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SENSEX NIFTY India | Notes to Account > Mining & Minerals > Notes to Account from Ferro Alloys Corporation - BSE: 500141, NSE: FERROALLOY

Ferro Alloys Corporation

BSE: 500141|NSE: FERROALLOY|ISIN: INE912A01026|SECTOR: Mining & Minerals
May 18, 16:00
0.13 (2.4%)
VOLUME 71,480
Ferro Alloys Corporation is not traded in the last 30 days
Mar 15
Notes to Accounts Year End : Mar '16

1. Terms/rights attached to Equity Shares:

The Company has only one class of Equity Shares having a par value of '' 1/- per share. The Equity Shares have equal rights, preferences and restrictions which are in accordance with the provisions of law, in particular the Companies Act, 2013

2. Secured by hypothecation of stocks of raw-materials, finished products, book debts, and other receivables and by way of second charge on fixed assets of the Company by deposit of title deeds in respect of immovable properties and guaranteed by two Directors.

3. Disclosure pursuant to Accounting Standard - 15 ( Revised) “Employee Benefits” :

Defined Contribution Plan :

Amount of Rs, 282.82 (Previous Year Rs, 282.81) is recognized as expense and included in “Employee Benefits Expenses” in Note 24 of the Statement of Profit and Loss.

Defined Benefit Plan :

The company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to Gratuity on terms not less favorable than the provisions of the Payment of Gratuity Act, 1972. The scheme is funded with SBI Life Insurance in form of qualifying insurance policy.

The Company also extends benefit of compensated absences to the employees, whereby they are eligible to carry forward their entitlement of privilege leave for encashment. This is an unfunded plan.

The following tables summaries the components of net expense recognized in the Statement of Profit and Loss and Balance Sheet for the respective plans.

(a) Reconciliation of Opening and Closing balances of the present value of the Defined Benefit Obligation :

4. Corporate Social Responsibility Expenditure during the year amounts to Rs, 72.87 Lacs (Previous Year Rs, 53.13 Lacs) which has been debited under different heads of accounts in the Statement of Profit and Loss.

5. The information related to Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the company.

6. Contingent Liabilities and Commitments

(I) Contingent Liabilities :

(a) Claims against the Company not acknowledged as debts, since disputed Rs, 6,681.08 lacs (Previous Year Rs, 6,027.52 lacs). Amounts paid under protest Rs, 328.63 lacs (Previous Year Rs, 379.61 lacs) have been debited to Advance Account.

(b) Counter guarantees in favour of Consortium Banks in respect of their outstanding with Facor Steels Limited. Due to the nature of the liability, its financial impact is not ascertainable.

(II) Capital and other Commitments :

(a) Estimated amount of contracts on Capital Account remaining to be executed and not provided for in accounts Rs, 415.97 Lacs (Previous Year Rs, 599.91 lacs).

7. a) The Company has given corporate guarantee to Rural Electrification Corporation Ltd. (REC) in connection with granting a facility of Term Loan of Rs, 51,790 Lacs (Previous Year Rs, 51,790 Lacs) to Facor Power Ltd. (FPL). The Company has also pledged 19,80,59,930 shares (Previous Year 19,80,59,930 shares) with REC out of 19,80,59,930 shares (Previous Year 19,80,60,000 shares) held in FPL besides giving an undertaking to provide interest free unsecured subordinated loan or subscribe for equity / preference shares to FPL in case of cost overrun at any stage of the project.

b) The Company has given corporate guarantee to Central Bank of India of Rs, 3,000 Lacs (Previous Year Rs, 4,200 Lacs) for providing Working Capital Facilities to FPL.

8. Details of Loans given, Investments made and Guarantee given covered U/s 186(4) of the Companies Act, 2013 Loans given, Investments made and Guarantees given by the Company in respect of loans are given under the respective heads.

9. Previous Year''s figures have been re-grouped wherever necessary.

Source : Dion Global Solutions Limited
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