| 1. Company Overview
Resurgere Mines & Minerals India Limited is a Public Limited Company
engaged in the business of extraction, processing & sale of Ore and
exploration & development of mining assets. Presently the Company is
enjoying long term raising and purchasing rights for Bauxite Mine in
the State of Maharashtra and mining rights for Soapstone in the State
of Rajasthan.
The Company has also 99.98 % equity holding in Shri Warana Minerals
(India) Pvt. Ltd. having another bauxite mine in the State of
Maharashtra through its wholly owned subsidiary i.e. Warana Minerals
Private Limited.
* Term loan taken from Union Bank of India for acquisition of Plant &
Machinery and Equipments for Maharajpur mines at Orissa. Repayment of
Instalment was not made from May-2011 and interest payment on the same
payment was not made from Jun-2011.
* Due to non payment of instalment as well as interest, Union Bank of
India has declared same term loan as NPA.
* Term loan is secured by exclusive charges on the underlying plant &
machineries. Collateral security by way of pledge of shares of the
company owned by the director/s and lien on fixed deposit. The loan is
further secured by personal guarantee of one of the director (Mr.
Subhash Atmaram Sharma).
* Cash Credit / Short Term Loan taken from Bank of India, State Bank of
India, Union Bank of India, IndusInd Bank and Barclays Bank for working
capital requirement. Repayment of Instalment was not made from May-2011
and Interest payment on the same payment was not made from Jan-2011
* The banks has declared same working capital loan as NPA due to non
payment of interest as well as principle amount on demand.
* All loans are secured by first pari-passu charge on the entire
current assets of the company and lien on fixed deposits. Collateral
security by way of mortgage of residential property and office premises
belonging to a director and a partnership firm in which a director is
partner respectively on pari-passu basis. Personal Guarantee of one of
the directors, a relative of director and also Guarantee of a
partnership firm in which director is partner.
** Received from Mr. Subhash Atmaram Sharma (Managing Director of the
Company)
*** Unsecured Loan from related parties received in the year 2011-2012,
and company is not providing interest on the same. There is no material
movement during the year.
* The names of the Micro, Small and Medium Enterprises suppliers
defined under "The Micro Small and Medium Enterprises Development Act
2006" could not be identified, as the necessary evidence is not in the
possession of the Company.
** Outstanding trade payables are as per books of accounts and subject
to confirmation and company does not have any confirmation and
reconcilation with the parties from last 3 years.
** There is no material Movement in Trade Payable from FY 2010-11.
* Duties & Taxation includes TDS on salary of Rs. 9.37 Lacs related to
deduction of directors remuneration for the FY 2012-13 which is not yet
paid. Interest on TDS on salary payable not provided during the year
** Interest on Term Loan overdue - Rs.591.66 Lacs (from Jun-2011 to
Mar-2015) and Interest on Working Capital overdue - Rs.7104.21 Lacs
(from Jun-2011 to Mar-2015). Due to all bank loans(working capital
loan,term loan & short term loan) are NPA, the company has taken
interest provision at the rate mentioned in their last sanstion letter.
*** ROC Filing Fee's is payable for increasing authorise share capital
amounting to Rs. 48.98 lacs and provision for Interest on fee's payable
is amounting to Rs.60.89 lacs.
**** Outstanding Creditors for Capital Goods and Other Liabilities are
as per books of accounts and company does not have any confirmation and
reconcilation with the parties.
* Advance to Suppliers are as per books of accounts and company does
not have any confirmation and reconcilation with the parties from last
3 years.
* Advance to Suppliers includes Rs.1821.78 Lacs are outstanding more
than 3 years and there are no material movement in the parties account.
** Advance to Subsidiary includes interest free loans advanced to a
foreign subsidiary of Rs.14,258.57 Lacs (Previous Year Rs.13,691.10
Lacs) and the maximum amount outstanding during the period is Rs.
14,427.30 Lacs (Previous Year Rs. 14,300.98 Lacs). Advance was given
during the FY 2010-11.
*** Principle and Interest amount of Inter - Corporate Deposits are
outstanding for more than 3 years. There are no material movement in
the parties account and company does not have any confirmation and
reconcilation with the parties.
**** Mine Deposit are outstanding more than 3 years and there are no
material movement in the parties account and company does not have any
confirmation and reconcilation with the parties.
* Interest on term loan has been charged by bank till 31/05/2011. Term
loan has been classified as NPA after 31/05/ 2011 by the bank,
therefore bank has stopped charging interest due to RBI norms on NPA
classified loans. The Company has accrued interest on estimation basis
(@ as specified in sanction letter of respective bank in the books of
accounts.)
** Interest on cash credit working capital loans has been charged by
Union Bank of India till May-2011, Bank of India and State Bank of
India till June-2011, Indusland Bank till November-2011. The same has
been classified as NPA by respective banks, therefore bank has stopped
charging interest due to RBI norms on NPA classified loans. The Company
has accrued interest on estimation basis (@ as specified in sanction
letter of respective bank in the books of accounts. )
** Short term loan from Barclays Bank has been classified as NPA by the
banks, therefore bank has stopped charging interest due to RBI norms on
NPA classified loans. The Company has accrued interest on estimation
basis (@ as specified in sanction letter of the bank in the books of
accounts. )
2. Contingent Liabilities not provided for in respect of: (Rs.in Lacs)
Particular As on As on
31-03-2015 31-03-2014
Claims against the Company not acknowledged 2,447.08 2,424.18
as debts including interest
Estimated amount of contracts remaining to
be executed on capital account
and not provided for (net of advances) 5,173.51 5,173.51
3. In the opinion of the Management, all Current Assets, Loans &
Advances would be realizable at least of an amount equal to the amount
at which they are stated in the Balance.
a) Primary (Business) Segment
In accordance with the requirements of Accounting Standard 17 "Segment
Reporting" issued by the Institute of Chartered Accountants of India,
the Company's business constitutes only one reportable business segment
being Mining & Trading of Minerals and hence no separate disclosure to
attributable Revenues, Profits, Assets, Liabilities, and Capital
Employed are given.
b) Secondary (Geographical Segment)
Secondary Segment Reporting is on the basis of geographical location of
the customers. The operation of the Company comprises local sales and
export sales. The management views the Indian Market and Export Market
are distinct geographical segments. The following is the distribution
of the Company's sale by geographical markets.
4. 'Related Party' Disclosure as per Accounting Standard 18 as
specified under section 133 of the Companies Act, 2013 read with rule 7
of the Companies (Accounts) Rules, 2014, the related parties of the
Group are as follows: : (As identified by the management)
Names of Related Parties:
(A) Key Management Personnel:
a. Mr. Subhash Atmaram Sharma - Chairman Cum Managing Director and
CEO
b. Mr. Alok Ambastha - Independent Non-Executive Director
c. Mr. Mayur Jitendra Shah - Independent Non-Executive Director
d. Mr. Ajay Sethi ** - Independent Non-Executive Director
e. Ms. Mamta Parekh * - Independent Non-Executive Director
f. Mr. Rohit Palav * - Independent Non-Executive Director
g. Mr. Rakesh Gupta - Company Secretary
* Appointed during the year
** Resigned during the previous year
(B) Subsidiary Companies:
a. Warana Minerals Private Limited - Wholly owned Subsidiary
Company
b. Shri Warana Minerals (India) Private - Subsidiary Company of Warana
Limited Minerals Private Limited
c. Resurgere Sponge Iron Limited - Wholly owned Subsidiary
Company
d. Resurgere Ferro Alloys Limited - Wholly owned Subsidiary
Company
e. Resurgere Industries Limited - Wholly owned Subsidiary
Company
f. Resurgere International FZE - Wholly owned Subsidiary
Company at UAE
g. Resurgere Coal India LLP - Limited Liability
Partnership Frim
(C) Related Parties:
(Entities in which any director or his relative is a partner , director
or member)
a. M/S Exfin Shipping (India) - Partnership Frim
b. Victory Sponge Private Limited - Company
c. Eminent Steel private Limited - Company
d. Runwell Steel Private Limited - Company
e. Spear petroleum Private Limited - Company
f. Resurgere Infracorn Private Limited - Company
g. Akshar Lighting Systems - Partnership Frim
5. Consequent upon estimation on useful life for screening and crushing
machinery, as estimated by management, and on wagons procured under
"WIS" Scheme and as mentioned under point no. 2.6, "Depreciation and
Amortization" charged to Profit and Loss Account is higher by Rs.265.20
Lacs (Previous Year - Rs.969.70 Lacs) and correspondingly Net Fixed
Assets is also lower by Rs.576.91 Lacs (Previous Year - Rs.969.70
Lacs).
6. Miscellaneous Expenditure as per point no. "13", Depreciation &
Amortization as per point no."24" and as per point no. "2.12" referred
to above, also includes amounts which are more clearly mentioned in the
table below. The table mentions respective mine location with its
respective opening balance of the un-adjusted amount, if any, included
under the head "Miscellaneous Expenditure", amount incurred during the
year, amount written off and debited to Profit & Loss Account under the
head "Depreciation & Amortisation" and the closing balance of the
un-adjusted amount carried forward under
7. In the opinion of the Management, the Current Assets, Loans &
Advances are approximately of the value stated and are realizable in
the ordinary course of business. The provisions for all known
liabilities are adequate.
8. Confirmation letters have been sent by the Company in respect of
balances reflected under Sundry Debtors, Sundry Creditors and Loans and
Advances. In view of confirmations having been received from only some
of the parties, the balance under these heads have been shown as per
books of accounts and are subject to reconciliation and adjustment, if
any.
9. a Other Liabilities shown in point no. "10" Includes Rs.156.48 Lacs
(Previous year - Rs.150.25 Lcas) being share application money
refundable to an Overseas Corporate Body. Necessary approval for which
is still awaited.
b Local Sales shown in point no. "18" is net of sales tax of Rs.1.38
Lacs (Previous year - Rs. 0.56 Lacs)
c Foreign exchange fluctuation (Net) shown in point no. "25" includes
Rs.6.23 Lacs (Previous year - Rs.14.28 Lacs ) being exchange loss on
account of share application money refundable to an overseas body
corporate.
10. Taxes on Income:
a) As there is a loss during the year, therefore provision for Taxation
for the year has not been made in accordance with the provisions of the
Income Tax Act,1961
b) The accumulated balance in Net Deferred Tax Liability comprises of:
41 The annual accounts of the subsidiary companies and the related
detailed information shall be made available to shareholders seeking
such information at any point of time. The annual accounts of the
subsidiary companies shall also be kept for inspection by any
shareholders in the head office of the holding company and of the
subsidiary companies concerned. The holding company shall furnish a
hard copy of details of accounts of subsidiaries to any shareholder on
demand.
11. Figures less than Rs. 500/- has been shown at actual wherever
statutory required to be disclosed since figures have been rounded off
to the nearest Rs. in Thousand.
12. Figures of the previous year have been reworked, regrouped,
rearranged and reclassified, wherever necessary, to compare with the
figures of the current year.
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