| NOTE: 1.
SEGMENT REPORING
The Company is engaged in the business of Steel Manufacturing which in
context of Accounting Standards - 17 - "Segment Report" issued by the
Institute of Chartered Accountants of India is considered the only
business segment. So separate segment reporting is not necessary.
NOTE: 2.
In the opinion of the Board of Directors, Current Assets, Loan and
Advances have value on realization in the ordinary course of business
at least equal to the amounts at which they are stated and provision
for all known liabilities have been made in accounts.
NOTE: 3.
The Company has applied for its debts under Corporate Debt
Restructuring Mechanism during the financial year 2012-13. The proposal
to restructure all the debts from the lenders:
- State Bank of India
- Punjab National Bank
- State Bank of Patiala
- Canara Bank
CDR Empowered Group approved restructuring on 8th November, 2012 and
CDR Cell issued Letter of Approval (LOA) on dated 27th April, 2013.
Master Restructuring Agreement incorporating the terms of LOA was
signed with the lenders on 25th July, 2013. The Company has created
security in favour of the lenders.
NOTE: 4.
In term of Letter of Approval (LOA) and Master Restructuring
Arrangement (MRA), the Company's debts have been restructured with
longer repayment schedule stretching up to FY 2022-23 and low rate of
interest. A part of the interest for the period from September 2012 to
March 2014 has been funded by the lenders by way of Funded Interest
Term Loan (FITL). However, CDR lenders would have the right to
recompense for their sacrifices, at the time of Company's exist from
CDR, the sacrifice amount for which lenders have right to recompense
works out to M 12.33 Crores during the tenure of CDR, of which the
amount for the period from 1st April, 2014 to 31st March, 2015 is M
1.70 Crores and the cumulative amount for the period up to 31st March,
2015 is M 5.99 Crores.
However no provision has been made in the books of accounts of the
Company of the lenders right to recompense for their sacrifices as the
liability shall arise only at the time of exit from CDR.
NOTE: 5.
As per the Accounting Standard - 18 issued by the Institute of
Chartered Accountants of India "Related Party Disclosure". In view of
this the Company has given the following disclosures for the year.
The Company has identified the related parties having transactions
during the year, as per detail given below. No provision for doubtful
debts is required to be made & no amount was written off during the
year.
NOTE: 6.
Figures for the previous year have been regrouped / rearranged wherever
considered necessary.
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