Mar 31, 2016
1. The company has only one class of shares referred to as equity shares having a par value of Rs. 5/fully paid up. Each holder of equity shares is entitled to one vote per share held.
2. Redemption of Cumulative Redeemable Preference Shares (CRPS).
1,493,365 1% of Cumulative Redeemable Preference Shares of Rs.100 each aggregating to Rs. 1493.37 lakhs is redeemable in 12 quarterly installments co-terminus with principal payment commencing from October 01, 2013 and ending July 01, 2016. CRPS carry cumulative dividend@1% per annum. . Each holder of CRPS is entitled to one vote per share only on resolutions placed before the company which directly affect the rights attached to CRPS.
3. Loan from banks viz. Punjab National Bank, Bank of India, Indian Overseas Bank, IDBI Bank, State Bank of Patiala, The Karnataka Bank Ltd., Bank of Baroda, Laxmi Vilas Bank, Indian Bank, Oriental Bank of Commerce and Andhra Bank are secured by first charge on all the immovable and movable fixed assets of the company both present and future and second charge on the current assets of the company. Further these loans are secured by personal guarantees of director and promoter.
Loan from SASF are Secured by 1st charge on Unit at Sanivada Village, Rajeevnagar, Visakhapatnam - 530 046, Andhra Pradesh, Unit at Plot No. B-20E, SIPCOT Industrial Complex, Gummidi Pondi, Chennai, Tamilnadu and Unit at Survey No. 296/7/7, 8 & 11, IDA Bollaram, Jinnaram Mandal, Medak District - 502325, Telangana.
4. The terms of repayment and rate of interest on the loans from banks and financial institutions mentioned in the Note No. 39
5. Vehicle loans from banks are secured by hypothecation of the vehicles financed through the loan arrangements and are repayable over a period of 36 months to 60 months.
6. Loans repayable on demand includes an amount of Rs. 1,04,401.99 lakhs (31.03.2015:Rs.54,996.50 lakhs) represents working capital loans from banks are inter alia secured by way of parri passu first charge on current assets and parri passu second charge on fixed assets both present and future. Further these loans are secured by personal guarantee and properties of certain directors.
7. Rs. 75.00 lakhs has been brought from others.
8. Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006.
Trade payables (Ref: Note No.10 -Trade payables include Rs.Nil (31.03.2015 : Rs. Nil) due to micro enterprises and small enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act 2006). The Company has not received any memorandum(as required to be filed by the supplier with the notified authority under the MSMED Act 2006) claiming their status as Micro or Small or Medium Enterprises.
9. TERMS OF CDR AND IMPLEMENTATION THEREOF:
The loans of the company have been restructured under the Corporate Debt Restructuring (CDR) System. The CDR package was sanctioned by CDR Empowered Group, at their meeting held on 25.03.2013
All the lenders with the exception of SASF have restructured the debts as stipulated in the package. Though SASF agreed with the general terms and conditions of restructuring under CDR, it insisted for clearance of interest overdue as on October 1, 2012 (CDR COD) and has not communicated sanction for CDR package.
10 The Companyâs significant leasing arrangements are in respect of operating leases for premises (office, stores, godowns, etc.). The leasing arrangements, which are not non-cancellable, range between ten months and three years generally, and are usually renewable by mutual consent on agreed terms. The aggregate lease rentals Rs.117.44 lakhs (31.03.2015 : Rs. 176.43 lakhs) payable are charged as rent in to the statement of profit and loss.
11 Balances of Unsecured loans, receivables, payables and loans and advances are subjects to their confirmation and reconciliations.
12 Previous periodâs figures have been regrouped / reclassified wherever necessary to correspond with the current yearâs classification / disclosure.
Mar 31, 2015
1 Corporate Information
"Sujana Metal Products Limited (SMPL) was incorporated on 02nd May 1988
under the name of Sujana Steel Re-rolling Industries Private Limited.
The name of the company was changed to Sujana Steels Private Limited on
30 March 1992. The company was converted into public limited company on
20 April 1992. The company further changed its name as Sujana Metal
Products Limited w.e.f. 09 November 2001. The Company was promoted by
Sri YS.Chowdary, his associates and relatives.
The company was incorporated with an object to manufacture of steel
re-rolled products. SMPL is engaging in the business of manufacturing
and marketing value added steel products. SMPL is categorized as a
secondary steel producer in the Industry.
SMPL is currently engaging in the business of Manufacture and trading
of steel products like Thermo Mechanically Treated (TMT) bars in
different sizes, Structural steels like Ms Angles, Ms Squares, Ms Beams
and Ms Channels etc and smart steel of varying shapes and dimensions
for the construction and infrastructure sector.
2. Redemption of Cumulative Redeemable Preference Shares (CRPS).
1,493,365 1% of Cumulative Redeemable Preference Shares of Rs.100 each
aggregating to Rs. 1493.37 lakhs is redeemable in 12 quarterly
installments co-terminus with principal payment commencing from October
01,2013 and ending July 01,2016. CRPS carry cumulative dividend@1% per
annum. The company declares and pays dividend in Indian rupees. Each
holder of CRPS is entitled to one vote per share only on resolutions
placed before the company which directly effect the rights attached to
CRPS
Six quarterly installments of Rs. 745.10 lakhs have been paid to IDBI
(preference share holder) for redemption of 7,46,680 number of 1%
preference shares of Rs. 100/- each. however these share were not
received by the Company from IDBI for redemption. Hence the amount of
Rs. 745.10 lakhs has been classified as advance.
3. As per CDR Terms of repayment are as follows:
i) Loan taken from Andhra Bank, Rs.50.91Crores, carries an interest
rate of 11% p.a from 1st October, 2012 till 30th September, 2014 and
there after 13% p.a and is repayable in 96 monthly installments
commencing from 1st October, 2014.
ii) Loan taken from Indian Overseas Bank, Rs.32.60Crores, carries an
interest rate of 11% p.a from 1st October, 2012 till 30th September,
2014 and there after 13% p.a and is repayable in 96 monthly
installments commencing from 1 st October, 2014.
iii) Loan taken from Bank Of India, Rs. 54.61 Crores, carries an
interest rate of 11% p.a from 1st October, 2012 till 30th
September,2014 and there after 13% p.a and is repayable in 96 monthly
installments commencing from 1 st October, 2014.
iv) Loan taken from Punjab National Bank, Rs.90.86Crores, carries an
interest rate of 11% p.a from 1st October, 2012 till 30th
September,2014 and there after 13% p.a and is repayable in 96 monthly
installments commencing from 1 st October, 2014.
v) Loan taken from IDBI, Rs. 22.38Crores, carries an interest rate of
11% p.a from 1st October, 2012 till 30th September, 2014 and there
after 13% p.a and is repayable in 96 monthly installments commencing
from 1st October, 2014.
vi) Term loan from financial institutions viz Stressed Assets
Stabilization Fund (SASF) secured by first charge on all the immovable
and movable fixed assets of the company and second charge on the
current assets of the company. As per SASF letter dated 15 March 2013,
crystallizes the SASF dues to Rs.6,600 lakhs and is to be paid in cash
carrying ROI @ 9% p.a payable over 9 1/2 years and balance Rs. 1800
lakhs to be converted into equity as per SEBI Guidelines. After giving
effect to the CDR it was decided that SASF dues as per June, 2008
package should be considered for restructuring at par with other
lenders including clearance of interest overdue as on Cut of Date
(October 1,2012). As per Bank 's advice Interest and other overdues of
Rs18.20 crore as on COD, is to be cleared for restructuring of dues at
CDR.
vii) Overdue interest on Term Loans, SASF & Working Capital was
converted to 'Funding of Interest on Term Loan ' amounting to Rs.
67.46Crores, which shall be repayable in 4.5years after completion of
moratorium period i.e. October, 2014.
viii) Working Capital loans were converted to Working Capital Term
Loans amounting Rs.41,735.66Lakhs, which shall be repayable in 8years,
after completion of moratorium period i.e. Oct, 2014.
ix) Vehicle loans from banks and others are secured by hypothecation of
the vehicles financed through the loan arrangements and are repayable
over a period of 36 months to 60 months.
x) Additional Term Loan taken from Andhra Bank Rs.271.00 lakhs on 20th
Jan 2014, Bank of Ondia Rs.269.00 laks, IOB Rs.154.00 lakhs and PNB
Rs.406.00 lakhs carries an interest rate of 11% p.a for upgradation of
technology at Shadnagar and Bollaram units.
4. Employee Benefits
Defined contribution plans:
The Company makes Provident Fund contribution to defined contribution
plans for qualifying employees. Under the Scheme, the Company is
required to contribute a specified percentage of the payroll costs to
fund the benefits. The Company recognised Rs.69.26 lakhs (31.03.2014:
Rs.60.66 lakhs) for Provident Fund contributions in the Statement of
Profit and Loss. The contributions payable to these plan by the Company
are at rates specified in the rules of the scheme.
Defined benefit plans:
The Company offers the following employee benefit schemes to its
employees:
i. Gratuity
ii. Compensated absences
Liability for retiring gratuity as on March 31,2015 is Rs.313.11 lakhs
(31-3-2014: Rs.298.87 lakhs ) of which Rs.2.65 lakhs (31.3.2014: 13.90
lakhs) is funded with the Life nsurance Corporation of India and Bajaj
Allianz Life Insurance Company. The balance of Rs.310.46 lakhs
(31-3-2014: Rs.284.97 lakhs) is included in Provision for Gratuity. The
Liability for Gratuity and Cost of Compensated absences has been
actuarially determined and provided for in the books.
Details of the company 's post-retirement gratuity plans for its
employees including whole time directors are given below,which is
certified by the actuary and relied upon by the auditors.
Note: In accordance with the payment of Gratuity Act, 1972 the company
provides for gratuity covering eligible employees.
The liability on account of gratuity is covered partially through a
recognized Gratuity Fund managed by Life Insurance Corporation of
India, Bajaj Allianz life Insurance company and balance is provided on
the basis of valuation of the liability by an independent actuary as at
the year end. The management understands that their overall portfolio
of assets is well diversified and as such, the long term return on the
policy is expected to be higher than the rate of return on Central
Government bonds.
i) Discount Rate
The discount rate is based on the prevailing market yield on Indian
Government Securities as at the balance sheet date for the estimated
term of the obligations.
ii) Expected Rate of Return on Plan Assets:
This is based on our expectation of the average long term rate of
return expected on investments of the Fund during the estimated term of
the obligations.
iii) Salary Escalation Rate
The estimates of future salary increase considered takes into account
the inflation, seniority, promotion and other relevant factors.
5. Related Party Disclosure
The following are related parties as defined in "Accounting Standard
(AS) 18 - Related Party Disclosures " notified under The Companies
(Accounting Standards) Rules, 2006.
List of Related Parties
1. Subsidiaries
Country of Percentage of
Subsidiaries held directly Incorporation owmership interest
i. Glade Steel Pvt Ltd. India 51.15%
ii. Alpha Ventures Ltd. Cayman Islands 100%
iii. Asian Tide Enterprises Ltd. Hong Kong 100%
Subsidiaries held indirectly
i. Optimix Enterprises Limited Mauritius 100%
2. Key Management Personnel
i. Mr. R. K. Birla Managing Director
ii. Mr. S. Hanumantha Rao Director (Finance)
6. Contingent liabilities and commitments (to the extent not provided
for) (Rupees in lakhs)
As at 31 As at 31
Particulars March 2015 March 2014
a) Contingent liabilities
i) Claims against the Company not
acknowledged as debts in respect of:
Excise Duty 2,071.70 2,120.20
Custom Duty 839.24 839.49
TNVAT/APGST/CST 2,198.12 2,198.12
Income Tax (Net of liability as per return) - 1,479.25
FEMA* 400.00 400.00
ii) Guarantees
Corporate Guarantees furnished on behalf
of Sujana Universal 81,410.00 81,410.00
Industries Ltd
Corporate guarantee furnished on behalf
of Optimix Enterprises 4,087.50 4,087.50
Limited (USD 75 lakhs)
b) Commitments
i) Export commitments on account of import of
machinery and equipments at 112.16 112.16
concessional duty under EPCG scheme
(31.03.2014 :Rs.112.16 Lakhs) .Such
export commitments need to be fulfilled
by the Company on or before 23
April 2016. As on 31 March 2015, the
Company has fulfilled its export
commitments and which are pending final
approval of Director General of
Foreign Trade. In the event of non-
fulfillment of the export
commitments by 23 April 2016 by the Company,
the liability (excluding
interest and penalties) towards customs duty
*Against which bank guarantee of Rs.215 lakhs has been issued.
7. Disclosures required under Section 22 of the Micro, Small and Medium
Enterprises Development Act, 2006.
Trade payables (Ref: Note No.10 -Trade payables include Rs.Nil
(31.03.2014 : Rs. Nil) due to micro enterprises and small enterprises
as defined under Micro, Small and Medium Enterprises Development Act,
2006 (MSMED Act 2006). The Company has not received any memorandum(as
required to be filed by the supplier with the notified authority under
the MSMED Act 2006) claiming their status as Micro or Small or Medium
Enterprises.
8. Stressed Assets Stabilization Fund (SASF) has communicated as
follows
As per SASF letter dated 15 March 2013, crystallizes the SASF dues to
Rs.6,600 lakhs and is to be paid in cash carrying ROI @ 9% p.a payable
over 9 1/2 years and balance Rs. 1800 lakhs to be converted into equity
as per SEBI Guidelines. After giving effect to the CDR it was decided
that SASF dues as per June, 2008 package should be considered for
restructuring at par with other lenders including clearance of interest
overdue as on COD (October 1,2012). As per Bank 's advice Interest and
other overdues of Rs18.20 crore as on COD, is to be cleared for
restructuring of dues at CDR. The negotiation are going on with respect
to restruring of debts.
9. IMPLEMENTATION & TERMS OF CDR:
The loans of the company have been restructured under the Corporate
Debt Restructuring (CDR) System, The CDR package was sanctioned by CDR
Empowered Group, at the meeting held on 15.02.2013 and approval letters
have been given by the CDR Cell on 25.03.2013. where all the banks, who
have extended financial assistance & given the loans to the company,
have aggreed for restructure of the loans.
The letters from individual banks also have been issued by Banks &
Salient Features of the CDR package are given below:-
i) Cut-off date (COD) for loans has been cosnsidered as 1st October
2012. The loans outstanding as on this date has been cosnidered for
restructuring.
ii) Interest rate on the loans has been fixed at 11%p.a. during the
moratorium period (24 months) from cut off date after that it is 13%.
iii) Term Loans have been restructured with a moratorium of 24 months
from COD and repayable in 96 equal monthly installments starting from
1st October 2014.
iv) The irregularity in the Cash Credit has been carved out as Working
Capital Term Loan with a moratorium of 24 months from COD and repayable
in 96 equal monthly installments starting from 1st October 2014.
v) The unpaid interest as on 30.09.2012 and interest from 01.10.2012 to
28.02.2013 on term loans and interest from 01.10.2012 to 28.02.2013 on
WCTL has been restructured as Funded Interest Term Loan-I, repayable in
54 equal monthly installments starting from FY Oct 31, 2014 and ending
with March 31,2019, after FITL - I is completely built up.
vi) The interest on Cash Credit from October 2012 to March, 2013 has
been restructured as Funded Interest Term Loan-II, repayable in 54
equal monthly installments starting form April 30, 2013 and ending with
September 2017, after FITL - II is completely built up.
vii) The Interest on loan of NBFC from cut off date Oct 1, 2012 till
September 30, 2014 shall be converted into FITL I and interest would be
charged at 11%p.a. at monthly rests with a right to reset after two
years from cut-off date & thereafter annuallly. Interest on FITL - I
shall be serviced as and when due. Interest overdue prior to COD would
be converted to FITL I(A) to be repaid from FY 2014 to FY 2018 with 9%
interest p.a. at monthly rests.
viii) The Principle of NBFC has been given moratorium of 24 months from
COD and repayable in 96 equal monthly instalments over a period of 8
years starting from Oct 31, 2014 and ending with September 30, 2022.
ix) Cash Credit and the Non-fund based limits as per the apprisal of
the banks.
x) Promoters shall bring funds as per the applicable terms of CDR
package.
xi) The lenders shall have the right to recompense the
reliefs/sacrifices/waivers extended by respective CDR lenders as per
guidelines.
xii) The CDR package has been implemented in all respects with PNB as
the monitoring agency for monitoring the implementation of the CDR
package. The repayments of installments have commenced during the year.
10. The Company 's significant leasing arrangements are in respect of
operating leases for premises (office, stores, godowns, etc.). The
leasing arrangements, which are not non-cancellable, range between ten
months and three years generally, and are usually renewable by mutual
consent on agreed terms. The aggregate lease rentals Rs.176.43 lakhs
(31.03.2014:Rs.148.51 lakhs) payable are charged as rent in the
statement of profit and loss.
11. Balances of Unsecured loans, receivables,payables and loans and
advances are subjects to their confirmation and reconcilations.
12. Previous period 's figures have been regrouped / reclassified
wherever necessary to correspond with the current year 's
classification / disclosure.
Mar 31, 2014
1 Corporate information
Sujana Metal Products Limited (SMPL) was incorporated in 02 May 1988
under the name of Sujana Steel Re-rolling Industries Private Limited.
The name of the company was changed to Sujana Steels Private Limited on
30 March 1992. The company was converted into public limited company on
20 April 1992. The company further changed its name as Sujana Metal
Products Limited w.e.f. 09 November 2001. The Company was promoted by
Sri Y.S.Chowdary, his associates and relatives.
The company was incorporated with an object to manufacture of steel
re-rolled products. SMPL is engaging in the business of manufacturing
and marketing value added steel products. SMPL is categorized as a
secondary steel producer in the Industry.
SMPL is currently engaging in the business of Manufacture and trading
of steel products like Thermo Mechanically Treated (TMT) bars in
different sizes, Structural steels like Ms Angles, Ms Squares, Ms Beams
and Ms Channels etc and smart steel of varying shapes and dimensions
for the construction & infrastructure sector.
i) 13,140,489 Equity shares issued as fully paid up to the share
holders of erstwhile Sujana Steels Limited on its amalgamation with the
company, for consideration other than cash.
ii) The company has only one class of shares referred to as equity
shares having a par value of Rs. 5/-. Each holder of equity shares is
entitled to one vote per share held.
In the event of liquidation, the equity share holders are eligible to
receive the remaining assets of the company after distribution of all
preferential amounts, in proportion to their share holding.
Nil (31.03.2013:12,946,000) equity shares represent the shares
underlying outstanding Global Depository Receipts (GDRs). Each GDR
represents 10 underlying equity shares.
iii) Redemption of Cumulative Redeemable Preference Shares (CRPS)
1,493,365 1% of Cumulative Redeemable Preference Shares of Rs.100 each
aggregating to Rs.1493.37 lakhs is redeemable in 12 quarterly
installments co-terminus with principal payment commencing from October
01,2013 and ending July 01,2016. CRPS carry cumulative dividend@1% per
annum. The company declares and pays dividend in Indian rupees each.
Each holder of CRPS is entitled to one vote per share only on
resolutions placed before the company which directly effect the rights
attached to CRPS.
Three quarterly installment of Rs. 369.93 has been paid to
IDBI(preference share holder) for redemption of 3,73,340 numbers of 1%
preference shares of Rs.100 each. However these shares were not
received by the company from IDBI for redemption. Hence the amount of
Rs.369.93 lakhs has been classified as advance.
Notes:
Term loan from banks viz. Punjab National Bank, Bank of India, Indian
Overseas Bank, IDBI Bank and Andhra Bank are secured by first chare on
all the immovable and movable fixed asets of the company both present
and future and second charge on the current assets of the company.
Further these loans are secured by personal guarantees and properties
of certain directors.
During the year the company availed additional Term Loan taken from
Andhra Bank Rs.271.00 lakhs, Bank of Ondia Rs.269.00 laks, IOB
Rs.154.00 lakhs and PNB Rs.406.00 lakhs carries an interest rate of 11
% p.a for upgradation of technology at Shadnagar and Suryapet units.
As per CDR Terms of repayment are as follows:
i) Loan taken from Andhra Bank, Rs. 50.91Crores, carries an interest
rate of 11 % p.a from 1st October, 2012 till 30th September,2014 and
there after 13% p.a and is repayable in 96 monthly installments
commencing from 1 st October, 2014.
ii) Loan taken from Indian Overseas Bank, Rs.32.60Crores, carries an
interest rate of 11 % p.a from 1st October, 2012 till 30 th
September,2014 and there after 13% p.a and is repayable in 96 monthly
installments commencing from 1 st October, 2014.
iii) Loan taken from Bank Of India, Rs. 54.61Crores, carries an
interest rate of 11 % p.a from 1st October, 2012 till 30 th
September,2014 and there after 13% p.a and is repayable in 96 monthly
installments commencing from 1 st October, 2014.
iv) Loan taken from Punjab National Bank, Rs.90.86Crores, carries an
interest rate of 11 % p.a from 1st October, 2012 till 30 th
September,2014 and there after 13% p.a and is repayable in 96 monthly
installments commencing from 1 st October, 2014.
v) Loan taken from IDBI, Rs. 22.38Crores, carries an interest rate of
11 % p.a from 1st October, 2012 till 30th September,2014 and there
after 13% p.a and is repayable in 96 monthly installments commencing
from 1 st October, 2014.
vi) Term loan from financial institutions viz Stressed Assets
Stabilization Fund (SASF) secured by first charge on all the immovable
and movable fixed assets of the company and second charge on the
current assets of the company. As per SASF letter dated 15 March 2013,
crystallizes the SASF dues to Rs.6,600 lakhs and is to be paid in cash
carrying ROI @ 9% p.a payable over 9 1/2 years and balance Rs. 1800
lakhs to be converted into equity as per SEBI Guidelines. After giving
effect to the CDR it was decided that SASF dues as per June, 2008
package should be considered for restructuring at par with other
lenders including clearance of interest overdue as on COD (October
1,2012). As per Bank''s advice Interest and other overdues of Rs18.20
crore as on COD, is to be cleared for restructuring of dues at CDR.
vii) Overdue interest on Term Loans, SASF & Working Capital was
converted to ''Funding of Interest on Term Loan'' amounting to Rs.
67.46Crores, which shall be repayable in 4.5years after completion of
moratorium period i.e. October, 2014.
viii) Working Capital loans were converted to Working Capital Term
Loans amounting Rs.41,735.66Lakhs, which shall be repayable in 8years,
after completion of moratorium period i.e. Oct, 2014.
ix) Vehicle loans from banks and others are secured by hypothecation of
the vehicles financed through the loan arrangements and are repayable
over a period of 36 months to 60 months.
2.i) Loans repayable on demand includes an amount of Rs. 63281.98 lakhs
(31.03.2013:Rs.51,566.87 lakhs) represents working capital loans from
banks are inter alia secured by way of parri passu first charge on
current assets and parri passu second charge on fixed assets both
present and future. Further these loans are secured by personal
guarantee and properties of certain directors.
ii) Rs.4085.02 lakhs has been brought by promoters as interest free
unsecured loan under CDR scheme which shall be converted in to equity
shares as per SEBI norms and Rs.100 lakhs from others in the previous
year carring an interest of 17% per annum.
3 Employee Benefits
Defined contribution plans:
The Company makes Provident Fund contribution to defined contribution
plans for qualifying employees. Under the Scheme, the Company is
required to contribute a specified percentage of the payroll costs to
fund the benefits. The Company recognised Rs.60.66 lakhs (31.03.2013:
Rs. 66.77 lakhs) for Provident Fund contributions in the Statement of
Profit and Loss. The contributions payable to these plan by the Company
are at rates specified in the rules of the scheme.
Defined benefit plans
The Company offers the following employee benefit schemes to its
employees:
i. Gratuity
ii. Compensated absences
Liability for retiring gratuity as on March 31,2014 is Rs.298.87 lakhs
(31-3-2013: Rs.248.20 lakhs ) of which Rs.13.90 lakhs (31.3.2013: 5.02
lakhs) is funded with the Life Insurance Corporation of India. The
balance of Rs.284.97 lakhs (31-3-2013: Rs.243.18 lakhs) is included in
Provision for Gratuity. The Liability for Gratuity and Cost of
Compensated absences has been actuarially determined and provided for
in the books.
Note: In accordance with the payment of Gratuity Act, 1972 the company
provides for gratuity covering eligible employees.
The liability on account of gratuity is covered partially through a
recognized Gratuity Fund managed by Life Insurance Corporation of India
and balance is provided on the basis of valuation of the liability by
an independent actuary as at the year end. The management understands
that LIC''s overall portfolio of assets is well diversified and as such,
the long term return on the policy is expected to be higher than the
rate of return on Central Government bonds.
i) Discount Rate
The discount rate is based on the prevailing market yield on Indian
Government Securities as at the balance sheet date for the estimated
term of the obligations.
ii) Expected Rate of Return on Plan Assets:
This is based on our expectation of the average long term rate of
return expected on investments of the Fund during the estimated term of
the obligations.
4 Contingent liabilities and commitments (to the extent not provided
for) (Rupees in lakhs)
As at 31 As at 31
Particulars March 2014 March 2013
a)Contingent liabilities
i)Claims against the Company not
acknowledged as debts in respect of:
Excise Duty 2,120.20 2,116.87
Custom Duty 839.49 797.67
TNVAT/APGST/CST 2,198.12 2,179.39
Income Tax (Net of liability as 1,479.25 1,517.25
per return)
FEMA* 400.00 630.00
ii) Guarantees
Corporate Guarantees furnished 81,410.00 81,410.00
on behalf of Sujana Universal
Industries Ltd
Corporate guarantee furnished on 4,087.50 4,087.50
behalf of Optimix Enterprises
Limited (USD 75 lakhs)
b) Commitments
i) Export commitments on account of import of machinery and equipments
at 112.16 112.16
concessional duty under EPCG scheme (31.03.2012 :Rs.112.916Lakhs) .Such
export commitments need to be fulfilled by the Company on or before 23
April 2016. As on 31 March 2012,the Company has fulfilled its export
commitments and which are pending final approval of Director General of
Foreign Trade. In the event of non-fulfillment of the export
commitments by 23 April 2016 by the Company, the liability (excluding
interest and penalties) towards customs duty
*Against which bank guarantee of Rs.215 lakhs has been issued.
5 Disclosures required under Section 22 of the Micro, Small and Medium
Enterprises Development Act, 2006
Trade payables (Ref: Note No.10 -Trade payables include Rs.Nil
(31.03.2013: Rs.Nil) due to micro enterprises and small enterprises as
defined under Micro, Small and Medium Enterprises Development Act, 2006
(MSMED Act 2006). The Company has not received any memorandum(as
required to be filed by the supplier with the notified authority under
the MSMED Act 2006) claiming their status as Micro or Small or Medium
Enterprises.
6 Scheme of Amalgamation
The management committee has decided to withdraw the Scheme of
Amalgamation of M/s Lakshmi Gayatri Industries Private Limited, M/s
Glade Steel Private Limited, M/s Sri Ganga Steel Enterprises Private
Limited and M/s Topaz Steel India Limited, the company filed its
petetion before Hon''ble High Court of Andhra Pradesh and withdrawl of
amalgamation order was issued by Hon''ble High Court,Ap on 17-12-2013.
7 Stressed Assets Stabilization Fund (SASF) has communicated as
follows
SASF vide their letter dated 02 December 2010 has confirmed a
Negotiated Settlement (NS) for the aggregate balance term loan
outstanding as on 31 December 2009 (being the cut-off date) in respect
of the Company and other Company viz.Sri Ganga Enterprises Limited
(Company to be taken over in the scheme of amalgamation) to the extent
of Rs.7,706.00 lakhs, with following terms and conditions:
a) Rs.3,051.00 lakhs to be paid in cash of which an amount of Rs.600
lakhs was paid against the crystallized cash portion of the settlement
amount and balance amount shall be payable in equal 5 installments the
date of issue of letter of approval (LOA). The first installment shall
be payable within a period of one week from the date of issue of LOA,
of which the Company has paid Rs.1,150 lakhs towards interest and
principal during the previous period.
b) Of the balance restructured term loan Rs.4,655 lakhs is to be
converted into equity share of Company as per SEBI Guidelines and 9%
p.a interest shall be payable till the date of conversion. Based on
the NS, a consolidated interest waiver of Rs.1300 lakhs has been given
by SASF. In view of pending amalgamation of Sri Ganga Enterprises
Limited and non compliance of certain terms and conditions, the Company
has not accounted the term loan liability relating to amalgamating
Company (payable to SASF) and the interest waiver to the extent of
Rs.1,300 lakhs in the books during the period.
Further the company vide its letter dated 21 March 2012 requested the
SASF for modifications in the terms of negotiated settlement conveyed
above vide letter No.BY/SASFSujana Metal/No.1793 dated 02 December
2010. The SASF vide its letter dated 02 April 2012 has agreed to extend
the time for conversion of Rs.4,655 lakhs into equity upto 31 March
2013 subject to payment of interest @ 9% per annum w.e.f 01 April 2010
and also agreed to reschedule the payment of balance cash portion of
settlment amount aggregating Rs.2,400 lakhs(subject to reconciliation)
. The terms of payment are as
follows.
a) Payment of 50 lakh per quarter during the first year commencing from
01 July 2011, payment of Rs.75 lakhs per quarter during the second year
commencing from 01 July 2013 and balance amount shall be payable in 12
equal quarterly installments commencing from 01 July 2014.
b) Interest @9% p.a on the settlement shall be payable along with the
above installments. In view of the pending compliance of certain terms
and conditions mentioned above, the scheme has not been given effect in
the books.
Further as per SASF letter dated 15th March, 2013, crystallizes the
SASF dues to Rs.6,600 lakhs and is to be paid in cash carrying ROI @ 9%
p.a payable over 9 1/2 years and balance Rs. 1800 lakhs to be converted
into equity as per SEBI Guidelines. After giving effect to the CDR it
was decided that SASF dues as per June, 2008 package should be
considered for restructuring at par with other lenders including
clearance of interest overdue as on COD (October 1, 2012). As per
Bank''s advice Interest and other overdues of Rs18.20 crore as on COD,
is to be cleared for restructuring of dues at CDR.
8 IMPLEMENTATION & TERMS OF CDR:
The loans of the company have been restructured under the Corporate
Debt Restructuring (CDR) System, The CDR package was sanctioned by CDR
Empowered Group, at the meeting held on 15.02.2013 and approval letters
have been given by the CDR Cell on 25.03.2013. where all the banks, who
have extended financial assistance & given the loans to the company,
have aggreed for restructure of the loans.
The letters from individual banks also have been issued by Banks &
Salient Features of the CDR package are given below:-
i) Cut-off date (COD) for loans has been cosnsidered as 1st October,
2012. The loans outstanding as on this date has been cosidered for
restructuring.
ii) Interest rate on the loans has been fixed at 11% p.a. during the
moratorium period (24 months) from cut off date after that it is 13%.
iii) Term Loans have been restructured with a moratorium of 24 months
from COD and repayable in 96 equal monthly installments starting from
1st October 2014.
iv) The irregularity in the Cash Credit has been carved out as Working
Capital Term Loan with a moratorium of 24 months from COD and repayable
in 96 equal monthly installments starting from 1st October 2014.
v) The unpaid interest as on 30.09.2012 and interest from 01.10.2012 to
28.02.2013 on term loans and interest from 01.10.2012 to 28.02.2013 on
WCTL has been restructured as Funded Interest Term Loan-I, repayable in
54 equal monthly installments starting from FY Oct 31, 2014 and ending
with March 31,2019, after FITL - I is completely built up.
vi) The interest on Cash Credit from October 2012 to March, 2013 has
been restructured as Funded Interest Term Loan-II, repayable in 54
equal monthly installments starting form April 30, 2013 and ending with
September 2017, after FITL - II is completely built up.
vii) The Interest on loan from SASF cut off date Oct 1,2012 till
September 30, 2014 shall be converted into FITL I and interest would be
charged at 11%p.a. at monthly rests with a right to reset after two
years from cut-off date & thereafter annuallly. Interest on FITL - I
shall be serviced as and when due. Interest overdue prior to COD would
be converted to FITL I(A) to be repaid from FY 2014 to FY 2018 with 9%
interest p.a. at monthly rests.
viii) The Principle of SASF has been given moratorium of 24 months from
COD and repayable in 96 equal monthly instalments over a period of 8
years starting from Oct 31, 2014 and ending with September 30, 2022.
ix) Cash Credit and the Non-fund based limits as per the apprisal of
the banks.
x) Promoters shall bring funds as per the applicable terms of CDR
package.
xi) The lenders shall have the right to recompense the
reliefs/sacrifices/waivers extended by respective CDR lenders as per
guidelines.
The CDR package has been implemented in all respects with PNB as the
monitoring agency for monitoring the implementation of the CDR package.
9 The Company''s significant leasing arrangements are in respect of
operating leases for premises (office, stores, godowns, etc.). The
leasing arrangements, which are not non-cancellable, range between ten
months and three years generally, and are usually renewable by mutual
consent on agreed terms. The aggregate lease rentals Rs.148.51 lakhs
(31.03.2013:Rs.145.20 lakhs) payable are charged as rent in to the
statement of profit and loss.
10 Balances of Unsecured loans, receivables,payables and loans and
advances are subjects to their confirmation and reconcilations.
11 Previous period''s figures have been regrouped / reclassified
wherever necessary to correspond with the current year''s classification
/ disclosure.
Mar 31, 2013
1 Corporate information
"Sujana Metal Products Limited (SMPL) was incorporated in 02 May 1988
under the name of Sujana Steel Re-rolling Industries Private Limited.
The name of the company was changed to Sujana Steels Private Limited on
30 March 1992. The company was converted into public limited company on
20 April 1992. The company further changed its name as Sujana Metal
Products Limited w.e.f. 09 November 2001. The Company was promoted by
Sri Y.S.Chowdary, his associates and relatives.
The company was incorporated with an object to manufacture of steel
re-rolled products SMPL is engaged in the business of manufacturing and
marketing value added steel products. SMPL is categorized as a
secondary steel producer in the Industry.
SMPL is currently engaged in the business of Manufacture and trading of
steel products like Thermo Mechanically Treated (TMT) bars in different
sizes, Structural steels like Ms Angles, Ms Squares, Ms Beams and Ms
Channels etc and smart steel of varying shapes and dimensions for the
construction & infrastructure sector."
2 Employee Benefits
Defined contribution plans:
The Company makes Provident Fund contribution to defined contribution
plans for qualifying employees. Under the Scheme, the Company is
required to contribute a specified percentage of the payroll costs to
fund the benefits. The Company recognised Rs.66.77 lakhs (31.03.2012:
Rs.61.22 lakhs) for Provident Fund contributions in the Statement of
Profit and Loss. The contributions payable to these plan by the Company
are at rates specified in the rules of the scheme.
Defined benefit plans
The Company offers the following employee benefit schemes to its
employees:
i. Gratuity
ii. Compensated absences
Liability for retiring gratuity as on March 31, 2013 is Rs.248.20 lakhs
(31-3-2012: Rs.230.25 lakhs ) of which Rs.5.02 lakhs (31.3.2012:
15.67lakhs) is funded with the Life nsurance Corporation of India. The
balance of Rs.243.18 lakhs (31-3-2012: Rs.214.58 lakhs) is included in
Provision for Gratuity. The Liability for Gratuity and Cost of
Compensated absences has been actuarially determined and provided for
in the books.
i) Discount Rate
The discount rate is based on the prevailing market yield on Indian
Government Securities as at the balance sheet date for the estimated
term of the obligations.
ii) Expected Rate of Return on Plan Assets:
This is based on our expectation of the average long term rate of
return expected on investments of the Fund during the estimated term of
the obligations.
iii) Salary Escalation Rate
The estimates of future salary increase considered takes into account
the inflation, seniority, promotion and other relevant factors
3 Contingent liabilities and commitments (to the extent not provided
for)
As at 31 As at 31
Particulars March 2013 March 2012
a) Contingent liabilities
i) Claims against the Company not
acknowledged as debts in respect of:
Excise Duty 2,116.87 1,823.36
Custom Duty 797.67 523.37
TNVAT/APGST/CST 2,179.39 1,979.39
Income Tax (Net of liability as
per return) 1,517.25 1,037.07
FERA 630.00 630.00
ii) Guarantees
Corporate Guarantees furnished on behalf
of Sujana Universal 81,410.00 81,410.00
Industries Ltd
Joint Corporate Guarantee executed by
the Company along with - -
Sujana Universal Industries Ltd and Sujana
Towers Limited in favour of Alpha Ventures
Ltd and Sujana Holdings Ltd, Wholly Owned
Subsidiary of the Company and Sujana
Universal Industries Ltd respectively
[USD Nil (31.03.2012:Nil)]
Corporate guarantee furnished on behalf of
Optimix Enterprises 4,087.50 3,117.97
Limited (USD 75 lakhs)
4 Disclosures required under Section 22 of the Micro, Small and Medium
Enterprises Development Act, 2006
Trade payables (Ref: Note No.10 -Trade payables include Rs.Nil
(31.03.2012: Rs.Nil) due to micro enterprises and small enterprises as
defined under Micro, Small and Medium Enterprises Development Act, 2006
(MSMED Act 2006). The Company has not received any memorandum(as
required to be filed by the supplier with the notified authority under
the MSMED Act 2006) claiming their status as Micro or Small or Medium
Enterprises.
5. Scheme of Amalgamation
A Scheme of Amalgamation of M/s Lakshmi Gayatri Industries Private
Limited, M/s Glade Steel Private Limited, M/s Sri Ganga Steel
Enterprises Private Limited and M/s Topaz Steel India Limited with the
Company with effective from 1 October, 2009 (being Appointed Date)has
been approved by the shareholders and secured creditors of the Company
in the extra ordinary general meeting held on 28 April 2011. The
company filed its main petition with the Hon''ble High Court of Andhra
Pradesh for the sanction of Scheme of Amalgamation under Section 391
and 394 of the Companies Act, 1956 ,which was admitted on 15th
July''2011. In view of pending order of High Court of Andhra Pradesh,
the scheme has not been given effect in the Audited Financials of the
Company for the period ended 31 March 2012 and for the year ended
31.03.2013. Further the short-term loans and advances of Rs.7984.00
lakhs (31.03.2012:Rs774.77 lakhs)outstanding and receivable from these
amalgamating companies as on 31 March 2013 are considered good for
recovery by the management.
6. Stressed Assets Stabilization Fund (SASF) has communicated as
follows
"SASF vide their letter dated 02 December 2010 has confirmed a
Negotiated Settlement (NS) for the aggregate balance term loan
outstanding as on 31 December 2009 (being the cut-off date) in respect
of the Company and other Company viz.Sri Ganga Steel Enterprises
Private Limited (Company to be taken over in the scheme of
amalgamation) to the extent of Rs.7,706.00 lakhs, with following terms
and conditions:
a) Rs.3,051.00 lakhs to be paid in cash of which an amount of Rs.600
lakhs was paid against the crystallized cash portion of the settlement
amount and balance amount shall be payable in equal 5 installments the
date of issue of letter of approval (LOA). The first installment shall
be payable within a period of one week from the date of issue of LOA,
of which the Company has paid Rs.1,150 lakhs towards interest and
principal during the previous period.
b) Of the balance restructured term loan Rs.4,655 lakhs is to be
converted into equity share of Company as per SEBI Guidelines and 9%
p.a interest shall be payable till the date of conversion. Based on
the NS, a consolidated interest waiver of Rs.1300 lakhs has been given
by SASF. In view of pending amalgamation of Sri Ganga Steel
Enterprises Private Limited and non compliance of certain terms and
conditions, the Company has not accounted the term loan liability
relating to amalgamating Company (payable to SASF) and the interest
waiver to the extent of Rs.1,300 lakhs in the books during the period."
"Further the company vide its letter dated 21 March 2012 requested the
SASF for modifications in the terms of negotiated settlement conveyed
above vide letter No.BY/SASFSujana Metal/No.1793 dated 02 December
2010. The SASF vide its letter dated 02 April 2012 has agreed to extend
the time for conversion of Rs.4,655 lakhs into equity upto 31 March
2013 subject to payment of interest @ 9% per annum w.e.f 01 April 2010
and also agreed to reschedule the payment of balance cash portion of
settlment amount aggregating Rs.2,400 lakhs(subject to reconciliation)
The terms of payment are as follows.
a) Payment of 50 lakh per quarter during the first year commencing from
01 July 2011, payment of Rs.75 lakhs per quarter during the second year
commencing from 01 July 2013 and balance amount shall be payable in 12
equal quarterly installments commencing from 01 July 2014.
b) Interest @9% p.a on the settlement shall be payable along with the
above installments. In view of the pending compliance of certain terms
and conditions mentioned above, the scheme has not been given effect in
the books."
Further as per SASF letter dated 15 March 2013, crystallizes the SASF
dues to Rs.6,600 lakhs and is to be paid in cash carrying ROI @ 9% p.a
payable over 9 1/2 years and balance Rs. 1800 lakhs to be converted
into equity as per SEBI Guidelines. After giving effect to the CDR it
was decided that SASF dues as per June, 2008 package should be
considered for restructuring at par with other lenders including
clearance of interest overdue as on COD (October 1, 2012). As per
Bank''s advice Interest and other overdues of Rs18.20 crore as on COD,
to be cleared for restructuring of dues.
7. CDR IMPLEMENTATION & TERMS:
The loans of the company have been restructured under the Corporate
Debt Restructuring (CDR) System, The CDR package was sanctioned by CDR
Empowered Group, at the meeting held on 15.02.2013 and approval letters
have been given by the CDR Cell on 25.03.2013. where all the banks, who
have extended financial assistance & given the loans to the company,
have aggreed for restructure of the loans.
The letters from individual banks also have been issued by Banks &
Salient Features of the CDR package are given below:-
i) Cut-off date (COD) for loans has been cosnsidered as 1st October
2012. The loans outstanding as on this date has been cosnidered for
restructuring.
ii) Interest rate on the loans has been fixed at 11%p.a. during the
moratorium period (24 months) from cut off date after that it is 13%.
iii) Term Loans have been restructured with a moratorium of 24 months
from COD and repayable in 96 equal monthly installments starting from
1st October 2014.
iv) The irregularity in the Cash Credit has been carved out as Working
Capital Term Loan with a moratorium of 24 months from COD and repayable
in 96 equal monthly installments starting from 1st October 2014.
v) The unpaid interest as on 30.09.2012 and interest from 01.10.2012 to
28.02.2013 on term loans and interest from 01.10.2012 to 28.02.2013 on
WCTL has been restructured as Funded Interest Term Loan-I, repayable in
54 equal monthly installments starting from FY Oct 31, 2014 and ending
with March 31, 2019, after FITL - I is completely built up.
vi) The interest on Cash Credit from October 2012 to March, 2013 has
been restructured as Funded Interest Term Loan-II, repayable in 54
equal monthly installments starting form April 30, 2013 and ending with
September 2017, after FITL - II is completely built up.
vii) The Interest on loan of SASF from cut off date Oct 1, 2012 till
September 30, 2014 shall be converted into FITL I and interest would be
charged at 11%p.a. at monthly rests with a right to reset after two
years from cut-off date & thereafter annuallly. Interest on FITL - I
shall be serviced as and when due. Interest overdue prior to COD would
be converted to FITL I(A) to be repaid from FY 2014 to FY 2018 with 9%
interest p.a. at monthly rests.
viii) The Principle of SASF has been given moratorium of 24 months from
COD and repayable in 96 equal monthly instalments over a period of 8
years starting from Oct 31, 2014 and ending with September 30, 2022.
ix) Cash Credit and the Non-fund based limits as per the apprisal of
the banks.
x) Promoters shall bring funds as per the applicable terms of CDR
package.
xi) The lenders shall have the right to recompense the
reliefs/sacrifices/waivers extended by respective CDR lenders as per
guidelines.
The CDR package has been implemented in all respects with PNB as the
monitoring agency for monitoring the implementation of the CDR package.
8. The Company''s significant leasing arrangements are in respect of
operating leases for premises (office, stores, godowns, etc.). The
leasing arrangements, which are not non-cancellable, range between ten
months and three years generally, and are usually renewable by mutual
consent on agreed terms. The aggregate lease rentals Rs.140.20 lakhs
(31.03.2012:Rs.118.25 lakhs) payable are charged as rent in to the
statement of profit and loss.
9. Previous period''s figures have been regrouped / reclassified
wherever necessary to correspond with the current year''s classification
/ disclosure.
10. Balances of unsecured loans, receivables, payables and loans and
advances are subject to thier confirmation and reconciliations.
Mar 31, 2012
1 Corporate Information
Sujana Metal Products Limited (SMPL) was incorporated on 02 May 1988
under the name of Sujana Steel Re-rolling Industries Private Limited.
The name of the Company was changed to Sujana Steels Private Limited on
30 March 1992. The Company was converted into public limited Company on
20 April 1992. The Company further changed its name as Sujana Metal
Products Limited w.e.f. 09 November 2001.
The Company was promoted by Sri Y.S.Chowdary, his associates and
relatives. The Company was incorporated with an objective to
manufacture steel re-rolled products. SMPL is into the business of
manufacturing and marketing value added steel products. SMPL is
categorized as a secondary steel producer in the industry.
SMPL is currently engaged in the business of manufacture and trading of
steel products like Thermo Mechanically Treated (TMT) bars in different
sizes, structural steels like MS Angles, MS Squares, MS Beams and MS
Channels etc and smart steel of varying shapes and dimensions for the
construction & infrastructure sectors.
i) 13,140,489 Equity shares issued as fully paid up to the share
holders of erstwhile Sujana Steels Limited on its amalgamation with the
Company, for consideration other than cash in the last five years
immediately preceding the balance sheet date.
ii) The Company has only one class of shares referred to as equity
shares having a par value of Rs.5. Each holder of equity shares is
entitled to one vote per share held (other than the shares represented
by underlying GDR's which do not carrying a voting right).
In the event of liquidation, the equity share holders are eligible to
receive the remaining assets of the company after distribution of all
preferential amounts, in proportion to their share holding.
12,946,000 (31.03.2011:17,331,500) equity shares represent the shares
underlying outstanding Global Depository Receipts (GDRs). Each GDR
represents 10 underlying equity shares.
iii) Redemption of Cumulative Redeemable Preference Shares (CRPS)
1,493,365 1% Cumulative Redeemable Preference Shares of Rs.100 each
aggregating to Rs.1,493.37 lakhs is redeemable in 12 quarterly
installments co-terminus with principal payment commencing from 01
October 2013 and ending 01 July 2016. CRPS carry cumulative dividend
@1% per annum. The Company declares and pays dividend in Indian rupees.
In the event of liquidation, the preference shareholders are eligible
to receive the outstanding amount after distibution of all other
preferential amouts, in proportion to their shareholding.
Notes:
i) Term loan from banks viz. Punjab National Bank, Bank of India,
Indian Overseas Bank, IDBI Bank and Andhra Bank are secured by first
charge on all the immovable and movable fixed assets of the company
both present and future and second charge on the current assets of the
company. Further these loans are secured by personal guarantees and
properties of certain directors.
ii) Terms of repayments are given below:
a. Loan taken from Punjab National Bank carries an interest rate of
17% p.a and is repayable in 21 quarterly installments of Rs.472.17
lakhs each.
b. Loan taken from Bank of India carries an interest rate of 15% p.a
and is repayable in 21 quarterly installments of Rs.304.17 lakhs each.
c. Loan taken from Indian Overseas Bank carries an interest rate of
15% p.a and is repayable in 21 quarterly installments of Rs.181.38
lakhs each.
d. Loan taken from Andhra Bank carries an interest rate of 16.5% p.a
and is repayable in 21 quarterly installments of Rs.278.83 lakhs each.
e. Loan taken from IDBI Bank carries an interest rate of 13.75% and is
repayable in 18 quarterly installments of Rs.135.32 lakhs each.
iii) Term loan from financial institution viz. Stressed Assets
Stabilization Fund (SASF) secured by first charge on all the immovable
and movable fixed assets of the company and second charge on the
current assets of the company. As per SASF letter dated 02 December
2010, Rs.3,051 lakhs is to be paid in cash of which an amount of Rs.600
lakhs was paid against the crystallized cash portion of the settlement
amount and balance amount shall be payable in five equal monthly
installments from the date of issue of letter of approval (LOA) which
is 02 December 2010 and the balance restructured term loan of Rs.4,655
lakhs is to be converted into equity shares of Company as per SEBI
Guidelines and 9% p.a interest shall be payable till date of
conversion.
iv) Vehicle loans from banks and others are secured by hypothecation of
the vehicles financed through the loan arrangements and are repayable
over a period of 3 months to 35 months.
i) Loans repayable on demand include an amount of Rs. 55,026.14 lakhs
(31.03.2011:Rs.45,436.16 lakhs) represent working capital loans from
banks are inter alia secured by way of parri passu first charge on
current assets and parri passu second charge on fixed assets both
present and future. Further, these loans are secured by personal
guarantee and properties of certain directors.
ii) Loans repayable on demand also include an amount of Rs.600 lakhs
taken from Punjab National Bank which is secured by pledge of fixed
deposit amounting to Rs.696 lakhs.
iii) Unsecured loans from others in the previous period include certain
trade payables to the extent of Rs.9,780.42 lakhs, have been converted
into unsecured loans after obtaining the consent from the payees. These
unsecured loans are repayable within a period of one and half year and
carries an interest at the rate of 6% per annum.
Note:
Balances with banks include deposits amounting to Rs. Nil (31.03.2011:
Rs.696 lakhs) and margin monies amounting to Rs.1,449.50 lakhs
(31.03.2011: Rs.1,317.54 lakhs) which have an original maturity of more
than 12 months.
2 Employee Benefits
Defined contribution plans:
The Company makes Provident Fund contribution to defined contribution
plans for qualifying employees. Under the Scheme, the Company is
required to contribute a specified percentage of the payroll costs to
fund the benefits. The Company recognised Rs.61.22 lakhs (31.03.2011:
Rs.79.59 lakhs) for Provident Fund contributions in the Statement of
Profit and Loss. The contributions payable to these plan by the Company
are at rates specified in the rules of the scheme.
Defined benefit plans:
The Company offers the following employee benefit schemes to its
employees:
i. Gratuity
ii. Compensated absences
Liability for retiring gratuity as on 31 March 2012 is Rs.230.25 lakhs
(31.03.2011: Rs.192.75 lakhs ) of which Rs.15.67 lakhs (31.03.2011:
Nil) is funded with the Life Insurance Corporation of India. The
balance of Rs.214.58 lakhs (31.03.2011: Rs.192.75 lakhs) is included in
Provision for Gratuity.
The Liability for Gratuity and Cost of Compensated absences has been
actuarially determined and provided for in the books.
Details of the company's post-retirement gratuity plans for its
employees including whole time directors are given below, which is
certified by the actuary and relied upon by the auditors.
Note: In accordance with the payment of Gratuity Act, 1972 the company
provides for gratuity covering eligible employees.
The liability on account of gratuity is covered partially through a
recognized Gratuity Fund managed by Life Insurance Corporation of India
(LIC) and balance is provided on the basis of valuation of the
liability by an independent actuary as at the year end. The management
understands that LIC's overall portfolio of assets is well
diversified and as such, the long term return on the policy is expected
to be higher than the rate of return on Central Government bonds.
i) Discount Rate
The discount rate is based on the prevailing market yield on Indian
Government Securities as at the balance sheet date for the estimated
term of the obligations.
ii) Expected Rate of Return on Plan Assets:
This is based on our expectation of the average long term rate of
return expected on investments of the Fund during the estimated term of
the obligations.
iii) Salary Escalation Rate
The estimates of future salary increase considered taking into account
the inflation, seniority, promotion and other relevant factors
3 Segment information
The Company has identified business segments as its primary segment and
geographic segments as its secondary segment. Business segments are
primarily manufacture and trading of steel and steel products. Revenues
and expenses directly attributable to segments are reported under each
reportable segment. Expenses which are not directly identifiable to
each reportable segment have been allocated on the basis of associated
revenues of the segment and manpower efforts. All other expenses which
are not attributable or allocable to segments have been disclosed as
unallocable expenses. Assets and liabilities that are directly
attributable or allocable to segments are disclosed under each
reportable segment. All other assets and liabilities are disclosed as
unallocable. Fixed assets that are used interchangeably amongst
segments are not allocated to primary and secondary segments.
Geographical revenues are allocated based on the location of the
customer. Geographic segments of the Company are India and Others.
4 Contingent liabilities and commitments (to the extent not provided
for)
Rupees in lakhs
As at As at
Particulars 31 March 2012 31 March 2011
a) Contingent liabilities
i) Claims against the Company
not acknowledged
as debts in respect of:
Excise Duty 1,823.36 1,888.95
Custom Duty 523.37 593.59
TNVAT/APGST/CST 1,979.39 4,286.66
Income Tax (Net of liability
as per return) 1,037.07 -
FERA [Against which bank
guarantee of Rs.215 630.00 630.00
lakhs (31.03.2011: Rs.215 lakhs)
has been issued]
ii) Guarantees:
Corporate Guarantees furnished
on behalf of 81,410.00 53,100.00
Sujana Universal Industries Ltd
Joint corporate guarantee executed by the - 29,022.50
Company along with Sujana
Universal Industries
Limited (SUIL) and Sujana Towers Limited
in favour of Alpha Ventures
Limited (wholly
owned subsidiary of the Company)
and Sujana
Holdings Limited, wholly owned
subsidiary of
SUIL [ USD Nil (31.03.2011:
USD 650 lakhs)]
Corporate guarantee furnished
on behalf of 3,117.97 -
Optimix Enterprises Limited
[USD 60 lakhs
(31.03.2011:USD Nil)]
b) Commitments
i. Estimated amount of contracts
remaining to be - 9,059.74
executed on capital account
and not provided for
on account of tangible assets
[net of advances of
Rs.5,275.96 lakhs (31.03.2011:
19,682.72 lakhs]
ii. Export commitments on account
of import of 112.16 112.16
machinery and equipments at concessional
duty under EPCG scheme Rs.672.96 lakhs
(31.03.2011 : Rs.672.96 lakhs).
Such export
commitments need to be fulfilled by the
Company on or before 23 April 2016. As on
31 March 2012, the Company has
fulfilled its
export commitments and which are pending
final approval of Director
General of Foreign
Trade. In the event of
non-fulfillment of the
export commitments by 23 April 2016 by the
Company, the liability (excluding
interest and
penalties) towards customs duty
5 Disclosures required under Section 22 of the Micro, Small and Medium
Enterprises Development Act, 2006
Trade payables (Ref: Note No.10 -Trade payables include Rs. Nil
(31.03.2011: Rs. Nil) due to micro enterprises and small enterprises as
defined under Micro, Small and Medium Enterprises Development Act, 2006
(MSMED Act 2006). The Company has not received any memorandum (as
required to be filed by the supplier with the notified authority under
the MSMED Act 2006) claiming their status as Micro or Small or Medium
Enterprises.
6 Scheme of Amalgamation
A Scheme of Amalgamation of M/s Lakshmi Gayatri Industries Private
Limited, M/s Glade Steel Private Limited, M/s Sri Ganga Steel
Enterprises Private Limited and M/s Topaz Steel India Limited with the
Company with effective from 1 October, 2009 (being Appointed Date) has
been approved by the shareholders and secured creditors of the Company
in the extra ordinary general meeting held on 28 April 2011. The
Company filed its main petition with the Hon'ble High Court of Andhra
Pradesh for the sanction of Scheme of Amalgamation under Section 391
and 394 of the Companies Act, 1956 ,which was admitted on 15 July 2011.
In view of pending order of High Court of Andhra Pradesh, the scheme
has not been given effect in the Audited Financials of the Company for
the financial year/period ended 31 March 2012 and 31 March 2011.
Further the short-term loans and advances of Rs.774.77 lakhs
(31.03.2011:Rs.5,202.50 lakhs) outstanding and receivable from these
amalgamating companies as on 31 March 2012 are considered good for
recovery by the management.
7 Stressed Assets Stabilization Fund (SASF) has communicated as
follows
SASF vide their letter dated 02 December 2010 has confirmed a
Negotiated Settlement (NS) for the aggregate balance of the term loans
outstanding as on 31 December 2009 (being the cut-off date), to the
extent of Rs.7,706.00 lakhs, in respect of: Sujana Steels Limited
(since merged with the company), Sri Ganga Enterprises Limited (scheme
of amalgamation consisting of its merger with the Company is awaiting
High Court approval); Handum Industries Limited and Sarita Steels
Limited, whose operating divisions were acquired by the Company under
slump sale, on following terms and conditions:
a) Rs.3,051.00 lakhs to be paid in cash, with a down payment and
balance in 5 installments;
b) The balance amount of Rs.4,655 lakhs is to be converted into equity
shares of Company as per SEBI Guidelines and 9% p.a interest shall be
payable till the date of conversion.
Further the Company vide its letter dated 21 March 2012 requested the
SASF for modifications in the terms of negotiated settlement conveyed
above vide letter dated 02 December 2010. The SASF vide its letter
dated 02 April 2012 has agreed to extend the time till 31 March 2013,
for conversion of Rs.4,655 lakhs together with interest at 9% p.a, from
01 April 2010, into equity, up to 31 March 2013. SASF also agreed to
reschedule the payment of balance cash portion of settlement amount
aggregating Rs.2,400 lakhs (subject to reconciliation) as under:
a) Payment of 50 lakh per quarter during the first year commencing from
01 July 2012, payment of Rs.75 lakhs per quarter during the second year
commencing from 01 July 2013 and balance amount shall be payable in 12
equal quarterly installments commencing from 01 July 2014.
b) Interest @9% p.a on the settlement shall be payable along with the
above installments.
Based on the negotiated settlement, a consolidated interest waiver of
Rs.1,300 lakhs has been given by SASF. In view of pending amalgamation
as said above, the Company has not accounted the term loan liability
relating to amalgamating Company (payable to SASF) and the interest
waiver to the extent of Rs.1,300 lakhs in the books during the year.
The balance outstanding as at 31 March 2012 has not been confirmed by
SASF.
8 The Company's significant leasing arrangements are in respect of
operating leases for premises (office, stores, godowns, etc.). The
leasing arrangements, which are not non-cancellable, range between ten
months and three years generally, and are usually renewable by mutual
consent on agreed terms. The aggregate lease rentals Rs.118.25 lakhs
(31.03.2011:Rs.272.38 lakhs) payable are charged as rent to the
statement of profit and loss.
9 Acquisition of a Unit of Handum Industries Limited
During the year, the Company acquired an operating unit from Handum
Industries Limited on 'slump sale basis'. As part of this
acquisition, the Company has taken over the outstanding dues of Rs.
2,168.30 lakhs payable to SASF (Stressed Assets Stabilization Fund), a
division of IDBI. SASF had approved of the takeover of this loan and
restructured the same to Rs. 1,050 lakhs which is part of the
negotiated settlement as explained in note no.41 of the financial
statements.
10 The financial statements have been prepared for 12 months i.e. 01
April 2011 to 31 March 2012 and are not strictly comparable with
previous period's figures as the same is for 18 months period i.e.,
from 01 October 2009 to 31 March 2011.
11 The Revised Schedule VI has become effective from 1 April 2011 for
the preparation of financial statements. This has significantly
impacted the disclosure and presentation made in the financial
statements. Previous period's figures have been regrouped /
reclassified wherever necessary to correspond with the current year's
classification / disclosure.
Mar 31, 2011
1 Contingent Liabilities not provided for:
a) Letters of Credit / Bills Discounted and Guarantees Issued:
(Rupees in Lakhs)
As at As at
Particulars
31.03.2011 30.09.2009
i) Letters of Credit / Bills Discounted 37,300.47 25,187.36
ii) Counter Guarantees given to Bank towards:
- Bank Guarantees Issued 874.52 1,178.00
iii) Corporate Guarantees furnished on
behalf of Sujana Universal 53,100.00 10,860.00
Industries Ltd
iv) Corporate Guarantees furnished on
behalf of Sujana Universal à 2,376.39
Industries Ltd [USD Nil (30.09.2009:
USD 49.17 lakhs)]
v) Joint Corporate Guarantee executed by
the Company with Sujana 29,022.50 31,414.50
Universal Industries Ltd and Sujana Towers
Limited in favour of Alpha Ventures Ltd
and Sujana Holdings Ltd, Wholly Owned
Subsidiary of the Company and Sujana
Universal Industries Ltd respectively
[USD 650 lakhs(30.09.2009: USD 650 lakhs)]
b) Disputed Taxes (Rupees in Lakhs)
As at As at
Particulars
31.03.2011 30.09.2009
i) Excise Duty 1,888.95 1,182.66
ii) Custom Duty 593.59 622.71
iii) TNVAT/APVAT/APGST/CST * 4,286.66 12,037.22
iv) Income Tax à 267.01
v) FERA** 630.00 630.00
*Excludes Rs. 8,050.49 Lakhs disputed tax pertain to APGST for the year
2004-05 and APVAT for the years from 2005-06 to 2007-08 set aside by
High Court of Andhra Pradesh in favour of the Company, consequential
revision orders has to be passed by the Commercial Tax Officer, Sri
Nagar Colony, Hyderabad.
** Against which bank guarantee of Rs. 215 lakhs has seen issued.
2 Secured and Unsecured Loans
a) Secured Loans
i) Term loans availed from banks and financial institution are secured
by first charge on all the immovable and movable fixed assets of the
Company both present and future, second charge on the current assets of
the Company.
ii) Short term loan availed from bank is secured by subsequent and
subservient charge on current assets of the Company.
iii) Working capital facilities availed from banks are inter alia
secured by way of pari passu first charge on the current assets and
pari passu second charge on fixed assets both present and future.
Further a working capital facility availed from a bank is secured by a
Corporate Guarantee of Sujana Universal Industries Ltd.
All the above loans are further secured by personal guarantee and
personal properties of certain directors.
iv) Vehicle loans availed are secured by hypothecation of respective
assets financed.
v) Secured loans includes interest accrued and due of Rs.1,734.55 lakhs
(30.09.2009 : Rs.333.01 lakhs).
b) Unsecured Loans
Unsecured loans includes certain trade creditors dues to the extent of
Rs. 9,780.42 lakhs which have been converted into unsecured loans after
obtaining the consent from respective trade creditors. These unsecured
loans are repayable within a period of one and half year which carries
an interest at the rate of 6% per annum. In respect of previous year
the Company has obtained Unsecured loans from certain Companies which
are repayable within one year to meet Capital & Working Capital
requirements . These loans are interest free for an initial period of
six months and thereafter carries interest @ BPLR 2%.
3 Advances to Subsidiaries
The Reserve Bank of India vide their letter
FE.CO.FID/20754/10.04.031/2010-11 dated 04.03.2011 and
FED.CO.FID/24876/10.04.031/2010-11 dated 25.04.2011 has instructed the
Company to convert entire advance of Rs.13,581.35 lakhs given to its
Wholly Owned Subsidiaries (WOS's) out of GDR proceeds into equity
within 120 days from the date of receipt of the letter, falling due for
conversion on or before 23 August, 2011
4 Dues from Diretors
Loans and Advances Includes:
Advances to directors : Rs.Nil (30.09.2009 - Rs.4.69 lakhs)
Maximum amount outstanding during the period : Rs.4.69 lakhs
(30.09.2009 : Rs.11.70 lakhs)
5. Related Party Disclosure
The following are related parties as defined in "Accounting Standard
(AS) 18 - Related Party Disclosures" notified under The Companies
(Accounting Standards) Rules, 2006.
I. List of Related Parties
A Subsidiaries Country of Incorporation Relationship
1 Glade Steel Pvt Ltd. India Subsidiary
2 Alpha Ventures Ltd. Cayman Islands Wholly Owned Subsidiary
3 Asian Tide Enterprises Ltd. Hong Kong Wholly Owned Subsidiary
B Associates
1 Sujana Power (Gangikondan) Ltd. Ceased since 07.12.10
2 Sujana Power (Tuticorin) Ltd. Ceased since 07.12.10
C Key Management Personnel
1 Mr. R. K. Birla Managing Director
2 Mr. S. Hanumantha Rao Director (Finance)
6 Employee Benefits
The company liability on account of Employee benefits comprising
Gratuity- a defined benefit scheme and compensated absences has been
determined in accordance with the requirements of Accounting Standard
(AS)-15 notified by the Companies (Accounting Standards) Rules, 2006.
Disclosures required in terms of the requirement of AS-15.
i) Discount Rate
The discount rate is based on the prevailing market yield on Indian
Government Securities as at the balance sheet date for the estimated
term of the obligations.
ii) Salary Escalation Rate
The estimates of future salary increase considered takes into account
the inflation, seniority and other relevant factors
7 Segment Reporting
The Company is primarily engaged in the business of manufacturing and
trading of Steel & Steel products. The Company has identified two
primary business segments, namely manufacting and trading of steel &
steel products, in terms of Accounting Standard-17 on "Segment
Reporting" which constitutes the reportable segments.
Segements have been identified taking into account the nature of the
products,the differing risks and returns, the organisational structure
and internal reporting system.
Segment Revenue, Segment Results, Segment Assets and Segment
Liabilities include the respective amounts identifiable to each of the
segments as also amounts allocated on a reasonable basis. The expenses,
which are not directly relatable to the business segement, are shown as
unallocated corporate cost. Assets and Liabilities that cannot be
allocated between the segments are shown as unallocated corporate
Assets and Liabilities respectively.
8 Sundry creditors (Ref: Schedule 11 - Current Liabilities) include
Rs.Nil due to micro enterprises and small enterprises as defined under
Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act
2006). The Company has not received any memorandum(as required to be
filed by the supplier with the notified authority under the MSMED Act
2006) claiming their status as Micro or Small or Medium Enterprises.
9 Scheme of Amalgamation
A Scheme of Amalgamation of M/s Lakshmi Gayatri Industries Private
Limited, M/s Glade Steel Private Limited, M/s Sri Ganga Steel
Enterprises Private Limited and M/s Topaz Steel India Limited with the
Company with effective from 1 October, 2009 (being Appointed Date)has
been approved by the shareholders and secured creditors of the Company
in the extra ordinary general meeting held on 28 April 2011. The
petition will be submitted by the Company with the Hon'ble High Court
of Andhra Pradesh for the sanction of Scheme of Amalgamation under
Section 391 and 394 of the Companies Act, 1956 in the month of June,
2011. In view of pending order of High Court of Andhra Pradesh, the
scheme has not been given effect in the Audited Financials of the
Company for the period ended 31 March 2011 (18 months period (i.e. from
1.10.2009 to 31.03.2011). Further the loans and advances of Rs.5,202.50
lakhs (30.09.2009: Rs.785.39 lakhs)outstanding and receivable from
these amalgamating companies as on 31 March 2011 are considered good
for recovery by the management.
10 Cumulative Redeemable Preference Shares
1,493,365 1% of Cumulative Redeemable Preference Shares of Rs.100 each
aggregating to Rs.1493.37 lakhs is redeemable in 12 quarterly
installments co-terminus with principal payment commencing from October
01, 2013 and ending July 01, 2016
11 Stressed Assets Stabilization Fund (SASF) has communicated as
follows
SASF vide their letter dated 02 December 2010 has confirmed a
Negotiated Settlement (NS) for the balance term loan outstanding as on
31 December 2009 (being the cut-off date) in respect of the Company and
other two companies viz. Handum Industries Limited under the slump sale
agreement and Sri Ganga Steel Enterprises Limited under the scheme of
amalgamation to the extent of Rs.7,706.00 lakhs, with the following
terms and conditions:
a) Rs.3,051.00 lakhs to be paid in cash of which an amount of Rs.600
lakhs was paid against the crystallized cash portion of the settlement
amount and balance amount shall be payable in equal five installments
the from date of issue of letter of approval (LOA). The first
installment shall be payable within a period of one week from the date
of issue of LOA, of which the Company has paid Rs.1,250 lakhs during
the period. The Company vide letter dated 26.03.2011 requested SASF to
give extension of time for repayment of balance amount in twelve
monthly installments commences from 01.04.2011.
b) Of the balance restructured term loan Rs.4,655 lakhs is to be
converted into equity share of Company as per SEBI Guidelines and 9%
p.a interest shall be payable till the date of conversion. Based on
the NS, a consolidated interest waiver of Rs.1300 lakhs has been given
by SASF. In view of pending amalgamation of Sri Ganga Steel
Enterprises Limited and Handum Industries Limited under the slump sale
agreement, the Company has not accounted the term loan liability
relating to amalgamating Company (payable to SASF) and the interest
wavier to the extent of Rs.1,300 lakhs in the books during the period.
The balances outstanding as at March 31, 2011 has not been confirmed by
SASF.
c) Stressed Assets Stabilization Fund (SASF) vide their letter dated
June 25, 2008 has informed the Company to covert 2,038,260 1% of
Cumulative Redeemable Preference Shares of Rs. 100 each aggregating to
Rs. 2,038.26 lakhs into equity of Rs.1,875 lakhs and term loans of
Rs.163.26 lakhs, as part of its restructuring of dues payable to them.
12 The Company's significant leasing arrangements are in respect of
operating leases for premises (office, stores, godowns, etc.). The
leasing arrangements, which are not non-cancellable, range between ten
months and three years generally, and are usually renewable by mutual
consent on agreed terms. The aggregate lease rentals payable are
charged as rent in to the profit and loss account.
13 Comparatives:
The financial statements have been prepared for 18 months i.e. October
01, 2009 to March 31, 2011 and are not strictly comparable with
previous year's figures as the same for 12 months period i.e., from
October 1, 2008 to September 30, 2009.
14 Previous year's figures have been regrouped / restated wherever
necessary.
Sep 30, 2009
1 Contingent Liabilities not provided for:
a) Letters of Credit/Bills Discounted and Guarantees issued
Particulars As at As at
30.09.2009 30.09.2008
i) Letters of Credit/Bills
Discounted INR 413,739,676 INR 1,787,965,481
ii) Counter Guarantees given to Bankers towards:
- Bank Guarantees issued INR 117,827,959 INR 73,889,000
iii) Corporate Guarantees furnished on behalf of
Sujana Universal
Industries Ltd INR 1,086,000,000 INR 1,164,440,000
iv) Corporate Guarantees
furnished on behalf of
Sujana Universal
Industries Ltd. USD 4,916,992 USD 4,916,992
v) Joint Corporate
Guarantee executed by the USD 65,000,000 USD 65,000,000
company along with Sujana Universal
Industries Ltd (SUIL) and Sujana Towers Limited
(STL) in favour of Alpha Ventures Ltd and
Sujana Holdings Ltd, which are wholly owned
subsidiaries of Sujana Metal Products Limited
and Sujana Universal Industries Ltd respectively.
2 Secured and Unsecured Loans
a> Secured Loans
i) Term Loans availed from banks and others are secured by way of first
charge on the entire assets of the Company, both present and future,
subject to the prior charges, created for the borrowing of working
capital and further secured by the personal guarantees of certain
directors.
ii) Working Capital facilities availed from banks are inter alia
secured by way of pari passu first charge on the current assets and
pari passu second charge on fixed assets both present and future and
secured by the personal guarantees of certain directors of the Company.
Further one of the facilities availed from bank is secured by Corporate
Guarantee of Sujana Universal Industries Ltd.
iii) Secured loans includes interest accrued and due of Rs. 33,300,988
(30.09.2008 - Rs.14,331,095)
b) Unsecured Loans
i) During the year the Company has obtained Unsecured loans from
certain Companies which are repayable within one year to meet Capital &
Working Capital requirements. These loans are interest free for a
initial period of six^nonths and thereafter carry interest @ BPLR+2%.
ii) Unsecured loans: Due to Director Rs. Nil (30.09.2008 -Rs.
Nil)"Maximum due during the year - Rs. Nil (30.09.2008 - Rs.9,275,000)
4 Dues from Directors
a) Sundry Debtors Sundry debtors include:
Receivable from directors - Rs. Nil (30.09.2008 -Rs. 1,632,133)
Maximum outstanding during the year - Rs. 1,632,133 (30.09.2008-Rs.
1,632,133)
b) Loans and Advances Loans and Advances include:
Advances to directors - Rs. 468,825 (30.09.2008- Rs.700,907)
Maximum outstanding during the year - Rs. 1,169,732 (30.09.2008-
Rs.700,907)
3 Related Party Transactions
The following are related parties as defined in Accounting Standard 18
notified under The Companies (Accounting Standards) Rules, 2006.
3.1 List of Related Parties Relationship
A). Enterprises Where Control Exists:
Subsidiaries
Name Country of Incorporation
1). Glade Steel Pvt Ltd. India Wholly Owned Subsidiary
2). Alpha Ventures Ltd. Cayman Islands Wholly Owned Subsidiary
3). AsianTlde Enterprises
Ltd. Hong Kong Wholly Owned Subsidiary
B). Associate
1). Sujana Power (Gangikondan) Ltd.
2). Sujana Power (Tuticorin) Ltd.
C). Key Management Personnel
1). Mr R.K.Birla Managing Director
2). Mr. S.Hanumantha Rao Executive Director
4 Segment Reporting
The company is primarily engaged in the business of manufacturing and
sales of Steel & Steel products and trading of Steel and Steel
products. The company has identified two primary business segments,
namely manufacting of Steel and Steel products and trading of Steel &
Steel products, which in the contest of accounting standard -17 on
"Segment Reporting" constitute reportable segments.
5 Employee Benefits
a) Gratuity
Gratuity This is a unfunded defined benefit plan. Scheme Description
The Scheme provides for a lump sum benefit, subject to a vesting period
of 5 years in case of early separation, based on final salary drawn and
years of service.
b) Compensated absences
The accrual for unutilized leave is determined for the entire available
leave balance standing to the credit of the employees at year -end. The
value of such leave balance eligible for carry forward, is determined
by an independent actuarial valuation and charged to profit and loss
account in the year determined
6 Additional information pursuant to the provisions of Paragraph 3,4C
and 4D of Part II of Schedule VI to the Companies Act. (a) Purchase of
finished goods for resale
During the year, the company purchased 361,532 MT(previous period
253,842 MT) of finished Steel Products in order for resale.
7 Sundry creditors (Schedule 11- Current Liabilities) include Rs. nil
due to micro enterprises and small enterprises as defined under Micro,
Small and Medium Enterprises Development Act, 2006 (MSMED Act 2006).
The Company has not received any memorandum (as required to be filed by
the supplier with the notified authority under the MSMED Act 2006)
claiming their status as Micro or Small or Medium Enterprises.
8 Forfeiture of advance for Share Warrants.
The promoter group had applied for 60,500,000 share warrants which
would be converted into equity shares at a price of Rs. 36 each (Rs. 5
per share and Rs.31 premium) as per the DIP Guidelines of SEBI and had
paid Rs.938,400,000 which in excess of 10% of the excercised price
payable on allotment of warrants. The holder of share warrants did not
exercise the option to convert 51,300,000 share warrants in a
stipulated period of 18 months. The company is legally advised that the
amount paid in excess of 10% issue price, interms of DIP guidelines can
be refunded to the warrant holders. Consequently, in accordance with
SEBI Guidelines, the amount equivalent to 10% of issue price
aggregating to Rs. 184,680,000 has been forfeited and transferred to
Capital Reserve, the amount of Rs.61,920,000 has been refunded and the
balance amount of Rs.360,600,000 has been treated as unsecured loan as
per agreement entered by the Company.
9 Cumulative Redeemable Preference Shares
Cumulative Redeemable Preference Shares consist of:
2,038,260 1% of Cumulative Redeemable Preference Shares of Rs. 1QQ each
aggregating to Rs. 203,826,000 would be redeemable in 12 quarterly
installments co-terminous with principal payment commencing from July
01, 2015 and ending on April 01, 2018.
1,493,365 1% of Cumulative Redeemable Preference Shares of Rs. 100 each
aggregating to Rs. 149,336,500 would be redeemable in 12 quarterly
installments co-terminous with principal payment commencing from
October 01, 2013 and ending on July 01, 2016.
10 Stressed Assets Stabilization Fund (SASF) has communicated as
follows:
a) In terms of letter dated June 25,2008 outstanding term loan of Rs.
187,500,000 is to be converted into equity shares of the company as per
SEBI Guidelines with in a period of 4 months.
b) In terms of letter dated December 04, 2008 accrued interest
approximately of Rs. 9,300,000 is to be converted into equity shares of
the company as per extant SEBI Guidelines before February 28, 2009.
c) In terms of letter dated December 06,2008 accrued interest
approximately of Rs. 19,800,000 is to be converted into equity shares
of the company at par and all formalities relating to allotment are
required to be completed by the company before February 28, 2009.
In veiw of above terms, the company has allotted 12,377,143 equity
shares of Rs. 5 each at a premium of Rs. 12.50 per share to SASF on
November 19, 2009.
11 Comparatives
The accounts have been prepared for 12 months i.e. October 1, 2008 to
September 30, 2009 and are not strictly comparable with previous
periods numbers15 months i.e., for the period July 1, 2007 to
September 30, 2008.
12 Previous periods figures have been recast/restated wherever
necessary.
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