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Ferro Alloys Corporation
BSE: 500141|NSE: FERROALLOY|ISIN: INE912A01026|SECTOR: Mining/Minerals
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« Mar 12
Notes to Accounts Year End : Mar '13
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
 of power.
 
 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
 Pvt. Ltd.
 
 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)
Source : Dion Global Solutions Limited
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