1. Disclosure pursuant to Accounting Standard - 15 ( Revised)
Defined Contribution Plan :
Amount of Rs. 245.23 (Previous Year Rs. 246.31) is recognised as
expense and included in Employee Benefits Expenses in Note 25 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 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.
2. 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.
3. Contingent Liabilities and Commitments
(I) Contingent Liabilities :
(a) Claims against the Company not acknowledged as debts, since
disputed Rs. 4,848.54 lacs (Previous Year Rs. 3,933.25 lacs). Amounts
paid under protest Rs. 352.83 lacs (Previous Year Rs. 282.83 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. 848.49 Lacs (Previous
Year Rs. 243.51 lacs).
4. (a) The Company has given corporate guarantee to Rural
Electrification Corporation Ltd. (REC) in connection with granting a
Term Loan of Rs. 46,704 Lacs (Previous Year Rs. 39,768 Lacs) to Facor
Power Ltd. (FPL). The Company has also pledged 15,10,74,299 shares
(Previous Year 8,68,24,299 shares) with REC out of 17,81,00,000 shares
(Previous Year 15,31,24,369 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) for providing Working
Capital Facilities to FPL.
5. Related Party Disclosure:-
I. List of related parties:-
A. Name and nature of relationship with the related party where
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.)
9. Saraf Bandhu Pvt. Ltd.
C. Key Management Personnel :
i) R.K. Saraf Chairman & Managing Director
ii) Manoj Saraf Managing Director
iii) Vinod Saraf Joint Managing Director
iv) Rohit Saraf Joint Managing Director
v) Ashish Saraf Joint Managing Director
D. Relative of a Key Management Personnel :
i) Mrs. Priti Saraf
6. Previous Year''s figures have been re-grouped wherever necessary.
7. The Ministry of Corporate Affairs, Government of India, vide
Circular No. 2 and 3 dated 8th February, 2011 and 21st February 2011
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.