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Notes to Accounts of Prakash Industries Ltd.

Mar 31, 2017

1) Lease hold lands are taken by the Company on long term agreements with the government/government agencies for establishment of its plants.

2) Free hold land of Rs.20 Lakhs is yet to be transferred in the name of the Company as at 31st March,2017.

3) Adjustment on account of compulsory acquisition represents the transfer of assets of a Coal mine in terms of a government order.

4) Capital work in progress includes interest cost on borrowings Rs. 855 lakhs( Previous year Rs. 1,124 lakhs) and foreign exchange difference Rs.950 lakhs gain(Previous Year Rs.2245 lakhs loss.)

5) Intangible assets under development represents expenditure incurred on development of Coal mine.

b) Terms/ rights attached to equity shares

The Company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is entitled to one vote per share. All equity Share holders are having right to get dividend in proportion to paid up value at each equity shares as and when declared. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all the preferential amounts, in proportion to their shareholding.

d) The company had alloted 4557817equity shares at a premium of Rs.50 per share to FCCB holder during the year ended 31st March, 2017.

e) Foreign Currency Convertible Bond (FCCB) holders of US$ 13.55mn (Rs.8786 lakhs) have an option to get their bonds converted into equity shares of the Company up to 1st October,2020.

(a) Followings term loans are secured by mortgage of all immovable properties of the Company, both present and future and are also secured by way of hypothecation of the movable properties of the Company including movable plant and machinery, machinery spares, tools and accessories and other movables, both present and future (save and except book debts), subject to prior charge of the Company’s banker on specified movables for working capital requirements, ranking pari passu in all respects with existing charges and personal guarantees of the Chairman and the Managing Director.

(b) Corporation Bank and Rural Electrification Corporation Limited (REC) have restructured/reschedule their outstanding dues into Term Loans and Funded Interest Term Loans for a period of 8 years from December 2016 and 10 years from March 2017 respectively.

(c) Term Loans from banks and others include Rs.78 lakhs (Rs. 135 lakhs) and Rs.1,382 lakhs (Rs.2236 lakhs) respectively secured against the vehicles financed by the concerned lenders.

(d) The Company has outstanding FCCB of US$ 60 million(mn) matured in earlier year. FCCB of US$ 35.7 mn have been restructured into new bonds in a manner that the bondholders have a right to convert 50% of this i.e. US$ 17.85 mn into shares with maturity date of 1st October, 2020 carrying interest @5.35% p.a. and balance 50% of this i.e. US$ 17.85 mn carrying interest @ 5.25% p.a. to be redeemed in three installment due on by 30th September 2015(30%),31st August 2016(30%) and 31st July 2017(40%). For the remaining FCCB of US$ 24.3 mn, the company is in discussion with the bondholders for restructuring. In view of the legal opinion obtained by the Company, this liability of the matured FCCB is considered as non current liability and is stated at book value being its fair value. Outstanding FCCB are repayable in Foreign Currency and their repayments have not been hedged by any derivative instrument or otherwise by the Company.

(f) The non current borrowings shown above are net of current maturities Rs.21,336 lakhs (Mar 31,2016 Rs.23,039 lakhs) which are shown under note 25

(g) Refer note 47 for delays of repayments of loans/borrowings and interest thereon.

Working Capital loan from bank, repayable on demand is secured by hypothecation of raw materials, consumables stores and spare parts, stock in process, finished goods, book debts and by personal guarantees of the Chairman and the Managing Director of the Company. Further they are also secured by way of pari passu first charge on all the immovable properties of the Company.

6. The company has taken certain plant and machinery under operating lease during the period prior to Ist April, 2001.The company is having legal disputes with the concerned lessors and there are counter claims which are pending under arbitration/court, as such the future liability on this account, if any, is not ascertainable. In the opinion of management the liability on this account will not be material.

7. The Company is in the process of identifying the Suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been made. Further in view of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the said Act, is not expected to be material.

8. In terms of the order dated 23rd August 2007 of the Hon’ble Punjab & Haryana High Court, the net deferred tax liability computed in terms of the Indian Accounting Standard (Ind AS) 12 Income Taxes has been adjusted against Securities Premium reserve. Consequently, the profit for the year is lower by Rs.236 lakhs (previous year Rs.30 lakhs).

9. Foreign Currency Convertible Bonds (FCCB) of US$ 60 mn have matured in an earlier year, out of these, FCCB of US$ 35.7 mn have been restructured as detailed in note 19 (d). The Company has partly paid interest on these bonds up to 30th September 2015. The Company is in discussion with the Bond holders for waiver of interest payable on these Bonds which is under their active consideration. Accordingly, no provision has been made in the books of account of the unpaid interest on these Bonds. Had the provision been made, the interest payable would have been higher by Rs.1126 lakhs (Rs. 2178 lakhs as at 31st March, 2017). For the remaining FCCB, the Company is in an advanced stage of discussion with the Bond holders for restructuring the same for the further period of five years which is under their active consideration. The Company has not provided interest on these FCCB pending finalization of the settlement terms with the Bond holders. In view of the legal opinion taken by the Company, these FCCBs of Rs.15756 lakhs (US$ 24.3 mn) are being shown as non-current liabilities and are stated in the Ind AS financial statements at book value being its fair value.

10. Considering the future profitability and taxable position in the subsequent years, the Company is recognizing Minimum Alternate Tax(MAT) credit entitlement as an asset and is carrying the same in its accounts under the head of Non Current Assets. In case the credit entitlement is not availed by the Company within the time limit prescribed under the Income Tax Act, the same is set off against the Retained Earning. The Company has adjusted Rs.1709 lakhs on this account in the Retained Earnings during the year ended 31st March, 2017 (previous year Rs.728. lakhs).

11. Loan to Joint venture company represents sum of Rs. Nil (Rs.18 lakhs) advanced to Fatehpur Coal Mining Co. Pvt. Ltd. {Maximum amount outstanding during the year Rs.189 lakhs (Rs.189 lakhs)} towards company’s share of contribution in terms of Joint venture agreement for acquiring /developing the coal mine allocated to the Company jointly with others.

12. The Company has made investment in the share capital of following Joint venture companies formed for the purpose of developing coal blocks allotted to the Company in consortium with others:

The Hon''ble Supreme Court of India vide its Order dated 24th September, 2014 had cancelled the allocation of Coal blocks to above Joint Venture Companies. No adjustment has been made by the Company in the book values of the Investments of Rs.218 lakhs made in above Joint Venture Companies and advance of v189 lakhs given by the Company as the amount of compensation receivable to these Companies for the coal mines cancelled is not ascertainable at present. Necessary adjustment for gain/loss will be made in the Books of Account as and when the final compensation is received by these Companies and is reimbursed to the Company.

In the absence of the required information, the Company is not able to ascertain its share in the assets, liabilities, revenue and expenses of above Joint venture companies for the purpose of recognisation in its standalone financial statements. However, the management is of the view there will be no material impact on the financial statements of the Company.

13. Pursuant to the cancellation of the Choita coal mine of the Company vide Hon''ble Supreme Court’s Order, the assets pertaining to this mine have been vested with the new owner in terms of a government order. The book values of the assets transferred to the new owner have been aggregated and shown as claim recoverable in the Books of Account. The outstanding balance as at 31st March,2017 is Rs.2165 lakhs. Necessary adjustment for gain/loss will be made in the Books of Accounts on the final settlement of the compensation claimed by the Company.

14. The Company has a process whereby periodically all long term contracts (including derivative contracts, if any) are assessed for material foreseeable losses. At the year end, the Company has reviewed and ensured that adequate provision as required under any law/accounting standards for material foreseeable losses on such long term contracts (including derivate contracts) has been made in the books of account.

15. The details of delays in repayments of principal of loans/borrowing and interest thereon during the year are as follows:

The Company is in advanced stage of discussion with the Bond holders for restructuring the same for a further period of five years which is under their active consideration.

16. Related party disclosure as required by Ind As -24 issued by Ministry of Corporate Affairs(MCA) are as under :-(A ) List of related parties and their relationship

a) Enterprise on which key management personnel and/or their relatives exercise significant influence with whom transactions have taken place during the year.

1. Primenet Global Limited

2. Surya Roshini Limited

3. Tools India Private Limited

4. Vanshi Farms Private Limited

5. Hissar Tubes Private Limited

6. Nilkanth Fincon Private Limited

b) Key Management Personnel :

1. Shri V.P.Agarwal, Chairman

2. Shri Vikram Agarwal, Managing Director

3. Shri Kanha Agarwal, Joint Managing Director

4. Shri M.L.Pareek, Whole-time Director

5. Shri P.L. Gupta, Whole-time Director

6. Shri Ashwini Kumar, Company Secretary

c) Joint Venture Entities :

1. Madanpur (North) Coal Company Private Limited

2. Fatehpur Coal Mining Company Private Limited

17. Certain balances of Trade Receivable, Advances to suppliers, Trade Payable etc. are subject to confirmations. In the opinion of the management, no major adjustment will be required to be made in the accounts on receipt of these confirmations and subsequent to their reconciliations.

18. Managerial remuneration amounting to Rs.523 lakhs paid / payable by the Company during the year ended 31st March,2016 was subject to approvals by the Central government. The Company has submitted the necessary applications with the appropriate authority to seek the said approvals and the management is hopeful to get the same.

19. Segment Information Operating Segments

The Company has determined following reporting segments based on the operating results of its business segments reviewed by the Company''s Chief Operating Decision Maker for the purpose of making decision about resource allocation and performance assessment.

a) Steel

b) Power

c) PVC Pipe

20. The details of the expenditure on activities of Corporate Social Responsibilities (CSR) in pursuant to provisions of Section 135 of the Companies Act, 2013 are as under:

a) The gross amount required to be spent by the Company during the year is Rs.135.39 lakhs (previous year Rs.231.59 lakh).

21. Financial risk management and policies

21.1 Capital risk management

The Company manages its capital to ensure that the Company will be able to continue as going concern while maximizing the return to stakeholders through optimization of debt and equity balance. The Company is not subject to any externally imposed capital requirements.

The capital structure of the Company consists of net debt (borrowings as detailed in notes 19, 23 & 25 less cash and bank balances as detailed in note 13 & 14) and total equity of the Company. Equity consists of equity capital, share premium and all other equity reserves attributable to the equity holders.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants.

21.2 Financial risk management

The Company’s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance and support the Company’s operations. The Company’s principal financial assets comprise investments, cash and bank balance, trade and other receivables.

The Company is exposed to various financial risks such as market risk, credit risk and liquidity risk. The financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives.

a. Market risk

The Company’s activities expose it primarily to the financial risk of changes in foreign currency exchange rates and changes in interest rates. There have been no changes to the Company’s exposure to market risk or the manner in which it manages and measures the risk in recent past.

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: interest rate risk and currency risk. Financial instruments affected by market risk include borrowings and bank deposits.

i. 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 rates. The Company’s exposure to the risk of changes in market interest rates is limited.

ii. Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s borrowings. The Company’s foreign currency risks are identified, measured and managed at periodic intervals in accordance with the Company’s policies.

b. Credit risk

Credit risk is the risk that counterparty will default on its contractual obligations resulting in financial loss to the company. The Company has adopted a policy of only dealing with creditworthy customers.

The credit limit is granted to a customer after assessing the Credit worthiness based on the information supplied by credit rating agencies, publicly available financial information or its own past trading records and trends.

At March 31, 2017, the company did not consider there to be any significant concentration of credit risk, which had not been adequately provided for. The carrying amount of the financial assets recorded in the financial statements, grossed up for any allowances for losses, represents the maximum exposure to credit risk.

c. Liquidity risk

The Company manages liquidity risk by maintaining adequate reserves and banking facilities, by continuously monitoring forecast and actual cash flows and by matching the maturity profiles of financial assets and liabilities for the Company.

The Company has established an appropriate liquidity risk management framework for it’s short-term, medium term and long-term funding requirement.

The Company has taken land on lease for its plants from various government and government agencies for 99 years, with condition of further renewal as per terms and conditions mutually agreed by both the parties and increase of lease rental to the extent of 25% of existing lease rental.

22. Nature and purpose of reserves

(a) Capital reserve: The capital reserve was recognized on forfeiture of equity shares by the Company. This reserve is not freely available for distribution to the shareholders.

(b) Securities premium reserve: The amount of difference between the issue price and the face value of the shares is recognized in Securities premium reserve.

(c) Capital redemption reserve: The Company had created Capital redemption reserve out of the profitsfor redemption of the Preference shares. This reserve may be utilized for the specified purposes in accordance with the provisions of the Act.

(d) General reserve: General reserve is the accumulation of the portions of the net profits transferred by the Company in the past years pursuant to the earlier provisions of the Companies Act, 1956.

(e) Retained earnings: Retained earnings comprise of the profits of the Company earned till date net of distributions and other adjustments.

23. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure. Figures have been rounded off to the nearest lakhs rupees unless otherwise stated.


Mar 31, 2016

(b) Terms/rights attached to equity shares

The Company has only one class of equity shares having par value of Rs, 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed, if any, by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all the preferential amounts, in proportion to their shareholding.

(d) Foreign Currency Convertible Bond (FCCB) holders of US$ 17.85mn (Rs. 11840 lacs) have an option to get their bonds converted into equity shares of the Company (refer note 4 (d)).

(b) Term loans are secured by mortgage of all immovable properties of the Company, both present and future and are also secured by way of hypothecation of the movable properties of the Company including movable plant and machinery, machinery spares, tools and accessories and other movables, both present and future (save and except book debts), subject to prior charge of the Company''s banker on specified movables for working capital requirements, ranking pari passu in all respects with existing charges and personal guarantees of the Chairman and the Managing Director.

(c) Term Loans from banks and others include Rs, 77 lacs (Rs, 87 lacs) and Rs, 1,375 lacs (Rs, 1370 lacs) respectively secured against the vehicles financed by the concerned lenders.

(d) The company has outstanding FCCB of US$ 60 million which were due for payment on 30th April, 2015. Out of the said bonds, FCCB of US$ 35.7 mn have been restructured into new bonds in a manner that the bondholders have a right to convert 50% of this i.e. US$ 17.85 mn into shares with maturity date of 1st October, 2020 carrying interest @5.35% p.a. and balance 50% of this i.e. US$ 17.85 mn carrying interest @ 5.25% p.a. to be redeemed by 31st July 2017. For the remaining FCCB of US$ 24.3 mn, the company is in discussion with the bondholders for restructuring. In view of the legal onion received by the Company this amount is being shown as long term borrowing. Outstanding FCCB are repayable in Foreign Currency and their repayments have not been hedged by any derivative instrument or otherwise by the Company.

Working Capital loan from bank, repayable on demand is secured by hypothecation of raw materials, consumables stores and spare parts, stock in process, finished goods, book debts and by personal guarantees of the Chairman and the Managing Director of the Company. Further they are also secured by way of pari passu first charge on all the immovable properties of the Company.

1. In the opinion of the management, the Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. The provision for depreciation and all known liabilities is adequate, neither excess nor short than reasonably necessary.

2. The Company is in the process of identifying the Suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the yearend together with interest paid / payable as required under the said Act have not been made. Further in view of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the said Act, is not expected to be material.

3. In terms of the order dated 23rd August 2007 of the HonDble Punjab & Haryana High Court, the net deferred tax liability computed in terms of the Accounting Standard 22 [Accounting for Taxes on Incomes amounting to Rs, 38 lacs (Rs, 361 lacs) has been adjusted against Securities Premium Account. Consequently, the profit after tax is lower by the said amount.

4. The Company has outstanding FCCB of US$ 60 mn, which were due for payment on 30th April, 2015. Out of this, FCCB of US$ 35.7 mn have been restructured as per terms given in pt. no.(d) of schedule 4. Balance FCCB of US$ 24.3 mn have yet to be restructured, as such the company has not provided any interest on the same as the terms of restructuring are still not settled. For the restructured FCCB of US$ 35.7 mn, the company has partly paid interest on the same up to 30th September, 2015.The company has initiated discussions with the bondholders for waiver of the interest payable on these bonds, which is under their active consideration. Accordingly, no provision of interest has been made in the books of accounts on these FCCB subsequent to 30th September, 2015. Had the provision been made, the interest payable would have been higher by Rs. 1052 lacs.

‘Figures for the current year are not available since annual accounts are yet to be finalized.

The information required under the first proviso to section 129(3) of the Companies Act 2013 in form of AOC- 1 is not available in respect of joint venture companies Madanpur (North) Coal Co. Pvt Ltd and Fatehpur Coal Mining Co. Pvt Ltd as annual accounts are yet to be finalized in respect of these companies.

The Hon''ble Supreme Court of India vide its Order dated 24th September, 2014 had cancelled the Coal blocks allocated to above Joint Venture Companies. Since the mines have been cancelled there is no activity in these Companies and in view of the same the annual accounts are yet to be finalized and the Company is not able to prepare consolidated accounts with these Joint Venture Companies.

No adjustment has been made by the Company in the book values of the Investments made in Joint Venture Company as the amount of compensation receivable for the coal mines cancelled vide the Hon''ble Supreme court order, is not ascertainable at present.

5. Pursuant to the cancellation of the Choita Coal Mine of the Company vide Honable Supreme Court Order, the assets pertaining to this unit have been vested with the new owner of the mine. The book values of the assets transferred to the new owner have been aggregated and shown as claim recoverable in the Books of Account. Necessary adjustment for gain/loss will be made in the Books of Account on the final settlement of the compensation claimed by the Company..

6. Advance with related parties include

i) A sum of Rs, Nil lacs (Rs, 9 lacs) paid to Madanpur (North) Coal Co. Pvt. Ltd., a joint venture Company. Maximum amount outstanding during the year Rs, 9 lacs (Rs, 9 lacs).

ii) A sum of Rs, 189 lacs (Rs,172 lacs) paid to Fatehpur Coal Mining Co. Pvt. Ltd., a joint venture Company. Maximum amount outstanding during the year Rs, 189 lacs (Rs,172 lacs).

iii) A sum of Rs, Nil lacs (Rs, 1 lacs) due from other companies. Maximum amount outstanding during the year Rs, 1 lacs (Rs,1,314 lacs).

7. The company has taken certain plant and machinery under operating lease during the period prior to Ist April, 2001 .The company is having legal disputes with the concerned lassos and there are counter claims which are pending under arbitration/court, as such the future liability on this account, if any, is not ascertainable.

8. Gross Block of Land and Plant & Machinery includes Rs, 2,014 lacs and Rs, 19,824 lacs respectively added on revaluation of assets as at 31st March 2005. The depreciation as shown in the statement of Profit & Loss Account for the year is net of amount of Rs, 1,232 lacs adjusted against the Revaluation reserve.

The Company has already submitted its proposals to the respective lenders for reschedulement of these dues, which is under their active consideration.

9. Details of Employees Benefits as required by the Accounting Standard 15 Employee Benefits" are given below:-

a) Defined Contribution Plans:

During the year, the company has recognized the following amounts in the Profit & Loss Account (included in Contribution to Provident & Other Funds):-

The estimate of rate of escalation is salary considered in actuarial valuation, taken into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is as certified by the actuary.

10. Excise duty relating to sales has been disclosed as a deduction from sales. Excise duty related to difference between closing stock and opening stock has been disclosed in Note 19.

11. Related party disclosure as required by Accounting Standard -18 issued by the Institute of Chartered Accountants of India are as under :-(A) List of related parties and their relationship

a) Enterprise on which key management personnel and/or their relatives exercise significant influence with whom transactions have taken place during the year.

1. Primenet Global Limited

2. Surya Roshini Limited

3. Tools India Private Limited

4. Vanshi Farms Private Limited

5. Hissar Tubes Private Limited

6. Nilkanth Fincon Private Limited

b) Key Management Personnel :

1. Shri V.P.Agarwal, Chairman

2. Shri Vikram Agarwal, Managing Director

3. Shri M.L.Pareek, Whole-time Director

4. Shri P.L. Gupta, Whole-time Director

5. Shri Ashwini Kumar, Company Secretary

c) Joint Venture Entities :

1. Madanpur (North) Coal Company Private Limited

2. Fatehpur Coal Mining Company Private Limited

12. Certain balances of Debtors, Advances and Creditors are subject to confirmations. In the opinion of the management, no major adjustment will be required to be made in the accounts on receipt of these confirmations and subsequent to their reconciliations.

13. In view of the management, the current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet as at 31st March,2016.

14. Managerial remuneration paid during the year aggregating to Rs. 523 lacs is subject to approval of members and Central Government. The Company is in the process of seeking the said approvals and the management is hopeful to get the same. In case the requisite approvals are not obtained, the Company would take necessary steps to recover the excess remuneration paid.

15. Land of Rs.98 lacs is yet to be transferred in the name of the Company.

16. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current yearns classification / disclosure. Figures have been rounded off to the nearest lac rupees except figures of Earning per share which is rounded off to nearest rupee. Figures in brackets are for previous year.


Mar 31, 2015

1. share capital

(b) Terms/rights attached to equity shares

The Company has only one class of equity shares having par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed, if any, by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all the preferential amounts, in proportion to their shareholding.

(d) Foreign Currency Convertible Bonds (FCCB) holders have an option to get their bonds converted into equity shares of the Company (refer note 4 (d)).

(b) Term loans are secured by mortgage of all immovable properties of the Company, both present and future and are also secured by way of hypothecation of the movable properties of the Company including movable plant and machinery, machinery spares, tools and accessories and other movables, both present and future (save and except book debts), subject to prior charge of the Company's banker on specified movables for working capital requirements, ranking pari passu in all respects with existing charges and personal guarantees of the Chairman and the Managing Director.

(c) Term Loans from banks and others include Rs. 87 lacs (Rs. 182 lacs) and Rs. 1,370 lacs (Rs. 72 lacs) respe ctively secured against the vehicles financed by the concerned lenders.

(d) The Company had issued FCCB of USD 110 Million in earlier years, out of which FCCB of USD 32.9 Million got converted into Equity Shares of the Company. Out of Balance USD 77.1 Million, FCCB of USD 17.1 Million were redeemed on 13th October, 2014 and FCCB of USD 60 Million are due for redemption on 30th April, 2015 and carry interest @5.25% p.a. The Comany is in discussions with the bond holders and the bond holders have in-principle agreed for restructuring of the FCCB for a further period of 5 years, hence this amount has been shown under the above head. Outstanding FCCB are repayable in Foreign Currency and their repayments have not been hedged by any derivative instrument or otherwise by the Company.

Working Capital loan from bank, repayable on demand is secured by hypothecation of raw materials, consumables stores and spare parts, stock in process, finished goods, book debts and by personal guarantees of the Chairman and the Managing Director of the Company. Further they are also secured by way of pari passu first charge on all the immovable properties of the Company.

2. Contingent Liabilities not provided for in respect of:

This year Previous year (Rs.in lacs) (Rs. in lacs)

(a) Guarantees/Letter of credits issued by banks on behalf of the company 1,766 2,400

(b) Disputed demands of Excise Duty / Income Tax / Electricity dues/Lease rentals etc. 6,544 4,628 (Amount paid there against Rs.471 lacs (Rs.280 lacs))

3. In the opinion of the management, the Current Assets, Loans and Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. The provision for depreciation and all known liabilities is adequate, neither excess nor short than reasonably necessary.

4. The Company is in the process of identifying the Suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been made. Further in view of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the said Act, is not expected to be material.

5. In terms of the order dated 23rd August 2007 of the Hon'ble Punjab & Haryana High Court, the net deferred tax liability computed in terms of the Accounting Standard 22 'Accounting for Taxes on Income' amounting to X 361 lacs (net of amount related to transitional depreciation Rs 972 lacs)(X 554 lacs) has been adjusted against Securities Premium Account. Consequently, the profit after tax is higher by the said amount.

6. a) The Hon'ble Supreme Court of India by its Order dated 24th September, 2014 had cancelled certain Coal blocks allocated to various Companies including one operational and two under development blocks allotted to the Company.

b) The Hon'ble Supreme Court of India had also imposed an additional levy of Rs.295 per MT on extraction of Coal by the Company from its coal mine since operations commenced. Pursuant to the Order, the Company has paid Rs.234.21 crore due on the quantities extracted till 24th September, 2014. In addition, there is a liability of Rs.14.85 crore relating to the period from 25th September, 2014 to 31st March, 2015, due for payment on 30th June, 2015. Since this is an expense of exceptional nature and majorly related to the previous accounting periods, the same has been shown as an exceptional item in the profit and loss account of the Company for the year ended 31st March, 2015.

The Hon'ble Supreme Court of India by its Order dated 24th September, 2014 had cancelled the Coal blocks allocated to above Joint Venture Companies.

7. No adjustment has been made by the Company in the book values of the Investments made in mining assets as the amount of compensation receivable for the coal mines cancelled vide the Hon'ble Supreme court order, is not ascertained at present.

8. Advance with related parties include

i) A sum of Rs.9 lacs (Rs.9 lacs) paid to Madanpur (North) Coal Co. Pvt. Ltd., a joint venture Company. Maximum amount outstanding during the year Rs.9 lacs (Rs.9 lacs).

ii) A sum of Rs.172 lacs (Rs.164 lacs) paid to Fatehpur Coal Mining Co. Pvt. Ltd., a joint venture Company. Maximum amount outstanding during the year Rs.172 lacs (Rs.164 lacs).

iii) A sum of Rs.1 lac(Rs.2,827 lacs) due from other companies. Maximum amount outstanding during the year Rs.1,314 lacs (Rs.3,773 lacs).

9. The company has taken certain plant and machinery under operating lease during the period prior to Ist April, 2001.The company is having legal disputes with the concerned lessors and there are counter claims which are pending under arbitration/court, as such the future liability on this account, if any, is not ascertainable.

10. Gross Block of Land and Plant & Machinery includes Rs.2,014 lacs and Rs.19,824 lacs respectively added on revaluation of assets as at 31st March 2005. The depreciation as shown in the statement of Profit & Loss Account for the year is net of amount of Rs.1,274 lacs adjusted against the Revaluation reserve.

11. Depreciation for the year has been aligned to comply with requirement of Part C of Schedule II of the Companies Act,2013. Consquently, depreciation for the year is lower by Rs.2,346 lacs. Further, Rs.2,069 lacs (net of deferred tax Rs 972 lacs) in respect of the Fixed Assets where the useful life as specified in schedule II is already expired, has been adjusted to the opening balance of the Retained Earnings.

12. Land of Rs.98 lacs is yet to be transferred in the name of the Company.

13. txcise duty relating to sales has been disclosed as a deduction from sales. txcise duty related to difference between closing stock and opening stock has been disclosed in Note 19.

14. Related party disclosure as required by Accounting Standard -18 issued by the Institute of Chartered Accountants of India are as under (A) List of related parties and their relationship

a) Enterprise on which key management personnel and/or their relatives excercise significant influence with whom transactions have taken place during the year.

1. Primenet Global Limited

2. Surya Roshni Limited

3. Prakash Natural Resources Limited

4. Vanshi Farms Private Limited

b) Key Management Personnel :

1. Shri V.P.Agarwal, Chairman

2. Shri Vikram Agarwal, Managing Director

3. Shri M.L.Pareek, Whole-time Director

4. Shri PL. Gupta, Whole-time Director

5. Shri Manoj Aggarwal, Company Secretary

c) Joint Venture Entities :

1. Madanpur (North) Coal Company Private Limited

2. Fatehpur Coal Mining Company Private Limited

15. Certain balances of Debtors, Advances and Creditors are subject to confirmations. In the opinion of the management, no major adjustment will be required to be made in the accounts on receipt of these confirmations and subsequent to their reconcilations.

16. In view of the management, the current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet as at 31st March,2015.

17. Remuneration paid to the Chairman and the Managing Director aggregating to Rs. 708.39 lacs is subject to approval of members and Central Government.

18. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure. Figures have been rounded off to the nearest lac rupees except figures of Earning per share which is rounded off to nearest rupee.


Mar 31, 2013

1. Contingent Liabilities not provided for in respect of:

This year Previous year (Rs. in lacs) (Rs. in lacs)

- Guarantees/Letter of credits issued by banks on behalf of the company 2,455 2,908

- Disputed demands of Excise Duty /Electricity dues/Lease rentals etc. 3,144 2,266 (Amount paid there against Rs.280 lacs (Rs.180 lacs))

2. Estimated amount of contracts remaining to be executed on capital account andnot provided for (Net of advances) 36,191 48,983

3. In the opinion of the management, the Current Assets, Loans and Advances have a value on realisation in the ordinary course of business at least equal to the amount at which ttiey are stated in the Balance Sheet. The provision for depreciation and all known liabilities is adequate, neither excess nor short than reasonably necessary.

4. The Company is in the process of identifying Hie Suppliers tegarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence disclosures, If any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been made. Further in view of the management, the impact of interest if any, that may be payable in accordance with the provisions of the said Act, is not expected to be material.

5. fn terms of the order dated 23rd August 2007 of the Hon''ble Punjab & Haryana High Court, the net deferred tax liability computed in terms of the Accounting Standard 22 ''Accounting for Taxes on Income'' amounting to Rs. 90 lacs (Rs. 42 lacs) has been adjusted against Securities Premium Account. Consequently, the profit after tax is higher by the said amount

6. Advance with related parties include

i) A sum of Rs. Nil (Rs. Nil lacs) paid to Madanpur (North) Cdal Co. Pvt. Ltd., a joint venture Company, Maximum amount outstanding during the year Rs. 81 lacs (Rs. 12 lacs).

if) A sum of Rs. 156 lacs (Rs.137 lacs) paid to Fatehpur Coal Mining Co. Pvt. Ltd., a joint venture Company. Maximum amount outstanding during the year Rs. 156 lacs (Rs.137 lacs).

in) A sum of Rs. 3,713 lacs (Rs. 3,011 lacs) due from other companies. Maximum amount outstanding during the year f 4,097 lacs (Rs. 4,577 lacs).

Above figures are as certified by the management. Figures in bracket are for previous year. ''Figures for the current year are not available since annual accounts are yet to be finalized.

7. The company has taken certain plant and machinery under operating lease during the period prior to Ist April, 2001 .The company is having legal disputes with the concerned lessors and there are counter claims which are pending under arbitration/court, as such the future liability on this account, if any, is not ascertainable.

8. Gross Block of Land and Plant & Machinery includes Rs. 2,014 lacs and Rs. 19,824 lacs recpectlvely added on revaluation of assets as at 31st March 2005. The depreciation as shown in the statement of Profit & toss Aceouii is net of amount of Rs. 1,274 iacs adjusted against the Revaluation reserve.

9. Excise duty relating to sales has been disclosed as a deduction from sales. Excise duty related to difference between closing stock and opening stock has beefi disctosed in Note 19.

10. Related party disclosure as required by Accounting Standard -18 Issued by the Institute of Chartered Accountants of India are as under :- (A) List of related parties and their relationship

a) Enterprise on which key management personnel and/or their relatives excercise significant influence with whom transactions have taken place during the year.

1. Primenet Global Limited

2. Surya Roshni Limited

3. Prakash Natural Resources Limited

4. Vanshi Farms Private Limited

b) Key Management Personnel :

1. Shri V.RAgarwal, Chairman

2. Shri vlkram Agatwal, Managing Director

3. Shri M.LPareek, Whole-time Director

4. Shri Vipul Agarwal, Whole-time Director

5. Shri PI. Gupta, Whole-time Director

c) Joint Venture Entities:

1. Madanpur (North) Coal Company Private Limited

2. Fatehpur Coal Mining Company Private Limited

11. Certain balances of Debtors, Advances and Creditors are subject to confirmations, in the opinion of the management, no major adjustment will be required to be made in the accounts on receipt of these confirmations and subsequent to their reconcilations.

12. In view of the management, the current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet as at 31st March,2013.

13. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.


Mar 31, 2012

1. Contingent Liabilities not provided for in respect of:

This year Previous year (Rs. in lacs) (Rs.in lacs)

- Guarantees/Letter of credits issued by banks on behalf of the company 2,908 2,620

- Disputed demands of Excise Duty /Electricity dues/Lease rentals etc. 2,266 2,517 (Amount paid there against Rs.180 lacs (Rs.384 lacs))

2. Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of advances) 48,983 45,714

3. In the opinion of the management, the Current Assets, Loans and Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. The provision for depreciation and all known liabilities is adequate, neither excess nor short than reasonably necessary.

4. The Company is in the process of identifying the Suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been made. Further in view of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the said Act, is not expected to be material.

5. In terms of the order dated 23rd August 2007 of the Hon'ble Punjab & Haryana High Court, the net deferred tax liability computed in terms of the Accounting Standard 22 'Accounting for Taxes on Income' amounting to Rs.42 lacs has been adjusted against Securities Premium Account. Consequently, the profit after tax is higher by the said amount.

6. Advance with related parties include

i) A sum of Rs. 3,011 lacs (Rs. 3,161 lacs) due from group companies. Maximum amount outstanding during the year Rs. 4,577 lacs (Rs. 5,088 lacs).

ii) A sum of Rs. Nil (Rs. 6 lacs) paid to Madanpur (North) Coal Co. Pvt. Ltd., a joint venture Company. Maximum amount outstanding during the year Rs. 12 lacs (Rs. 6 lacs).

iii) A sum of Rs. 137 lacs (Rs.85 lacs) paid to Fatehpur Coal Mining Co. Pvt. Ltd., a joint venture Company. Maximum amount outstanding during the year Rs. 137 lacs (Rs.85 lacs).

7. The company has taken certain plant and machinery under operating lease during the period prior to I st April, 2001.The company is having legal disputes with the concerned lessors and there are counter claims which are pending under arbitration/court, as such the future liability on this account, if any, is not ascertainable.

8. Gross Block of Land and Plant & Machinery includes Rs. 2,014 lacs and Rs. 19,824 lacs recpectively added on revaluation of assets as at 31st March 2005. The depreciation as shown in the statement of Profit & Loss Account is net of amount of Rs. 1,278 lacs adjusted against the Revaluation reserve.

9. Details of Employees Benefits as required by the Accounting Standard 15 “Employee Benefits” are given below:- a) Defined Contribution Plans:

During the year, the company has recognised the following amounts in the Profit & Loss Account (included in Contribution to Provident & Other Funds):-

10. Excise duty relating to sales has been disclosed as a deduction from sales. Excise duty related to difference between closing stock and opening stock has been disclosed in Note 19.

11. Related party disclosure as required by Accounting Standard -18 issued by the Institute of Chartered Accountants of India are as under :-

(A) List of related parties and their relationship

a) Enterprise on which key management personnel and/or their relatives excercise significant influence with whom transactions have taken place during the year.

1. Primenet Global Limited

2. Surya Roshni Limited

3. Prakash Natural Resources Limited

4. Vanshi Farms Private Limited

b) Key Management Personnel :

1. Shri V.P.Agarwal, Chairman

2. Shri Vikram Agarwal, Managing Director

3. Shri G.L.Mohta, Whole-time Director

4. Shri Vipul Agarwal, Whole-time Director

5. Shri P.L. Gupta, Whole-time Director

c) Joint Venture Entities :

1. Madanpur (North) Coal Company Private Limited

2. Fatehpur Coal Mining Company Private Limited

12. Certain balances of Debtors, Advances and Creditors are subject to confirmations. In the opinion of the management, no major adjustment will be required to be made in the accounts on receipt of these confirmations and subsequent to their reconcilations.

13. In view of the management, the current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet as at 31st March,2012.

14. The revised schedule VI of the Companies Act,1956 has become effective from 1st April,2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.


Mar 31, 2011

1. Contingent Liabilities not provided for in respect of:

This year Previous year

(Rs. in lacs) (Rs. in lacs)

- Guarantees issued by banks on behalf of the company 2,620.49 996.84

- Disputed demands of Excise Duty /Sales Tax/Electricity dues /Leaserentals etc. 2,517.36 2,681.75 (Amount paid there against Rs.384.24 lacs (Rs.394.37 lacs))

2. Estimated amount of contracts remaining to be executed on capital account and not provided for

(Advances paid there against Rs.7,686.05 lacs (Rs.4,522.83 lacs)) 53,399.64 38,992.38

3. In the opinion of the management, the Current Assets, Loans and Advances have a value on realisation in the ordinary course of business atleast equal to the amount at which they are stated in the Balance Sheet. The provision for depreciation and all known liabilities is adequate, neither excess nor short than reasonably necessary.

4. The Company is in the process of identifying the Suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been made.

5. In terms of the order dated 23rd August 2007 of the Hon'ble Punjab & Haryana High Court, the net deferred tax liability computed in terms of the Accounting Standard 22 ‘Accounting for Taxes on Income‘ amounting to Rs. 302.30 lacs has been adjusted against Securities Premium Account. Consequently, the profit after tax is higher by the said amount.

6. Advance recoverable in cash or in kind or for value to be received include

i) A sum of Rs. 3,161.33 lacs (Rs. 2,386.20 lacs) from group companies in which directors are interested. Maximum amount outstanding during the year Rs. 5087.95 lacs (Rs. 2,583.93 lacs).

ii) A sum of Rs. 6.20 lacs (Rs. 0.04 lacs) paid to Madanpur (North) Coal Co. Pvt. Ltd., a joint venture Company. Maximum amount outstanding during the year Rs. 6.20 lacs (Rs.0.04 lacs).

iii) A sum of Rs. 84.84 lacs (Rs.Nil) paid to Fatehpur Coal Mining Co. Pvt. Ltd., a joint venture Company. Maximum amount outstanding during the year Rs.84.84 lacs (Rs.Nil).

7. Advance income tax is subject to set off with provision for corporate tax as and when assessed.

8. The company has taken certain plant and machinery under operating lease prior to the period I st April, 2001.The company is having legal disputes with the concerned lessors and there are counter claims which are pending under arbitration/court, as such the future liability on this account, if any, is not ascertainable.

9. During the year 27.94,800 equity shares of Rs 10 each were alloted as fully paid up pursuant to the conversion of US$ 10.2 mn Foreign Currency Convertible Bonds (FCCB) out of the US$ 50 mn FCCB issued by the Company in October'2009. During the year 1,00,00,000 equity shares of Rs 10 each were alloted on 01.01.2011 as fully paid up pursuant to the conversion of 1,00,00,000 Convertible Share Warrents issued on 04.07.2009. Share capital includes 4,50,000 equity shares issued on conversion of term loan and 2,60,22,648 equity shares allotted as Bonus shares by capitalisation of Securties Premium Account in earlier years.

10. Gross Block of Land and Plant & Machinery includes Rs. 2,014.11 lacs and Rs. 19,823.69 lacs recpectively added on revaluation of assets as at 31st March 2005. The depreciation as shown in the Profit & Loss Account is net of amount of Rs. 1,278.60 lacs adjusted against the Revaluation reserve.

The estimate of rate of escalation is salary considered in actuarial valuation, taken into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is as certified by the actuary.

11. Excise duty relating to sales has been disclosed as a deduction from sales. Excise duty related to difference between closing stock and opening stock has been disclosed in Schedule 10 – Increase/Decrease in stocks.

12. The Company has raised amounts against issue of Foreign Currency Convertable Bonds (FCCBs). The outstanding amount of FCCBs as on 31st March, 2011 is Rs. 347.55 crore (US$ 77.1 Million) out of which, FCCBs of Rs. 79.65 crore (US$ 17.1 Million) and Rs.267.90 crore (US$ 60.0 Million) will get matured in October, 2014 and April, 2015 respectively. However, the respective bond holders have an option to get their bonds converted into equity shares of the Company or on before the maturity date. The amount raised by way of FCCBs has been utilised towards Capital expenditure for expansion and modernisation plans of the Company. The Company has complied with all the financial and other convenants as mentioned in the Offering Circular with respect to the issue of FCCBs

The outstanding FCCBs as on 31st March,2011 are repayable in Foreign Currency amounting to US$ Mn. 77.1 and same has not been hedged by any derivative instrument or otherwise by the Company.

13. Related party disclosure as required by Accounting Standard -18 issued by the Institute of Chartered Accountants of India are as under :- (A) List of related parties and their relationship

a) Enterprise on which key management personnel and/or their relatives excercise significant influence with whom transactions have take place during the year.

1. Primenet Global Limited

2. Surya Roshni Limited

3. Prakash Natural Resources Limited

4. Vanshi Farms Private Limited

b) Key Management Personnel :

1. Shri V.P.Agarwal, Chairman & Managing Director

2. Shri Vikram Agarwal, Joint Managing Director

3. Shri G.L.Mohta, Whole Time Director

4. Shri Vipul Agarwal, Whole Time Director

c) Joint Venture Entities :

1. Madanpur (North) Coal Co. Pvt. Ltd.

2. Fatehpur Coal Mining Co. Pvt. Ltd.

14. Certain balances of Debtors, Advances and Creditors are subject to confirmations. In the opinion of the management, no major adjustment will be required to be made in the accounts on receipt of these confirmations and subsequent to their reconcilations.

15. Previous year's figures have been shown in brackets and are regrouped/rearranged wherever considered necessary to conform with current year's presentation. The figures have been rounded off to the nearest of Rupee.

16. Schedule 1 to 16 form an integral part of accounts and have been duly authenticated.


Mar 31, 2010

1. Estimated amount of contracts remaining to be executed on capital account and not provided for (Advances paid there against Rs.4,522.83 lacs (Rs.1,969.19 lacs)) 38,992.38 9,096.29

2. In the opinion of the management, the "Current Assets, Loans and Advances have a value on realisation in the ordinary course of business atleast equal to the amount at which they are stated in the Balance Sheet.

3. The Company is in the process of identifying the Suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been made.

4. In terms of the order dated 23rd August 2007 of the Honble Punjab & Haryana High Court, the net deferred tax liability computed in terms of the Accounting Standard 22 Accounting for Taxes on Income amounting to Rs. 694.28 lacs has been adjusted against Securities Premium Account. Consequently, the profit after tax is higher by the said amount.

5. Advance recoverable in cash or in kind or for value to be received include

i) A sum of Rs. 2,386.20 lacs (Rs. 1,956.16 lacs) from group companies in which directors are interested. Maximum amount outstanding during the year Rs. 2,583.93 lacs (Rs. 2,129.27 lacs).

ii) A sum of Rs. Nil lacs (Rs. 0.04 lacs) paid to Madanpur (North) Coal Co. Pvt. Ltd., a joint venture Company. Maximum amount outstanding during the year Rs. 0.04 lacs (Rs. 5.11 lacs).

6. The company has an investment of Rs 197.13 lacs in the share capital of Madanpur (North) Coal co. Pvt. Ltd., a joint venture company formed for the purpose of developing a coal block allotted to the company in consortium with others.

"Figures are as certified by the management and figures in bracket are for previous year.

7. Liabilities written back represents share warrant application money forfeited during the year. Exceptional Item include amounts paid to various lenders on settlement/prepayment.

8. Advance income tax is subject to setoff with provision for corporate tax as and when assessed.

9. The company has taken certain plant and machinery under operating lease prior to the period Ist April, 2001 The company is having legal disputes with the concerned lessors and there are counter claims which are pending under arbitration/court, as such the future liability on this account, if any, is not ascertainable.

10. The Company has repaid the matured non-convertible debentures to individual debenture holders. However, certain cheques amounting to Rs. 39.47 lacs are yet to be realised by the concerned holders.

11. During the year 62,19,800 equity shares of Rs 10 each at a premium of Rs 160 each were alloted pursuant to the conversion of US$ 22.7 mn Foreign Currency Convertible Bonds (FCCB) out of the US$ 50 mn FCCB issued by the Company in October2009 . Share capital includes 4,50,000 equity shares issued on conversion of term loan and 2,60,22,648 equity shares allotted as Bonus shares by capitalisation of Securties Premium Account in earlier years.

12. Gross Block of Land and Plant & Machinery includes Rs. 2,014.11 lacs and Rs. 19,823.69 lacs recpectively added on revaluation of assets as at 31st March 2005. The depreciation as shown in the Profit & Loss Account is net of amount of Rs. 1,447.27 lacs adjusted against the Revaluation reserve.

13. Details of Employees Benefits as required by the Accounting Standard 15 "Employee .Benefits" are given below:- a) Defined Contribution Plans:

During the year, the company has recognised the following amounts in the Profit & Loss Account (included in Contribution to Provident & Other Funds:-

The estimate of rate of escalation is, salary considered in actuarial valuation, taken into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is as certified by the actuary. 16. During the year, the Company has earned gains on sale/purchase of following investments:

14. Excise duty relating to sales has been disclosed as a deduction from sales. Excise duty related to difference between closing stock and opening stock has been disclosed in Schedule 10 - Increase/Decrease in stocks.

15. The breakup of Deferred Tax Assets/(Liabilities) is as under :-

16. Remuneration of Managing Director and the Whole-time Directors for the year is in accordance with Schedule XIII to the Companies Act, 1956:

17. The Company has raised amounts against issue of Foreign Currency Convertable Bonds (FCCBs) during the year. The said amount has been utilised towards Capital expenditure for expansion and modernisation plans of the Company during the year. Amount of Rs. 2996 lacs representing unutilised money against outstanding FCCBs at the close of the year has been kept with banks in fixed deposits. The Company has complied with all the financial and other convenants as mentioned in the Offering Circular with respect to the issue of FCCBs.

18. Related party disclosure as required by Accounting Standard -18 issued by the Institute of Chartered Accountants of India are as under:- (A) List of related parties and their relationship

a) Enterprise on which key management personnel and their relatives excercise significant influence with whom transactions have taken place during the year.

1. Primenet Global Limited

2. Surya Roshni Limited

3. Prakash Thermal Power Limted

4. Prakash Natural Resources Limited

5. Prakash Mega Power Limted

6. Prakash Urja Limted

7. Prakash Vidyut Limted

8. Vanshi Farms Private Limited

9. Ocean Ispat Private Limited

b) Key Management Personnel:

1. Shri V.P.Agarwal, Chairman & Managing Director

2. Shri Vikram Agarwal, Joint Managing Director

3. Shri G.LMohta, Whole Time Director

4. Shri Vipul Aqarwal, Whole Time Director

Note : Outstanding share warrants and FCCBs being anti dilutive have not been considered for the purpose of computing diluted earning per share.

19. Previous years figures have been shown in brackets and regrouped and/or rearranged wherever considered necessary to conform with current years presentation. The figures have been rounded off to the nearest of Rupee.

20. Schedule 1 to 16 form an integral part of accounts and have been duly authenticated.

21. Related party disclosure as required by Accounting Standard -18 issued by the Institute of Chartered Accountants of India are as under :- (A) List of related parties and their relationship

a) Enterprise on which key management personnel and their relatives excercise significant influence with whom transactions have taken place during the year.

1. Primenet Global Limited

2. Surya Roshni Limited

3. Prakash Thermal Power Limted

4. Prakash Natural Resources Limited

5. Prakash Mega Power Limted

6. Prakash Urja Limted

7. Prakash Vidyut Limted

8. Vanshi Farms Private Limited

9. Ocean Ispat Private Limited i) Key Management Personne

1. Shri V.P.Agarwal, Chairman & Managing Director

2. Shri Vikram Agarwal, Joint Managing Director

3. Shri G.LMohta, Whole Time Director

4. Shri Vipul Agarwal, Whole Time Director

1) Companies at serial nos. 3 to 9 above are incorporated for setting up new projects by the company.

2) Related party relationship in terms of Accounting Standard 18 as given above is pointed out by the management and relied upon by the Outstanding share warrants and FCCBs being anti dilutive have not been considered for the purpose of computing diluted earning per share.

22. Previous years figures have been shown in bracket regrouped and/or rearranged wherever considered necessary to conform with current years presentation. The figures have been rounded off to the nearest of Rupee.

23. Schedule 1 to 16 form an integral part of accounts and have been duly authenticated.

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