1. Contingent liabilities not provided for in respect of:
(Rs. in Crores)
As on As on
2012 31st March 2011
i Letter of Credits outstanding
for purchase of materials. 18.67 50.92
ii Outstanding Bank Guarantees and
Counter / Corporate Guarantees 2,458.56 1,550.55
given on behalf of subsidiary companies.
iii Capital commitments 58.73 137.17
iv Bills discounted under letter
of credit with banks 85.04 32.41
v Duty on account of Advance
Authorisation against Export obligation. 0.73 1.03
vi On Balance Sheet date, the disputed
amount involved in four income-tax 8.29 4.42
demands( Previous Year - three) under
appeal. The management is of view
that the outcome of the appeal would be
favourable to the company, hence
no provision has been made against these
vii A demand raised by the Service
tax department, against which company 0.06 0.06
has filed an appeal to the jurisdiction
viii A demand raised by the Custom
department, against which company has 2.55 –
filed an appeal to the jurisdiction
2. Green earth Resources & Projects Limited (formerly known as Austral
Coke & Projects Limited) had filed a defamation suit in Hon''ble Bombay
High Court against the Company for Rs.600 Crores. The Company had also
filed Civil Suit in Hon''ble Calcutta High Court against Austral Coke &
Projects Limited, all its Directors, its merchant bankers and Auditors
and others claiming for loss of damages worth Rs.4761 crores.
Management is confident that outcome of the defamation suit filed by
the Austral Coke & Projects Limited would be in favour of the company.
3. On 16 October 2007, the company and Armada Singapore Pte Ltd
(Armada) entered into five year charter party agreement which
provided, inter alia, for Armada to supply vessels to ship the
company''s tonnage, namely coal or coking coal from various destinations
worldwide. Between late 2008 and early 2009, following the worldwide
economic crisis, Armada experienced serious financial losses resulting
into a large number of third party defaults under its shipping
agreements. As a result, during the course of 2009 Armada entered into
Judicial Management, a Singaporean insolvency regime. As a result of
Armada''s insolvency, the Company refused to make further nominations
since there was no assurance or security for Armada''s performance for
the balance period under the agreement.
Armada later on filed its claim submission in an arbitration proceeding
against the company before Arbitration Tribunal in London. Although
there was no specific clause on jurisdiction or applicable law in the
agreement and also the constitution of Arbitration Tribunal was not in
accordance with the agreement and even after the company''s repetitive
challenges to aforesaid, the Tribunal passed an order in favour of
Armada assessing the liability of the company towards Armada as
Rs.42.85 Crores (including interest of Rs.3.42 Crores).
Aggrieved by the aforesaid order the company has filed a civil suit
against Armada with the Hon''ble High Court at Calcutta claiming for
damages for an amount of Rs 144 crores and cancellation of the
aforesaid order being void and restraining Armada from giving any
effect to the order passed by the Tribunal. Subsequently, an order was
passed by the Hon''ble High Court at Calcutta restraining Armada to take
any further steps to enforce the award passed by the Tribunal in India.
The matter is presently sub judice before the Hon''ble High Court at
4 Related Party Disclosures as required by Accounting Standard (AS-18)
issued by the Institute of Chartered Accountants of India (ICAI), are
A. Particulars of the Related Parties:
i Gujarat NRE Limited
ii Huntervalley Coal (P) Ltd.
iii Manor Dealcom (P) Ltd.
i Gujarat NRE Coking Coal Ltd.
ii Gujarat NRE Wonga Pty. Ltd. (formerly known as Gujarat NRE FCGL Pty.
iii Wonga Coal Pty. Ltd.
iv Gujarat NRE Resources NL
v Gujarat NRE Coal (NSW) Pty. Ltd.
vi South Bulli Holdings Pty. Ltd.
vii Gujarat NRE Properties Pty. Ltd.
viii Gujarat NRE India Pty. Ltd.
i Bharat NRE Coke Ltd.
ii NRE Metcoke Ltd.
iii Bajrang Bali Coke Industries Ltd.
iv Surajbari Traders Pvt. Ltd.
v Dharwad Traders Pvt. Ltd.
vi Mandvi Traders Pvt. Ltd. vii Lunva Traders Pvt. Ltd.
Enterprises in which key management personnel have significant
i Gujarat NRE Mineral Resources Ltd.
ii Gujarat NRE Energy Resources Ltd.
iii Russell Vale Traders Pvt. Ltd. iv Bulli Coke Ltd.
Enterprise in which key management person is a trustee
i Girdharilal Arun Kumar Family Trust
5. a The indicators of impairment listed in paragraph 8 to 10 of
Accounting Standard (AS)- 28 Impairment of assets issued by ICAI have
been examined by the management and on such examination, it has been
found that none of the indicators are present in the case of the
Company''s assets . A formal estimate of the recoverable amount has not
been made, as there is no indication of a potential impairment loss.
b In the opinion of Board of Directors and to the best of their
knowledge and belief, the value on realization of Current Assets, Loans
and Advances in the ordinary course of business will not be less than
the amount at which they are stated in the Balance Sheet.
6. Exceptional items for the year ended 31st March, 2012 represents net
foreign exchange loss of Rs. 60.13 Crores due to unusual diminution in
the value of Rupee as against the US Dollar during the year.
7. There are no amounts due and outstanding to be credited to Investors
Education and Protection Fund as at 31st March 2012
8. Remittance in Foreign Currency on account of Dividend:
The Company has paid dividend in respect of shares held by Non-resident
on repatriation basis. This inter-alia includes portfolio investment
and direct investment, where the amount is also credited to
Non-Resident External Account (NRE A/c). The exact amount of dividend
remitted in foreign currency cannot be ascertained. The total amount
remitted in this respect is given herein below: