| 1. Term Loan from Lakshmi Vilas Bank Ltd. is secured by
* Exclusive charge on hypothecation on stocks, book-debts & other
current assets of the Company, both present and future.
* Mortgage of residential property situated at Kolkata owned by
Mrs.Sharda Bajoria, a relative of Mr. Dinesh Chandra Bajoria, Chairman
& Managing Director of the Company.
* Personal guarantee of Mr.Dinesh Chandra Bajoria, Chairman & Managing
Director of the Company.
* Personal guarantee of Mrs.Sharda Bajoria, a relative of Mr.Dinesh
Chandra Bajoria, Chairman & Managing Director of the Company.
2. RELATED PARTY DISCLOSURES
As per Accounting Standard (AS-18) issued by the Institute of Chartered
Accountants of India (ICAI), are given below: 25.1 : List of Related
parties where control exists and related parties with whom transactions
have taken place
Name of Related party Relationship
Happy Mining Pty Ltd. Subsidiary
Avondale Resources Pty Ltd. Ceased to be Sub-subsidiary during the
period
Mr. Dinesh Chandra Bajoria -
Chairman & Managing Diretor Key management personnel
Mrs. Sharda Bajoria Relative of key management personnel
Mrs.Kanta Bajoria Relative of key management personnel
Aparna Polyflex Pvt Ltd. Enterprises in which key management
personnel has significant influence
Ruchika Tradelink Pvt Ltd. Enterprises in which key management
personnel has significant influence
Arvind Industries Enterprises in which key management
personnel has significant influence
3 : CONTINGENT LIABILITIES AND COMMITMENTS
Disputed dues involved in two income tax demands under appeal - Rs.2.70
lacs (Previous year - Rs.2.70 lacs). The management is of view that
the outcome of the appeal would be favourable to the company, hence no
provision has been made against these income tax demands.
4 : Since the Company has few employees, the accrued liability
for employees' retirement benefits viz. gratuity
and leave encashment at the end of the financial period has been
determined by the company on a rational basis. Accrued provision has
been provided in the books of accounts.
5 : During the period, the Overdue Bill Discounting & Letter of Credit
facilities availed from Lakshmi Vilas Bank has been restructured into
Term Loan facility of Rs. 15 Crores, involving a waiver of interest
aggregating to Rs. 66.26 Lacs for the period from 1st April, 2014 to
30th September, 2014.
6 : During the period, the Company has revised depreciation rate on
certain fixed assets as per the useful life specified in the Companies
Act, 2013 or as re-assessed by the Company. Based on current estimates,
Depreciation of Rs. 0.51 Lacs on account of assets whose useful life has
already been exhausted as on 1st October, 2014 has been adjusted to
Reserves. Had there not been any change in the useful life of assets,
depreciation for the year ended March, 2015 would have been lower by Rs.
0.03 Lacs.
7 : Sales include 46,433 MT of Coal physically found in stock
on its verification carried out by the management during the period.
8 : The indicators of impairment listed in paragraph 8 to 10 of
Accounting Standard (AS-28) "Impairment of Assets" issued by the ICAI
have been examined by the management and on such examination it has been
found that none of the indicators are present in case of the company's
assets.A formal estimate of the recoverable amount has not been made, as
there is no indication of a potential impairment loss.
9 : In the opinion of the Board of Directors and to the best of their
knowledge and belief, the value on realisation of current assets, loans
and advances in the ordinary course of business will not be less than
the amount at which they are stated in the Balance Sheet.
10 : There are no amounts due and outstanding to be credited to
Investors Education and Protection Fund as at 31st March, 2015.
11 : The Company is primarily engaged in the business of trading in coal
and coke within India. Hence there is no reportable segment as envisaged
in Accounting Standard (AS-27) issued by the Institute of Chartered
Accountants of India.
12 : The current financial year of the Company comprises of six months
period from 1st October, 2014 to 31st March, 2015, in order to comply
with the provisions of Section 2(41) of the Companies Act, 2013. In view
of this the figures for the current financial period are as such not
comparable with the figures for previous financial year.
13 : Previous year's figures have been regrouped / reclassified
wherever found necessary.
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