Notes on Standalone Financial Statements
Note No.29
Provision for Taxation has been made after taking into account, the difference between depreciation in the accounts and the depreciation allowable as per the Income Tax Act, 1961 and other deductions /additions allowable/disallowable under the Income Tax Act, 1961.
Note No.30
Related party disclosures:
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Nature of relationship
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Name of Party
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(a)
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Related Parties where control exists :
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Subsidiaries Croup Companies
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Steel City Commodities Private Limited Steel City Financial Services Private Limited
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(b)
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Other related parties :
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|
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Key Management Personnel
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Mr. C. Sree Rama Murthy
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Mr. K. Satyanarayana
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Mr. Satish Kumar Arya
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c ) Significant transaction with related parties:
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Nature of Transaction
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SI
No.
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Nature of Relationship
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Name of the Related Party
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Remuneration
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Corporate guarantee given
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Advance Returned
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Advance Taken
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Dividend Paid/(received)
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Brokerage Received
|
|
1
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Subsidiary Company
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Steel City Commodities Private Ltd
|
0.00
|
4,00,00,000.00
|
1,70,08,522.34
|
1,70,08,522.34
|
(16,73,000)
|
0.00
|
|
2
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Associate Company
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Steel City Financial Services Private Ltd
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0.00
|
0.00
|
0.00
|
0.00
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23,95,500
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0.00
|
|
3
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Chairman and Managing Director upto 05-11-2017
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G Sree Rama Murthy
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23,47,000.00
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0.00
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0.00
|
0.00
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92,59,662
|
3,318.10
|
|
4
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Executive Chairman w.e.f. 24-11-2017
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K Satyanarayana
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31,00,000.00
|
0.0
|
0.00
|
0.00
|
47,30,700
|
3,470.80
|
|
5
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Managing Director w.e.f. 24-11-2017
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Satish Kumar Arya
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26,00,000.00
|
0.00
|
0.00
|
0.00
|
23,87,520
|
5,91,317.31
|
|
6
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Relative of fey Management -Wife of Sri K Satyanarayana
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K Mahalakshmi
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0.00
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0.00
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0.00
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0.00
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154,800
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6,350.93
|
|
7
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Relative of fey Management - son of Sri K Satyanarayana
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K S V Ramesh Babu
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5,82,500.00
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0.00
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0.00
|
0.00
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2,83,900
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4004.80
|
|
8
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Relative of fey Management - wife of Sri Satish Kumar Arya
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Nirmala Devi Arya
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0.00
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0.00
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0.00
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0.00
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1,40,400
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50056.00
|
| |
Total
|
|
86,29,500.00
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4,00,00,000.00
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1,70,08,522.34
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1,70,08,522.34
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1,76,79,482.00
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6,58,517.94
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Note: Transactions between group companies comprise of extension and return of temporary adjustment of common clients accounts as identified by the Company's management from the Holding/Subsidiary Company's Account
(d) Amount due to / from related parties
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(Amount in Rs.)
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Nature of Transaction
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Due to / (from)
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Steel City Commodities Private Ltd.
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0.00
|
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Steel City Financial Services Private Ltd.
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2,80,760.00
|
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C. Sree Rama Murthy
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0.00
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K. Satyanarayana
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0.00
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Satish Kumar Arya
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0.00
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Note No. 31
Statement of utilisation of Initial Public Offering ('IPO') as on 31st March, 2018:
In February, 201 7 the Company approached the capital market by way of an SME IPO. The utilisation of the proceeds from IPO in the current year is set out below:
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(Amount in Rs. Lakhs)
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Particulars
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Proposed amount as per Prospectus
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Proposed amount as per the Resolution passed through Postal Ballot on 02.01.2018
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Amount utilized as on 31.03.2018
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Investment in Technology Upgradation and office infrastructure for expansion of E-Covernance business
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390.00
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194.02
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194.02
|
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Setting up AADHAAR Enrolment centre at all our existing Branches
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264.00
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0.87
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0.87
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Enhancement of our Company's brand through advertising and other brand-building activities
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250.00
|
1.00
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1.00
|
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Working Capital Requirement
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200.00
|
887.04
|
887.04
|
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Offer Expenses
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220.00
|
241.07
|
241.07
|
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General Corporate Purposes
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175.40
|
175.40
|
175.40
|
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Total
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1499.40
|
1499.40
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1499.40
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Note No.32
Defined Benefit Plan - Gratuity
The Company provides gratuity benefitto its employees, which is funded with Life Insurance Corporation of India. The following table sets out the funded status of the defined benefit scheme and the amounts recognised in the financial statements:
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31st March 2018
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31st March 2017
|
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Net Asset / (Liability) recognised in the Balance Sheet:
|
|
|
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Present Value of Defined Benefit Obligation
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89,98,968
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83,65,556
|
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Fair Value of Plan Assets
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90,49,859
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70,21,518
|
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Funded Status [Surplus / (Deficit)]
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50,891
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(13,44,038)
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Unrecognised Past Service Costs
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—
|
—
|
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Net Asset / (Liability) recognised in the Balance Sheet
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50,891
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(13,44,038)
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Change in Defined Benefit Obligations (DBO) during the Year:
|
|
|
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Present Value of DBO at the beginning of the Year
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83,65,556
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65,40,376
|
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Current Service Cost
|
9,88,116
|
9,08,784
|
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Interest Cost
|
5,94,912
|
4,97,540
|
|
Actuarial (Gains)/ Losses
|
—
|
—
|
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Past Service Cost
|
—
|
—
|
|
Benefits Paid
|
(4,32,147)
|
(4,84,811)
|
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Actuarial loss/(gain) on obligation (balancing figure)
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(5,17,469)
|
9,03,667
|
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Present Value of DBO at the end of the Year
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89,98,968
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83,65,556
|
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Change in Fair Value of Assets during the Year:
|
|
|
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Plan Assets at the beginning of the Year
|
70,21,518
|
63,13,573
|
|
Expected Return on Plan Assets
|
5,81,761
|
5,43,674
|
|
Actual Company Contributions
|
18,00,000
|
6,50,000
|
|
Actuarial Gain / (Loss)
|
78,727
|
(918)
|
|
Benefits Paid
|
(4,32,147)
|
(4,84,811)
|
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Plan Assets at the end of the Year
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90,49,859
|
70,21,518
|
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Actual Return on Plan Assets
|
6,60,488
|
5,42,756
|
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Composition of Plan Assets is as follows:
|
|
|
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Government Bonds
|
Not Received
|
Not Received
|
|
Debentures and Bonds
|
Not Received
|
Not Received
|
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Fixed Deposits
|
Not Received
|
Not Received
|
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Others
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Not Received
|
Not Received
|
|
* - Funds are managed by Life Insurance Corporation of India and
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|
|
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composition of the fund as at the balance sheet date was not provided
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|
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by the insurer.
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90,49,859
|
70,21,518
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Assumption used in accounting for Gratuity Plan:
|
|
|
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Discount Rate
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7.71
|
7.30
|
|
Salary Escalation Rate
|
5.00
|
5.00
|
|
Expected rate of return on plan assets
|
7.55
|
7.55
|
Note No.33
Corporate Social Responsibility
a) Cross Amount required to be spent by the Company during the year Rs.15,11,01 7.00
b) Total Amount spent during the year is Rs.15,11,017.00 as detailed below:
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Particulars
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Amount (Rs.)
|
|
Amount Contributed to Sweekaram Education Society of Greater Visakhapatnam Municipal Corporation, Visakhapatnam.
|
5,00,000.00
|
|
Amount Contributed to Prime Minister National Relief Fund
|
6,11,017.00
|
|
Amount Contributed to Lebenshilfe, Visakhapatnam.
|
2,00,000.00
|
|
Amount Contributed to The Akshaya Patra Foundation, Visakhapatnam.
|
2,00,000.00
|
|
Total
|
15,11,017.00
|
Note No.34 Segment Reporting 1 .Business Segment:
(i) The business segment has been considered as the primary segment.
(ii) The Company's primary business segments are reflected based on principal business activities, the nature of service, the differing risks and returns, the organisation structure and the internal financial reporting system
(iii) The Company's primary business comprises of two business segments viz., Stock Broking & DP Operations and E-Covernance Operations
(iv) Segment revenue, results, assets and liabilities include amounts identifiable to each segments allocated on a reasonable basis.
(v) The accounting policies adopted for segment reporting are in line with the accounting policies adopted for preparation of financial information
Information about the Primary Segment:
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Particulars
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Stock Broking & Dp Operations
|
E-Governance Operations
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Grand Total
|
|
A. Segment Revenue
|
|
|
|
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External Segment
|
31,29,23,663.01
|
32,32,43,235.73
|
63,61,66,898.74
|
|
Internal Segment
|
-
|
-
|
-
|
|
Total Revenue
|
|
|
|
|
31,29,23,663.01
|
32,32,43,235.73
|
63,61,66,898.74
|
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B. Segment Results Profit/Loss
|
8,91,99,914.69
|
7,66,11,882.87
|
16,58,11,797.56
|
|
Less: Depreciation
|
|
|
86,27,809.94
|
|
Less: Income Taxes (Current, Deferred Tax)
|
|
|
4,63,97,592.96
|
|
ProfitALoss) After Tax
|
|
|
11,07,86,394.66
|
|
C. Segment Assets
|
97,46,86,474.10
|
26,79,67,538.99
|
1,24,26,54,013.09
|
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D. Segment Liabilities
|
35,64,25,151.31
|
20,18,23,356.59
|
55,82,48,507.90
|
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E. Capital Expenditure
|
92,96,043.74
|
38,21,654.52
|
1,31,17,698.26
|
|
F. Depreciation
|
74,09,492.17
|
12,18,317.77
|
86,27,809.94
|
2. Geographical Segment
Further the Company has no geographical segments which are subject to different risk and returns. Hence, no separate disclosure in terms of Accounting Standard (AS -17) on segment reporting is considered necessary.
Note No.35
Previous year's figures have been regrouped/reclassified wherever necessary to confirm to the current year's classification/disclosures
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In terms of our report attached
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For SARC & ASSOCIATES
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For STEEL CITY SECURITIES LIMITED
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Chartered Accountants
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Firm Reg.No.006085N
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CHANDRA SEKHAR AKULA
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K SATYANARAYANA
|
SATISH KUMAR ARYA
|
GSR PRASAD
|
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Partner
|
EXECUTIVE CHAIRMAN
|
MANAGING DIRECTOR
|
DIRECTOR
|
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Membership No.206704
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PLACE: VISAKHAPATNAM
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NRAMU
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M SRIVIDYA
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DATE : 29.05.2018
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CHIEF FINANCIAL OFFICER
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COMPANY SECRETARY
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