacs (Rs. 15.59 lacs) outstanding for
more than 3 years in respect of which necessary steps have been
initiated by the Company. The management considers the same are goods
and fully recoverable, hence no provision has been made in the accounts
at this regards.
b) Debtors includes Rs. 22.90 lacs (Rs. NIL) for which legal case has
been filed for recovery under Section 138 of Negotiable Instrument Act,
1881. Since the amount is recoverable in the opinion of management, no
provision has been made therefore.
8. Certain balances of the Sundry Creditors, Sundry Debtors, Unsecured
Loan and Advances are subject to confirmation.
9. In the opinion of the Board of Directors, the Current Assets, Loans
& Advances have a value on realisation in the ordinary course of
business at least equal to the amount at which they are stated in the
accounts.
10. Disclosure pursuant to Accounting Standard-15 (Revised) "Employee
Benefits":
a. Defined Contribution Plan : Amount of Rs. 8.98 lacs is recognised
as expense and included in "Payments to and Provision For Employees" in
Schedule-16 of the Profit & Loss Account.
b. Defined Benefit Plan:
vii. The estimates of future salary increases considered in actuarial
valuation takes into account inflation, seniority, promotion and other
relevant factors.
II. Segment Reporting:
The Company's business activity primarily falls within a single
business segment i.e., Iron & Steel business. However, the Company also
generates power from its Captive Power Plant, which is entirely
consumed in Iron & Steel manufacturing unit without any sale to third
party. The details of such unit generated are shown below. Hence, there
are no additional disclosure to be made under AS-17.
16. Related Parties Disclosure as per AS-18
A) Name of the Related Parties with whom the Company had transactions
during the year :
Name of the Related Party Relationship
Rohit Patni Director-KMP
Ankit Patni Director-KMP
Suresh Kumar Patni Director-KMP
Santa Patni Relative of KMP
Suanvi, Trading& Control of KMP
Investment Co. Pvt. Ltd.
Vasupujya Enterprises Control of KMP
Pvt. Ltd.
Poddar Mech Tech Services Control of KMP
Pvt. Ltd.
Impex Metal & Ferro Control of KMP
Alloys Ltd.
Divine Trading Co. Pvt. Control of KMP
Ltd.
Invesco Finance Pvt. Ltd. Control of KMP
Impex Steel Ltd. Control of KMP
Impex Ferro Tech Ltd. Control of KMP
Rohit Ferro Tech Ltd. Control of KMP
Marble Arch Properties Control of KMP
Pvt. Ltd.
SKP Aviation Services Control of KMP
Ltd.
SKP Overseas Pte. Ltd. Control of KMP
VNG Mercantiles Pvt. Ltd. Control of KMP
Hira Concast Ltd. Control of KMP
Ann Minerals Pvt. Ltd. Control of KMP
Arthodock Vinimay Pvt. Control of KMP
Ltd.
Nucore Exports Pvt. Ltd. Control of KMP
Shreyansh Leafin Pvt. Control of KMP
Ltd.
Whitestone Suppliers Control of KMP
Pvt. Ltd.
*KMP means Key Managerial Personnel
11. Quantitative Information pursuant to Para 3 & 4 of part II of
Schedule VI to the Companies Act, 1956.
A) Licensed Capacity : N.A
C) Quantitative Information : Production, Stock, Sale of goods
produced/traded during the year :
12. Particulars on remittances of Dividend in foreign currency
i Number of Non Resident Shareholders NIL
ii Number of Equity Shares held by NIL
them
iii Amount of remittance on account NIL
of dividend
13. Additional Information pursuant to Part IV of Schedule VI is as
per Annexure - A
14. Previous year's figures have been regrouped/rearranged, wherever
considered necessary.
15. The figures have been rounded off to nearest rupee.
Mar 31, 2010
1. All the related expenses of expansion project which is under
implementation treated as Capital Work-in-Progress. Administrative
expenses relating to said project as identified by the Management, have
been transferred to Pre-operative Expenses Account (Refer note no. B-12
hereunder)
2. Interest of Rs. 61.07 Lacs (Previous year - Rs. 480.40 Lacs)
capitalised during the year as identified for acquisition &
construction of Qualifying assets and a sum of Rs. 34.32 Lacs (Previous
year - Rs. 179.87 Lacs) transferred to pre-operative expenses as a
borrowing cost.
3. Excise Duty payable on closing stock on Finished Goods valued at
Rs. 196.05 Lacs (Previous year - Rs. 112.83 Lacs) included in closing
stockof Finished Goods and effect on Excise Duty on change in stock of
Finished Goods shown under manufacturing expenses. Due to above, there
is no effect on profitability of the Company for the year under review.
4. Sundry Creditors includes Rs. NIL (Previous year - Rs. NIL) due to
Micro, Small & Medium Enterprises to the extent such parties have been
identified from the available documents/information.
5. Debtors include Rs. 15.59 Lacs outstanding for more than 3 years in
respect of which necessary steps have been initiated by the Company.
The Management considers the same are good and fully recoverable, hence
no provision has been made in the accounts at this regards.
6. Certain balances of the Sundry Creditors, Sundry Debtors, Unsecured
Loan and Advances are subject to confirmation.
7. In the opinion of the Board of Directors, the Current Assets, Loans
& Advances have a value on realisation in the ordinary course of
business at least equal to the amount at which they are stated in the
accounts.
8. Disclosure pursuant to Accounting Standard -15 (Revised) "Employee
Benefits":
a. Defined Contribution Plan .-Amount of Rs. 5.72 Lacs is recognised
as expense and included in "Payments to and Provision For Employees" in
Schedule-16 of the Profit & Loss Account.
b. Defined Benefit Plan:
i) Reconciliation of Opening and Closing balances of the Present Value
of the Defined Benefit Obligation:
9. Segment Reporting
The Companys business activity primarily falls within a single
business segment i.e. Iron & Steel business. However, the Company also
generate power from its Captive Power Plant, which is entirely consumed
in Iron & Steel manufacturing unit without any sale to third party. The
details of such unit generated are shown below. Hence, there are no
additional disclosure to be made under Accounting Standard-17.
10. Quantitative Information pursuant to Para 3 & 4 of Part II of
Schedule VI to the Companies Act, 1956.
A) Licenced Capacity: N.A.
B) Detail of Capacity & Production
11. Additional Information pursuant to Part - IV of Schedule VI is as
per Annexure - A
12. Previous years figures have been re-grouped/re-arranged, wherever
considered necessary.
13. The figures have been rounded off to nearest rupee.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article