Mar 31, 2018
1. CORPORATE INFORMATION
Mahamaya Steel Industry a major industry in the group is a 15 years young company, manufacturing steel structures in the shape of Angles, Beams, Joist, Channels, Rounds, Flats, Railway sleepers etc. It has high capacity structural rolling mills with full fledged supportive SMS. Mahamaya has many prestigious customers ranging from BHEL, BHPV, MAHAGENCO, CSPDCL, TNEB, GETCO, MSPDCL, MPPDCL, ONGC, RAILWAYS, RELIANCE, JINDAL etc. It is also conversion agent of SAIL, JINDAL. Mahamaya is one of the few in the country who manufactures 600 MM joist and 250 MM angles. Mahamaya has kept pace with modern time, by continuously modernizing its plant and equipment so that its product confires to specification as required by different customers. The product are inspected by world renowned inspection agencies like -BIS,TUV,DNV,BUREAU VARITAS, SGS, LLOYDS, ABS, RDSO etc. The company is a public limited company incorporated and domiciled in India and has its registered office at Raipur, Chhattisgarh. The company is listed its shares on Bombay Stock Exchange Ltd (BSE) & National Stock Exchange (NSE).
1 Other Non Current Assets, under the previous GAAP includes Security deposits and Electricity duty receivable which have been classified as financial assets-Loans and Other Financial assets respectively under the Ind AS.
2 Other Current Assets, under the previous GAAP includes Other receivable from employee and Interest accrued but not due which have been classified as Other Financial assets under the Ind AS.
3 Other Current Liabilities under the previous GAAP includes Current Maturities of Long Term Debts which have been classified as Other Financial Liabilities under the IndAS.
4 Under the IndAS, Provision for Tax/Advance Tax has been shown as Current Tax Assets/Current Tax Liabilities(Net). Under the previous GAAP, Provision for Tax and Advance Tax was shown under Other Current Liabilities and Other Current Assets respectively.
Reconciliation Notes explaining IndAS Adjustments
1 As per Ind-AS 32, a preference share that provides for mandatory redemption by the issuer for a fixed or determinable amount at a fixed or determinable future date, or gives the holder the right to require the issuer to redeem the instrument at or after a particular date fora fixed or determinable amount, is a financial liability. Such financial liability being compound financial instrument is classified into debt and equity component. Consequently, there is an impact on the Share Capital, Other Equity and Long Term Borrowings.
2 The transaction costs paid for the term loan borrowed have been amortised over the period of the loans, as the loans are required to be carried at amortized cost as per IndAS 109 "Financial Instruments". Also,borrowings include preference shares identified into debt components as per Ind-AS 109. Consequently, the Borrowings have increased by Rs. 2670.76 lakhs and Rs. 2825.58 lakhs as at 1st April 2016 and 31st March 2017 respectively.
3 Under the IndAS, the Deferred Tax is calculated on the basis of the Balance Sheet approach and not the Income approach. Consequently, the Deferred Tax Liabilities (Net) have been increased by Rs. 223.75 lakhs and Rs. 198.67 lakhs as at 1st April 2016 and 31st March 2017 respectively.
4 As per IndAS 8 "Accounting Policies, Changes in Accounting Estimates and Errors", an entity shall correct material prior period errors retrospectively in the first set of financial statements approved for issue after their discovery by restating the comparative amounts for the prior period(s) presented in which the error occurred or if the error occurred before the earliest prior period presented, restating the opening balances of assets, liabilities and equity for the earliest prior period presented. Accordingly, a prior period expense relating to period before FY 2016-17 has been restated in the Opening Balance Sheet as on 1st April 2016 Consequently, the Non Current Provisions increased and Other Equity decreased by Rs. 17.70 lakhs as on 1 st April 2016.
Reconciliation Notes explaining Ind AS Adjustments
1 In accordance with Ind AS 18 "Revenue", Revenue from Operations includes Excise Duty. Excise Duty has been presented separately as expenditure.
2 In accordance with Ind AS 19 "Employee Benefits", Acturial gains/losses on Remeasurement of Defined Benefit Plans have been classified under "Other Comprehensive Income". Accordingly, the Employee Benefit Expenses have increased by Rs. 22.41 lakhs. There is no impact on the Total Comprehensive Income.
3 The transaction costs paid for the term loans borrowed have been amortised over the period of the loans, as the loans are required to be carried at amortized cost as per Ind AS 109 "Financial Instruments". Also, finance cost includes interest charged on debt component of preference shares. Consequently, the Finance Costs for the year ended 31st March 2017 have been increased by Rs. 154.82 lakhs.
4 Under the Ind AS, significant components of plant and equipment which have different useful life are depreciated based on their specific useful lives. Consequently, the amount of Depreciation charge for the year ended 31st March 2017 has reduced by Rs. 55.80 lakhs.
5 The Electricity Duty Receivable of Rs 71.40 lakhs was deducted from Electricity expenses in the Statement of Profit and Loss for the year ended 31st March 2017. Under Ind AS it has been reclassified as Other Income. Accordingly, Other Income and Other Expenses have increased by Rs. 71.40 lakhs.
6 Under the Ind AS, the Deferred Tax is calculated on the basis of the Balance Sheet approach and not the Income approach. Consequently, the Deferred Tax Expenses for the year ended 31st March 2017 are lower by Rs. 25.08 lakhs.
18 (b) Nature of Security :
a) For Term Loan from Bank securities are new plant and machinaries inastalled or to be installed.
b) For LC/BG accounts securities are exclusive first charge by way of hypothecation of the companies entire stocks of raw materials and finished goods purchase out of lC and on all other companies present and future book debt outstanding, receivable claims, bills, contracts, securities, inverstments, goodwill, rights and assets etc. a raising out of the LC issued by bank.
c) In the case of Cash credit limit security in the form of (i) 1st pari- passu charge on all the current assets of the company . (ii) and collateral security in the form of 1st pari-passu charge on the residual value of movable and immovable fixed assets of the company.
18 (c) Personal guarantee of directors, (i) Mr. Rajesh Agrawal (ii) Mrs. Rekha Agrawal antee of Relative of the Directors : (i) Mr. Ramanand Agrawal
18 (d) a) There is no default, continuing or otherwise, as at the Balance Sheet Date, in re-payment of principal as well as interest of any of the above loan.
b) Current maturities of loan terms debts disclose under the sub-head "other financial liabilities" of head "current liabilities".
Since the entire amount of plan obligation is unfunded, therefore change in fair value of plan assets are not given. Further the entire amount of plan obligation is unfunded, therefore categories of plan assets as a percentage of the fair value of the total plan assets and company''s expected contribution to the plan assets in the next year is not given.
The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflations, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.
The expected rate of return on plan assets is determined considering several applicable factors, mainly the composition of Plan assets held, assessed risks, historical results of return on plan assets and the Company''s policy for plan assets management.
Sensitivity Analysis
Significant Actuarial Assumptions for the determination of the defined benefit obligation are discount trade, expected salary increase and employment turnover. The sensitivity analysis below, have been determined based on reasonably possible changes of the assumptions occurring at the end of the reporting period, while holding all other assumptions constant. The result of sensitivity analysis is given below:
2. CAPITAL MANAGEMENT
The Company adheres to a robust Capital Management framework which is underpinned by the following guiding principles.
a) Maintain financial strength to attain AAA ratings domestically and investment grade ratings internationally.
b) Ensure financial flexibility and diversify sources of financing and their maturities to minimize liquidity risk while meeting investment requirements.
c) Proactively manage group exposure in forex, interest and commodities to mitigate risk to earnings.
d) Leverage optimally in order to maximize shareholder returns while maintaining strength and flexibility of the Balance sheet.
This framework is adjusted based on underlying macro-economic factors affecting business environment, financial market conditions and interest rates environment.
3. FINANCIAL INSTRUMENTS
All financial instruments are initially recognized and subsequently re-measured at fair value as described below:
Fair Value measurement hierarchy:
Foreign Currency Risk:
No Exposure to foreign currency
Commodity Price Risk
Commodity price risk arises due to fluctuation in prices of raw material. The company has a risk management frame work aimed at prudently managing the risk arising from the volatility in raw material prices and freight costs.
The company''s commodity risk is managed centrally through well-established trading operations and control processes. In accordance with the risk management policy, the Company carefully caliberates the timing and the quantity of purchase
Credit Risk
Credit risk is the risk that a customer or counterparty to a financial instrument fails to perform or pay the amounts due causing financial loss to the company. Credit risk arises mainly from the outstanding receivables from customers.
The company has a prudent and conservative process for managing its credit risk arising in the course of its business activities. The credit ratings/market standing of the customers are evaluated on a regular basis.
Liquidity Risk
Liquidity risk arises from the Company''s inability to meet its cash flow commitments on time. Prudent liquidity risk management implies maintaining sufficient stock of cash and marketable securities . The Company maintains adequate cash and cash equivalents along with the need based credit limits to meet the liquidity needs.
4. EVENTS AFTER THE REPORTING PERIOD
No events after the reporting period
5. APPROVAL OF FINANCIAL STATEMENTS
The financial statements were approved for issue by the board of directors on May 28, 2018.
6. OTHER NOTES
(A) Electricity Duty exemption:
In the Financial year 2012-13 the company had applied for exemption of electricity duty in respect of electricity consumed in its SMS Plant. The company had been advised that under the Internal Policy of State of Chhattisgarh, it is entitled to get electricity duty exemption of an amount aggregating Rs.998.74 lacs. Out of this amount, an amount of Rs.45.08 lacs pertains to accounting year under review i.e. 2017-18 and the remaining amount i.e. Rs.953.66 lacs pertains to accounting year 2011-12, 2012-13, 2013-14, 2014-15, 2015-16 and 2016-17. The management is of the opinion that the same amount would be realized in the near future.
(B) During the year under review, the company has charged interest on outstanding, where the payment was in arrears. The combined effect of interest so applied to the accounts of various Debtors is Rs. 101.57 lacs, recognized as amount due for a period less than 6 months as the recording of this interest has been done during the year. out of the above amount Rs.100.16 lacs recognized by the company from its customer against which they have got of court decree.
(C) Parties'' accounts are subject to confirmation. Consequential effects adjustment, presently unascertainable, will be provided as and when confirmed.
D) Trade Receivables, Loans & Advances and Deposits include certain over due accounts. Balances in the accounts of certain debtors, loans and advances required to be confirmed / reconciled. However, in the opinion of the Board, all current assets, loans and advances would be realized in ordinary course of the business at the value as stated.
(E) In the opinion of the Board, the provision for depreciation and all known liabilities is adequate and not in excess of the amount reasonably necessary.
(F) The information required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company. There are no over dues to parties on account of principal amount and / or interest and accordingly no additional disclosures have been made.
(G) Figures of the previous year have been reworked, rearranged/regrouped and reclassified wherever considered necessary. Accordingly, the amount and other disclosures for preceding year are included as an integral part of current year''s financial statement and are to be read in relation t o the amount and other disclosures relating to current year. The figures in financial statements are rounded off to the nearest lacs rupees.
(H) Separate segment wise reporting is not called for in view of the fact that mostly the revenue of the Company is from structural manufacturing and all business activities are in India only. The operations of Gas Plant of company are mainly for captive use and the surplus have been sold to external parties amount of Rs. 147.72 lakhs; the same is not fulfilling the criteria of (Ind-AS 108 (Segment Reporting)) separate reportable segment.
(I) The management has reviewed the impairment position of the assets disclosed in the financial statement for the year; and there is no indication of impairment (Assets carry cost is less than the recoverable value) loss for the year.
(J) Unclaimed dividend of earlier years aggregating to Rs 1.99 lakhs which was deposited in separate bank account in last year has been transferred to IEPF.
(M) The figures in the financial statement have been rounded off to nearest Lakhs Rupees.
Mar 31, 2016
NOTE 1 - EMPLOYEE BENEFITS
Defined Benefit Plan :-Gratuity
The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service or part thereof in excess of 6 month and its payable on retirement / termination/ resignation. The benefit vests on the employees after completion of 5 Year of service. The gratuity liability has not been externally funded.
The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.
The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.
The expected rate of return on plan assets is determined considering several applicable factors, mainly the composition of Plan assets held, assessed risks, historical results of return on plan assets and the Company''s policy for plan assets management.
NOTE 2 RELATED PARTY DISCLOSURES
Disclosure of transactions with related parties, as required by Accounting Standard - 18 "Related Party Disclosures" has been set-out in a separate statement annexed to this schedule. Related parties as defined under Clause 3 of the Accounting Standard have been identified on the basis of representations made by Key Managerial Personnel and information available with the Company.
NOTE 3 NOTES ON ACCOUNTS
(A) Electricity Duty exemption:
In the Financial year 2012-13 the company had applied for exemption of electricity duty in respect of electricity consumed in its sMs Plant. The company had been advised that under the Internal Policy of State of Chhattisgarh, it is entitled to get electricity duty exemption of an amount aggregating Rs.882.26 lacs. Out of this amount, an amount of Rs.104.96 lacs pertains to accounting year under review i.e. 2015-16 and the remaining amount i.e. Rs.777.31 lacs pertains to accounting year 2011-12, 2012-13, 2013-14 and 2014-15. The management is of the opinion that the same amount would be realized in the near future.
(B) The exact impact of the earlier fraud(F.Y -2012-13) committed by one of the employee of the company is Rs. 114.56 lacs. The company had filed a legal suit against the employee and the same is subject to judicial proceedings. Considering the favorable position in the case as consulted with the legal advisor in the case the management has not make any provision in the books of accounts.
(C) During the year under review, the company has charged interest on outstanding, where the payment was in arrears. The combined effect of interest so applied to the accounts of various Debtors is Rs. 3.14 lacs, recognized as amount due for a period less than 6 months as the recording of this interest has been done during the year.
(D) Parties'' accounts are subject to confirmation. Consequential effects adjustment, presently unascertainable, will be provided as and when confirmed.
(E) Trade Receivables, Loans & Advances and Deposits include certain overdue accounts. Balances in the accounts of certain debtors, loans and advances required to be confirmed / reconciled. However, in the opinion of the Board, all current assets, loans and advances would be realized in ordinary course of the business at the value as stated.
(F) In the opinion of the Board, the provision for depreciation and all known liabilities is adequate and not in excess of the amount reasonably necessary.
(G) The information required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company. There are no over dues to parties on account of principal amount and / or interest and accordingly no additional disclosures have been made.
(H) Figures of the previous year have been reworked, rearranged/regrouped and reclassified wherever considered necessary. Accordingly, the amount and other disclosures for preceding year are included as an integral part of current year''s financial statement and are to be read in relation to the amount and other disclosures relating to current year. The figures in financial statements are rounded off to the nearest lacs rupees.
(I) Separate segment wise reporting is not called for in view of the fact that mostly the revenue of the Company is from structural manufacturing and all business activities are in India only. The operations of Gas Plant of company are mainly for captive use and the surplus have been sold to external parties amount of Rs. 101.78 lakhs; the same is not fulfilling the criteria of (Para 27 of AS-17 (Segment Reporting)) separate reportable segment.
(J) The management has reviewed the impairment position of the assets disclosed in the financial statement for the year; and there is no indication of impairment (Assets carry cost is less than the recoverable value) loss for the year.
(K) Unclaimed dividend of earlier years aggregating to Rs 4.61 lakhs deposited in separate bank account, an amount of Rs.2.68 lakhs which is liable to transferred to Investor Education Protection Fund(IEPF) has been duly transferred during the year . Inclusion of the said amount does not have any impact on the profitability of the company.
(L) The figures in the financial statement have been rounded off to nearest Rupees.
Mar 31, 2015
NOTE 1 : RELATED PARTY DISCLOSURES
Disclosure of transactions with related parties, as required by
Accounting Standard - 18 "Related Party Disclosures" has been set-out
in a separate statement annexed to this schedule. Related parties as
defined under Clause 3 of the Accounting Standard have been identified
on the basis of representations made by Key Managerial Personnel and
information available with the Company.
(A) Electricity Duty exemption:
During the Financial year 2012-13 the company had applied for exemption
from electricity duty in respect of electricity consumed in its SMS
Plant. The company had been advised that under the Internal Policy of
State of Chhattisgarh, it is entitled to get electricity duty exemption
of an amount aggregating Rs. 777.31 lacs. Out of this amount, an amount
of Rs. 221.62 lacs pertains to accounting year under review i.e.
2014-15 and the remaining amount i.e. Rs. 555.69 lacs pertains to
accounting year 2011-12, 2012-13 and 2013-14. The management is of the
opinion that the same amount would be realized in the near future.
(B) The exact impact of the earlier fraud(F.Y -2012-13) committed by
one of the employee of the company is Rs 114.51 lacs. The company had
filed a legal suit against the employee and the same is subject to
judicial proceedings. Considering the favorable position in the case as
consulted with the legal advisor in the case the management has not
make any provision in the books of accounts.
(C) During the year under review, the company has charged interest on
outstanding, where the payment was in arrears. The combined effect of
interest so applied to the accounts of various Debtors is Rs. 31.23
lacs, recognized as amount due for a period less than 6 months as the
recording of this interest has been done during the year.
(D) Parties' accounts are subject to confirmation. Consequential
effects adjustment, presently unascertainable, will be provided as and
when confirmed.
(E) Trade Receivables, Loans & Advances and Deposits include certain
over due accounts. Balances in the accounts of certain debtors, loans
and advances required to be confirmed / reconciled. However, in the
opinion of the Board, all current assets, loans and advances would be
realized in ordinary course of the business at the value as stated.
(F) In the opinion of the Board, the provision for depreciation and all
known liabilities is adequate and not in excess of the amount
reasonably necessary.
(G) The information required to be disclosed under the Micro, Small and
Medium Enterprises Development Act, 2006 has been determined to the
extent such parties have been identified on the basis of information
available with the Company. There are no over dues to parties on
account of principal amount and / or interest and accordingly no
additional disclosures have been made.
(H) Figures of the previous year have been reworked,
rearranged/regrouped and reclassified wherever considered necessary.
Accordingly, the amount and other disclosures for preceding year are
included as an integral part of current year's financial statement and
are to be read in relation to the amount and other disclosures relating
to current year. The figures in financial statements are rounded off to
the nearest lacs rupees.
(I) Separate segment wise reporting is not called for in view of the
fact that mostly the revenue of the Company is from structural
manufacturing and all business activities are in India only. The
operations of Gas Plant are mainly for captive use and the surplus have
been sold to external parties amount of Rs. 75.93 lakhs; the same is
not fulfilling the criteria of (Para 27 of AS-17 (Segment Reporting))
separate reportable segment.
(J) The management has reviewed the impairment position of the assets
disclosed in the financial statement for the year; and there is no
indication of impairment (Assets carry cost is less than the
recoverable value) loss for the year.
(K) Unclaimed dividend of earlier years aggregating to Rs. 7.29 lakhs
deposited in separate bank account, an amount of Rs. 1.69 lakhs which
is liable to transfered to Investor Education Protection Fund(IEPF) has
been duly transfered during the year . Inclusion of the said amount
does not have any impact on the profitability of the company.
(L) The figures in the financial statement have been rounded off to
nearest Rupees.
(M) During the year the company has adopted actuarial valuation for
making provision for gratuity in respect of its liability towards
employees retirement benefits.
(N) During the year the company has adopted actuarial valuation for
making provision for gratuity in respect of its liability towards
employees retirement benefits.
Mar 31, 2014
1. CONINGENT LIABILITY
As at 31st As at 31st
Particulars March, 2014 March,2013
( Rs in Lacs) ( Rs in Lacs)
Income Tax Demand* 2,132.04 134.70
Sales Tax Demands under apecaf 4. 98 4.98
Excise Duty liabilities under
appeal & adjudlralloh; 219.73 168.86
Estimated amount of contracts
remaing to be execued of capital etc. 10.06 93.97
Outstanding Bank Guarantees 202.67 136.02
2. During heyurufflfar leview. htoOire tit eyirtinwiitA wem conduded Fry
Ihe firriuGiSl yrai ZM5-Q6 Ii>i011-12aiid IhA aMte denia/il o r! P.1 J?
£M Iks fcr rh$ sad year; by I he Inwms Ten Pepertment nenren apcmlmn
earned dlt by Ihc Income Tap: Dcpnrirrc/il. The ccmpnnr/ had fied an
aapoo bcAarc Ihc Ccnvnisdicnar uf liicciha Tax (APiiealil- Raipur dunns
Ilia year under review has been iiaoe in ihe books cFactiiura In res p
dnrrairl rased agnlnsl 1he CDmanry ns Ihe ennyanny : hopnIU In- go:
cerviDhile rtijed In Ihc aapcllnlc praueed nys Tiurufou. Iliedeinauil
has radieu as uantirpeiiLliabilk
3. RELATED PARTY DlSOLOSURES
Dtiktosune of Inansactione wdth lilaled parlies, as required by
Accounting 51arxlard -15 'Related Party Disclosures' has bfrsn eel-out
n a separate itttenienl annexed to ttlb schedule. Related part be. as
defined under Clause 3 of the Accounting Standard have been identified
on 1he bas s of iep«s#nlalions made by Key Managerial Personnel and
information available with the Company.
A) Name of the deleted parly and iialuxe or relationship where
ooiiteol exists:
Nature of Relationship Name of Related Party
A. Associate Concems 1 Raipur Ferro Alloyd Limimited
( under merger with another Company)
2, Rajesh Rc-rollers Limited
(under merger with another Company)
3. Devi iron and Power Private Limited
4. Mahamaya Charitable Fduhdaion
9 Key managerial persons 1, Shp Remangrte Agrar^gf
2. Shri Rajesh Agawal
C Relative of Key Mangerial Persons 1. Rajesh Agrawal HUP
2. Shri Aland Agrawal
3. Smt, Rekha Agrwel
4. Smt, Asha Dev Agrawafl
D. Enterpirse over which Key Management and their reoatives exercise
significant influence with whom transaction have taken place durng the
year
1. Ahhiyhrtk Steel Industries Limited
2. Shree Shyani Sponge power Limited
3. Antidksh Commerce Private Limited
4. CaJlidura Traders PrivateLimited
5. klaK Vision Mum Services Private Ltd
6. EscdiI Traders Private Limited
7. Adepl IT StilUtflhS ((P)Ltd)
8. Timpsii Steel Traders
{Prep. Mahamaya Miires (P)Ltd)
9. JSR Networ Private Limited
4. Electricity Duly exemption:
During the Financial year 2C12-13 the company had applied for exemption
from electricity duly ih rdSpcct Of electricity Consumed in its SMS
Plant. The company had Dfrert athn-Stid lhal under the lndu$thal Policy
of Slate af Chhatlisyam It is enmlert ra gel electricity duty
exemption.The company has so far recorded 7 555.69 lacs tovrards
electricity duty receivable. Out pf thlsemnum.an amounlof f 254.35 lacs
pertains tn accouoimg year under rwiew i.o, 2013-14 and the remaining
amount i.e, ?$01 ,34 lacs porlains to accounting year 2p11-til15&79
faesjand 3642-13(141,55 lacs) 6s In earlier years during the year uider
review also entire amount of ¥ 254.36 lacs pertain ng to financial
year 13-14 has been accounted forasredncliori from expenses
5. Fraud:
Afterend oftheiinancia1year20f2-13, the management had came to know
that during 2£iOS to 2C13 one of the employee working in Accounts
Department oF the Company, had committed fraud by fabricated tuns end
Good Receipt Mote In respect of Stores aggregating Rs 114.51 tacs. The
company has lodged first information report wilh Police Department. The
company is hopeful for recovery of the amount. In vew of whucn the
management has decided to treat this 114.51 : acs as amount
reccve:able from the sa id person. C tiring the year under nev.ew the
expenses so booked in earlier years have been reversed anc
corresponding amount has been rdloclcd us receivables.
6. During the year under review, line company has changed interest on
all culstand ng. where the payrncrit was hi arrears. The combined
effect or interest se applied Lo ihe aceounls of various Debtors ist 62
33 lacs, recognised asamovntdue Fora ported less than 5 months as tlie
recording of this interest has been done at the fag end of the year.
7. Parties' accounts are subject 10 confirmation Consequential effects
adjustment, presently u nascertainahle, will he provided as a nd when
crmfimied
8.) Trade Race vables, Loans £ Advances and Deposits include certain
over due accounts. Balances. n the accounts at cerla' n debtors, loans
and adva nces req uired to be con'inned reconciled. I lowevcr, In the
opinion of the Board, all current assets, loans and advances would be
realized in ordinary course of die business at the value as stated.
9. In me opinior of the Board, trie provision tor depreciation a nd all
known liabil ties is adequate and nol in excess of the amount reasonably
necessary
10. The- information required to bo disclosed under the Micro, Small
and Medium Enterprises DevekipmentAct, 2006 h-itsbeeri determined to the
extent such parties havebeer identified on the basis of Infann&tton
(roaltabtownh the Company, There am no ever dues to parties on account
of principal amount ar.dVor inierest and accordingly no acditional
disclosures have been made.
11. Figures at Ihe previous year have been reworked,
rearrangad.^egrouped and reclassified whoever considered necessary,
Accordingly, the amount and other disclosures for preoed ng year are
included as ail imegra' pari of current year's financia I slatament and
are to be read in relation Ca tha amount and other disclosures relating
ta current year. Tha Fgures in financial statomcnlsarc rounded offto the
nearest lacs rupees,
12. Sepo rate segment wise repartiny is net coi ed for in view oi ihe
fad that entire revenue of the Company is from s1rudu:al juianufactucng
and a I business activities are in India only. The operations of Gas
Plant and SMS are mainly for captive use barring insignificant gross T
1361.53lacs from sale of Blooms,' Billets to outsde pal es.
13. Unclaimed dividend of earlier years- agg regaling to 7 3.9$ lakhs
rtepc-sded In separate ba nk account, has been accounted for in Hie
books of account of Ihe ctjrre.nt year.. for befler understanding of
financial statement. Inclusion nfthesaid amount does net have any impact
on the prtffilabil ity of the company.
14. The figures in Ihe financia' statement haw beer rounded off to nca
rest Rupees.
Mar 31, 2013
NOTE : CONTING E NT LIABILITY
As at 31 As at 31
Particular March,2013 March, 2012
(? In Lacs) (Rs. In Lacs)
Income Tax Demand 134.70
Sales Tax Demands under appeal 4.98 4.98
Excise Duty liabilities under
appeal &. adjudication 168.86 38.21
Estimated amount ol contracts
remaining to be execued on capital ace. 93 97 21000
Oul sta ndi ng Ban k Guarantees 136.02 65.09
NOTE 1 DELATED PARTY DISCLOSURES
Disclosure of transactions with related parties, as required by
Accounting Standard - IB "Related Parly Disclosures'' has been set-out
in a separate statement annexed to tfiis schedule. Relaled parties as
defined under Clause 3 ol trie Accounting Standard have been identified
on the basis of representations made by
Key Managerial Personnel and inlormation available with the Company.
NOTE 2: NOTES ON ACCOUNTS
(A) Search operations by Exc ise Depa rtroe it:
During the financial year, on 13'''' July 2012, search operations were
conducted by the Central Excise Department, excess inventory ol 994,06
MT of finished goods and 291.12 MT of raw material of do mbi ned value
of 7 4&6 .69 lacs was noted. th e same has been duly accepted in Ihe
books ol accou nls along with s hortage ol raw material ol SMS Division
to Ihe tune ol 1590.000 MT,
(B) Electricity Duty exemption:
During the year under review the company has applied for exemption ''ram
electricity duty in respect of electricity consumed in its S M S Plant.
The company has advi sed that under the I nte mal Policy of State of
Chhatti sgarh, it is entitled to g et electricity duty exemption of an
amou nt agg legating * 301.34 lacs. Out of this amount, an amount of I
144.54 lacs pertains to accounting year under review i.e. 3013-13 and
Ihe remaining amount i.e. ? 159.79 lacs pertains to accounting year
2011-12. During the year under review entire amount of ? 301.34 lacs
has been accounted lor as income lor the year under review.
C) After end of the financial year, the management has came to know
that one of the employee working in Accounts Department of the Company,
has committed forgery by fabricated bills and Good Receipt Note in
respect of Stores. The company broadly estimate the amount of this
forgery to the tune of * 1.15 crones. The matter has already been given
to Ihe Police Authorities and investigation is going on. The exact
impact of this fraud committed by one of the employee ol the company
will be fully known once the investigation are fully completed. In view
of which the management has decided not to account for any i mpacl of
this fraud on the financial state merits ol the company.
(D) During the year under review, the company has charged Interest on
all oustandings, where the payment was in arrears The combined eflect
of interest so applied to the accounts of various Debtors is 7 1.14
crores. recognized as amount due lor a period less than 6 months as the
recording ol this interest has been done at the fag end ol the year
(E) Parties'' accounts are subject to confirmation. Consequential
effects adjustment, presently unasce rtainable, will be provided as and
when confirmed.
(F) Trade Receivables. Loans & Advances and Deposits include certain
over due accounts. Balances in the accou nts of certain do blors, loans
and advances required to be conf i rmad / reconciled. However, in the
opi nion of the Board, all current assets, loans and advances would be
realized in ordinary cou rse of the business at the value as stated.
(G) In Ihe opinion of the Board, the provision for depreciation and al
I known liabilities is adeq uate and not in excess of the amount
reasonably necessary.
(H) The information requi red to be di sc los&d under the M icro, Smai
I and Medium Enterprise''s Development Act, 2006 has been determined to
the extent such parties have been identiliad on the basis ot
information available with the Company. There are no over dues to
parties on account of principal amount and i or interest and
accordingly no additional disclosures have been made.
(I) Figures of the previous year have been reworked,
rearranged/regrouped and reclassified wherever considered necessary.
Accordingly, the amount and other disclosures lor preceding year are
included as an integ ral pa rtol current yea rslmancial statement and a
re to oe read in relation to the amount and other disclosures relating
lo current year. The figures in financial statements are rounded off to
the nearest lacs njpaes.
(J) Separate segment wise reporting is nol called for in view ol the
fact that enti re revenue of the Company is from structural
manufacturing and all business activities are in India only. The
operations of Gas Plant and SMS are mainly for captive use barring
insignificant gross 1265.49 lacs from sale of Blooms/ Billets to
outside parties
(K) The figures in the financial statement have been rounded oft lo
nearest Rupees.
Mar 31, 2012
NOTE 1 CONTINGENT LIABILITY
As at As at
Particulars 31st March,
2012 31st March,
2011
(Rs. In Lacs) (Rs. In Lacs)
Sales Tax Demands under appeal 4.98 38.27
Central Sales Tax Demands under appeal - 10.07
Excise Duty liabilities under appeal &
adjudication 38.21 55.92
Est. amount of contracts repairing to be
executed on cap acc 210.00 200.00
Corporate Guarantees given for advances of
a body corporate 0.00 910.00
Outstanding Bank Guarantees 65.09 150.00
NOTE 2 RELATED PARTY DISCLOSURES
Disclosure of transactions with related parties, as required by
Accounting Standard-18 'Related Party Disclosures" has been set-out In
a separate statement annexed to this schedule. Related parties as
defined under Clause 3 of the Accounting Standard have been identified
on the basis of representations made by Key Managerial Personnel and
information available with the Company.
(A) Income Tax Search:
During the financial year under review on 21/22.06.2011. Search
operations were conducted by the Income Tax Department. During the
course of which. documents pertaining to accounts and financial matters
were seized in hard copy as well as softcopy. Verification and
valuation of some inventory items was earned out by the Department,
which concluded in arriving shortage of 267.290 MT of inventory i.e.
Finished goods and Raw material. The company has not accepted the
variation aforesaid and as such no effect in books of accounts has been
given. During the course of search, an amount of Rs. 13.00 lacs was
also seized by the Department. This has been offered for taxation by
the Company by Incorporating it the regular books of accounts. The
same has been treated as advance tax by the company.
(B) Excise Search:
During the financial year, on 13th March 2012. search operations were
conducted by the Central Excise Department, shortage of 19.290 MT of
finished goods and 162.578 MT of raw material of combined value of
Rs.SS.32 lacs was noted.
Detailed explanations on the said variance were given by the Company to
the Search team and applicable excise duty of Rs.5.69 lacs was paid
under protest and variation has been duly accounted in books of
accounts No show cause note has been served on the company in date
and the Management is not expecting any other ability on this account,
hence, no provision has been made
(C) On 13.07.2012, i.e. after the Balance sheet date. Excise Department
conducted another search operations and concluded excess inventory of
1285.196 MT of finished goods and Raw material with a combined value of
Rs 466.69 lacs. The management is of the view that variation posited
out gets off set with inventory of Raw Material of its SMS Division
which was not measured by the Excise Department.
(D) Parties' accounts are subject to confirmation. Consequential
effects adjustment, presently unascertainable. will be provided as and
when confirmed.
(E) Trade Receivables. Loans & Advances and Deposits include certain
overdue accounts. Balances in the accounts of certain debtors, loans
and advances required to be confirmed / reconciled However m the option
of the Board, all current assets, loans and advances would be reached
ordinary course of the business at the value as stated.
(F) In the opinion of the Board, the provision for depreciation and a
known laities is adequate and not in excess of the amount reasonably
necessary
(G) The information required to be disclosed under the Micro. Small and
Medium Enterprises Development Act. 2006 has been determined to the
extent such parties have been identified on the basis of information
available with the Company. There are no over dues to parties on
account of principal amount and / or interest and accordingly no
additional disclosures have been made
(H) Figures of the previous year have been reworked, rearranged,
regrouped and reclassified wherever considered necessary. Accordingly,
the amount and other disclosures for preceding year are mudded as an
integral part of current year's financial statement and are to be read
in relation to the amount and other disclosures retime to current
year. The figures n financial statements are rounded off to the nearest
lacs rupees.
(I) Separate segment wise reporting is not caked for m view of the fad
that entire revenue of the Company is from structural manufacturing and
all business activities are in India only. The operations of Gas Plant
and SMS are mainly for captive use barring insignificant gross Rs.
555.12 lacs from sale of Blooms/ Billets to outside parties
(J) Unclaimed dividend of eater years aggregating to Rs. 9.01 lakhs
deposited separate bank account, has been accounted for the books to
account of the current year, for better understand of financial
statement Inclusion of the said amount does not have any impact on the
profitability of the company.
Mar 31, 2011
1. CONTINGENT LIABILITIES:
SI. Particulars 31.3.2011 31.3.2010
No. (Rs. In lacs) (Rs. In lacs)
(i) Outstanding Bank guarantees 150.00 350.00
(ii) Sales Tax demand under appeal 38.27 38.27
(iii) Central Sales Tax demand under 10.07 10.07
appeal
(iv) Excise Duty liabilities under appeal 55.92 34.21
(v) Estimated amount of contracts 200.00 300.00
remaining to be executed
on capital account (net of advances)
(vi)Entry tax not paid on account of 57.46 57.46
exemption from Govt, of Chhattisgarh.
However certificate of exemption
yet not received.
(vii)Corporate guarantee given for a loan 910.00 3025.00
of a body corporate
2. Parties' accounts are subject to confirmation. Consequential
effects adjustment, presently unascertainable, will be provided as and
when confirmed.
3. Sundry Debtors, Loans & Advances and Deposits include certain over
due accounts. Balances in the accounts of certain debtors, loans and
advances required to be confirmed / reconciled. However, in the opinion
of the Board, all current assets, loans and advances would be realized
in ordinary course of the business at the value as stated.
4. In the opinion of the Board, the provision for depreciation and all
known liabilities is adequate and not in excess of the amount
reasonably necessary.
5. The information required to be disclosed under the Micro, Small and
Medium Enterprises Development Act, 2006 has been determined to the
extent such parties have been identified on the basis of information
available with the Company. There are no over dues to parties on
account of principal amount and / or interest and accordingly no
additional disclosures have been made.
6. Figures of the previous year have been reworked,
rearranged/regrouped and reclassified wherever considered necessary.
Accordingly, the amount and other disclosures for preceding year are
included as an integral part of current year's financial statement and
are to be read in relation to the amount and other disclosures relating
to current year. The figures in financial statements are rounded off to
the nearest lacs rupees.
7. The turnover of the company, during the year includes 258.020 MT,
of finished goods of Rs.92.20 lacs (excluding VAT) sent to the
consignment agent in the fag end of March 2011 but remained unsold to
the third party. The amount has been included in the turnover to
reflect correct position as the arrangement with the consignment agent
is such that the consignment goods sent on consignment, if remained
unsold would get converted into sale to the agent itself after
stipulated period. The company has received confirmation from its
consignment agent that the entire stock has been subsequently sold by
the agent in the month of April 2011. Had this been not done, the
turnover and profit for the year would have been lower by Rs.92.20 lacs
and Rs. 15.01 lacs respectively
8. (a) Imported Raw Material, Stores and spares consumed - Rs. 64.32
lacs (Rs. 21.46 lacs)
(b) FOB value of Exports to Nepal was Rs. 30.88 lacs in INR(including
Excise Duty)- (Rs.151.03lacs)
(c) Expenditure in foreign currency- Rs. 64.32 lacs - (Rs. 21.46 Lacs)
(d) Earning in foreign currency-NIL- (NIL)
(e) Value of Imports calculated on CIF basis - Rs. 64.32 lacs - (Rs.
21.46 Lacs) (Bracket represent previous year)
9. Separate segment wise reporting is not called for in view of the
fact that entire revenue of the Company is from structural
manufacturing and all business activities are in Indiaonly.The
operations of Gas Plant and SMS are mainly for captive use barring
insignificant gross receipts of Rs. 43.76 lacs from sale of gas and Rs.
167.98 lacs from sale of Blooms/ Billets to outside parties.
10. Related party disclosure as required by Accounting Standard - 18
issued by the Institute of Chartered Accountants of India:
A. List of Related Parties and Relationships:-
a) Associate concerns:
1. Raipur Ferro Alloys Limited (Under merger with another Company)
2. Rajesh Re-rollers Limited (Under merger with another Company)
3. Devi Iron and Power Pvt. Ltd.
4. Mahamaya Charitable Foundation
b) Key Management Personnel
1. Shri Ramanand Agrawal
2. Shri Rajesh Agrawal
3. Smt. GulabBai Agrawal
4. Shri D. K. Porwal
c) Relative of key management personnel
1. Rajesh Agrawal (HUF)
2. ShriAnandAgrawal
3. Ramanand Agrawal (HUF) 4 Smt. Asha Devi Agrawal
5. Smt. RekhaAgrawaL
d) Enterprises over which key Management Personnel and their relatives
exercise significant influence with whom transactions have taken place
during the year:
1. Abhishek Steel Industries Limited
2. ShreeShyam Sponge & Power Limited
3. Antriksh Commerce Pvt. Ltd.
4. Callidora Traders Private Limited
5. Mark Vision Multi Services Pvt. Ltd.
6. Escort Finvest Pvt. Ltd.
Mar 31, 2010
1. CONTINGENT LIABILITIES:
Sl. Particulars 31.3.2010 31.3.2009
No (Rs. In lacs) (Rs. In lacs)
(I) Outstanding Bank guarantees 350.00 250.00
(ii) Sales Tax demand under appeal 38.27 58.40
(iii) Central Sales Tax demand under appeal 10.07 30.13
Excise Duty liabilities under appeal 34.21 26.92
(iv) Estimated amount of contracts remaining 300.00 400.00
To be executed on capital account
( net of advances)
(V) Entry tax not paid on account of
exemption 57.46 57.46
from Govt, of Chhattisgarh. However
certificate of exemption yet not
received.
(vi) Corporate guarantee given
for a loan of 3025.00 3025.00
a body corporate
2. Parties accounts are subject to confirmation. Consequential
effects adjustment, presently unascertainable, will be provided as and
when confirmed.
3. Sundry Debtors, Loans & Advances and Deposits include certain over
due accounts. Balances in the accounts of certain debtors, loans and
advances required to be confirmed / reconciled. However, in the opinion
of the Board, all current assets, loans and advances would be realized
in ordinary course of the business at the value as stated.
4. In the opinion of the Board, the provision for depreciation and all
known liabilities is adequate and not in excess of the amount
reasonably necessary.
5. The information required to be disclosed under the Micro, Small and
Medium Enterprises Development Act, 2006 has been determined to the
extent such parties have been identified on the basis of information
available with the Company. There are no over dues to parties on
account of principal amount and / or interest and accordingly no
additional disclosures have been made.
6. The breakup of Deferred Tax liabilities/(assets) at the year end in
two major components of the respective balances are as follows:
7. Figures of the previous year have been reworked,
rearranged/regrouped and reclassified wherever considered necessary.
Accordingly, the amount and other disclosures for preceding year are
included as an integral part of current years financial statement and
are to be read in relation to the amount and other disclosures relating
to current year. The figures in financial statements are rounded off to
the nearest lacs rupees.
8 (a) Imported Raw Material, Stores and spares consumed Rs. 21.46 lacs
(Rs. 91.06 lacs)
(b) FOB value of Exports to Nepal was Rs. 151.03 lacs in INR- (Rs.
117.83 lacs)
(c) Expenditure in foreign currency Rs. 21.46 lacs - (Rs. 80.05 Lacs)
(d) Earning in foreign currency NIL- (NIL)
(E) Value of Imports calculated on CIF basis Rs. 21.46 lacs - (Rs.
80.05 Lacs) (Bracket represent previous year)
9 Separate segment wise reporting is not called for in view of the
fact that entire revenue of the Company is from structural
manufacturing and all business activities are in India only. The
operations of Gas Plant and SMS are mainly for captive use barring
insignificant gross receipts of Rs. 53.90 lacs from sale of gas and Rs.
769.98 lacs from sale of Blooms/ Billets to outside parties.
10. Related party disclosure as required by Accounting Standard 18
issued by the Institute of Chartered Accountants of India:
A. List of Related Parties and Relationships:-
a) Associate concerns:
1. RaipurFerro Alloys Limited (Under merger with another Company)
2. Rajesh Re-rollers Limited (Under mergerwith another Company)
3. Devi Iron and Power Pvt. Ltd.
b) Key Management Personnel
1. ShriRamanandAgrawal
2. Shri Rajesh Agrawal
3. Smt. GulabBai Agrawal
4. Shri D. K. Porwal
5. Shri Neeraj Kansal
6. Shri Gitesh Agrawal
7. ShriSuryakantSharma (Resigned w.e.f. 30.01.2010)
8. Shri Anil Kumar Sharma (Resigned w.e.f. 30.01.2010)
c) Relative of key management personnel
1. Rajesh Agrawal (HUF)
2. Shri Anand Agrawal
3. Ramanand Agrawal (HUF)
4. Smt.AshaDeviAgrawal
5. Smt. Rekha Agrawal
d) Enterprises over which key Management Personnel and their relatives
exercise significant influence with whom transactions have taken place
during the year:
1. Abhishek Steel Industries Limited
2. Shree Shyam Sponge & Power Limited
3. Antriksh Commerce Pvt. Ltd.
4. Callidora Traders Private Limited
5. Mark Vision Multi Services Pvt. Ltd.
Note:
(1) It includes captive consumption of blooms of 101772.165 MT (P.Y.
50378.025 MT) and conversion material 43880.880 MT (P.Y. 32514.920 MT)
(2) It includes captive consumption of 5620.77 MT (P.Y. 7457.645) end
cutting and scrap transferred from Rolling Mill.
* Amount does not include any notional value for stock transfer from
SMS and of conversion stock.
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