1. Contingent Liabilities not provided for
Rs. in Lakhs
Current Year Previous Year
Counter guarantees issued by the Company
for guarantees 2,573.94 2,305.53
obtained from bank
Corporate guarantees issued by the
company on behalf of wholly 49,828.28 19,635.90
owned subsidiaries
TOTAL 52,402.22 21,941.43
2. During our earlier year, the company has received Show Cause cum
Demand notices from the Commissioner of service tax aggregating to Rs.
6,809 Lakhs for FY 2006-07 to FY 2009-10. The Company has fled its
reply against the said notices. There is no further communication for
the same from the authorities. The company is advised that the said
demand is legally unsustainable and hence the Company does not expect
any liability in the matter.
3. No provision has been made in respect of disputed demands from
Income-tax Authorities to the extent of Rs. 645.14 Lakhs (Rs. 37.73
Lakhs), since the company has reasons to believe that it would get
relief at the appellate stage as the said demands are excessive and
erroneous.
4. Estimated amount of contracts remaining to be executed on capital
accounts and not provided for (net of advances) as at March 31, 2011
Rs. NIL (Rs. NIL).
5. In view of long term interest of the company in its subsidiaries
and step down subsidiaries no provision is made for diminution in value
of investment, if any, in these subsidiary companies and step down
subsidiary companies.
6. a) During the year the company raised Foreign Currency Loans
aggregating to NIL (USD NIL)
b) The Company established Letters of Credit aggregating to Rs. NIL
(Rs. 3,720.72 Lakhs). The same has been utilized for acquisition of
vessels.
7. The company has not received any intimation from its vendors
regarding the status under the Micro and Small Enterprises Development
Act 2006 and hence disclosures required under the said Act have not
been made.
8. The balance in the Exchange Earners Foreign Currency account is
maintained in USD and shown in equivalent Indian Rupees. The balance in
the said account as at the Balance Sheet date was USD 0.72 Lakhs
(Previous Year USD 218.87 Lakhs)
9. (a) The Ministry of Corporate Affairs, Government of India vide its
General Notification No. S.O. 301 (E) dated February 8, 2011 issued
under Section 211(3) of the Companies Act, 1956 has exempted certain
classes of companies from disclosing certain information in their profit
and loss account. The Company being a ''shipping company'' is entitled to
the exemption. Accordingly, disclosures mandated by paragraphs 4-D (a),
(b), (c) & (e) of Part II, Schedule VI to the Companies Act, 1956 have
not been provided.
(b) The Ministry of Corporate Affairs, Government of India, vide
General Circular No. 2 and 3 dated February 8, 2011 and February 21,
2011 respectively has granted a general exemption from compliance with
section 212 of the Companies Act, 1956, subject to fulfllment of
conditions stipulated in the circular. The Company has satisfied the
conditions stipulated in the circular and hence is entitled to the
exemption. Necessary Information relating to the subsidiaries has been
included in the Consolidated Financial Statements.
10. Segment Reporting
In accordance with paragraph 4 of Accounting Standard (AS) 17 ''Segment
Reporting'', the company has disclosed segment result on the basis of
Consolidation Financial Statements. The same are therefore not
disclosed for stand alone financial statements.
11. Related Party Disclosures (as per Accounting Standard (AS) 18
Related Party Disclosures''
Related Party Disclosures:
A List of Related Parties
I Subsidiaries
1 MercatorInternational Pte Limited (MIPL) -Singapore
2 Mercator Oil and Gas Limited (MOGL) - India
3 Mercator Petroleum Private Limited - India
4 Mercator Offshore Holdings Pte Ltd (MOHPL) - Singapore
5 Mercator Offshore (Nigeria) Pte Ltd - Subsidiary of MIPL
6 Oorja Holdings Pte.Limited. (OHL) Singapore - subsidiary of MIPL
7 Mercator PH (Dutch) Holding BV (Netherlands) - Subsidiary of MIPL
(Liquidated during the year)
8 Mercator Petroleum (Romania) Pte Ltd - Subsidiary of MIPL (Liquidated
during the year)
9 Mercator Lines Singapore Pte Ltd (MLS) - Subsidiary of MIPL
10 Mercator Offshore Ltd Singapore - Subsidiary of MOHPL
11 Mercator Petroleum (Turkey) BV (Netherlands) - Subsidiary of
Mercator PH (Dutch) Holding BV (Netherlands) (Liquidated during the
year)
12 Ivorene Oil Services Nigeria Ltd. (Singapore) - Subsidary of MONPL
13 Varsha Marine Pte Ltd (Singapore) - Subsidiary of MLS
14 Vidya Marine Pte Ltd (Singapore) - Subsidiary of MLS
15 Mercator Lines (Panama) Inc - Subsidiary of MLS
16 Chitra Prem Pte. Ltd. (Singapore) - Subsidary of MLS
17 Target Ship Management Pte. Ltd. (Singapore) - Subsidiary of MLS
18 Oorja 1 Pte Ltd (Singapore) - Subsidiary of OHL
19 Oorja 2 Pte Ltd (Singapore) - Subsidiary of OHL
20 Oorja 3 Pte Ltd (Singapore) - Subsidiary of OHL
21 Oorja Mozambique Limitada (Mozambique) - Subsidiary of OHL
22 MCS Holdings Pte Ltd (Singapore) - Subsidiary of OHL
23 Oorja (Batua) Pte. Ltd.(Singapore) - Subsidiary of OHL
24 Oorja Indo Petangis Four (Indonesia) - Subsidiary of Oorja 1 Pte
Ltd.
25 Oorja Indo Petangis Three (Indonesia) - Subsidiary of Oorja 2 Pte
Ltd.
26 Oorja Indo KGS (Indonesia) - Subsidiary of Oorja 3 Pte Ltd
27 Broadtec Mozambique Minas Limitada (Mozambique) - Subsidiary of
Oorja Mozambique Limitada
28 PT Mincon Indo Resources (Jakarta) - Subsidiary of Oorja Indo
Petangis Three (Indonesia).
29 Bima Gema Permata PT (Jakarta) - Subsidiary of Oorja Indo Petangis
Three (Indonesia).
30 Nusa Sakti Kencana PT (Jakarta) - Subsidiary of Oorja Indo Petangis
Four (Indonesia).
II Promoter group Companies
1 MLL Logistics Private Limited
2 Mercator Mechmarine Limited
3 Mercator Healthcare Limited
4 Ankur Fertilizers Private Limited
5 Rishi Holding Private Limited
6 AHM Investments Private Limited.
7 Oorja Resources India Pvt Ltd
8 AAAM Properties Pvt Ltd
9 MMAXX Dredging Pvt Ltd
10 Vaitarna Marine Infrastructure Ltd. (Erstwhile Mech Marine Engineers
Pvt Ltd)
11 Oilmax Energy Pvt Ltd
12 Optimum Oil & Gas Ltd
13 CMA Constructions & Properties Pvt Ltd
14 OMCI Ship Management Pvt Ltd
III Directors of the Company
1 H.K Mittal
2 A.J Agarwal
3 Manohar Bidaye
4 Anil Khanna
5 M.G Ramakrishna
6 K.R Bharat
7 Kapil Garg
Iv Key Management Personnel
1 H.K Mittal
2 AJ. Agarwal
v Relative of Key Management Personnel
1 Adip Mittal
General Description of leasing arrangement
(i) Leased Assets: Premises, Godown
(ii) Future lease rentals are determined on the basis of agreed terms
12. During FY 2008-09, the company had opted for accounting the
exchange differences arising on reporting of long term foreign currency
monetary items in line with the notification of Ministry of Corporate
Affairs (MCA) dated March 31, 2009, on Accounting Standard (AS)-11. In
line with the above notification, gains / losses arising during the year
from the effect of changes in foreign exchange rates on foreign
currency loans relating to acquisition of depreciable capital assets,
are adjusted to the cost of the fxed assets. The net deduction from
fxed assets on account of the same is Rs. 385.53 Lakhs (previous year
Rs. 11,685.99 Lakhs).
13. Derivative Instruments
The Company uses foreign currency forward contracts to hedge its risks
associated with foreign Currency fuctuations relating to certain frm
commitments and forecasted transactions. The use of foreign currency
forward contracts is governed by the Company''s strategy approved by the
Board of Directors, which provide principles on the use of such forward
contracts consistent with the Company''s Risk Management Policy. The
Company does not use forward contracts for speculative purposes. There
are no outstanding Forward Exchange Contracts entered into by the
Company as on March 31, 2011.
14. Tonnage Tax reserve
In terms of section 115VT of the Income Tax Act, 1961, the company is
required to transfer amounts out of its profit to Tonnage Tax Reserve.
In view of NIL Income from shipping (As defned u/s 115V – I sub
clause (i) and (ii) of Income Tax Act, 1961), there is no transfer
during the year as well as in the previous year to the Tonnage Tax
Reserve.
15. Previous years fgures have been regrouped / rearranged wherever
necessary.
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