Mar 31, 2015
1. Reconciliation of the number of shares and amount
outstanding at the beginning and at the end of the reporting period:
2. 55,07,249 Equity Shares of Rs. 10/- each fully paid-up,issued as
Bonus Shares on Capitalisation of Capital redemption reserve,
Securities premium, General Reserve. Out of which total 5187249 fully
paid up shares were alloted as bonus shares in FY 2011-12.
3. 21,75,000 Equity Shares of Rs.10/- each alloted otherwise than on
payment of cash to the Shareholders of erstwhile M/s.Tikmani Steel Co.
Ltd & M/s. A.A. Alloys Ltd.as per the Scheme of Amalgamation approved
by the Karnataka High Court.
4. Company has alloted 2,000,000 warrants during March 2008 with an
option to acquire 1 equity share at the option of warrant holder at a
price of Rs. 100.20 per equity share by way of preferential issue as
per SEBI Guidelines. The warrant-holders have paid 10% of the total
issue price before the allotment in terms of SEBI Guidelines which ls
liable to be forfeited if option to apply for equity shares is not
exercised on or before due date. The option attached with Warrants may
be exercised within a period of 18 months from the date of allotment,
i.e., 11th March, 2008, Since Wanant holders have not exercised the
option, the Warrants have been forfeited during FY 2009-10.
5. Related Party Disclosure
Related party disclosures have been made in accordance with the
accounting Standards on related party Disclosure (AS 18) issued by The
Institute of Chartered Accountants of India.
A) Following are the name of related parties with whom the transactions
were carried out by the company:
Name of the Related Parties Relationship
Benaka Sponge Iron Private Limited Subsidiary Company
Bhuwalka Steel Industries FZC Parties where Control Exists
Balchand Suresh Kumar Parties where Control Exists
Bhuwalka Jewellers Limited Parties where Control Exists
Bhuwalka Metal Industries Private Limited Parties where Control Exists
Shri Durga Trade Links Private Limited Parties where Control Exists
Nava Karnataka Steels Private Limited Parties where Control Exists
Mahesh Sponge Iron and Power Limited Parties where Control Exists
Suresh Kumar Bhuwalka Key Management Personnel-
Director
Ajay Kumar Bhuwalka Key Management Personnel-
Managing Director
Ankit Bhuwalka Key Management Personnel-
Director
6. Accounting Standard 19- Leases
Accounting Standard 19 is applicable only in the case of lease
transactions entered into on or after 1st April; 2001 .The Company has
taken office & residential properties for its employees under
cancelable operating lease agreement after 1st April, 2001. The company
intends to renew the agreements in the normal course of its business.
These properties cannot be subleased to any other person.
Total lease rentals recognized in the Profit & Loss Account for the
year with respect to the above is Rs. 57.45 Lacs (Previous half year
Rs. 28.12Lacs).
7. Accounting standard 20- Earning Per Share
Basic earnings per share has been calculated by dividing profit for the
year attributable to equity share holders by the weighted average
number of equity shares outstanding during the year. The basic earnings
per share and diluted earnings per share are the same as there is no
change in capital structure in the company.
8. TAXATION
During the year company has not made provision for tax in accordance
with Income Tax Act, 1961.
The deferred tax Asset is recognised, subject to the consideration of
prudence, on timing differences, being the difference between taxable
incomes and accounting income that originate in one accounting period
and are capable of reversal in one or more subsequent periods. The
deferred tax is accounted for, using the tax rates and laws that have
been substantively enacted as of the balance sheet date. Deferred tax
assets are recognized on unabsorbed depreciation and carry forward of
losses as there is virtual certainty that such deferred tax asset can
be realized against future taxable profits.
The Company has provided deferred tax asset amounting to
Rs.9,31,72,740/-(Previous year deferred tax liability has reversed for
Rs. 5,96,05,139/-) on account of timing difference. Refer Note 21 for
computation of deferred tax liability.
9. Accounting Standard 26- Intangible Assets
"Accounting Standard 26 - Intangible assets" requires an enterprise to
recognize an intangible asset if future economic benefits are expected
to arise from it. It also requires that such an asset should be stated
after providing depreciation / amortization over the useful life of the
asset. Presently, the reporting enterprise does not own any intangible
assets.
10. Accounting Standard 28- Impairment of Assets
The Company has identified that there is no material impairment of
assets and as such no provision is required as per AS-28 issued by the
ICAI.
11. Accounting standard 29- Contingent Liabilities & Contingent assets
In the opinion of the management, no provision is required against
contingent liabilities referred in Note '23'.
12. Sale of raw material has been regrouped under Sales and Other
Operational Income in Current Financial year as well as for previous
year.
13. Sundry Creditors under Current Liabilities in Note '5' include Rs.
Nil (Rs.Nil) due to Small Scale undertakings.
This amount has been determined to the extent such parties have been
identified from available information.
14. Other Disclosures
i) The financial statements of the company have been prepared in
accordance with Generally Accepted Accounting Principles in India to
comply with the Accounting Standard specified under section 133 of the
Companies Act 2013. The financial statement have been prepared on
accrual basis under the historical cost convention except in case of
Finance Cost including Exorbitant charges/penal charges/ penal interest
to the extent of Rs. 42,24,11,280/- including accrued interest is
disputed on account of unilateral withdrawal of CDR Package by the
Banks.
Further the company has approached Debt Recovery Tribunal for resolving
above dispute by filing application on 18.02.2015 Respondents Canara
Bank and IDBI Bank And on 16.02.2015 Respondent Indian Overseas Bank.
The matter is still pending on 31.03.2015
ii) The Banks have served Notice under section 13(2) of the SARFAESI
Act by Canara Bank on 02.12.2014 IDBI Bank on 21.11.2014 And IOB on
10.05.2014. In view of this company filed an application before Debt
Recovery Tribunal on 18.02.2015 Respondent Canara Bank and IDBI Bank
And on 16.02.2015 Respondent Indian Overseas Bank to resolve the said
issue. The matter is still pending on 31.03.2015. The company has
defaulted in repayment of Due of Rs.220.75Crores to the Banks mentioned
above. The matter is still pending on 31.03.2015
15. Balance of Sundry Debtors, Sundry Creditors and Bank Balances are
subject to confirmation by the respective parties.
16. The previous year's figures are regrouped/re-arranged wherever
found necessary
PREVIOUS YEAR'S FIGURES ARE SHOWN IN THE BRACKETS
Mar 31, 2014
01. Contingent Liabilities not provided for:- Rs. in lakhs
Particulars FY 2013-14 FY 2012-13
I) Letter of Credits/ Bank Guarantees 129.86 157.59
II) Corporate Guarantees given to Banks
and Financial Institutions on behalf of
Group Companies(Liabilities as on 31.03.2014): 4339.96* 4616.11
III) Other statutory liabilities disputed
by the company : 918.81 903.90
IV) Claims against the Company not
Acknowledged as debt : 34.61 34.61
02. Sale of raw material has been regrouped under Sales and Other
Operational Income in Current Financial year as well as for previous
year.
03. Sundry Creditors under Current Liabilities in Note ''5'' include Rs.
Nil (Rs.Nil) due to Small Scale undertakings. This amount has been
determined to the extent such parties have been identified from
available information.
04. Other Disclosures
The Company has prepared the annual accounts as per revised schedule VI
of Companies Act 1956. Last year figures have been regrouped
accordingly.
05. Additional information pursuant to paragraph 3 and 4 of the Part II
of Schedule VI of the Companies Act, 1956.
06. The previous year''s figures are regrouped/re-arranged wherever
found necessary.
Sep 30, 2013
1. Sundry debtors includes Rs. 14,37,328/-(Rs. 92,43,432 /-) due from
the companies under the same management within the meaning of
sub-section (1 -B) of section 370 of the Companies Act. The particulars
of the same are furnished hereunder:
2. Sale of raw material has been regrouped under Sales and Other
Operational Income in Current Financial year as well as for previous
year.
3. Sundry Creditors under Current Liabilities in Note ''5'' include Rs.
Nil (Rs. Nil) due to Small Scale undertakings. This amount has been
determined to the extent such parties have been identified from
available information.
4. Other Disclosures
The Company has prepared the annual accounts as per revised schedule VI
of Companies Act 1956. Last year figures have been regrouped
accordingly.
5. The previous year''s figures are regrouped/re-arranged wherever
found necessary.
NOTE: PREVIOUS YEAR''S FIGURES ARE SHOWN IN THE BRACKETS
Mar 31, 2012
I) 55,07,249 Equity Shares of Rs. 10/- each fully paid-up,issued as
Bonus Shares on Capitalisation of Capital redemption reserve,
Securities premium, General Reserve. Out of which total 5187249 fully
paid up shares were alloted as bonus shares in FY 2011-12.
ii) 21,75,000 Equity Shares of Rs. 10/-each alloted otherwise than on
payment of cash to the Shareholders of erstwhile M/s. Tikmani Steel Co.
Ltd & M/s. A.A. Alloys Ltd.as per the Scheme of Amalgamation approved
by the Karnataka High Court.
iii) Company has alloted 2,000,000 warrants during March 2008 with an
option to acquire 1 equity share at the option of warrant holder at a
price of Rs. 100.20 per equity share by way of preferential issue as
per SEBI Guidelines. The warrant-holders have paid 10% of the total
issue price before the allotment in terms of SEBI Guidelines which Is
liable to be forfeited if option to apply for equity shares is not
exercised on or before due date. The option attached with Warrants may
be exercised within a period of 18 months from the date of allotment,
i.e., 11th March, 2008, Since Wanant holders have not exercised the
option, the Warrants have been forfeited during FY 2009-10.
The Company has recognised deferred tax asset on unabsorbed
depreciation to the extent of the corresponding deferred tax liability
on the difference between the book balance and the written down value
of fixed assets under Income Tax and also the Company has recognised
deferred tax asset on unabsorbed depreciation and brought forward
business losses based on the Management's estimates of future profits
considering the non-cancellable customer orders received by the
Company.
Note 1: FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH,
2012
01. Contingent Liabilities not provided for:-
Rs in |akhs
Particulars FY 2011-12 FY 2010-11
I) Letter of Credits/ Bank Guarantees 2596.72 2662.56
II) Corporate Guarantees given to
Banks and Financial Institutions
on behalf of Group Companies
(Liabilities as on 31.03.2011): 3749.86 5054.00
III) Other statutory liabilities
disputed by the company : 980.69 921.94
IV) Claims against the Company not
Acknowledged as debt: 34.61 34.61
02. Sundry debtors includes Rs. 90,88,025.34 (Rs. 1,84,98,035.34/-)
and loans.and advances includes Rs. 1,55,407.50/- (Previous year Rs.
1,80,046/-) due from the companies under the same management within the
meaning of sub-section (1-B) of section 370 of the Companies Act. The
particulars of the same are furnished hereunder:
03. Sale of raw material has been regrouped under Sales and Other
Operational Income in Current Financial year as well as for Previous
year. Total sales of raw material is Rs.55,27,38,000 /- for FV 2011-12.
(Previous Year Rs 28,55,91,792.)
04. Sundry Creditors under Current Liabilities in Note '5' include
Rs. Nil (Rs.Nil) due to Small Scale undertakings. This amount has been
determined to the extent such parties have been identified from
available information.
05. Other Disclosures
The Company has prepared the annual accounts as per revised schedule VI
of Companies Act 1956. Last year figures have been regrouped
accordingly.
06. Additional information pursuant to paragraph 3 and 4 of the Part
II of Schedule VI of the Companies Act, 1956.
Note: - * Installed capacity is as certified by the management.
** It includes total 9,682 MT on conversion for others (PY 9479.06 MT)
07. The previous year's figures are regrouped/re-arranged wherever
found necessary.
Mar 31, 2011
(Rupees in lakhs)
01. Contingent Liabilities not provided for
Particulars FY 2010-11 FY 2009-10
I) Letter of Credits/ Bank Guarantees 2662.56 1975.68
II) Corporate Guarantees given to Banks and
Financial Institutions on behalf of
Group Companies
(Liabilities as on 31.03.2011) 5054.00 1505.83
III)Other statutory liabilities disputed by 921.94 1266.11
the company
IV) Claims against the Company not 34.61 34.61
Acknowledged as debt
2. Accounted contribution to Employees' benefits contribution plan
like Provident Fund and Pension Schemes in line with respective
statutes and regulations in force on accrual basis and charged to
Profit and Loss Account of the year.
3. Accounted for gratuity, bonus and leave encashment on cash basis
instead of accrual basis as per AS 15. As no quantification of
provision liability has been done by company from approved actuary/
valuer, impact of the same on P&L is not ascertained.
xi) Borrowing cost:
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets in accordance with Accounting Standard 16 on Borrowing
Costs. A qualifying asset is one that necessarily takes substantial
period of time to get ready for intended use. All other borrowing costs
are charged to revenue.
During the year interest amounting to Rs. 142.25 Lacs (Previous year
Rs. 206.99 Lacs) has been Capitalized for Wada Unit 4.
xii) Segment Information:
In terms of Accounting Standard 17, the Company has only one reportable
segment viz. Steel. In case of geographical segment, although the
company's assets are multi-located, the same are not exposed to risks
and returns which are materially different from one another. Further,
all of them operate in the same economic environment and subject to
similar profitability margins. Hence geographical segment reporting is
not applicable.
xiii) Related Party Disclosure:
Related party disclosures have been made in accordance with the
accounting Standards on related party Disclosure (AS 18) issued by The
Institute of Chartered Accountants of India.
A) Following are the name of related parties with whom the transactions
were carried out by the company:
Name of the Related Parties Relationship
Benaka Sponge Iron Pvt Ltd. Subsidiary Company
Lootha Bhuwalka Steel Industries FZC Parties where Control Exists
Balchand Suresh Kumar Parties where Control Exists
Bhuwalka Ferrous Ltd. Parties where Control Exists
Bhuwalka Metal Industries Pvt. Ltd. Parties where Control Exists
Bhuwalka Trade Links Private Limited Parties where Control Exists
Nava Karnataka Steels Private Ltd. Parties where Control Exists
Sri Suresh Kumar Bhuwalka Key Management Personnel
- Managing Director
Ajay Bhuwalka Key Management Personnel
- Director
Ankit Bhuwalka Key Management Personnel
- Director
xiv) Accounting Standard 19 - Leases:
Accounting Standard 19 is applicable only in the case of lease
transactions entered into on or after 1st April; 2001.The Company has
taken office & residential properties for its employees under
cancelable operating lease agreement after 1st April, 2001. The company
intends to renew the agreements in the normal course of its business.
These properties cannot be sub leased to any other person.
Total lease rentals recognized in the Profit & Loss Account for the
year with respect to the above is Rs. 36.74 Lacs (Previous Year Rs.
35.65 Lacs).
xv) Accounting standard 20 - Earning Per Share:
Basic earnings per share has been calculated by dividing profit for the
year attributable to equity share holders by the weighted average
number of equity shares outstanding during the year. The basic earnings
per share and diluted earnings per share are the same as there is no
change in capital structure in the company.
xvii) TAXATION:
No Provision for current tax has been made in current year as there are
carry forward income tax losses in accordance with Income Tax Act,
1961.
The deferred tax liability is recognised, subject to the consideration
of prudence, on timing differences, being the difference between
taxable incomes and accounting income that originate in one accounting
period and are capable of reversal in one or more subsequent periods.
The deferred tax is accounted for, using the tax rates and laws that
have been substantively enacted as of the balance sheet date.
Deferred tax assets are recognized on unabsorbed depreciation and carry
forward of losses only if there is virtual certainty that such deferred
tax asset can be realised against future taxable profits.
The Company has provided incremental deferred tax liability amounting
to Rs. 187.29 Lacs (Previous year deferred tax liability Rs. 94.61
Lacs.) on account of timing difference.
xvii. Accounting Standard 26 - Intangible Assets:
"Accounting Standard 26 à Intangible assetsà requires an enterprise to
recognize an intangible asset if future economic benefits are expected
to arise from it. It also requires that such an asset should be stated
after providing depreciation / amortization over the useful life of the
asset. Presently, the reporting enterprise does not own any intangible
assets.
xviii.Accounting Standard 28 - Impairment of Assets:
The Company has identified that there is no material impairment of
assets and as such no provision is required as per AS-28 issued by the
ICAI.
xix. Accounting standard 29 - Contingent Liabilities & Contingent
assets:
In the opinion of the management, no provision is required against
contingent liabilities referred in Para 2 of Schedule Ã18'.
04. Sale of raw material has been regrouped under Sales and Other
Operational Income in Current Financial year as well as for Previous
year. Total sales of raw material is Rs. 28,55,91,792/- for FY 2010-11.
(Previous Year Rs.10,23,09,656/-).
05. Sundry Creditors under Current Liabilities in Schedule '11'
include Rs. Nil (Rs.Nil) due to Small Scale undertakings. This amount
has been determined to the extent such parties have been identified
from available information.
06. Other Disclosures:
a) The Company has disclosed the Interest Charges as net of interest
income.
b) Unsecured loans include Rs. 2603.44 Lacs (Rs. 1450.41 Lacs in
Previous Year) payable against acceptances under letter of credits.
Company has opened letter of credits against these bills and the same
have been discounted by Banks/ Financial Institutions.
c) During March, 2008, Company has allotted 2,000,000 nos. Warrants
attached with an option to acquire 1 equity share at the option of the
Warrant-holder at a price of Rs. 100.20 per equity share by way of
preferential issue as per SEBI Guidelines. The warrant-holders have
paid 10% of the total issue price before the allotment in terms of SEBI
Guidelines which is liable to be forfeited if option to apply for
equity shares is not exercised on or before due date. The option
attached with Warrant may be exercised within a period of 18 months
from the date of allotment, i.e., 11th March, 2008. Since Warrant
holders have not exercised the option, the Warrants have been forfeited
during the Year.
07. The previous year's figures are re-grouped/re-arranged wherever
found necessary.
NOTE: PREVIOUS YEAR'S FIGURES ARE SHOWN IN THE BRACKETS
Mar 31, 2010
01. Contingent Liabilities not provided for
Particulars FY 2009-10 FY 2008-09
I) Letter of Credits/ Bank Guarantees 1975.68 1893.01
II) Corporate Guarantees given to Banks
and Financial
Institutions on behalf of Group
Companies
(Liabilities as on 31.03.2010): 1505.83 877.98
III) Other statutory liabilities
disputed by the company : 1266.11 1270.97
IV) Claims against the Company not
Acknowledged as debt: 34.61 34.61
A) Following are the name of related parties with whom the transactions
were carried out by the company:
Name of the Related Parties Relationship
Benaka Sponge Iron Pvt Ltd. Subsidiary Company
Bhuwalka Steel Industries (UAE) FZE Subsidiary Company
Balchand Suresh Kumar Parties where Control Exists
Bhuwalka Ispat Ltd. Parties where Control Exists
Bhuwalka Metal Industries Pvt. Ltd. Parties where Control Exists
Bhuwalka Trade Links Private Limited Parties where Control Exists
Nava Karnataka Steels Private Ltd. Parties where Control Exists
Sri Suresh Kumar Bhuwalka Key Management Personnel-
Managing Director
xiv) Accounting Standard 19 - Leases:
Accounting Standard 19 is applicable only in the case of lease
transactions entered into on or after 15 April; 20Q1.The Company has
taken office & residential properties for its employees under
cancelable operating lease agreement after 1s April, 2001. The company
intends to renew the agreements in the normal course of its business.
These properties cannot be subleased to any other person.
Total lease rentals recognized in the Profit & Loss Account for the
year with respect to the above is Rs. 35,65,706/- (Rs. 24,62,369.
xv) Accounting standard 20- Earning Per Share:
Basic earnings per share has been calculated by dividing profit for the
year attributable to equity share holders by the weighted average
number of equity shares outstanding during the year. The company has
issued Warrants with an option attached to apply and get allotment of
equity share at a price which- is not less than fair value. Hence,
option attached to such warrant is not considered dilutive as per the
said Accounting Standard. Therefore, the basic earnings per share and
diluted earnings per share are the same :
xvi) Accounting Standard 26- Intangible Assets:
"Accounting Standard 26 - Intangible assets" requires an enterprise to
recognize an intangible asset if future economic benefits are expected
to arise from it. It also requires that such an asset should be stated
after providing depreciation / amortization over the useful life of the
asset. Presently, the reporting enter- prise does not own any
intangible assets.
xviii) Accounting Standard 28- Impairment of Assets:
The Company has identified that there is no material impairment of
assets and as such no provision is required as per AS-28 issued by the
ICAI.
xix) Accounting standard 29- Contingent Liabilities & Contingent assets
In the opinion of the management no provision is required against
contingent liabilities referred in Para 2 of Schedule 18.
05. Profit & Loss on sale of raw-material and excess/shortage on
physical verification, if any, remain adjusted in the respective
consumption accounts.
06. Sundry Creditors under Current Liabilities in Schedule11include
Rs. NIL (Rs.16,000/-) due to Small Scale undertakings. This amount has
been determined to the extent such parties have been identified from
available information.
07. Other Disclosures:
a) Unsecured loans include Rs.145,041,843.00/- (Rs. 70,431,480/- in
Previous Year) payable against acceptances under letter of credits.
Company has opened letter of credits against these bills and the same
have been discounted by Banks/ Financial Institutions.
b) During March, 2008, Company has allotted 2,000,000 nos. Warrants
attached with an option to acquire 1 equity share at the option of the
Warrant-holder at a price of Rs. 100.20 per equity share by way of
preferential issue as per SEBI Guidelines. The warrant-holders have
paid 10% of the total issue price before the allotment in terms of SEBI
Guidelines which is liable to be forfeited if option to apply for
equity shares is not exercised on or before due date. The option
attached with Warrant may be exercised within a period of 18 months
from the date of allotment, i.e., 11th March, 2008. Since Warrant
holders have net exercised the option, the Warrants have been forfeited
during the Year."
02. Additional information pursuant to paragraph 3 and 4 of the Part
II of Schedule VI of the Companies Act, 1956.
03. The previous years figures are regrouped/re-arranged wherever
found necessary.
NOTE: PREVIOUS YEARS FIGURES ARE SHOWN IN THE BRACKETS