BALAJI INDUSTRIAL CORPORATION LIMITED
28th
Annual Report 2011-2012
BALAJI INDUSTRIAL CORPORATION LIMITED
TWENTY EIGHTH ANNUAL GENERAL MEETING Board of Directors
M Sreenivasulu Reddy V. Saravanan P. Kamalakar Reddy
Auditors
P A Reddy & Co., Chartered Accountants CNGSN & Associates Chartered Accountants
Bankers
Indian Bank Tamilnad Mercantile Bank Ltd Oriental Bank of Commerce Ltd IDBI Bank Ltd (United Western Bank Ltd) ICICI Bank Ltd
Registered Office & Works
Chemudugunta Village Venkatachalam Mandal Nellore District Andhra Pradesh Pin code 524 320
Corporate Office
New No.17/1, Old No.9, Bazullah Road, T Nagar Chennai 600 017
Registrar and Share Transfer Agent
Cameo Corporate Services Limited “Subramanian Building” No.1, Club House Road Chennai 600 002
1
BALAJI INDUSTRIAL CORPORATION LIMITED
CONTENTS Page Notice
:
3
Directors’ Report
:
5
Report on Corporate Governance
:
8
Auditors’ Report
:
13
Balance Sheet
:
18
Statement of Profit and Loss
:
19
Cash Flow Statement
:
20
Notes on Financial Statements
:
21
2
BALAJI INDUSTRIAL CORPORATION LIMITED NOTICE OF THE TWENTY EIGHTH ANNUAL GENERAL MEETING NOTICE is hereby given that the Twenty Eighth Annual General Meeting of BALAJI INDUSTRIAL CORPORATION LIMITED will be held at the Registered office of the company at Chemudugunta Village, Venkatachalam Mandal, Nellore District - 524 320, on Saturday, September 29, 2012 at 4.00 P.M to transact the following business: ORDINARY BUSINESS 1.
To receive, consider and adopt the Audited Statement of Profit and Loss Account for the financial year ended on March 31, 2012 and the Balance Sheet as at that date and the reports of the Directors and the Auditors thereon.
2.
To appoint a Director in the place of Shri V Saravanan who retires by rotation and being eligible, offers himself for re-appointment.
3.
To appoint Auditors and to fix their remuneration. In this connection to consider and if thought fit, to pass with or without modification the following resolution as Special Resolution. “RESOLVED THAT pursuant to the provisions of section 224A and other applicable provisions, if any, of the companies Act, 1956 the retiring Auditors, M/s P A Reddy & Co., Chartered Accountants, and M/s CNGSN & Associates, Chartered Accountants, be and are hereby appointed as Auditors of the company to hold office from the conclusion of this Annual General Meeting until the conclusion of the next Annual General Meeting on a remuneration as may be decided by the Board of Directors.”
SPECIAL BUSINESS 4.
To consider and if thought fit, to pass with or without modification the following resolution as an Ordinary Resolution. "RESOLVED THAT Shri. P Kamalakar Reddy, whose term of office as an Additional Director of the Company expires at this Annual General Meeting and in respect of whom the Company has received a notice under Section 257 of the Companies Act, 1956 from a member proposing his candidature for the office of the Director, be and is hereby appointed as a Director of the Company, whose period of office will be liable for retirement by rotation.” By Order of the Board For BALAJI INDUSTRIAL CORPORATION LIMITED
Place : Chennai Dated: 25th May, 2012
M. SREENIVASULU REDDY DIRECTOR
NOTES 1.
A Member entitled to attend and vote at the meeting is entitled to appoint a proxy to attend and vote instead of himself and the proxy need not be a member of the Company.
2.
The instrument appointing proxy, in order to be effective should be lodged at the Registered Office of the Company not less than 48 hours before the meeting. A blank proxy form is enclosed.
3.
Members, who hold shares in dematerialised form, are requested to bring their depository account number (Client ID No.) for easier identification and recording of attendance at the Meeting.
4.
The Register of Members and Share Transfer Books of the Company will remain closed from 26.09.2012 to 29.09.2012 (both days inclusive)
5.
Members are requested to send queries, if any, on the accounts, at least seven days prior to the date of the meeting, so that the requisite information can be made available at the meeting.
6.
Explanatory statement pursuant to section 173(2) of the companies Act, 1956 in respect of the Special Business set out in the Notice is annexed hereto. 3
BALAJI INDUSTRIAL CORPORATION LIMITED ANNEXURE TO NOTICE EXPLANATORY STATEMENT AS REQUIRED UNDER SECTION 173(2) OF THE COMPANIES ACT, 1956 Item No.4 Mr. P Kamalakar Reddy was appointed as additional director of the company. He vacates office at the commencement forth coming annual general meeting. Board recommends his reappointment. None of the Directors of the company is interested in the resolution. By Order of the Board For BALAJI INDUSTRIAL CORPORATION LIMITED
Place : Chennai Dated: 25th May, 2012
M. SREENIVASULU REDDY DIRECTOR
4
BALAJI INDUSTRIAL CORPORATION LIMITED DIRECTORS’ REPORT TO THE SHAREHOLDERS Your Directors have pleasure in presenting their TwentyEighth Annual Report together with the Audited Accounts of the Company for the Financial Year ended March 31, 2012.
217(1)(e) of the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 is given in the Annexure-1.
1.
Shri R Ravi Kumar resigned from the Board with effect from 20/10/2011. Board records their appreciation for the services rendered by him during his tenure as director of the company.
7. DIRECTORS:
Summary of Financial Results (Rs. in Crores)
The financial results of the company for the year ended 31.03.2012 are given below: (` in Crores) S.No. Particulars 1
Profit/(loss) before tax
2
Tax expense
20011-12
2010-11
(5.98)
1.61
(0.10)
(0.16)
0.34
(0.22)
(a) Deferred Tax (b) Earlier years tax 3.
Profit/(Loss) for the year
(6.22)
2.00
4.
Basic & diluted EPS
(9.92)
(7.67)
Shri V Saravanan, director of the company, retires by rotation at the forth coming annual general meeting and being eligible offers himself for reappointment. Board recommends his re-appointment. Shri. P Kamalakar Reddy was appointed as an additional director of the company with effect from 20/10/2011 and he vacates office at the commencement of the forth coming Annual General Meeting and the Board recommends his re-appointment as a regular director and liable to retire by rotation.
2. DIVIDEND: As the company incurred losses during the year no dividend is recommended.
8.
PARTICULARS OF EMPLOYEES:
During the year, there were no employees drawing remuneration as per limits specified under section 217 (2A) of the Companies Act, 1956, read with Companies (Particular of Employees) Rules, 1975.
3. FUTURE OUTLOOK / PLANS: Your Company could not restart various closed operations due to lack of funds and litigations. The entire future planning depends on the decision of AAIFR and the financial support and co-operation of the Banks / Financial Institutions.
9.
DIRECTORS' RESPONSIBILITY STATEMENT:
Pursuant to the requirement under Section 217 (2AA) of the Companies Act, 1956 with respect to Directors' Responsibility Statement, it is hereby confirmed:
4. APPEAL TO AAIFR: The Hon’ble Board for industrial and Financial Reconstruction (BIFR) has declared your company as a Sick industrial company within the meaning of Clause (o) of the sub-section (1) of the Section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985 vide its order dated 07.03.2007 and IFCI was appointed as Operating Agency (OA) under section 17 (3) of the Act with directions to prepare a revival scheme for the company. After several hearings, the Board had directed on 14th September 2011 for change of Management of the company. Aggrieved by the order of the Board the company had appealed before the Appellate Authority for Industrial Financial Reconstruction (AAIFR) against the order of the Board for change of management. The appeal had been admitted by the AAIFR. The AAIFR had granted stay order against BIFR order on 22nd December 2011on deposit of Rs. 3 crore with IFCI (OA). In compliance with order, the company deposited Rs.3 crore with IFCI on 11th January, 2012. The case is now pending before AAIFR.
i)
that in the preparation of the annual accounts for the year ended March 31, 2012 the applicable accounting standards had been followed along with proper explanation relating to material departures;
ii)
that in the accounting policies implemented by the Company have been applied consistently, judgements and estimates have been reasonable and prudent thereby giving a true and fair view of the state of affairs of the Company at the end of the year and of the loss of the Company for the year under review;
iii) that the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; iv) that the annual accounts were prepared for the year ended March 31, 2012 on a 'going concern' basis. 10. Listing of Shares with the Stock Exchanges
5. INDUSTRIAL RELATIONS:
The shares of your Company are listed with the following Stock Exchanges:
Your Company maintains harmonious industrial relations at all levels in the organization. It will be the constant endeavour of your Company to continue to maintain the good industrial climate.
The Hyderabad Stock Exchange Limited The Madras Stock Exchange Limited
6. ENERGY, TECHNOLOGY, FOREIGN EXCHANGE:
The Stock Exchange, Mumbai
Information in accordance with the provisions of Section
The Stock Exchange, Ahmedabad 5
BALAJI INDUSTRIAL CORPORATION LIMITED position to ascertain whether the deposit along with interest has been adjusted towards dues of the Bank or deposit lies as such. [Refer Sl No.4(f)(d) of Auditor’s Report].
Trading of company's equity shares was suspended from Trading in Mumbai Stock Exchange due to non compliance of Clause 41 of the Listing Agreement and non-payment of Listing Fees. VI.
11. Auditors M/s P A Reddy & Co., Chartered Accountants, Nellore and M/s CNGSN & Associates, Chartered Accountants, Chennai Auditors of the company hold office until the conclusion of the ensuing Annual General Meeting and are eligible for re-appointment. With respect to the various observations made by the Auditors in their Report, the Board of Directors wishes to express the following views: I
Your company has been incurring losses over the years hence the company was not in a position to redeem the preference shares / debentures on the due dates and is looking at negotiating with the bankers. [Refer Sl No.4(e) of Auditor’s Report].
III
Your company proposes to take up negotiations as per the proposed scheme submitted to Operating Agency for waiver / concessions in interest / principle in respect of some loans from banks / Financial Institutions / other lenders where payment of interest / principle is in arrears. The Company has settled majority of the loans to banks and institutions outstanding through one time settlement. [Refer Sl No.4(f)(b) of Auditor’s Report].
IV.
V.
VII. The Company has extended Corporate Guarantees to the Group Companies and one guaranty given by the Company has been invoked. The Company is confident that as per the Settlement Scheme offered by the Group Company to their lenders, the amount due as per the guarantee will be adjusted/settled. Hence, the Company has not made any provisions for the same. [Refer Sl.No.4(f)(f) of Auditor’s Report].
It has been a consistent practice of the Company to account for gratuity / leave encashment payments as and when they arise. The Company has settled Gratuity payments to the outgoing and closed division employees and there are no dues to any of the employees as of now. However, the company will also ascertain the liability to employees and shall be included in the Rehabilitation scheme. [Refer Sl No.4(d)(i) & 4(f)(a) of Auditor’s Report].
II
Your company proposes to take up negotiations as per the proposed scheme submitted to Operating Agency for waiver / concessions in interest / principal in respect of some Hire Purchase Agreements where payment of interest / principal is in arrears. The Company has settled majority of the Lenders outstanding through one time settlement scheme. [Refer Sl No.4(f)(e) of Auditor’s Report].
VIII. The Company is confident that the loans availed from banks and Financial Institutions will be restructured on mutual discussions with the lenders. As such, the existing securities offered by the Company to the various lenders will be adequate to the proposed liabilities included in the scheme. [Refer Sl.No.4(f)(g) of Auditor’s Report].
The Company has already closed most of the bank accounts, which are inoperative over the years. Some of the bank accounts have been attached by Income Tax Department. Hence the Company is not in a position to close such accounts. However, the necessary steps will be taken to close the accounts which are not in operation over the years. [Refer Sl No.4(f)(c) of Auditor’s Report].
IX.
The effect of Audit qualifications has been summarized. [Refer Sl No.4(f)(h) of Auditor’s Report].
X.
As regards to the undisputed Income Tax & Sales Tax, the company has appealed before various forums and the company is confident that would be in its favour. The company is seeking certain reliefs / concessions from Central / State Government. [Refer Sl No. ix(b)&(c) of Annexure to Auditor’s Report].
14. Corporate Governance A Report on Corporate Governance along with Auditor's Certificate is annexed herewith. 15. Acknowledgement The Board hereby acknowledge the support from various Government Departments and their Agencies, Hon’ble BIFR, Financial Institutions, Banks, Shareholders, Debenture Holders and Customers. The Directors have pleasure in placing on record their heartfelt appreciation to all the Employees of the Company.
As informed in earlier years, with respect of deposit of Rs.2.40 lakhs with IDBI Bank (Erstwhile United Western Bank Limited), the Bank has filed a case in DRT for recovery of dues. We are not in a
By Order of the Board For BALAJI INDUSTRIAL CORPORATION LIMITED
Place : Chennai Dated: 25th May, 2012
M. SREENIVASULU REDDY DIRECTOR 6
BALAJI INDUSTRIAL CORPORATION LIMITED Annexure - I Particulars Required under the Companies (Disclosure of Particulars in the Report of the Board of Directors), Rules 1988 Form A (See Rule 2) Form for the disclosure of particulars with respect to conservation of Energy. (A) Power and Fuel Consumption
Current Year 20011-2012
Previous Year 2010-2011
Units Rs. Rs.
4,769,565 22,232,962 4.66
5,289,570 21,934,261 4.15
Units Rs.
Nil Nil Nil Nil
Nil Nil Nil Nil
2. Coal (Specify quality and where used) Quantity Total Amount Average Rate
M.T Rs. Rs.
5,163.783 25,054,740 4,852.01
3,981.246 18,831,025 4,729.93
3. Furnace Oil Quantity Total Amount Average Rate
Ltrs Rs. Rs.
457,674 16,926,136 36.98
282,761 7,555,032 26.72
MT. Rs. Rs.
Nil Nil Nil
Nil Nil Nil
M.T.
1.114
1.120
Units M.T. Ltrs
317 0.34 30.39
337 0.25 18.00
Nil Nil Nil Nil Nil
Nil Nil Nil Nil Nil
Nil 19875
Nil Nil
1. Electricity a) Purchase Units Total Amount Rate / Unit b) Own Generation (i) Through Diesel Generator Units (KWH) Units per Ltr. of Furnace Oil Average Cost / Unit (ii) Through Steam Turbine / Generator
4. Others (Please give details) Quantity Total Amount Rate / Unit (B) Consumption per Unit of Production 1. Products a) Rolling Division i) Ingots, Billets 2. Electricity a) Rolling Division 3. Coal (Specify quality) 4. Furnace Oil (Specify quality)
TECHNOLOGY ABSORPTIONRESEARCH & DEVELOPMENT Specific Area in which R & D is carried out by the Company Benefits derived as a result of above R &D Future plan of action Expenditure on R & D Efforts made towards technology absorption etc. Foreign Exchange Earnings & Outgo Foreign exchange earnings Foreign exchange outgo
$ $
7
BALAJI INDUSTRIAL CORPORATION LIMITED MANAGEMENT DISCUSSION AND ANALYSIS REPORT REPORT ON CORPORATE GOVERNANCE FOR THE FINANCIAL YEAR ENDED 31.03.2012 The report on Corporate Governance forms part of the Directors Report. 1) COMPANY'S PHILOSOPHY ON CODE OF GOVERNANCE The essential elements of Corporate Governance are fairness, transparency, accountability and responsibility to which your Company continues to remain committed. The Company will endeavor to improve on these aspects on an ongoing basis. 2) BOARD OF DIRECTORS a) Composition and Category of Directors are as follows: Category Promoter / Executive Director Non-Executive and Independent Directors
Name of the Directors Shri M Sreenivasulu Reddy Shri V Saravanan Shri P Kamalakar Reddy
b) Number and the dates on which the Board Meetings were held Seven Board Meetings were held during the last financial year. The dates on which the meetings were held are 05.05.2011; 04.07.2011; 29.07.2011; 11.08.2011; 23.08.2011; 28.09.2011; and 16.02.2012. c) Attendance of each Director at the Board Meetings, Last Annual General Meeting and Number of other Boards / Board Committees in which he is a Member or Chairperson. Sl No
Name of the Director Attendance Particulars
No. of other Directorships and Committee Membership / Chairmanships
Board Meetings
Last AGM
Other Directorship
Other Other Committee Committee Membership Chairmanship
1
M Sreenivasulu Reddy
5
No
6
2
-
2
V Saravanan
7
Yes
10
2
2
3
P Kamalakar Reddy
6
No
9
2
-
4.
R Ravikumar
-
No
8
-
-
d) Particulars of Retiring Directors Shri V Saravanan is a Director of the company since 11.08.2011. V Saravanan has about 18 years of experience in company affairs. He is a Director in 10 other Companies. Board recommends his re-appointment. 3) AUDIT COMMITTEE The functioning and terms of reference of the Audit Committee are as prescribed under section 292A of the Companies Act, 1956 and the Listing Agreement with the Stock Exchanges including their role, powers, duties, quorum and frequency of the meeting. The Audit Committee comprises of 3 members viz., M Sreenivasulu Reddy, V Saravanan and P Kamalakar Reddy. V Saravanan acts as Chairman of the audit committee. During the year, the committee met four times on 5.05.2011; 29.07.2011; 28.09.2011; and 16.02.2012. Attendance of each member at the committee meeting was as follows: Committee Members M Sreenivasulu Reddy V Saravanan P Kamalakar Reddy
No. of Meetings attended 4 4 4 8
BALAJI INDUSTRIAL CORPORATION LIMITED 4. REMUNERATION COMMITTEE None of the Directors get any remuneration. No remuneration committee was constituted, as the same was not required. The Remuneration Committee shall be formed as and when necessary. 5. SHARE TRANSFER/INVESTORS GRIEVANCE COMMITTEE The Share Transfer / Investor’s Grievance Committee comprises of 3 members M Sreenivasulu Reddy, V Saravanan and P Kamalakar Reddy. V Saravanan acts as Chairman of the Committee. During the year, the Committee met 10 times on 19/04/2011, 04/06/2011, 19/07/2011, 10/08/2011, 30/09/2011, 25/10/2011, 22/11/2011, 20/12/2011, 21/01/2012, 31/03/2012 and attendance of each member at the Committee Meeting was as follows: Committee Members M Sreenivasulu Reddy V Saravanan P Kamalakar Reddy
No. of Meetings attended 10 10 10
As on 31.03.2012, there were no pending share transfers and there are no investor grievance complaints pending against the company. 6. ANNUAL GENERAL MEETINGS Locations and time for the last three Annual General Meetings held: Year Location AGM Day 2008 - 09
2009 - 10
2010 - 11
Chemudugunta Village Venkatachalam Mandal Nellore - 524 320. Chemudugunta Village Venkatachalam Mandal Nellore - 524 320. Chemudugunta Village Venkatachalam Mandal Nellore - 524 320.
Date
Time
AGM
Wednesday
30.09.2009
2.30 p.m
No. of Special Resolutions 2
AGM
Monday
27.09.2010
4.00 p.m
1
AGM
Wednesday
28.09.2011
12.p.m
1
Postal Ballot : No Special Resolution was passed through postal ballot during the period. No Special Resolution on matters requiring postal ballot is placed before the shareholders at the forthcoming 28th Annual General Meeting. 7. DISCLOSURE a) During the year ended 31.03.2012, the Company had no materially significant related party transactions other than those mentioned in the Notes on Accounts as is envisaged under the Corporate Governance Code that may have potential conflict with the interest of the Company at large. b) There has not been any non-compliance, penalties or strictures imposed on the Company by the stock exchanges, SEBI or any other statutory authority, on any matter related to capital markets, during last year, except Non-Compliance of Clause 41 of the Listing Agreements. c) Currently company’s equity shares are suspended from trading in Mumbai Stock Exchange. d) The company has laid down procedures to be followed by the members of the Board and senior management Personnel for ethical professional conduct. A declaration signed by the Director to this effect is annexed thereto. 8. MEANS OF COMMUNICATION The Company has not yet started sending the half-yearly report to each shareholder but if any shareholder seeks any information then the same is provided by the company. 9
BALAJI INDUSTRIAL CORPORATION LIMITED 9. GENERAL SHAREHOLDERS INFORMATION 1) Date, time and venue of 28th AGM
:
Saturday, September 29, 2012, at 4.00 p.m at the Registered Office of the Company at Chemudugunta Village, Venkatachalam Mandal, Nellore District, Andhra Pradesh 524 320..
2) Financial Calendar
:
Year ending 31st March 2012
3) Date of Book Closure
:
26.09.2012 to 29.09.2012 (both days inclusive)
4) Dividend payment date
:
No Dividend is being recommended
5) Listing on Stock Exchanges
(i)
The Hyderabad Stock Exchange Ltd 6-3-654, Somajiguda, Hyderabad 500 082 Tel: 91-40-23371701/23435444/455 Fax:91-40-23371696
(ii)
Madras Stock Exchange Limited Exchange Building, Post Box NO.183 11, Second Line Beach Road, Chennai 600 001 Tel:91-44-25228951, 25224382,25224392 Fax:91-44-25244897
(iii)
The BSE Limited Phiroze Jheejheebhoy Towers, Dalal Street, Mumbai 400 001 Tel:91-22-22721233/4, Fax:91-22-22721919
(iv)
The Stock Exchange, Ahmedabad Kamdhenu Complex, Near Polytechnic Panjara Pole, Ahmedabad 380 015. Tel:91-79-6307971-7977 Fax:91-79-6308877
6) Listing fees
:
Listing Fees not paid
7) ISIN No.
:
INE455A01018
8) Market Price Data Currently our company’s equity shares are suspended from trading in BSE Limited, Mumbai. 9) Registrar and Transfer Agents (Common Agency for both physical & electronic transfers)
:
Cameo Corporate Services Limited Subramanian Building, No.1, Club House Road Chennai 600 002. Tel:91-44-28460390 (6 lines) Fax:91-44-28460129 Email:
[email protected] Website: www.cameoindia.com
10) Share Transfer System
:
Presently the share transfers which are received in physical form are processed and the share certificates are returned within the stipulated period from the date of receipt, if the documents are clear in all respects.
11) Dematerialisation of shares and liquidity :
As on 31.03.2012, 71.63 % of the Company's shares representing 37810453 shares were held in the dematerialised form. The Company's shares are available for trading in the depository systems of both the National Securities Depository Ltd (NSDL) and Central Depository Services (India) Ltd (CDSL).
12) Compliance Officer
:
V Saravanan, Director Balaji Industrial Corporation Limited No.9, Bazullah Road, T Nagar, Chennai 600 017.
13) Outstanding GDR/ ADR/Warrants or any convertible instruments
:
The Company has not issued any GDRs/ADRs/Warrants.
10
BALAJI INDUSTRIAL CORPORATION LIMITED 14) Plant Locations
:
Unit: Steel Manufacturing Division Chemudugunta Village, Venkatachalam Mandal, Nellore District.
15) Address for Communication
:
Balaji Industrial Corporation Limited Corporate Office: New No.17/1, Old No.9, Bazullah Road, T Nagar, Chennai 600 017. Phone No.044-28158866 E mail Id:
[email protected]
16) Distribution of shareholding as on March 31, 2012: Share holding of Nominal value of Share holders Rs. Rs. Number % to Total (1) (2) (3) 10
5,000
79.01
11916490
2.26
5,001
10,000
827
10.16
7239130
1.37
10,001
20,000
415
5.09
6860070
1.30
20,001
30,000
135
1.65
3553590
0.67
30,001
40,000
62
0.76
2261720
0.42
40,001
50,000
69
0.84
3263230
0.61
50,001
1,00,000
1,00,001 and above Total 17)
6434
Share Amount Rs. % to Total (4) (5)
87
1.06
6360630
1.20
114 8143
1.39 100.00
486366190 527821050
92.14 100.00
Categories of Shareholders as on March 31, 2012: Share holding pattern as on 31.03.2012 Sl. No Category No. of Shares
% to Total Holdings
1
Promoters / Directors / Relatives
108,15,063
20.49
2
Financial Institutions & Banks
17,988,888
34.08
3
Mutual Funds & UTI
1,717,249
3.25
4
FII's / OCB's
132,570
0.25
5
Public and Private Bodies Corporate
22128335
41.93
52,782,105
100.00
Total
The above report was adopted by the Board of Directors at its meeting held on 25th May, 2012.
DECLARATION It is declared a) that the company has laid down a code of conduct for all its Board of Directors and Senior Management Personnel in terms of Listing Agreement. b) that all the Board members and Senior Management Personnel have affirmed compliance with the said code for the period April 1, 2011- March 31, 2012.
Place: Chennai Date : 25th May, 2012
M. SREENIVASULU REDDY DIRECTOR
11
BALAJI INDUSTRIAL CORPORATION LIMITED AUDITORS’ CERTIFICATE ON CORPORATE GOVERNANCE To the Members of Balaji Industrial Corporation Limited We have examined the compliance of the conditions of Corporate Governance by Balaji Industrial Corporation Limited, for the year ended on 31.03.2012 as stipulated in Clause 49 of the Listing Agreement of the said Company with the Stock Exchanges. The compliance of the conditions of Corporate Governance is the responsibility of the Management. Our examination has been limited to a review of the procedures and implementations thereof adopted by the company for ensuring compliance with the conditions of Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company. In our opinion and to the best of our information and according to the explanations given to us, and the representations made by the directors and the management, we certify that subject to:a) non submission of quarterly financial results and limited review reports to stock exchanges; and b) non submission of CEO/CFO Certification to the Board. the company has complied with the conditions of Corporate Governance as stipulated in clause 49 of the above mentioned Listing Agreement. As required by the Guidance note issued by the Institute of chartered Accountants of India, we have to state that based on the report given by the Registrars of the company to Investors Grievance Committee, as on 31.03.2012 there were no investor grievance matters against the company remaining unattended / pending for more than 30 days. We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the management has conducted the affairs of the company.
For M/s. P.A. REDDY & CO Chartered Accountants Regn No.007368S
For M/s. CNGSN & ASSOCIATES Chartered Accountants Regn No.004915S
P. ASHOK REDDY Partner Membership No: 23202
C N GANGADARAN Partner Membership No: 11205
Place: Chennai Date : 25th May, 2012
12
BALAJI INDUSTRIAL CORPORATION LIMITED AUDITORS’ REPORT TO THE MEMBERS OF BALAJI INDUSTRIAL CORPORATION LIMITED 1. We have audited the attached Balance Sheet of “BALAJI INDUSTRIAL CORPORATION LIMITED” (the Company) as at 31st March, 2012, the Statement of Profit and Loss and also the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company’s Management. Our responsibility is to express an opinion on these financial statements based on our audit. 2. We conducted our audit in accordance with the Auditing Standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. As required by the Companies (Auditor’s Report) Order, 2003 (CARO, 2003), as amended by the Companies (Auditor’s Report) (Amendment) Order, 2004 (together the “Order”) issued by the Central Government of India in terms of section 227(4A) of the Companies Act, 1956, we annex hereto a statement on the matters specified in paragraphs 4 and 5 of the said Order. 4. Further to our comments in the Annexure referred to in paragraph 3 above, we report that: a.
We have 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 it appears from our examination of the books.
c)
The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this report are in agreement with the Books of Account.
d)
In our opinion, the Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the companies Act, 1956, to the extent applicable and subject to: (i)
Non-Provision for actuarially ascertained liability for future payment of gratuity and leave encashment to employees, which is not in accordance with the Accounting Standard –15 issued by the Institute of Chartered Accountants of India;
e.
The company has defaulted in redemption of debentures for a period of more than one year. All the Directors are disqualified from being appointed as Directors in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.
f)
In our opinion and to the best of our information and according to the explanations given to us, the said Balance Sheet, Statement of Profit and Loss and Cash Flow Statement read together with the Schedules, the Notes and Accounting Policies give the information required by the Companies Act, 1956, in the manner so required, and in view of our comments in paras (a) to (h) below:(a)
Non provision for actuarially ascertained liability for future payment of gratuity and leave encashment to employees and the effect of such non provision could not be quantified in the absence of information;
b)
Non provision of interest aggregating to `. 4,748.60 lakhs (Previous Year `. 3,978.70 lakhs) payable on loans from banks and financial institutions as a result of which the loss for the year is understated by `. 4,748.60 lakhs (profit of the previous year is overstated by `. 3,978.70 lakhs) and the accumulated losses are understated by `. 24,488.76 lakhs (previous year by `. 19,740.17 lakhs) and the loans from banks and financial institutions are understated by the like amount;
c)
In respect of 7 accounts in various banks standing in the name of the company, in the absence of detailed bank statements and confirmation of balances, we are unable to comment on the transactions, if any, passed through these accounts;
d)
In respect of a deposit of `. 2.40 lakhs (Previous Year `. 2.40 lakhs) with IDBI Bank Ltd (Formerly United Western Bank Ltd)., in the absence of confirmation from the bank, we are of the view that full 13
BALAJI INDUSTRIAL CORPORATION LIMITED provision ought to have been made for doubtful recovery of the deposit and as a result of such nonprovision, the loss for the year is understated by `.2.40 lakhs (profit for the previous year is overstated by `. 2.40 lakhs) and the accumulated losses are understated and the deposits are overstated by the like amount. e)
Non provision for hire purchase charges payable for the year aggregating to `. 698.87 lakhs (previous year `. 570.21 lakhs) and `. 3,303.91 lakhs upto the current year (previous year `. 2,605.04 lakhs) in respect of various hire purchase agreements entered into by the company, and as a result of such non provision, loss for the year is understated by `. 698.87 lakhs (profit for the previous year is overstated by `. 570.21 lakhs), accumulated losses are understated by `. 3,303.91 lakhs (previous year `. 2,605.04 lakhs) and Secured Loans and Unsecured Loans are understated by `. 3,303.91 lakhs (previous year `. 2,605.04 lakhs).
f)
Non provision for the liability devolved on the Company being the Corporate guarantees given on behalf of other bodies corporate, where in recall notices have been served on the Company for principle of `. 1,512.00 lakhs (Previous year `. 1512.00 lakhs) and unquantified interest thereon, and as a result of such non provision, the loss for the year is understated by `. 1,512.00 lakhs plus unquantified Interest there on (previous year – profit is overstated by `. 1,512.00 lakhs plus unquantified interest) and the accumulated losses as at the end of the year are understated and the net current assets are understated by `. 1,512.00 lakhs plus unquantified interest. (Previous year `. 1,512.00 lakhs plus unquantified interest)
g)
Consequent to our Comments in paras (b),(e) and (f) above, the aggregate of loans from Banks and Corporates shown in Short Term Borrowings of `. 5,284.46 lakhs (Previous year `. 5,284.46 lakhs), in our opinion, are not adequately secured and therefore in our view these loans should have been classified as unsecured loans.
h)
Had our observation made as above been considered by the company, the loss for the current year ended 31st March, 2012 would have been `. 7,560.39 lakhs (as against the reported loss figure of `. 598.53 lakhs) , the accumulated losses would have been `. 97,454.11 lakhs (as against the reported figure of `. 68,147.04 lakhs), the net current assets would have been negative at `. 5,876.32 lakhs (as against, the reported negative figure of `. 4,361.92 lakhs), the Secured / unsecured loans, would have been at `. 50,861.73 lakhs (as against the reported figure of `. 23,069.07 lakhs), the net worth would have been negative at `. 54,365.12 lakhs (as against the reported negative figure of `. 25,058.05 lakhs) and the EPS would have been of negative of `. 23.12 (as against the reported negative figure of `. 9.93).
we are unable to express opinion on the true and fairness:i)
In the case of Balance Sheet, of the state of affairs of the Company as at 31st March, 2012 and
ii)
In the case of Statement of Profit and Loss, of the Loss for the year ended on that date.
iii)
In the case of Cash Flow Statement, of the cash flows for the year ended on that date.
For M/s. P.A. REDDY & CO Chartered Accountants Regn No.007368S
For M/s. CNGSN & ASSOCIATES Chartered Accountants Regn No.004915S
P. ASHOK REDDY Partner Membership No: 23202
C N GANGADARAN Partner Membership No: 11205
Place: Chennai Date : 25th May, 2012
14
BALAJI INDUSTRIAL CORPORATION LIMITED ANNEXURE TO THE AUDITORS’ REPORT REFERRED TO PARAGRAPH 3 OF OUR REPORT OF EVEN DATE Based on the information and explanations furnished to us and the books and records examined by us in the normal course of our audit, we report that to the best of our knowledge and belief. i)
In respect of its Fixed Assets: a)
The Company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets.
b) During the year, as per the program of physical verification of all its assets located at different places, the fixed assets have been physically verified in a phased periodical manner by the management, which in our opinion is reasonable having regard to the size of the company and nature of its assets. As explained to us, no material discrepancies have been noticed on such physical verification. c) ii)
iii)
iii)
iv)
No fixed assets were disposed off during the year so as to affect the going concern status of the company.
In respect of Inventories of finished goods, work in process, raw materials and stores and spares: a)
The inventories have been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable.
b)
The procedures of physical verification of inventories 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 inventories. The discrepancies noticed on verification between the physical stocks and the book records were not material and the same have been properly dealt with in the book of account.
1)
In respect of loans, secured or unsecured, granted by the company to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956:
a)
During the year, the company has not granted any loan to any party referred above nor any such loans were outstanding at the end of the year.
2)
In respect of the loans, secured or unsecured, taken by the company from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956:
a)
The company has not taken any loan from new parties. In respect of an outstanding loan from such a party, the outstanding balance at the year end amounted to `. 1910.04 lakhs and the maximum outstanding during the year amounted to `. 1,910.04 lakhs.
b)
Such loan is interest free and is without any terms for repayment and the same, in our opinion, is not prejudicial to the interests of the company.
c)
In the absence of any terms, we are unable to comment on the regularity of repayment of principal amount and payment of interest.
In respect of Internal Control system: a)
The internal control system for sale of goods, purchase of Fixed assets and services rendered by the company are adequate and commensurate with the size of the company and the nature of its business.
b)
The internal control system for purchase of stores, raw materials, plant & machinery, equipments and other assets, are adequate and commensurate with its size and nature of its business.
v)
In respect of transactions entered in the register maintained in pursuance of section 301 of the Companies Act, 1956:
vi)
In respect of acceptance of deposits from the public :
a) a)
vii)
There are no contracts or arrangements during the year that need to be entered in the Register. The company has not accepted any deposits from the public. Therefore, the provisions of Sections 58A and 58AA of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 are not applicable to the Company.
In respect of Internal Audit : a)
In our opinion, the Company has an internal audit system commensurate with the size and nature of its business.
15
BALAJI INDUSTRIAL CORPORATION LIMITED viii)
In respect of maintenance of cost records : a)
ix)
According to the information and explanations given to us, the central government has prescribed maintenance of cost records under section 209(1)(d) of the Companies Act, 1956, for steel products of the Company. We have broadly reviewed such records and are of the opinion that prima facie, the prescribed accounts have been made and maintained in general.
In respect of statutory dues: a)
The company has been generally regular in depositing undisputed dues of Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess, and other applicable statutory dues with the appropriate authorities during the year.
b)
There are undisputed income-tax amounts outstanding as at 31st March, 2012 amounting to ` 932.77 Lakhs (including interest) for a period of more than six months from the date they became payable. The details are as under: Name of the Statute
Nature of Dues
Income Tax Act Income Tax Act Income Tax Act Income Tax Act Income Tax Act Income Tax Act Income Tax Act Income Tax Act Income Tax Act Income Tax Act
Dividend Tax Interest on Dividend Tax Dividend Tax Interest on Dividend Tax Dividend Tax Interest on Dividend Tax Dividend Tax Interest on Dividend Tax MAT Interest on MAT
Total c)
x)
Amount (Rs. in lakhs)
Period to which amount relates
17.62 38.57 43.17 84.11 36.63 62.59 161.14 239.86 100.89 148.19
1996-97 1996-97 1997-98 1997-98 1998-99 1998-99 1999-00 1999-00 1999-00 1999-00
932.77
Dues relating to Sales Tax/Excise Duty/Cess/Service Tax/ Income Tax, which have not been deposited on account of disputes with the related authorities, are stated in the table below: Name of the Statute
Period to which the amount relates
Sales Tax Sales Tax Sales Tax Sales Tax (Paramount) Income tax Income tax Income tax Income tax
1993-94 1994-95 1999-00 1993-94 1999-00 2000-01 1996-97 1997-98
Amount Rs. In Lakhs
Forum where the dispute is pending
3.95 6.15 5.39 17.20 8.28 61.27 192.33 23.67
A.P. High Court A.P. High Court STAT A.P. High Court C.I.T. (Appeals) C.I.T. (Appeals) High Court High Court
In respect of Accumulated Losses : a) The Company’s accumulated losses as at 31st March, 2012 are more than 50% of its net worth and the Company has incurred cash losses during the financial year ended on that date and has not incurred cash losses in the immediately preceding year.
xi)
In respect of repayment of dues to financial institutions, banks and/or debenture holders: a) The Company has defaulted in repayment of certain dues to financial institutions, banks and debenture holders as under. Description
Default continues from the year
Amount (Rs. in lacs)
Debentures
2001-2002
2437.50
Banks
1999-2000
2743.22
Total
5180.72 16
BALAJI INDUSTRIAL CORPORATION LIMITED xii)
In respect of loans and advances granted by the company on the basis of security by way of pledge of shares, debentures and other securities: a) The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.
xiii) In respect of applicability of special statutes: a) The Company is not a chit fund or a nidhi/mutual benefit fund/society. xiv) In respect of dealing or trading in shares, securities, debentures and other investments: a) The company is not dealing in or trading in shares, securities, debentures and other investments. xv)
In respect of guarantees given by the company for loans taken by others from bank or financial institutions: a) The company has given guarantees for loan taken by others from banks or financial institutions and in our opinion the terms and conditions were not prejudicial to the interests of the company at the time when such guarantees were given.
xvi) In respect of term loans : a) The company has not raised any term loans from banks and /or financial institutions during the year. xvii) In respect of utilization of funds raised on short term basis for long term investments: a) On an overall examination of the Balance Sheet of the company, we report that no funds raised on short term basis have been used for long term investment. xviii) In respect of Preferential Allotment of shares : a) According to the information and explanations given to us, during the period covered by our audit report, the company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956. xix) In respect of Debentures : a) In respect of the Debentures issued, proper security by way of second charge on the assets of the Company, have been created. xx)
In respect of Public Issues : a) During the period covered by our audit report, the company has not raised any money by way of public issues.
xxi) In respect of frauds : a) No fraud on or by the company has been noticed or reported during the course of our audit. For M/s. P.A. REDDY & CO Chartered Accountants Regn No.007368S
For M/s. CNGSN & ASSOCIATES Chartered Accountants Regn No.004915S
P. ASHOK REDDY Partner Membership No: 23202
C N GANGADARAN Partner Membership No: 11205
Place: Chennai Date : 25th May, 2012
17
BALAJI INDUSTRIAL CORPORATION LIMITED BALANCE SHEET AS AT MARCH 31, 2012 Particulars I.
Note No.
As at 31.3.2012 (`)
As at 31.3.2011 (`)
2 3
827,821,050 (3,333,626,276)
827,821,050 (3,271,365,604)
(2,505,805,226)
(2,443,544,554)
8,888,231
9,924,182
8,888,231
9,924,182
2,306,906,689 607,720,020 78,693,193 3,075,604
2,361,658,239 527,348,883 74,879,045 3,981,405
2,996,395,506
2,967,867,572
499,478,511
534,247,200
EQUITY AND LIABILITIES Shareholders' Funds (a) Share Capital (b) Reserves & Surplus Non-Current Liabilities (a) Long Term Borrowings (b) Deferred Tax Liabilities (Net)
4
Current Liabilities (a) Short Term Borrowings (b) Trade Payables (c) Other Current Liabilities (d) Short Term Provisions
5 6 7 8
TOTAL II. ASSETS Non-Current Assets (a) Fixed Assets (i) Tangible Assets (ii) In Tangible Assets (iii) Capital Work in Progress (b) Non-Current Investments (c) Long Term Loans and Advances
9
86,156,399
79,724,836
10 11
1,185,250 340,000 158,500,362 246,182,011
6,603,797 340,000 124,757,500 211,426,133
Current Assets (a) Inventories (b) Trade Receivables (c) Cash and Cash Equivalents (d) Short Term Loans and Advances
12 13 14 15
89,578,685 52,397,410 12,046,351 99,274,054 253,296,500
72,477,611 98,750,002 15,293,823 136,299,631 322,821,067
499,478,511
534,247,200
TOTAL Significant Accounting Policies & Notes forming part of the Financial Statements
1 to 41
As per our Report of even date
On behalf of the Board
For P A REDDY & CO Chartered Accountants FRN: 007368S
For CNGSN & ASSOCIATES Chartered Accountants FRN: 004915S
M SREENIVASULU REDDY Director
P ASHOK REDDY Partner Membership No: 23202
C N GANGADARAN Partner Membership No: 11205
V. SARAVANAN Director
Place : Chennai Date : 25th May, 2012 18
BALAJI INDUSTRIAL CORPORATION LIMITED STATEMENT OF PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2012 Particulars
Note No.
I II
Revenue from Operations Other Revenue
III
TOTAL REVENUE (I+II)
IV
EXPENSES: Cost of Materials Consumed Changes in Inventories of Finished Goods Employee Benefits Expense Finance Costs Depreciation & Amortisation Expense Other Expenses
For the year ended 31.3.2011 (`)
685,218,637 765,068
662,225,188 40,542,654
685,983,705
702,767,842
651,142,571 11,240,478 8,653,031 3,144,480 10,463,108 61,193,248
599,455,064 7,262,653 6,162,100 3,207,733 12,871,732 57,652,619
TOTAL EXPENSES
745,836,916
686,611,901
V
Profit Before Tax (III-IV)
(59,853,211)
16,155,941
VI
Tax Expense (1) Current Tax (2) Deferred Tax (3) Earlier years' Tax
(1,035,951) 3,443,412
(1,658,291) (2,262,829)
(62,260,672)
20,077,061
(9.92) 10.00
(7.67) 10.00
VII
16 17
For the year ended 31.3.2012 (`)
18 19 20 21 9 22
PROFIT FOR THE YEAR (V-VI) Earnings per Equity Share Basic & Diluted Face Value of Equity Share
23
Significant Accounting Policies & Notes forming part of the Financial Statements
1 to 41
As per our Report of even date
On behalf of the Board
For P A REDDY & CO Chartered Accountants FRN: 007368S
For CNGSN & ASSOCIATES Chartered Accountants FRN: 004915S
M SREENIVASULU REDDY Director
P ASHOK REDDY Partner Membership No: 23202
C N GANGADARAN Partner Membership No: 11205
V. SARAVANAN Director
Place : Chennai Date : 25th May, 2012 19
BALAJI INDUSTRIAL CORPORATION LIMITED CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2012 Year ended 31.03.2012 A. Cash Flow from Operating Activities Net Profit (Loss) before tax and Extraordinary items Adjustments for Depreciation Interest Income Dividend Income Interest on Borrowings Provision for diminution in Investments
Year ended 31.03.2011
(59,853,211) 10,463,108 (753,548) 3,144,480 -
Operating Profit before working capital changes Adjustments for Trade & Other Receivables Inventories Trade Payable & Other Liabilities
12,871,732 (247,788) (66,000) 3,207,734 50,000 12,854,040
15,815,678
(46,999,171)
31,971,619
55,053,854 (17,101,074) 83,279,484
Cash Generated from Operations Net Prior year expenses Net Cash from / (USED in) operating Activities A B. Cash Flow from investing activities Purchase of Fixed Assets Advance for capital goods (Capital work-in-progress) Interest Received Interest Paid Dividend Received Net Cash from / (used in) investing Activities B C. Cash Flow from Financing Activities Borrowing (Net) OTS Settlement
16,155,941
61,718,677 17,318,156 97,533,508 121,232,264
176,570,341
74,233,093 (3,443,412) 70,789,681
208,541,960 2,262,829 210,804,789
(16,894,672)
(12,121,267)
753,548 (3,144,480) -
(6,603,797) 247,788 (3,207,734) 66,000 (19,285,604)
(54,751,549) -
(21,619,010) (492,592,468) 314,296,037
Net Cash from/(Used in) Financing Activities C Net Increase / (Decrease) in cash and cash equivalents (A+B+C)
(54,751,549)
(178,296,431)
(3,247,472)
10,889,348
Opening Balance of Cash and Cash Equivalents
15,293,823
4,404,475
Closing Balance of Cash and Cash Equivalents
12,046,351
15,293,823
Net Increase / (Decrease) in Cash and Cash equivalents
(3,247,472)
10,889,348
Note : Figures in brackets represent outflows. For P A REDDY & CO Chartered Accountants FRN: 007368S
For CNGSN & ASSOCIATES Chartered Accountants FRN: 004915S
P ASHOK REDDY Partner Membership No: 23202
C N GANGADARAN Partner Membership No: 11205
On behalf of the Board M SREENIVASULU REDDY Director V. SARAVANAN Director
Place : Chennai Date : 25th May, 2012
20
BALAJI INDUSTRIAL CORPORATION LIMITED Note No. 1 : SIGNIFICANT ACCOUNTING POLICIES (i)
BASIS OF ACCOUNTING Financial statements are prepared under the historical cost convention and as a going concern and in accordance with the normally accepted accounting standards.
(ii)
FIXED ASSETS A) TANGIBLE ASSETS Fixed assets are stated at Cost net of Cenvat Credit & VAT Credit less accumulated depreciation. Cost is inclusive of freight, duties, taxes and all directly attributable costs of bringing the assets to their working condition for its intended use. B) INTANGIBLE ASSETS Costs relating to Trade Marks and Designs which are acquired, are capitalized and amortized on a straight line basis over a period of 5 years.
(iii)
EXPENDITURE DURING CONSTRUCTION PERIOD Expenditure incurred during the construction period is included under capital Work-in-progress and will be capitalised when ready for commercial use.
(iv)
BORROWING COSTS Borrowing costs that are attributable to construction of qualifying assets are capitalised as part of cost of such assets till such time the asset is ready for its intended use. A qualifying asset is an asset that requires a substantial period of time to get ready for its intended use. All other borrowing costs are recognized as expenses in the period in which they are incurred.
(v)
DEPRECIATION Depreciation is provided on straight-line basis at the rates specified in Schedule XIV of the Companies Act, 1956, on pro rata basis.
(vi)
INVENTORIES (a) Finished goods are valued at cost or market price whichever is less. Cost includes appropriate share of related overheads and excise duty payable on such goods. (b) Stocks of raw- materials, stores, spare parts, material-in-transit etc., are valued at First-in-First out (FIFO) method. Cost includes expenses of procurement, excise and other duties net of Cenvat Credit.
(vii)
TURNOVER
(viii)
INVESTMENTS
Turnover includes of Sale of Goods, Excise duty net of Trade Discounts and excludes Value Added Tax. Investments are long term and valued at cost. Permanent diminution in value will be recognised in the Statement of Profit and Loss. Income from Investments is recognised in the year in which it accrues and at gross value. (ix)
EXCISE DUTY Excise duty has been accounted on the basis of both payments made in respect of goods cleared as also provision made for goods lying as closing stock.
(x)
RETIREMENT BENEFITS Contribution to defined contribution schemes such as provident fund and family pension fund is charged to Statement of Profit & Loss as incurred. In respect of gratuity, no provision has been made in the accounts for the actuarially ascertained liability for future payment of gratuity. Gratuity payments are charged to Statement of Profit and Loss in the year in which payments are made.
(xi)
FOREIGN CURRENCY TRANSACTIONS (a) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction. (b) The monetary items denominated in foreign currencies at the year-end are translated at the year-end rates. (c) Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Statement of Profit and Loss
21
BALAJI INDUSTRIAL CORPORATION LIMITED . (xii)
TAXES ON INCOME Income Tax is computed in accordance with Accounting Standard – 22 (AS-22) issued by the Institute of Chartered Accountants of India. Tax expenses are accrued in the same period as the revenue and expenses to which they relate. Provision for current income tax is made on the tax liability payable on taxable income after considering tax allowances, deductions and exemptions determined in accordance with the prevailing tax laws. The difference between taxable income and the net profit or loss before tax for the year, as per the financial statements, are identified and the tax effect of the deferred tax asset or deferred tax liability is recorded for timing differences, i.e. differences that originate in one accounting period and reverse in another.
(xiii)
IMPAIRMENT OF ASSETS : Impairment is ascertained at each balance sheet date in respect of the Company’s fixed assets. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing the value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.
(xiv)
ACCOUNTING FOR PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS: Provisions are recognized in terms of Accounting Standard 29-‘Provisions,Contingent Liabilities and Contingent Assets’(AS-29), issued by the ICAI, when there is a present legal or statutory obligation as a result of past events. Contingent Liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made. Obligations are assessed on an on going basis and only those having a largely probable outflow of resources are provided for. Contingent Assets are not recognized in the financial Statements.
22
BALAJI INDUSTRIAL CORPORATION LIMITED NOTES ON FINANCIAL STATEMENTS Note No. 2
Particulars
As at 31.3.2012 (`)
As at 31.3.2011 (`)
SHARE CAPITAL: Authorised : 7,80,00,000 (7,80,00,000) Equity Shares of Rs.10/- each
780,000,000
780,000,000
4,00,00,000 (4,00,00,000) Cumulative Redeemable Preference Shares of Rs. 10/- each
400,000,000
400,000,000
5,27,82,105 (5,27,82,105) Equity Shares of Rs.10/each fully paid up
527,821,050
527,821,050
1,00,00,000 (1,00,00,000) 12.5% Cumulative Redeemable Non-convertible Preference Shares of Rs.10/each fully paid Redeemable at par in October, 2001
100,000,000
100,000,000
50,00,000 (50,00,000) 12.5% Redeemable Cumulative Non-convertible Preference Shares of Rs.10/each fully paid Redeemable at par in October, 2003
50,000,000
50,000,000
1,50,00,000 (1,50,00,000) 6% Redeemable Cumulative Non-convertible Preference Shares of Rs.10/each fully paid Redeemable at par in Feb, 2016
150,000,000
150,000,000
Total
827,821,050
827,821,050
Issued, Subscribed And Paid Up:
(a) All the Equity Shares carry equal rights and obligations including for Dividend and with respect to Voting rights. (b) Reconciliation of the number of equity shares outstanding at the beginning and at the end of the reporting period. As at 31.03.2012 As at 31.03.2011 No. of Shares No. of Shares Equity Shares at the beginning of the year Add: Shares issued during the year Less: Shares cancelled on buy-back Equity Shares at the end of the year
52,782,105 52,782,105
52,782,105 52,782,105
No. of Shares (% held)
No. of Shares (% held)
I.F.C.I. Limited
79,09,371 (14.98%)
79,09,371 (14.98%)
ICICI Bank Ltd
62,01,930 (11.75%)
62,01,930 (11.75%)
M Parvathi
28,89,854 (5.47%)
28,89,854 (5.47%)
(c) Details of Equity Shareholders holding more than 5% shares : Name of Shareholder
(d) Reconciliation of the number of 12.5% Cumulative Redeemable Preference Shares outstanding at the beginning and the at the end of the reporting period. No. of Shares No. of Shares Preference Shares at the beginning of the year 10,000,000 10,000,000 Add: Shares issued during the year Less: Shares cancelled on buy-back Preference Shares at the end of the year 10,000,000 10,000,000 23
BALAJI INDUSTRIAL CORPORATION LIMITED NOTES ON FINANCIAL STATEMENTS Note No.
Particulars
As at 31.3.2012 (`)
As at 31.3.2011 (`)
(e) Details of 12.5% Cumulative Redeemable Preference Shareholders holding more than 5% shares : Name of Shareholder No. of Shares No. of Shares (% held) (% held) Oriential Bank of Commerce
10,000,000 (100%)
10,000,000 (100%)
(f) Reconciliation of the number of 12.5% Redeemable Cumulative Non - Convertible Preference Shares outstanding at the beginning and the at the end of the reporting period. No. of Shares No. of Shares Preference Shares at the beginning of the year 50,00,000 50,00,000 Add: Shares issued during the year Less: Shares cancelled on buy-back Preference Shares at the end of the year 50,00,000 50,00,000 (g) Details of 12.5% Redeemable Cumulative Non Convertible Preference Shareholders holding more than 5% shares: Name of Shareholder No. of Shares No. of Shares (% held) (% held) Oriential Bank of Commerce
50,00,000 (100%)
50,00,000 (100%)
(h) Reconciliation of the number of 6% Redeemable Cumulative Non - Convertible Preference Shares outstanding at the beginning and the at the end of the reporting period. No. of Shares No. of Shares Preference Shares at the beginning of the year 15,000,000 15,000,000 Add: Shares issued during the year Less: Shares cancelled on buy-back Preference Shares at the end of the year 15,000,000 15,000,000 (i) Details of 6% Redeemable Cumulative Preference Shareholders holding more than 5% shares : Name of Shareholder No. of Shares No. of Shares (% held) (% held) Balaji Hotels and Enterprises Ltd.
1,50,00,000 (100%)
24
1,50,00,000 (100%)
BALAJI INDUSTRIAL CORPORATION LIMITED NOTES ON FINANCIAL STATEMENTS Note No.
Particulars
3
RESERVES & SURPLUS
As at 31.3.2012 (`)
As at 31.3.2011 (`)
CAPITAL RESERVE Balance at the beginning of the year Add: Additions during the year Balance at the end of the year
A
2,087,068,487
1,772,772,450
-
314,296,037
2,087,068,487
2,087,068,487
100,000,000
100,000,000
-
-
100,000,000
100,000,000
1,294,009,370
1,294,009,370
-
-
1,294,009,370
1,294,009,370
314,741,319
314,741,319
CAPITAL REDEMPTION RESERVE Balance at the beginning of the year Add: Additions during the year Balance at the end of the year
B
SECURITIES PREMIUM ACCOUNT Balance at the beginning of the year Add: Additions during the year Balance at the end of the year
C
GENERAL RESERVE ACCOUNT Balance at the beginning of the year Add: Transferred from Statement of Profit and Loss Less: Transferred to Statement of Profit and Loss Balance at the end of the year
D
-
-
314,741,319
314,741,319
314,741,319
314,741,319
-
-
(7,067,184,780)
(7,087,261,841)
STATEMENT OF PROFIT AND LOSS Balance at the beginning of the year Add: Profit for the Year after tax
(62,260,672)
20,077,061
Less: Transferred from General Reserve
314,741,319
314,741,319
E
(6,814,704,133)
(6,752,443,461)
(A+B+C+D+E)
(3,333,626,276)
(3,271,365,604)
8,888,231
9,924,182
-
-
8,888,231
9,924,182
Balance at the end of the year TOTAL
4
DEFERRED TAX LIABILITY : Deferred Tax Liability On Account of Depreciation Deferred Tax Asset On Account of Disallowances and Losses carried forward under Income Tax Act
25
BALAJI INDUSTRIAL CORPORATION LIMITED NOTES ON FINANCIAL STATEMENTS Note No.
Particulars
5
SHORT TERM BORROWINGS :
As at 31.3.2012 (`)
As at 31.3.2011 (`)
(1) Secured Loans (a) From Banks Working Capital Loan (Against Hypothecation of Inventories and Book Debts)
274,321,519
274,321,519
Non Convertible debentures
200,000,000
200,000,000
43,750,000
43,750,000
Interest Accured and due (b) Hire Purchase Loan Alpic Finance Limited A
10,375,000
10,375,000
528,446,519
528,446,519
Nature of Security: 1. WORKING CAPITAL LOAN : The Company had availed a Working Capital Loan from Tamilnad Mercantile Bank and IDBI Bank by hypothecation of Inventories and Book Debts. 2. NON CONVERTIBLE DEBENTURES: The company had issued 2,000 Debentures of Rs.1,00,000/each by creating Equitable Mortgage on the Company's Immovable Properties situated at Nellore and Hyderabad by way of Second Charge. 3. INTEREST ACCURED AND DUE : Interest accured and due on Debentures issued. 4. HIRE PURCHASE LOAN : The Company availed the Hire Purchase Loan from Alpic Finance Ltd by way of hypothecation of it's Specific Asset. (2) Un Secured Loans (a) From Banks Indusind Bank (Ashok Leyland)
37,906,672
37,906,672
B
37,906,672
37,906,672
1,740,553,498
1,795,305,048
C
1,740,553,498
1,795,305,048
TOTAL (A+B+C)
2,306,906,689
2,361,658,239
(b) Other Payables From Corporates
26
BALAJI INDUSTRIAL CORPORATION LIMITED NOTES ON FINANCIAL STATEMENTS Note No. 6
Particulars
As at 31.3.2012 (`)
As at 31.3.2011 (`)
TRADE PAYABLES Advances from customers Sundry Creditors : Dues to Micro, Small and Medium Enterprises
-
-
607,720,020
527,348,883
607,720,020
527,348,883
Dues to others: For Supplies and Services 7
OTHER CURRENT LIABILITES T.D.S. Payable
328,611
183,482
Salaries & Wages Payable
411,318
328,029
P F Payable
296,796
308,671
E.S.I. Payable
51,428
112,642
Bonus Payable
640,183
377,858
1,992,379
1,626,675
Penal Interest Payable
Electricity Charges Payable
49,029,815
45,927,023
Dividend tax Payable
25,856,600
25,856,600
86,063
158,065
78,693,193
74,879,045
3,075,604
3,981,405
3,075,604
3,981,405
Other Liabilities 8
SHORT TERM PROVISIONS Provision for Excise Duty on Closing Stock
27
28
350,337,161
Previous Year
352,337,161
PREVIOUS YEAR
2,000,000
Previous Year
364,458,429
2,000,000
TOTAL
TOTAL
2,000,000
As at 1.4.11
Software
DESCRIPTION
INTANGIBLE ASSETS
362,458,429
TOTAL
3,931,365
5,661,851
E.D.P. Equipment
Electrical Installation
5,534,646
13,371,075
Vehicles
Office Equipment
264,288,559
Plant & Machinery
4,114,216
54,860,781
Building
Furniture & Fittings
10,695,936
As at 1.4.11
Land
DESCRIPTION
-
-
Deletions
12,121,267
16,894,672
-
-
Additions
-
-
-
Deletions
GROSS BLOCK
12,121,267
16,894,672
-
37,800
95,800
-
1,114,226
15,646,846
-
-
Additions
GROSS BLOCK
NOTE NO.9 : TANGIBLE ASSETS
NOTES ON FINANCIAL STATEMENTS
364,458,428
381,353,101
2,000,000
2,000,000
2,000,000
As at 31.3.12
362,458,428
379,353,101
3,931,365
5,699,651
5,630,446
4,114,216
14,485,301
279,935,405
54,860,781
10,695,936
As at 31.3.12
12,371,732
9,963,108
23,527
82,489
244,081
260,410
20,880
7,499,371
1,832,350
-
For the year
-
-
Deletions
283,233,592
293,196,702
3,931,344
5,697,695
5,509,357
3,992,264
13,391,925
227,253,394
33,420,723
27,861,860
284,733,594
1,000,000
1,500,000
1,500,000
Upto 31.3.11
12,871,732
10,463,108
500,000
500,000
500,000
For the year
-
-
-
Deletions
-
Up to 31.3.12
284,733,592
295,196,702
1,500,000
2,000,000
2,000,000
Up to 31.3.12
DEPRECIATION / AMORTISATION
26,861,860
283,233,594
3,907,817
5,615,206
5,265,276
3,731,854
13,371,045
219,754,023
31,588,373
-
Upto 31.3.11
DEPRECIATION / AMORTISATION
(In `)
81,475,301
79,224,835
23,548
46,645
269,370
382,362
79,724,836
86,156,399
500,000
-
-
As at 31.3.12
30
44,534,536
23,272,408
10,695,936
As at 31.3.11
82,475,301
79,724,835
1,000,000
500,000
500,000
As at 31.3.11
NET BLOCK
79,224,836
86,156,399
21
1,956
121,089
121,952
1,093,376
52,682,011
21,440,058
10,695,936
As at 31.3.12
NET BLOCK
(In `)
BALAJI INDUSTRIAL CORPORATION LIMITED
BALAJI INDUSTRIAL CORPORATION LIMITED NOTES ON FINANCIAL STATEMENTS Note No.
Particulars
10
NON CURRENT INVESTMENTS
As at 31.3.2012 (`)
As at 31.3.2011 (`)
NON - TRADED-QUOTED - AT COST BALAJI BIO-TECH LTD. 37,85,000 (37,85,000) fully paid Equity Shares of Rs.10/- each- (Market Value - Nil) BANK OF BARODA 4,000 (4,000) fully paid Equity Shares of Rs.10/- each [Market Value - Rs.31,74,600 (Previous Year :Rs.38,52,600)]
173,164,775
173,164,775
340,000
340,000
50,000
50,000
5,000,000
5,000,000
178,554,775
178,554,775
178,214,775
178,214,775
340,000
340,000
34,904,758
4,898,618
NON-TRADED-UNQUOTED - AT COST JEEDIMETLA EFFLUENT TREATMENT LTD. 500(500) Equity Shares of Rs.100/- each fully paid DOTCH SALES PVT LTD 5,000(5,000) Equity Shares of Rs.10/- each fully paid LESS: Provision for Diminution in value of Investments
11
LONG TERM LOANS AND ADVANCES (Unsecured and considered good) (a) Security Deposits (b) Other Loans & Advances
123,595,604
119,858,882
158,500,362
124,757,500
123,595,604
119,858,882
89,018,000
89,018,000
212,613,604
208,876,882
89,018,000
89,018,000
123,595,604
119,858,882
Details of Other Loans & Advances (i) Loans & Advances (a) Un Secured - Considered Good (b) Doubtful Less: Provision for other doubtful Loans and Advances 12
INVENTORIES i) Raw Material
52,342,812
28,707,789
ii) Finished Goods
18,510,777
29,751,256
18,725,096
14,018,566
89,578,685
72,477,611
iii) Stores and Spare Parts
29
BALAJI INDUSTRIAL CORPORATION LIMITED NOTES ON FINANCIAL STATEMENTS Note No.
Particulars
13
TRADE RECEIVABLES (Unsecured and considered good)
As at 31.3.2012 (`)
Debts outstanding for more than six months: Considered Good Considered Doubtful Other debts less than six months: Considered Good Considered Doubtful Less :Provision for Doubtful Debts 14
As at 31.3.2011 (`)
41,204,530 1,718,067
91,697,123 1,718,067
11,192,880 -
7,052,879 -
54,115,477
100,468,069
1,718,067
1,718,067
52,397,410
98,750,002
11,204,301
14,720,262
CASH AND CASH EQUIVALENTS Balance with Scheduled Banks: - in Current accounts - in Deposit accounts Cash on hand
15
240,176
240,176
601,874
333,385
12,046,351
15,293,823
17,251,860
11,477,747
SHORT TERM LOANS AND ADVANCES (unsecured, considered good) (recoverable in cash or in kind or for value to be received) - Balances with Government Authorities Cenvat Credit Receivable Vat Credit Receivable
1,944,122
2,659,545
Loans and Advances
79,387,901
117,303,757
- TDS / TCS Receivable
401,162
4,569,573
- Interest Receivable
223,009
223,009
- Dividend Receivable
66,000
66,000
99,274,054
136,299,631
- Others
30
BALAJI INDUSTRIAL CORPORATION LIMITED NOTES ON FINANCIAL STATEMENTS Note No. 16
Particulars
For the year ended 31.3.2012 (`)
For the year ended 31.3.2011 (`)
REVENUE FROM OPERATIONS - SALE OF PRODUCTS - Sale of Bars - Sale of Scrap - Sale of Empty Bottles Less: Excise Duty
17
508,784,715
10,370,670
27,824,003
122,250,222
171,358,100
740,681,934
707,966,818
55,463,297
45,741,630
685,218,637
662,225,188
753,548
247,788
OTHER INCOME Interest Income Other Income Dividend Income
18
608,061,042
11,520
-
-
66,000
Sales Commission
-
1,628,866
Excess Provision written back
-
38,600,000
765,068
40,542,654
42,726,356
52,781,859
COST OF MATERIAL CONSUMED Opening Stock Add: Purchases Less: Closing Stock
679,484,123
589,399,560
722,210,479
642,181,419
71,067,908
42,726,355
651,142,571
599,455,064
Details of Material Consumed MANUFACTURED GOODS Opening Stock
42,726,356
52,781,859
Add: Purchases
583,990,323
458,864,916
626,716,679
511,646,775
71,067,908
42,726,355
555,648,771
468,920,420
Less: Closing Stock TRADED GOODS Opening Stock Add: Purchases Less: Closing Stock
31
-
-
95,493,800
130,534,644
95,493,800
130,534,644
-
-
95,493,800
130,534,644
BALAJI INDUSTRIAL CORPORATION LIMITED NOTES ON FINANCIAL STATEMENTS Note No. 19
Particulars
For the year ended 31.3.2012 (`)
For the year ended 31.3.2011 (`)
CHANGES IN INVENTORIES OF FINISHED GOODS INVENTORY AT THE END OF THE YEAR Finished Goods
18,510,777
29,751,255
29,751,255
37,013,908
11,240,478
7,262,653
5,929,062
4,624,415
INVENTORY AT THE BEGINNING OF THE YEAR Finished Goods 20
EMPLOYEE BENEFITS EXPENSE Salaries & Wages Contribution to Provident Fund and Other Funds Staff Welfare Expenses
21
731,323
635,956
1,992,646
901,729
8,653,031
6,162,100
38,221
74,274
3,467
1,755
3,102,792
3,102,792
FINANCE COSTS Bank Charges Interest Penal Interest Brokerage
32
-
28,912
3,144,480
3,207,733
BALAJI INDUSTRIAL CORPORATION LIMITED NOTES ON FINANCIAL STATEMENTS Note No.
Particulars
22
OTHER EXPENSES
23
For the year ended 31.3.2012 (`)
For the year ended 31.3.2011 (`)
(a) Power & Fuel (b) Rent (c) Repairs to Building (d) Repairs to Machinery (e) Insurance (f) Rates & Taxes (g) Remuneration to Auditors - Statutory Audit Fee - Tax Audit Fee - Tax Representation & Appeals - For Expenses
22,294,821 585,947 1,319,345 22,867 673,170
21,980,772 602,371 797,443 517,310 86,091 998,848
50,000 150,000 300,000 9,000
50,000 25,000 25,730 11,289
(h) Lease Rentals (i) Excise duty on stocks (j) Contract Labour Charges (k) Service tax (l) Donation (m) Telephone Charges (n) Freight Charges (o) Tours & Travels (p) Bad debts written off (q) Vehicle Maintenance (r) Vehicle Hire Charges (s) Printing & Stationery (t) Professional Charges (u) Advances written off (Net of credit waiver from unsecured loans) (v) Provision for diminution in value of investments (w) Internal Audit Fee & Expenses (x) Advertisement and Publicity (y) Discount given (z) Brokergae / Commission (aa) General Expenses Books & Periodicals Misc., Expenses Security Charges
900,000 3,075,604 15,619,232 43,334 18,232 172,383 2,366,166 1,340,879 26,128 1,116,779 444,284 397,085 3,541,454 4,056,181 726,900 -
900,000 2,787,417 13,400,068 64,774 16,300 472,790 2,421,476 830,374 1,521,183 402,386 240,000 328,840 2,736,311 3,617,769 50,000 157,700 477,661 221,808
27,824 632,174 1,283,459
418,521 1,492,387
61,193,248
57,652,619
EARNINGS PER SHARE Profit After Tax attributable to Shareholders
(62,260,672)
20,077,061
Less: Preference Dividend Payable
461,591,059
424,823,260
(523,851,731)
(404,746,199)
52,782,105
52,782,105
Basic and Diluted Earnings per Share
(9.92)
(7.67)
Face value of the Equity Share
10.00
10.00
Profit After Tax attributable to Equity Shareholders Weighted Average No. of Equity Shares Outstanding as at the end of the year
33
BALAJI INDUSTRIAL CORPORATION LIMITED NOTES ON FINANCIAL STATEMENTS Note No. 24 : NON CONVERTIBLE DEBENTURES Non Convertible Debentures of the face value of ` 20 crores issued to Oriental Bank of Commerce are yet to be redeemed due to paucity of funds. Debenture Redemption Reserve has not been created till date in the absence of operational profits. Note No. 25 : PREFERENCE SHARES The company has not redeemed the preference shares due for redemption in October, 2001 and October, 2003 issued to Oriental Bank of Commerce, due to paucity of funds. Note No. 26 : CONTINGENT LIABILITIES
(`. In lacs) As at 31.03.12
As at 31.03.11
Income-Tax demands against which the department has gone on appeal.
285.56
285.56
Sales-tax demands against which company has gone on appeal.
152.04
153.58
4,245.00
4,245.00
Claims against the company not acknowledged as debts: I) II)
A Sum of `. 119.33 lacs has already been paid/ adjusted against this liability III)
Guarantees issued and outstanding
Note No. 27 : LEGAL CASES Some of the banks/institutions where payment of interest / principal are in arrears, have filed cases against the Company for recovering an aggregate sum of `. 7,948.37 lacs (previous year 7,948.37 lacs) and the same are pending before various courts. The company is negotiating for waiver/concessions in interest/principal. Consequently no provision has been made for interest/charges on such loans. Some of the Non-banking finance companies have filed civil/ criminal cases for recovery of debts and dishonoring of cheques and the same are pending before various courts. Note No. 28 : CASE BEFORE BOARD FOR INDUSTRIAL AND FINANCE RECONSTRUCTION (BIFR) The Hon’ble Board for Industrial and Financial Reconstruction (BIFR) has declared the Company as Sick Industrial undertaking in terms of Sec 3 (1)(o) of the Sick Industrial Companies (Special Provisions) Act, 1985 at it’s hearing held on 12th February, 2007 and IFCI was appointed as Operating Agency (OA) under section 17(3) of the Act with directions to prepare a revival scheme for the Company. After several hearings held before the BIFR, the Board had directed for Change of Management on hearing held on 14th September, 2011. Aggrieved by the order of the BIFR, the Company had appealed before the Appellate Authority for Industrial Financial Reconstruction (AAIFR) against order of the BIFR for Change of Management. The appeal filed before AAIFR had been admitted. The AAIFR had granted a stay order against order of BIFR on 22nd, December, 2011 on deposit of ` 3 cr with IFCI (OA). In compliance with order, the Company deposited ` 3 cr with IFCI (OA) on 11th January, 2012. The case is still pending before AAIFR. Note No. 29 : DEFERRED TAX During the current year, due to timing difference, there has been decrease in deferred tax liability to the tune of `. 1,035,951 Amount in `
Particulars Deffered Tax Liability Excess of Net Block over WDV as per the provisions of the Income-tax Act, 1961 as on 31.03.2012
8,888,231
Excess of Net Block over WDV as per the provisions of the Income-tax Act, 1961 as on 31.03.2011
9,924,182
Reduction in Deferred tax liability during the year
1,035,951
Note No. 30 EARNINGS IN FOREIGN CURRENCY
Export of Goods – FOB Value 34
Current Year `.
Previous Year `.
NIL
NIL
BALAJI INDUSTRIAL CORPORATION LIMITED NOTES ON FINANCIAL STATEMENTS Note No. 31 EXPENDITURE IN FOREIGN CURRENCY Capital Goods
$ 19,875
NIL
50,000 1,50,000 3,00,000 -9,000
50.000 25,000 13,885 11,845 11,289
Note No. 32 PAYMENT TO AUDITORS Statutory Audit Tax Audit Tax representation & appeals Service tax reimbursement Expenses Note No. 33 : SEGMENT REPORTING The company has disclosed business segment as the primary segment. Segments have been identified taking into account nature of products and services, differencing risks and returns, the organisation structure and internal reporting system. The Company's operations predominantly relate to Manufacture of Iron Steel Bars. Other business segments are Trading in Empty Bottles. The company's entire business is in domestic market as such there are no reportable Geographical segments. Segment revenue, Segment results, Segment Assets and Liabilities include the respective amounts identifiable to each of the segments has also amounts allocated on a reasonable basis. The net expenses, which are not attributable to the business segment, are shown as un allocated corporate cost. Assets and liabilities that can't be allocated between the segments are shown as part of un allocated corporate assets and liabilities respectively. Sl.
Particulars
1
Segment Revenue Gross Turnover Less: Excise Duty
2
3
Segment Results before interest and taxes Less: Interest Expenses Add: Interest Income Profit Before Tax Prior Period Income Profit after Exceptional Item Current Tax Fringe Benefit Tax Deferred Tax Profit after Tax Other Information Segment Assets Segment Liabilities Capital Expenditure Depreciation Non Cash Expenses other than Depreciation
Manufacture 11-12 10-11
Trading 11-12 10-11
Un allocable* 11-12 10-11
Total 11-12
10-11
6,184.32 554.63 5,629.68
5,366.09 457.42 4,908.67
1,222.50 1,222.50
1,713.58 1,713.58
-
-
7,406.82 554.63 6,852.19
7,079.67 457.42 6,622.25
(777.48) 31.41 7.65
(169.30) 32.07 19.43
267.35 -
408.23 -
(64.60) 0.04 -
(64.72) 0.01 -
(574.74) 31.44 7.65
174.21 32.08 19.43
(801.24) (34.43) (835.67)
(181.94) 22.63 (204.57)
267.35 267.35
408.23 408.23
(64.64) (64.64)
(64.73) (64.73)
(598.53) (34.43) (632.97)
161.56 22.63 184.19
(10.36) (825.31)
(16.58) (187.99)
267.35
408.23
(64.64)
(64.73)
(10.36) (622.61)
(16.58) 200.77
555 -
440 23,923.60
-
-
307 -
358 -
54.03
77.05
-
-
50.60
51.67
35
862 797.25 - 23,923.60 104.63
128.72
BALAJI INDUSTRIAL CORPORATION LIMITED NOTES ON FINANCIAL STATEMENTS Note No. 34 : RELATED PARTY DISCLOSURES a)
List of Related Parties as identified by the Management are as under Key Management Personnel of the Company : Shri. M. Sreenivasulu Reddy Sl. No. Enterprises owned by / Over which key Management personnel are able to exercise significant influence 1
b)
Balaji Hotels and Enterprises Limited
Transactions during the year with Related Parties Particulars
(` in lakhs)
Enterprises over which key management personnel are able to exercise significant influence 2011-12
2010-11
NIL
NIL
Loans taken
1910.04 (O.B)
1910.04 (O.B)
Cumulative Redeemable Preference Shares issued
1500.00 (O.B)
1500.00 (O.B)
Outstanding as at year end: Advances Given
Note No. 35 : The Company’s operations at IMFL manufacturing unit at Jeedimetla, Hyderabad suspended .
has been
Note No. 36 : The Furnace division at Nellore was closed and not in operation. Note No. 37 : The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure requirements in this regard as per Schedule VI of the Companies Act, 1956 could not be provided. However, we have not provided any interest for delay in payment as per contractual terms, if any, for the enterprises covered under the above act. Note No. 38 : In the absence of operational profits during the year, the Company has not proposed dividend on Preference share capital. Since these shares are cumulative, the dividend accumulated upto the current year is`. 397,161,530/- (Previous year – `. 369,411,530/-) Note No. 39 : The balances of Sundry Debtors, Creditors, and Loans and Advances are subject to confirmations. Note No. 40 : The Revised Schedule –VI has become effective from 1st April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year’s figures have been re grouped / re classified wherever necessary to correspond with the current year’s classification / disclosure. Note No. 41 : Figures have been rounded off to the nearest decimals thereof. On behalf of the Board For P A REDDY & CO Chartered Accountants FRN: 007368S
For CNGSN & ASSOCIATES Chartered Accountants FRN: 004915S
M SREENIVASULU REDDY Director
P ASHOK REDDY Partner Membership No: 23202
C N GANGADARAN Partner Membership No: 11205
V. SARAVANAN Director
Place : Chennai Date : 25th May, 2012
36
BALAJI INDUSTRIAL CORPORATION LIMITED Chemudugunta Village, Venkatachalam Mandal, Nellore District Andhra Pradesh, Pin code 524 320 ATTENDANCE SLIP PLEASE COMPLETE THIS ATTENDANCE SLIP AND HAND IT OVER AT THE ENTRANCE OF THE MEETING HALL I hereby record my presence at the Twenty Eighth Annual General Meeting held on Saturday, September 29, 2012 at 4.00 P.M Venue : Chemudugunta Village, Venkatachalam Mandal, Nellore District, Andhra Pradesh, Pin code 524 320. Name of the Shareholder :
Folio No.:
No. of Shares :
Client ID* : DP ID* : Note : Please fill Attendance Slip and hand it over at the entrance of the Meeting Hall. * Applicable for Investors holding shares in electronic form. Signature of the Shareholder / Proxy Tear Here
BALAJI INDUSTRIAL CORPORATION LIMITED Chemudugunta Village, Venkatachalam Mandal, Nellore District Andhra Pradesh, Pin code 524 320 PROXY FORM Name of the Shareholder :
Folio No.:
No. of Shares :
Client ID* : DP ID* : I / We .................................................................................................................................................... of .................................................... being a Member / Members of BALAJI INDUSTRIAL CORPORATION LIMITED hereby appoint ....................................................................................................................... of ................................................................. or failing him ........................................................................ of ...................................................................................... as my / our proxy to vote for me / us and on my / our behalf at the Twenty Eighth Annual General Meeting of the Company to be held on Saturday, September 29, 2012 at 4.00 P.M or at any adjournment thereof. Signed this ............................................................. day of .............................................................. 2012.
Signed by the said ......................................................................
Affix Revenue Stamp
*Applicable for Investors holding shares in electronic form. Note : The proxy in order to be effective should be duly stamped, completed and signed and must be deposited at the Registered Office of the Company not less than 48 hours before the time for holding the aforesaid meeting. The proxy need not be a member of the Company.
(Unit : Balaji Industrial Corporation Limited)
