Mar 31, 2018
1. NATURE OF OPERATION
SAB Industries Ltd (''the company'') a public limited Company registered in India under the Companies Act 2013 (Erstwhile Companies Act 1956). The Company is a leading construction company. Its Shares are listed in Bombay stock Exchange.
Note : 1. The quoted value of shares does not include the quoted value of shares of Steel Strips Ltd as these are not being quoted in the Stock Exchanges.
2. The company has adopted to measure investments in subsidiaries and associates at cost in accordance with Ind AS 27 and carrying amount as per previous GAAP at the date of transition has been considered as deemed cost in accordance with Ind AS 101.
"In compliance with Ind AS 12 on Accounting for the Taxes on Income, the company has recognised Deferred Tax Assets in its books as per detail given herein above. In the opinion of the management, considering the future profits of the company, it will be recovered in future."
âEquipments lying in the offices & godowns is valued at cost price. Work-in-progress is valued on proportionate basis where certified bills have been raised in the next year, and on the best estimate basis by the management where certified bills are not available."
Stocks of Buildings & Buildings under construction have been valued at cost.
Note :
1. Term Loan from Allahabad Bank is secured against Equitable Mortgage of Project land measuring 32 Bighas 05 Biswas 17 Biswasi and Building thereon situated at NH-22 Derabassi in the name of our company and further secured with collateral security by way of equitable mortgage of residential property 89/7, Panchkula of Sh.R.K.Garg, Chairman of the company.
During the year under consideration, the company have received an amount of Rs. 514.44 lakhs against the award of Zakhira Flyover, Delhi, through Hon''ble High Court of Delhi. The same has been received against security provided by our associated concerns and the award has been challanged/ disputed by client .As such, the amount is disputed and hence has been considered under Long Term "Borrowings". The same shall be considered as Income as and when the case is decided by the Hon''ble High Court finally. The total disputed amount of company''s awards under "Secured Loan" stands at Rs.715.91 lac as on 31.03.2018.
Besides, the company had received R 1307.12 lakhs from M/S Sutlej Constructions Ltd (SCL), Manimajra, Chandigarh in previous years. SAB Industries Ltd (SABIL) have entered into Joint Venture agreements with SCL in connection with Arbitration cases of said company whereby SCL and SABIL shall share the amount of award received, if any, equally between them. The amounts so released in earlier years have been released against furnishing of security by way of mortgaging land/title deeds of lands both of SABIL and SCL and submission of surety bonds. As the cases are subjudice and claims have been released against submission of surety bonds/title deeds of lands, the amount received has been treated as "Secured Loanâ only as having been released against the above said securities. The amount shall be treated as Income as and when Sureity Bonds/title deeds of land are released and cases are decided by the Court finally. The outstanding balance received from SCL stands at Rs.1039.59 lakhs for above cases as on 31.03.2018.
Note : 1. Sales Tax provision had been made in the year 2009 -10 against interest demand raised by Sales Tax Department Haryana related to A.Y.1990-91 to 1993-94.However, after depositing principal amount in the year 2009-10, no further demand has been made by the department in the last 8 years. As such, provision made has been written off.
2. Provision for Bank Guarantees has been made against invoked BGs and 100% margin has been kept with State Bank of Patiala, Sector-17C, Chandigarh. Now the cases are pending in various courts.- Liabilities for employees retirement benefits :
During the year the company has made provision for accrued liability on account of Gratuity and Leave encashment on the basis of actuarial valuation based on projected unit method as required by AS-15 (Revised 2005)
The company has been reconciling the outstanding balances with Debtors and Creditors from time to time. However, some of the balances remain unreconciled as at the end of the year in the absence of confirmation from the other parties. Detail of amounts outstanding to Micro and Small Enterprises as defined under Micro, Small and Medium Enterprises Development Act 2006, based on available information with the company is as under :
Note : Building Material purchased/ consumed includes cost of the material involved in the payments made to Sub-Contractors for work done by them where ever building material is involved in executing their work.
Note:
1. Key management: Sh. R. K. Garg, Chairman, Sh. Avinash Sharma, Executive Director, Sh. H. K. Singhal, Director
2. Enterprises over which Key Management Personal (KMP) are able to exercise significant influence and with whom transactions have taken place during the year:
1. Indian Acrylics Ltd 2. Steel Strips Wheels Ltd 3. Steel Strips Infrastructures Ltd
4. R.K.Garg & Sons(HUF) 5. Hans Raj Trust
3. Relatives of the Key Management Personnel (with whom transactions have taken place) Ms Priya Garg is daughter of Sh. R. K. Garg, Chairman of the company.
18. The Company has a defined benefit gratuity and Earned Leave 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. And accumulation of EL for Staff is up to 60days.
The Employee''s gratuity fund scheme managed by SAB Industries Ltd Employees Group Gratuity Trust (Managed by LIC Of India) is a defined benefit plan. The Present Value of obligation is determined based on acturial valuation using the projected unit credit method which recognises each period of service as giving rise to additional unit of employee benefits entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognised in the same manner as gratuity.
Net employee benefit expenses (recognised in Employee Cost)
The following tables summarize the components of net benefit expense recognised in the Profit and Loss Account and the amounts recognised in the balance sheet.
Transition to Ind AS - Reconciliations
The following reconciliations provide a quantification of the effect of significant differences arising from the transition from previous GAAP to Ind-AS as required under Ind-AS 101:
1. Reconciliation of balance sheet as at 1st April 2016
2. (a) Reconciliation of balance Sheet 31st March 2017
(b) Reconciliation of total comprehensive income for the year ended 31st March 2017
3. Reconciliation of equity as at 1st April 2016 and as at 31st March 2017.
4. Reconciliation of income statement as at 31st March 2017.
(a) Under Previous GAAP, deferred taxes were recognised for the tax effect of timing differences between accounting profit and taxable profit for the year using the income statement approach. Under Ind AS, deferred taxes are recognised using the balance sheet for future tax consequences of temporary differences between the carrying value of assets and liabilities and their respective tax bases. The above difference, together with the consequential tax impact of the other Ind AS transitional adjustments lead to temporary differences. Deferred tax adjustments are recognised in correlation to the underlying transaction either in retained earnings or through profit and loss account or other comprehensive income.
Mar 31, 2016
1. Term Loan from Allahabad Bank is secured against Equitable Mortgage of Project land measuring 32 Bighas 05 Biswas17 Biswasi and Building thereon situated at NH- 22, Database in the name of our company and further secured with collateral security by way of equitable mortgage of residential property,89, Sector 7, Panchkula of Sh. R.K. Garg, Chairman of the Company.
2. Vehicles/Equipments Loans from banks are secured against hypothecation of respective vehicles/equipments and counter guarantees of the company.
The company have received R1307.12 lacs from M/S Sutlej Constructions Ltd. (SCL), Manimajra, Chandigarh in previous years. SAB Industries Ltd (SABIL) have entered into Joint Venture agreements with SCL in connection with Arbitration cases of said company whereby SCL and SABIL shall share the amount of award received, if any, equally between them. The amounts so released in earlier years have been released against furnishing of security by way of mortgaging land/title deeds of lands both of SABIL and SCL and submission of surety bonds. As the cases are subjudice and claims have been released against submission of surety bonds/title deeds of lands, the amount received has been treated as âSecured Loanâ only as having been released against the above said securities. The amount shall be treated as income as and when Surety Bonds/title deeds of land are released and cases are decided by the Court finally. The outstanding balance received from SCL stands at R 1307.12 lacs for above cases as on 31.03.2016.
Note : 3. Sales Tax provision has been made in the year 2009-10 against demand raised by Sales Tax Deptt., Haryana related to A.Y.1990-91 to 1993-94.
4. Provision for Bank Guarantees has been made against invoked BGs and 100% margin has been kept with State Bank of Patiala,Sector-17C,Chandigarh. Now the cases are pending in various courts.
The company has been reconciling the outstanding balances with Debtors and Creditors from time to time. However, some of the balances remain unreconciled as at the end of the year in the absence of confirmation from the other parties. Detail of amounts outstanding to Micro and Small Enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006, based on available information with company is as under :-
Gross work done includes R1627.06 lacs against claims which have not been received yet but have been decreed in favour of the company. However, the company have filed application for the execution of decrees in the courts and as per opinion of the managements these decreed amounts are likely to be received and are covered under para 13 of the AS-7 which states that claims are included in contract value when.
5. Negotiations have reached an advanced stage such that it is probable that the customer will accept the claim an a ;
6. the amount that it is probable will be accepted by the customer can be measured reliably.
The company has defined benefit gratuity and Earned Leave 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. And accumulation of EL for staff is upto 60 days.
The Employeeâs gratuity fund scheme managed by SAB Industries Ltd Employees Group Gratuity Trust (Managed by LIC of India) is a defined benefit plan. 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 benefits entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.
Net employee benefit expenses ( recognized in Employee Cost)
Mar 31, 2015
2. CONTINGENT LIABILITIES
AS ON AS ON
31.03.2015 31.03.2014
(Rsin lacs) (Rsin lacs)
Counter Guarantees issued by the
company against Bank Guarantees 889.38 572.91
Income tax demand 43.35 0.00
The Income Tax Department has raised a demand on 27.03.2015 for R43.35
lac for the Assessment year 2013-14. The company have appealed against
the same and is confident that the demand will be withdrawn.
Accordingly, no provision for the same has been made in the Books of
Accounts as at 31.03.2015.
3. In the opinion of the Board, the current assets, loans & advances,
if realised in the ordinary course of business, have the value on
realization at least equal to the amount as stated in the Balance
Sheet. The Stocks of building material, Raw material, finished goods
and other consumable goods have been valued at cost and wastes have
been valued at net realizable value and taken as certified by the
Management. The provision for all known liabilities is adequate and not
in excess of amount considered reasonably necessary.
4. Figures have been rounded off to the nearest rupee.
5. Previous year figures have been regrouped /rearranged wherever
considered necessary to make them comparable with those of current
year.
6. The company has filed claims arising out of contractual disputes
with various clients, which have not been accounted for in books of
accounts. Similarly, there are counter claims filed against the Company
by clients, which have also not been accounted for. It is difficult to
quantify the same, as these are at different stages of adjudication.
These shall be accounted for as and when these are accepted or on their
final decision and/ or on their final settlement.
7. Sales Tax has been paid as per the Sales Tax returns filed. Any
additional liability arising out of pending Assessments shall be
provided for on the completion of Sale Tax Assessments.
8. Notes 1 to 15 form an integral part of the Balance Sheet,Profit &
Loss Account and Cash Flow Statement.
9. SEGMENT REPORT
Segment wise revenue,results and capital employed for the year-ended
31.03.15 is as under:
.10. The company has identified its business segments as its primary
reporting format which comprises of Construction Division, Real Estate
business, Infotech Division Investment business, Agriculture and
Trading Division. The main business is Construction activities.
Infotech Division, which has come into existence after merger of SAB
Infotech Ltd into our company, deals basically in ISP business besides
other allied activity related to this business. Real Estate business is
linked to construction activities but has been identified as a separate
activity in view of its different nature. Long term Investment in
shares have also been treated as a separate activity. Agriculture
activities have also been identified as separate activities of the
company. Under Trading Division, cement from Pakistan is imported and
is sold off in India. Fractionally, the imported cement is consumed in
our own projects of construction activities / in Real Estate Business.
The Construction Division Segment operates through a single
geographical segment. Secondary/other segment disclosures have been
made accordingly.
11. EARNINGS PER SHARE (EPS)
Basic/Diluted Earnings per share(Rs in lacs)
12. DETAIL OF PROVISIONS AS PER AS-29
Balance as at April 1,2014 Provision made during the year
Provision paid/adjusted/ written off/back during the period Balance as
at 31st March 2015
13. Leases
The company has leased facilities for rent payable under cancellable
and non-cancellable operating leases arrangements with a lease term
ranging from one to nine years, which are subject to renewal at mutual
consent thereafter. The cancellable arrangements can be terminated by
either party after giving due notice. The lease rent
expenses recognized during the year amounts to Rs45.35 lacs (previous
year Rs45.49 lacs). The future minimum lease payments in respect of the
non-cancellable operating leases as at 31st March 2015 are:
14. RELATED PARTY DISCLOSURES:
Detail of transactions entered into with Related Parties during the
year as required by Accounting Standard-18 on "Related Party
Disclosures" issued by Institute of Chartered Accountants of India are
as under:-
Note:
1. Key management: Sh.R.K.Garg, Chairman, Sh.Avinash Sharma, Executive
Director, Sh.H.K.Singhal, Director
2. Enterprises over which Key Management Personal (KMP) are able to
exercise significant influence and with whom transactions have taken
place during the year:
1. Indian Acrylics Limited 2. Steel Strips Wheels Ltd
3. Relatives of the Key Management Personnel (with whom transactions
have taken place) Sh.R.K.Garg himself is Chairman of the company and Ms
Priya Garg who is daughter of Sh.R.K.Garg.
15. ADDITIONAL INFORMATION PERSUANT TO PROVISIONS OF PARAGRAPHS
5(viii)
OF PART II, SCHEDULE III, OF COMPANIES ACT, 2013p
Mar 31, 2014
1. Appeals have been filed against these awards and the matter is
pending in the High Courts. In terms of the interim order of the High
Courts, the Company has furnished securities of immovable properties
situated at village Raisaina (Haryana) belonging to S.S. Credits
Private Limited, S.A.Holdings Pvt. Ltd and Malwa Holding Pvt. Ltd and
its own property situated at Banur.Distt. Mohali (Pb) besides
undertaking by the company that these amounts shall be deposited back
in the courts in case decisions go against the company in final
verdicts. Suriety bonds of associates companies have also been
submitted. Accordingly, these amounts were considered as ''Secured
Loans'' instead of income as per the policy of the Company.
The company have also received f 1307.12 lacs from M/S Sutlej
Constructions Ltd (SCL), Manimajra, Chandigarh in previous years. SAB
Industries Ltd (SABIL) have entered into Joint Venture agreements with
SCL in connection with Arbitration cases of said company whereby SCL
and SABIL shall share the amount of award received, if any, equally
between them. The amounts so released in earlier years have been
released against furnishing of security by way of mortgaging land/title
deeds of lands both of SABIL and SCL and submission of surety bonds. As
the cases are subjudice and claims have been released against
submission of surety bonds/title deeds of lands, the amount received
has been treated as "Secured Loan" only as having been released against
the above said securities. The amount shall be treated as Income as
and when Surity Bonds/title deeds of land are released and cases are
decided by the Court finally. The outstanding balance received from SCL
stands at f 1307.12 lac for above cases as on 31.03.2014.
2. Note : a. Sales Tax provision has been made in the year 2009-10
against demand raised by Sales Tax Deptt.,Haryana related to
A.Y.1990-91 to 1993-94.
b. Provision for Bank Guarantees has been made against invoked BGs and
100% margin has been kept with State Bank of
Patiala,Sector-17C,Chandigarh. Now the cases are pending in various
courts.
3. Depreciation on Furniture and Fixtures, Vehicles and other
equipments has been charged as per rates specified in schedule XIV of
the Companies Act, 1956 as amended upto date on written down value
method.
4. However, depreciation, in our "Infotech Division", on Plant &
Machinery, Data Processing equipment, Furniture & Fixture and other
assets is provided on single shift basis, straight-line method as per
rates specified in Schedule XIV to the Companies Act, 1956 as amended
upto date.
5. Land as stated above, includes Agriculture Land valuing Rs. 12, 67,
41, 791.
6. Stocks of building materials and stores and shuttering material are
valued at cost. Inventory of Networking Equipments lying in the offices
& godowns is valued at cost price. Work-in-progress is valued on
proportionate basis where certified bills have been raised in the next
year, and on the best estimate basis by the management where certified
bills are not available Stocks of Buildings & Buildings under
construction have been valued at cost.
7. However, commission is not payable to Sh.Avinash Sharma, Executive
Director in view of the terms of his appointment and remuneration has
been paid to him as per provisions of schedule XIII of the Companies
Act,1956.
The Company has a defined benefit gratuity and Earned Leave 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. And accumulation of EL for Staff is upto 60
days.
The following tables summarize the components of net benefit expense
recognised in the Profit and Loss Account and the amounts recognised in
the balance sheet.
The Employee''s gratuity fund scheme managed by SAB Industries Ltd
Employees Group Gratuity Trust (Managed by LIC Of India) is a defined
benefit plan. The Present Value of obligation is determined based on
acturial valuation using the projected unit credit method which
recognises each period of service as giving rise to additional unit of
employee benefits entitlement and measures each unit separately to
build up the final obligation. The obligation for leave encashment is
recognised in the same manner as gratuity.
Net employee benefit expenses (recognised in Employee Cost)
8. CONTINGENT LIABILITIES
AS ON AS ON
31.03.2014 31.03.2013
(Rs. in lacs) (Rs. in lacs)
Counter Guarantees issued by the
company against 538.41 549.06
Bank Guarantees/FLC
9. In the opinion of the Board, the current assets, loans & advances,
if realised in the ordinary course of business, have the value on
realization at least equal to the amount as stated in the Balance
Sheet. The Stocks of building material, Raw material, finished goods
and other consumable goods have been valued at cost and wastes have
been valued at net realizable value and taken as certified by the
Management. The provision for all known liabilities is adequate and not
in excess of amount considered reasonably necessary.
10. Figures have been rounded off to the nearest rupee.
11. Previous year figures have been regrouped /rearranged wherever
considered necessary to make them comparable with those of current
year.
12. The company has filed claims arising out of contractual disputes
with various clients, which have not been accounted for in books of
accounts. Similarly, there are counter claims filed against the Company
by clients, which have also not been accounted for. It is difficult to
quantify the same, as these are at different stages of adjudication.
These shall be accounted for as and when they are accepted or on their
final decision and/or on their final settlement.
13. Sales Tax has been paid as per the Sales Tax returns filed. Any
additional liability arising out of pending Assessments shall be
provided for on the completion of Sale Tax Assessments.
14. Schedules 1 to 14 form an integral part of the Balance Sheet,
Profit & Loss Account and Cash Flow Statement.
15. The company has identified its business segments as its primary
reporting format which comprises of Construction Division, Real Estate
business, Infotech Division Investment business, Agriculture and
Trading Division. The main business is Construction activities.
Infotech Division, which has come into existence after merger of SAB
Infotech Ltd into our company, deals basically in ISP business besides
other allied activity related to this business. Real Estate business is
linked to construction activities but has been identified as a separate
activity in view of its different nature. Long term Investment in
shares have also been treated as a separate activity. Agriculture
activities have also been identified as separate activities of the
company. Under Trading Division, cement from Pakistan is imported and
is sold off in India. Fractionally, the imported cement is consumed in
our own projects of construction activities / in Real Estate Business.
The Construction Division Segment operates through a single
geographical segment. Secondary/other segment disclosures have been
made accordingly.
Mar 31, 2013
1. Appeals have been filed against these awards and the matter is
pending in the High Courts. In terms of the interim order of the High
Courts, the Company has furnished securities of immovable properties
situated at village Raisaina (Haryana) belonging to S.S. Credits
Private Limited, S.A.Holdings Pvt. Ltd and Malwa Holding Pvt. Ltd and
its own property situated at Banur.Distt. Mohali (Pb) besides
undertaking by the company that these amounts shall be deposited back
in the courts in case decisions go against the company in final
verdicts. Suriety bonds of associates companies have also been
submitted. Accordingly, these amounts were considered as ''Secured
Loans'' instead of income as per the policy of the Company.
The company have also received Rs. 1307.12 lacs from M/S Sutlej
Constructions Ltd (SCL), Manimajra, Chandigarh in previous years. SAB
Industries Ltd (SABIL) have entered into Joint Venture agreements with
SCL in connection with Arbitration cases of said company whereby SCL
and SABIL shall share the amount of award received, if any, equally
between them. The amounts so released in earlier years have been
released against furnishing of security by way of mortgaging land/title
deeds of lands both of SABIL and SCL and submission of surety bonds. As
the cases are subjudice and claims have been released against
submission of surety bonds/title deeds of lands, the amount received
has been treated as "Secured Loan" only as having been released against
the above said securities. The amount shall be treated as Income as and
when Surity Bonds/title deeds of land are released and cases are
decided by the Court finally. The outstanding balance received from SCL
stands at Rs. 1307.12 lac for above cases as on 31.03.2013.
2. * Trade Payables include a sum of Rs. Nil (Previous year Rs. Nil)
due to Micro and Small Undertakings, which are outstanding for more
than 45 days as at 31.03.2013.This information is required to be
disclosed under the Micro, Small and Medium Enterprises development Act
2006, as determined to the extent the parties have been identified on
the basis of information with the company.
** During the year under consideration, the company has received an
advance of Rs. 5.00 crores in pursuance to a MOU entered on its behalf
and on behalf of associates companies with a developer against the land
at Village Raisina,Gurgaon, Haryana.
3. * During the year 2004-05 the company had entered into a joint
venture, in Iran, with i) NPC International (a company incorporated in
London, England), ii) Arak Petrochemicals Co. Iran and iii) Bank Melli
Iran Investments Co., Iran, for setting up a gas based fertilizer plant
for which a subsidiary company under the name and style of LAVAN
CHEMICAL CO. IRAN had been incorporated. A sum of US $ 611028
(equivalent to s263.16 lacs) had been invested as Share Capital till
31.03.2012. During the year under consideration the whole of the
investments have been sold to M/S SAB Fertilizers Ltd,a wholly owned
subsidiary company, for a total consideration of Rs.1250.00 lacs. The
said Investments in SAB Industries Ltd, as such, stands Nil as on
31.03.2013
** During the F.Y. 2012-13, the company has further acquired 12500000
no of equity shares in SAB Fertilizers Pvt. Ltd. The whole investment
has been sold to Parus International FZE,AJMAN, UAE and the investment
in subsidiaries stands at Nil at the year end.
3. CONTINGENT LIABILITIES
AS ON AS ON
31.03.2013 31.03.2012
(Rs. in lacs) (Rs. in lacs)
Counter Guarantees issued by
the company against 549.06 549.06
Bank Guarantees/FLC
4. In the opinion of the Board, the current assets, loans & advances,
if realised in the ordinary course of business, have the value on
realization at least equal to the amount as stated in the Balance
Sheet. The Stocks of building material, Raw material, finished goods
and other consumable goods have been valued at cost and wastes have
been valued at net realizable value and taken as certified by the
Management. The provision for all known liabilities is adequate and not
in excess of amount considered reasonably necessary.
5. Figures have been rounded off to the nearest rupee.
6. Previous year figures have been regrouped /rearranged wherever
considered necessary to make them comparable with those of current
year.
7. The company has filed claims arising out of contractual disputes
with various clients, which have not been accounted for in books of
accounts. Similarly, there are counter claims filed against the Company
by clients, which have also not been accounted for. It is difficult to
quantify the same, as these are at different stages of adjudication.
These shall be accounted for as and when they are received/paid.
8. Sales Tax has been paid as per the Sales Tax returns filed. Any
additional liability arising out of pending Assessments shall be
provided for on the completion of Sale Tax Assessments.
9. Schedules 1 to 14 form an integral part of the Balance Sheet,
Profit & Loss Account and Cash Flow Statement.
10. The company has identified its business segments as its primary
reporting format which comprises of Construction Division, Real Estate
business, Infotech Division Investment business, Agriculture and
Trading Division. The main business is Construction activities.
Infotech Division, which has come into existence after merger of SAB
Infotech Ltd into our company, deals basically in ISP business besides
other allied activity related to this business. Real Estate business is
linked to construction activities but has been identified as a separate
activity in view of its different nature. Long term Investment in
shares have also been treated as a separate activity. Agriculture
activities have also been identified as separate activities of the
company. Under Trading Division, cement from Pakistan is imported and
is sold off in India. Fractionally, the imported cement is consumed in
our own projects of construction activities / in Real Estate Business.
The Construction Division Segment operates through a single
geographical segment. Secondary/other segment disclosures have been
made accordingly.
Note:
1. Key management: Sh.R.K. Garg, Chairman, Sh.Avinash Sharma,
Executive Director, Sh.H.K.Singhal, Director
2. Enterprises over which Key Management Personal (KMP) are able to
exercise significant influence and with whom transactions have taken
place during the year:
1. Indian Acrylics Ltd 2. Steel Strips Wheels Ltd
3. Steel Strips Infrastructures Ltd. 4. R.K.Garg & Sons (HUF)
5. SAB Udyog Ltd
3. Relatives of the Key Management Personnel (with whom transactions
have taken place) Sh.R.K.Garg himself is Chairman of the company, Also
Sh R.K.Garg is Karta of R.K.Garg & Sons (HUF) and Ms Priya Garg who is
daughter of Sh.R.K.Garg..
Mar 31, 2012
1. Appeals have been filed against these awards and the matter is
pending in the High Courts. In terms of the interim order of the High
Courts, the Company has furnished securities of immovable properties
situated at village Raisaina (Haryana) belonging to S.S. Credits
Private Limited, S.A.Holdings Pvt. Ltd and Malwa Holding Pvt. Ltd and
its own property situated at Banur.Distt. Mohali (Pb) besides
undertaking by the company that these amounts shall be deposited back
in the courts in case decisions go against the company in final
verdicts. Suriety bonds of associates companies have also been
submitted. Accordingly, these amounts were considered as ''Secured
Loans'' instead of income as per the policy of the Company.
The company have also received Rs. 1307.12 lacs from M/S Sutlej
Constructions Ltd (SCL), Manimajra, Chandigarh in previous years. SAB
Industries Ltd (SABIL) have entered into Joint Venture agreements with
SCL in connection with Arbitration cases of said company whereby SCL
and SABIL shall share the amount of award received, if any, equally
between them. The amounts so released in earlier years have been
released against furnishing of security by way of mortgaging land/title
deeds of lands both of SABIL and SCL and submission of surety bonds. As
the cases are subjudice and claims have been released against
submission of surety bonds/title deeds of lands, the amount received
has been treated as "Secured Loan" only as having been released against
the above said securities. The amount shall be treated as Income as and
when Surity Bonds/title deeds of land are released and cases are
decided by the Court finally. The outstanding balance received from SCL
stands at Rs. 1307.12 lac for above cases as on 31.03.2013.
2. * Trade Payables include a sum of Rs. Nil (Previous year Rs. Nil)
due to Micro and Small Undertakings, which are outstanding for more
than 45 days as at 31.03.2013.This information is required to be
disclosed under the Micro, Small and Medium Enterprises development Act
2006, as determined to the extent the parties have been identified on
the basis of information with the company.
** During the year under consideration, the company has received an
advance of Rs. 5.00 crores in pursuance to a MOU entered on its behalf
and on behalf of associates companies with a developer against the land
at Village Raisina,Gurgaon, Haryana.
3. * During the year 2004-05 the company had entered into a joint
venture, in Iran, with i) NPC International (a company incorporated in
London, England), ii) Arak Petrochemicals Co. Iran and iii) Bank Melli
Iran Investments Co., Iran, for setting up a gas based fertilizer plant
for which a subsidiary company under the name and style of LAVAN
CHEMICAL CO. IRAN had been incorporated. A sum of US $ 611028
(equivalent to s263.16 lacs) had been invested as Share Capital till
31.03.2012. During the year under consideration the whole of the
investments have been sold to M/S SAB Fertilizers Ltd,a wholly owned
subsidiary company, for a total consideration of Rs.1250.00 lacs. The
said Investments in SAB Industries Ltd, as such, stands Nil as on
31.03.2013
** During the F.Y. 2012-13, the company has further acquired 12500000
no of equity shares in SAB Fertilizers Pvt. Ltd. The whole investment
has been sold to Parus International FZE,AJMAN, UAE and the investment
in subsidiaries stands at Nil at the year end.
4. CONTINGENT LIABILITIES
AS ON AS ON
31.03.2012 31.03.2011
(Rs. in lacs) (Rs. in lacs)
Counter Guarantees issued by 549.06 742.77
the company against
Bank Guarantees/FLC
5. In the opinion of the Board, the current assets, loans & advances,
if realised in the ordinary course of business, have the value on
realization at least equal to the amount as stated in the Balance
Sheet. The Stocks of building material, Raw material, finished goods
and other consumable goods have been valued at cost and wastes have
been valued at net realizable value and taken as certified by the
Management. The provision for all known liabilities is adequate and not
in excess of amount considered reasonably necessary.
6. Figures have been rounded off to the nearest rupee.
7. Previous year figures have been regrouped /rearranged wherever
considered necessary to make them comparable with those of current
year.
8. The company has filed claims arising out of contractual disputes
with various clients, which have not been accounted for in books of
accounts. Similarly, there are counter claims filed against the Company
by clients, which have also not been accounted for. It is difficult to
quantify the same, as these are at different stages of adjudication.
These shall be accounted for as and when they are received/paid.
9. Sales Tax has been paid as per the Sales Tax returns filed. Any
additional liability arising out of pending Assessments shall be
provided for on the completion of Sale Tax Assessments.
10. Schedules 1 to 13 form an integral part of the Balance
Sheet,Profit & Loss Account and Cash Flow Statement.
11. The company has identified its business segments as its primary
reporting format which comprises of Construction Division, Real Estate
business, Infotech Division Investment business, Agriculture and Export
Division and Trading Division. The main business is Construction
activities. Infotech Division, which has come into existence after
merger of SAB Infotech Ltd into our company, deals basically in ISP
business besides other allied activity related to this business. Real
Estate business is linked to construction activities but has been
identified as a separate activity in view of its different nature. Long
term Investment in shares have also been treated as a separate
activity. Agriculture activities and Export Trading have also been
identified as separate activities of the company. Under Trading
Division, cement from Pakistan is imported and is sold off in India.
Fractionally, the imported cement is consumed in our own projects of
construction activities / in Real Estate Business. The Construction
Division Segment operates through a single geographical segment.
Secondary/other segment disclosures have been made accordingly.
Note:
1. Key management: Sh.R.K.Garg, Chairman, Sh.Avinash Sharma, Executive
Director, Sh.H.K.Singhal, Director (Ms Priya Garg has since resigned as
Executive Director w.e.f. 11.11.2011.
2. Enterprises over which Key Management Personal (KMP) are able to
exercise significant influence and with whom transactions have taken
place during the year:
1. Indian Acrylics Ltd 2. Steel Strips Wheels Ltd
3. Steel Strips Infrastructures
Ltd 4. R.K.Garg & Sons (HUF)
5. SAB Udyog Ltd 6. Munak Financers (p) Ltd
7. Steel Strips Industries Ltd 8. Steel Strips Financers (P) Ltd
9.Steel Strips Holdings (P) Ltd 10.Munak Investment (P) Ltd
3. Relatives of the Key Management Personnel (with whom transactions
have taken place) Sh.R.K.Garg himself is Chairman of the company, Also
Sh R.K.Garg is Karta of R.K.Garg & Sons (HUF).
Mar 31, 2011
1. Contingent liabilities (Rs. in lacs)
AS ON AS ON
31.03.2011 31.03.2010
Counter Guarantees issued by the Company 742.77 866.42
against Bank Guarantees/FLC
2. In the opinion of the Board, the current assets, loans & advances,
if realised in the ordinary course of business, have the value on
realization at least equal to the amount as stated in the Balance
Sheet. The Stocks of building material, Raw material, finished goods
and other consumable goods have been valued at cost and wastes have
been valued at net realizable value and taken as certified by the
Management. The provision for all known liabilities is adequate and not
in excess of amount considered reasonably necessary.
3. Figures have been rounded off to the nearest rupee.
4. Previous year figures have been regrouped /rearranged wherever
considered necessary to make them comparable with those of current
year.
5. Sundry creditors include a sum of Rs. Nil (Previous year Rs.Nil)
due to Micro and Small Undertakings, which are outstanding for more
than 45 days as at 31.03.2011.This information is required to be
disclosed under the Micro, Small and Medium Enterprises development Act
2006, as determined to the extent the parties have been identified on
the basis of information with the company.
6. The Company has filed claims arising out of contractual disputes
with various clients, which have not been accounted for in books of
accounts. Similarly, there are counter claims filed against the Company
by clients, which have also not been accounted for. It is difficult to
quantify the same, as these are at different stages of adjudication.
These shall be accounted for as and when they are received/paid.
7. Sales Tax have been paid as per the Sales Tax returns filed. Any
additional liability arising out of pending Assessments shall be
provided for on the completion of Sale Tax Assessment.
8. Schedules 1 to 16 form an integral part of the Balance Sheet,
Profit & Loss Account and Cash Flow Statement.
9. Work done has been taken on the basis of bills certified by the
Clients and includes the arbitration awards received during the year.
Work in Progress has been taken on the basis of best estimates by the
Management.
10. The Company had received the following amounts in earlier years
against the claims :
* FROM DELHI DEVELOPMENT AUTHORITY 16.29 LACS
* FROM U.P.STATE GOVERNMENT 170.66 LACS
* FROM PB.PWD HOSHIARPUR 12.14 LACS
* FROM PB. PWD LUDHIANA 25.93 LACS
* FROM H.P.S.E.B. SHIMLA 100.13 LACS
TOTAL 325.15 LACS
11. Appeals have been filed against these awards and the matter is
pending in the High Courts. In terms of the interim order of the High
Courts, the Company has furnished securities of immovable properties
situated at village Raisaina (Haryana) belonging to S.S. Credits
Private Limited, S.A.Holdings Pvt. Ltd and Malwa Holding Pvt. Ltd and
its own property situated at Banur.Distt. Mohali (Pb) besides
undertaking by the company that these amounts shall be deposited back
in the courts in case decisions go against the company in final
verdicts. Suriety bonds of associates companies have also been
submitted. Accordingly, these amounts were considered as ''Secured
Loans'' instead of income as per the policy of the Company.However,
securities from U.P.State Government and Delhi Development Authority
against the claims of Rs.14.64 lac and 16.28 lac respectively were
released during the year, and, accordingly, the funds received against
these claims in earlier years have been credited to Profit & Loss
Account during the year. The balance amount of Rs.294.22 lac is shown
as ''Secured Loan'' as at 31.03.2011.
The company have also received Rs.1307.12 lacs from M/S Sutlej
Constructions Ltd (SCL), Manimajra, Chandigarh in previous years. The
Company has entered into agreements with the said company to the effect
that our company (SABIL) shall process, initiate and look after the
Arbitration cases of said company as Joint Venture and SCL and SABIL
shall share the amount of award received, if any, equally between them.
The amounts so released in earlier years have been released against
furnishing of security by way of mortgaging land/title deeds of lands
both of SABIL and SCL and submission of surety bonds. As the cases are
subjudice and claims have been released against submission of surety
bonds/title deeds of lands, the amount received has been treated as
"Secured Loan" only as having been released against the above said
securities. The amount shall be treated as Income as and when Surity
Bonds/title deeds of land are released and case is decided by the Court
finally. The outstanding balance received from SCL stands at 1307.12
lac for above cases as on 31.03.2011.M/S Sutlej Constructions Ltd has
further received sums though Court, free of any security,during the
year,with our company''s share at Rs.160.19 in the Joint Venture. This
amount has been directly credited to Profit & Loss Account being free
of any security.
12. The company has identified its business segments as its primary
reporting format which comprises of Construction Division, Real Estate
business, Infotech Division Investment business, Agriculture and Export
Division and Trading Division. The main business is Construction
activities. Infotech Division, which has come into existence after
merger of SAB Infotech Ltd into our company, deals basically in ISP
business besides other allied activity related to this business. Real
Estate business is linked to construction activities but has been
identified as a separate activity in view of its different nature. Long
term Investment in shares have also been treated as a separate
activity. Agriculture activities and Export Trading have also been
identified as separate activities of the company. The Trading Division
introduced during the previous year wherein cement from Pakistan is
imported and is sold off in India. Fractionally, the imported cement is
consumed in our own projects of construction activities / in Real
Estate Business. The Construction Division Segment operates through a
single geographical segment. Secondary/other segment disclosures have
been made accordingly.
13. In compliance with AS 22 issued by ICAI on Accounting for the
Taxes on Income, the company has recognised Deferred Tax Assets
amounting to Rs.109451/- for the year under consideration. The total
Deferred Tax Assets stands at Rs.4072228/- as on 31.03.11. In the
opinion of the management, considering the future profits of the
company, it will be recovered in future.
14. Note :
1. Key Management Personal :
Sh. R.K. Garg, Chairman, Ms. Priya Garg, Executive Director, Sh.
Avinash Sharma, Executive Director, Sh. H.K. Singhal, Director
2. Enterprises over which Key Management Personal (KMP) are able to
exercise significant influence and with whom transactions have taken
place during the year :
1. Indian Acrylics Ltd. 2. Steel Strips Wheels Ltd.
3. Steel Strips Infrastructures Ltd. 4. R.K.Garg & Sons (HUF)
5. SAB Udyog Ltd. 6. Munak Financers (P) Ltd.
7. Steel Strips Industries Ltd. 8. Steel Strips Financers (P)
Ltd.
9. Steel Strips Holdings (P) Ltd. 10. Munak Investment (P) Ltd.
3. Relatives of the Key Management Personnel (with whom transactions
have taken place) Mrs Sunena Garg is related to Sh.R.K.Garg (wife of
Sh.R.K.Garg), Sh.R.K.Garg himself is Chairman of the company, Also Sh
R.K.Garg is Karta of R.K.Garg & Sons (HUF) Sh. Dheeraj Garg is son of
Sh.R.K.Garg.
15. The company incorporated a GBC-II category Wholly Owned Subsidiary
(WOS) Company, under the name and style of Munak International Trading
Corporation in Mauritius. The company has been allotted 1885 shares of
US$ 1/- each and the same has been shown in the schedule of
Investments. The company has not undertaken any business so far. The
latest copy of Balance Sheet of WOS as at 31.12.2010 is attached.
16. During the year 2004-05 the company had entered into a joint
venture, in Iran, with i) NPC International (a company incorporated in
London, England), ii) Arak Petrochemicals Co. Iran and iii) Bank Melli
Iran Investments Co., Iran, for setting up a gas based fertilizer plant
for which a subsidiary company under the name and style of LAVAN
CHEMICAL CO. IRAN had been incorporated. A sum of US $ 611028
(equivalent to Rs.263.16 lacs) had been invested as Share Capital till
31.03.2011, and has been shown in the Schedule of Investments. However,
latest Balance Sheet as on 20.03.2011 is not attached as it is under
preparation.
Mar 31, 2010
1. Contingent liabilities (Rs. in lacs)
AS ON AS ON
31.03.2010 31.03.2009
a) Counter Guarantees issued by the
Company against Bank Guarantees/FLC 866.42 875.06
2. In the opinion of the Board, the current assets, loans & advances,
if realised in the ordinary course of business, have the value on
realization at least equal to the amount as stated in the Balance
Sheet. The Stocks of building material, Raw material, finished goods
and other consumable goods have been valued at cost and wastes have
been valued at net realizable value and taken as certified by the
Management. The provision for all known liabilities is adequate and not
in excess of amount considered reasonably necessary.
3. Figures have been rounded off to the nearest rupee.
4. Previous year figures have been regrouped /rearranged wherever
considered necessary to make them comparable with those of current
year.
5. Sundry creditors include a sum of Rs. Nil (Previous year Rs.Nil)
due to Micro and Small Undertakings, which are outstanding for more
than 45 days as at 31.03.2010.This information is required to be
disclosed under the Micro, Small and Medium Enterprises development Act
2006, as determined to the extent the parties have been identified on
the basis of information with the Company.
6. The Company has filed claims arising out of contractual disputes
with various clients, which have not been accounted for in books of
accounts. Similarly, there are counter claims filed against the Company
by clients, which have also not been accounted for. It is difficult to
quantify the same, as these are at different stages of adjudication.
These shall be accounted for as and when they are received/paid.
7. Sales Tax have been paid as per the Sales Tax returns filed. Any
additional liability arising out of pending Assessments shall be
provided for on the completion of Sale Tax Assessment.
8. Schedules 1 to 16 form an integral part of the Balance Sheet,Profit
& Loss Account and Cash Flow Statement.
9. Work done has been taken on the basis of bills certified by the
Clients and includes the arbitration awards received during the year.
Work in Progress has been taken on the basis of best estimates by the
Management.
10. Appeals have been filed against these awards and the matter is
pending in the High Courts. In terms of the interim order of the High
Courts, the Company has furnished securities of immovable properties
situated at village Raisaina (Haryana) belonging to S.S. Credits
Private Limited, S.A.Holdings Pvt. Ltd and Malwa Holding Pvt. Ltd and
its own property situated at Banur.Distt. Mohali (Pb) besides
undertaking by the Company that these amounts shall be deposited back
in the courts in case decisions go against the Company in final
verdicts. Suriety bonds of associates companies have also been
submitted. Accordingly, these amounts have been considered as ''Secured
Loans'' instead of income as per the policy of the Company.
During the year Company have received Rs.1451099/- from HPSEB,Shimla
through Hon''ble Himachal High Court,Shimla on account of arbitration
claim in Gaj Hydel Project. Since the party has gone in appeals against
these cases and the matter is sub-judice in the Hon''ble High Court, the
amount has been considered as Secured Loan.
11. The Company have also received Rs.1377.70 lacs from M/S Sutlej
Constructions Ltd (SCL), Manimajra, Chandigarh in previous years.The
Company has entered into agreements with the said Company to the effect
that our Company (SABIL) shall process, initiate and look after the
Arbitration cases of said Company and shall also incur all legal
expenses while processing the said Arbitration cases. Against this, SCL
and SABIL shall share the amount of award received, if any, equally
between them. The amounts so released in earlier years have been
released against furnishing of security by way of mortgaging land/title
deeds of lands both of SABIL and SCL and submission of surety bonds. As
the cases are subjudice and claims have been released against
submission of surety bonds/title deeds of lands, the amount received
has been treated as "Secured Loan" only as having been released against
the above said securities. The amount shall be treated as Income as and
when Surity Bonds/title deeds of land are released and case is decided
by the Court finally.However, during the year,Company have received
Rs.76,76,367/- from Sutlej Constructions Ltd on account of our share in
case of SCL VS State of Punjab (SYL), which has been considered as
income as the SLP of SYL has been dismissed by the Hon''ble Supreme
Court. Similarly an amount of Rs.70,58,177/- received from Sutlej
Constructions Ltd in the year 2001-02 on account of our share of claim
from Haryana Power Generation Corporation Ltd (HPGCL), Yamunanagar,
earlier considered as Secured Loans has also been treated as income as
SLP of Haryana Power Generation Corporation Ltd (HPGCL) has also been
dismissed by the Apex Court.
12. The Company has identified its business segments as its primary
reporting format which comprises of Construction Division, Real Estate
business, Infotech Division Investment business, Agriculture and Export
Division and Trading Division. The main business is Construction
activities. Infotech Division, which has come into existence after
merger of SAB Infotech Ltd into our Company, deals basically in ISP
business besides other allied activity related to this business. Real
Estate business is linked to construction activities but has been
identified as a separate activity in view of its different nature. Long
term Investment in shares have also been treated as a separate
activity. Agriculture activities and Export Trading have also been
identified as separate activities of the Company. The Trading Division
introduced during the previous year wherein cement from Pakistan is
imported and is sold off in India. Fractionally, the imported cement is
consumed in our own projects of construction activities / in Real
Estate Business. The Construction Division Segment operates through a
single geographical segment. Secondary/other segment disclosures have
been made accordingly.
Note:
1. Key Management Personal :
Sh. R.K. Garg, Chairman, Sh. Avinash Sharma, Executive Director, Sh.
H.K. Singhal, Director
2. Enterprises over which Key Management Personal (KMP) are able to
exercise significant influence and with whom transactions have taken
place during the year :
1. Indian Acrylics Ltd. 2. Steel Strips Wheels Ltd.
3. Steel Strips Infrastructures Ltd. 4. R.K.Garg & Sons (HUF)
5. SAB Udyog Ltd. 6. Munak Financers (P) Ltd.
7. Steel Strips Industries Ltd. 8. Steel Strips Financers (P)
Ltd.
9. Steel Strips Holdings (P) Ltd. 10. Munak Investment (P) Ltd.
3. Relatives of the Key Management Personnel (with whom transactions
have taken place) Mrs Sunena Garg is related to Sh.R.K.Garg (wife of
Sh.R.K.Garg), Sh.R.K.Garg himself is Chairman of the Company, Also Sh
R.K.Garg is Karta of R.K.Garg & Sons (HUF) Sh. Dheeraj Garg is son of
Sh.R.K.Garg.
13. The Company incorporated a GBC-II category Wholly Owned Subsidiary
(WOS) Company, under the name and style of Munak International Trading
Corporation in Mauritius. The Company has been allotted 1885 shares of
US$ 1/- each and the same has been shown in the schedule of
Investments. The Company has not undertaken any business so far. The
latest copy of Balance Sheet of WOS as at 31.12.2009 is attached.
14. During the year 2004-05 the Company had entered into a joint
venture, in Iran, with i) NPC International (a Company incorporated in
London, England), ii) Arak Petrochemicals Co. Iran and iii) Bank Melli
Iran Investments Co., Iran, for setting up a gas based fertilizer plant
for which a subsidiary Company under the name and style of LAVAN
CHEMICAL CO. IRAN has been incorporated. A sum of US $ 611028
(equivalent to Rs.263.16 lacs) had been invested as Share Capital till
31.03.2010, and has been shown in the Schedule of Investments. However,
latest Balance Sheet as on 20.03.2010 is not attached as it is under
preparation.
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