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Notes to Accounts of Barak Valley Cements Ltd.

Mar 31, 2018

(1) Contingent liabilities not provided for:

(a) Corporate Guarantee''s given to Financial Institutions/ Banks on behalf of wholly owned subsidiaries: Rs. 3,133.92 Lakhs ( Rs. 3,519.64 Lakhs as at 31st March'' 2017 and Rs. 3,447.71 Lakhs as at 31st March'' 2016)

(b) Claims against the company not acknowledged as debts: Disputed demands of Entry - tax /Income -Tax matters pending before the Appellate Authorities: Rs. 90.79 Lakhs ( Rs.259.92 lakhs as at 31st March'' 2017 and 31st March'' 2016)

(c) Fixed Deposit Receipts pledged with the banks / others: Rs. 92.69 Lakhs (Rs. 64.70 Lakhs as at 31st March'' 2017 and Rs. 7.73 Lakhs as at 31st March'' 2016)

(38) There are no Micro, Small and Medium enterprises, as defined in the Micro, Small and Medium Enterprises Development Act, 2006 to whom the company owes dues on account of principal amount together with interest and accordingly no additional disclosure have been made. The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of the information/ documents available with the company.

(2). Employee Defined Benefits: (i) Leave Obligations :

Under leave encashment scheme, the company allows its employees to en-cash accumulated leave over and above thirty days. So, accumulated leave encashment liability for up to 30 days period is classified as non -current liability and over the period of 30 days is covered under current liability. Non -current liability of leave encashment is discounted @ 9% and carried at current cost in the financial statements and resultant variation is accounted for in the finance cost / employee benefit expenses of the profit and loss statement.

(ii) Gratuity :

The company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to gratuity on terms not less than the provisions of the Payment of Gratuity Act, 1972.

(iii) Risk Exposure:

Through its defined benefit plans the Company is exposed to a number of risks, significant of which are as follows:

(a) Investment risk: The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to the Government of India bonds. If the return on plan asset is below this rate, it will create a plan deficit.

(b) Interest Risk: A decrease in the interest rate on plan assets will increase the plan liability.

(c) Life Expectancy: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and at the end of the employment. An increase in the life expectancy of the plan participants will increase the plan liability.

(d) Salary growth risk : The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. An increase in the salary of the plan participants will increase the plan liability.

(iv) The company has recognized expenses of Rs. 22.66 lakhs (Rs. 19.84 lakhs as at 31st March, 2017) towards the defined contribution plan.

(3) Capital management

(a) Risk Management : The company''s objective when managing capital are to :

- Safeguard their ability to continue as a going concern of the company, so that they can provide returns for shareholders and benefits for other stakeholders

- Maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the company may adjust the amount of dividend to shareholders, return capital to shareholders or issue new shares.

(b) Dividend: During the year, management of the company has decided not to declare any dividend and accumulated its profits for future projects and consolidates its operating efficiency.

(4) Related Party disclosures: Name of the related parties where control exists Nature of relationship

Meghalaya Minerals & Mines Ltd. Subsidiary Company

Badarpur Energy Pvt. Ltd. Subsidiary Company

Cement International Ltd. Subsidiary Company

Goombira Tea Co. Ltd. Subsidiary Company

Singlacherra Tea Co. Pvt. Ltd. Subsidiary Company

Chargola Tea Co. Pvt. Ltd. Subsidiary Company

Valley Strong Cements (Assam) Ltd. Subsidiary Company

Other related parties : Nature of relationship (I) Enterprises Influenced by KMP:

Valley Strong Cements Ltd. Enterprises influenced by Key Management personnel

Dony Polo Udyog Ltd. Enterprises influenced by Key Management personnel

Meghalaya Cements Ltd. Enterprises influenced by Key Management personnel

Om InfTacon Pvt. Ltd. Enterprises influenced by Key Management personnel

Nature of relationship (II) Key Management Personnel :

Sh. Kamakhya Chamaria Vice Chairman and Managing Director

Sh. Bijay Kumar Garodia Director

Sh. Santosh Kumar Bajaj Director

Sh. Mahendra Kumar Agarwal Vice Chairman

Sh. Prahlad Rai Chamaria Non- Executive Director

Sh. Tanuj Chamaria Son of Sh. Kamakhya Chamaria, Vice Chairman and

Managing Director

Sh. Mukesh Kumar Shovasaria Chief Executive Officer

Sh. Sushil Kumar Kothari Chief Financial Officer (Resigned w.e.f. 26.02.2018)

Ms. Saakshi Manchanda Company Secretary (joined w.e.f. 14.11.2016 and resigned

w.e.f. 05.07.2018)

(4) The company deals in only one Segment i.e. cement manufacturing and trading which is the only identified operating segment of the company. There is no separate reportable segment as required by Ind AS - 108 “Operating Segments”. The entire revenue of the company has been generated by way of domestic sales.

(5) Company has received/ recognized Rs. Nil (Rs. 258.84 lakhs as at 31st March'' 2017, Rs. 89.54 Lakhs as at 01st April'' 2016) being 50% of company''s claim for refund of excise duty as revenue in the books of accounts. Presently matter regarding company''s claim for refund of differential Excise Duty is pending before the Hon''ble Supreme Court of India.

(6) Financial risk management: The Company''s activities are exposed to a variety of financial risks: credit risk, liquidity risk and interest rate risk.

(a) Credit Risk : Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The company is exposed to credit risk from its operating activities primarily from trade receivables including deposits with banks and financial institutions and other financial instruments.

(ii) Financial instruments and deposits: Credit risk from balance with banks and financial institutions is managed by the finance department of the company. Investments of surplus funds are made only with approved counterparties in accordance with the company''s policy. Loans are given to body corporate are as per the company policy and the receipt of repayment are reviewed on regular basis. Other financial assets are considered to be of good quality and there is no significant risk.

(a) Liquidity Risk : Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or other financial asset. Due to the nature of the underlying business, the company maintains sufficient cash and liquid investments available to meet its obligation. Management of the company regularly monitors rolling forecast of the company''s liquidity position and cash and cash equivalents on the basis of expected cash flows.

The company had access to the working capital facilities from the bank amounting Rs. 2,500.00 lakhs (Outstanding balance Rs. 2,476.03 lakhs as at 31st March''2018) which are expiring in one year, subject to the renewal of the same by the banking authorities. A part from the working capital facility, company has also following outstanding borrowings from banks and financial institutions:

(a) Interest rate Risk : Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rate. As the company''s borrowings except borrowing from market are fixed rate borrowings; they are carried out at Amortized cost and are not subject to interest rate risk as defined in Ind AS 107.

(7) First time adoption of Ind AS :

These are the company''s first financial statements prepared in accordance with Ind AS. The accounting policies set out in Note 2, have been applied in preparing the financial statements for the year ended 31st March, 2018, the comparative financial statements for the year ended 31st March 2017 and in the preparation of opening Ind AS Balance Sheet at 1st April, 2016.

In preparing its opening Ind AS Balance Sheet, the company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 and other relevant provisions of the Act (Indian GAAP).

An explanation of how the transition from previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows is set out in the following tables and notes.

A. Exemptions and exceptions availed

Following are the applicable Ind AS optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

A.1 Ind AS optional exemptions A.1.1 Deemed cost

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP except Land and building that measure as Fair value and use that as its deemed cost as at the date of transition. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets.

Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying value except Land and building that measure as Fair value.

A.1.3 Investments in subsidiaries

In financial statements, a first-time adopter that subsequently measures an investment in a subsidiary at cost, may measure such investment at cost (determined in accordance with Ind AS 27) or deemed cost (fair value or previous GAAP carrying amount) in its opening Ind AS balance sheet. Selection of fair value or previous GAAP carrying amount for determining deemed cost can be done for each subsidiary.

Accordingly, the Company has elected to measure all of its investment in subsidiary at their previous GAAP carrying value.

A.2 Ind AS mandatory exceptions A.2.1 Estimates

The Company estimates in accordance with Ind ASs at the date of transition shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP.

A.2.2 Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the fact and circumstances that exits at the date of transition to Ind AS.

A.2.4 Cash flow Statements

The transition from Indian GAAP to Ind AS has no material impact on the Cash flow Statement.

Notes to first-time adoption:

Note 1: Property, plant and equipment

Company has elected to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying value except Land and building that measure as Fair value and the difference of the same are recognized in retained earnings.

Note 2 : Government grant

As per Ind AS 20, government grants related to assets, shall be presented in the Balance Sheet by setting up the grant as deferred income. Hence the Company has accounted the government grant received towards assets as per the requirement of Ind AS 20 by creating a deferred government grant. In subsequent year this deferred government grant has been Amortized over the useful life of the assets

Note 3 : Impairment of financial assets

The company has impaired its investment in and Loan given to one of its subsidiary company according to the accounting policies related to impairment of financial assets in Note 2. Hence the company has written off its investment and Loan given to its subsidiary company and recognized in retained earnings.

Note 4 : Financial Corporate Guarantee Contract

The Company has given guarantee on behalf of its subsidiary. As per Ind AS 109, the Company has recognized a guarantee fee income for giving guarantee on behalf of subsidiary for loans taken by subsidiaries

Note 5 : Employee benefit obligation

In accordance with Ind AS “Employee Benefits” re-measurement gains and losses on post-employment defined benefit plans are recognized in profit or loss.

Note 6: Investments in equity shares

The Company holds investment in equity shares of entities other than in subsidiaries, associate and joint venture. Under previous GAAP such investments were measured at cost.

As per Ind AS 109, these investments have been measured at fair value. The Company has categorized these investments as fair value through other comprehensive income (FVTOCI) and any changes in fair value of those investment has been recognized in other comprehensive income.

Note 7: Deferred tax

The various transitional adjustments lead to different temporary differences. According to the accounting policies in Note 2, the Company has to account for such differences. Deferred tax adjustments are recognized in correlation to the underlying transaction either in retained earnings or a separate component of equity.

Note 8 : Retained earnings

Retained earnings as at 1 April, 2016 has been adjusted consequent to the above Ind AS transition adjustments.

Note 9 : Statement of cash flows

The transition from Indian GAAP to Ind AS has not had a material impact on the statement of cash flows.

(48) Previous year''s figures have been regrouped and/ or re-arranged wherever necessary, to confirm to current year''s classification.

(49) The financial statements are approved by the Audit Committee at its meeting held on 01st June, 2018 and by the Board of Directors on the same date.


Mar 31, 2016

1. Terms/Rights attached to equity shares

The company has only one class of equity shares having par value of Rs. 10.00 per share. Each holder of Equity shares is entitled to one vote per share.

In the event of liquidation of the company, the holders of the 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.

2. Working Capital Term Loan (WCTL) of Rs. 305.56 lakhs (sanctioned amount Rs. 1,000.00 lakhs) from a bank is repayable in 36 equal monthly installments of Rs. 27.78 lakhs commencing from January'' 2014. The Loan is secured by extension of charge on the current assets as well as fixed assets (both present and future) of the company. Further, the loan has been guaranteed by personal gurantees of some of Directors of the Company.

3. Rupee Term Loans (RTL) of Rs. 936.85 lakhs (sanctioned amount Rs. 2,000.00 lakhs) is repayable from April''2015 in monthly installments of Rs. 40.00 lakhs. The loan is secured by first charge on fixed and immovable assets of company''s assets on pari -passu basis and by second charge on fixed and immovable assets of the company . The loans has also been guaranteed by personal guarantees of some of the Directors of the Company.

4. Hire Purchase Finance is secured by hypothecation of vehicles / equipments and is repayable within three to four years.

5. Loans from Other parties are unsecured in nature and due for repayment after 12 months as on the reporting date. The company does not have any existing default as at the date of balance sheet.

6. The above amount includes

Secured borrowings 274,978,166 248,853,598

7. Working Capital facilities from banks are secured by first charge on current assets of the Company and second charge on fixed assets of the Company. The Working capital facilities from banks have also been guaranteed by some of the Directors of the Company.

8. There are no Micro, Small and Medium enterprises, as defined in the Micro, Small and Medium Enterprises Development Act, 2006 to whom the company owes dues on account of principal amount together with interest and accordingly no additional disclosure have been made. The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of the information available with the company.

9. Employee Defined Benefits:

10. Defined Contribution Plans

The Company has recognized an expense of Rs.20,44,022/- (Previous year Rs 18,85,018/-) towards the defined contribution plans.

11. Defined Benefit Plans - As per Actuarial Valuation as at 31st March''2016

12. Disclosure in respect of Related Parties:

Pursuant to Accounting Standard - 18 "Related Party Disclosures" issued by ICAI, following are the related parties, description of their relationships and transactions carried out with them during the year in the ordinary course of business:

13. In pursuance of AS -28 "Impairment of Assets" issued by ICAI, the company reviewed its carrying cost of assets with value in use on the basis of future earnings and on such review, management is of the view that in the current financial year impairment of assets is not considered necessary.

14. In the opinion of the management and to the best of their knowledge and belief the value on realization of loans, advances and other current assets in the ordinary course of business will not be less than the amount as they are stated in the financial statements.

15. The Investment of the company includes the investment of Rs. 31.77 crores in " Badarpur Energy Pvt. Ltd.'' (Wholly owned subsidiary company of Barak Valley Cements Ltd.).The Operations of wholly owned subsidiary was discontinued since July 2014 due to non availability of required quality and quantity of biomass and still it is lying stopped. The Board of Directors of the Company has constituted a Committee to study and analyze the viability of the Plant and to submit its report to the Board after taking into consideration the necessary and relevant factors so that the Board can decide on the future course of action. Accordingly management of the company considered that there is no permanent decline in value of investment in subsidiary in anticipation that plant of the subsidiary might be operational in the future.

16. During the year company has claimed differential excise duty refund of Rs. 89.54 Lakhs (Previous Year: 63.10 Lakhs) for the current year 2015 -16 and recognized the same as revenue in the books of accounts. Presently matter regarding company''s claim for refund of differential Excise Duty is pending before the Hon''ble Supreme Court of India. In this matter revenue is recognized on the basis of Interim Order dated 13th January'' 2012 passed by the Hon''ble Supreme Court of India in case of "VVF Ltd. and Others" and similar relief granted to other companies located in NE region.

17. Out of the Subsidy Receivables amounting to Rs. 1,301.98 Lakhs, Rs. 603.45 Lakhs are related to Transport Subsidy and Central Capital Investment Subsidy claims of the company which are outstanding as receivable for more than five years. However, management of the company is treated the same as good and is of the opinion that the same will be realized in due course of time.

18. An amount of Rs. 58.89 Lakhs (Previous year : Rs. 58.89 Lakhs) has been deposited by the company with the revenue authorities against the disputed Entry Tax demand of earlier years. The same has been deposited ''under protest'' and is shown under ''Other Loans and Advances'' forming part of current assets.

19. The Ministry of Corporate Affairs has amended Schedule II to the Companies Act, 2013 requiring mandatory componentization of fixed assets for financial statements. Accordingly technical evaluation of fixed assets has been undertaken during the year and it was observed that useful life of any significant individual part of an asset is not different from the relevant total asset.

20. Previous year''s figures have been regrouped and/ or re-arranged wherever necessary, to confirm to current year''s classification.

In terms of our report of even date


Mar 31, 2015

(a) Terms/Rights attached to equity shares

The company has only one class of equity shares having par value of Rs, 10.00 per share. Each holder of Equity shares is entitled to one vote per share.

In the event of liquidation of the company, the holders of the 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.

As per records of the company, including its register of shareholders/members and other declaration received from shareholders regarding beneficial interest, the above shareholding represent both legal and beneficial owner.

(i) Rupee Term Loan of Rs, 284.00 lakhs (sanctioned amount Rs, 2,000.00 lakhs) from a bank is repayable in 59 equal monthly installments of Rs, 33.00 lakhs and 1 installment of Rs, 53.00 lakhs ending in September' 2015. The Loan is secured by first charge on all movable and immovable assets (both present and future) of the company. Further, the loan has been guaranteed by personal guarantees of some of Directors of the Company.

(ii) Working Capital Term Loan (WCTL) of Rs, 638.89 lakhs (sanctioned amount Rs, 1,000.00 lakhs) from a bank is repayable in 36 equal monthly installments of Rs, 27.78 lakhs commencing from January' 2014. The Loan is secured by extension of charge on the current assets as well as fixed assets (both present and future) of the company. Further, the loan has been guaranteed by personal guarantees of some of Directors of the Company.

(iii) Rupee Term Loans (RTL) of Rs, 1,336.85 lakhs (sanctioned amount Rs, 2,000.00 lakhs) is repayable from April' 2015 in monthly installments of Rs, 40.00 lakhs. The loan is secured by first charge on fixed and immovable assets of company's assets on pari passu basis and by second charge on fixed and immovable assets of the company . The loans has also been guaranteed by personal guarantees of some of the Directors of the Company.

(iv) Hire Purchase Finance is secured by hypothecation of vehicles / equipments and is repayable within three to four years.

(v) Loans from Other parties are unsecured in nature and due for repayment after 12 months as on the reporting date. The company does not have any existing default as at the date of balance sheet.

b. Working Capital facilities from banks are secured by first charge on current assets of the Company and second charge on fixed assets of the Company. The Working capital facilities from banks have also been guaranteed by some of the Directors of the Company.

(1) Capital Commitments

The estimated amount of Contracts remaining to be executed on Capital Account and other capital commitment not provided for amounts to Rs, 41.85 Lakhs (Previous year: Rs, 62.77 Lakhs)

(2) Contingent liabilities not provided for:

(a) Corporate Guarantee's given to Financial Institutions/ Banks on behalf of wholly owned subsidiaries: Rs, 3,296.07 Lakhs (Previous year – Rs, 3,529.25 Lakhs)

(b) Claims against the company not acknowledged as debts: Disputed demands of Income –Tax / Entry- Tax matters pending before the Appellate Authorities: Rs, 259.92 lakhs (Previous year – Rs, 409.19 lakhs)

(3) Fixed Deposit Receipts pledged with the banks / Others : Rs, 22.73 Lakhs (Previous Year : Rs, 37.73 Lakhs)

(4) There are no Micro, Small and Medium enterprises, as defined in the Micro, Small and Medium Enterprises Development Act, 2006 to whom the company owes dues on account of principal amount together with interest and accordingly no additional disclosure have been made. The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of the information available with the company.

(5) Employee Defined Benefits:

(a) Defined Contribution Plans

The Company has recognized an expense of Rs, 18,85,018/- (Previous year Rs, 17,57,578/-) towards the defined contribution plans.

(6) In pursuance of AS -28 "Impairment of Assets" issued by ICAI, the company reviewed its carrying cost of assets with value in use on the basis of future earnings and on such review, management is of the view that in the current financial year impairment of assets is not considered necessary.

(7) In the opinion of the management and to the best of their knowledge and belief the value on realization of loans, advances and other current assets in the ordinary course of business will not be less than the amount as they are stated in the financial statements.

(8) The company deals in only one Segment i.e. cement manufacturing. There is no separate reportable segment as required by AS – 17 "Segment Reporting".

(9) During the year company has claimed differential excise duty refund of Rs, 63.10 Lakhs (Previous Year: Rs, 39.57 Lakhs) for the current year 2014 -15 and recognized the same as revenue in the books of accounts. Presently matter regarding company's claim for refund of differential Excise Duty is pending before the Hon'ble Supreme Court of India. In this matter revenue is recognized on the basis of Interim Order dated 13th January' 2012 passed by the Hon'ble Supreme Court of India in case of "VVF Ltd. and Others" and similar relief granted to other companies located in NE region.

(10) Out of the Subsidy Receivables amounting to Rs, 1,254.44 Lakhs, Rs, 660.48 Lakhs is related to Transport Subsidy and Central Capital Investment Subsidy claims of the company which is outstanding as receivable for more than five years. However, management of the company is treated the same as good and is of the opinion that the same will be realized in due course of time.

(11) An amount of Rs, 58.89 Lakhs (Previous year : Rs, 38.11 Lakhs) has been deposited by the company with the revenue authorities against the disputed Entry Tax demand of earlier years. The same has been deposited 'under protest' and is shown under 'Other Loans and Advances' forming part of current assets.

(12) Previous year's figures have been regrouped and/ or re-arranged wherever necessary, to confirm to current year's classification.


Mar 31, 2014

1. CORPORATE INFORMATION

Barak Valley Cements Limited (the company) is a public limited company incorporated under the provisions of the Companies Act, 1956. The shares of the company are listed on National Stock Exchange and Bombay Stock Exchange of India. The manufacturing unit of the company is located at Badarpurghat, Distt. Karimganj, Assam. The company is engaged in the manufacturing and selling of various brands of Cement primarily in north eastern states.

2. (a) Terms/Rights attached to equity shares

The Company has only one class of equity shares having par value of Rs. 10.00 per share each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the company, the holders of the 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.

3. (i) Rupee Term Loan of Rs. 667.00 lakhs (sanctioned amount Rs. 2,000.00 lakhs) from a bank is repayable in 59 equal monthly installments of Rs. 33.00 lakhs and 1 installment of Rs. 53.00 lakhs ending in September'' 2015. The Loan is secured by first charge on all movable and immovable assets (both present and future) of the company. Further, the loan has been guaranteed by personal gurantees of some of Directors of the Company.

(ii) Working Capital Term Loan(WCTL) of Rs. 972.22 lakhs (sanctioned amount Rs. 1,000.00 lakhs) from a bank is repayable in 36 equal monthly installments of Rs. 27.78 lakhs commencing from January'' 2014. The Loan is secured by extension of charge on the current assets as well as fixed assets (both present and future) of the company. Further,the loan has been guaranteed by personal gurantees of some of Directors of the Company.

(iii) Rupee Term Loans of Rs. 1,936.56 lakhs from financial institution is consisting of RTL of Rs. 1,790.00 Lakhs which is repayable from April'' 2015 in monthly installments of Rs. 40.00 lakhs each and FITL of Rs. 146.56 Lakhs which is repayable from April'' 2015 in equal monthly installments of Rs. 8.15 Lakhs. The loan is secured by first charge on fixed and immovable assets of company''s assets on pari -passu basis and by second charge on fixed and immovable assets of the company. The loans has also been guaranteed by personal guarantees of some of the Directors of the Company.

(iv) Hire Purchase Finance is secured by hypothecation of vehicles/equipments and is repayable within three to four years.

(v) Loans from Other parties are unsecured in nature and due for repayment after 12 months as on the reporting date. The company does not have any existing default as at the date of balance sheet.

4. Capital Commitments

The estimated amount of Contracts remaining to be executed on Capital Account and other capital commitment not provided for amounts to Rs. 62.77 Lakhs (Previous year: Rs. 170.24 Lakhs)

5. Contingent liabilities not provided for:

(a) Corporate Guarantee''s given to Financial Institutions/ Banks on behalf of wholly owned subsidiaries: Rs. 3,529.25 Lakhs (Previous year - Rs. 2,948.72 Lakhs)

(b) Claims against the company not acknowledged as debts: Disputed demands of Income-Tax / Entry-Tax matters pending before the Appellate Authorities: Rs. 409.19 lakhs (Previous year - Rs. 1,028.76 lakhs)

6. Fixed Deposit Receipts pledged with the banks / Others : Rs. 37.73 Lakhs (Previous Year : Rs. 35.25 Lakhs)

7. There are no Micro, Small and Medium enterprises, as defined in the Micro, Small and Medium Enterprises Development Act, 2006 to whom the company owes dues on account of principal amount together with interest and accordingly no additional disclosure have been made. The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of the information available with the company.

8. In pursuance of AS -28 "Impairment of Assets" issued by ICAI, the company reviewed its carrying cost of assets with value in use on the basis of future earnings and on such review, management is of the view that in the current financial year impairment of assets is not considered necessary.

9. In the opinion of the management and to the best of their knowledge and belief the value on realization of loans, advances and other current assets in the ordinary course of business will not be less than the amount as they are stated in the financial statements.

10. The company deals in only one Segment i.e. cement manufacturing. There is no separate reportable segment as required by AS - 17 "Segment Reporting".

11. During the year company has claimed differential excise duty refund of Rs. 39,57,402/- for the year 2013 -14 and recognized the same as revenue in the books of accounts. Presently matter regarding company''s claim for refund of differential Excise Duty is pending before the Hon''ble Supreme Court of India. In this matter revenue is recognized on the basis of Interim Order dated 13th January'' 2012 passed by the Hon''ble Supreme Court of India in case of "VVF Ltd. and Others" and similar relief granted to other companies located in NE region.

12. Out of the Subsidy Receivables amounting to Rs. 1,147.72 Lakhs, Rs. 660.48 Lakhs is related to Transport Subsidy and Central Capital Investment Subsidy claims of the company which is outstanding as receivable for more than five years. However, management of the company is treated the same as good and is of the opinion that the same will be realized in due course of time.

13. An amount of Rs. 38.11Lakhs has been deposited by the company with the revenue authorities against the disputed Entry Tax demand of earlier years. The same has been deposited ''under protest'' and is shown under ''Other Loans and Advances'' forming part of current assets.

14. Previous year''s figures have been regrouped and/ or re-arranged wherever necessary, to confirm to current year''s classification.


Mar 31, 2013

1. CORPORATE INFORMATION

Barak Valley Cements Limited (the company) is a public limited company incorporated under the provisions of the Companies Act, 1956. The shares of the company are listed on National Stock Exchange and Bombay Stock Exchange of India. The manufacturing unit of the company is located at Badarpurghat, Distt. Karimganj, Assam. The company is engaged in the manufacturing and selling of various brands of Cement primarily in north eastern states.

(2) Capital Commitments

The estimated amount of Contracts remaining to be executed on Capital Account and other capital commitment not provided for amounts to Rs. 170.24 Lakhs (Previous Year: Rs.153.13 Lakhs)

(3) Contingent liabilities not provided for:

(a) Bank Guarantee issued by Banks Nil (Previous Year - Nil)

(b) Corporate Guarantee''s given to Financial Institutions/ Banks on behalf of wholly owned subsidiaries: Rs. 2,948.72 Lakhs (Previous Year - Rs. 6,087.43 Lakhs)

(c) Claims against the company not acknowledged as debts: Disputed demands of Income -Tax / Entry- Tax matters pending before the Appellate Authorities: Rs.1,028.76 lakhs (Previous Year - Rs. 906.20 lakhs)

(4) Fixed Deposit Receipts pledged with the banks / Others : Rs. 35.25 Lakhs (Previous Year : Rs. 42.25 Lakhs)

(5) There are no Micro, Small and Medium enterprises, as defined in the Micro, Small and Medium Enterprises Development Act, 2006 to whom the company owes dues on account of principal amount together with interest and accordingly no additional disclosure have been made. The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of the information available with the company.

(6) Employee Defined Benefits:

(a) Defined Contribution Plans

The Company has recognized an expense of Rs.16,22,657/-(Previous year Rs 15,83,940/-) towards the defined contribu- tion plans.

(b) Defined Benefit Plans - As per Actuarial Valuation as at 31st March''2013

(7) In pursuance of AS -28 "Impairment of Assets" issued by ICAI, the company reviewed its carrying cost of assets with value in use on the basis of future earnings and on such review, management is of the view that in the current financial year impairment of assets is not considered necessary.

(8) In the opinion of the management and to the best of their knowledge and belief the value on realization of loans, advances and other current assets in the ordinary course of business will not be less than the amount as they are stated in the financial statements.

(9) The company deals in only one Segment i.e. cement manufacturing. There is no separate reportable segment as required by AS - 17 "Segment Reporting".

(10) Previous year''s figures have been regrouped and/ or re-arranged wherever necessary, to confirm to current year''s Classifi- cation.


Mar 31, 2012

1. CORPORATE INFORMATION

Barak Valley Cements Limited (the company) is a public limited company incorporated under the provisions of the Companies Act, 1956. Its shares are listed on National Stock Exchange and Bombay Stock Exchange of India. The company is engaged in the manufacturing and selling of various brands of Cement primarily in North Eastern States.

BASIS OF PREPARATION

The financial statements of the company have been prepared in accordance with the generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention basis.

(2) Capital Commitments

The estimated amount of Contracts remaining to be executed on Capital Account and other capital commitment not provided for amounts to Rs. 153.13 Lakhs (Previous year: Rs.1,144.82 Lakhs)

(3) Contingent liabilities not provided for :

(a) Bank Guarantee issued by Banks : Nil (Previous Year - Nil)

(b) Corporate Guarantees given to Financial Institutions/ Banks on behalf of wholly owned subsidiaries: Rs. 6,087.43 Lakhs (Previous year - 4,440.20 Lakhs)

(c) Claims against the company not acknowledged as debts: Disputed demands of Income -Tax; pending before the Appellate Authorities: Rs.906.20 lakhs for Assessment Year 2005-06, 2006-07 and 2009-10 (Previous year - Rs. 624.57 lakhs)

(4) Fixed Deposit Receipts pledged with the banks / Others : Rs. 42.25 Lakhs (Previous Year : 32.25 Lakhs)

(5) There are no Micro, Small and Medium enterprises, as defined in the Micro, Small and Medium Enterprises Development Act, 2006 to whom the company owes dues on account of principal amount together with interest and accordingly no additional disclosure have been made. The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of the information available with the company.

(6) Employee Defined Benefits:

(a) Defined Contribution Plans: The Company has recognized an expense of Rs.15,83,940/- (Previous year Rs 14,49,227/-) towards the defined contribution plans.

(7) Disclosure in respect of Related Parties:

Pursuant to Accounting Standard - 18 " Related Party Disclosures" issued by ICAI, following are the related parties, description of their relationships and transactions carried out with them during the year in the ordinary course of business:

Subsidiary Companies

Meghalaya Minerals & Mines Ltd. , Badarpur Energy Pvt. Ltd. , Cement International Ltd., Goombira Tea Co. Ltd., Chargola Tea Co. Pvt. Ltd., Singlacherra Tea Co. Pvt. Ltd., Valley Strong Cements (Assam) Ltd.

Associates

M/s. Nefa Udyog, Meghalaya Cements Ltd., Balaji Udyog Ltd. North East Power & Infra Ltd., Valley Strong Cements Ltd.

Key Management Personnal and their relatives

Kamakhya Chamaria (Vice Chairman & Managing Director), Bijay Kumar Garodia (Chairman & Whole Time Director), Santosh Kumar Bajaj (Whole Time Director), J.L. Anchalia (Chief Financial Officer) , Prahlad Rai Chamaria (Non -Ex. Director), Mahendra Kumar Agarwal (Vice Chairman)

(8) In pursuance of AS -28 "Impairment of Assets" issued by ICAI, the company reviewed its carrying cost of assets with value in use on the basis of future earnings and on such review, management is of the view that in the current financial year impairment of assets is not considered necessary.

(9) In the opinion of the management and to the best of their knowledge and belief the value on realization of loans, advances and other current assets in the ordinary course of business will not be less than the amount as they are stated in the financial statements.

(10) The company deals in only one Segment i.e. cement manufacturing. There is no separate reportable segment as required by AS - 17 "Segment Reporting".

(11) Previous year figures :|Till the year ended 31st March, 2011, the company was using pre -revised Schedule -VI to the Companies Act, 1956, for preparation and presentation of its financial statements. During the year ended 31st March, 2012, the revised Schedule -VI notified under the Companies Act, 1956, has become applicable to the company. The company has reclassified previous year figures to confirm to this year's classification.


Mar 31, 2011

(1) Capital Commitments

The estimated amount of Contracts remaining to be executed on Capital Account and other capital commitment not provided for amounts to Rs. 1,144.82 Lakhs (Previous year: Rs.101.19 Lakhs)

(2) Contingent liabilities not provided for:

(a) Bank Guarantee issued by Banks Nil (Previous Year - Nil)

(b) Corporate Guarantee's given to Financial Institutions/ Banks on behalf of wholly owned subsidiaries: Rs. 4,440.20 Lakhs (Previous year - 3,800 Lakhs)

(c) Claims against the Company not acknowledged as debts: Disputed demands of Income -Tax; pending before the Appellate Tribunal: Rs.624.57 lakhs for Assessment Year 2005-06 and 2006-07 (Previous year - Rs. 556.87 lakhs)

(3) Fixed Deposit Receipts pledged with the banks / Others : Rs. 32.25 Lakhs (Previous Year : 17.07 Lakhs)

(4) Additional information in pursuant to the provision or paragraphs 3 & 4 of part II of schedule VI to the Companies Act, 1956 to the extent applicable to the Company:

(f) C.I.F. Value of Import : Nil (Previous Year - Nil)

(g) Earning in Foreign Exchange : Nil (Previous Year – Nil) (h) Expenditure in Foreign Currency : Nil (Previous Year - 1,47,378)

(Foreign Travelling expenses)

(5) During the year an amount of Rs. 17,50,593/- was paid to selling agents of the company as Sales Commission. (Previous Year Rs. 16,98,910/- )

(7) Remuneration paid to Director’s during the year: Rs. 78,00,000/- (Previous Year: Rs. 67,00,000/-)

(8) GOVT. SUBSIDIES

Insurance and interest subsidy amounting to Rs. 13,96,850/- (as at 31.03.2010 Rs. 12,96,688/-) and 95,21,014/- (as at 31.03.2010 Rs. 85,70,808/-) respectively has been adjusted from related overheads and shown as receivable forming part of loans and advances. Power subsidy amounting to Rs. 10,00,000/- ( as at 31.03.2010 : Rs. 10,00,000/-) has also been adjusted from Power & Fuel Expenses. During the year Excise Duty amounting to Rs. 5,22,22,738/- (previous year : 5,31,96,366/-) has been refunded back by Govt. of India.

(9) The Company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and, hence disclosure relating to amounts unpaid at the year end, interest paid/ payable under this Act has not been given.

(10) Employee Defined Benefits:

(a) Defined Contribution Plans

The Company has recognized an expense of Rs.14,49,227/- (Previous year Rs 12,06,375/-) towards the defined contribution plans.

(11) Disclosure in respect of Related Parties:

Pursuant to Accounting Standard - 18 " Related Party Disclosures" issued by ICAI, following are the related parties, description of their relationships and transactions carried out with them during the year in the ordinary course of business:

Subsidiary Companies Meghalaya Minerals & Mines Ltd. Badarpur Energy Pvt. Ltd. Cement International Ltd. Goombira Tea Co.Pvt. Ltd. Chargola Tea Co. Pvt. Ltd. Singlacherra Tea Co. Pvt. Ltd. Valley Strong Cements (Assam) Ltd.

Associates M/s. Nefa Udyog M/s. Meghalaya Cements Ltd. M/s. Balaji Udyog Ltd. North East Power & Infra Ltd. Valley Strong Cements Ltd.

Key Management Personnel Kamakhya Chamaria (Vice Chairman & and their relates Managing Director) Bijay Kumar Garodia (Chairman & Whole Time Director) Santosh Kumar Bajaj (Whole Time Director) J.L. Anchalia (Chief Financial Officer) Prahlad Rai Chamaria (Non-Ex. Director) Mahendra Kumar Agarwal (Vice Chairman) Jagdish Prasad Shah.

(12) Earnings Per Share:

The following table reconciles the numerators and denominators used to calculate Basic and Diluted Earning per Share for the year ended 31st March 2011 and the year ended 31st March 2010.

(13) Balance of Sundry Debtors; Creditors and advances are subject to confirmation from respective parties.

(14) Expenditure on purchased software (ERP) and IT related expenses are written off over a period of three years.

(16) In pursuance of AS -28 "Impairment of Assets" issued by ICAI, the Company reviewed its carrying cost of assets with value in use on the basis of future earnings and on such review, management is of the view that in the current Financial Year impairment of assets is not considered necessary.

(17) Taxation

a) Current Tax:

The Company is eligible for 100% income-tax exemption under section 80-IC. The current year's provision for income-tax has been calculated on the basis of the provisions of Minimum Alternative Tax (MAT) under section 115JB and entitlement of Tax credit of MAT has been taken as per section 115JAA of the Income-Tax Act, 1961.

b) Deferred Tax:

Deferred tax liability has been recognized in respect of only those timing differences which originate during the tax holidays and are not likely to reverse during the tax holiday period to the extent income is subject to deduction during the tax holiday period as per Income Tax Act, 1961. Deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. The tax liability has been calculated at enacted future tax rates.

The tax impact for the above purpose has been arrived at by applying the enacted future tax rate for Indian companies under the Income Tax Act, 1961.

(18) In the opinion of the management, the current assets and loans and advances are having value, at least equal to the amount as they are stated in financial statements, if realised in the ordinary course of business.

(19) During the year, the Company has acquired 100% shareholding of Valley Strong Cements (Assam) Ltd., Goombira Tea Co. Pvt. Ltd., Singlacherra Tea Co. Pvt. Ltd. and Chargola Tea Co. Pvt. Ltd. , consequent to which these companies has become wholly owned subsidiaries of the company.

(20) The company deals in only one Segment i.e. cement manufacturing. There is no separate reportable segment as required by AS - 17 "Segment Reporting".

(21) Prior -period adjustments includes Entry - tax of previous accounting period and reversal of excess selling expenses provision made during earlier years.

(22) Previous year figures have been regrouped/ restated wherever necessary, to confirm to current year's classification.

(23) Schedule "1" to "21" forms an integral parts of the financial statements.

(24) Figures have been rounded off to the nearest rupee.


Mar 31, 2010

(1) Capital Commitments

The estimated amount of Contracts remaining to be executed on Capital Account and not provided for amounts to Rs. 101.19 Lakhs (Previous year: Rs. 51.53 Lakhs)

(2) Contingent liabilities not provided for:

(a) Bank Guarantee issued by Banks Mil (Previous Year - Rs. 2,25,000)

(b) Corporate Guarantees given to Financial Institutions/ Banks on beholf of wholly owned subsidiaries: Rs. 3,800 Lakhs (Previous year -3,100 Lakhs)

(c) Claims against the company not acknowledged as debts: Disputed demands of Income-Tax; pending before the Appellate Tribunal -. Rs.556.87 lakhs for Assessment Year 2005-06 and 2006-07 (Previous year- Rs. 282.55 lakhs)

(3) Additional information in pursuant to the provision or paragraphs 3 & 4 of port II of schedule VI to the Companies Act, 1956 to (he extent applicable to the company:

(4) During the year an amount of Rs. 16,98,910/- was paid to selling agents of the company as Sales Commission. (Previous Year Rs. 18,22,958/-)

(5) Remuneration paid to Directors during the year: Rs. 67,00,000/- (Previous Year: Rs. 47,00,000/-)

(6) GOVT. SUBSIDIES

Insurance and interest subsidy amounting to Rs. 12,96,688/- (as at 31.03.2009 Rs. 15,13,845/-) and 85,70,808/- (as at 31.03.2009 Rs. 59,26,031/-(respectively has been adjusted from related overheads and shown as receivable forming part of foans and advances. During the year Excise Duty amounting 1o Rs. 5,31,96,366/- (previous yeor : 5,58,10,177/-) has been refunded back by Govt, of India.

(7) The Company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and, hence disclosure relating to amounts unpaid at the year end, interest paid/ payable under this Act has not been given.

(8) Employee Defined Benefits:

(a) Defined Contribution Plans

The Company has recognized an expense of Rs. 12,06,375/- (Previous year Rs 10,43,664/-) towards the defined contribution plans.

(9) Disclosure in respect of Related Parties;

Pursuant to Accounting Standard - 18 " Related Party Disclosures" issued by ICAI, following are the related parties, description of their relationships and transactions carried out with them during the year in the ordinary course of business:

Subsidiary Companies (with effect from 31.03.2006)

Meghalaya Minerals & Mines Lid. Badarpur Energy. Pvt. Ltd. Cement International Ltd. Goombira Tea Co. Pvt. Ltd. Chargola Tea Co. Pvt. Ltd. Singlacherra Tea Co. Pvt. Ltd.

Associates

M/s. Nefa Udyog

M/s. Meghalaya Cements Ltd.

M/s, Balaji Udyog Ltd.

North East Power & Infra Ltd.

Valley Strong Cements Lid.

Valley Strong Cements (Assam) Ltd.

Key Management Personnel and their relatives

Kamakhya Chamaria (Vice Chairman & Managing Director) Bijay Kumar Garodia (Chairman & Whole Time Director) Santosh Kumar Bajaj (Whole Time Director) J.L. Anchalia (Chief Financial Officer) Prahlad Rai Chamaria (Non-Ex. Director) Mahenctr^^KQJTtarAgarwol (Vice Chairman)

(10) Balance of Sundry Debtors; Creditors and advances are subject to confirmation from respective parties.

(11) In the opinion of the management the current assets and loans and advances are having value, at least equal to the amount as they are stated in financial statements, if realised in the ordinary course of business.

(12) Expenditure on purchased software (ERP) and IT rjetoTed^xpeljfiBs are written off over a period of three years.

(13) In pursuance of AS -28 "Impairment of Assets" issued by ICAI, (he company reviewed its carrying cost of assets with value in use on the basis of future earnings and on such review, management is of the view that in the current financial year impairment of assets is not considered necessary.

(14) Taxation

a) Current Tax:

The company is eligible for 100% income-tax exemption under section 80-IC. The current years provision for income-tax has been calculated on the basis of the provisions of Minimum Alternative Tax (MAT) under section 115JB and entitlement of Tax credit of MAT has been taken as per section 115JAA of the Income-Tax Act, 1961.

b) Deferred Tax:

Deferred tax liability has been recognized in respect of onSy those timing differences which originate during the tax holidays and are not likely to reverse during the tax holiday period to the extent income is subject to deduction during the tax holiday period as per Income Tax Act, 1961. Deferred lax assets are recognised only to the extent there is reasonable certainty of realization in future The tax liability has been calculated al enacted future tax rates.

The tax import for the above purpose hos been arrived a) by applying the enacted future tax rate for Indian companies under the Income Tax Act, 1961.

c) Fringe Benefit Tax

Provision for Fringe Benefit tax has been separately shown in the profit & ioss account in accordance with the guidance note issued by the 1CAI.

(15) The company deals in only one Segment i.e. cement manufacturing. There is no separate reportable segment as required by AS - 17 "Segment Reporting".

(16) Previous year figures have been regrouped/ restated wherever necessary.

(17) Figures have been rounded off to the nearest rupee.

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