1. Rights, Preferences and Restrictions attached to Shares:
a) Equity shares
The Company has issued Equity Shares having a par value of Rs, 10. Each
holder of equity shares is entitled to one vote per share. The
dividend proposed by the Board of Directors, if any, is subject to the
approval of shareholders in Annual General Meeting. In the event of
liquidation of the Company the holder of the equity shares will be
entitled to receive remaining assets of the Company offer settlement of
all preferential amounts, The distribution will be in proportion to the
number of equity shares held by the equity shareholders.
The rights attached to 30 lakh equity shares out of warrant conversion
has been restrained by the Delhi High Court till disposal of the
matter,
b) Preference Shares
The Company has issued 2 crores 10 % Cumulative Non (avertable
Redeemable Preference Shores of Rs,10 each at par amounting to Rs,2Q
crores or by private placement redeemable on the expiry of 12 years
from the date of Issue. The shares were allotted to Manet Ispat &
Energy Limited amounting 19,51 crores and Torsteel Services Private
Limited (a relative party) amounting to Rs,49 lakhs. These shares are
not listed,
2. a) Money received against Share Warrants
Equity shore warrants amounting to f 601.50 lacs represent 10 %
consideration received from a party against share warrants issued an
preferential basis during the year 2007-08. The issue relating to
conversion of share warrants to equity has been referred to Securities
Appellate Tribunal (SAT) and the decision is awaited.
3. Purim the year State Bank of Bikoner and Jaipur (SBB)) have
assigned the financial exposure taken in the Company by transfer of
debts, rights and obligations to Edelweiss Asset Reconstruction Company
Limited (EARQ vide their letter dated 24.07.2014
4. All the lenders of Term Loan except IREDA viz, SBI, BQI. PNB & EARC
hove issued loan recall notice to the company under Section 13(2) of
the Securitization and Reconstruction of Financial Assets and
Enforcement of Security Interest Act 2002 during the year. Consequently
term loan repayments due and payable to SBF, BOI & PNB have been shown
undercurrent maturity.
5. Term loans from banks and other parties are secured / to be secured
by joint equitable mortgage by deposit of title deed of immovable
properties and hypothecation of all moveable assets of the Company both
present and future (save and except book debts) ranking pan-passu
subject to prior charge created in favor of the Company's bankers far
securing working capital finance on stock of raw material, finished
goods etc. and also by second charge on current assets. Further, the
above term loans have been guaranteed by the personal guarantee of the
Vice Chairman & Managing Director if the Company.
6. interest and maturity profile on Term Loans are set out below:
Interest an term loan from banks and other parties carry interest @ 1
5.75% to 16.75 % and 10% to 12.89 % respectively.
7. Disclosure as reburied under AS 29
Provision for Entry Tax, Sales To* and Interest on Bonk Borrowings have
been recognized In the financial statements considering the following:
i) The Company has a present obligation as a result of past event
ii) It is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation: and
iii) Are liableness tamale can be made of the amount of the obligation.
8. During the year State Bank of Bikaner and Japura (SBBJ) have
assigned the financial exposure taken in the Company by transfer of
debts, rights and obligations to Edelweiss Asset Reconstruction Company
Limited (EARQ vide their letter dated 20.07.2014.
9. All the lenders of working capital to the Company viz. SBI, BOI. &
EARC have issued loan recall notice to the Company under Section
10.(2) of the Securitization and Reconstruction of Financial Assets and
Enforcement of Security Interest Act, 2002 during the year.
11. Gash Credit from banks are sanctioned on a consortium basis by
hypothecation of raw materials, finished goods, stores and spares, hook
debts etc, pari-passu secured charge on immovable properties and other
fixed assets and also guaranteed by personal guarantee of vice-
chairman of the Company (Dr. P. K. Mohanty). The above cash credit is
repayable on demand and carries interest @15.75 % to 17.15 %.
* Based on and to the extent of information obtained from suppliers
regarding their status as Micro, Small or Medium enterprises under the
Micro, Small and Medium Enterprises Development Act, 2006, there are no
amounts due to them as at the end of the year.
12. Loons and advances to related parties includes:
Advances to Bilati (Orissa) Ltd (BOL) - doubtful Rs, 1,927.51 Iocs (Rs,
1,927.51 lacs)
As the prospect of reviving of Bilati (Orissa) Ltd. (which is under
BIFR). appears to be uncertain, provision has been made for advances
due from Bilati (Orissa) Ltd.
13. Lang Term Advances under doubtful Includes claim receivable
amounting to of 119.QC lacs from Mahanadl Coalfield Ltd. Mahanadl
Coalfield Ltd. encased the bonk guarantee given to them for purchasing
of coal under the jells supply agreement The Company has contested such
encashment of bank guarantee and the matter is subjudice.
14. Advqnce to Bamra Iron & Steel Company (India) Limited amounting to
Rs, 8,525.770 has been written off as the name of the said company has
been struck off from the Register of Companies as per Order of the
Registrar of Companies, Odisha.
b) Defined Benefit Plans :
i) Compensated Absences: Liability for Compensated Absences is provided
on the basis of valuation, as at the Balance Sheet date, carried out by
an independent actuary. The actuarial valuation method used for
measuring the liability is, the Projected Unit Credit method. Under
this method, the Defined Benefit Obligation is calculated taking into
account pattern of avail meat of leave while in service and qualifying
salary and the date of a ailment of leave. In respect of encashment of
leave, the Defined Benefit obligation is calculated taking into account
in qualifying salary projected up to the assumed date of encashment
15. Subsidiary Company
Bamra Iron h. Steel Company (India) Limited, is a wholly owned
subsidiary has been struck off from the Registrar of Companies to non
Operation by the order of Registrar of Companies Desha. Consequently
the provisions relating to subsidiary Companies are not applicable for
the reporting period.
In computing diluted corning per share equity share warrants (10%
consideration of 35,00,000 equity shares) allotted an preferential
basis has been excluded as the conversion of warrants into equity
shares is under sub-juice. 35, As the Company's business activity
falls within a single primary business segment, viz. "Iron & Steel" the
disclosure requirement of Accounting
Standard 17-Segment reporting are not applicable. 36- Related Party d
Indosuez under Accounting Standard -1B
A. Name of related party and relationship :
I. Subsidiary : Bamra Iron and Steel Company (India) Limited,
II. Associates : Torsteel Research Foundation In India
TRFl Investment Pvt. Ltd.
OSIL-TRFI Community Services
OSIL-TRFI Community Services Trust
Bilati (Orissa) Limited
Torsteel Services Pvt Ltd.
Keonjhar Infrastructure Development Company Limited HI. Key Management
Personnel : Dr. P. K. Mohanty
Mr. Munir Mohanty
16. Exceptional item represent written off advance Rs. 85.26 lacs end
investment Rs. 74.99 lacs in the subsidiary company Bamra Iron fit
Steel Company (India) Limited,
17. All the amounts in Rupees have been rounded off to lacs with
thousands in decimals.
18. Previous year's figures
Previous year figures have been regrouped / reclassified wherever
necessary to correspond with the current year's classification /
disclosure.
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