Terms/ rights attached to Equity Shares
The company has only one class of Equity Shares having a nominal value of Rs. 10/- per share. Each holder of Equity Shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the company, the holders of Equity Shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the shareholders.
Terms/ rights attached to Preference Shares
The company has only one class of Preference Shares (i.e. 6% Non Cumulative Redeemable Preference Shares) having a nominal value of '10/- per share. The preference shareholders shall have the right to vote on any resolution of the Company directly affecting their rights. The company declares and pays preferential dividends in Indian rupees.
The Preference Share of the Company are non cumulative in nature and therefore in case the Company does not declare dividend in any particular year, dividend right gets lapsed and is not eligible for carry forward in future years.
Preference shares are redeemable within 20 years from the date of allotment at a price to be decided by the Board of Directors at the time of redemption. The said preference shares may be redeemed at a premium not exceeding Rs. 90/per share.
In the event of liquidation of the Company, the holders of Preference Shares will be entitled to receive assets of the company, before its distribution to equity shareholders. The distribution will be in proportion to the number of preference shares held by the preference shareholders.
* During the year, as per the requirement under Schedule II to the Companies Act 2013, vide Notification dated 29th August 2014, the Company based on technical advice identified significant parts & components of the main asset having different useful lives as compared to the main asset and consequently revised the estimated useful lives of certain Plant and Machinery and Electrical Installations w.e.f. from 1st April 2015. Accordingly depreciation of Rs. 26.46 lacs on account of assets whose useful life is already exhausted on 1st April, 2015 has been adjusted against Surplus in statement in Profit and Loss.
Terms and conditions attached to Short term borrowings
Cash Credit and Short term loan facilities and Foreign currency loans from banks are secured by hypothecation of raw materials, finished goods, goods under process, stores and spares, book debts etc. (both present and future), second charge over the entire fixed assets of the Company and personal guarantees of Puran Mal Agrawal (Chairman2), Suresh Kumar Agrawal, Saket Agrawal and Manish Agrawal (Directors of the Company).
c) Depreciation of' 26.46 lacs on account of assets whose useful life is already exhausted on 1 st April, 2015 has been adjusted against surplus in Statement of Profit and Loss. Pursuant to requirements under Schedule II to companies act, 2013 vide Notification dated 29th August 2014, the Company based on technical advice, identified significant parts & components of the main asset having different useful lives as compared to the main asset and consequently revised the estimated useful lives of certain Plant and Machinery and Electrical Installations w.e.f from 1st April, 2015.
* Includes Rs. 4,949.90 lacs (Rs. 18,017.01 lacs) capitalized from Capital Work in progress (CWIP)
** Represents the amount of borrowing cost transferred from CWIP
* The details of security for the secured loans are as follows:
In terms of the Corporate Debt Restructuring (CDR) Package, effective from October 1, 2014, the Loans considered under the said package have been categorized as Term Loans, Working Capital Term Loans, Funded Interest Term Loans which are secured as under:
a First hypothecation charge on plant, machinery, fixed assets, and other movable assets, both present and future of the company, on pari-passu basis with all term lenders and equitable mortgage of factory land & building on pari passu basis with all Term Lenders.
b Second charge on entire current assets of the company ranking pari passu with other member banks of the consortium. c Pledge of 100% of Promoter's Shareholding representing 71.90% of the paid up capital of the company as on 30.09.2014 has been executed in favour of the CDR lenders. d Lien on all Bank Accounts including the Trust and Retention Account.
Further, the above facilities are also covered by the following:
Irrevocable, unconditional personal guarantee of promoters (Mr. Puran Mal Agrawal, Mr. Suresh Kumar Agrawal, Mr. Saket Agrawal, and Mr. Manish Agrawal) of the Company.
Registered mortgage of 150.50 acres of segregated agricultural land. As per valuation report of December 2014, realizable value of the property is Rs. 12.41 Crores. The said land shall be converted into industrial land by 31.03.2016 failing which alternate security will be provided by the Company.
Irrevocable, unconditional Corporate Guarantee of Ilex Private Limited.
** Hire purchases obligations are secured by hypothecation of vehicles purchased under the respective agreements.
** The Hon'ble High Court of Judicature at Madras, vide its Order dated June 25, 2015, has sanctioned the Scheme of Arrangement among IDFC Limited (" Transferor Company") and IDFC Bank Limited ("Transferee Company") and their respective shareholders and creditors under section 391 to 394 to the Companies Act, 1956 (" Demerger Scheme").
Pursuant to the Demerger Scheme, IDFC Bank Limited has issued and alloted to the shareholders of IDFC Limited as on the record date i.e., October 5, 2015, one (1) equity share having a face value of ' 10 each of IDFC Bank Limited for every one (1) equity share held by them in IDFC Limited, each equity share being fully paid-up.
* Fixed deposits with a carrying amount of Rs. 285.93 lacs (Rs. 189.73 lacs) are used towards security given against the Bank Guarantees & Company's Letter of Credits (LC's) issued by the banks and Rs. 5.74 lacs (Rs. 5.74 lacs) as security deposit issued to sales tax department on behalf of the Company.
1. Other Expenses include Rs. 129.97 Lacs spent towards various schemes of Corporate Social Responsibility as prescribed under section 135 of Companies Act,2013.
2. Gratuity and Other Post Retirement Benefit Plans
The Company provides gratuity benefits which are funded with Life Insurance Corporation of India in the form of qualifying insurance policy. Leave encashment benefits is an unfunded plan of the Company.
The estimate of future salary increase, considered in actuarial valuation, takes account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employee market.
3. Segment Information
The Company is engaged in manufacturing of "Iron and Steel". Consequently it has one reportable business segment e.g. "Iron and Steel". The analysis of geographical segments is based on the area in which the customers of the Company are located.
The Company has common fixed assets for producing goods for domestic and overseas markets which are located at only one place i.e. Raigarh. Hence, separate figures for fixed assets / additions to fixed assets cannot be furnished. Export debtors at the year end amounts to Rs. 846.82 lacs (Rs. 176.49 lacs).
4. Operating Lease Company as Lessee
The Company has lease agreement for various premises which are in the nature of Operating Lease. There are no restrictions placed upon the company by entering into these leases.
5. Interest in Joint Venture
The Company has a 14.90 % (14.90%) interest in Madanpur South Coal Company Limited (a Joint Venture Company), incorporated in India.
The Company's proportionate share of the capital commitments in this Joint Venture amounts to ' Nil (' Nil).
6. Impairment of Assets
On the basis of physical verification of assets and cash generation capacity of those assets, in the management perception, there is no impairment of assets as on 31st March 2016.
It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above pending resolution of the respective proceedings as it is determinable only on receipt of judgments/decisions pending with various forums/authorities.
There is no possibility of any reimbursement on any of the cases listed above
* The Company has given guarantee to ICICI Bank in respect of loan taken by AA ESS Tradelinks Private Limited amounting to Rs. 7,500 lacs (Rs. 7,500 lacs) on 31st May 2011. The management believes that the terms of the guarantee given are not prejudicial to the interest of the Company.
7. Valuation of Current Assets, Loans & Advances and Current Liabilities
In the opinion of the management, current assets (including trade receivables), loans and advances and current liabilities (including trade payables) have the value at which these are stated in the Balance Sheet, unless otherwise stated, and adequate provisions for all known liabilities have been made and are not in excess of the amount reasonably required.
8. As per information available with the Company, there are no suppliers covered under "Micro, Small and Medium Enterprise Development Act, 2006". As a result, no interest provision/payment has been made by the Company to such creditors, if any, and no disclosure thereof is made in the accounts.
9. The amount due from related parties are good and hence no provision for doubtful debts in respect of dues from such related parties is required. No amount has been written back / written off during the year in respect of due to / from related parties.
10. The Company has a process whereby periodically all long term contracts (including derivative contracts) are assessed for material foreseeable losses. At the year end, the Company has reviewed and ensured that adequate provision as required under any law/accounting standards for material foreseeable losses on such long term contracts (including derivative contracts) has been made in the books of accounts.
11. The previous year's figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year. Bifurcation of assets and liabilities into Non-Current and Current for preparation of financial statements has been made by the management.
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