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Notes to Accounts of Tinplate Company of India Ltd.

Mar 31, 2017

Note:

a. Site, Water and Drainage System and Building (Except at kolkata) are on leasehold land.

b. Amount Adjusted on account of Lease assets transfer on completion of lease term.

c. Obligations under Finance Lease:

The Company has acquired Plant and Machinery under financial lease arrangements. Minimum Lease Payments outstanding and other particulars in respect of leased assets are as under:

Information about major customer

Before accepting any new customer, the Company uses their own credit scoring system to access the potential customers credit quality and define credit limit by customer. Limits and scoring attributes to customer are reviewed twice a year. Trade receivable balance as at March 31, 2017 of Rs. 4,554.48 lacs (as at March 31,2016 of Rs. 3,842.86 lacs and as at April 1,2015of? 2,806.05 Lacs) is due from Tata Steel, the company''s largest customer. There are no customers who represents more than 10%ofthe total balance of trade receivable.

Rights and restrictions attached to shares Equity shares:

The company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held. The dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, in proportion to their shareholding.

Grants relating to property, plant and equipment primarily relate to duty saved on imports of capital goods under the EPCG scheme. Under such scheme the group is committed to export certain items of the duty saved on import of capital goods over the specified period. Such grants recognized are released to the statement of profit and loss on the basis of the fulfillment of the export obligation.

Note:

i) Salaries and wages including bonus include amount of Rs. 994.37 Lacs (2015-16 Rs.488.96 Lacs) incurred towards early retirement opportunity scheme.

ii) The company has recognized, in the statement of profit and loss for the current period, an amount of Rs.219.76 Lacs (2015-16: Rs.203.08 Lacs) as expenses under the following kinds of employee benefits with respect to Key managerial personnel:

1 Employee Benefits

2. Defined contribution plans:

The Company participates in a number of defined contribution plans on behalf of relevant personnel. Any expense recognized in relation to these schemes represents the value of contributions payable during the period by them at rates specified by the rules of those plans. The only amounts included in the balance sheet are those relating to the prior month''s contributions that were not due to be paid until after the end of the reporting period.

The Company has recognized, in the Statement of Profit and Loss for the year ended 31.03.2017,an amount of Rs.872.72 Lacs (2015-16 Rs.888.20 lacs) as expenses under the following defined contribution plan

Provident fund:

In accordance with Indian law, eligible employees of Company are entitled to receive benefits in respect of provident fund, a defined contribution plan, in which both employees and the Company make monthly contributions at a specified percentage of the covered employees salary (currently 12% of employees salary). The contributions, as specified under the law, are made to the provident fund and pension fund set up as an irrevocable trust by the company.

Superannuation fund

The company have a superannuation plan. Employees who are members of the defined benefit superannuation plan are entitled to benefits depending on the years of service and salary drawn. Separate irrevocable trusts are maintained for employees covered and entitled to benefits. The company contribute up to 15%or Rs.1,00,000,whichever is lower, of the eligible employees salary to the trust every year. Such contributions are recognized as an expense when incurred. The company has no further obligation beyond this contribution.

Other:

Other consist of Company and employees contribution to Employees Pension Scheme

31.02 Defined benefit plan:

The company sponsors funded defined benefit plans for qualify employees. The defined benefit plan are adminisable by a separate fund that is legally separate from the entity. The board of the fund is required by law and by the articles of association to act in the interest of the fund and relevant state holder in the scheme. The board of the fund is responsible for the investment policy with regard to the assets of the fund.

The Company operates following post employment / other long term defined benefits plans:

Funded

i. Gratuity Non funded

i. Post Retirement Medical Benefit (PRMB)

ii. Compensated absence

iii. Long Service Award (LSA)

iv. Other Retirement Benefit (ORB)

The Company is expose to number of risk the most significant of which are detailed below:

Investment risk

The plan liabilities are calculated using a discount rate set with references to corporate bond yields; if plan assets under perform compared to the corporate bonds discount rate, this will create or increase a deficit. The defined benefit plans hold a significant proportion of equity type assets, which are expected to outperform corporate bonds in the long-term while providing volatility and risk in the short-term.

As the plans mature, the Company intends to reduce the level of investment risk by investing more in assets that better match the liabilities.

Changes in bond yields

A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan''s debt investment.

Life expectancy

The majority of the plan s obligations are to provide benefits for the life of the member, so increases in life expectancy will result in an increase in the plan s liabilities. This is particularly significant in the post- retirement medical benefit defined benefit plans, where inflationary increases result in higher sensitivity to changes in life expectancy.

Salary risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.

31.05 The expenses for the above mentioned benefits have been disclosed under the following line items:

i) Compensated Absence and ORB - under Salaries and wages, including bonus.

ii) Gratuity - under Contribution to providend and other funds.

iii) Long Service Award and PRMB - under Staff Welfare Expense.

3. Significant actuarial assumption for the determination of the defined obligations are discount rate, expected salary income and mortality. The sensitivity analysis below have been determined based on reasonably possible change of the respective assumption occurring at the end of the reporting period, while holding all other assumption constant.

4. Corporate Social Responsibility Expenditure

Other General expenses and Employees Benefit Expenses include amount incurred for Corporate Social Responsibility Expenditure as required under section 135 of the Companies Act, 2013.

5. Proposed Dividend

In respect of the year ended March 31,2017,the directors propose that a dividend of Rs. 1.60 per share be paid on fully equity share. This equity dividend is subject to approval by shareholders at the Annual General Meeting and has not been included as a liability in these financial statements. The proposed equity dividend is payable to all holders of fully paid equity shares. The total estimated equity dividend to be paid is Rs.1,674.68 Lacs.

On July 05, 2016, a dividend of Rs.2 per share (Total dividend Rs.2,093.35 Lacs) was paid to the holders of Fully paid Equity shares. In September 28 2015, the dividend was paid Rs.1.60 per share (Total dividend Rs.1,674.68 Lacs).

6 Financial instruments 38.01 Capital management

The Company''s capital management is intended to create value for shareholders by facilitating the meeting of long-term and short-term goals of the Company.

The Company determines the amount of capital required on the basis of annual operating plans and long-term product and other strategic investment plans. The funding requirements are met through equity and other long-term/short-term borrowings.

The Company''s policy is aimed at combination of short-term and long-term borrowings. The Company monitors the capital structure on the basis of total debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

7 Disclosures on financial instruments

This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments.

The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognized, in respect of each class of financial asset, financial liability and equity instrument are disclosed in note 2.15to the financial statements.

Financial Assets and Liabilities

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Level 1 to Level 3,as described below.

Quoted prices in an active market (Level 1):

This level of hierarchy includes financial assets that are measured by reference to quoted prices (unadjusted) in active markets for identical assets or liabilities. This category consists quoted equity shares, quoted corporate debt instruments and mutual fund investments.

Valuation techniques with observable inputs (Level 2):

This level of hierarchy includes financial assets and liabilities, measured using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

Valuation techniques with significant unobservable inputs (Level 3):

This level of hierarchy includes financial assets and liabilities measured using inputs that are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part, using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument no rare they based on available market data. The main items in this category are unquoted available-for-sale financial assets, measured at fair value.

Some of the Company''s Financial assets and liabilities are measured at fair value at the end of each reporting period.

Notes:

i) The short-term financial assets and liabilities are stated at amortized cost which is approximately equal to their fair value.

ii) Investments carried at their fair values, are generally based on market price quotations. The fair value in respect of the unquoted equity investments cannot be reliably measured.

iii) Management uses its best judgment in estimating the fair value of its financial instruments. However, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not necessarily indicative of all the amounts that the Company could have realized or paid in sale transactions as of respective dates. As such, the fair value of the financial instruments subsequent to the respective reporting dates may be different from the amounts reported at each year end.

iv) There have been no transfers between level 1 and level 2 for the years ended March 31,2016and 2015.

8. Financial risk management objective

In the course of its business, the Company is exposed primarily to fluctuations in foreign currency exchange rates, interest rates, equity prices, liquidity and credit risk, which may adversely impact the fair value of its financial instruments. The Company has a risk management policy which not only covers the foreign exchange risks but also other risks associated with the financial assets and liabilities such as interest rate risks and credit risks. The risk management policy is approved by the board of directors. The risk management frame work aims to:

i. Create a stable business planning environment by reducing the impact of currency and interest rate fluctuations on the Company''s business plan.

ii. Achieve greater predictability to earnings by determining the financial value of the expected earnings in advance.

9. Market Risk

Market risk is the risk of any loss in future earnings, in realizable fair values or in future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity price fluctuations, liquidity and other market changes. Future specific market movements cannot be normally predicted with reasonable accuracy.

10. Foreign currency Exchange Rate risk

The company undertake transactions in foreign currencies, consequently, exposures to exchange rate fluctuations arise. Exchange rate exposure are managed with in approved policy parameters utilizing forward foreign exchange contracts.

The Carrying amount of the companies foreign currency determinated monetary assets and monetary liabilities at the end of the reporting period are as follows :

The following table details company''s sensitivity to 10% increase or decrease in the INR against the relevant to foreign currencies. 10% is the sensitivity rate used when reporting foreign currency risk internally to key management personal and represents managements assessment of the reasonably possible change in the foreign exchange rate. The sensitivity analysis include only outstanding foreign currency denominates monetary items and adjust these transaction at the period end for a 10%change in foreign currency rate.

11. Interestrate risk management

The company is exposes to interest rate risk because company borrow fund at both fixed and floating interest rate. If interest rate had been 50 basis points higher/lower and all other variables were held constant, the Company''s Profit for the year ended March 31,2017 would decrease/increase by Rs. 0.51 Lacs For the year ended March 31 2016 Rs. 10.98 Lacs).

12. Credit risk management

Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses both the direct risk of default and the risk of deterioration of creditworthiness as well as concentration risks. Financial instruments that are subject to concentrations of credit risk, principally consist of investments trade receivables, loans and derivative financial instruments. None of the financial instruments of the Company result in material concentrations of credit risks. The risk relating to trade receivables is shown under note no. 7.

13. Liquidity risk management

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company has obtained fund and non-fund based working capital lines from various banks. The Company invests its surplus funds in bank fixed deposit and liquid and liquid plus schemes of mutual funds, which carry no/low mark to market risk. The table below provides details regarding the contractual maturities of financial liabilities including estimated interest payments as at March 31,2017,2016and April 1,2015.

* Other than demands amounting to Rs. 9.75 Lakhs (31.03.2016: Rs. 9.75 Lacs, 01.04.2015 Rs.9.75 Lacs).

$ Other than items remanded back for fresh assessment.

# Company has been getting exemption till 31.12.2004. Our application for exemption was pending for the period 01.01.2005 to 31.12.2010 before the ESI authorities, which was denied on alleged technical ground. Company has filed an appeal before The Hon''ble Jharkhand High Court, on which a stay has been granted. In the mean time company received recovery notice for Rs. 8.78 lakhs for the period 01.01.2005 to 31.07.2005. No other demand has been raised by The ESI Corporation in absence of which contingent liability for the period in which exemption was denied is not ascertainable.

14. The Company had claimed a refund amounting to Rs.823.89 lacs pertaining to sales tax on purchase of raw materials based on Bihar Industrial Policy, 1995. This claim was up-held during 2002-03 by the erstwhile Ranchi Bench of Patna High Court and was passed on to the Joint Commissioner of Commercial Taxes (JCCT) for implementation. Despite admittance of the refund claim in its entirety by JCCT, the Commissioner of Commercial Taxes (CCT) reduced the claim to Rs 519.26 lacs and refunded the same over 2002-03 and 2003-04. The Company''s Review petition before the Hon''ble High Court of Jharkhand against the order of CCT had been rejected. Later on, the Company had filed a Special Leave Petition (SLP) before Hon''ble Supreme Court. This SLP has been disposed off with the direction to file an application before the High Court and directed the High Court to decide the case on merit. The application has already been filed before High Court Ranchi. The balance claim amount outstanding at the yearend is Rs.304.63 lacs. (31st March, 2016: Rs.304 .63 lacs, 1st April, 2015 :Rs.304.63 lacs).

15. Segment Reporting

The Company''s operations are predominantly manufacture of Electrolytic Tin Mill Product. The Company is managed organizationally as a unified entity and according to the management this is a single segment Company as envisaged in"IndAS 108".

16.. The Company has an on-going conversion arrangement with Tata Steel Limited which includes consignment agency and marketing arrangements, and the Company is responsible for collection of debts on behalf of Tata Steel Limited. Such debts (considered good) outstanding at March 31st 2017 amounts to Rs.8180.48 Lacs (Bills discounted of Rs.2,314.14 lacs) [31.03.2016 : Rs.6,054.27 lacs 01.04.2015 Rs.7,223.57 Lacs (Bills discounted 31.03.16 of Rs.1,494.82 lacs, 01.04.2015 Rs.1,386.99 lacs)], of which Rs.46.06 lacs (31.03.2016- Rs.62.23 lacs, 01.04.2015 Rs.13.80 Lacs) are overdue for more than six months.

17.. Previous year figures have been regrouped where necessary to conform with figures for the current period.

Notes:

18. The Company recognizes costs relating to its post employment defined benefit plan on actuarial basis both under IGAAP and Ind AS. Under IGAAP, the entire cost, including actuarial gains and losses, are recognized to profit and loss. Under Ind AS remeasurement gains and losses are recognized in retained earnings through other comprehensive income.

19. Under IGAAP, insurance spares were recognized as part of Inventory and charged to Profit & loss as and when consumed. Under Ind AS, spares items which meet the definition of Property Plant and Equipments (PPE), are classified under CWIP and capitalized when put to use.

20. Under IGAAP, Long-term investments are usually carried at cost. However, when there is a decline, other than temporary, in the value of a long term investment, the carrying amount is reduced to recognize the decline. Under Ind AS, long term equity investment are remeasured at fair value through Other Comprehensive Income. As on 1st April, 2015 (i,e,on the date of transition to Ind AS),

21. Notes to the Reconciliation

a. Under I GAAP, dividends on equity shares recommended by the Board of Directors after the end of the reporting period but before the financial statements were approved for issue were recognized in the financial statements as a liability. Under Ind AS, such dividends are recognized when declared by the members in a general meeting. The affect of this change is an increase in total equity of Rs.2,519.51 lacs as at March 31,2016. (Rs. 2,015.62 as at April 1,2015), but does not affect profit before tax and total profit for the year ended March 31,2016.

b. Under IGAAP, redeemable preference shares were classified as part of total equity. Dividend paid on these preference shares were adjusted against retained earnings and not recognized as finance costs in profit & loss. However, under Ind AS, financial instruments are classified as a liability or equity according to the substance of the contractual arrangement and not in legal form. These preference shares do not contain any equity component and hence, have been classified in their entirety as a financial liability under Ind AS. The resultant dividends have been recognized as finance cost in profit & loss. The net affect of this change is a decrease in total equity NIL as at March 31,2016 (Rs. 473.72 lacs as at April 1,2015).

c. Under Ind AS, bank overdrafts which are repayable on demand and form an integral part of entity''s cash management system are included in cash &cash equivalent for the purpose of presentation of statement of cash flows. Whereas under I GAAP, there was no similar guidance and hence bank overdrafts were considered similar to other borrowings and the movements therein were reflected in cash flows from financing activities. The affect of this is that bank overdrafts of Rs.NIL as at March 31,2016and Rs. Nil lacs as at April 1,2015 have been considered as part of cash and cash equivalents under Ind AS for the purpose of presentation of cash flows.

d. Under IGAAP, actuarial gains and losses were recognized in profit or loss. Under Ind AS, the actuarial gain and losses form part of remeasurment of the net defined liability/asset which is recognized in other comprehensive income. Consequently, the tax affect of the same has also been recognized in other comprehensive income under Ind AS, instead of profit or loss. The total actuarial losses for the period ended March 31, 2016 amounted to Rs.31.13 lacs and the tax affect thereon Rs.10.77 lacs. The change does not affect total equity, but there is an decrease of Rs.20.36 lacs in profit before tax and Rs.20.36 lacs in total profit for the period ended March 31,2016.

e. Under IGAAP, long term investments were measured at cost less diminution in value which is other than temporary. Under Ind AS, these financial assets have been classified as FVTOCI. On the date of transition to Ind AS, these financial assets have been measured at fair value which is higher than the cost as per IGAAP, resulting in an increase in the carrying amount by Rs.792.88 lacs as at April 1, 2015. The corresponding deferred taxes have also been recognized at April1, 2015 for Rs.162.41 lacs. The net affect of these changes is an increase in total equity of Rs. 630.47 lacs. as at April1, 2015.

f. Under IGAAP, there was no concept of other comprehensive Income. Under Ind AS, specified items of income , expenses, gains or losses are required to be presented in other comprehensive income.

g. Under IGAAP, insurance spares were recognized as part of Inventory and charged to Profit & Loss as and when consumed. Under Ind AS, items of spares which meet the definition of Property, Plant and Equipments (PPE) are classified under CWIP and capitalized as and when put to use. On the date of transition April1, 2015, Insurance spares of Rs. 216.76 lacs have been transferred to CWIP. As on March 31,2016 Insurance Spares of Rs. 222.25 has been transferred to CWIP. These changes do not affect total equity, as on the date of transition.

h. Under previous GAAP, revenue from sale of products was presented net of excise duty under revenue from operations. Whereas, under Ind AS, revenue from sale of products includes excise duty. The corresponding excise duty expenses is presented separately on the face of statement of profit and loss. The change does not affect total equity as at April 1,2015 and March 31,2016, profit before tax or total profit for the year ended March 31,2016.

Approval of financial statement

The financial statement were approve for issue by the Board of Directors on April 21st, 2017.


Mar 31, 2016

1. The Company had claimed a refund amounting to Rs 823.89 lacs pertaining to sales tax on purchase of raw materials based on Bihar Industrial Policy, 1995. This claim was up-held during 2002-03 by the erstwhile Ranchi Bench of Patna High Court and was passed on to the Joint Commissioner of Commercial Taxes (JCCT) for implementation. Despite admittance of the refund claim in its entirety by JCCT, the Commissioner of Commercial Taxes (CCT) reduced the claim to Rs 519.26 lacs and refunded the same over 2002-03 and 2003-04. The Company''s Review petition before the Hon''ble High Court of Jharkhand against the order of CCT had been rejected. Later on, the Company had filed a Special Leave Petition (SLP) before Hon''ble Supreme Court. This SLP has been disposed off with the direction to file an application before the High Court and directed the High Court to decide the case on merit. The application has already been filed before High Court Ranchi. The balance claim amount outstanding at the year end isRs.304.63 lacs. (31st March, 2015: Rs. 304 .63 lacs) 7 in I arc

2. The Company has an on-going conversion arrangement with Tata Steel Limited which includes consignment agency and marketing arrangements, and the Company is responsible for collection of debts on behalf of Tata Steel Limited. Such debts (considered good) outstanding at 31.03.2016 amounts to Rs. 6,054.27 Lacs (Bills discounted of Rs. 1,494.82 lacs) [ 31.03.2015 : Rs. 7,223.57 lacs (Bills discounted of Rs. 1,386.99 lacs)], of which Rs. 62.23 lacs (31.03.2015-^13.80 lacs) are overdue for more than six months.

3. Previous year figures have been regrouped where necessary to conform with figures for the current period.


Mar 31, 2015

1. General Corporate Information

The Tinplate Company of India Ltd.(TCIL) is the largest producer of tin coated and tin free steel sheets in India. Having its headquarter in Kolkata, the company's works is located at Jamshedpur, Jharkhand. The strategic goal of the company is to create and enhance value for the stakeholders through growth and competitiveness and also to reach status of supplier of choice for tin mill products in Asia.

2 Rights, preferences and restrictions attached to shares Equity shares

The company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend,if any, proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

3 Preference shares

8.5% Non Cumulative Optionally Convertible Preference Shares (OCPS): The OCPS holder whose shares have been redeemed on 31.03.2015, as per the terms of the subscription agreement, is entitled to dividend @ Rs. 8.50 per OCPS.

4. Contingent Liabilities and commitments

(a) Contingent Liabilities Rs.in lacs

As at As at 31.03.2015 31.03.2014

A. Claims not acknowledged by the Company

Excise $ 338.21 341.64

Customs 265.92 265.92

Sales Tax/CST*$ 1,321.67 2,104.64

Service Tax 3,830.55 2,805.49

Income Tax 317.14 2,045.36

ESI(Labourrelated)# 8.78 8.78

Others 149.00 149.00

B. Bills Discounted 9,413.08 8,410.18

*Other than demands amounting to Rs. 9.75 Lacs (31st March 2014: Rs. 9.75 Lacs)

* Other than items remanded back for fresh assessment.

* Company has been getting exemption till 31.12.2004. Our application for exemption was pending for the period 01.01.2005 to 31.12.2010 before the ESI authorities, which was denied on alleged technical ground. Company has filed an appeal before The Hon'ble Jharkhand High Court, on which a stay has been granted. In the mean time company received recovery notice for Rs. 8.78 lakhs for the period 01.01.2005 to 31.07.2005. No other demand has been raised by The ESI Corporation in absence of which contingent liability for the period in which exemption was denied is not ascertainable.

(b) Capital Commitments

Estimated value of contracts in capital account remaining to be executed [net of advances Rs. 518.90 lacs (31.03.2014: Rs. 116.47lacs)refernoteno.13] 3,197.00 1,868.44

5. The Company had claimed a refund amounting to Rs 823.89 lacs pertaining to sales tax on purchase of raw materials based on Bihar Industrial Policy, 1995. This claim was up-held during 2002-03 by the erstwhile Ranchi Bench of Patna High Court and was passsed on to the Joint Commissioner of Commercial Taxes (JCCT) for implementation. Despite admittance of the refund claim in its entirety by JCCT, the Commissioner of Commercial Taxes (CCT) reduced the claim to Rs. 519.26 lacs and refunded the same over 2002-03 and 2003-04. The Company's Review petition before the Hon'ble High Court of Jharkhand against the order of CCT had been rejected. Later on,the Company had filed a Special Leave Petition (SLP) before Hon'ble Supreme Court. This SLP has been disposed off with the direction to file an application before the High Court and directed the High Court to decide the case on merit. The application has already been filed before High Court Ranchi. The balance claim amount outstanding at the year end is Rs. 304.63 lacs (31st March, 2014:

6. Segment Reporting

The Company's operations are predominantly manufacture of Electrolytic Tin Mill Product. The Company is managed organisationally as a unified entity and according to the management this is a single segment Company as envisaged in "Accounting Standard (AS 17)".

7. Related Party Transactions Related party relationship:

Name of the related party Nature of Relationship

Tata Steel Limited : PromoterCompany/Parent

Tayo Rolls Limited

The Tata Pigments Limited

The Indian Steel and Wire Products Limited

TKM Global Logistics Limited

Tata Steel Processing and Distribution Limited : Fellow Subsidiary

Kalimati Investment Company Limited Tata Steel UK Limited

Tata Steel International (Singapore) Pte. Limited Jamshedpur Utility and Services Company Limited Tata Sponge Iron Limited

Key Management Personnel

Mr. Tarun Kumar Daga Managing Director

Mr Chacko Joseph Chief Financial Officer

Mr Suddhabrata Kar Company Secretary

Mrs. Anita Kar Relative of Company Secretary

8. The Company has an on-going conversion arrangement with Tata Steel Limited which includes consignment agency and marketing arrangements, and the Company is responsible for collection of debts on behalf of Tata Steel Limited. Such debts (considered good) outstanding at 31.03.2015 amounts to Rs. 7,223.57 Lacs (net of bills discounted of Rs. 1,386.99 lacs) [31.03.2014: Rs. 8,265.87 lacs (net of bills discounted of Rs. 2,602.48 lacs)], of which Rs. 13.80 lacs (31.03.2014: Rs. 9.57 lacs) are overdue for more than six months.

9. Previous year's figures have been regrouped where necessary to confirm with figures for the current year.


Mar 31, 2014

1. General Corporate Information

The Tinplate Company of India Ltd. (TCIL) is the largest producer of tin coated and tin free steel sheets in India. Having its headquarter in Kolkata, the company''s works is located at Jamshedpur, Jharkhand. The strategic goal of the company is to create and enhance value for the stakeholders through growth and competitiveness and also to reach status of supplier of choice for tin mill products in Asia.

2. Share Capital

Notes :

As per the terms of the Subscription Agreement 13,10,000 8.5% Non Cumulative Optionally Convertible Preference Shares (OCPS) and 6,62,000 OCPS were partly redeemed on 1st April, 2013 and 31st March, 2014 respectively. With the said part redemptions made on 1st April, 2013 and 31st March, 2014 13,10,000 OCPS and 6,62,000 OCPS aggregating to 19,72,000 OCPS stands fully redeemed. In adherence to the Subscription Agreement the balance 92,61,000 were also partly redeemed on 31st March, 2014.

Rights, preferences and restrictions attached to shares Equity shares

The company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Preference shares

8.5% Non Cumulative Optionally Convertible Preference Shares (OCPS) :The holder of OCPS is entitled to dividend @ Rs.8.50 per OCPS and entitled to vote on issues relating to OCPS. Based upon a legal opinion obtained by the Company, the option to convert the OCPS into Equity Shares of the Company is not available as per the existing SEBI guidelines.

Preference Shares amounting to Rs. 4,630.50 lacs are due for redemption on 31.03.2015.

Surplus in Statement of Profit and Loss

(a) Out of the outstanding 8.5% Non Cumulative Optionally Convertible Preference Shares (OCPS) of Rs. 100/- each, 13,10,000 OCPS were redeemed in two equal installments of Rs. 6,55,00,000/- each on 1st April 2012 and 1st April 2013, and 6,62,000 OCPS were partly redeemed on 1st April 2013 and 31st March 2014. In order to comply with the requirement of the Companies Act 1956, a total amount ofRs. 6,602.50 lakhs has been transferred to Capital Redemption Reserve Account up to 31 March 2014.

(b) General Reserve is a free reserve and is not meant for meeting any specific liability, contingency or commitment.

Tangible assets

Note:

(a) Site, Water and Drainage System and Building (except at Kolkata) are on leasehold land.

(b) Land includes free hold land Rs. 3.86 lacs( 31.03.2013 Rs.3.86 lacs)

(c) Plant and Machinery having a carrying value of Rs. 137.97 lacs as on 31 March 2013 has been retired from active use during the year. Consequently depreciation for the year includes the additional depreciation of Rs. 137.97 lacs provided on these assets.

(d) Company has discharged the lease liability for one of its lease hold plant & machinery consequent to that ownership has been transferred in the name of the Company.

(e) Obligations under Finance Lease:

The Company has acquired Plant and Machinery under financial lease arrangements. Minimum Lease Payments outstanding as at 31st March 2014and other particulars in respect of leased assets are as under:

The Company operates following post employment / other long term defined benefits plans:

a. Funded

i. Gratuity

b. Nonfunded

i. Post Retirement Medical Benefit (PRMB)

ii. Compensated absence

iii. Long Service Award (LSA)

iv. OtherRetirementBenefit(ORB)

* Best estimate of Contribution expected to be paid in 2014-15 Rs. 400 Lacs (2013-14 : Rs. 350 Lacs) in respect of gratuity.

* The basis used to determine overall expected rate of return on assets and the effect on major categories of plan assets is as follows:

The major portions of the assets are invested in PSU bonds and Government Securities. Based on the asset allocation and prevailing yield rates on these asset classes, the long term estimate of the expected rate of return on the fund assets have been arrived at. Assumed rate of return on assets is expected to vary from year to year reflecting the returns on matching government bonds.

3. Contingent Liabilities and commitments

Rs.in Lacs As at 31.03.2014 As at 31.03.2013

Contingent Liabilities

A. Claims not acknowledged by the Company

Excise $ 341.64 341.64 Customs 265.92 265.92 Sales Tax/CST*$ 2,104.64 2,605.05 Service Tax 2,805.49 2,799.47 Income Tax 2,045.36 310.56 ESI (Labour related) # 8.78 - Others 149.00 149.00

B. Bills Discounted 8,410.18 7,134.52

*Other than demands amounting to Rs. 9.75 Lacs (31st March 2013: Rs. 9.75 Lacs)

$ Other than items remanded back for fresh assessment.

# Company has been getting exemption till 31.12.2004. The Companies application for exemption was pending for the period 01.01.2005 to 31.12.2010 before the ESI authorities, which was denied on alleged technical ground. Company has filed an appeal before The Hon''ble Jharkhand High Court, on which a stay has been granted. In the mean time company received recovery notice for Rs. 8.78 lakhs for the period 01.01.2005 to 31.07.2005. No other demand has been raised by The ESI Corporation in absence of which contingent liability for the period in which exemption was denied is not ascertainable.

(b) Capital Commitments

Estimated value of contracts in capital account remaining to be executed

[net of advances Rs. 116.47 lacs (31.03.2013 :Rs.139.85lacs) refernoteno.13] 1,868.44 2,387.63

* The Company had claimed a refund amounting to Rs 823.89 lacs pertaining to sales tax on purchase of raw materials based on Bihar Industrial Policy, 1995. This claim was up-held during 2002-03 by the erstwhile Ranchi Bench of Patna High Court and was passed on to the Joint Commissioner of Commercial Taxes (JCCT) for implementation. Despite admittance of the refund claim in its entirety by JCCT, the Commissioner of Commercial Taxes (CCT) reduced the claim to Rs.519.26 lacs and refunded the same over 2002-03 and 2003-04. The Company''s Review petition before the Hon''ble High Court of Jharkhand against the order of CCT had been rejected. Later on, the Company had filed a Special Leav Petition (SLP) before Hon''ble Supreme Court. This SLP has been disposed off with the direction to file an application before the High Court and directed the High Court to decide the case on merit. The application has already been filed before High Court Ranchi. The balance claim amount outstanding at the year end is Rs. 304.63 lacs. (31st March, 2013:Rs. 304 .63 lacs).

Segment Reporting

The Company''s operations are predominantly manufacture of Electrolytic Tin Mill Product. The Company is managed organisationally as a unified entity and according to the management this is a single segment Company as envisaged in "Accounting Standard (AS 17) - Segment Reporting" issued pursuant to Companies (Accounting Standards) Rules 2006.

The Company has an on-going conversion arrangement with Tata Steel Limited which includes consignment agency and marketing arrangements, and the Company is responsible for collection of debts on behalf of Tata Steel Limited. Such debts (considered good) outstanding at 31.03.2014 amounts to ? 8,265.87 lacs (net of bills discounted of Rs. 2,602.48 lacs) [31.03.2013 : Rs. 11,915.96 lacs (net of bills discounted of ?2,309.09 lacs)], of which Rs. 9.57 lacs (31.03.2013- Rs. 5.22 lacs) are overdue for more than six months.

Previous year''s figures have been regrouped where necessary to confirm with figures for the current year.


Mar 31, 2013

1. General Corporate Information

The Tinplate Company of India Ltd.(TCIL) is the largest producer of tin coated and tin free steel sheets in India. Having its headquarter in Kolkata, the company''s works is located at Jamshedpur, Jharkhand. The strategic goal of the company is to create and enhance value for the stakeholders through growth and competitiveness and also to reach status of supplier of choice for tin mill products in Asia.

2.01 The Company operates following post employment / other long term defined benefits plans:

a. Funded

i. Gratuity

b. Nonfunded

i. Post Retirement Medical Benefit (PRMB)

ii. Compensatedabsence

iii. Long Service Award (LSA)

iv. Other Retirement Benefit (ORB)

2.02 Best estimate ofContribution expected to be paid in 2013-14 Rs. 350 lacs (2012-13:Rs. 395 Lacs) in respect ofgratuity.

2.03 The basis used to determine overall expected rate of return on assets and the effect on major categories of plan assets is as follows:

The major portions ofthe assets are invested in PSU bonds and Government Securities. Based on the asset allocation and prevailing yield rates on these asset classes,thelongterm estimate oftheexpected rateofreturnonthefund assets have been arrived at. Assumed rate of return on assets is expected to vary from year to year reflecting the returns on matching government bonds.

2.04 The estimate offuture salary increases take into account inflation, seniority, promotion and other relevant factors.

Rs. in Lacs As at 31.03.2013 As at 31.03.2012

3. Contingent Liabilities and commitments

(a) Contingent Liabilities

A. Guarantees to Banks on behalf of others - 469.81

B. Claims not acknowledged by the Company Excise $ 341.64 451.43

Customs 265.92 265.92

Sales Tax/CST*$ 2,605.05 2,527.28

Service Tax 2,799.47 2,215.36

Income Tax 310.56 121.69

Others 149.00 149.00

C. Bills Discounted 7,134.52 2,799.28

*Other than demands amounting to Rs. 9.75 lacs (31st March 2012 : Rs. 9.75Lacs)

$ Other than items remanded back for fresh assessment.

4 The Company had claimed a refund amounting to Rs. 823.89 lacs pertaining to sales tax on purchase of raw materials based on Bihar Industrial Policy, 1995. This claim was up-held during 2002-03 bythe erstwhile Ranchi Bench of Patna High Court and was passsed on to theJoint CommissionerofCommercial Taxes (JCCT) for implementation. Despite admittance ofthe refund claim in its entirety by JCCT, the Commissioner of Commercial Taxes (CCT) reduced the claim toRs. 519.26 lacs and refunded the same over 2002-03 and 2003-04. The Company''s Review petition before the Hon''ble High Court ofJharkhand against the order ofCCT had been rejected. Later on,the Company had filed a Special Leave Petition before Hon''ble Supreme Court for final disposal, which is pending. The balance claim amount outstanding at the yearend is Rs. 304.63 lacs. (31st March, 2012 : Rs. 304.63 Lacs).

(a) As per the legal opinion obtained by the Company, the option to convert the Optionally Convertible Preference Shares (OCPS) into Equity Shares ofthe Company is not available as perthe existing SEBI guidelines. Accordingly such shares have not been considered as potential equity shares for the purpose of computation of Diluted Earnings pershare.

5. Segment Reporting

The Company''s operations are predominantly manufacture of Electrolytic Tin Mill Product. The Company is managed organisationally as a unified entity and according to the management this is a single segment Company as envisaged inAS17 issued pursuant to Companies (Accounting Standards) Rules 2006.

6. The Company has an on-going conversion arrangement with Tata Steel Limited which includes consignment agency and marketing arrangements, and the Company is responsible for collection of debts on behalf of Tata Steel Limited. Such debts (considered good) outstanding at 31.03.2013 amounts to Rs. 11,915.96 lacs ( net of bills discounted of Rs. 2,309.09 lacs) [ 31.03.2012 : Rs. 8,688.13 lacs (net of bills discounted of Rs. 6,262.08 lacs)], of which Rs. 5.22 lacs (31.03.2012- Rs. 6.84 lacs) are overdue for more than six months.

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


Mar 31, 2012

1. CONTINGENT LIABILITIES Rs. in Lakhs

As at As at 31st March 2012 31st March 2011

A. Guarantees to Banks and Financial Institutions on behalf of others 469.81 875.34

B. Claims not acknowledged by the Company

Excise $ 451.43 308.36

Customs 265.92 265.92

Sales Tax/ GST*$ 2,527.28 2,811.26

Service Tax 2,215.36 -

IncomeTax 121.69 32.14

Others 149.00 68.00

C. Bills Discounted 2,799.28 2,592.03

* Other than demands amounting to Rs. 9.75 Lakhs (31st March 2011:Rs. 536.20 Lakhs) pertaining to issues settled in Company's favour in earlier years.

$ Other than items remanded back for fresh assessment.

2. The Company operates following post employment / other long term defined benefits plans:

a. Funded

i. Gratuity

b. Unfunded

i. Post Retirement Medical Benefit (PRMB)

ii. Leave

iii. Long Service Award (LSA)

iv. Other Retirement Benefit (ORB)

3. Best estimate of Contribution expected to be paid in 2012-2013 Rs. 395 Lakhs (2010-2011: Rs. 350 Lakhs) in respect of gratuity.

4. The basis used to determine overall expected rate of return on assets and the effect on major categories of plan assets is as follows:

The major portions of the assets are invested in PSU bonds and Government Securities. Based on the asset allocation and prevailing yield rates on these asset classes, the long term estimate of the expected rate of return on the fund assets have been arrived at. Assumed rate of return on assets is expected to vary from year to year reflecting the returns on matching government bonds.

5. The estimate of future salary increases take into account inflation, seniority, promotion and other relevant factors.

6. In addition to post employment/other long term defined benefit plans as set out in Note 27.1 above, the Company also provides Provident Fund benefit to its employees through a Trust, managed by the Company in line with the Provident Fund and Miscellaneous Provisions Act, 1952. Provident Fund contributions (both employer's and employees') are made to the Trust. The Plan guarantees interest at the rate notified annually by the Provident Fund Authorities irrespective of the interest earnings of the Fund for distribution to the Provident Fund Members. Shortfall in the interest rate, if any, is required to be made good by the Company. The actuary of the Company has determined the related liability of the Company using Projected Unit Credit Method and based thereon there is no shortfall in the interest rate guarantee obligation of the Company at the year end. Further, during the year, the Company's contribution of Rs. 314.25 Lakhs (2010-11 : Rs. 277.89 Lakhs) to the Provident Fund Trust has been expensed under' Contribution to provident and other funds'. Disclosures given here under are restricted to the Information available as per the Actuary's report.

7. The Company had claimed a refund amounting to Rs. 823.89 Lakhs pertaining to sales tax on purchase of raw materials based on Bihar Industrial Policy, 1995. This claim was up-held during 2002-03 by the erstwhile Ranchi Bench of Patna High Court and was passed on to the Joint Commissioner of Commercial Taxes (JCCT) for implementation.

Despite admittance of the refund claim in its entirety by JCCT, the Commissioner of Commercial Taxes (CCT) reduced the claim to Rs. 519.26 Lakhs and refunded the same over 2002-03 and 2003-04. The Company's Review petition before the Hon'ble High Court of Jharkhand against the order of CCT had been rejected. Later on, the Company had filed a Special Leave Petition before Hon'ble Supreme Court for final disposal, which is pending. The balance claim amount outstanding at the year end is Rs. 304.63 Lakhs. (31 st March 2011 - Rs. 304.63 Lakhs).

8. SEGMENT REPORTING

The Company's operations are predominantly manufacture of Electrolytic in Mill Product. The Company is managed organizationally as a unified entity and according to the management this is a single segment Company as envisaged in AS 17 issued pursuant to Companies (Accounting Standards) Rules 2006.

Sales (gross) for the year ended 31st March 2012 of Rs. 23111.98 Lakhs (2010-2011 :Rs. 47566.09 Lakhs) includes domestic sales of Rs. 2119.27 Lakhs (2010-2011 : Rs. 18287.14 Lakhs). Details of export sales and year end debtors (being related capital employed overseas), are as follows :

9. The Company has an ongoing conversion arrangement with Tata Steel which includes consignment agency and marketing arrangements, and the Company is responsible for collection of debts on behalf of Tata Steel. Such debts (considered good) outstanding at the year-end amount to Rs. 8688.13 Lakhs (net of discounted bills ofRs. 6262.08 Lakhs) [ 31st March 2011 Rs. 1737.57 Lakhs (net of discounted bills of Rs. 3209.11 Lakhs)], of which Rs. 6.84 Lakhs [(31st March 2011 Rs. 37.61 Lakhs) are overdue for more than six months].

10. PREVIOUS YEAR FIGURES

The financial statements for the year ended 31 March 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956.Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended 31 March 2012 are prepared as per Revised Schedule VI. Accordingly, the previous year's figures have been reclassified to conform to this year's classification.


Mar 31, 2011

1. Directors' Remuneration:

(d) Directors' remuneration does not include retirement benefit of Rs. 19.98 Lakhs (2009-10 Rs. 31.65 Lakhs) paid to the former Managing Director.

2. The Company had claimed a refund amounting to Rs. 823.89 Lakhs pertaining to sales tax on purchase of raw materials based on Bihar Industrial Policy, 1995. This claim was up-held during 2002-03 by the erstwhile Ranchi Bench of Patna High Court and was passed on to the Joint Commissioner of Commercial Taxes (JCCT) for implementation.

Despite admittance of the refund claim in its entirety by JCCT, the Commissioner of Commercial Taxes (CCT) reduced the claim to Rs. 519.26 Lakhs and refunded the same over 2002-03 and 2003-04. The Company's Review petition before the Hon'ble High Court of Jharkhand against the order of CCT had been rejected. Later on, the Company had filed a Special Leave Petition before Hon'ble Supreme Court for final disposal, which is pending. The balance claim amount outstanding at the year end is Rs. 304.63 Lakhs (31st March 2010 - Rs. 304.63 Lakhs).

3. There are Contingent Liabilities in respect of:

3.1 Bank Guarantee given by the Company in connection with various matters amounting to Rs. 875.34 Lakhs (31st March 2010 : Rs. 726.03 Lakhs).

3.2 Bills discounted Rs. 2592.03 Lakhs (31st March 2010 : Rs. 7929.13 Lakhs)

3.3 Claims not acknowledged as debts by the Company : 31st March, 31st March, 2011 Rupees 2010 Rupees Lakhs Lakhs

i) Customs Duty 265.92 265.92

ii) Sales Tax (estimated by management)* $ 2811.26 2855.62

iii) Excise Duty $ 308.36 343.19

iv) Provident Fund - 19.12

v) Others 100.14 113.71

* Other than demands amounting to Rs. 536.20 Lakhs (3lst March 2010 : Rs. 536.20 Lakhs) pertaining to issues settled in Company's favour in earlier years.

$ Other than items remanded back for fresh assessment

4. Disclosure in respect of Employee Benefits in keeping with Accounting Standard 15

4.1 The Company's Provident Fund is exempted under Section 17 of Employees' Provident Fund Act, 1952. Conditions for grant of exemption stipulate that the employer shall make good deficiency, if any, in the interest rate declared by Trust over statutory limit. Having regard to the assets of the Fund and the return on the investments, the Company does not expect any deficiency in the foreseeable future.

4.2 The Company operates following post employment/other long term defined benefits :

a. Funded

i. Gratuity

b. Unfunded

i. Post Retirement Medical Benefit (PRMB)

ii. Leave

iii. Long Service Award (LSA)

iv. Other Retirement Benefits (ORB)

5.1. Actual return on Plan assests - 8.26% (2009-10 : 8.00%)

5.2. Best estimate of Contribution expected to be paid in 2011-2012 Rs. 350 Lakhs (2010-2011 : Rs. 165 Lakhs) in respect of gratuity.

5.3. The basis used to determine overall expected rate of return on assets and the effect on major categories of plan assets is as follows:

The major portions of the assets are invested in PSU bonds and Government Securities. Based on the asset allocation and prevailing yield rates on these asset classes, the long term estimate of the expected rate of return on the fund assets have been arrived at. Assumed rate of return on assets is expected to vary from year to year reflecting the returns on matching government bonds.

5.4. The estimate of future salary increases take into account inflation, seniority, promotion and other relevant factors.

6. The Company's operations predominantly is manufacture of Electrolytic Tinplate in course of which certain intermediate product namely Full hard cold rolled coils in small quantity are also produced and marketed. The Company is managed organizationally as a unified entity and all its assets other than export debtors are located in India.

Sales (gross) for the year ended 31st March, 2011 of Rs 47753.01 Lakhs ( 2009-2010 : Rs. 42861.33 Lakhs) includes domestic sales of Rs. 18474.05 Lakhs (2009-2010 : Rs. 12414.33 Lakhs). Details of export sales and year end debtors (being related capital employed overseas), are as follows:

(iii) For fixed assets (tangibles and intangibles) additions, refer column 2 of Fixed Assets Schedule (Schedule D)

7. The Company has an ongoing conversion arrangement with Tata Steel which includes consignment agency and marketing arrangements, and the Company is responsible for collection of debts on behalf of Tata Steel. Such debts (considered good) outstanding at the year-end amount to Rs. 1737.57 Lakhs (net of discounted bills of Rs. 3209.11Lakhs) [31 st March 2010 Rs 1395.30 Lakhs (net of discounted bills of Rs. 3641.56 Lakhs)], of which Rs. 44.39 Lakhs (31st March 2010 Rs. 36.60 Lakhs) are outstanding for more than six months.

8. Related Party Disclosures in keeping with Accounting Standard 18 : a) Related Parties

Name Relationship

Tata Steel Limited (TSL) The Company is an Associate Company of Tata Steel

Mr. B.L. Raina (BLR), Managing Director (MD - up to 16.06.2009) Key Management Personnel

Mr. Tarun Kumar Daga (TKD), [Executive Director(ED) up to 16.06.2009] Key Management Personnel (MD-from 17.06.2009)

9. (a) The Company has since issued and allotted on 1st April, 2011, 32704209 Equity Shares of Rs. 10/- each at premium of Rs. 45/- per Equity Shares against conversion of 17987315 3% Fully Convertible Debentures of Rs. 100/- each outstanding at the year end. Such Equity Shares are entitled to dividend for the year in keeping with the terms of the issue and related SEBI Guidelines.

10. basic and Diluted Earnings per share :

(B) Diluted

a) Adjusted after taking into consideration fair value per share prior to Rights Issue and theoretical ex- right fair value per share.

b) Based upon a legal opinion obtained by the Company, the option to convert the Optionally Convertible Preference Shares (OCPS) into Equity Shares of the Company is not available as per the existing SEBI guidelines. Accordingly such shares have not been considered as potential equity shares for the purpose of computation of Diluted Earning per share.

11. Figures of the previous year have been rearranged and regrouped wherever necessary.


Mar 31, 2010

1. The Company had claimed a refund amounting to Rs. 823.89 Lakhs pertaining to sales tax on purchase of raw materials based on Bihar Industrial Policy, 1995. This claim was up-held during 2002-03 by the erstwhile Ranchi Bench of Patna High Court and was passed on to the Joint Commissioner of Commercial Taxes (JCCT) for implementation.

Despite admittance of the refund claim in its entirety by JCCT, the Commissioner of Commercial Taxes (CCT) reduced the claim to Rs. 519.26 Lakhs and refunded the same over 2002-03 and 2003-04. The Companys Review petition before the Honble High Court of Jharkhand against the order of CCT had been rejected. Later on, the Company had filed a Special Leave Petition before Honble Supreme Court for final disposal, which is pending. The balance claim amount outstanding at the year end is Rs. 304.63 Lakhs.

2. There are Contingent Liabilities in respect of:

2.1 Bank Guarantee given by the Company in connection with various matter amounts to Rs. 726.03 Lakhs (31st March 2009 - Rs. Nil).

2.2 Bills discounted Rs. 7929.13 Lakhs (31st March 2009: Rs. 1486.51 Lakhs)

2.3 Claims not acknowledged as debts by the Company :

31st March, 2010 31st March, 2009 Rupees Lakhs Rupees Lakhs

i) Customs Duty 265.92 265.92

ii) Sales Tax (estimated by management)* $ 2855.62 2475.85

iii) Excise Duty $ 343.19 456.39

iv) Provident Fund 19.12 19.12

v) Others 113.71 83.00



* Other than demands amounting to Rs. 536.20 Lakhs (31st March 2009 : Rs. 536.20 Lakhs)

pertaining to issues settled in Companys favour in earlier years. $ Other than items remanded back for fresh assessment.

3. Disclosure in respect of Employee Benefits in keeping with Accounting Standard 15.

3.1 The Companys Provident Fund is exempted under Sectionl 7 of Employees Provident Fund Act, 1952. Conditions for grant of exemption stipulate that the employer shall make good deficiency, if any, in the interest rate declared by Trust over statutory limit. Having regard to the assets of the Fund and the return on the investments, the Company does not expect any deficiency in the foreseeable future.

3.2 The Company operates following post employment/other long term defined benefits :

a. Funded

i. Gratuity

b. Unfunded

i. Post Retirement Medical Benefit (PRMB)

ii. Leave

iii. Long Service Award

iv. Other Retirement Benefits

3.3. Best estimate of Contribution expected to be paid in 2010-2011 Rs.165 Lakhs (2009-2010: Rs. 150 Lakhs) in respect of gratuity.

3.4. The basis used to determine overall expected rate of return on assets and the effect on major categories of plan assets is as follows:

The major portions of the assets are invested in PSU bonds and Government Securities. Based on the asset allocation and prevailing yield rates on these asset classes, the long term estimate of the expected rate of return on the fund assets have been arrived at. Assumed rate of return on assets is expected to vary from year to year reflecting the returns on matching govt, bonds.

3.5. The estimate of future salary increases take into account inflation, seniority, promotion and other relevant factors.

4. The Company has an ongoing conversion arrangement with Tata Steel which includes consignment agency and marketing arrangements, and the Company is responsible for collection of debts on behalf of Tata Steel. Such debts (considered good) outstanding at the year-end amount to Rs. 1395.30 Lakhs (net of discounted bills of Rs 3641.56 Lakhs) [31st March 2009 Rs. 1932.30 Lakhs (net of discounted bills of Rs. 1997.13 Lakhs)], of which Rs. 36.60 Lakhs (31st March 2009 Rs. 79.10 Lakhs) are outstanding for more than six months.

5. In respect of the Companys simultaneous but unlinked Rights Issue of 4,31,90,851 Equity Shares of Rs. 10 each at a premium of Rs. 35 per share and 1,79,96,188, 3% Fully Convertible Debentures of Rs. 100 each (FCDs) which opened on 17th September, 2009 and closed on 1st October, 2009, 4,31,69,528 Equity Shares and 1,79,87,315 FCDs aggregating Rs.37,413.60 lakhs were allotted on 12th October, 2009.

6. Figures of the previous year have been rearranged and regrouped wherever necessary.

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