Kishan M. Mehta Co. - Mangalam Alloys...

K i s h a n M. M e h t a & Co. CHARTERED ACCOUNTANTS

Independent Auditor's Report

To the Members of

MANGALAM ALLOYS LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of MANGALAM ALLOYS LIMITED ("the Company"), which comprise the Balance Sheet as at March 31, 2015, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ('the act') with respect to the preparation of these financial statements that give a true and fair view of the financial position , financial performance and cash flow of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with rule 7 of Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of .the risks of material misstatement of the financial statements, whether due to fraud or error. In making those r ~ s k

\ '7. *

61h Floor, Premchand House Annexe, Ashram Road, Ahmedabad - 380 009. (India) Ph. : 91-79-26581570, 66055570, Fax . 91-79-66311570 E-mail : [email protected]

K i s h a n M. Mehta & Co. CHARTERED ACCOUBM'ANTS

assessments, the auditor considers internal financial control relevant to the Company's preparation of the financial statements, that give a true and fair view, in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accountirlg estimates made by company's Directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to prov~de a basis for our audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally _

accepted in lndia of the state of affairs of the company as at 31" March, 201 5 and its Profit and Cash Flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order, 201 5 ("the Order") issued by the Central Government of lndia in terms of sub-section (11) of section 143 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order.

2. As required by section 143(3) of the Act, we report that: a) we have sought and obtained all the information and explanations which to the best

of our knowledge and belief were necessary for the purpose of our audit;

b) in our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books

c) the Balance Sheet, the Statement of Profit and Loss and cash flow statement dealt with by this Report are in agreement with the books of account.

d) in our opinion, the aforesaid financial statements, comply with the applicable Accounting Standards referred to under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules 2014

e) on the basis of written representations received from the directors as on March 31, 2015, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2015, from being appointed as a director in terms of section 164(2) of the Act.

f ) In our opinion and to the best of our information and according to the explanations given to us, we report as under with respect to other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014::

6th Floor, Premchand House Annexe, Ashram Road, Ahmedabad - 380 009. (India) Ph. : 91-79-26581570, 66055570, Fax . 91-79-66311570 E-mail : kishanmmehtacoOgmail.com

K i s h a n M. M e h t a & Co. CHARTERED ACCOUNTANTS

(i) The company has disclosed the impact if any, of pending litigations in its financial statements- Refer Note No. 25 and 37 to the financial statements.

(ii) The Company did not have any long-term contracts including derivative contracts; as such the question of commenting on any material foreseeable losses thereon does not arise .

(iii) There has not been an occasion in case of the Company during the year under report to transfer any sums to the Investor Education and Protection Fund. The question of delay in transferring such sums does not arise .

FOR, KISHAN M. MEHTA & CO. Chartered Accountants. Firm's Registration No. 105229W

h AHMEDABAD. ( U. P. BHAVSAR ) D A T E D21st May, 2015. Partner.

M.No.43559

6th ~ h o r , Premchand House Annexe, Ashram Road, Ahmedabad - 380 009. (India) Ph. : 91-79-26581570, 66055570, Fax - 91 -79-6631 1570 E-mail : kishanmmehtacoQgmail.com

K i s h a n Me M e h t a & Co. CHARTERED ACCOUNTANTS

ANNEXURE TO THE AUDITORS' REPORT

(Referred to in paragraph 1 of our report of even date)

(i) a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets;

b) As explained to us, the fixed assets have been physically verified by the management in reasonable interval and no material discrepancies have been noticed on such verification.

(ii) a) The inventory has been physically verified by the management during the year at reasonable intervals.

b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

c) The Company is maintaining proper records of inventory. In our opinion, discrepancies noticed on physical verification of stocks were not material.

(iii) The company has not granted any loan, secured or unsecured, to companies, firms or other parties covered in the register maintained under section 189 of the Act.

(iv) In our opinion and according to the information and explanation given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business of with regard to purchases of inventory and fixed assets and sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control system.

(v) The company has not accepted any deposits from public within the meaning of the provisions of Section 73 to 76 of the Companies Act,2013 and rules made thereunder.

(vi) We have broadly reviewed the books of account maintained by the company pursuant to the rules made by the Central Government of India, regarding the maintenance of cost records under sub section 1 of section 148 of the companies Act, 2013 and are of the opinion that prima facie, the prescribed accounts and records have been maintained. We have, however not made a detailed examination of the records with a view to determine whether they are accurate or complete.

6th Floor, Premchand House Annexe, Ashram Road, Ahmedabad - 380 009. (India) Ph. : 91 -79-26581570, 66055570, Fax - 91 -79-6631 1570 E-mail : kishanmmehtacoQgmail.com

Kishan M. Mehta & Co.

(vii) a) According to the information and explanations given to us and the records examined by us, the company is regular in depositing with appropriate authorities the undisputed statutory dues including Provident Fund, Employees' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and any other material statutory dues applicable to it.;

b) According to the information and explanations given to us and based on the records of the company examined by us, no disputed amount payable in respect of dues of Income Tax, Wealth Tax, Service Tax, Sales Tax, Duty of Customs, Duty of Excise, Value Added Tax and Cess were in arrears as at 31'' Match , 201 5 for a .period of more than six months from the date they became payable.

c) There has not been an occasion in case of the Company during the year under report to transfer any sums to the Investor Education and Protection Fund. The question of reporting delay in transferring such sums does not arise

(viii) There are no accumulated losses of the Company as on 31/3/2015. The company has not incurred cash losses during the financial year covered by our audit and in the immediately preceding financial year.

(ix) In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to bank and financial institutions. The company has not issued debentures.

(x) According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks and financial institutions.

(xi) According to the information and explanations given to us and in our opinion the term loan raised have been applied for the purpose for which they were raised.

(xii) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statement and as per the information and explanations given by the management, we report that no fraud on or by the Company has been noticed or reported during the course of our audit.

KISHAN M. MEHTA & CO. Chartered Accountants. Firm's Registration No. 105229W

lAhf-4- AHMEDABAD. ( U.P.BHAVSAR ) D A T E D:2lst May,2015. Partner.

6th Floor, Premchand House Annexe, Ashram Road, Ahmedabad - 380 009. (India) Ph. : 91-79-26581570, 66055570, Fax : 91-79-66311570 E-mail : kishanmmehtacoOgmail.com


Balance Sheet as at 31st

Particulars

I. EQUITY AND LIABILITIES Shareholder's Funds

(a) Share Capital (b) Reserves and Surplus

Non-Current Liabilities (a) Long Term Borrowings (b) Deferred Tax Liabilities (Net) (c) Other Long Term Liabilities (d) Long Term Provision

Current Liabilities (a) Short Term Borrowings (b) Trade Payables (c) Other Current Liabilities (d) Short term provisions

Total II.ASSETS

Non-current assets (a) Fixed assets

(i) Tangible assets (ii) Intangible assets (iii) Capital work-in-progress

(b) Non-current investments (c) Deferred Tax Rssets (Net) (d) Long term Loans and Advances (e) Other non-current assets

Current Assets (a) Current investments (b) Inventories (c) Trade receivables (d) Cash and Bank Balances (e) Short-term loans and advances (f) Other Current Assets

Total

Significant accounting policies & Notes to the financial statements 1

As per our report attached For and on behalf of Board of Directors For KISHAN M. MEHTA & CO. Chartered Accountants Firm's Registration No. 105229W 7- (Tushar Mehta)

Managing Director DIN 00187046

@N M. MEHTA 6 v1 (U.P. BHAVSAR) AHMEDABAD-S

(Lokeshkumar Jain) Partner Director M.No.43559 DIN 001 86623

AHMEDABAD: 21st May, 2015 AHMEDABAD: 20th May, 201 5

(Amount in Rs.) As at 31st March

2014

65,951,000 174,205,249 240,156,249

94,846,867 26,476,943

2,259,611 123,583,421

360,064,486 183,736,649 65,664,381 9,920,004

61 9,385,520

983,125,190

228,689,644 167,198 819,143

229,675,986

7,906,458

8,830,396 36,024,430 52,761,285

338,709,483 258,694,563

9,109,861 82,874,213 11,299,799

700,687,919

983,125,190

March, 2015

Note No.

'1' '2'

'3' '4'

'5'

'6'

'7' '8'

'9' g(a)

9(b)

'10'

'1 1' '12'

'13' '14' '15' '16' '1 7'

to 39 are

As at 31st March 2015

69,076,000 202,119,398 271,195,398

1 19,424,942 24,952,312

3,086,968 147,464,222

426,335,809 200,704,015 22,150,446 13,925,860

663,116,130

1,081,775,750

224,452,048 466,027

224,918,075

7,005,104

8,666,856 36,024,430 51,696,391

281,615,485 429,748,187

9,667,294 69,990,187 14,140,132

805,161,284

1,081,775,750

accompanying


(Amount in Rs.) For the year ended 31st March 2014

1,414,001,269 2,514,568

1,416,515,837

961,646,250 (58,214,143) 55,303,212

354,718,937 31,564,413 50,507,174

1,395,525,843 20,989,994

429,179 20,560,815

20,560,815

9,535,000 (3,256,921)

354,485

13,928,252 6,595,100 6,595,100

13,928,252 10

2.1 1

Statement of Profit and Loss for the year ended 31st March, 2015

Significant accounting policies 8 Notes to the financial statements 1 to 39 are accompanying

As per our report attached For and on behalf of Board of Directors For KISHAN M. MEHTA 8 CO. Chartered Accountants Firm's Registration No. 105229W

Managing Director DIN 00187046

(U.P. BHAVSAR) Partner Director M.No.43559 DIN 00186623

AHMEDABAD: 21st May, 2015 AHMEDABAD: 20th May, 2015

Particulars

Revenue Revenue from operations Other Income

Total Expenses:

Cost of materials consumed (Increase)/Decrease in Inventory of Stock in Trade Employee Benefit Expense Other Expenses Depreciation and amortization expense Financial costs

Total Profit before exceptional and extraordinary items and tax

Exceptional Items ( Refer Note 37) Profit before extraordinary items and tax Extraordinary ltems

Profit before tax Tax expense: (1) Current tax (2) Deferred tax (3) Prior year Income Tax

Profit for the period No. Of equity shares at the end of the year Weighted No. Of equity shares at the end of period Profit for calculation of E.P.S. ( Rs.) Nominal value of Equity shares (Rs.) Earning per equity share:

(1) Basic 8 Dilluted

Note No.

'18' '1 9'

'20' '21' '22' '23'

'24'

For the ended 31st March 2015

1,517,448,993 3,362,631

1,520,811,624

91 1,474,001 75,911,704 54,518,326

358,512,605 27,476,121 57,893,560

1,485,786,318 35,025,306

551,354 34,473,952

34,473,952

13,500,000 (1,211,793)

513,247

21,672,498 6,907,600 6,601,093

21,672,498 10

3.28

I MANGALAM ALLOYS LIMITED

Isiqnificant Account in Policies:

(a) Basis of Accounting: The financial statements have been prepared under the historical cost convention, on accrual basis, in accordacne with the generally accepted accounting principles (GAAP)

India and applicable Accounting Standards referred to under section 133 of the companies act 2013 read with rule 7 of the companies (Accounts) rules 2014

[b) Fixed Assets:

Fixed Assets are stated at cost of acquisition less accumulated depreciation.

{c) Depreciation I Amortisation

Depreciation on tangible fixed assets 1s provided for on the basis of straight line method as per the useful life specified in Schedule-ll of the Companies

Act. 201 3 on pro rata basis.

Depreciation on intangible assets is provided on straight line metod over the esitmated useful life of 3 year on prorata basis

ld) lm~airment of Assets :

The carrying amount of assets is reviewed at each balance sheet date to determine whether there is any indication of impairment of assets.lf any

indication exists, the recoverable amount of such assets is estimated. An impairment loss is recognized whenever the carrying amount of an assets or its

cash generating unit exceeds its recoverable amount.

(e) Inventories:

Raw materials. Finished goods.semi-finished goods and consumaMes and stores & spares are stated at lower of cost and net realisable value. Cost is

calculated on weighted average basis except consumables and stores & spares on FIFO basis.

(0 Investments:

Investments are stated at cost. Provision for diminution in the value of long term investments is made, only if, such a decline is other than temporary in

nature in the opinion of the management.

1 (Q) Retirement Benefits:

1) Contribution to provident fund and provision for leave encashment is charged to profit & loss Account.

I I ' 2) Provision for gratuity liabilty is made based on actuarial valuation as at the Balance Sheet date and is charged to profit 8 loss account I

3) All other short term benefits for employees are recognised as an expense at the undiscounted amount in the Statement of profit & loss of the year in

which the related service is rendered.

(h) Excise Dutv :

Liability for excise duty in respect of materials lying in factory1 bonded premises are accounted for as and when they are clearedldebonded and

accordingly liabilities in respect of such materials at the close of the year is not provided for in accounts and correspondingly not included in the valuat~on

of inventories of such materials.

li) Preliminary Expenses :

Preliminary expenses are charged to revenue

I I (1) Borrowinq Cost:

Fixed asset which necessarily takes substantial period of time to get ready for its intended use is qualifying asset. Borrowing costs that are attributable to

I I the acquisition or construction of such qualifying assets are capitalised as part of the cost of such assets. All other borrowing costs are recognized as

expense in the period in which they are incurred.

at the end of the year otherthan covered by forward exchange contract are translated at the exchange rate prevailing at the end of the year and difference

is adjusted to profit 8 loss account. The exchange gain or loss between forward exchange contract rate and exchange rate at the date of transaction are

recognised in profit and loss account over the life of the contract.

1

(1) Treatment of Export Entitlement Benefits:

Export entitlenient benefitstin respect of scheme of the Exim policy, are accounted for on the basis of entitlement against eligible exports made during

(k) Foreign Currencv Transactions :

Transactions in foreign currency are accounted for at the exchange rate prevailing on the date of transactions. Assets and liabilities remaining unsettled

I the year.

(m) Taxes on income:

a) Tax on income for the current period is determined on the basis of estimated taxable income computed in accordance with the provisions of the

Income Tax Act.1961.

b) Deferred tax is recognized on timing difference between the accounting income and the estimated taxable income for the period and quantified using the

tax rates and laws enacted or substantively enacted as on the balance sheet date.

Ic) Deferred tax assets are recognized for timing differences of items other than unabsorbed depreciation and carry forward losses only to the extent that there is reasonable I certainity that sufficient future taxable income will be available against which deffered tax asset can be realized. But, if there are unabsorbed depreciation and carry forward of

losses, deffered tax assets are recognized only if there is vitual certainity that sufficient future taxable income will be available to realize deffered tax assets.

n) Use of Estimates :

The presentation of financial statements requires certain estimates and assumptions.These estimates and assumptions affect the reported amounts of

assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.Differences

between the actual results and estimateds are recognized in the period in which the results are known I materialized.

Jo) Provisions. Contingent Liabilities and Contingent Assets

Provision involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and that

probability requires an oufflow of resources.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources. Where there is a possible obligation or a present in respect of which the likelihood of oufflow of resources is remote, no disclosure is made Contingent assets are neither recognised nor disclosed in financial statements.

1(p) Accounting policies not specifically referred to are consistent with generally accepted accounting practices. I NOTES FORMING PART OF FINANCIAL STATEMENTS

NOTE : '1' SHARE CAPITAL As at 31st March 2015 As at l i s t March 2014

Rs. Rs. PP

AUTHORISED :

70,00,000 (70.00.000) Equity

Shares of Rs. 101-each 70,000.000 70,000,000

70,000,000 70,000,000 - P

ISSUED, SUBSCRIBED AND PAID-UP:

69,07,600 (65,95,100) Equity Shares of Rs.10

each fully paid up 69,076.000 65,951,000

69,076,000 65,951,000

Figure in brackets pertains to previous year

1.1 Reconciliation of the Equity shares outstanding at the beginning and at the end of year

1.3 TermslRights attached to Shares :

Each holder of Equity Shares of face value of Rs.10 each is entitled to one vote per share. The dividend is declared and paid on

being proposed by the Board of Directors after the approval of the Shareholders in the ensuing Annual General Meeting.

Particulars

Shares outstanding at the beginning of the year

Shares Issued during the year

Shares bought back during the year

Shares outstanding at the end of the year

1.2 Details of shareholders holding more than 5% shares in the company

In the event of liquidation of the company the holders of equity shares will be entitled to remaining assets of the company after

payment or distribution of all liabilities. The distribution to equity share holders will be in propotion to the number of Equity Shares held

by the Shareholders.

sr,

No.

1

2

3

4

5

6

7

NOTE : '2' RESERVES AND SURPLUS

Share Premium

As per last year

Add : During the Year

General Reserve

As on 31st March, 2015

As per last year

Less : Transfer of Depreciation (Refer Note 38)

Nos.

6,595,100

312.500

6,907.600

As on 31st March, 2014

Name of Shareholder

Pushpadevi Uttamchand Mehta

Uttamchand Chandanmal Mehta

Shelja Finlease Pvt.Ltd.

Tribhuvan Lease Finance Pvt. Ltd.

Green Star Financial Services Pvt. Ltd.

TPL Finance Ltd.

Richgold Finance & Securities Ltd.

Capital Reserve

As per last year

Rs.

65,951,000

3,125,000

69,076,000

Nos.

6,595.100

6,595,100

As at 31 March 2014

ProRtl(Loss)

As per last Balance Sheet

Rs . 65.951.000

65,951,000

As at 31 March 2015

No. of Shares held

608,650

851,000

331,700

2,364,650

336.000

420.000

380.000

No. of Shares held

608,650

851,000

331.700

2,489,650

336,000

420,000

380,000

% of Holding

9.23

12.90

5.03

35.85

5.09

6 37

5.76

% of Holding

8.81

12.32

4.80

36.04

4.86

6.08

5.50

Term loan from Financial Institution in Note 3A (Il)(a) above is payable in Monthly installments of which 77 are of Rs. 5,80,000/- each and last 78th

of Rs. 3,40,000/- after a moratorium period of 6 months from date of first disbursement with interest subject to variation during the tenure of of loan.

I

Term Loan from Finacial Institution in Note 3A(ll)(b) above is payable in monthly installments of which 40 are of Rs. 8.25 Lacs each and Balance 8

are of Rs. 8.75 Lacs each after a moratorium period of 36 months from first disbursement with rate of interest 15.50%

Term loan from bank In Note 3 A(i) above comprising of 2 different loans each payablemonthly installment of Rs.4,50,000/- and 6,94.000/- with

varying interest rate linked to Base Rate of Bank from time to time.

Terms o f repayment For Loan from Bank and Finance company In Note 3A(iii) i s as Follows : I I I I

Maturity

F.Y.2016-17

F.Y.2017-18

F.Y.2018-19

Total

Monthly lnstalment

Loan from Body Corporate in 3 B (i) above is repayable after 31st march.2016 with interest @ 9 % pa . for Rs. 65,00,000/- and interest @ 12% p.a

for Rs. 2,80,93.781/-

i

301,395

336.267

245,528

883.190

31,970 1 29,410 1

Terms of repayment For Loan from NBFC In Note 3A(iv) is as Follows :

Loan from Directors in 3 B (ii) above is repayable after 31st march,2016 with interest @ 9 % p.a. except interest free loan of Rs. 6,40.000/-

Maturity

F.Y.2016-17

F.Y.2017-18

F.Y.2018-19

Total

Monthly lnstalment

Rate of Interest

NOTE : '4' DEFERRED TAX LIABILITIES (NET)

ii

281,234

313,018

198,681

792,933

Rate of Interest

i

2,412,449

2,823,859

1,587,720

6,824,029

276.982

15.85%

a) Deferred Tax Liability:

Total

582.629

649.285

444,209

1.676.123

Depreciation

11%

b) Deferred Tax Assets:

Others

11%

Deferred Tax Liability (Net) I

As at 31st March 2015 1 As at 31st March 2014

Rs.

Leave Encashment

NOTE : '6' SHORT TERM BORROWINGS

(a) Secured

I Secured from Bank

Working Capital

Buyer's Credit

Bill Discounting

Bills Payable

(Working Capital, Buyer's Credit, Bill discounted and Bills Payable are

secured by entire stocks, book debts and all current assets and ceding

subservient charge in favour of lender in note 3 (ii) (b) above and collaterally

secured by residual value of fixed assets charged for term loan as primary

security &charge over three flats, building at Plot No. 3122 GlDC Chhatral

Gujarat and office premises owned by a director and further guaranteed by

the three directors o f the company.)

As at 3 l s t March ZOI!

Rs.


Rs.

294,847,449

65,217,037

NOTE : '7' OTHER CURRENT LIABILITIES As at 31st March 2015

(a) Current maturities of Long Term debts

Term Loan from Bank

Term Loan from Financial Institution

Loan From Bank

Loan From NBFC

(b) Interest Accrued but not due on borrowings

(c) Others Payables

Statutory Liabilities

State Bank of India Current Account

(Since Cheques Not Cleared)

Advances from Customers

Total

As at 31st March 2014 1 Rs.

NOTE : '8' SHORT TERM PROVlSlONS As at 31st March 2015 As at 31st March 2014

8 1' Prov~s~on of Income Tax 1s made after conslderlng depreclatlon, deduct~on and allowances allowable under Income Tax Regulations , * \

4"- -.\/ -* ', '.,c

'& 5

Gratuity

Leave Encashment

Income Tax

Total

Rs.

389,621

36,239

13,500,000

13,925,860

Rs.

348.802

36,202

9,535,000

9,920,004

qote '9' Fixed Assets , , ,

PARTICULARS

I (a) TANGIBLE ASSETS

Land

Buildings

Plant and Equipment

Furniture and Fixtures

Office Equipments

Vehicles

1 Capital Work-in- Progress

i Total

Intangible Assets

Total '

As AT 1 ADDITIONS DISPOSALS

0110412014

AS AT TRANSFER DURING RECOUPED AS AT

0110412014 TO GENERAL THE YEAR 3110312015

RESERVE

NET BLOCK

I


Rs.

2.000

1,010,000

350,000

8,870,444

NOTE : '10' Non Current Investments

( As valued,verified 8 certified by the management )

Trade Investments - Non Quoted

Associate

(a) Unison Alloys 8 Steel Pvt. Ltd.

200 ( 200 )Equity Shares of Rs. 10 each fully paid

Othen

(a) 101000 (101000) Equity Shares of Universal

Metal Co. Ltd. of Rs.10 each fully paid

Nil (3500) 9% Redeemable Pref. Shares of

Universal Metal co. Ltd. of Rs. 1001- each fully paid

(b) Investment in capital contribution in Mangalam

Steel 8 Alloys Ltd. Vietnam

I


Rs.

2,000

1,010,000

8,870,444

NOTE : '12' OTHER NON-CURRENT ASSETS

( Unsecured, considered good )

Trade Receivable (Refer Note No 37)

Total

Less : Adjustment for value of Investments

(Refer Note No. 37)

As at 31st March 2014 Rs.

1,340,000

3,190,196

2,304,904

245,296

1,750.000

8,830,396

I

2,877,340 2,325,986

Total 7,005,104 7,906,458

NOTE : '11' LONG TERM LOANS AND ADVANCES


Capital Advances

SecuritylEarnest Money Deposits

Advances to Others

Less : Prov~sion for Doubtful Advances

VAT Receivable

Excise Duty

Total


36,024,430

36,024,430


3,461,946

2,195,610

1,259,300

1.750.000

8,666,856

2,195,610

As at 31st March 2014 Rs .

36.024.430

36,024,430

2,843,673

(538,769)

-- As at f i s t March 2014

Rs .

51.272.924

46,952.288

197.725.621

42,758,650

338,709,483


Rs .

, 69,533,470

19,506,695

149,259.510

43,315,809

281,615,485

- NOTE : '13' INVENTORIES

(As verified, valued and certified by management)

(a) Raw Materials ( Including Goods-in-transit Rs.Nil I- Pr Yr- Rs.5.88.9021-)

(b) Work-in-progress

(c) Finished Goods

(d) Stores & Spares ( Including Goods-in-transit Rs.13,4701- Pr Yr- Rs.N;I/-)

Total

13.1 Method of Valuation of inventory is lower of cost or net realizable value


Rs .

20,108,298

238,586,265

258,694,563

NOTE : '14' TRADE RECEIVABLES

Unsecured and considered good

(a) Debts outstanding over six months from the due

date for payment

(b) Other Debts Total


Rs.

24,588,100

405,160,087

429,748.1 87

NOTE : '15' CASH AND BANK BALANCES

(i) Cash &Cash Equ~valents

(a) Cash on hand

(b) Balances with Banks In Current Accounts

(ii) Other bank balance

fixed Deposit as margin for commitment.

Total


Rs .

223,525

984,228

8,459,541

9,667,294


Rs .

671.606

329.742

8,108,513

9,109,861


SecurityIEarnest Money Deposits

Exc~se Duty

VAT

S e ~ ~ c e Tax

Custom Duty

Income Tax

Advances to Creditors

Advances to Others

Prepaid Expenses

Staff Walfare Society

NOTE : '18' REVENUE FROM OPERATIONS

(a) Sale of Products

Sale of Stainless Steel Products

Flat

Roundbar

Brightbar

Others

As at 3 l s t March 2014

Rs .

1,377.748

9,704.063

217,988

11,299.799

NOTE : '17' OTHER CURRENT ASSETS

Accrued Income

Export Benefits

Insurance Claim Receivable Total

(b) Sale of Services

Job Work Receipt

As at 3 l s t March 2015

Rs.

254.663

13,885,469

14,140,132

(c) Other Operating Income

Export Benefits

Testing Charges

Vatav Kasar

31st March, 2014

Ra

NOTE : '19' OTHER INCOME

31st March 2015 31st March, 2014

Rs. Rs.

Interest

Profit on Sale of Assets

Liability Written back 724,310 Total

NOTE : ' 20' COST OF MATERIAL CONSUMED

Opening Stock

Add : Purchase

Scrap and Ferro Alloys

Ingots

Others

Less : Closing Stock

Consumption

Total

31st March 2015

Rs.

31st March, 2014

Re

NOTE : '21' (Increase)/ Decrease in Inventory of Stock in Trade

31st March 2015

Rr

JARlATlON IN STOCK:

Opening Stock of:

Semi-finished Goods

Finished Goods

Less: Closing Stock of

Semi-finished Goods

Finished Goods

(Increase)/ Decrease in Inventory of Stock in Trade

31st March, 2014 I Rs.

NOTE : '22' EMPLOYEE BENEFIT

Salaries & Wages

Executive Director Remuneration

Contributions to Provident and Other Funds

Staff Welfare Expenses

31st March 2015

Total

31st March, 2014

Rs.

46,087,802

3,948,442

4,365,812

901,156

55,303,212

31st March, 2014

Rs.

90.000

30.000

45,000

26.500

23a Payment to Auditors

Audit fee

Company Law Matter

Taxatlon Matters

Other Services & Reports

Total (Excluding Service Tax)

31st March 2015

Rs .

90,000

36,000

37,500

30,000

NOTE : '24' FINANCIAL COSTS

Interest

Exchange Rate Variations

193,500

- -

NOTE : '27' In the opinion of the Management, the assets other than Fixed Assets and Non Current Investments have a reallsable value, in the ordinary course of business, approaximately of the amount at which they are stated in these financial statements. Balances of parties are subject to confirmation.

191,500

50,507,174

3 ls t March 2015

Rs.

59.738.492

(1,844,932)

31st March, 2014

Rs.

51,585,095

31-03-2014

16,123,244

11,836,100

1,603,300

7,955,696

2.705.321

NOTE : '25' Contingent liabilities i n respect of :

Bank Guarantees Rs.

Letters of Credit Rs.

Disputed Electricity Liability Rs-

Disputed Custom DutylExcise DutyNAT in Appeal Rs.

Legal suits bylagainst the company Rs.

31-03-2014

6,402.81 6

NOTE : '26' The estimated amount of Capital

Commitment

The estimated amount of Capital

Commitment Rs.

31-03-2015

19,009,404

11,248,100

1.603.302

7,955,696

3,714,519

31-03-2015

lndigeneous

31-03-2014

1,750,935

392.822

5.243.115

360,336

994,151

NOTE : '28' Expenditure in foreign currency on account of :

Travelling Expense Rs.

Bank Charges Rs.

Legal 8 Proff. Fees Rs.

Commision Rs.

Others Rs.

31-03-2015

21 0,983

753.602

1,866,338

4.790.634

191,747

31-03-2014

116,714,072

1,783,799

123,770

NOTE : '29' C.I.F. value of Imports :

Raw Materials

Consumable Stores

Capital Goods

31-03-2015

125,306,619

1,197,336

4,038,500

31-03-2014

139,289.437

14.48

822,356.813

85.52

961,646,250

100.00

: Composition of Raw Materials consumed 8 percentage ( O h )

Imported Rs.

O h

Rs.

O h

Total

O h

31-03-2015

743,499,082

15.74

7157,974,920

84.26

91 1,474,001

100.00

31-03-2014

207.933.546

NOTE : '31' Earning in foreign exchange on account of:

Direct Export calculated on F.O.B. basis

31-03-2015

519.850.287

NOTE : '32' The disclosure under Micro, small and medium Enterprise Development Act, 2006 in respect of the amounts payable to such enterprises as at

I 31st March, 2015 has been made in the financials statements based on information received and on the basis of such information the amount

due to small and medium enterprises is Nil 1- as on 31st March, 2015. No interest is paid or payabie to such enterprises. Auditors have relied

on the same.

- - - - -- - -

NOTE : '33' Retirement benefit plan

a ) Defined Contribution Plan

The Company made contribution towards provident fund to a defined contribution retirement benefit plan for qualifying employees. The provident fund

plan is operated by the Regional Provident Fund Commissioner. The company Recognized Rs.26,78,927/- for provident fund contributions in the profit

& loss account. The contributions payable to these plans by the company are at rates specified in the rules of the scheme.

b ) Defined Benefit Plans

The Company made provision for gratuity liability which is un funded.The scheme provides forpayment to vested employees at

retirement, death while in employment or on termination of employment of an amountequivalent to 15 days salary payable for each

completed year of service or part thereof in execess of six months. Vesting occurs upon completion of five years of service.

The present value of the defined benefit obligation and th related current service cost were measured using the Projected Unit Credit

method as per actuarial valuation carried out at the balance sheet date.

The following tables sets out the status of the gratuity plan as required under AS-15 and the amounts recognized in the company's

financial statements as at 31st March, 2015.

i) Chanae in present value of obliaations :

Obilgations at beginning of the year

Service cost

Interest cost

Net Acturial ( gain ) / loss

Benefits paid

Obilgations at the end of the year

ii) Reconciliation of Present Value of Obliqation and the falr value of plan assets :

Present value of the defined benefit obligation at the end of the year

Less : Fair value of plan assets

Unfunded status amount of liability recognized in the balance sheet

iii) Gratuity cost of the vear :

Servlce Cost

Interest cost

Net Actuarial (gain) / loss

Net gratuity cost charged to profit & loss

iv) Assumptions :

Discount rate

Annual increase in salary costs

NOTE : '34' Related Party disclosure,as required by Accounting Standard-18, is as below :

- - --

- a) List of related parties as per Accounting Standard-18

(i) Associates I Enterprises having significant influence :

Tribhuvan Lease Finance Pvt. Ltd.

(ii) Key Managerial person 8 their relatives

U.C. Mehta, Lokesh Jain, Tushar Mehta, Megha Mehta

b) The following transactions were carried out with related parties in the ordinary

course of business :

Type of relation

Sr.

No.

1

- - I l l V n s e c u r e d Loan Taken

2

1 4 1 Unsecured Deposits repaid back

Particulars

Remuneration to Key Management Personnel

(C r) (Cr

Interest Paid a (i) 8 (ii) 394,575

1 a (i) 8 (ii) 1 13,330,000 1

lOTE : '35' The Manangement is of the opinion that as on the Balance sheet date, there are no indications of material impairment loss

on Fixed Assets, hence, the need to provide for impairment loss does not arise.

ship

a (ii)

OTE : '36' There is only one segment " Stainless steel Products" and therefore other disclosure requirement of Accounting Standard 17 for Segement reporting

does not apply.

OTE : ;37 ' Investment in Mangalam Steel 8 Alloys Ltd (MSAL), incorporated in Vietnam for manufacturing of Stainless Steel products in which company has 10% stake. Dur in~

e year the MSAL is not an associate under accounting standard 18-"Related party disclosures" as there is no participation in the financ~al and I or operating policy decisions ol

SAL. Due to losses, mismanagement by working director (General Director) at Vietnam and disputes 8 deadlock in Management, the plant is closed during financial year 201 1.

112 and one of the creditor of MSAL has filed petition in provincial court Bing Duong at Vietnam in 2012-2013. Due process of law in the aforesaid procedings including to solve

e dead lock is moving. Considering the position and circumstances or otherwise also after taking into appreciation in market value of land and loss or diminution in value of assets

MSAL, company expect that receivables as appearing in Note '12' of Rs. 3,60,24.430/- from MSAL are good but consequently diminution in value of Investment of Rs. 28.77.3401-

Is. 23.25.9861-) is provided in the value of non- current investment as appearing in Note '10' amounting of Rs. 88.70,444/- (Rs. 88.70.4441-).

Transactions during the year I~a lance Outstanding as on

Current Year

31/3/2015

4,808,739

31/3/2015

197,635

Previous Year

31/3/2014

4,460,842

31/3/2014

103,052

] -

NOTE ,38 ' Pursuant to Companies Act,2013 ( The Act ) effectwe from Aprll 01. 2014 the company has rev~sed deprec~at~on rates on flxed assetsbased

on useful llfe speclf~ed ~n schedule II of the Act As a result of the change, the depreclatlon charge for the year ended March 31 2015 IS lower

by RS 3 936.963 I- IS lower In respect of assets whose useful lhfe IS already exhausted as on Aprll 01 2014 sum of Rs 633,349

I-( net of deferred tax) has been adjusted agalnst the openlng balance of general reserve In these flnanclal statements In accordance wlth Schedule II

of the Act

NOTE '39' Prevlous year's flgures have been regrouped or rearranged wherever considered necessary

Slgnlflcant Accounting Pol~c~esINotes to F~nanclal Statements "1 to 39"

As per our report attached

For KISHAN M MEHTA 8 CO For and on behalf of Board of Directors

Chartered Accountants

Flrm's Reglstratlon No 105229W

Managlng Dlrector

DIN 00187046

& - 5 l

(U P BHAVSAR) (Lokeshkumar Jam)

.. - Partner ---* "2- '. Dlrector

M No 43559 DIN 00186623

AHMEDABAD 21st May, 2015 AHMEDABAD 20th May, 2015

Inflow (Outflow) 201 3-2014

205.61

31 5.64 505.07 (21.82)

4.29 (1.90)

1,006.89

(219.48) (594.09) 209.70 403.03

(1 97.50) 205.53

(3.54) 201.98

( I 60.09)

6.44

21.82

(1 31.83)

435.35 (505.07) (69.72)

0.42

9.59

10.01


CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2015.

A. CASH FLOW FROM OPERATING ACTIVITIES : Net Profit before taxation and extraordinary items Adjustments for : Depreciation Interest Paid Interest Received Dimunition in value of investment Profit On Sale of assets OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES Adjustment for : Trade 8 Other receivables Inventories Trade Payables CASH GENERATED FROM OPERATIONS Income Tax Paid CASHFLOW BEFORE EXTRAORDINARY ITEMS Prior Year's Adjustment NET CASH FLOW FROM OPERATING ACTIVITIES

B. CASH FLOW FROM INVESTING ACTIVITIES : Purchase of fixed assets

( including Capital Work in progress ) Saleldeduction in fixed assets SalelRedemption of Non current investment Interest Received

CASH USED IN INVESTING ACTIVITIES

C. CASH FLOW FROM FINANCING ACTIVITIES : Proceed from Issue of share capital Proceed from long term Borrowings 8 Working Capital Finance Interest Paid NET CASH SURPLUS IN FINANCING ACTIVITIES

D. NET INCREASE(DECREASE) IN CASH AND CASH EQUIVALENTS

E. Opening Cash and cash equivalent

F. Closing cash and cash equivalent

As per our report attached

For KISHAN M. MEHTA 8 CO. For and on behalf of Board of Directors Chartered Accountants Firm's Registration No.105229W

DIN 00187046

(u.P. BHAVSAR) ihl -= G-"-- Partner M.No.43559

ET- (Lokeshkumar Director Jain)

C ' 4 ~ T ~ ~ E 3 f i YNT@' DIN 00186623

AHMEDABAD: 21st May, 2015 AHMEDABAD: 20th May, 2015

( Rs.in Lakhs )

Inflow (Outflow) 2014-201 5

344.74

274.76 578.94 (16.51)

5.51 (9.87)

1 ,I 77.57

(1,611.97) 570.94

(256.78) (1 20.25)

(95.35) (215.60)

(5.13) (220.73)

(250 02)

23.25 3.50

16.51

(206.76)

100 00

908.49 (578.94) 429.56

2.06

10.01

12.08

Kishan M. Mehta Co. - Mangalam Alloys...

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