1. Contingent liabilities not provided for
Demand of Rs. 2,24,379/- raised by Sales Tax authorities, for the
accounting year 2003-04 which is disputed by the Company.
Demand of Rs. 1,40,975/- raised by Sales Tax authorities, for the
accounting year 2004-05 which is disputed by the Company.
Demand of Rs. 68,35,283/- raised by Income Tax authorities, for
Assessment year 2007-08 which is disputed by the Company.
Demand of Rs. 14,99,230/- after giving appeal effect raised by Income
Tax authorities, for Assessment year 2008-09 which is disputed by the
Demand of Rs. 2,29,491/- raised by Income Tax authorities, for
Assessment year 2009-10 which is disputed by the Company.
Demand of Rs. 89,96,224/- raised by Income Tax authorities, for
Assessment year 2009-10 which is disputed by the Company.
2. Estimated amount of contracts remaining to be executed on capital
account and not provided for in the Accounts (net of advances) NIL
3. In terms of accounting policy (E) for the accounting of export
incentives, estimated benefit of Rs. 295.36 Lacs have been taken in to
account under DES Scheme. Steps are being taken to import raw materials
and utilize the same.
4. In the opinion of the Directors, the current assets, loans and
advances are approximately of the value stated, if realized in the
ordinary course of business and provision for all known and determined
liabilities (except wherever otherwise stated)are adequate and not in
excess of the amount reasonably necessary.
5. Balances under Sundry Debtors, Sundry Creditors, Loans & Advances
are subject to confirmation and reconciliation with the respective
parties/ concerns. Necessary adjustment if any, thereon having an
importance of revenue nature, will be made in the year of such
confirmation / reconciliation.
6. Employee Benefits
As per Accounting Standard 15 Employee Benefits, the disclosure of
Employee benefits as defined in the Accounting Slandered are given
a) Gratuity ( (defined benefits plans)
The Company has defined gratuity plan. Every employee who has completed
five years or more of service gets a gratuity on death or resignation
or retirement at 15 days salary (last drawn salary) for each completed
year of service. The scheme is funded with an insurance company in the
form of qualifying insurance policy.
b) Leave wages (long term employment benefit)
The leave wages are payable to all eligible employees at the rate of
daily salary for each day of accumulated leave on death or on
resignation or upon retirement on attaining superannuation age.
7. Segment Reporting
a) Primary Segment
The Company''s operations predominantly relates to a single segment
namely Stainless Steel Tubes & Pipes which as per Accounting
Standards 17 is considered the only reportable business segment.
8. During the year Company has paid Managerial Remuneration to
Managing Director and Whole-time Directors aggregating to Rs. 120.00
lacs which is in excess of the limit prescribed u/s. 198 and 309 of the
Companies Act read with Schedule - XIII of the Companies Act, 1956 due
to inadequacy of Profit. The company has initiated steps to obtain the
approval of Shareholders in ensuing Annual General Meeting.
9. The Company has initiated the process of identifying the suppliers
who qualify under the definition of micro and small enterprises, as
defined under the Micro, Small and Medium Enterprises Development Act,
2006. Since no intimation has been received from the suppliers
regarding their status under the said Act as at 31st March 2012,
disclosures relating to amounts unpaid as at the year end, if any, have
not been furnished. In the opinion of the management, the impact of
interest, if any, that may be payable in accordance with the provisions
of the Act is not expected to be material.
10. Previous year comparatives
Till the year ended 31st March, 2011, the Company was using pre-revised
Schedule VI to the Companies Act, 1956, for preparation and
presentation of its financial statements. During the year ended 31st
March, 2012, the revised Schedule VI notified under the Companies Act,
1956, has become applicable to the Company. The Company has
reclassified previous year figures to conform to this year''s
Signature to Notes 1 to 26
1. The Company has only one class of equity shares having a par value
of Rs. 10 per share, each shareholder is eligible for one vote per
share. The dividend proposed by the Board of Directors is subject to
the approval of shareholders, except in case of interim dividend in the
event of liquidation, the equity shareholders are eligible to receive
the remaining assets of the Company, after distribution of all
preferential amounts, in proportion of their shareholding.
2. Company has not bought back any equity shares during the priod of
five years immediately preceeding the Balance sheet date.However the
Company has alloted 1,13,39,400 equity shares as bonus shares during
F.Y .2007-2008 and also alloted 22,55,000 equity shares for
consideration other than cash pursant to the scheme of amalgmation
during F.Y. 2009-2010
Corporate Loan from Punjab National Bank of Rs. 15 Crore and other Term
Loan aggregating to Rs. 48.5 Crores are secured by equitable mortgage
on Immovable Properties of the company situated at Survey No. 771, 772,
773, 774, 779, 767, 779/A at village -Thol , Taluka Kadi Dist.
Mehsana, & land of Wind mill at survey no. 367/2 Village -Vanku Taluka
Abdasa, District Kutch Gujarat and Property of the company situated at
Suraj House, Vidhyanagar Soc, Usmanpura, Ahmedabad on first charge
basis and personal guarantees of Directors of the Company viz. Ashok T.
Shah, Kunal T. Shah & Gunvant T. Shah and corporate guarantee of M/s.
Suraj Impex Pvt. Ltd.
Term Loan of Rs. 8 Crore is repayable in 20 equal Quarterly installment
of Rs. 4000000/- starting from July 2007 and last installment due on
July 2012. Term Loan of Rs. 3 Crore is repayable in 20 equal Quarterly
installment of Rs. 1500000/- starting from Nov 2007 and last
installment due on Nov. 2012. Term Loan of Rs. 37.50 Crore is repayable
in 22 equal Quarterly installment of Rs. 17050000/- starting from June
2010 and last installment due on Sep. 2015 and Corporate Loan of Rs. 15
Crore is repayable in 17 equal Quarterly installment of Rs. 8823530/-
starting from June 2011 and last installment due on Sep. 2015.