Close Ad
SENSEX NIFTY India | Notes to Account > Steel - Rolling > Notes to Account from Rathi Steel and Power - BSE: 504903, NSE: N.A

Rathi Steel and Power

BSE: 504903|ISIN: INE336C01016|SECTOR: Steel - Rolling
May 18, 16:00
VOLUME 1,111
Rathi Steel and Power is not listed on NSE
Mar 14
Notes to Accounts Year End : Mar '15
 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).
 A. No provision has been made for:
 a.  Outstanding Bank Guarantees and Counter Guarantees given by the
 Company Rs.5,05,17,112/- (Rs.5,86,07,112/-).
 b.  Outstanding Letter of Credit Rs. 6,94,70,000/- (Rs.2,70,00,000/-)
 c.  Sales tax Liability in respect of goods impounded- amount
 unascertained (The Company has deposited Rs.12,39,019/- as security
 with the dept.)
 d.  VAT/Sales Tax liability for various years in respect of which
 either the Company or the department has filed appeals with higher
 authority in respect of various years Rs.40,66,56,736/-.The Company is
 Confident to get relief and chances of any liability is very remote.
 e.  Excise cases pending with various statutory authorities being
 disputed Rs.29,12,69,588/-.The Company is Confident to get relief and
 chances of any liability is very remote.
 f.  Civil suits and Labour cases pending against the Company not
 acknowledged as debts -Rs.3,73,47,274/- (Rs.3,89,54,461/-).
 g.  The layoff at Orissa unit has been rejected by the competent Labour
 Authority and raised compensation of Rs.4.65 Crores .The Company has
 contested the same in the Court.
 h.  As per Gas sales Agreement between GAIL and Company, total annual
 take or pay deficiency for the year 2014 works out to Rs.27.01 Crores
 and GAIL has raised a demand of Rs.10.33 Crores which has been disputed
 by the Company.
 i.  WESCO utility, Orissa has raised a demand of Rs.1.24 Crores towards
 electricity bills charges for the period up to October 2014,which has
 been disputed by the Company.
 B.  Surety given to sales tax dept. for others. The Company has not
 considered these as contingent liability as chances of out flow of
 resources are remote as Company has a right to claim the same from
 other party.
 C.  Income Tax and Sales Tax Assessments:
 a.  Income tax assessments have been completed upto assessment year
 2012-13.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 Taxwould be known only on completion of the
 c.  A search was conducted at the Company''s premises by the Income Tax
 Department in the month of January 2015. Additional liability on
 account of the same would be provided for once finalized.
 4.  Name of the Company has been changed from Rathi Udyog Limited to
 Rathi Steel And Power Limited w.e.f.20.03.2008.
 5.  Post approval of Corporate Debt Restructuring scheme, Company has
 since implemented the same in the books of account to the extent
 implemented by the member banks and provision for interest has been
 made to the extent made by banks.
 6.  Supreme Court in the month of September 2014 has cancelled the coal
 block allotted to the Company. A charge sheet was also filed against
 the Company and its officials. Court in its order dated 19.05.2015 have
 framed charges against Company under section 120-B IPC and under
 section 420 r/w Section120 B IPC. As per the directions of Supreme
 Court Enforcement Directorate is also making investigations in
 connection with irregularity in Coal Block Allotment.
 7.  During the year there has been an increase in Depreciation due to
 charging of depreciation for Orissa unit assets which was not charged
 in the last year.
 8.  During the year company has charged an expense of Rs. 7.09 Crores
 to Profit and Loss Account as extra ordinary items. The same pertains
 to expenses incurred for development of Coal Block allotted to the
 Company, the same was cancelled by Hon''ble Supreme Court of India
 Expenditure in Foreign Currency:
 a.  Raw material purchase (CIF) Rs.397777952/- (Rs.114620206/-)
 b.  Capital Goods (CIF) - Rs.5200000/-(Rs.5344546/-).
 c.  Stores Purchased(CIF)-Rs.6703760/-(Nil)
 Earning in Foreign Currency (FOB):
 Finished goods sale Rs. Nil (Rs. Nil)
 10.  Payment to auditors:
 a.  Audit Fee - Rs.4,00,000 (Rs.4,00,000).
 b.  Fee for Limited Review - Rs.1,00,000
 c.  Out of Pocket Expenses-Rs.15,000 (Rs.15000).
 11.  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
 the amount at which these are stated in the Balance Sheet. For doubtful
 debts, the Board of Directors isvery much hopeful for their recovery.
 Therefore, No provision has been made.
 12. Sundry Creditors includes amount payable to MSME amounting to
 Rs.28.53 lacs.The parties have since filed the cases in the court and
 claimed interest in terms of the MSME Act alongwith Principal amount.
 13. Earning Per Share (EPS):
 Earning Per Share (EPS) - the numerators and denominators used to
 calculate earning per share:-
 14.  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 influence and, where transactions have
 taken place during the year, alongwith description of relationship
 identified, are given below:
 a) Individuals
 1.  Shri Udit Rathi
 2.  Smt. Sonal Rathi
 3.  Smt. Divya Rathi
 b) Key Managerial Personnel Shri Pradeep Kumar Rathi Shri P N Varshney
 15. 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.
 16. Previous year figures have been regrouped or recast wherever
 c) The following transactions were carried out with related parties in
 the ordinary course of business:
Source : Dion Global Solutions Limited
Quick Links for rathisteelpower
Explore Moneycontrol
Stocks     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | Others
Mutual Funds     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Copyright © Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of is prohibited.