1 Corporate information
The Company is in the business of manufacture and sale of Calcined
Petroleum Coke in its manufacturing facilities at Goa, Paradeep and
As at As at
2 Contingent Liabilities : 31 March 31 March
(Claims against the Company not
acknowledged as debts) 2012 2011
i) Disallowance of Cenvat Credit
and Educational Cess on purchase of 90.19 90.19
ii) Income tax demands under appeal. 1,396.69 -
iii) The Company''s appeal to the High Court of Bombay at Goa against
the order of the Income Tax Appellate Tribunal which had confirmed the
disallowance of the deduction under section 80HHC of the Income Tax
Act, 1961 for Assessment Years 1993-94 to 2004-05 was allowed by the
High Court vide its order dated 21.10.2010. The disputed amount of tax
and interest paid amounting to Rs.1,303.71 lacs (after adjusting the
refund of Rs.114.62 lacs received in respect of six years) is included
under Other Current Assets. The income tax department has filed a
Special Leave petition before the Supreme Court praying for ex-parte ;
stay of the aforementioned Order of the High Court. The petition is yet
to be admitted. The company has been legally advised that since the
issue relates to a question of fact and not of law a favourable
decision can be reasonably expected within the course of the year.
The above amounts are based on the notice of demand or the assessment
orders or notification by the relevant authorities, as the case may be,
and the Company is contesting these claims with the respective
Outflows, if any, arising out of these claims would depend on the
outcome of the decisions of the appellate authorities and the
Company''s rights for future appeals before the Judiciary. No
reimbursements are expected.
3 Excise duty on sales for the year has been disclosed as reduction
from Revenue from operations. Excise duty relating to the difference
between the closing stock and the opening stock of Finished goods has
been included in Note - 26 Other Expenses
4 Dues to Micro and Small Enterprises have been determined to the
extent such parties have been identified on the basis of information
collected by the Management. This has been relied upon by the auditors.
Actuarial valuation relating to interest rate guarantee on exempt
provident fund has resulted in an additional charge of Rs. 28.65 lacs
during the year.
b) Defined contribution plans:
A sum of Rs. 46.31 lacs (Previous year Rs. 66.08 lacs) has been charged to
the statement of profit and loss in respect of Company''s contribution
to superannuation fund and provident and pension fund for Paradeep and
Bilaspur unit employees.
5 Segment reporting:
The Company is engaged in manufacture and sale (both domestic and
export) of Calcined Petroleum Coke which constitutes single business
segment. As per management''s perspective, the risks and returns from
its sales do not ; materially vary geographically. Accordingly there
are no other business / geographical segments to be reported under
Accounting Standard (AS) 17.
6 Disclosures in respect of Related Parties pursuant to Accounting
Standard (AS) 18. i) List of related parties:
Names of the related parties and nature of relationship a Holding
V. S. Dempo Holdings Pvt. Ltd b i Wholly Owned Subsidiary Company:
I GCL Global Resources SGP Pte Ltd, Singapore c Fellow Subsidiaries
(with whom transactions have taken place during the year):
Dempo Industries Pvt. Ltd.
: Marmagoa Shipping & Stevedoring Co. Pvt. Ltd.
Dempo Travels Pvt. Ltd. i Aparant Iron & Steel Pvt. Ltd.
; Hindustan Foods Ltd Dempo Sports Club Pvt. Ltd : d Individual who is
able to exercise significant influence:
Mr. Shrinivas V. Dempo (Chairman) e Enterprises over which Mr Shrinivas
V. Dempo is able to exercise significant influence:
Motown Investments Pvt. Ltd.
Devashri Nirman ; Dempo Charities Trust
Vasantrao Dempo Education and Research Foundation f Key Management
Mr. Jagmohan J. Chhabra (Executive Director)
7 The Company together with its wholly owned subsidiary GCL
Global Resources SGP Pte Ltd Singapore has entered into a Joint
Venture Agreement with Sinoway International Holdings Ltd, Hong Kong to
form a Joint Venture Company (the JV Company) in Hong Kong with
the intention to set up a wholly owned subsidiary in the Peoples
Republic of China for the manufacture of 2,80,000 MT per annum of
Calcined Petroleum Coke. The Joint Venture Partners have mutually
agreed to terminate the joint venture Agreement due to practical
difficulties in complying with the regulatory requirements in China.
8 GCL Global Resources SGP Pte Limited became a subsidiary of the
Company on 05.08.2009 with an investment of Rs. 0.05 lacs in 100 equity
shares of USD 1 each. However the subsidiary has not commenced any
9 ; These financial statements have been prepared in the format
prescribed by the Revised Schedule VI to the ; Companies Act, 1956 as
notified by the Government of India on 28th February 2011.This has
significantly impacted the disclosure and presentation made in the
financial statements. Previous year''s figures have been recast and
reclassified wherever necessary, to correspond with the current