1) General Information
Ferro Alloys Corporation Limited (FACOR) was incorporated in 1955. The
Company is listed at Bombay Stock Exchange. It is one of the India''s
largest producers and exporters of Ferro Alloys, an essential
ingredient for manufacture of Steel and Stainless Steel. FACOR is also
engaged in Chrome Ore exploration, mining and beneficiation in the
state of Odisha. Chrome Ore is one of the main raw material for
producing Charge Chrome / High Carbon Ferro Chrome. Facor is having
about 84% stake in Facor Power Ltd. which is engaged in the generation
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 27, 2013.
3. (Note 30 of notes to fi nancial statements)
Disclosure pursuant to Accounting Standard - 15 ( Revised) Employee
Benefi ts :
Defi ned Contribution Plan :
Amount of Rs. 246.31 (Previous Year Rs. 255.40) is recognised as
expense and included in Employee Benefits Expenses in Note 25 of the
Statement of Profit and Loss.
Defi ned Benefi t 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 favourable 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
recongnised in the Statement of Profit and Loss and Balance Sheet for
the respective plans
4. (Note 37 of notes to fi nancial statements)
There are no Micro, Small and Medium Enterprises, to whom the company
owes dues, which are outstanding as at the Balance Sheet date. The
above information has been determined to the extent such parties have
been identified on the basis of information available with the company.
This has been relied upon by the auditors.
5. (Note 38 of notes to fi nancial statements)
Contingent Liabilities and Commitments
(I) Contingent Liabilities :
(a) Claims against the Company not acknowledged as debts, since
disputed Rs. 3,933.25 lacs (Previous Year Rs. 3,870.71 lacs). Amounts
paid under protest Rs. 282.83 lacs (Previous Year Rs. 270.63 lacs) have
been debited to Advance Account.
(b) Counter guarantees in favour of Consortium Banks in respect of
their outstandings 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. 243.51 Lacs (Previous
Year Rs. 76.12 lacs).
6. (Note 39 of notes to fi nancial statements)
a) The Company has given corporate guarantee to Rural Electrification
Corporation Ltd. (REC) in connection with granting a facility of Term
Loan of Rs. 39,768 Lacs (Previous Year Rs. 39,768 Lacs) to Facor Power
Ltd. (FPL). The Company has also pledged 8,68,24,299 shares (Previous
Year 4,88,24,299 shares) with REC out of 15,31,24,369 shares (Previous
Year 13,60,74,369 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. 4,200 Lacs (Previous Year Rs. 4,200 Lacs) and to State Bank of
Mysore of Rs. 300 Lacs (Previous Year Rs. 300 Lacs) for providing
Working Capital Facilities to FPL.
7. (Note 41 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 exists:
Facor Power Limited - Subsidiary Company. Facor Realty And
Infrastructure Limited - Subsidiary Company. Facor Energy Limited -
Subsidiary Company. B Enterprise, over which key management personnel
and their relatives exercise significant influence, with whom
transactions have taken place during the year :
1 Facor Alloys Limited 2 Facor Steels Limited
3 Rai Bahadur Shreeram And Company Private Limited 4 Shri Durgaprasad
Saraf Charitable Trust
5 Shreeram Shipping Services Pvt. Ltd. 6 Shreeram Durgaprasad Ores
7 Smt. Godavari Devi Saraf Janseva Trust 8 Saraf Enterprises Pvt. Ltd.
9 Saraf Bandhu Pvt. Ltd. C Key Management Personnel :
i) R.K. Saraf Chairman & Managing Director
ii) Manoj Saraf Managing Director
iii) Vineet Saraf (up to 31/01/2013) Joint Managing Director
iv) Vinod Saraf (w.e.f. 01/02/2013) Joint Managing Director
v) Rohit Saraf Joint Managing Director
vi) Ashish Saraf Joint Managing Director
D Relative of a Key Management Personnel : i) Mrs. Priti Saraf
8. (Note 42 of notes to financial statements)
Previous Year''s figures have been re-grouped wherever necessary.
9. (Note 43 of notes to financial statements)
The Ministry of Corporate Affairs, Government of India, vide Circular
No. 2 and 3 dated 8th February, 2011 and 21st February 20 11
respectively has granted a general exemption from compliance with
section 212 of the Companies Act, 1956, subject to the fulfillment of
conditions stipulated in the circular. The Company has satisfied the
conditions stipulated in the circular and hence is entitled to the
exemption. Necessary information relating to the subsidiaries has been
included in the Consolidated Financial Statements. The annual accounts
of the subsidiary companies are available for inspection by any
shareholder at the Registered office of the Company. The annual
accounts of the subsidiary companies are also available for inspection
at their respective registered offices.
10. Market value of quoted investment is Rs. 10.55 Lacs (Previous Year
Rs. 28.65 Lacs)