1.1 The company has only one class of equity shares having a par value
of Rs. 10 per share. Each holder of equity share is entitled to one
vote per share.
1.2 In the event of liquidation of the company, the holders of equity
shares will be entitled to receive remaining assets of the company,
after distribution of all preferential amounts. The distribution will
be in proportion to the number of equity shares held by the
1.3 The Board of Directors, in its meetings held on 23rd January, 2012
and 15th May, 2012 declared two interim dividend of Rs. 6 each per
equity share. The Final dividend proposed by Board of Directors is
subject to the approval of shareholders in the ensuing Annual General
1.4 As no fresh issue of shares or reduction in capital was made during
the current year as well as during the previous year, hence there is no
change in the opening and closing capital. Accordingly, reconciliation
of capital has not been given.
1.5 The Equity Shares of the Company are listed at Bombay Stock
Exchange Limited and National Stock Exchange of India Limited and the
annual listing fee has been paid for the year.
2.1 Demand loans from banks are secured by hypothecation of inventories
of stock-in-trade, stores & spares, book-debts and other current assets
of the Company on First charge basis and on whole of movable fixed
assets of the Company on second charge basis and also secured by joint
equitable mortgage on all the immovable assets of the company on second
3.1 Trade Payables is based on the information available with the
Company regarding the status of the suppliers as defined under the
Micro, Small and Medium Enterprises Development Act, 2006 and there
are no delays in payments to Micro, Small and Medium Enterprises as
required to be disclosed under the said Act. This has been relied upon
by the Auditors.
3.2 Other Payables includes the liability of employees and rebates to
4. The Competition Commission of India (CCI) has, vide its order
dated 30.07.2012, alleged contravention of provisions of the
Competition Act, 2002 and imposed penalty of Rs. 397.51 crore on the
Company. The company is contesting the same & accordingly, no provision
has been made as on 30.06.2012.
5. Hitherto the revenue from Traded Power and corresponding purchase
cost of power trading activities was recorded as sales and purchase
separately. For better presentation, Company has now shown these sale
and purchase with their net result as revenue from power trading
operation. Accordingly, the corresponding numbers of previous year have
been regrouped and rearranged. There is no effect on the profits of the
6. Estimated amount of contracts remaining to be executed on capital
account (net of advances) Rs. 220.35 crore (Previous Year Rs. 198.18
7. Capital Work-in-Progress includes pre-operative expenses of Rs.
17.60 crore (Previous Year Rs. 18.31 crore) which includes depreciation
of Rs. 0.36 crore (Previous Year Rs. 0.46 crore) on assets during
8. The grants / subsidies given by government for promoting
industrialization, being capital in nature, have been credited to
capital reserve in the current accounting period (Refer accounting
policy on government grants). Consequently, the profit for the period
ended 30th June, 2012 is lower by Rs. 210.23 crore.
9. Till the year ended 31st March 2011, Leasehold Land was shown at
cost. During the current financial year, the company has changed
amortization policy to provide that Leasehold Land not containing
mineral reserve is amortized over the period of lease. (Refer Note No.
1 - XIII (b)).
It has been decided to give retrospective effect to this change.
Accordingly amortization of Rs. 0.40 crore has been provided during the
period. This change will give a systematic basis of amortization
charge, representative of the time pattern in which the economic
benefits flow to the company. Current period profit is therefore lower
by Rs. 0.40 crore, due to this change.
10. Till the year ended 31st March 2011, Mineral Bearing Land was
being shown at cost. During the current financial year the company has
changed the amortization policy to provide that Mineral Reserve
forming part of Land is valued at cost and is amortized over its
estimated commercial life based on the unit of production method.
(Refer Note No. 1 - XIII (c)).
It has been decided to give retrospective effect to this change also.
Accordingly an amortization of Rs. 2.24 crore has been provided during
the period. This change will give a systematic basis of amortization
charge, representative of pattern of utilization of minerals in which
the economic benefits flow to the company. Current period profit is
therefore lower by Rs. 2.24 crore due to this change.
11. Excise duty on sales amounting to Rs. 679.25 crore (Previous year
Rs. 425.92 crore) has been reduced from sales in statement of profit
and loss and excise duty on increase / decrease in stock amounting to
Rs. (1.07) crore (Previous year Rs. 1.21 crore) has been considered as
12. Previous year figures have been regrouped and rearranged wherever
necessary as also to bring the same in conformity with the current year
classification under Revised Schedule VI.
13. In view of extended financial year, the figures for the current
year are for fifteen months period.
14. Figures less than 50,000 have been shown at actual, wherever
statutorily required to be disclosed, as the figures have been rounded
off to the nearest lac.