Kamdhenu Ispat

1) Contingent liabilities:                    2008       2009
 
 (a) Claims against the company 
 not acknowledged as debts
 a) Central Excise & Service Tax              123.65     111.27
 b) Income Tax 20.90 20.90 
 c) Sales Tax & Central Sales Tax              97.64      81.74
 
 Total                                        242.19     213.91
 
 b) Estimated amount of contracts remaining to be executed on capital
 account and not provided for Rs. 8.89 Lacs (Previous year Rs. 814 Lacs)
 net of advances.
 
 2) Some of the balances of sundry debtors, creditors, advances and
 unsecured loans as on 31.03.2009 are subject to confirmation. Sundry
 Debtors, outstanding for more than six months includes Rs. 21.17 lacs
 and others includes Rs. 113.88 Lacs on which legal cases have been
 initiated for recovery by the company. The management of the company is
 hopeful of favourable decision on such legal cases, hence no provision
 for bad and doubtful debts have been considered.
 
 3) In the opinion of the management, currents assets, loans & advances
 have a value on realisation in the ordinary course of busines at least
 equal to the amount at which thay are stated in the Balance Sheet
 
 4) The Company has already initiated the process of obtaining copies of
 memorandum filed with the concerned authonty by entities falling under
 the MSt-IED Act 2006, The Company has not received copies of the said
 memorandum as on date from any such entity. In the absence of
 information, the company is unable to identify units and as well as
 furnish details required under the said Act and the Companies Act.
 
 5) During the year, the company has forfeited a sum of Rs. 181.29 Lacs,
 being 10% of amount received against allotment of 2200000 and 2788934
 preferential warrants convertible into equity shares. The same were
 alloted pursuant to approval of the member of the company in the EGMs
 held on 14.05.2007 and 03.03.2008. The sum so forfeited amounting to
 Rs. 181.29 Lacs, have been transferred to Capital Reserve,
 
 6) The company does not have any fund for gratuity and leave encashment
 liability and same is accounted for as provision.
 
 7) Remuneration & Perquisites paid/payable to ManagingAvhole time
 directors dunng the year was Rs, 148.68 Lacs (Previous Year Rs.64.60
 lacs).
 
 8) During the year ended 31 si March 2009. the company has commenced
 commercial production of paint division.  Accordingly, capital work in
 progress amounting to Rs.986.55 Lacs relating to such paint division
 upto 31.03,2008 have been capitalized m respectrve heads of fixed
 assets. Additions to fixed assets includes Pre-operative Expenses
 amounting to Rs 131.32 lacs of Paint project allocated proportionately
 to the value of respective fixed assets as on the date of commencement
 of commercial production of paint division.
 
 9) Provision for tax for current year amounting to Rs.26.77 Lacs have
 been made U/s 115JBof Income TaxAd. 1961. Tax credit available U/s
 115JAA of Income Tax Act. 1961 amounting to Rs.26.77 Lacs have been
 taken as MAT Credit Entitlemant Account by giving equivalent credit
 to profit & loss account.
 
 10) During the year ended 31 st March,2009. the company was subjected
 to search by Income Tax and Excise Authorities.  Certain documents /
 records were seized upon such search and have not been released till
 the date of this Balance Sheet The income Tax & Excise Authorities have
 not yet raised any demand on the company. Income Tax & Excise Duty
 liability, if any, upon conclusion of search proceedings shall be
 provided for in the year in which assessment by concerned authorities
 are completed. Pending assessment by Excise Authority, the company has
 deposited a sum of Rs. 100.00 Lacs under protest , which has been shown
 as Excise Duty Deposited under Protest in Loans & Advances.
 
 11) The Cash flow Statement has been prepared in accordance with the
 requirements of Accounting Standard-3 Cash Row Statement issued by
 ICAI.
 
 12) Calculation of EPS as per Accounting Standard-20 Earning Per
 Share issued by ICAI:
 
 13) Sales includes Rs.30.70 Lacs (Previous Year Rs.77.47 Lacs) of
 others stores sold being not usable and Rs.30.34 Lacs being TMT bars
 (Previous Year Rs. 257.62 Lacs) used for captive consumption in Paint
 Project.
 
 14) As per Accounting Standard-17 Segment Reporting issued by ICAI,
 the Company has identified three reportable business segments viz.
 Steel. Power & Paints and following policies have been adopted for the
 segment reporting.
 
 a) Revenue and Expenses have been identified to a segment on the basis
 of relationship to operating activities of the segment. Revenue and
 Expenses which could not be allocable to a specific segment are being
 disclosed separately as un- allocable.
 
 b) Segment Assets and Segment Liabilities represent assets and
 liabilities in respective segment. Investments, tax related assets,
 other assets and liabilities that cannot be allocated to a segment on a
 reasonable basis have been disclosed as Un- allocable
 
 15) As per Accounting Standard-18 Related Farty Disclosures issued by
 The Institute of Chartered Accountants of India, disclosure of
 transactions with the related parties as defined in the Accounting
 Standard are given below: Description of relationship Key Management
 Personnel Sh. Satish Kumar Agarwal, Chairman & Managing Director
 Sh. Sunil Kumar Agarwal, Whole Time Director Sh. Saurabh Agarwal, Whole
 Time Director Sh. Sachm Agarwal, Whole Time Director
 
 Relatives of Key Management Personnel Smt. Radha Agarwal W/o Sh.Satish
 Kumar Agarwal
 
 Smt. Phyanka Agarwal W/o Sh.Saurabh Agarwal Smt. Shivani Agarwal W/o
 Sh.Sachin Agarwal Smt Shafali Agarwal W/o Late Shailendra Kumar Agarwal
 Sh. Ayush Agarwal S/o Late Shailender Kumar Agarwal Ms. Shreya Agarwal
 D/o Late Shailender Kumar Agarwal Smt. Santa Agarwal W/o Sh.Sunil Kumar
 Agarwal Ms. Ishita Agarwal D/o Sural Kumar Agarwal Ms. Somya Agarwal
 D/o Sural Kumar Agarwal Ms. 5hatul Agarwal D/o Sural Kumar Agarwal
 
 Related Companies and other Juristic Entities Kamdhenu Overseas Limited
 
 Kamdhenu Cement Industnes Limited Satish Kumar Agarwal & Sons (HUF)
 Sunil Kumar Agarwal & Sons (HUF) Shailender Kumar Agarwal & Sons (HUF)
 
 16) As per Accounting Standard-28 Impairment of Assets issued by
 ICAI. there are no indication ol overall impairment in assets and the
 need to make an estimation of recoverable amount does not arise.
 
 17) Additional information pursuant to provisions of paragraph 3 & 4 of
 part II of Schedule VI of the Companies Act. 1956.
 
 * Certified by the management and being a technical matter relied upon
 by the Auditors.
 
 # Actual production of Bars includes 3443 MT (Previous Year 1379 MT) of
 Waste & Scrap and Actual production of Ingot includes 911 MT (Previous
 Year 1030 MT) of Runner & Risers.
 
 Note : 1. Quantity of Turnover of Bars & Waste & scarp included captive
 consumption qty 71 MT (Previous Year 734 MT) of Bars in paint project
 and qty 2029 MT (Previous fear 526 MT ) of Waste & Scarps in furnace.
 2. Quantity of Turnover of Ingot & Runner/Riser includes captive
 consumption of Ingot and Runner & Riser 14365 MT and 899 MT (Previous
 year 15940 MT & 876 MT) respectively.
 
 Note : I.  Qty of M.S.ingot Consumption includes 14365 MT (Previous
 year 15940 MT) used as Captive Consumption
 
 2.  Qty of MS ScrapySponge Consumption includes 899 MT(PrevKXJS Year
 876 MT) of Runner & Riser and 2029 MT (Previous Year 526 MT) of Waste &
 Scrap used as Captive Consumption.
 
 20) The previous years figures have been reworked, regrouped,
 rearranged and reclassified wherever necessary. Accordingly.
 amountsand other disclosure forthe preceding year are included as an
 integral pan ofthe current year financial statements and are to be read
 in relation to the amounts and other disclosures relating to the
 current year.