1. contingent Liabilities not provided for
2010-11 2009-10
(rs. in Lakhs) (Rs. in Lakhs)
a) Guarantees given by banks on
behalf of the Company 1,774.03 1,269.29
b) Bills discounted with banks 5689.14 Nil
c) Outstanding Letter of Credits 369.72 Nil
d) Various demands raised, which in the
opinion of the management are not tenable
and are pending with various forums /
authorities:
i) Sales Tax 1,278.24 826.28
ii) Excise, Custom Duty & Service Tax 387.22 103.50
iii) Income Tax 59.76 59.76
2. In the opinion of the Management, Current Assets and Loans &
Advances have the value at which these are stated in the Balance Sheet,
if, realized in the ordinary course of business, unless otherwise
stated and adequate provisions for all known liabilities have been made
and are not in excess of the amount reasonably required.
3. Balances of Sundry Debtors/Creditors are subject to confrmation and
reconciliation, if any.
4. Segment reporting:
The Companys main business is manufacturing and selling pipes. In
addition, the Company is also manufacturing & selling Cement and
producing Pig Iron and LAM Coke for captive use, which does not qualify
as a reportable segment as per Accounting Standard –17 on segment
reporting issued by the Institute of Chartered Accountants of India.
Accordingly, in the opinion of the management Pipes is the only
reportable segment.
5. Disclosure of related parties/related party transactions:
Name of the Related Parties with whom transactions were carried out
during the year and description of relationship:
a) Associate Company:
M/s Electrosteel Castings Limited
b) Key Management Personnel & their relatives (KMP): Shri Mayank
Kejriwal, Managing Director
c) Enterprise where KMP have Significant infuence or control:
Lanco Infratech Limited and Lanco Hills Technology Park Private
Limited*
6. As stipulated in AS-28, the Company assessed potential generation
of economic Benefits from its business units and is of the view that
assets employed in continuing business are capable of generating
adequate returns over their useful lives in the usual course of
business, there is no indication to the contrary and accordingly, the
management is of the view that no impairment provision is called for in
these accounts.
7. Fixed deposits with scheduled banks include fxed deposit of Rs.
164.02 Lakhs (Previous Year Rs. 201.43 Lakhs) lodged with Government
Departments and Customers.
8. The Company has certain operating lease arrangements for offce
accommodation etc. with tenure extending upto 2 years. Expenditure
incurred on account of rent during the year amounting to Rs. 41.68
lakhs (Previous year Rs. 35.05 lakhs) is recognized in the Proft and
Loss Account.
9. Disclosure of loans and advances as per the requirement of Clause
32 of the listing agreement with the Stock Exchanges in India.
i) The Company does not have any subsidiary and has not given any loans
and advances in the nature of loans to its associates.
ii) Interest free loans as per general rules of the
Company have been given to its employees. Aggregate amount of
such advances and loans outstanding at the year end is Rs. 22.77 lakhs
(Previous year Rs. 20.36 lakhs).
10. Previous Years Figures have been re-grouped / re-arranged wherever
necessary.
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