1. Estimated amount of contracts remaining to be executed (Net of
advances) on capital account and not provided for Rs. 55,214,228
(Previous yearRs. 201,880,519).
2. Contingent Liabilities not provided for in respect of:
a) Excise Duty Matters Pending Rs. 13,215,155 (Previous year Rs.
13,215,155) plus Interest and Penalty if any.
b) Jharkhand Entry Tax Matters Pending Rs. 8,175,000 (Previous yearRs.
c) Electricity Matters with The Durgapur Projects Limited Pending Rs.
9,793,882 (Previous year Rs. 9,793,882)
3. Travelling expenses include Directors Travelling Rs. 66,925 (Previous
year Rs. 632,253).
4. Employee Benefits : Disclosure pursuant to Accounting Standard -15
(Revised 2005). The Employee''s Gratuity Scheme is unfunded and the
Actuarial Valuation of Gratuity Scheme is prepared as at 31st March,
2011 under revised AS -15 norms and accordingly Rs. 1,188,775 has been
provided in the books in the current financial year.
5. Mat Credit Entitlement amounting to Rs. 49,538,937 includes Rs.
1,37,72,489 on account of taxes paid in earlier Assessment Years under
section 115JB of the Income Tax Act, being Rs. 5,204,586 for the AY.
2006-2007, Rs. 5,389,658 for the A.Y 2007- 2008, Rs. 3,178,245 for the A.Y.
2010-2011 which are eligible for credit under Section 115JAA of the
Income Tax Act, from the future Financial Year Tax Liabilities of the
Company and the same has been accounted for this year though part of
the credit had accrued in earlier Accounting Years.
6. i) Based on the risks and returns associated with the business
operations and in terms of Accounting Standard -17, the Company is
predominantly engaged in a single reportable segment of Iron and Steel
during the year. The risks and returns of manufacturing of Pig Iron and
trading of its Raw Material, Coking Coal & Iron Ore Fines, are directly
associated with Iron and Steel business and hence treated as a single
reportable business segment. The management is of the view that the
disclosure already provided in the financial statements relating with
the quantitative details of manufacturing and trading activities under
paragraph 19(B) & (C) of Notes to Accounts, are in compliance with the
requirement of Accounting Standard -17. The other activities for Cement
manufacturing is less than 10% of Total Revenue and hence there are no
additional disclosures to be made under Accounting Standard -17, other
than those already provided in the financial statements.
7. Depreciation on Coke Oven Plant has not been provided during the
year, since the Plant was not in operation due to commercial reason.
The total unprovoked depreciation is Rs. 18,880,168 which has not been
charged in the Profit and Loss Account in the current year as well as
in the earlier years since 30th September, 2005.
8. During the year the company has spent a sum of Rs. 36,262,509 towards
relining of the Mini Blast Furnace which inter- alia includes
replacement of the Refractory’s & few other major component which is
quite usual in the manufacturing process of a Pig Iron Plant at a
interval of every 5-6 years. Although the relining work does not result
in the enhancement of the installed capacity of the Plant but is
essential to retain the depleting production capacity of the plant and
therefore the same has been treated as Capital Expenditure. On the
basis of the technical opinion and the past experience, the management
has thought it prudent to amortize 95% value of the Capital Expenditure
over a period of 5 years from the date of completion of relining work.
9. All related expenses of project, which is under implementation, are
treated as Capital Work-in-progress. Administrative Expenses to said
project as identified by the management, have been transferred to
Pre-Operative Expenses Account.
10. Salary, Wages, Allowances and Bonus and Contribution to Provident
Fund and ESIC includes following remuneration to the Managing Director
and Executive Director.
11. The outstanding balances of Contractors, Suppliers, Debtors,
Creditors and other are subject to confirmation and reconciliation.
12. Unsecured Loan consists of Rs. 1,340,711,453 (Previous year Rs.
901,269,002) from Banks against Letter of Credit, and advances for
Supplies and Rs. 307,946,756 (Previous year Rs. 6,487,018) from Body
13. Excise Duty and Cess on Stock represent differential Excise Duty
and Cess on Opening and Closing Stock of Finished Goods.
14. The Foundry Division of the Durgapur Plant was licensed on short
term basis for 11 months to M/s. Kajaria Iron & Steel Company Private
Limited with effect from 1st August, 2010 on a Lease Rental of Rs.
300,000 per month.
15. The Company has allotted on 31st March, 2011, 14,550,000 of 7%
Redeemable Non-Cumulative Preference Shares of Rs. 10 each, fully paid
up, which is redeemable at par at any time between end of fifth year to
twelfth year from the date of allotment, subject to approval from
statutory bodies and Financial Institutions, if any.
16. Balance Sheet Abstract and Company''s General Business Profile
(Additional Information under Part IV of the Schedule VI to the
Companies Act, 1956) is annexed herewith.
17. In the opinion of the Board and to the best of their knowledge and
belief, the value of the realization of Current Assets, Loan and
Advances, in the ordinary course of business would not be less than the
amount at which they are stated in the Balance Sheet.
18. Micro, Small and Medium Class Enterprises :
There are no Micro, Small and Medium Class Enterprises, to whom the
company owes dues, which are outstanding for more than 45 days as at
31st March, 2011. The above information regarding Micro, Small and
Medium Class Enterprises has been determined to the extent such parties
have been identified on the basis of information available with the
19. Previous year figures have been re-grouped/re-arranged wherever
necessary. Signature to Schedules 1 to 18