Mar 31, 2015
1. SHARE CAPITAL
a) Movement of Shares
There is no movement of shares outstanding at the beginning and at the end of the reporting period
b) Terms / rights attached to equity shares:
The company has only one class of equity shares having a par value of Rs.10/- per share. Each holder of equity share is entitled to one vote per share.
In the event of liquidation of the company, the holders of equity shares will be entitled to receive the assets of the company, in proportion to the number of equity shares held by the shareholders.
2. Company overview:
Chennai Ferrous Industries Limited (the company) incorporated under the Companies Act, 1956, in the year 2010, is manufacturer of Sponge Iron and allied products. The company's shares are listed on the Bombay Stock Exchange Limited and the shares are traded regularly.
3. Additional Information to the Financial Statements
(i) Contingent liability not provided for:
(a) Counter Guarantees furnished to the bank Rs.4,04,640/- (Previous year Rs.2,82,350/-)
(b) Towards outstanding Letter of Credit Nil (Previous year Nil) on account of import of raw materials.
(ii) Estimated amount of contracts remaining to be executed on capital accounts and not provided for Rs.13,59,00,000/- (Previous year Rs.13,59,00,000/- pertaining to resulting company) and for others is nil.
(iii) Claims against the Company not acknowledged as Debt Rs. Nil. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. Nil. Contingent liabilities not provided for: Nil
(iv) Employee Benefits :
a) Defined Contribution plan:
Contribution to defined contribution plan recognized as expenses for the year 2015-16 accordingly an amount of Rs.6,54,529/-(previous year Rs.5,55,442/-) is debited towards contribution to PF & ESI.
b) Defined Benefit plan:
As per the explanations given by the management of the company except for gratuity there are no other plans for the employees of the company. The present value of gratuity obligation is determined during the year based on actuarial valuation using projected unit credit method. Accordingly, provision of Rs.109715/- has been made.
(v) There are no dues to enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006, as at March 31, 2015 which is on the basis of such parties having been identified by the management and relied upon by the auditors.
(vi) Company has circularized/sought confirmation of balance letters to/from sundry debtors & advance parties / sundry creditors. In the absence of negation, the balances appearing the books are taken as confirmed.
(vii) CIF Value of Imports: Nil (Previous year: Rs. Nil)
(viii) Remittance in Foreign Currency towards Dividend Nil
(ix) Earnings in Foreign Currency Rs. Nil (Previous year Rs. Nil) Expenditure in Foreign Currency Rs. Nil (Previous year Nil)
(x) RELATED PARTY DISCLOSURES
Details of related parties including summary of transactions entered into by the Branch during the year ended 31 March 2015 are summarized below:
Names of related parties and description of relationship:
Key management personnel Mr. R Natarajan
Other Related Party Kanishk Steel Industries Limited & Gita Renewable Energy Limited
Note: Related party relationship is as identified by the Company and relied upon by the Auditors
(xi) SEGMENT INFORMATION FOR THE YEAR ENDED 31st MARCH 2015.
(a) Business Segment:
The Company operates in Single Business Segment of 'Sponge Iron'. Therefore, the Company is of the view that the disclosure requirement of Accounting Standard AS-17 issued by the Institute of Chartered Accountants of India is not applicable to the Company.
(b) The Company has not yet been successful in its efforts to appoint a Company Secretary to fulfill the requirements of Section 203 of the Companies Act, 2013.
(xii) Previous year figures:
Previous year's figures have been regrouped /reclassified wherever necessary to correspond with the current year's classification / disclosure.