Mar 31, 2018
1. CORPORATE INFORMATION
The company is promoted by Miglani Family since the year 1985, and ArcelorMittal has joined as Co-Promoter in the year 2009-10. They have sold their entire shareholding (inter-se transfer between the Promoters) to other Promoter Group Company w.e.f. 7th February, 2018. This has resulted in termination of Co-Promotion Agreement. In respect of the same, the Company has received requisite approvals from NSE and BSE on 21.03.2018 and 23.03.2018 respectively.
The Company is in the business of manufacturing of intermediate steel products i.e Cold Rolled Steel (CR) and Galvanised Products comprising of Galvanised Plain (GP), Galvanised Corrugated (GC) and Colour Coated Products (CCP) Coils and Sheets; situated at Khopoli, Mumbai, Western part of India. The Company is in the business of procuring Hot Rolled Steel (HR) and processing it in to CR and further in to GP and PPGI. Its current facilities are mainly in thicker and thinner guage material. The CR not used for galvanizing is converted to value added grades in Cold Rolled Closed Annealed (CRCA) coils, Cut to Length (CTL) Sheets and also sold as Full Hard CR in Domestic and Overseas markets. The market segments for value added grades include Appliance, General Engineering, Automotive, Construction, Packaging, Sandwich Panels and Others.
The Registered office of the company is situated at Uttam House, 69 P D''Mello Road, Carnac Bunder, Mumbai.
* Does not include Rs. 3.25 Crores (Previous Year 50.24), Excise Duty paid against Job work despatches under Rule 10A..
** Manufactured Sales includes Export Sales worth Rs.187.30 Crores ( Previous Year Rs.1310.92 Crores)
*** Includes Hot Rolled Picked & Oiled Products (HRPO), Tube Products and Re-Processed Arisings.
The Company had given a corporate guarantee of Rs.87.54 Crores (Previous Year Rs.87.54 Crores) to Commissioner of Customs against export obligation of Uttam Galva Metallics Limited.
The Company had given a corporate guarantee of US$ 22 Million (US$ 22 Million) to Macquarie Bank Limited, against Working Capital Facility availed by Uttam Galva North America Inc, a wholly owned subsidiary.
The Company had given a corporate guarantee of US$ 12.50 Million (US$ 12.50 Million) to Brown Brothers Harriman & Co. (BBH) against Working Capital Facility availed by Uttam Galva North America Inc, a wholly owned subsidiary.
2. (a) The Income Tax Assessments are completed up to AY 2014-15.
(b) The Sales Tax Assessments are completed up to 31st March, 2014.
(c) The Company does not expect any liability on remaining assessments / appeals.
3. The company has recognised Industrial Promotion Subsidy (IPS) receivable from Government of Maharashtra in respect of Mega Project under Package Scheme of Incentive (PSI) 2007.
During the Financial Year, the Company has treated incentive receivable under the said scheme to the tune of Rs.63.30 Crores (Previous Year Rs.51.29 Crores) as Other Income.
4. As per circular dated 13.06.2017 issued by RBI, our Company has been placed under the second list of defaulting Company as identified by RBI for reference to National Company Law Tribunal (NCLT) for working out the resolutions plan. The Company is operational, utilizing its Plant capacity to the optimum, and has been regular in payment of statutory dues and payments to employees. A long term resolution plan is already in process and the management is quite confident to reach at some workable resolution plan to resolve financial indebtedness with the lenders within the stipulated time limit and to continue its business as a going concern. Accordingly, these financial statements have been prepared on going concern basis.
5. Taxation.
(a) The Company does not have any taxable income as per the provisions of the Income Tax Act, 1961, nor liable to MAT (Minimum Alternate Tax), hence no provision has been made.
6. Segment Reporting
The Company is Manufacturing of Steel Products and also has a Captive Power Plant, hence it is reporting its results in single segment as required by Ind-AS 108.
7. Sundry Debit Balances and Credit balances are subject to confirmations.
8. Previous Year''s figures are regrouped and rearranged wherever necessary.
Mar 31, 2017
1. (a) The Income Tax Assessments are completed up to AY 2014-15.
b) The Sales Tax Assessments are completed up to 31st March, 2014.
(c) The Company does not expect any liability on remaining assessments / appeals.
2. The Company has recognized Industrial Promotion Subsidy (IPS) receivable from Government of Maharashtra in respect of Mega Project under Package Scheme of Incentive (PSI) 2007.
During the Financial Year, the company has treated incentive receivable under the said scheme to the tune of Rs, 51.29 Crore (Previous Year Rs,58.61 Crore) as Other Income.
3. Taxation.
(a) The Company does not have any taxable income as per the provisions of the Income Tax Act, 1961, nor liable to MAT (Minimum Alternate Tax), hence no provision has been made.
(b) During the year the Company has collected VAT and CST amounting to Rs, Nil (Previous Year Rs,63.33 Crore) under Deferred Sales Tax Scheme, which is repayable in 5 equated annual installments after 11 years.
(c) VAT and CST collected under Deferred Sales Tax Scheme up to 31st March 2015, has already been paid at Net Present Value.
4. Diminution in value of Long Term Investments, Advances, and Claims
The Company has made a provision of Nil (Previous Year Rs, 34.38 Crore) towards the diminution in value of long term investments in overseas subsidiaries, and Nil (Previous Year Rs, 61.98 Crore) towards diminution in value of loans and advances. Non-realizable claims on vendors / advances to vendors, amounting to Nil (Previous Year Rs, 621.45 Crore) has been written off.
(ii) Other Related Parties
(Associates of the Company/Enterprises over which key management personnel and/or their relatives exercise significant influence)
Wholly Owned Subsidiary:
Uttam Galva Holding Limited Atlantis International Service Company Limite
Uttam Galva Steels , Netherland BV NeelRaj International Trade Limited
Uttam Galva Steels ( BVI) Limited Uttam Galva North America,IN
Uttam Export BVI Uttam Galva International FZE (Step down Subsidiary)
Co-Promoter
ArcelorMittal Netherland, B.V.
Ability to Control/Exercise Signifcant Influnence
ArcelorMittal International FZE ArcelorMittal International Luxembourg Associates / Joint Ventures :
Growell Mercantile Private Limited Evergreen Tradeplace Private Limited
Shree Uttam Steel and Power Limited Uttam Galva Metallics Limited
Uttam Utkal Steels Limited Sainath Trading Company Private Limite
Uttam Value Steels Limited Kredence Multi Trading Limited
Archisha Steels Private Limited Uttam Galva International PTE Ltd
Texturing Technology Private Limited Moira Madhujore Coal Limited
5. Derivative Contracts entered into by the Company and outstanding as on 31st March 2017.
For Hedging Currency and Interest Rate Related Risks:
The Company uses forward exchange contracts to hedge its exposure in foreign currency related to firm commitments and highly probable forecasted transactions. The nominal amount of derivative contract entered into by the Company and outstanding as on 31st March, 2017 is as follows:
6. Previous Year''s figures are regrouped and rearranged wherever necessary.
Mar 31, 2016
The Company had given a corporate guarantee of Rs. NIL Crore (Previous Year Rs. 4.30 Crore) to Punjab National Bank Ltd, against Loan obtained by Moira Madhujore Coal Limited.
1. (a) The Income Tax Assessments are completed up to 31st March, 2012.
(b) The Sales Tax Assessments are completed up to 31st March, 2013.
(c) The Company does not expect any liability on remaining assessments / appeals.
2. Pursuant to revision of Accounting Standard 11 (AS 11), exchange fluctuation Loss of Rs. 96.99 Crore (Previous Year Rs. 70.03 Crore) on Foreign Currency Loans is shown under Capital Work In Progress, which is amortized over the tenure of the respective Foreign Currency Loan.
3. The Company has recognized Industrial Promotion Subsidy (IPS) receivable from Government of Maharashtra in respect of Mega Project under Package Scheme of Incentive (PSI) 2007.
During the Financial Year, the Company has treated incentive receivable under the said scheme to the tune of Rs. 58.61 Crore (Previous Year Rs. 24.44 Crore), as Capital Receipt.
4. Taxation.
(a) The Company does not have any taxable income as per the provisions of the Income Tax Act, 1961, nor liable to MAT (Minimum Alternate Tax), hence no provision has been made.
(b) During the year the Company has collected VAT and CST amounting Rs.63.33 Crore under Deferred Sales Tax Scheme, which is repayable in 5 equated annual installments after 11 years.
(c) VAT and CST collected under Deferred Sales Tax Scheme up to 31st March 2015, has already been paid at Net Present Value.
5. Diminution in value of Long Term Investments, Advances, and Claims
The Company has made a provision of Rs. 34.38 Crore (Previous Year Nil) towards the diminution in value of long term investments in overseas subsidiaries, and Rs. 61.98 Crore (Previous Year Nil) towards diminution in value of loans and advances. Non-realisable claims on vendors / advances to vendors, amounting to Rs.621.45 Crore (Previous Year Nil) has been written off.
6. Segment Reporting
The Company is Manufacturing of Steel Products and also has a Captive Power Plant, hence it is reporting its results in single segment as required by AS - 17.
7. Sundry Debit Balances and Credit balances are subject to confirmations.
8. Previous Year''s figures are regrouped and rearranged wherever necessary.
Mar 31, 2015
1 Cash Flow Statement has been prepared following the indirect method
except in case of interest paid / received, dividend paid / received,
purchase and sale of Investments which have been considered on the
basis of actual movements of cash with necessary adjustments in the
corresponding assets and liabilities.
2 Purchase of Fixed Assets includes movement of Capital Work in
Progress between the begining and end of the year and net of Creditors
for Capital Expenditure.
3 Cash and Cash Equivalents represent Cash& Bank balances and bank
deposits only.
CORPORATE INFORMATION
The Company is promoted by Miglani Family initially in the year 1985
and ArcelorMittal has joined as Co-Promoter in the year 2009-10.
The Company is in the business of manufacturing of intermediate steel
products i.e Cold Rolled Steel (CR) and Galvanised Products comprising
of Galvanised Plain (GP), Galvanised Corrugated (GC) and Colour Coated
Products (CCP) Coils and Sheets; situated at Khopoli, Mumbai, Western
part of India. The Company is in the business of procuring Hot Rolled
Steel (HR) and processing it in to CR and further in to GP and PPGI.
Its current facilities are mainly in thicker and thinner guage
material. The CR not used for galvanizing is converted to value added
grades in Cold Rolled Closed Annealed (CRCA) coils, Cut to Length (CTL)
Sheets and also sold as Full Hard CR in Domestic and Overseas market.
The market segment for value added grades include Appliance, General
Engineering, Automotive, Construction, Packaging, Sandwich Panels and
Others. The Company has initiated the process of development of
surplus land available at Pali Road Complex (PRC), Khalapur. The
Registered office of the Company is situated at Uttam House, 69 P
D'Mello Road, Carnac Bunder, Mumbai.
2) ECA from Nordea Bank is secured by exclusive charge on Packing
machine, supplied by PESMEL, Finland.
The details of amounts outstanding to Micro, Small & Medium Enterprises
based on information available with the Company is as under:
Note:
1 During the year the Company has revalued its Land at Pali Road
Complex, Khalapur The addition reflects / includes Rs. 614.53 Crores
towards Revaluation of Land. The difference between the Market Value
(Revalued value) and the cost is credited to Revaluation Reserve.
2 i) During the year the Company has converted a part (surplus) of
above Revalued Land at Pali Road Complex,
Khalapur from Fixed Asset to Stock in Trade at Market Value (Revalued
value).
ii) Deduction in Gross Block of Land reflect revalued value of Land,
converted into stock in trade amounting to Rs. 347.36 Crores.
3 The Company has re-worked depreciation with reference to the
estimated useful lives of fixed assets prescribed under Schedule II to
the Companies Act 2013 or as per technical evaluation and
componentization. Accordingly, an amount of Rs. 2.74 Crore is being
adjusted against the retained earnings as per transitional provision in
Note 7 (b) of Schedule II .
Sales includes Rs. 742.30 Crores ( Previous Year Rs 529.92 )towards sales
from trial run/stabilisation of Production, of 4 Hi Skin Pass Mill.
GP Sales includes Rs. 1,283.32 Crore (Previous Year Rs. 1,147.63 Crore)
towards sales during stabilisation of Super Galvanising Line (SGL).
Manufactured Sales includes Export Sales Rs. 1,365.77 Crore ( Previous
Year Rs. 1,480.84 Crore).
CRCA includes Hot Rolled Pickled and Oiled (HPRO) Arising Processing
Centre (APC) & Tubes.
4. Contingent Liabilities not provided for in respect of:
RsIn Crore
Sr.No. Particulars 31st March 2015 31st March 2014
(a) Letters of Credit outstanding 1,438.71 988.64
(b) Bank Guarantees 62.70 124.42
(c) Estimated amount of contracts
remaining to be 61.16 83.21
executed on capital account and not
provided for
(d) Disputed Statutory Liabilities 25.77 16.35
The Company had given a corporate guarantee of Rs. 87.54 Crores (Previous
Year Rs. 87.54 Crores) to Commissioner of Customs against export
obligation of Uttam Galva Metallics Limited.
The Company had given a corporate guarantee of Rs. 4.30 Crores (Previous
Year Rs. 4.30 Crores) to Punjab National Bank Ltd, against Loan obtained
by Moira Madhujore Coal Limited.
5. (a) The Income Tax Assessments are completed up to 31st March,
2012.
(b) The Sales Tax Assessments are completed up to 31st March, 2012.
(c) The Company does not expect any liability on remaining assessments
/ appeals.
6. Pursuant to revision of Accounting Standard 11 (AS 11), exchange
fluctuation Loss of Rs. 70.03 Crore (Previous Year Rs. 76.69 Crore) on
Foreign Currency Loans is adjusted against cost of fixed assets.
7. The Company's manufacturing facility situated at Donvat, Khopoli
has been granted "Mega Project Status" by Government of Maharashtra
and therefore is eligible for Industrial Promotion Subsidy (IPS) under
Packaged scheme of incentive (PSI) 2007.
The purpose of the packaged scheme of incentive PSI 2007 is for
promoting industries in the state of Maharashtra coupled with the
object of generating mass employment opportunities.
Modalities of payment of IPS consist of the following:
a. Electricity duty exemption for a period of 9 years 6 months from the
date of commencement of commercial production i.e. from 01.12.2014 to
31.05.2024.
b. 50% exemption from payment of stamp duty.
c. VAT & CST payable to state government on sales made from Donvat
Plant within a period of 19 years 6 months starting from 01.12.2014.
In terms of Accounting Standard (AS 12) "Accounting for Government
Grants" incentive/subsidy receivable to the tune of Rs. 24.44 crores is
considered to be in nature of Promoters Contribution and has been
credited to "Capital Reserve Account".
8. Taxation.
(a) The Company does not have any taxable income as per the provisions
of the Income Tax Act, 1961. However, it is liable to MAT (Minimum
Alternate Tax)
(b) During the year, the Company decided to prepay Value Added Tax
(VAT) payable under Deferral Sales Tax scheme, Against the Deferral
Sales Tax liability of Rs. 139.71 Crores (Previous year Rs. 122.97 Crores)
for period up to March, 2015. The Company has prepaid Rs. 39.13 Crores
(Previous year Rs. 34.44 Crores) at net present value as prescribed, and
consequential balance of Rs. 100.59 Crores (Previous year Rs. 88.54 Crores)
is treated as sales. This credit has accrued and arisen during the
Financial year 2014-15.
9. During the year under review, the Company carried out modification
/ revamping of Super Galvanizing Line (SGL). Total expenditure
includes cost of sales, Rs. 1431.48 Crores (Previous Year Rs. 1419.44
Crores) related to goods produced during trial run. Excess of
expenditure over Sales realization is capitalized.
10. During the year under review, the Company carried out modification
/ revamping of 4HI WW Skin Pass Mill. Total expenditure includes cost
of sales, Rs. 874.37 Crores (Previous Year) Rs. 630.76 Crores) related to
goods produced during trial run. Excess of expenditure over Sales
realization is capitalize.
11. Capital Work-in-progress:
Expenses incurred towards On-going Projects under various heads of
capital assets including advances paid to suppliers are as under:
Atlantis International Service Company Limited Uttam Galva North
America, INC Uttam Galva Steels , Netherland BV Uttam Export BVI
Neelraj International Trade Limited Uttam Galva International FZE (
Step Down Subsidiary)
Co-Promoter:
ArcelorMittal Netherland, B.V.
Ability to Control/Exercise Signifcant Influnence:
ArcelorMittal Finanzaria, SRL ArcelorMittal International Luxembourg
ArcelorMittal Cons Reunion ArcelorMittal Distribution Solution
ArcelorMittal SSC,Italia ArcelorMittal Singapore Pvt Limited
ArcelorMittal International FZE
Associates / Joint Ventures :
Grow Well Mercantile Private Limited Moira Madhujore Coal Limited
Evergreen Tradeplace Private Limited Uttam Value Steels Limited
Shree Uttam Steel and Power Limited Kredence Multi Trading Limited
Uttam Galva Metallics Limited Archisha Steels Private Limited
Uttam Utkal Steels Limited Uttam Galva International PTE
Limited
Sainath Trading Company Private Limited Uttam Exports Private Limited
Texturing Technology Private Limited
The Company has entered into transactions of fund transfers during the
course of business on temporary/ current account transaction basis.
Such transactions do not form part of loans.
During the year Company has shut down its subsidiary namely Uttam Galva
Steels FZE at cost.
12. Derivative Contracts entered into by the Company and outstanding as
on 31st March 2015.
For Hedging Currency and Interest Rate Related Risks:
The Company uses forward exchange contracts to hedge its exposure in
foreign currency related to firm commitments and highly probable
forecasted transactions. The nominal amount of derivative contract
entered into by the Company and outstanding as on 31st March, 2015 is
as follows:
13. Previous Year's figures are regrouped and rearranged wherever
necessary.
Mar 31, 2014
1. (a) The Company is being re-assessed, u/s 153A r/w section 132 of
the Income Tax Act, 1961, for Assessment Years 2006-2007 to 2012-2013
relevant to Financial Years 2005-2006 to 2011-2012.
(b) The Sales Tax Assessments are completed up to 31st March, 2012.
(c) The Company does not expect any liability on remaining assessments
/ appeals.
2. Pursuant to revision of Accounting Standard 11 (AS 11), exchange
fluctuation Loss ofRs. 76.69 Crore (Previous Year Rs. 8.82 Crore) on
Foreign Currency Loans is adjusted against cost of fixed assets.
3. Taxation.
(a) The Company does not have any taxable income as per the provisions
of the Income Tax Act, 1961. However, it is liable to MAT (Minimum
Alternate Tax).
(b) During the year, the Company decided to prepay Value Added Tax
(VAT) payable under Deferral Sales Tax scheme, against the Deferral
Sales Tax liability ofRs. 122.97 Crore (Previous year Rs. 132.23 Crore) for
period upto 31st March, 2014. The Company has prepaid Rs. 34.44 Crore
(Previous year Rs. 37.03 Crore) at net present value as prescribed, and
consequential balance of Rs. 88.54 Crore (Previous year Rs. 93.83 Crore) is
treated as sales and Rs. Nil (Previous Year Rs. 1.37 Crore) is credited to
Fuel Account. This credit has accrued and arisen during the financial
year 2013-2014.
4. During the year under review, the Company carried out modification
/ revamping of Super Galvanizing Line (SGL). Total expenditure
includes Cost of Sales of Rs. 1419.44 Crore (Previous Year Rs. 1162.10
Crore) related to goods produced during trial run. Excess of
expenditure over Sales realization is capitalized.
5. During the year under review, the Company carried out modification
/ revamping of 4HI WW Skin Pass Mill. Total expenditure includes cost
of sales of Rs. 630.76 Crore (Previous Year Rs. 952.42 Crore) related to
goods produced during trial run. Excess of expenditure over sales
realization is capitalized.
6. Segment Reporting
The Company is manufacturing Steel Products and also has a Captive
Power Plant, hence it is reporting its results in single segment as
required by AS-17.
7. Ferro Zinc International (FZE) has ceased to be a step-down
Subsidiary of the Company during the year ended 31st March, 2014.
Therefore the financial statement of Ferro Zinc International (FZE)
will not form part of consolidated financial statements of the Company
with effect from 1st April, 2013.
8. Previous Year''s figures are regrouped and rearranged wherever
necessary.
Mar 31, 2013
CORPORATE INFORMATION
The Company is promoted by Miglani family initially in the year 1985
and ArcelorMittal has joined as Co-Promoter in the year 2009-10.
The Company is in the business of manufacturing of intermediate steel
products i.e Cold Rolled Steel (CR) and Galvanised Products comprising
of Galvanised Plain (GP), Galvanised Corrugated (GC) and Colour Coated
Products (CCP) Coils and Sheets situated at Khopoli, Mumbai Western
part of India. The Company is in the business of procuring Hot Rolled
Steel (HR) and processing it in to CR and further in to GP and PPGI.
Its current facilities are mainly in thicker and thinner guage
material. The CR not used for galvanizing is converted to value added
grades in Cold Rolled Closed Annealed (CRCA) coils, Cut to Length (CTL)
Sheets and also sold as Full Hard CR in Domestic and Overseas market.
The market segment for value added grades include Appliance, General
Engineering, Automative, Construction, Packaging, Sandwich Panels and
Others.
The registered office of the Company is situated at Uttam House, 69 P
D''Mello Road, Carnac Bunder, Mumbai.
1.0 Previous Year''s figures are regrouped and rearranged wherever
necessary.
2.1 Contingent Liabilities not provided for in respect of:
Sr. Particulars As at As at
No 31st March,
2013 31st March,
2012
(a) Letters of Credit outstanding 754.88 698.58
(b) Bank Guarantees 129.12 130.25
(c) Estimated amount of contracts
remaining to be executed on 86.31 126.02
capital account and not provided for
(d) Bills Discounted NIL NIL
2.2 The Company had given a corporate guarantee of Rs.87.54 Crores
(Previous Year Rs. 87.54 Crores) to Commissioner of Customs against
export obligation of Uttam Galva Metallics Limited.
2.3 The Company had given a corporate guarantee of Rs.4.30 Crores
(Previous Year Rs. 4.30 Crores) to Punjab National Bank Limited on
behalf of Joint Venture Company.
2.4 The Company has given a corporate guarantee of USD 40 million
(Previous Year USD 40 Million) to Standard Chartered Bank against
credit facility availed by Atlantis International Service Company
Limited, Sundry Creditors under the head current liability includes Rs.
Nil Crores (Previous Year Rs 96.66 Crores) towards the liability
payable to subsidiary company.
2.5 The company has given a corporate guarantee of USD 30 million (
Previous Year USD 30 million) to ICICI Bank against credit facility
availed by Ferro Zinc International FZE, Sundry Creditors under the
head current liability includes Rs. 59.79 (Previous Year Rs.153.99
Cores ) towards the liability payable to subsidiary company.
3.0 During the Financial Year, the Company has shifted its ERP System
from MFG-PRO to SAP w.e.f 1st January 2013. Prima Facie, the new
system is implemented satisfactorily with reference to material
movements (MM Module) and financial transactions (SD and FI Modules).
Errors/Omissions / Slippages of insignificant nature noticed during
implementation have been corrected appropriately.
4.0 (a) The Company is being re-assessed, under Section I53A r/w
Section 132 of the Act for Assessments Year 2006-07 to 2011-12 i.e
Financial Year 2005-06 to 2010-11.
(b) The Sales Tax Assessments are completed up to 31st March, 2011.
(c) The Company does not expect any liability on remaining assessments
/ appeals.
5.0 Pursuant to revision of Accounting Standard II (AS II), exchange
fluctuation Loss of Rs.8.82 Crores (Previous Year Rs. I8.33 Crores) on
Foreign Currency Loans is adjusted against cost of relevant fixed
assets.
6.0 Taxation.
6.1 The Company does not have any taxable income as per the provisions
of the Income Tax Act, I96I. However, it is liable to MAT (Minimum
Alternate Tax).
6.2 During the year, the Company decided to prepay Value Added Tax
(VAT) payable under Deferral Sales Tax scheme, Against the Deferral
Sales Tax liability of Rs.I32.23 Crores (Previous year Rs. I35.03
Crores) for period April 20I2 to March 20I3. The Company has prepaid
Rs. 37.03 Crores (Previous year Rs.37.8I Crores) at net present value
as prescribed, and consequential balance of Rs. 93.83 Crores (Previous
year Rs. 97.2I Crores) is treated as sales and Rs. I.37 crores
(Previous Year Rs. I.0I crores) is credited to Fuel Account. This
credit has accrued and arisen during the financial year 20I2-I3.
7.0 During the current year under review the company carried out
modification / revamping of Super Galvanizing Line (SGL). Total
expenditure includes cost of sales, Rs. II62.I0 Crores (Previous year
Rs. 86I.2I Crores) related to goods produced during trial run. Excess
of expenditure over Sales realization is capitalized.
8.0 During the current year under review the Company carried out
modification / revamping of 4HI WW Skin Pass Mill. Total expenditure
includes cost of sales, Rs. 952.42 Crores (Previous year Rs. 913.87
Crores) related to goods produced during trial run. Excess of
expenditure over Sales realization is capitalized
9.0 (a) During the year, Uttam Galva Steels (BVI) Limited, a wholly
owned Subsidiary has been incorporated on 26th day of November, 2012 at
British Virgin Islands and Uttam Galva Steels FZE, a wholly owned
Subsidiary has also been incorporated on 21st day of November, 2012 at
United Arab Emirates.
10.0 (a) List of Related Parties As per Accounting Standard I8 (AS.I8)
with whom the Company have entered into transactions during the year in
the ordinary course of business:
(i) Key Managerial Personnel:
Shri Rajinder Miglani
Shri Anuj R Miglani
Shri Ankit Miglani
Shri Gursharan Singh Sawhney
Shri Sunil Prakash
(ii) Other Related Parties
(Associates of the Company / Enterprises over which key management
personnel and/or their relatives exercise significant influence)
Wholly Owned Subsidiary / Step down Subsidiary:
Uttam Galva Holdings Limited
Atlantis International Services Company Limited
Ferro Zinc International FZE
Uttam Galva Steels , Netherlands BV
Neelraj International Trade Limited, BV
Uttam Galva Steels ( BVI) Limited
Uttam Galva Steels FZE
Associates / Joint Ventures :
Grow Well Mercantile Limited
Shree Uttam Steel and Power Limited
Uttam Galva Metallics Limited
Uttam Distribution Network Limited
Uttam Utkal Steels Limited
Sainath Trading Company Private Limited
Texturing Technology Private Limited
Moira Madhujore Coal Limited
Uttam Value Steels Limited (Formerly known as Llyods Steel Industries
Limited)
Kredence Multi Trading Limited Archisha Investment Pvt Limited
Uttam Galva Ferous Limited
Ability to Control / Exercise Significant Influence
ArcelorMittal Finanzaria, SRL
ArcelorMittal Cons Reunion
ArcelorMittal SSC, Italia
ArcelorMittal International FZE
ArcelorMittal International Luxembourg
ArcelorMittal Distribution Solution
ArcelorMittal Singapore Pvt Limited
11.0 Segment Reporting The Company is Manufacturing of Steel Products
and also has a Captive Power Plant, hence it is reporting its results
in single segment as required by AS - 17.
12.0 Sundry Debit Balances and Credit balances are subject to
confirmations.
Mar 31, 2012
1. Previous Year's figures are regrouped and rearranged wherever
necessary.
2.1 Contingent Liabilities not provided for in respect of:
(Rs in Crores)
Sr. As at As at
No. Particulars 31st March, 2012 31st March, 2011
(a) Letters of Credit outstanding 698.58 591.93
(b) Bank Guarantees 130.25 92.54
(c) Estimated amount of contracts
remaining to be executed on
capital 126.02 60.04
account and not provided for
2.2 The Company had given a corporate guarantee of Rs 84.54 Crores
(Previous Year Rs 87.54 Crores) to Commissioner of Customs against
export obligation of Uttam Galva Metallics Limited.
2.3 The Company has given a corporate guarantee of USD 40 million
(Previous Year USD 40 Million) to Standard Chartered Bank against
credit facility availed by Atlantis International Service Company
Limited Trade Payable to Subsidiary Companies includes Rs 99.66 Crores
(Previous Year NIL) towards the liability payable to subsidiary
company.
2.4 The company has given a corporate guarantee of USD 30 million (
Previous Year USD 30 million ) to ICICI Bank against credit facility
availed by Ferro Zinc International FZC, Trade Payable to Subsidiary
Companies includes Rs 153.99 ( Previous Year Rs 142.78 Cores ) towards
the liability payable to Subsidiary Company.
3.0 (a) The Income Tax Assessment is completed up to 31st March, 2009
i.e. Assessment Year 2009-10.
(b) The Sales Tax Assessments are completed up to 31st March, 2011.
(c) The Company does not expect any liability on remaining assessments
/ appeals.
4.0 Pursuant to revision of Accounting Standard 11 ( AS 11), exchange
fluctuation Loss of Rs 18.33 Crores ( Previous Year Rs 31.88 Crores ) on
Foreign Currency Term Loans ( FCTL ) is adjusted against cost of
relevant fixed assets.
5.0 Taxation.
6.1 The Company does not have any taxable income as per the provisions
of the Income Tax Act, 1961. However, it is liable to Mat (Minimum
Alternate Tax)
6.2 During the year, the Company decided to prepay Value Added Tax
(VAT) payable under Deferral Sales Tax scheme, Against the Deferral
Sales Tax liability of Rs 135.03 Crores ( Previous Year Rs 100.52 Crores
) for period up to March '12. the Company has prepaid Rs 37.81 Crores (
Previous Year Rs 28.15 Crores ) at Net Present Value ( NPV ) as
prescribed, and consequential balance of Rs 97.21 Crores ( Previous Year
Rs 72.37 Crores ) is treated as sales. This credit has accrued and
arisen during the financial year 2011-12.
7.0 During the year Company Commenced trial runs of Captive Power Plant
( CPP ). Power Generated 340977 MWH ( 42345 MWH Auxiliary Consumption )
out of this 147399 MWH has been consumed captively & balance sold to
outside parties.
8.0 During the current year under review the Company carried out
modification / revamping of Super Galvanizing Line ( SGL ) since July
2011. Total expenditure includes cost of sales, Rs 861.21 Crores (
Previous Year Nil ) related to goods produced during trial run. Excess
of expenditure over Sales realization is capitalized.
9.0 During the current year under review the Company carried out the
Test Runs / Stabilization 4HI WW Skin Pass Mill during 2011-12. Total
expenditure includes cost of sales, Rs 913.87 Crores ( Previous Year Nil
) related to goods produced during trial run. Excess of expenditure
over Sales realization is capitalized
10.0 (a) During the year, Neelraj International Trade Limited, a wholly
owned Subsidiary has been incorporated on 9th day of January, 2012 at
British Virgin Islands.
11.0 (a) List of Related Parties as per Accounting Standard 18 (AS.18)
with whom the Company have entered into transactions during the year in
the ordinary course of business:
(i) Key Managerial Personnel:
Mr. Rajinder Miglani Mr. Anuj R Miglani Mr. Ankit Miglani
(ii) Other Related Parties
(Associates of the Company / Enterprises over which key management
personnel and / or their relatives exercise significant influence)
Wholly Owned Subsidiary / Step down Subsidiary:
Uttam Galva Holdings Limited
Atlantis International Services Company Limited
Ferro Zinc International FZE
Uttam Galva Steels, Netherlands BV
Neelraj International Trade Limited
Associates / Joint Ventures :
Grow Well Mercantile Limited
Shree Uttam Steel and Power Limited
Uttam Galva Metallics Limited
Uttam Distribution Network Limited
Uttam Utkal Steels Limited
Sainath Trading Company Private Limited
Texturing Technology Private Limited
Moira Madhujore Coal Limited
Ability to Control / Exercise Significant Influence
ArcelorMittal Finanzaria, SRL
ArcelorMittal Cons Reunion
ArcelorMittal SSC, Italia
ArcelorMittal International FZE
ArcelorMittal Internation Luxembourg
ArcelorMittal Distribution Solution
12.0 Segment Reporting
The Company is Manufacturer of Steel Products and also has a Captive
Power Plant (CPP), hence it is reporting its results in single segment
as required by AS - 17
13.0 Sundry Debit Balances and Credit Balances are subject to
confirmations.
Mar 31, 2010
1.0 Previous Years figures are regrouped and rearranged wherever
necessary.
2.1 Contingent Liabilities not provided for in respect of:
(Rs. in Crores)
31st March, 31st March,
2010 2009
(a) Letters of Credit outstanding 1346.31 600.56
(b) Bank Guarantees 19.17 47.25
(c) Estimated amount of contracts
remaining to be executed on
capital account and not provided for 54.00 115.00
2.2 The Company had given a corporate guarantee of Rs.91.94 Crores to
Commissioner of Customs against export obligation of Uttam Galva
Metallics Limited.
2.3 The company has given a corporate guarantee of USD 40 million to
Standard Chartered Bank against credit facility availed by Atlantis
International Service Company Ltd., Sundry Creditors under the head
current liability includes Rs.166.93 Crores towards the liability
payable to subsidiary company.
3.0 (a) The Income Tax Assessment is completed up to 31st March, 2006.
ie. Assessment Year 2006-07.
(b) The Sales Tax Assessments are completed up to 31st March, 2009.
(c) The Company does not expect any liability on remaining assessments
/ appeals.
4.0 Pursuant to revision of Accounting Standard 11 (AS 11), exchange
fluctuation Gain of Rs. 31.29 Crores on Foreign Currency Loans is
adjusted against cost of relevant fixed assets.
5.0 Taxation.
5.1 The Company has taxable income as per the provisions of the Income
Tax Act, 1961.
5.2 The company has provided for deferred tax liability to the tune of
Rs. 32.02 Crores (Previous Year Rs. 39.73 Crores) arising on account of
timing difference between the book and tax profit of the period. The
same is net of tax incentive available at a future date and deferred
tax payable at future date.
5.3 During the year the Company has recognised MAT Credit Entitlement
to the sum of Rs.7.98 Crores (Previous Year Rs.10.85 Crores) pertaining
to MAT payment for the current year.
6.0 During the year, the Company decided to prepay Value added tax
(VAT) payable under Deferral Sales Tax scheme, against the Deferral
Sales Tax liability of Rs.79.31 Crores (Previous Year Rs. 61.24 Crores)
for period upto March 10. The Company has prepaid Rs. 22.21 Crores
(Previous Year Rs.19.72 Crores) at net present value as prescribed, and
consequential balance of Rs. 57.10 Crores (Previous Year Rs.41.52
Crores) is treated as sales. This credit has accrued and arisen during
the Financial Year 2009-10.
7.0 Total expenditure includes cost of sales, Rs.-NIL, (Previous Year
957.48 Crores) related to goods produced during trial run. Excess of
expenditure over sale realisation is capitalised.
8.0 The Company has provided for Unclaimed Leave Encashment Benefits as
at 31st March, 2010 to the tune of Rs. 4.66 Crores.
9.0 During the year, Atlantis International Service Company Limited a
wholly owned subsidiary has been incorporated on 8th Day of June 2009
in British Virgin Island (BVI).
10.0 (a) List of Related Parties As per Accounting Standard 18 (AS.18)
with whom the Company have entered into transactions during the year in
the ordinary course of business:
(i) Key Managerial Personnel:
Rajinder Miglani
Praveen Miglani
Anuj Miglani
Ankit Miglani
Note: Details relating to remuneration to the above key management
personnel have been disclosed in Note No. 16 (a).
(ii) Other Related Parties
(Associates of the Company/Enterprises over which key management
personnel and/or their relatives exercise significant influence)
1) Wholly Owned Subsidiary / Step down Subsidiary:
Uttam Galva Holding Limited
Atlantis International Service Company Limited
Ferro Zinc International FZE
2) Associates / Joint Ventures
Growell Mercantile Private Limited
Shree Uttam Steel and Power Limited
Uttam Galva Metallics Limited
Uttam Distribution Network Limited
Uttam Utkal Steels Limited.
Texturing Technology Private Limited
3) Ability to control / exercise significant influence:
ArcelorMittal Netherlands B.V.
ArcelorMittal International, Brazil
ArcelorMittal International, Romania
ArcelorMittal Cons Reunion
ArcelorMittal SSC Italia
ArcelorMittal South Africa
Note : ArcelorMittal Netherlands became shareholder w.e.f. 19.01.2010.
However, related party transactions for the earlier period have been
disclosed, as required by Accounting Standard 18 issued by ICAI.
11.0 The Company has sent memorandum (as required to be filled by the
suppliers with the notified authority under the Micro, Small and Medium
Enterprises Development Act, 2006) Claiming their status as on 31st
March, 2010 as micro, small or medium enterprises.
The Company is of the view that such parties are restricted to Job
workers and Stores / Consumable material suppliers. Hence, such
instances and respective outstanding may be insignificant.
Notes: (1) Galvanised Production does not include Nil GP Coils
purchased, processed to GC and sold. (Previous Year 465 MT)
(2) Colour Coating Line production includes 507 MT CC Sheets consumed
for Capital Projects. (Previous Year 253 MT)
(3) Production of 4297 MT CR Baby coil is not included in the aforesaid
production. (Previous Year 10251 MT)
(4) Previous Year figures have been regrouped and reclassified to make
them comparable with figures of Current Year.
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