1. 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.1243.00 lakhs).
3. CONTINGENT LIABILITIES:
A. No provision has been made for:
a. Outstanding Bank Guarantees and Counter Guarantees given by the
Company Rs. 12,81,27,112(Rs.7,03,98,000).
b. Outstanding Letter of Credit Rs. 2,70,00,000 (Rs.29,37,59,771).
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.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 outfow 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 up to assessment year
2010-11. 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 would be known only on completion of the assessments.
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. Prior period expenses have been debited to respective heads.
6. Unsupported expenditure amounting to Rs. 900000/-
7. The Company has incurred a net loss of Rs.110.05 crores during the
year ended 31 March 2013 and as of that date the Company''s current
liabilities exceeded its current assets by Rs. 129.60 crores. The
Company has approached the Lenders to restructure its debt profle to
convert majority of their short-term loans to long-term loans, which
has already been agreed in principle by all the banks and the approval
is under process. The Company has prepared the fnancial statements on
the basis of going concern assumption.
8. FOREIGN CURRENCY TRANSACTIONS:
Expenditure in Foreign Currency:
a. Raw material purchase (CIF) Rs.42,90,10,186 (Rs.52,06,29,787).
b. Store Purchase (CIF) Rs. Nil (Rs.Nil).
c. Capital Goods (CIF) Rs.1,14,40,098(Rs.89,89,163).
Earning in Foreign Currency (FOB):
Finished goods sale Rs. Nil (Rs. Nil).
8. Payment to auditors:
a. Audit Fee Rs.4,00,000 (Rs.4,00,000).
b. Fee for Limited Review Rs.1,00,000 (Rs.20,000).
c. Out of Pocket Expenses-Rs.15,000 (Rs.15000).
9. Sundry debtors, advances, creditors & other liabilities includes
inter parties transfers and are subject to confrmation 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.
10. 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 2013 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.
11. Earning Per Share (EPS):
Earning Per Share (EPS) the numerators and denominators used to
calculate earning per share:-
12. 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 signifcant infuence and, where transactions have taken
place during the year, along with description of relationship
identifed, are given below:
1. Shri Udit Rathi
2. Shri Shrivardhan Rathi
3. Smt.Sonal Rathi
4. Smt.Divya Rathi
b) Key Managerial Personnel Shri Pradeep Kumar Rathi Shri P N Varshney
13. 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.
14. Previous year fgures have been regrouped or recast wherever