I. COMPANY INFORMATION
Rathi Steel And Power Limited (formerly Rathi Udyog Limited) (the
Company) is a public limited company incorporated in 1971 and engaged
in the business of manufacturing and sale of Steel and Steel related
Estimated amount of Contracts remaining to be executed on capital
account- Rs. NIL (Rs. NIL lakhs).
2. CONTINGENT LIABILITIES:
A. No provision has been made for:
a. Outstanding Bank Guarantees and Counter Guarantees given by the
Company Rs. 58607112/- (Rs.12,81,27,112).
b. Outstanding Letter of Credit Rs. 2,70,00,000 (Rs.2,70,00,000).
c. Sales tax Liability in respect of goods impounded- amount
unascertained (The Company has deposited Rs.1239019/- as security with
d. Civil suits and Labour cases pending against the
Company not acknowledged as debts - Rs. 38954461/- (14040870/-).
B. (i) Show Cause notices issued by various Government
department are not considered as contingent liability.
(ii) The Company has not considered those disputes/ demands/claims as
contingent liability for which the chances of outflow of resources are
C. Surety given to sales tax dept. for others. The Company has not
considered these as contingent liability as chances of out fow of
resources are remote as Company has a right to claim the same from
D. Income Tax and Sales Tax Assessments:
a. Income tax assessments have been completed upto assessment year
2011-12. Additional liability, if any, in respect of pending
assessments, would be provided for on completion of assessments.
b. Additional demand, if any, in respect of pending assessment of
Sales Tax/ VAT/Entry Tax would be known only on completion of the
3. Name of the Company has been changed from Rathi Udyog Limited to
Rathi Steel And Power Limited w.e.f.20.03.2008.
4. During the year, the Company''s Corporate Debt Restructuring Package
(CDR Package) has been approved by the CDR Cell. Under the CDR Package,
the Company''s debts were restructured/rescheduled and additional credit
facilities have been sanctioned as set out in the Letter of Approval
dated 24 September 2013.Accordingly Master Restructuring Agreement has
been executed on 20th December 2013 between the Company and concerned
lenders. The CDR Package includes reliefs / measures such as reduction
in interest rates, funding of interest, rearrangement of securities
etc. The Company has since implemented the CDR approved restructuring
scheme in its books of account and bank accounts related to
restructuring scheme are under reconciliation.
6. Payment to auditors:
a. Audit Fee – Rs.4,00,000 (Rs.4,00,000).
b. Fee for Limited Review – Rs.1,00,000 (Rs.1,00,000).
c. Out of Pocket Expenses-Rs.15,000 (Rs.15000).
7. Sundry debtors, advances, creditors & other liabilities includes
inter parties transfers and are subject to confirmation and consequent
adjustments. In the opinion of the Board of Directors, the current
assets and loans & advances except doubtful in nature would realize at
least the amount at which these are stated in the Balance Sheet. For
doubtful debts , the board of directors are very much hopeful for their
recovery. Therefore, No provision has been made.
8. Based on the information available with the Company, there are no
over dues to micro and small enterprises under the Micro, Small and
Medium Enterprises as on 31st March 2014 due for a period of more than
45 days, Accordingly no interest was paid/is payable in terms of the
said Act during the year under review.
9. Earning Per Share (EPS):
Earning Per Share (EPS) – the numerators and denominators used to
calculate earning per share:-
10. Related Party Disclosure:
In accordance with Accounting Standard (AS-18) on related party
disclosure, where control exists and where key management personnel are
able to exercise significant infuence and, where transactions have taken
place during the year, along with description of relationship
identified, are given below:
1. Shri Udit Rathi
2. Smt. Sonal Rathi
3. Smt. Divya Rathi
b) Key Managerial Personnel Shri Pradeep Kumar Rathi Shri P N Varshney
11. Segmental Reporting:
The business activity of the company falls within one broad segment viz
Steel. Hence the disclosure requirement of Accounting Standard-17 of
Segment Reporting issued by the Institute of Chartered Accounts of
India is not given.
12. Previous year figures have been regrouped or recast wherever