(b) Cash credit from banks of Rs, 46,508.73 lacs (Rs, 36,691.48 lacs) are further secured by the personal guarantee of one or more promoter directors of the Company.
v) The CDR Package as well as the provisions of the Master Circular on Corporate Debt Restructuring issued by the Reserve Bank of India, gives a right to the CDR Lenders to get a recompense of their waivers and sacrifices made as part of the CDR Proposal. The recompense payable by the Company is contingent on various factors, the outcome of which currently is materially uncertain and hence the proportionate amount payable as recompense has been treated as a contingent liability. The aggregate present value of the outstanding sacrifice made/ to be made by CDR Lenders under obligor co-obligor structure (Refer Note No 5(A)) as per the CDR package is approximately Rs,173,022.00 lacs.
1. Capital and other commitments
a) As at 31st March 2016, the Company has commitments of Rs, 2,198.80 lacs (Rs, 450.31 lacs) net of advances Rs, 8,206.20 lacs (Rs, 7,777.15 lacs) relating to estimated amount of contracts to be executed on capital account and not provided for.
b) The Company has given undertaking to the lenders not to dispose of its 51% shareholding in Orissa Manganese and Minerals Limited (OMM), a wholly owned subsidiary, till the loan taken by OMM is paid in full. Further, the Company has also pledged 6,000,000 equity shares of OMM as a security against the above loan.
2.Leases:
Operating lease
a) The Company has obtained Liquid Oxygen Plant on operating lease. The lease rent payable per month is Rs, 15.00 lacs (Rs, 15.00 lacs). The lease term is for a non-cancellable period of 10 years and the initial term may be extended for such further period and on such terms and conditions as the parties may mutually agree. There are no sub leases. Future lease rentals payable under non-cancellable operating leases are as follows:
b) Certain office premises, god owns, etc. are held on operating lease. The leases range up to 3 years and are renewable for further year either mutually or at the option of the Company. There are no restrictions imposed by lease agreements. There are no subleases. The leases are cancellable.
3. DISCLOSURE UNDER ACCOUNTING STANDARD-15 (REVISED) ON 'EMPLOYEE BENEFITS'
The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets Gratuity on terms not lower than the amount payable under the Payment of Gratuity Act, 1972. The aforesaid scheme are unfunded and as such there are no plan assets. The following table summarizes (to the extent applicable) the components of net benefits / expenses recognized in the financial statements.
The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.
4. EMPLOYEE STOCK OPTION PLANS (EQUITY SETTLED)
During the earlier year, the shareholders of the Company, had approved the Adhunik Employee Stock Option Plan ('ESOP 2012') in accordance with the Guidelines issued by Securities and Exchange Board of India (SEBI) for Employees Stock Option Plans, covering employees of the Company as well as employees of the subsidiaries. The plan provide for issue up to 12,349,954 number of options convertible into equity shares of Rs, 10 each duly adjusted for any bonus, splits, etc. The Compensation Committees of the Board administers the Scheme. The option vest subject to continuation of employment.
During the years 2012-13, the Company had granted 3,708,643 number of options convertible into equity shares of Rs, 10 each. These options carry a vesting period ranging from one to four years and at an exercise price of ' 30.15 as determined in accordance with applicable SEBI Guidelines as at the date of grant. All the options granted have an exercise period of two years from the date of vesting.
5. SEGMENT INFORMATION
(i) Business Segment: The Company's business activity primarily falls within a single business segment i.e. Iron & steel business and hence there are no disclosures to be made under Accounting Standard-17, other than those already provided in the financial statements.
(ii) Geographical Segment: The Company primarily operates in India and therefore the analysis of geographical segment is based on the areas in which customers of the Company are located.
(iii) Since the Company has common fixed assets for producing goods for domestic and overseas markets and there are no overseas fixed assets, separate figures for fixed assets / additions to fixed assets for these two segments are not furnished.
6. INTEREST IN PARTNERSHIP FIRM
The Company has Partnership Agreement with United Minerals (jointly controlled entity), a firm registered under The Indian Partnership Act, 1932, which is engaged in mining of limestone and dolomite.
38. RELATED PARTY DISCLOSURES
a) Name of related parties and related party relationship Related parties where control exists:
Subsidiary Company Orissa Manganese & Minerals Limited
Kolkata Glass and Ceramics Private Limited (w.e.f. 16.07.2015)
Associate Company Adhunik Power & Natural Resources Limited
Related parties with whom transactions have taken place during the year:
Partnership Firm (Joint Venture) United Minerals
Key Management Personnel Mr. Manoj Kumar Agarwal (ceases to exist as director w.e.f. 14.11.2015)
Mr. Ghanshyam Das Agarwal (Chairman)
Mr. Jugal Kishore Agarwal (Director)
Mr. Nirmal Kumar Agarwal (Appointed as Managing Director w.e.f. 14.11.2015) Mr. Mohan Lal Agarwal (Director)
Mr. Mahesh Kumar Agarwal (ceases to exist as director w.e.f. 23.10.2015)
Mr. Sanjay Dey (Company Secretary)
Enterprises over which Key Management Adhunik Alloys & Power Limited
Personnel / Share Holders / Relatives have Adhunik Infotech Limited
significant influence Adhunik Industries Limited
Adhunik Corporation Limited Adhunik Meghalaya Steels Private Limited Adhunik Steels Limited Amuel Engineering Private Limited Futuristic Steels Limited Mahananda Suppliers Limited Neepaz B.C. Dagara Steels Private Limited Swarnrekha Steel Industries Limited Zion Steel Limited
# The remuneration to the key managerial personnel does not include the provisions made for gratuity and leave benefits, as they are determined on an actuarial basis for the Company as a whole.
7. The Board of Directors of the Company in its meeting held on July 22, 2013 has approved to amalgamate Zion Steel Limited (ZSL) with the Company and to amalgamate the the Company (post amalgamation of ZSL) with the wholly owned subsidiary, Orissa Manganese & Minerals Limited, through a composite scheme of amalgamation between ZSL, OMM and the Company (the Scheme) as per the provision of Section 391 to 394 of the Companies Act, 1956. The appointed date of the amalgamation is 1st July 2012. The scheme has been approved by the Shareholders and Creditors of the above Companies in their meeting held on 19th and 20th April 2014 respectively and the Official Liquidator, Orissa High Court, Cuttack has submitted its report dated 17th July 2014 that the affairs of the Company appears to have not been conducted in a manner prejudicial to the interest of its members or to public interest and the Hon'ble High Court may consider to pass order as deemed fit and proper in that manner. Upon effectiveness of the Scheme, every shareholder of ZSL holding 17 (seventeen) fully paid-up equity shares of '10/- each shall be entitled to receive 1 (one) fully paid-up equity shares of Rs,10/- each in the Company and every shareholder of the Company (post amalgamation of ZSL) holding 1 (one) fully paid-up equity shares of Rs,10/- each shall be entitled to receive 1 (one) fully paid-up equity shares of Rs,10/- each in
the wholly owned subsidiary, Orissa Manganese & Minerals Limited.
8. The Company is in process of appointing Chief Financial Officer to comply with the provision of The Companies Act, 2013.
9. Section 2(41) of the companies Act 2013 requires all companies to have their financial year ending on 31st March. The Company has adopted this change from the current financial year and accordingly, the current financial year of the company is for nine month period from 1st July 2015 to 31st March 2016 (herein after referred as "Year ended 31st March 2016"). Accordingly, the figure for the current financial year are not comparable to those of the previous year.
10. Previous year figures including those given in brackets have been rearranged where ever necessary to conform with the current year classification.
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