Mar 31, 2018
1. SEGMENT REPORTING
The Company is in the business of refining, manufacturing and marketing of precious metal which is considered as the only reportable segment. The Company does not have any geographical segments. Hence, there are no separate reportable segments as per Ind AS 108 on "Operating Segments".
2. MICRO, SMALL AND MEDIUM ENTERPRISES
The Company has no dues to Micro, Small and Medium enterprises as at 31st March, 2018, on the basis of information provided by the parties and available on record. Further, there is no interest paid / payable to micro and small enterprises during the year.
3. EMPLOYEE BENEFITS
As per Ind AS 19 "Employee Benefits", the disclosures are as under :
A. Defined Benefit Plans
The present value of gratuity obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave benefits (non funded) is also recognized using the projected unit credit method.
4. Balances appearing in the financial statements are pending confirmation and reconciliation.
5. Interest expense is net of interest income of ''/Millions 31.05 (296.13).
6. The Company uses Gold Forward exchange contracts to hedge against its foreign currency exposure relating to the underlying transactions and firm commitments. The foreign currency exposure not hedged at the year-end is as under.
B. Defined Contribution Plan :
"Contribution to provident and other funds" is recognized as an expenses in Note 29 "Employee benefits expenses" of the Statement of Profit & Loss Account.
7. Disclosures as required by Regulations 34(3) of the Listing Agreement
B None of the loans have been utilized to make investments in the shares of the company.
8. RELATED PARTY DISCLOSURES Holding Company
Jayneer Infrapower & Multiventures Pvt Ltd(formally known as Jayneer Capital Pvt. Ltd.)
Wholly Owned Subsidiaries
Shirpur Gold Mining Company Pvt Ltd - Singapore
Zee Gold DMCC - Dubai
Step down Subsidiary
Precious Metals Mining and Refining Limited - Papua New Guinea and
Metalli Exploration and Mining - Bamako - Mali
Other related parties
Diligent Media Corporation Limited from 4th December 2017 Jay Properties Pvt. Ltd.
Directors / Key Management Personnel
Shri Subhash Pareek (Manager)
9. Robbery of Unrefined Gold in transit
As reported in the preceding year''s Annual Report, on 24th April 2015, 60 Kgs of Gold, during transit to factory at Shirpur, was robbed near Nashik, Maharashtra, of which the seizure made was 13.6939 kgs including 2 kgs from site of robbery and other assets of the robbers, were in Police Custody. On 19th April 2017, the company has taken possession of the said seized 13.6939 Kgs of Gold pursuant to the Order of the Hon''ble Session Court. The said seized gold was accounted in the preceding year as part of inventories and is valued as per Ind AS 2. The Claim for balance gold of 46.3062 Kgs valued at ''1241.71 Lakhs including expenses of '' 16.52 lakh is pending for settlement with the Insurance Company and is accounted as "Claims Receivables" under Other Current Assets. On Finalization of Claim by the insurance company, the difference, if any, between the amount claimed and the actual claim received, which the management does not expect to be material will be charged to Statement of Profit & Loss.
10. Corporate Social Responsibility
As per Section 135 of the Companies Act, 2013, a CSR Committee has been formed by the Company. The Company is required to spend Rs, Millions 2.82 for the year against which Rs, Millions NIL has been spent on activities specified in Schedule VII of the Companies Act, 2013. The accumulated balance of such unspent amount is Rs, 7.41 Millions (Rs, 4.59 Millions)
11. First Time Adoption of Ind AS Transition to Ind AS
These are the Company''s first Financial statements prepared in accordance with Ind AS. The accounting policies set out in Note 3 have been applied in preparing the financial statements for the year ended March 31, 2018, the comparative information presented in these financial statements for the year ended March 31, 2017 and in the preparation of an opening Ind AS standalone balance sheet at April 01, 2016 (the date of transition). In preparing its opening Ind AS standalone balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP). An explanation of how the transition from previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows is set out in the following tables and notes.
A. Exemptions and exceptions availed
Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.
Use of deemed cost for investments in subsidiaries, jointly ventures and associates
The balance of the investment in subsidiaries and joint controlled entities at the date of transition to Ind AS, determined in accordance with the previous GAAP as the deemed cost of the investment at initial recognition.
B. Ind AS mandatory exceptions Estimates
An entity''s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.
Ind AS estimates as at April 01, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP
Classification and measurement of financial assets and liabilities
The classification and measurement of financial assets will be made considering whether the conditions as per Ind AS 109 are met based on facts and circumstances existing at the date of transition.
Financial assets can be measured using effective interest method by assessing its contractual cash flow characteristics only on the basis of facts and circumstances existing at the date of transition and if it is impracticable to assess elements of modified time value of money i.e. the use of effective interest method, fair value of financial asset at the date of transition shall be the new carrying amount of that asset. The measurement exemption applies for financial liabilities as well.
Applying a requirement is impracticable when an entity cannot apply it after making every reasonable effort to do so. It is impracticable to apply the changes retrospectively if:
a) The effects of the retrospective application or retrospective restatement are not determinable;
b) The retrospective application or restatement requires assumptions about what management''s intent would have been in that period
The retrospective application or retrospective restatement requires significant estimates of amounts and it is impossible to distinguish objectively information about those estimates that existed at that time.
12. Recent accounting pronouncement
Standard issued but not yet effective
In March 2018, the Ministry of Corporate Affairs (MCA) issued the Companies (Indian Accounting Standards) Amendment Rules, 2018, notifying Ind AS 115, Revenue from Contract with Customers. The amendments are in line with recent amendments made by International Accounting Standard Board (IASB). This amendment is applicable to the Company from 1 April 2018. The Company will be adopting the amendments from their effective date.
Ind AS 115, Revenue from Contracts with Customers:
I nd AS 115 supersedes Ind AS 11, Construction Contracts and Ind AS 18, Revenue. Ind AS 115 requires an entity to report information regarding nature, amount, timing and uncertainity of revenue and cash flows arising from a contract with customers. The principle of Ind AS 115 is that an entity should recognize revenue that demonstrates the transfer of promised goods and services to the customer at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The standard can be applied either retrospectively to each prior period presented or can be applied retrospectively with recognition of cumulative effect of contracts that are not completed contracts at the date of initial application of standard.
Based on the preliminary assessment performed by the Company, the impact of application of the Standard is not expected to be material.
13. No restatement under Ind AS 32 or 109 has been considered for Unsecured Interest free Loan of '' 4499.00 Lakhs received from a body corporate under Essel Group and from other deposits of '' 152.00 Lakhs.
14 Prior Year Comparatives
Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classifications / disclosures.
15. Figures in brackets are for previous year unless otherwise stated.
Mar 31, 2016
The Export obligation under EPCG licenses issued in the year 2002, 2012 & 2014 is completed and the redemption of licenses is in process.
**Sales Tax Matters under appeal for the FY- 2004-05 & FY-2007-08 and stay granted. Against demand of ''/Millions 1.46, payment of ''/Millions 0.30 is deposited.
*** income tax demands mainly include appeals filed by the Company before various appellate authorities against the disallowance of expenses / claims etc. The management is of the opinion that its tax cases will be decided in its favour and hence no provision is considered at this stage.
1. MVAT collected till the year end under Sales Tax incentive Scheme of 1993 by the Government of Maharashtra, (Scheme PSi-1993) is considered in the Accounts as Deferred Sales Tax Liability for the years ended 31st March 2011 to 31st March 2016 aggregating to ''/Millions 904.89 is repayable in five respective equal annual installments starting from financial year 2021-22 to 2026-27. However, during the year the said liability has been assigned under an Agreement for Debt Defeasancing dated 31.03.2016 in respect of assignment of Deferred Sales Tax (MVAT entitlement) collection of ''/ Millions 904.89 to a body corporate for a consideration at Net Present value of ''/ Millions352.06 and the difference of ''/ Millions 552.83 between the such collection and consideration paid has been credited to ''Capital Reserve''
2. interest expense is net of interest income of ''/ Millions 78.65 (59.75).
3. The Company uses Gold Forward exchange contracts to hedge against its foreign currency exposure relating to the underlying transactions and firm commitments. The foreign currency exposure not hedged at the year end is as under.
4. SEGMENT REPORTING
The Company is in the business of refining, manufacturing and marketing of precious metal which is considered as the only reportable segment. The Company does not have any geographical segments. Hence, there are no separate reportable segments as per AS-17 on "Segment Reporting" notified under the Companies (Accounting Standards) Rules, 2006.
5. MICRO, SMALL AND MEDIUM ENTERPRISES
The Company has no dues to Micro, Small and Medium enterprises as at 31st March, 2016, on the basis of information provided by the parties and available on record. Further, there is no interest paid / payable to micro and small enterprises during the year.
6. EMPLOYEE BENEFITS
As per Accounting Standard 15 "Employee Benefits", the disclosures are as under :
A. Defined Benefit Plans
The present value of gratuity obligation is determined based on actuarial valuation using the Projected Unit Credit method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave benefits (non funded) is also recognized using the projected unit credit method.
B. Defined Contribution Plan :
"Contribution to provident and other funds" is recognized as an expenses in Note 24 "Employee benefits expenses" of the Statement of Profit & Loss Account.
7. Disclosures as required by Regulations 34(3) of the Listing Agreement
A Loans and advances given to Subsidiary
B None of the loanees have made investments in the shares of the company.
8. RELATED PARTY DISCLOSURES List of Related Parties Holding Company Jayneer Capital Pvt. Ltd.
Directors / Key Management Personnel
Shri Amit Goenka (Non-Executive Chairman), Shri Subhash
Pareek (manager)
Wholly Owned Subsidiaries
Shirpur Gold mining Company Pvt Ltd - Singapore
Zee Gold DMCC - dubai
Step down Subsidiary
Precious Metals Mining and Refining Limited - Papua New Guinea incorporated on 11.04.2015
Other related parties with whom transaction have taken place and balance outstanding as on the last day of the year diligent Media Corporation Limited - (up to 24.11.2015) Related party Transactions during the year
9. ROBBERY OF UNREFINED GOLD IN TRANSIT
On 24th April 2015, 60 Kgs of Gold, during transit to factory at Shirpur, was robbed near Nashik, Maharashtra. Of the said robbed gold, the seizure so far made by the Crime Branch is 11.433 kgs and other assets of the robbers. Thus the total gold under possession of the police is 13.433 kgs including 2kgs gold recovered from robbery site on the date of robbery. Legal procedure for repossession of assets under police custody is in progress. The said Gold of 13.433 Kgs has been considered in closing inventories and valued at lower of cost or realizable value and shown in books as lying with the law enforcing agency, pending repossession. investigation by law enforcing agencies is in progress for the balance gold. The company has also lodged on account claim of the lost gold with the insurance company. On account insurance claim for the balance of 46.567 kgs of gold valued at ''/Millions 112.29, is accounted as "Claims Receivables" under Other Current Assets. On finalization of claim by the insurance company, post final investigation report by crime branch, the difference, if any, between the amount claimed and the actual claim received, which the management does not expect to be material, will be charged to Statement of Profit & Loss.
10. corporate social responsibility
As per Section 135 of the Companies Act, 2013, a CSR Committee has been formed by the Company. The Company is required to spend Rs./Millions 1.91 for the year against which Rs./Millions 0.5 has been spent on activities specified in Schedule Vii of the Companies Act, 2013.
11. prior year comparatives
Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classifications / disclosures.
12. Figures in brackets are for previous year unless otherwise stated.
Mar 31, 2015
CORPORATE INFORMATION
Shirpur Gold Refinery Limited is incorporated in the state of
Maharashtra, India. The Company has been in the business of
manufacturing and trading of gold bars, gold coins, gold jewellery and
export of gold jewellery.
(a) Terms/Rights attached to Equity Shares
The company has only one class of shares referred to as equity shares
having a par value of Rs. 10 per share. All the shares are ranking pari-
passu in all respect. Each holder of equity share is entitled to one
vote per share. As per the Companies Act, 1956, the holders of equity
shares will be entitled to receive remaining assets of the company,
after distribution of all preferential amounts in the event of
liquidation of the company. However no such preferential amounts exist
currently. The distribution will be in proportion to the number of
equity shares held by the Shareholders.
(b) 13,574,202 Equity Shares of Rs. 10/- each fully paid up out of
issued, subscribed and paid up share capital were alloted are without
payments being received in cash in the preceding five years pursuant to
the Scheme of amalgamation as approved by the Hon'ble Bombay High Court
vide order dated 11th June, 2010.
(c) Neither bonus shares are issued nor any shares bought back during
the five years preceding 31st March 2015.
2. CONTINGENT LIABILITIES AND COMMITMENTS
Contingent Liabilities (Rs Millions)
Particulars 2015 2014
1 Estimated amount of Export obligation to be
fulfilled in terms of Duty saved value against 1,930.85 4034.21
Import of Plant and Machinery under EPCG up to
2014, 2020 & 2019
2 Claims against the Company not acknowledged
as debt Sales Tax Matters in Dispute under appeal 1.46 1.46
for the FY- 2004-05 & FY- 2007-08 and stay granted
against demand of Rs./Millions 1.46
on payment of Rs./Millions 0.30 is deposited.
a) *The company had imported at concessional rate of duty Plant &
Machineries during 2000, 2001 and 2002 against three licenses issued
under Export & Import Policy 1997-2002 by the Government of India, with
an obligation to export five times of the CIF value of Capital Goods
under EPCG Scheme on FOB basis within a period of eight years from the
date of issue of such licenses. However, in view of discontinuation of
manufacturing operations during financial years 2004-05 till 10th July
2010 the said obligations could not be fulfilled. The company had been
sanctioned changed method of quantification of such obligations from
CIF Value to FOB value to total duty saved method and has also received
extension of time for fulfillment of such obligations in respect of all
licenses from the competent authority. Such export obligations are now
required to be fulfilled during the period from 2012 to 2014, as
stipulated in the respective licenses. The Company has applied for the
further extension of export obligation for the period of one year from
2014 to 2015.
The company has fulfilled the export obligation by exporting gold
jewellery in respect of two of the licenses (issued during 2001 and
2002) as on date of signing of the Balance Sheet where it was required
to be completed by 2012 and 2013.
The export obligation under other licenses is being fulfilled by
continuing exports. Considering the above, export obligation remaining
to be fulfilled as on date of signing of Financial Statement is
Rs./Millions 315.87.
** (1) The company had imported at concessional rate of duty Plant &
Machineries during 2012 against two licenses issued under Foreign Trade
Policy 2009-2014 by the Govt. of India, with an obligation to export
eight times of the duty saved value of Capital Goods under EPCG Scheme
on FOB basis within a period of eight years from the date of issue of
such licenses. Such export obligations are now required to be fulfilled
during the period from 2012 to 2020, as stipulated in the respective
licenses. Export obligation remaining to be fulfilled as on date of
signing of Financial Statement is Rs./ Millions 49.06.
(2) on 29.12.2014 and 01.01.2015 the company has obtained two EPCG
Licenses under Foreign Trade Policy 2009-2014 to import Plant and
Machineries at Nil rate of duty , with an obligation to export six
times of the duty saved value of capital Goods under EPCG Scheme on FOB
basis within a period of six years from the date of issue of such
licenses. Such export obligations are now required to be fulfilled
during the period from 2014 to 2020, as stipulated in the respective
licenses. Export obligation remaining to be fulfilled as on date of
signing of Financial Statement is Rs./Millions 47.39.
***The company had imported at concessional rate of duty Plant &
Machineries during 2013 against one licenses issued under Foreign Trade
Policy 2009-2014 by the Government of India, with an obligation to
export six times of the duty saved value of Capital Goods under EPCG
Scheme on FOB basis within a period of six years from the date of issue
of such licenses. Such export obligations are now required to be
fulfilled during the period from 2012 to 2019, as stipulated in the
respective licenses. Export obligation remaining to be fulfilled as on
date of signing of Financial Statement is Rs./ Millions 8.25.
b) The Income tax department has filed an appeal before Hon'ble Bombay
High Court against the order of the Income Tax Appellate Tribunal in
favour of the Company setting aside the penalty of Rs./Millions 111.36
levied under section 271(1)(c) of the Income Tax Act 1961 by Assessing
Officer, for the Assessment year 2007-08 and is pending admission by
the said High Court.
c) Income tax Assessment has been completed up to Assessment Year
2012-13 and there are no demand pending, except disputed demand of
Rs./Millions 3.94 for Assessment year 2001-02 and Rs./Millions 157.92 for
Assessment year 2008-09 pending hearing and disposal by appellate
authorities.
3. a. IMPAIRMENT OF FIXED ASSETS
The Company has assessed at Balance Sheet date, the assets pertaining
to manufacturing facilities at Shirpur, Dhule in Maharashtra, as to
their impairment. On the basis of such assessment, it is opined that
the recoverable amount or fair value of such assets are more than their
carrying values, hence there is no impairment of assets, to be provided
for.
b. DEPRECIATION AND AMORTISATION
Tangible assets
Consequent to the enactment of the Companies Act, 2013 and its
applicability for accounting periods commencing after April 1, 2014,
depreciation on tangible fixed assets is provided on straight line
method as per the useful life prescribed by Schedule II to the
Companies Act, 2013 and or otherwise as stated herein before. The said
change has resulted in reduction of assets by Rs.7.55 millions and has
also affected reserves of the company. Effect in the reserves was given
as per the transitional provisions specified in the Companies Act,
2013.
The company has ascertained useful lives based on technological
upgradation, practical experience and replacement cycle, in the
following cases where actual estimated useful life of assets as
determined by the management is different than as prescribed by
Schedule II to the Companies Act, 2013 :
Depreciation on additions to assets or on sale/discardment of assets,
is calculated pro-rata from the month of such addition or upto the
month of such sale/ discardment, as the case may be.
Intangible assets
Intangible assets are amortised on straight line basis over the
economic useful life estimated by the management.
4. CURRENT ASSETS, LOANS AND ADVANCES
Inventories have been valued at lower of cost or realizable value and
are taken, verified, certified by the management. In the opinion of the
Management, the current assets, loans and advances are approximately of
the value stated, if realized in the ordinary course of business and
provision for all known liabilities have been made in the accounts as
at March 31,2015.
5. CURRENT LIABILITIES AND PROVISIONS
The current liabilities are stated at carrying cost, irrespective of
their period of outstanding and in some of the cases pending
confirmation and provision for all known liabilities have been made in
the accounts as at 31st March 2015.
Provision for retirement benefits viz., gratuity and leave encashment
have been made on the basis of actuarial valuation and for other
benefits as per the policy of the company for such benefits.
6. MVAT collected till the year end under Sales Tax Incentive Scheme
of 1993 by the Government of Maharashtra, Scheme PSI-1993 is considered
in the Accounts as Deferred Sales Tax Liability and stated in Note 3.
The Deferred Sales Tax Liability for the year ended 31st March,
2011,31st March, 2012, 31st March, 2013, 31st March, 2014 and 31st
March, 2015 of Rs./Millions 19.80, Rs./Millions 67.73, Rs./ Millions 110.09,
Rs./Millions 81.67 and Rs./Millions 216.72 respectively is repayable in
five equal annual installments starting from financial year 2021-22,
2022-23, 2023-24, 2024-25 and 2025-26 respectively."
7. Other Operating Revenues includes profit realized on gold contract,
forward exchange contract and forex gain on trade receivable & trade
payable.
8. Interest expense is net of interest income of Rs./ Millions 59.75
(53.42).
9. The Company uses Gold Forward exchange contracts to hedge against
its foreign currency exposure relating to the underlying transactions
and firm commitments. The foreign currency exposure not hedge at the
year end is as under.
10. SEGMENT REPORTING
The Company is in the business of refining, manufacturing and marketing
of precious metal which is considered as the only reportable segment.
The Company does not have any geographical segments. Hence, there are
no separate reportable segments as per AS-17 on "Segment Reporting"
notified under the Companies (Accounting Standards) Rules, 2006.
11. The amount due to Micro and Small Enterprises as defines in "The
Micro, Small and Medium Enterprises Development Act, 2006" is Nil as no
suppliers has intimated the Company about its status as a Micro, Small
or Medium Enterprise or its registration under "The Micro, Small and
Medium Enterprises Development Act, 2006"
12. EMPLOYEE BENEFITS
The liability towards short term employee benefits and post employment
benefits for the year ended 31st March 2015 has been recognized in
statement of Profit & Loss account. The Following disclosures are made
as per actuarial certificate in accordance with AS-15 (Revised)
pertaining to Defined Benefit Plans :
13. RELATED PARTY DISCLOSURES List of Related Parties Holding Company
Jayneer Capital Pvt. Ltd.
Wholly Owned Subsidiary Company
Shirpur Gold Mining Company Pvt Ltd incorporated on 27th February 2013
Shirpur Gold Trading DMCC incorporated on 02nd April 2013
Other related parties with whom transaction have been taken place and
balance outstanding as on the last day of the year
Diligent Media Corporation Limited
14. ROBBERY OF UNREFINED GOLD IN TRANSIT
One of the vehicles of the transporters, hired on 24th April, 2015 by
the Company was carrying 60 kgs of gold material out of which 58 KG of
unrefined gold having approximate value of Rs. 15.68 crores was looted by
some unidentified persons at the place Wadiwar, near Nashik,
Maharashtra and the balance 2 KG of gold is currently under police
custody. The Company has filed FIR and is taking appropriate steps to
recover the material. The Company has adequate insurance against the
loss of material.
15. PRIOR YEAR COMPARATIVES
Previous year's figures have been regrouped / reclassified wherever
necessary to correspond with the current year's classifications /
disclosures.
16. Figures in brackets are for previous year unless otherwise stated.
Mar 31, 2013
BACKGROUND
Shirpur Gold Refinery Limited is incorporated in the state of
Maharashtra, India. The Company has been mainly in the business of
manufacturing and trading of gold bars, gold coins, gold jewellery and
export of gold jewellery.
1. CONTINGENT LIABILITIES AND COMMITMENTS
Contingent Liabilities (Rs.Millions)
Particulars
2013 2012
1 Estimated amount of Export
obligation to be fulfilled 8,709.80 12,271.64
in terms of Duty saved value
against Import of Plant and
Machinery under EPCG up to
2014* & 2020**.
2 Claims against the
Company not acknowledged as 0.59 0.59
debt Sales Tax Matters in
Dispute under appeal and
stay granted against
demand of T /Millions 0.59 on
payment of T/Millions
0.20 is deposited.
a) *The company had imported at concessional rate of duty Plant &
Machineries during 2000, 2001 and
2002 against three licenses issued under Export & Import Policy
1997-2002 by the Government of India, with an obligation to export five
times of the CIF value of Capital Goods under EPCG Scheme on FOB basis
within a period of eight years from the date of issue of such licenses.
However, in view of discontinuation of manufacturing operations during
financial years 2004-05 till 10th July 2010 the said obligations could
not be fulfilled. The company had been sanctioned changed method of
quantification of such obligations from CIF Value to FOB value to total
duty saved method and has also received extension of time for
fulfillment of such obligations in respect of all licenses from the
competent authority. Such export obligations are now required to be
fulfilled during the period from 2012 to 2014, as stipulated in the
respective licenses.
The company has fulfilled the export obligation by exporting gold
jewellery in respect of two of the licenses (issued during 2001 and
2002) as on date of signing of the Balance Sheet where it was required
to be completed by 2012 and 2013.The export obligation under other
licenses is being fulfilled by continuing exports. Considering the
above, export obligation remaining to be fulfilled as on date of
signing of Financial Statement is ^/Millions 7,908.27.
**The company had imported at concessional rate of duty Plant &
Machineries during 2012 against two licenses issued under Foreign Trade
Policy 2009-2014 by the Government oflndia, with an obligation to
export eight times of the duty saved value of Capital Goods under EPCG
Scheme on FOB basis within period of eight years from the date of issue
of such licenses. Such export obligations are now required to be
fulfilled during the period from 2012 to 2020, as stipulated in the
respective licenses. Export obligation remaining to be fulfilled as on
date of signing of Financial Statement is 7/Millions 49.06.
b) The Income tax department has filed an appeal before Hon''ble Bombay
High Court against the order of the Income Tax Appellate Tribunal in
favour of the Company setting aside the penalty of 7 /Millions 111.36
levied under section 271(l)(c) of the Income Tax Act 1961 by Assessing
Officer, for the Assessment year 2007-08 and is pending admission by
the said High Court.
c) Income tax Assessment has been completed up to Assessment Year
2009-10 and there are no demand pending, except disputed demand of
7/Millions 3.94 for Assessment year 2001-02 and T/Millions 157.92 for
Assessment year 2008-09 pending hearing and disposal by appellate
authorities.
2. IMPAIRMENT OF FIXED ASSETS
The Company has assessed at Balance Sheet date, the assets pertaining
to manufacturing facilities at Shirpur, Dhule in Maharashtra, as to
their impairment. On the basis of such assessment, it is opined that
the recoverable amount or fair value of such assets are more than their
carrying values, hence there is no impairment of assets, to be provided
for.
3. CURRENT ASSETS, LOANS AND ADVANCES
Inventories have been valued at lower of cost or realizable value and
are taken, verified, certified by the management. In the opinion of the
Management, the current assets, loans and advances are approximately of
the value stated, if realized in the ordinary course of business and
provision for all known liabilities have been made in the accounts as
at March 31,2013.
4. CURRENT LIABILITIES AND PROVISIONS
The current liabilities are stated at carrying cost, irrespective of
their period of outstanding and in some of the cases pending
confirmation.
Provision for retirement benefits viz., gratuity and leave encashment
have been made on the basis of actuarial valuation and for other
benefits as per the policy of the company for such benefits.
5. MANAGERIAL REMUNERATION
Remuneration paid or provided in accordance with Section 198 of the
Companies Act, 1956 to Manager is included in Employee benefit expense
is as under:
6. MVAT collected till the year end under Sales Tax Incentive Scheme
of 1993 by the Government of Maharashtra, Scheme PSI-1993 is considered
in the Accounts as Deferred Sales Tax Liability and stated in Note 3.
The Deferred Sales Tax Liability for the year ended 31st March, 2013,
31st March, 2012 and 31st March, 2011 of ^/Millions 110.09,7 /Millions
67.73 and T/Millions 19.80 respectively is repayable in five equal
annual installments starting from financial year 2023-24, 2022-23 and
financial year 2021-22 respectively."
7. Other Operating Revenues is a profit realized on gold contract.
8. Interest expense is net of interest income of %/ Millions 41.96
(36.29).
9. The Company uses Gold Forward exchange contracts to hedge against
its foreign currency exposure relating to the underlying transactions
and firm commitments. The foreign currency exposure not hedged at the
year end is asunder:
10. SEGMENT REPORTING
The Company is in the business of refining, manufacturing and marketing
of precious metal which is considered as the only reportable segment.
The Company does not have any geographical segments. Hence, there are
no separate reportable segments as per AS-17 on "Segment Reporting"
notified under the Companies (Accounting Standards) Rules, 2006.
11. The amount due to Micro and Small Enterprises as defines in "The
Micro, Small and Medium Enterprises Development Act, 2006" is Nil as no
suppliers has intimated the Company about its status as a Micro, Small
or Medium Enterprise or its registration under "The Micro, Small and
Medium Enterprises Development Act, 2006".
12. EMPLOYEE BENEFITS
The liability towards short term employee benefits and post employment
benefits for the year ended 31st March 2013 has been recognized in
statement of Profit & Loss account. The Following disclosures are made
as per actuarial certificate in accordance with AS-15 (Revised)
pertaining to Defined Benefit Plans:
13. Disclosures as per clause 32 of Listing Agreement is not
applicable, as the Company has not given any loan/advances/investments
to subsidiaries, Associates etc., as per the information available on
records.
14. RELATED PARTY DISCLOSURES
List of Related Parties Holding Company
Jayneer Capital Pvt. Ltd.
Wholly Owned Subsidiary Company
Shirpur Gold Mining Company Pvt Ltd incorporated on 27th February 2013
Shirpur Gold Trading DMCC incorporated on 02nd April 2013
Other related parties with whom transaction have been taken place and
balance outstanding as on the last day of the year
Essel Corporate Resources Pvt. Ltd., Jay Properties Pvt. Ltd., Agarani
Telecommunication Ltd., Pan India Network Infravest Pvt. Ltd., Mr. Amit
Goenka, Mrs. Sushila Goenka, Mr. Milind Pradhan upto 12th October 2012,
Mr. Subhash Pareek from 05th November 2012.
15. PRIOR YEAR COMPARATIVES
Previous year''s figures have been regrouped / reclassified wherever
necessary to correspond with the current year''s classifications /
disclosures.
16. Figures in brackets are for previous year unless otherwise stated.
Mar 31, 2012
BACKGROUND
Shirpur Gold Refinery Limited ('the Company') is incorporated on
November 9, 1984 under Registration Number L51900MH1984PLC034501 and
Certificate of Commencement issued on December 6, 1984 under the name
and styled as "Skipper Mercantile Limited" by the Registrar of
Companies, Mumbai, Maharashtra. Subsequently the name was changed to
Autoriders Mercantile & Finance Ltd., on July 1, 1991, then to Agee
Gold Refiners Limited on May 19, 2000 and now Shirpur Gold Refinery
Limited w.e.f. March 18, 2002. Objectives with which the Company is
incorporated are to carry on the business of manufactures, refiners,
smelters, processor, fabricators, processors, stockiest, agents,
distributors, assayers, importers, exporters of and generally dealers
and traders in precious and semiprecious metals, stones, earth, ores,
alloys and minerals of all kinds, classes, nature and description, and
further in all their branches, and jewellery thereof or otherwise and
also to carry on business of mining and refining and other activities
as detailed in the object clause of the Memorandum of Association of
the Company. The Company is a part of Essel Group of Industries, since
December 2008. At present company is carrying on business of refining
gold of 995 purity from 999 purity, trading in gold and has commenced
Export of jewellery during the year under report.
1. CONTINGENT LIABILITIES AND COMMITMENTS
- Contingent Liabilities (Rs.in Millions)
Particulars 2012 2011
1 Estimated amount of Export
obligation to be fulfilled in 12,271.64 6,075.08
terms of Duty saved value against
Import of Plant and
Machinery under EPCG during 2001 *.
2 Claims against the Company
not acknowledged as debt 0.59 -
Sales Tax Matters in
Dispute under appeal and stay
granted against demand of Rs.Millions
0.59 on payment of
Rs./Millions 0.20 is deposited
a) *The company had imported duty free Plant & Machineries during 2001
against three licenses issued under Export & Import Policy 1997-2002 by
the Government of India, with an obligation to export five times of the
CIF value of Capital Goods under EPCG Scheme on FOB basis within a
period of eight years from the date of issue of such licenses. However,
in view of discontinuation of manufacturing operations during financial
years 2004-05 to 2010-11, the said obligations could not be fulfilled.
The company had been sanctioned changed method of quantification of
such obligations from CIF Value on FOB basis to Total Duty saved method
and has also received extension of time for fulfillment of such
obligations in respect of all licenses from the competent authority.
Such export obligations are now required to be fulfilled during the
period from 2012 to 2014, as stipulated in the respective licenses.
The company has fulfilled the export obligation by exporting gold
jewellery in respect of one of the licenses as on date of signing of
the Balance Sheet where it is required to be completed by 2012. The
export obligation under other two licenses is being fulfilled by
continuing exports. Considering the above the export obligation
remaining to be fulfilled as on date of signing of Financial Statement
is Rs./Millions11,653.73.
b) The Income tax department has filed an appeal to the Hon'ble Bombay
High Court against the order of the Income Tax Appellate Tribunal in
favour of the Company setting aside the penalty levied by Assessing
Officer of Rs./Millions 111.36 u/s 271(1)(c) of the Income Tax Act 1961,
for the Assessment year 2007-08 is pending admission.
c) Income tax Assessment has been completed upto Assessment Year
2009-10 and there are no demand pending appeal or payment, except for Rs.
3.94 Millions for Assessment year 2001-02 pending filing of appeal.
2. IMPAIRMENT OF FIXED ASSETS
The Company has assessed at Balance Sheet date, the assets pertaining
to manufacturing facilities at Shirpur, Dhule in Maharashtra, as to
their impairment. On the basis of such assessment, it is opined that
the recoverable amount or fair value of such assets are more than their
carrying values, hence there is no impairment of assets, to be provided
for.
3. CURRENT ASSETS, LOANS AND ADVANCES
Inventories have been valued at lower of cost or realizable value and
are taken, verified, certified by the management. In the opinion of the
Management, the current assets, loans and advances are approximately of
the value stated, if realized in the ordinary course of business and
provision for all known liabilities have been made in the accounts as
at March 31, 2012. However they are pending reconciliation and
confirmation parties concerned.
4. CURRENT LIABILITIES AND PROVISIONS
The Current liabilities are stated at carrying cost, irrespective of
their period of outstanding and are pending reconciliation and
confirmation.
Provision for retirement benefits viz., gratuity and leave encashment
have been made on the basis of actuarial valuation and for other
benefits as per the policy of the company for such benefits.
In accordance with principles of prudence, other applicable guidelines
and as per Accounting Standards 30 under the Companies (Accounting
Standards) Rules, 2006, the Company has charged Rs./Millions Nil(0.94) to
the Statement of Profit and Loss Account in respect of unsettled
derivative contracts which are effective hedges.
5. MVAT collected till the year end under Sales Tax Incentive Scheme
of 1993 by the Government of Maharashtra, Scheme PSI-1993 is considered
in the Accounts as Deferred Sales Tax Liability and stated in Note
3.The Deferred Sales Tax Liability for the year ended 31st March,2012
and 31st March, 2011 of Rs./Millions 67.73 and Rs./Millions 19.80
respectively is to be repayable in five equal annual installments
starting from financial year 2023-24 and financial year 2022-23
respectively.
6. Other Operating Revenues is a profit realized on gold contract.
7. Other income include interest received from Inter-corporate
deposits, margin and fixed deposits in banks Rs./Millions 36.29.
8. The Company uses Forward exchange contracts to hedge against its
foreign currency exposures relating to the underlying transactions and
firm commitments. The foreign currency exposure not hedged as at the
year end is as under:
9. SEGMENT REPORTING
The Company is in the business of refining, manufacturing and marketing
of precious metal which is considered as the only reportable segment.
The Company does not have any geographical segments. Hence, there are
no separate reportable segments as per AS-17 on "Segment Reporting"
notified under the Companies (Accounting Standards) Rules, 2006.
10. The amount due to Micro and Small Enterprises as defined in "The
Micro, Small and Medium Enterprises Development Act, 2006" is Nil as no
supplier has intimated the Company about its status as a Micro, Small
or Medium Enterprise or its registration under "The Micro, Small and
Medium Enterprises Development Act, 2006".
11. EMPLOYEE BENEFITS
The liability towards short term employee benefits and post employment
benefits for the year ended 31st March 2012 has been recognized in
statement of Profit and Loss account. The Following disclosures are
made in accordance with AS-15 (Revised) pertaining to Defined Benefit
Plans:
12. Disclosures as per clause 32 of Listing Agreement is not
applicable, as the Company has not given any loan/advances/investments
to subsidiaries, Associates etc., as per the information available on
records.
13. RELATED PARTY DISCLOSURES (a) List of Related Parties
Key management personnel of the Company Directors
1. Shri Anish Goel
2. Shri V K Agarawal
3. Shri Amit Goenka (Appointed w.e.f. 26.04.2011)
4. Shri Himanshu Mody (Resigned w.e.f. 26.04.2011)
5. Shri Sriprakash Goenka (Resigned w.e.f. 09.05.2012)
6. Late Hemendra N. Shah (From 09.05.2012 till 12.05.2012 as an
Additional Director) Holding company: Jayneer Capital Pvt. Ltd. (JCPL).
Other related parties with whom transaction have taken place and
balance outstanding as on last day of the year
Essel Corporate Resources Pvt. Ltd., Jay Properties Pvt. Ltd., Agarani
Telecommunication Ltd., Pan India Network Infravest Pvt.Ltd.,Mr. Punit
Goenka, Mr.Amit Goenka, Mrs. Sushila Goenka, Mrs. Navyata Goenka & Mrs.
Nirmala Agarawal.
During the year, 1.9kg gold bars were sold to directors and their
relatives and consideration had been received at the prevailing market
price amounting to Rs./Millions 4.23. No amount in respect of related
parties have been written off/ written back during the period, nor has
any provision been made for doubtful debts/receivables.
14. Undisputed Income Tax demand of Rs./Millions 3.94 for the Assessment
year 2001-02 and pending filling of an Appeal.
15. PRIOR YEAR COMPARATIVES
Schedule VI to the Companies Act, 1956 is revised effective from 1
April 2011 and has significantly impacted the disclosures and
presentation made in the financial statements. Previous year's fgures
have been regrouped / reclassified wherever necessary to correspond
with the current year's classifications / disclosures.
Mar 31, 2011
BACKGROUND :
SHIRPUR GOLD REFINERY LIMITED ('the Company') is incorporated on
November 9, 1984 under Registration Number L51900MH1984PLC034501 and
Certificate of Commencement issued on December 6, 1984 under the name
and styled as "SKIPPER MERCANTILE LIMITED" by the Registrar of
Companies, Mumbai, Maharashtra. Subsequently the name was changed to
AUTORIDERS MEMRCANTILE & FINANCE LTD., on July 1, 1991, then to AGEE
GOLD REFINERS LIMITED on May 19, 2000 and now SHIRPUR GOLD REFINERY
LIMITED w.e.f. March 18, 2002. The Company is in the business of
manufactures, refiners, smelters, processor, fabricators, processors,
stockists, agents, distributors, assayers, importers, exporters of and
generally dealers and traders in precious and semiprecious metals,
stones, earth, ores, alloys and minerals of all kinds, classes, nature
and description, and further in all their branches, and jewellery
thereof or otherwise and also to carry on business of mining and
refining and other activities as detailed in the object clause of the
Memorandum of Association of the Company. The Company is a part of
Essel Group of Industries, since December 2008.
1. Contingent Liabilities:
a) Estimated amount of FOB value of export commitment against the
Import of Plant and Machinery under EPCG Scheme which was not fulfilled
as on March 31, 2011 is Rs. 607,50,87,231/- (Rs.385,49,40,000/-).
However, the Company has applied for extension of time to the competent
authority for fulfillment of the obligation, which is pending
consideration and decision.
b) Bank guarantee of Rs. 68,50,00,000/- has been issued to MMTC for
supply of raw material.
c) Claims against the Company not acknowledged as debt: Ã Nil (Previous
Year NIL).
d) Estimated amount of contracts on capital account remaining to be
executed Rs. 4,00,729/- (Previous Year NIL).
2. Secured Loan :
From a Bank for Working capitalà Secured by way of first pari-passu
charge on all current assets both present and future comprising of raw
materials, semi-finished and finished goods, stores and spares, book
debts etc., and collaterally secured by way of second charge on all of
the present and future movable fixed assets and registered mortgage by
way of second Charge on factory land and buildings thereon.
3. Unsecured Loans :
Unsecured - Inter-corporate deposit from a body corporate with no
carrying cost is repayable on demand.
4. Impairment of Fixed Assets :
The Company has assessed at Balance Sheet date the assets pertaining to
manufacturing facilities at Shirpur, Dhule in Maharashtra, as to their
impairment. On the basis of such assessment, it is opined that the
recoverable amount or fair value of such assets are more than their
carrying values, hence there is no impairment of assets to be provided
for.
5. Investments :
The investment held by the Company in a co-operative bank is unquoted
and long-term in nature. Investment in Gold coins is classified as long
term investment.
6. Current Assets, Loans and Advances :
Inventories have been valued at lower of cost or realizable value and
are taken, verified, certified by the management. In the opinion of the
Management, the current assets, loans and advances are approximately of
the value stated, if realized in the ordinary course of business and
provision for all known liabilities have been made in the accounts as
at March 31, 2011. However they are subject to reconciliation and
confirmation from parties concerned.
7. Current Liabilities and Provisions :
The Current liabilities are stated at carrying cost, irrespective of
their period of outstanding and are subject to reconciliation and
confirmation.
Provision for retirement benefits is made as per Company's policy for
such benefits and on the basis of available details.
8. A compensation of Rs. 1,06,81,679/- (TDS Ã Rs. 10,68,168/-) has
been received from National Highway Authority of India (NHAI) for
compulsory acquisition of part of the Company's land and building at
Factory, Shirpur for widening of National Highway Road.
9. Taxation
(a) Provision of income tax for the current year has not been made due
to current year loss as well as brought forward losses of earlier
years.
10. Segment Reporting :
The Company operates only in one Segment i.e. Gold Refining, hence
segment reporting as per AS-17 is not applicable.
11. The amount due to Micro and Small Enterprises as defined in "The
Micro, Small and Medium Enterprises Development Act, 2006" is Nil as no
supplier has intimated the Company about its status as a Micro, Small
or Medium Enterprise or its registration under "The Micro, Small and
Medium Enterprises Development Act, 2006".
12. Disclosures as per clause 32 of Listing Agreement is not
applicable as the Company has not given any loan/ advances/investments
to subsidiaries, Associates etc.
13. Related Party Disclosures (a) List of Related Parties
Key management personnel of the Company :
Directors :
1. Shri Anish Goel
2. Shri Sriprakash Goenka
3. Shri V. K. Agarawal
4. Shri Amit Goenka ( w.e.f. 26.04.2011)
5. Shri Himanshu Mody (upto 26.04.2011)
6. Shri Sanjay Gupta (upto 15.05.2010)
Holding Company : Jayneer Capital Pvt. Ltd. (JCPL)
Other related parties : Essel Corporate Resources Pvt. Ltd., Churu
Trading Co.P.Ltd., Jay Properties Pvt. Ltd.
Mrs. Shreyanshi Goenka, Agarani
Telecommunication Ltd., Pan India Network
Infravest Pvt. Ltd.,
14. Figures in the brackets are for previous years unless otherwise
stated.
15. Previous year's figures are regrouped, rearranged, or recast
wherever necessary to confirm to the current years' figures. However,
they are not comparable with previous years as the Company has
re-started its manufacturing operations since 15th July, 2010.
Mar 31, 2010
Background:
(a) SHIRPUR GOLD REFINERY LIMITED (the Company) is incorporated on
November 9, 1984 under Registration Number U51900MH1984PLC034501 and
Certificate of Commencement issued on December 6, 1984 under the name
and styled as "SKIPPER MERCANTILE LIMITED" by the Registrar of
Companies, Mumbai, Maharashtra. Subsequently the name waschanged to
AUTORIDERSMEMRCANTILE & FINANCE LTD., on July 1, 1991, then to AGEE
GOLD REFINERS LIMITED on May 19, 2000 and now SHIRPUR GOLD REFINERY
LIMITED w.e.f. March 18, 2002. The Company is in the business of
refiners, smelters, processor etc., of metals and other activities as
detailed in the object clause of the Memorandum of Association.
(b) The Company has become a subsidiary of Jayneer Capital Pvt. Ltd.,
from September 10, 2010 on allotment of 1,35,74,702 Equity shares of
Rs. 10/- each fully paid-up pursuant to the Scheme of Arrangement
sanctioned on June 11, 2010 by the Honble Bombay High Court, Mumbai,
w.e.f., April 1, 2009, being the appointed date. The Company is a part
of Essel Group of Industries since December 2008.
Use of Estimates:
The preparation of financial statements, in accordance with the
Generally Accepted Accounting Principles requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities, disclosure of contingent liabilities at the date of
financial statements and the reported amounts of revenue and expenses
during the year. Actual results could differ from estimates. Any
revision to estimates is recognized prospectively in current and future
period.
1. Increase in Authorized Share Capital:
The Authorized Share Capital of the Company, automatically increased by
Rs./Thousand 10,00,00 divided into 1,00,00,000 Equity share of Rs. 10/-
each i. e., from Rs./Thousand 25,00,00 to Rs./Thousand 35,00,00
pursuant to order dt. 11.06.2010 of the Honble Bombay High Court under
the said Scheme of Arrangement under Section 391 to Section 394 of The
Companies Act, 1956 between Kala Kosh Auctions Pvt. Ltd., (KKAPL) and
the Company, sanctioned by the apex court.
2. Amalgamation of erstwhile Kala Kosh Auctions Pvt Ltd., (KKAPL) with
the company:
The Scheme of Arrangement between erstwhile KKAPL, the Company and
their respective shareholders and creditors (the Scheme), was
sanctioned by the Honble Bombay High Court, Mumbai, vide its order dt
June 11, 2010 and the said order is filed on July 7, 2010 and taken on
record on September 9, 2010 by the Registrar of Companies (ROC).
Pursuant to the said scheme, all the debts, liabilities, entire
business and the whole of the undertaking of the erstwhile KKAPL is to
be amalgamated and vested in the Company at their fair value from the
appointed date i.e., April 1, 2009.
b) The Company has, as per the sanctioned Scheme of Arrangement,
allotted on September 10, 2010, 1,35,74,702 Equity shares of Rs.10/-
each fully paid-up to the shareholders of erstwhile KKAPL in the ratio
of 152 (One Hundred Fifty Two) fully paid-up equity shares of Rs.10/-
each of the Company for every 100 (One Hundred) Equity shares of
Rs.10/- each fully paid-up of KKAPL., pursuant to the said Scheme.
c) The Authorised Share Capital of the Company increased by the amount
of authorized capital of the KKAPL of Rs./Thousand 1,00,000 as stated
herein before Note 1.
d) The erstwhile KKAPL was a fully owned subsidiary of the Jayneer
Capital Pvt. Ltd., (JCPL). JCPL was holding 48.91% of the Subscribed
and Paid-up Equity Capital of the Company before the sanction of the
Scheme. Pursuant to the Scheme of Arrangement, the shareholding of
JCPL., in the Company has gone up from 48.91% to 72.71% on allotment of
1,35,74,702 Equity Shares of Rs.10/- each fully paid-up, as per Note
No. 2 (b) herein, thereby making the Company its subsidiary.
3. Secured Loans:
Secured loans of Rs./Thousand 2272,322 assigned, under Deed of
Assignment dt February 25, 2009, to erstwhile KKAPL (transferee
company), by the lenders to earlier assignors, to the Company as
referred to in the respective Agreements, stood cancelled, irrespective
of carrying value in the books of both the companies, in terms of the
sanction received to the Scheme from the Honble Bombay High Court vide
its order dt June 11, 2010. The details of the same are given in Note
No. 2 herein before.
The loan was secured by first charge on all the fixed assets including
Plant and Machineries and second charge on current assets of the
Company. However, at the year end, the said loan stood cancelled as per
details given herein above.
4. Unsecured Loans:
Unsecured Inter-corporate deposit from a body corporate is interest
free and is repayable on demand.
5. Impairment of Fixed Assets:
The Company has assessed at Balance Sheet date the assets pertaining to
manufacturing facilities at Shirpur, Dhule in Maharashtra, as to their
impairment. On the basis of such assessment, it is opined that the
recoverable amount or fair value of such assets are more than their
carrying values, hence there is no impairment of assets to be provided
for. The Company has commenced its business activities since July 2010.
6. Investments:
The investment held by the Company in a co-operative bank is unquoted,
long-term and fall if any, other than of temporary nature, in book
value or fair value is not accounted based on the Accounting Standard
(AS)-13. Hence are stated at cost.
7. Current Assets, Loans and Advances:
Inventories have been valued at lower of cost or realizable value, as
taken, verified, certified by the management.
However, in the opinion of the Board the current assets, loans and
advances are approximately of the value stated, if realized in the
ordinary course of business and provision for all known liabilities
have been made in the accounts as at March 31, 2010. However they are
subject to confirmation from parties concerned.
Amounts due from companies under the same management or in which
directors etc are/were interested Rs./Thousand 39,08 (Rs. 15,66)
Maximum due Rs./Thousand 38,70 (Rs. 15,86).
8. Current Liabilities and Provisions:
The Current liabilities are stated at carrying cost, irrespective of
their period of outstanding and are subject to confirmation. Remission
of liabilities by write backs of Rs./thousand 2,29,88 and are beyond
limitation period under Limitation Act, 1963.
Provision for retirement benefits is made as per companys policy for
such benefits and on the basis of available details.
No provision for either Minimum Alternate Tax u/s 115JB or Income tax
is made in view of the losses.
Due to companies in which directors are interest or under the same
management Rs./Thousand 21,81 (Rs. 10,30) Maximum Due Rs./Thousand
23,12 (Rs. 13,58), including due and maximum due to holding company
i.e., Jayneer Capital Pvt. Ltd., Rs./Thousand 12,00 (Nil) in current
accounts.
9. The proceedings in the Case No. 58 of 2008 before Special Court
for Greater Bombay against the Company in connection with the Credit
facilities/loans taken from the banks in earlier years had been
returned to the plaintiff for presentation before the appropriate
court. Hence, the case stands dismissed by the Honble Court on
jurisdictional ground. The management is of the opinion that no
financial liability will arise out of the said case.
10. Contingent Liabilities;
(Amt in Rs. In thousand)
a) Estimated amount of FOB value of export commitment against the
Import of Plant and Machinery under EPCG Scheme which was not fulfilled
as on March 31, 2010 is Rs. 385,49,40 (Rs. 151,64,44).
b) Sales tax liability under dispute Rs. 15,05.
c) Disputed demand of Maharashtra Pollution Control Board Rs. 21,06.
d) Income tax demand (Penalty) for AY 2007-08 Rs.11,13,60
e) Claims against the Company not acknowledged as debt: - NIL (Previous
Year NIL), certified by the management.
11. Sundry Creditors include Rs.NIL (Rs./thousand 556/-) due to Small
Scale Industrial Undertakings to the extent such parties have been
identified from available information. There is no outstanding amount
as on March 31, 2010 exceeding 30 days and over Rs. 1 lakh.
12. Verification Principles, Objectives, Scope, Documentation
Evidences etc.:
a) Verification on Test check basis, of the records as produced before
us, has been carried out on the basis of well settled principles,
guidelines objectives as per applicable laws.
b) The Scope covered all aspect of accounting system except as
mentioned elsewhere herein.
c) Wherever, evidences for services rendered or expenses are not
available, they have been relied upon on certification by the
management exclusively and necessarily for business purposes.
13. Segment Reporting:
The Company operates only in one Segment hence the reporting as per
AS-17 is not applicable.
14. Related Party transactions
Key personnel of the Company: Directors:
CONTINUING DIRECTORS:
1. Shri Anish M. Goel
2. Shri Sriprakash S. Goenka APPOINTMENT:
3. Shri Himanshu Mody, w.e.f. 18.01.2010
4. Shri V K Agarawal, w.e.f. 18.01.2010 RESIGNED:
1. Shri Sanjay Gupta - Resigned w.e.f. 15.05.2010
2. Shri Sanjay Jain - Resigned w.e.f. 05.01.2010 None of the
directors are in receipt of any Remuneration. Holding company: Jayneer
Capital Pvt Ltd.
Other related parties:
Autoriders International Ltd., Autoriders India Pvt. Ltd., Autoriders
Finance Ltd., Churu Trading Company Pvt. Ltd., Deesan Tex Fab Pvt.
Ltd., Deesan Exports Pvt. Ltd., Meha Trading Pvt. Ltd., Essel Corporate
Resources Pvt. Ltd.,
15. There are no employees drawing remuneration in excess of the
prescribed limits under Section 217(2A) of the Companies Act 1956,
hence not reported.
16. Figures in the brackets are for previous years unless otherwise
stated.
17. Previous years figures are regrouped, rearranged, or recast
wherever necessary and the figures are not comparable with current year
in view of the amalgamation of KKAPL with the Company and its effect
considered in the financial statements under report.