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Moneycontrol.com India | Notes to Account > Steel - Large > Notes to Account from Facor Steels - BSE: 532657, NSE: N.A
Facor Steels
BSE: 532657|ISIN: INE829G01011|SECTOR: Steel - Large
Apr 17, 15:26
-0.03 (-4.62%)
VOLUME 2,090
Facor Steels is not listed on NSE
Mar 12
Notes to Accounts Year End : Mar '13
1.  General Information
 Facor Steels Limited (The Company) is a Public Limited Company
 incorporated in India under the Companies Act, 1956. It is part of
 Worldwide reputed FACOR Group of Industries. The Company is listed at
 Bombay Stock Exchange . The Company, is one of the leading Producers of
 Carbon/Alloy steel/Stainless and special steel. The products are
 manufactured at its works in Nagpur and caters both domestic and
 international market.The products are meant for critical industrial
 2.  Abridged fi nancial statement
 The abridged financial statements have been prepared pursuant to Rule
 7A of the Companies (Central Government'' s) General Rules and Forms,
 1956 as per notification F. No. 17/51/2012-CL-V, dated May 31, 2012 and
 are based on the annual financial statements for the year ended March
 31, 2013 approved by the Board of Directors at their meeting held on
 May 29, 2013.
 3.  (Note 28 of notes to fi nancial statements)
 The slowing industrial activity and depressed market conditions had
 seriously affected the operations of the company. Considering the
 dwindling order position, the company has discussed with Workers union
 and reaches an agreement for consensus lock out effective from Jan'' 
 2013 and which is still in force. The company'' s application for
 Corporate Debt Restructure (CDR) has been approved by CDR - Empowered
 Group vide its Letter of Approval dated April 27, 2013. Company will
 restart its operation once the revised Non fund based limits are
 approved and released by the individual banks.
 4.  (Note 29 of notes to fi nancial statements)
 As per the Corporate Debt Restructure (CDR) package approved by
 Empowered Group of Corporate Debt Restructuring cell (CDR-EG) vide its
 letter of approval dated April 27, 2013 the amount of Recompense
 payable during this period from the cut off date i.e. January 1, 2013
 to March 31, 2013 is Rs.Nil. The cummulative Recompense amount payable
 from cut off date to end of package period i.e. March 31, 2023 Rs. 852
 5.  (Note 30 of notes to fi nancial statements)
 The Deferred Ta x Liability accounted in the earlier period considering
 the timing difference between the book value and tax basis of an assets
 created tax liability in future periods. But considering the present
 losses and accumulated depreciation, the company feels there is no need
 for continuation of deferred tax liability of Rs. 465.60 lakhs in the
 books and hence the same is reversed during the year under review.
 6.  (Note 31 of notes to fi nancial statements)
 No provision for current Income-Tax is considered necessary in view of
 the brought forward Business loss and unabsorbed depreciation. In view
 of current year book loss no provision for Minimum Alternate Ta x is
 7.  (Note 32 of notes to fi nancial statements)
 The Company has entered into a Power Delivery agreement with Wardha
 Power Company Limited (WPCL) for procurment of power for its
 manufacturing activity at the term set out in the said agreement for
 twenty five years from the commencement of commercial operation of
 power plant to be declared by WPCL. As per the terms of another related
 agreement with WPCL, the company has invested Rs. 440 lacs(Previous
 year Rs. 440 lacs) shown under Non current investments (Note 11 ) in
 Equity shares of 1945867 of Rs. 10/- each aggregating to Rs. 19458670-
 and 2454133 no of 0.01% redeemable class A preference shares
 aggregating to Rs. 24541330. Therefore said shares are/shall be under
 lien with WPCL.Upon the expiry of Power Delivery agreement. Class A
 Equity Shares and Class A Redeemable Preference Shares will be bought
 back by WPCL for total consideration of Rs. 1/-.
 8.  (Note 33 of notes to fi nancial statements)
 During the year Company has issued 778000 (nos.)[Previous year
 1000000(nos.)] 5% Redeemable Cumulative Preference Shares of Rs.  100/-
 each to Promoter group entities against Inter Corporate Deposit worth
 Rs. 778 lacs (Previous year Rs.1000 lacs).
 9.  (Note 34 of notes to fi nancial statements)
 Maharashtra Electricity Regulatory Commission (MERC) vide its order
 dated 27th April, 2007 has directed Maharashtra State Electricity
 Distribution company Limited (MSEDCL) to refund, Regulatory Liability
 Charges (RLC)collected by it during the period commencing December 2003
 to September 2006, to selected consumer category within which the
 company gets covered. In the Financial year 2010-11 company has
 recognised refund of Rs.41924123/- of which Rs. 8210503/-(previous year
 18892046/-) is outstanding as on 31.03.2013 and the same is grouped
 under other current assets.
 10.  (Note 35 of notes to fi nancial statements)
 Short term loans and advances includes Rs. 75.58 lacs(previous year
 Rs.75.58) towards advance paid against supply of scrap by overseas
 supplier against which company has initiated action for recovery
 towards quality dispute.
 11.  (Note 40 of notes to fi nancial statements)
 Segment Information :
 The Management Information System of the Company identifies and
 monitors Steel Products as the business segment. The Company is managed
 organisationally as a single unit. In the opinion of the management,
 the Company is primarily engaged in the business of Steel Product. As
 the basic nature of these activities are governed by the same set of
 risk and return, these constitute and are grouped as single segment as
 per Accounting Standard (AS) 17 dealing with segment reporting issued
 by ICAI.
 12.  (Note 41 of notes to fi nancial statements) Contingent Liabilities
 and Commitments :
 (I) Contingent Liabilities :
 (a) Estimated amount of contracts on Capital Account & other
 Commitments remaining to be executed and not provided for in accounts
 Rs.15.25 lacs (Previous Year Rs.15.25 lacs).
 (b) Claims against the Company not acknowledged as debts, since
 disputed Rs.249.29 lacs (Previous Year Rs.249.29 lacs). Amounts already
 paid under protest Rs. 33.21lacs (Previous year Rs. 33.21 lacs) have
 been debited to Advance Account.
 13.  (Note 42 of notes to fi nancial statements) Related Party
 Disclosure:- I List of related parties:-
 A Name and nature of relationship with the related party where control
 Vidarbha Iron and Steel Corporation Limited (VISCO)- Associates
 B Enterprise, over which key management personnel and their relatives
 exercise significant influence, with whom transactions have taken place
 during the year :
 14. (Note 43 of notes to financial statements)
 Previous year'' s figures have been re-grouped wherever necessary.
Source : Dion Global Solutions Limited
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