| 1. Rights Preferences and Restrictions attaching to each class of
shares
i) Equity Shares
* The Company has only one class of Equity shares having par value of
Rs. 10.00 per share. Each holder of Equity Shares entitled to one vote
per share.
* The Equity Shareholders have right to receive dividend out of balance
of net profits remaining after payment of dividend to the preference
shareholders. The dividend proposed by the Board of Directors Is
subject to the approval of the shareholders In the ensuing Annual
General Meeting. However, the company has not declared any dividend for
the year.
* In the event of the liquidation of the company, the holders of the
Equity Shares will be entitled to receive the realized value of the
remaining assets of the company, after distribution of all preferential
dues. The distribution will be In proportion to the number of Equity
Shares held by the Shareholders.
ii) Preference Shares
Preference Shares shall confer on the holders thereof, the right to a
fixed preferential dividend on non cumulative basis, at the rate as may
be determined by the board at the time of the issue, on the capital for
the time being paid up or credited as paid up thereon.
* The Company has two classes of Preference shares l.e. 6% Non
Cumulative Redeemable Preference Shares and 5% Non Cumulative
Redeemable Preference Shares having par value of Rs. 10.00 per share.
* In the event of liquidation of the company, the holders of such
shares will be entitled to have the capital paid up on such shares be
paid off In priority to any payment of capital to equity shareholders.
However, it shall not have the right to any further participation In
the profits or assets of the company.
* The right to vote, In respect of such capital, In proportion as paid
up preference share capital bears to the total paid up equity capital
only on resolutions directly affecting their rights and on every
resolution on non-payment of dividend for the year.
6% Non Cumulative Redeemable Preference Shares are redeemable after 20
years from the date of allotment, and the 2. Aggregate number and class
of shares alloted as fully paid up pursuant to contract(s) without
payment being received In cash and/or by way of bonus shares and/or
shares bought back during the period of five years Immediately
preceedlng the balance sheet date are : NIL
3. I) Working capital facilities from State Bank of India are secured
by way of hypothecation of pari passu charge alongwith Corporation Bank
on all the current assets of the company both present and future. These
facilities are also further collaterally secured by 1st pari passu
charge of State Bank of India alongwith 2nd pari passu charge of
Corporation Bank on all the fixed assets of the company both present
and future Including equitable mortgate of factory land situated at
Village Dhandarl Khurd, Ludhiana and equitable mortgage of leasehold
rights of factory land by the company.
II) All Secured working capital facilities have been guaranteed by
three directors of the company.
III) The company has not committed any default In repayment of loan and
Interest.
3. Provisions and Contingent Liabilities
Provisions are recognised in the accounts in respect of present
probable obligations, the amount of which can be reliably estimated.
Contingent liabilities are disclosed in respect of possible obligations
that arise from past events but their existence is confirmed by the
occurrence or non-occurrence of one or more uncertain future events not
wholly within the control of the company.
4. Contingent Liabilities not provided for
a) Claims against the Company not acknowledged as debt is Rs. NIL
b) Letter of Credits outstanding in favour of suppliers is Rs. 480.51
Lacs (Previous Year Rs. 115.46 Lacs)
c) The company has filed an appeal with CEGAT against demand raised by
D.C. Central Excise, Range, Ludhiana for differential duty Rs.
142684/-and interest thereon Rs. 75702/-. The company has deposited Rs.
142684/-under protest and has not deposited the interest s75702/-.
5. The company has paid remuneration to the directors with in the
limits prescribed in Schedule XIII of the Companies Act, 1956 as under:
-
Current Year Previous Year
a) Director's Remuneration 12,00,000.00 12,00,000.00
b) Directors' Sitting Fees 18,000.00 5,000.00
6. Hedging Contracts
The company uses forward exchange contracts to hedge its foreign
exchange exposure in accordance with its Forex Policy. As at 31st
March, 2014, there were two outstanding Forward Exchange Contract. The
uncovered foreign exchange exposure as at 31st March 2014 is US$ NIL.
7. There are no Micro, Small and Medium Enterprises, to whom the
company owes the dues, which are outstanding for more than 45 days as
at the balance sheet date. The above information regarding Micro, Small
and Medium Enterprises has been determined to the extent such parties
have been identified on the basis of information available with the
company. This has been relied upon by the Auditors.
8. The Company has adopted Accounting Standard AS (15) prescribed by
the companies Accounting Standard Rules 2006 with effect from 1st April
2007.
9. As the company's business activity falls within a single primary
business segment viz. Iron and steel, the disclosure requirements of
Accounting Standard (AS-17) on Segment Reporting issued by the
Institute of Chartered Accountants of India are not applicable.
10. The company has carried out comprehensive exercise to assess the
impairment loss of assets. Based on such exercise, there is no
impairment of assets. Accordingly, no adjustment in respect of loss on
impairment of asset is required to be made in the accounts.
11. In the opinion of the Board of Directors, the current assets and
loans & advances have a value on realization in the ordinary course of
business at least equal to the value at which they are stated.
12. The Company has reduced the amount of cheques issued but not
presented for payment with the amount of cheques on hand as on
31.03.2014
13. Confirmation of Balances, whether in debit or credit, from parties
and banks have not been obtained. As such their effect on Statement of
Profit & Loss can't be reflected.
14. Previous year figures have been regrouped/rearranged wherever
considered necessary to make them comparable with the current year
figures.
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