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Hujk 784 5 PDF
Hujk 784 5 PDF
2
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Details of principal business activities contributing 10% or more of total turnover of company [Table] ..(1)
Unless otherwise specified, all monetary values are in INR
Product/service 1 Product/service 2 Product/service 3
Principal business activities of company [Axis]
[Member] [Member] [Member]
01/04/2015 01/04/2015 01/04/2015
to to to
31/03/2016 31/03/2016 31/03/2016
Details of principal business activities contributing 10% or more
of total turnover of company [Abstract]
Details of principal business activities contributing 10% or
more of total turnover of company [LineItems]
Silico Manganese
Name of main product/service (Ferro Alloys)
SGCI Inserts Steel Billet
Silico Manganese
Description of main product/service (Ferro Alloys)
SGCI Inserts Steel Billet
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
4
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Particulars of contracts/arrangements with related parties under section Textual information (6)
188(1) [TextBlock] [See below]
Whether there are contracts/arrangements/transactions not at arm's
No
length basis
Whether there are material contracts/arrangements/transactions at
No
arm's length basis
Disclosure of extract of annual return as provided under section 92(3) Textual information (7)
[TextBlock] [See below]
Details of change in promoters shareholding [TextBlock]
Details of shareholding pattern of directors and key managerial
personnel [TextBlock]
Disclosure of statement on declaration given by independent directors Textual information (8)
under section 149(6) [TextBlock] [See below]
Disclosure for companies covered under section 178(1) on
Textual information (9)
directors appointment and remuneration including other matters [See below]
provided under section 178(3) [TextBlock]
Disclosure of statement on development and implementation of risk Textual information (10)
management policy [TextBlock] [See below]
Details on policy development and implementation by company on
Textual information (11)
corporate social responsibility initiatives taken during year [See below]
[TextBlock]
Disclosure as per rule 8(5) of companies accounts rules 2014 [TextBlock]
Textual information (12)
Disclosure of financial summary or highlights [TextBlock] [See below]
Details of directors or key managerial personnels who were Textual information (13)
appointed or have resigned during year [TextBlock] [See below]
Disclosure of companies which have become or ceased to be its
subsidiaries, joint ventures or associate companies during No Remarks
year [TextBlock]
Details relating to deposits covered under chapter v of companies act Textual information (14)
[TextBlock] [See below]
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Details of deposits which are not in compliance with requirements Textual information (15)
of chapter v of act [TextBlock] [See below]
N o
Details of significant and material orders passed by Remarks
regulators or courts or tribunals impacting going concern
status and company’s operations in future [TextBlock]
Details regarding adequacy of internal financial controls with Textual information (16)
reference to financial statements [TextBlock] [See below]
Disclosure of appointment and remuneration of managerial personnels Textual information (17)
[TextBlock] [See below]
Disclosure of voting rights not exercised directly by employees [TextBlock]
Whether votes were cast in favour of resolution Yes
Number of meetings of board 4
6
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
(CIN: L51109WB1995PLC071126)
DIRECTOR'S REPORT
Dear Shareholders,
Your Directors hereby present their 21st Annual Report of the Company together with the Audited Statements of Accounts for the year ended
March 31, 2016.
The Company's financial performance for the year ended, 31st March, 2016 is summarized below:
(` in Crores)
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Interim Dividend - -
2. PERFORMANCE REVIEW
During the year under review your Company has achieved a net turnover of Rs. 94.11 crore, as against Rs. 150.16 crore in the previous year. The
Company has incurred a loss of Rs. 34.31 crore as against Rs. 11.77 crore in the previous year
3. DIVIDEND
Due to non -availability of distributable profit, the directors do not recommend any dividend for the period under review.
4. RESERVES
There is no such amount which the Board posses to carry to any reserves.
During the year review, the company has increased the Authorized Share Capital from from INR 15,00,00,000/- (Fifteen Crores only) divided into
15,000,000 (One crore Fifty Lakhs) equity shares of INR 10/- each, to INR 25,00,00,000/- (Twenty five crores only) divided into 25,000,000
(Two Crores Fifty lakhs) equity shares of INR 10/- each and 8,000,000 Nos. Equity Shares of Rs. 10 /- each had been allotted by Private
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Placement.
6. CAPITAL EXPENDITURE
During the year under review, the company has invested an amount of Rs. 102.43 lacs in fixed assets as against Rs. 43.24 lacs in the previous
year.
The company does not have any subsidiaries / Joint Ventures within the meaning of the Companies Act, 2013.
The Company has adequate internal control systems and procedures designed to effectively control the operations at its Head Office and Plants.
The internal control systems are designed to ensure that the financial and other records are reliable for the preparation of financial statements and
for maintaining assets. The Company has well designed Standard Operating Procedures. Independent Internal Auditors conduct audit covering a
wide range of operational matters and ensure compliance with specified standards. Planned periodic reviews are carried out by Internal Audit. The
findings of Internal Audit are reviewed by the top management and by the Audit Committee of the Board of Directors.
Based on the deliberations with Statutory Auditors to ascertain their views on the financial statements including the Financial Reporting System
and Compliance to Accounting Policies and Procedures, the Audit Committee was satisfied with the adequacy and effectiveness of the Internal
Controls and Systems followed by the company.
The Company has in place adequate Internal Financial Controls with reference to financial statements. During the year, such controls were tested
and no reportable material weakness in the design or operation was observed.
As on date, the Board consists of Three Directors. The composition of Board of Directors is in conformity with the compliance of Companies Act,
2013 and SEBI (Listing Obligation and Disclosures Regulations)2015.
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Appointment of Independent Directors is in conformity with section 149 of the Companies Act, 2013 and SEBI (Listing Obligation and
Disclosures Regulations) 2015.
The Board Mr. Kulveer Hurkat (DIN: 07053912) and Mr. Bharat Goenka (DIN: 00414688) was appointed as Additional Directors (Independent)
for a period of 5 years, from 13th June, 2016 to 12th June, 2021 and Mr. Asit Mondal (DIN: 07563593) as Additional Director(Non Executive) of
the Company subject to the approval of the shareholders in the forthcoming General Meeting.
Mr. Sanjeev Agarwal (DIN: 00080755), Padam Chand Dugar (DIN: 02349924), Independent Directors has resigned from the Board of Directors
of the Company w.e.f 13th June, 2016.
Mr. Mukesh Kumar Rathi (DIN: 06683723) who was working as Director and CFO has also resigned from his Directorship in the Company and
he will continue to work as Chief Financial Officer.
In accordance with the provisions of Companies Act, 2013 Mr. Shrawan Kumar Todi (DIN: 00080303 ) Director will retire by rotation at the
ensuing AGM and being eligible offered himself for re-appointment. The Board recommends his re-appointment.
Pursuant to the provisions of Section 203 of the Companies Act, 2013 the Board has appointed Mr. Ashwani Ladha as Company Secretary (Key
Managerial Personnel) and Compliance Officer with effect from 12th February, 2016 and Ms. Chandani Mohta the erstwhile (Key Managerial
Personnel) and Compliance Officer have resigned from the Board with effect from 11th February, 2016.
The information on the particulars of Director eligible for appointment in terms of Regulation 33 of SEBI (Listing Obligations and Disclosure
Requirement) Regulations, 2015 has been provided in the notes to the notice convening the Annual General Meeting.
The Independent Directors have confirmed and declared that they are not disqualified to act as an Independent Director in compliance with the
provisions of Section 149 of the Companies Act, 2013 and the Board is also of the opinion that the Independent Directors fulfill all the conditions
specified in the Companies Act, 2013 making them eligible to act as Independent Directors.
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
The details of number and dates of meetings held by the Board and its Committees, attendance of Directors and sitting fee/ commission/
remuneration paid to them is given separately in the attached Corporate Governance Report.
In compliance with the Companies Act, 2013 and Regulation 17(10) of SEBI (Listing Obligations and Disclosure Requirements), Regulations,
2015, the performance evaluation of the Board was carried out during the year under review. More details on the same are given in the Corporate
Governance Report.
The company follows a policy on remuneration of Directors and Senior Management Employees. The policy is approved by the Nomination and
Remuneration Committee and the Board. More details on the same are given in the Corporate Governance Report.
The details of term of reference of the Audit Committee, Nomination and Remuneration Committee and Stakeholders Relationship Committee
member, dates of meeting held and attendance of the Directors are given separately in the Corporate Governance Report.
In order to ensure that the activities of the Company and its employees are conducted in a fair and transparent manner by adoption of highest
standards of professionalism, honesty, integrity and ethical behavior, the company has adopted a vigil mechanism / Whistle Blower policy in
compliance with the requirements of law. The policy on this has been uploaded on the website of the Company.
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Directors, Key Managerial Personnel and senior management of the Company have confirmed compliance with the Code of Conduct applicable
to the Directors and employees of the Company and the declaration in this regard made by the CFO and Director is attached as Annexure 'I'
which forms a part of this Report of the Directors. The Code of Conduct is available on the Company's website.
Your company has not accepted any fixed deposit and, accordingly no amount was outstanding as at the Balance Sheet date.
The Company does not meet any of the criteria as specified under section 135 of the Act and hence no compliance is required in this regards.
The company has entered into contract / arrangements with the related parties in the ordinary course of business and on arms length basis. Thus
provision of Section 188 (1) of the Companies Act and rules made there under is not applicable.
None of the directors are related within the meaning of the term "relative" as per section 2(77) of the Companies Act, 2013 and Listing Obligation
and Disclosure Requirements, Regulations 2015.
During the year, the Non Executive Directors of the Company had no pecuniary relationship or transaction with the company.
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
There have been no loans, Guarantees and investments under section 186 of the Companies Act, 2013 during the financial year 2015-16.
The Risk Management is overseen by the Audit Committee of the Company on a continuous basis. The Committee oversees Company's process
and policies for determining risk tolerance and review management's measurement and comparison of overall risk tolerance to established levels.
Major risks identified by the business and functions are systematically addressed through mitigating actions on a continuous basis.
The information required under section 197 of the Act and rules made thereunder, in respect of employees of the company, is provided in
Annexure -I forming part of this Report.
The extract of Annual Return as provided under Sub-Section (3) of Section 92 of the Companies Act, 2013 ("the Act") is enclosed at Annexure -
II in the prescribed form MGT -9 and forms part of this Report.
M/s K.N.GUTGUTIA, Chartered Accountants, Statutory Auditors of the Company holds office upto the conclusion of the 21st Annual General
Meeting, your company seeks approval for the appointment of Statutory Auditors at the ensuing Annual General Meeting. There is no a
qualification or reservation or remarks made by the auditors.
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
A Secretarial Audit was conducted during the year by the Secretarial Auditor Mr. Rahul Jaiswal, Practicing Company Secretaries. The Secretarial
Auditors Report is attached as Annexure 'III'. There are no qualifications or remarks made by the Secretarial Auditor in their Report.
The Board of Directors has on the recommendation of Audit Committee, approved the appointment of Mr. Shib Shankar Ghosh, Practicing Cost
Accountants, as the Cost Auditors of the company for the year 2016-2017 at a remuneration of Rs. 35,000/- plus out of pocket expenses. The
proposed remuneration of the Cost Auditors would be approved by the members in the ensuing AGM.
Regarding Auditors' remarks for non-provision of deferred tax, your directors have to state that in consideration of prudence, deferred tax has not
been recognized in the financial statements and the same would be considered at the appropriated time keeping in view of the availability of
sufficient taxable income against which such deferred tax can be realized. Rest of the Auditors' Report are self-explanatory and therefore, do not
call for any further comments.
31. CORPORATE GOVERNANCE REPORT, MANAGEMENT DISCUSSION and ANALYSIS AND OTHER INFORMATION
REQUIRED UNDER THE COMPANIES ACT, 2013 AND LISTING AGREEMENT
As per Schedule V of the entered into with the Stock Exchanges, a Management Discussion and Analysis, Corporate Governance Report,
Directors and Auditors' Certificate regarding compliance of conditions of Corporate Governance are forming part of this Report.
During the year the Company had cordial relations with workers, staff and officers. The shop floor management is done through personal touch,
using various motivational tools and meeting their training needs requirements. The company has taken initiative for safety of employees and
implemented regular safety audit, imparted machine safety training, wearing protective equipments etc.
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
33. DISCLOSURE AS PER THE SEXUAL HARRASMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION
AND REDRESSAL) ACT, 2013
The company has a policy on prohibition, prevention and redressal of Sexual Harassment of women at workplace and matters connected there
with or incidental there to covering all the aspects as contained under "The Sexual Harassment of women at workplace (Prohibition, Prevention
and Redressal) Act, 2013".
During the financial year 2015-16, no complaint was received under the policy.
Pursuant to the requirement of section 134(5) of the Act, and based on the representations received from the management, the directors hereby
confirm that:
a) in the preparation of Annual Accounts for the financial year 2015-16, the applicable accounting
standards have been followed along with the proper explanation relating to material departure;
b) they have selected such accounting policies and applied them consistently and made judgments and
estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the
company at the end of the financial year and of the profit or loss of the company for the financial year;
c) they have taken proper and sufficient care to the best of their knowledge and ability for the
maintenance of adequate accounting records in accordance with the provisions of the Companies Act,
2013. They confirm that there are adequate systems and controls for safeguarding the assets of the
company and for preventing and detecting fraud and other irregularities;
e) they have laid down internal financial controls to be followed by the company and that such internal
financial controls are adequate and operating properly; and
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
f) they have devised proper systems to ensure compliance with the provisions of all applicable
laws and that such system were adequate and operating effectively.
35. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO
The particulars as prescribed under Rule 8(3) of the Companies (Accounts) Rules, 2014, are set out below:
A. CONSERVATION OF ENERGY
Energy conservation is being pursued with considerable focus and commitment by the Management through improved operational and
maintenance practices. Steps taken by the Company in this direction are as under:
c) Melting operations are consolidated in economical lot sizes for optimum furnace utilization in Foundry Division.
d) Power consumption are measured and monitored at various consumption points by metering and corrective action is taken to ensure
minimum wastage.
III) Impact to measures of (I) and (II) above for reduction of energy consumption and
The above measures will result in saving of energy and corresponding reduction in cost of goods.
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
FORM A 2015-2016
1) Electricity :
i) Purchased :
2015- 2016
MT Pcs. MT
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
B. TECHNOLOGY ABSORPTION
FORM-B
the Units.
c) Expenditure on R and D
apportionable.
The technology is continually upgraded to meet the demanding market conditions. Quality of products manufactured by this company is well
appreciated by the user industries including overseas markets.
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Rs./Lakhs
Earnings : 1794.49
Outgo : 4.34
Statements in this report, describing the Company's objectives, expectations and/or anticipations may be forward looking within the meaning of
applicable Securities Law and Regulations. Actual results may differ materially from those stated in the statement. Important factors that could
influence the Company's operations include global and domestic supply and demand conditions affecting selling prices of finished goods,
availability of inputs and their prices, changes in the Government policies, regulations, tax laws, economic developments within the country and
outside and other factors such as litigation and industrial relations.
The Company assumes no responsibility in respect of the forward-looking statements, which may undergo changes in future on the basis of
subsequent developments, information or events.
37. APPRECIATIONS
Your Directors wish to place on record their appreciation for the continuous support received from the Members, customers, suppliers, bankers,
various statutory bodies of the Government of India and the Company's employees at all levels.
Director Director
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
ANNEXURE: I
PARTICULARS OF REMUNERATION
The information required under section 197 of the Act and the Rules made there under, in respect of employees of the Company, is follows:-
(a) The ratio of the remuneration of each director to the median remuneration of the employees of the company for the financial year;
Executive Director
(b) The percentage increase in remuneration of each Director, Chief Financial Officer, Company Secretary or Manager, if any, in the financial
year;
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
(c) The percentage increase in the median remuneration of employees in the financial year; 5%
(d) The number of permanent employees on the rolls of company; 187 NOS
(e) The explanation on the relationship between average increase in remuneration and company performance;
On an average employee received an increase of 2.00%. The increase in remuneration is in line with the market trends. In order to ensure that
remuneration reflects company performance, the performance pay is linked to organization performance.
(f) Comparison of the remuneration of the Key Managerial Personnel against the performance of the company;
Particulars `/lac
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
(g) Variation in the market capitalization of the company, price earnings ratio as at the closing date of the current financial year and previous
financial year and percentage increase over decrease in the market quotations of the share of the company in comparison to the rate at which the
company came out with the last public offer in case listed companies, and in case of unlisted companies, the variation in the net worth of the
company as at the close of the current financial year and previous financial year;
Shares of the company are not publically traded and bracket represents negative figures
(h) Average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial year and its
comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional
circumstances for increase in the managerial remuneration;
The average increase in salaries of employees other than managerial personnel in 2015-16 was 0.57% Percentage increase in the managerial
remuneration for the year was -2.47%
(i) The ratio of the remuneration of the highest paid director to that of the employees who are not directors but receive remuneration in excess
of the highest paid director during the year;
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
(j) The key parameters for any variable component of remuneration availed by the directors; Not applicable.
(k) Affirmation that the remuneration is as per the remuneration policy of the company.
The Company's remuneration policy is driven by the success and performance of the individual employees and the Company through its
compensation package, the company endeavors to attract, retain, develop and motivate a high performance staff. The company affirms
remuneration is as per the remuneration policy of the company.
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Particulars of contracts/arrangements with related parties under section 188(1) [Text Block]
The company has entered into contract / arrangements with the related parties in the ordinary course of business and on arms length basis. Thus
provision of Section 188 (1) of the Companies Act and rules made there under is not applicable.
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Disclosure of extract of annual return as provided under section 92(3) [Text Block]
FORM NO. MGT-9
EXTRACT OF ANNUAL RETURN as on the financial year ended on 31st March, 2016 of BHASKAR SHRACHI ALLOYS LIMITED
[Pursuant to Section 92(1) of the Companies Act, 2013 and rule 12(1) of the Companies (Management and Administration) Rules, 2014]
CIN L51109WB1995PLC071126
Category/ Sub Category of the Company Company Limited by Shares / Indian Non- Government Company
E-mail - cs@bhaskargroup.com
6, Mangoe Lane,
Name, Address and Contact details of Registrar and Transfer Agent, if any
Kolkata - 700 001
All the business activities contributing 10 % or more of the total turnover of the company
shall be stated:-
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Sl. No. Name and Description of main products / services NIC Code of the Product/ service % to total turnover of the company
i) Category-wise Shareholding
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
As a As a per-centage of Number of As a
per-centage (A+B+C) shares percentage
of (A+B)
(IX)=(VIII)/(IV)
(I) (II) (III) (IV) (V) (VI) (VII) (VIII)
* 100
Shareholding of
(A) Promoter and Promoter
Group
(1) Indian
Individuals/Hindu
(a) 76 3,497,400 - 17.06 17.06 1,893,300 54.10
Undivided Family
Central
(b) Government/State - - - - - - -
Government(s)
Financial
(d) - - - - - - -
Institutions/Banks
(2) Foreign
Individuals
(Non-Resident
(a) Individuals/ - - - - - - -
Foreign Individuals)
(c) Institutions - - - - - - -
Qualified Foreign
(d) - - - - - - -
Investor
Sub-Total (A)(2) - - - - - - -
Total Shareholding of
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Promoter and Promoter 106 7,738,600 1500000 37.74 37.74 27,00,000 34.89
Group (A)
=(A)(1)+(A)(2)
(1) Institutions NA NA
Sub-Total (B)(1) - - - - - - -
(2) Non-institutions - - - - - - -
(b) Individuals -
i. Individual shareholders holding nominal share capital upto Rs. 2 lakh. 1124 1,398,000 5,809 6.81 6.81 - -
ii .Individual shareholders holding nominal share capital in excess of Rs. 2 lakh. 12 1,980,100 - 9.65 9.65 - -
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
TOTAL (A)+(B)
(C) Shares held by Custodians and against which Depository Receipts have been issued - - - - - - -
(2) Public - - - - - - -
GRAND TOTAL
1313 20,500,000 55,809 100 100 2,700,000 13.17
(A) + (B) + (C)
1. SHAREHOLDING OF PROMOTERS
(VI)=
(I) (II) (III) (IV) (V) (VII)
(V)/(III) *100
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
No. of No. of
% of total shares of the company % of total shares of the company
shares shares
Promoters Share
� Changes occurred due to further allotment and transfer of shares during the year.
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
No. of No. of
For Each of the Top 10 Shareholders % of total shares of the company % of total shares of the company
shares shares
Promoters Share
Year specifying
transfer / bonus/
(iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs):
36
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Shareholding at
Cumulative
the
Sl. Shareholding
No
beginning of
during the year
the year
No.
For Each of the No. of
% of total shares of the of % of total shares of the
company company
Directors and KMP shares
shares
V. INDEBTEDNESS
Indebtedness of the Company including interest outstanding/accrued but not due for
payment.
` in lacs
Indebtedness at the
year
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Change in Indebtedness
? Addition 216.26
216.26
? Reduction 692.78 692.78
Indebtedness at the
` in lacs
Gross salary
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
(c) Profits in lieu of salary under section 17(3) Income tax Act, 1961.
Commission
- others, specify�
Total Amount
Sl.No Particulars of Remuneration Name of Directors
(`)
- Board Meeting.
b) Commission
NA NA NA NA NA NA NA NA
c) others
Total (2) NA NA NA NA NA NA NA NA
Total (B)=(1+2) NA NA NA NA NA NA NA NA
Total Managerial
NA NA NA NA NA NA NA NA
Remuneration
39
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
� Mr. Kulveer Hurkat, Mr. Bharat Goenka and Mr. Asit Mondal appointed on the Board on 13.06.2016 and 12.08.2016 respectively.
CS CS CFO
Gross salary
(c) Profits in lieu of salary under section 17(3) Income tax Act,
1961.
2. Stock Option - - - -
3. Sweat Equity - - - -
Commission
4. - as % of profit - - - -
- others, specify�
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Appeal made if
Details of Penalty/ any,
Punishment/ Authority
Section of the Companies Brief (give details)
Type
Act Description Compounding [ RD / NCLT/
COURT]
fees imposed
A. Company
Penalty
Punishment NIL
Compounding
B. Directors
Penalty
Punishment NIL
Compounding
C. Other Officers in
Default
Penalty
Punishment NIL
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Compounding
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Disclosure of statement on declaration given by independent directors under section 149(6) [Text Block]
As on date, the Board consists of Three Directors. The composition of Board of Directors is in conformity with the compliance of Companies Act,
2013 and SEBI (Listing Obligation and Disclosures Regulations)2015.
Appointment of Independent Directors is in conformity with section 149 of the Companies Act, 2013 and SEBI (Listing Obligation and
Disclosures Regulations) 2015.
The Board Mr. Kulveer Hurkat (DIN: 07053912) and Mr. Bharat Goenka (DIN: 00414688) was appointed as Additional Directors (Independent)
for a period of 5 years, from 13th June, 2016 to 12th June, 2021 and Mr. Asit Mondal (DIN: 07563593) as Additional Director(Non Executive) of
the Company subject to the approval of the shareholders in the forthcoming General Meeting.
Mr. Sanjeev Agarwal (DIN: 00080755), Padam Chand Dugar (DIN: 02349924), Independent Directors has resigned from the Board of Directors
of the Company w.e.f 13th June, 2016.
Mr. Mukesh Kumar Rathi (DIN: 06683723) who was working as Director and CFO has also resigned from his Directorship in the Company and
he will continue to work as Chief Financial Officer.
In accordance with the provisions of Companies Act, 2013 Mr. Shrawan Kumar Todi (DIN: 00080303 ) Director will retire by rotation at the
ensuing AGM and being eligible offered himself for re-appointment. The Board recommends his re-appointment.
Pursuant to the provisions of Section 203 of the Companies Act, 2013 the Board has appointed Mr. Ashwani Ladha as Company Secretary (Key
Managerial Personnel) and Compliance Officer with effect from 12th February, 2016 and Ms. Chandani Mohta the erstwhile (Key Managerial
Personnel) and Compliance Officer have resigned from the Board with effect from 11th February, 2016.
The information on the particulars of Director eligible for appointment in terms of Regulation 33 of SEBI (Listing Obligations and Disclosure
Requirement) Regulations, 2015 has been provided in the notes to the notice convening the Annual General Meeting.
43
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Disclosure for companies covered under section 178(1) on directors appointment and remuneration including other
matters provided under section 178(3) [Text Block]
D. POLICY OF DIRECTORS' APPOINTMENT AND REMMUNERATION
Company's policy on Directors' appointment and remuneration including criteria for determining qualification, positive attributes, independence
of a director and other matters provided under section 178(3) of the Act are covered in the Corporate Governance Report which forms part of this
Report.
Disclosure of statement on development and implementation of risk management policy [Text Block]
J. RISK MANAGEMENT
The Risk Management is overseen by the Audit Committee of the Company on a continuous basis. The Committee oversees Company's process
and policies for determining risk tolerance and review management's measurement and comparison of overall risk tolerance to established levels.
Major risks identified by the business and functions are systematically addressed through mitigating actions on a continuous basis.
Details on policy development and implementation by company on corporate social responsibility initiatives taken
during year [Text Block]
8. Corporate Social Responsibility (CSR)
The company does not meet any of criteria as specified under section 135 of the Act and hence no compliance required in this regard.
44
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
(` in Crores)
Interim Dividend - -
45
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Details of directors or key managerial personnels who were appointed or have resigned during year [Text Block]
As on date, the Board consists of Three Directors. The composition of Board of Directors is in conformity with the compliance of Companies Act,
2013 and SEBI (Listing Obligation and Disclosures Regulations)2015.
Appointment of Independent Directors is in conformity with section 149 of the Companies Act, 2013 and SEBI (Listing Obligation and
Disclosures Regulations) 2015.
The Board Mr. Kulveer Hurkat (DIN: 07053912) and Mr. Bharat Goenka (DIN: 00414688) was appointed as Additional Directors (Independent)
for a period of 5 years, from 13th June, 2016 to 12th June, 2021 and Mr. Asit Mondal (DIN: 07563593) as Additional Director(Non Executive) of
the Company subject to the approval of the shareholders in the forthcoming General Meeting.
Mr. Sanjeev Agarwal (DIN: 00080755), Padam Chand Dugar (DIN: 02349924), Independent Directors has resigned from the Board of Directors
of the Company w.e.f 13th June, 2016.
Mr. Mukesh Kumar Rathi (DIN: 06683723) who was working as Director and CFO has also resigned from his Directorship in the Company and
he will continue to work as Chief Financial Officer.
In accordance with the provisions of Companies Act, 2013 Mr. Shrawan Kumar Todi (DIN: 00080303 ) Director will retire by rotation at the
ensuing AGM and being eligible offered himself for re-appointment. The Board recommends his re-appointment.
Pursuant to the provisions of Section 203 of the Companies Act, 2013 the Board has appointed Mr. Ashwani Ladha as Company Secretary (Key
Managerial Personnel) and Compliance Officer with effect from 12th February, 2016 and Ms. Chandani Mohta the erstwhile (Key Managerial
Personnel) and Compliance Officer have resigned from the Board with effect from 11th February, 2016.
The information on the particulars of Director eligible for appointment in terms of Regulation 33 of SEBI (Listing Obligations and Disclosure
Requirement) Regulations, 2015 has been provided in the notes to the notice convening the Annual General Meeting.
46
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Details relating to deposits covered under chapter v of companies act [Text Block]
12. Deposit
The Company has not accepted any public deposits and, as such, no amount on account of principal or interest on public deposits was outstanding
on that date of the Balance Sheet.
Details of deposits which are not in compliance with requirements of chapter v of act [Text Block]
12. Deposit
The Company has not accepted any public deposits and, as such, no amount on account of principal or interest on public deposits was outstanding
on that date of the Balance Sheet.
Details regarding adequacy of internal financial controls with reference to financial statements [Text Block]
I. INTERNAL CONTROL
The information about internal controls is set out in the Management Discussion and Analysis Report which is attached and forms part of this
Report.
47
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
In accordance with Articles of Association of the Company, Mr. Shrawan Kumar Todi, Director, retires by rotation and being eligible have
offered himself for re-appointment.
None of the Directors of the Company is disqualified under Section 274(1)(g) of the Companies Act, 1956.
Mr. Krishna Kumar Rungta has resigned and Mr. Sanjeev Agarwal has been appointed as Independent Director with effective from 5th January,
2015.
All directors are individuals of integrity and courage, with relevant skills and experience to bring judgment to bear on the business of the
Company.
PARTICULARS OF REMUNERATION
The information required under section 197 of the Act and the Rules made there under, in respect of employees of the Company, is follows:-
(a) The ratio of the remuneration of each director to the median remuneration of the employees of the company for the financial year;
Executive Director
(b) The percentage increase in remuneration of each Director, Chief Financial Officer, Company Secretary or Manager, if any, in the
financial year;
48
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
(c) The percentage increase in the median remuneration of employees in the financial year; 23%
(d) The number of permanent employees on the rolls of company; 186 NOS
(e) The explanation on the relationship between average increase in remuneration and company performance; On an average employee
received an increase of 24%. The increase in remuneration is in line with the market trends. In order to ensure that remuneration reflects company
performance, the performance pay is linked to organization performance.
(f) Comparison of the remuneration of the Key Managerial Personnel against the performance of the company;
Particulars `/lac
(g) Variation in the market capitalization of the company, price earnings ratio as at the closing date of the current financial year and
previous financial year and percentage increase over decrease in the market quotations of the share of the company in comparison to the rate at
which the company came out with the last public offer in case listed companies, and in case of unlisted companies, the variation in the net worth
of the company as at the close of the current financial year and previous financial year;
Shares of the company are not publically traded and bracket represents negative figures
(h) Average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial year and
its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional
circumstances for increase in the managerial remuneration;
The average increase in salaries of employees other than managerial personnel in 2014-15 was 26%. Percentage increase in the managerial
remuneration for the year was 37%
(i) The ratio of the remuneration of the highest paid director to that of the employees who are not directors but receive remuneration in
excess of the highest paid director during the year;
49
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
(j) The key parameters for any variable component of remuneration availed by the directors;
Not applicable.
(k) Affirmation that the remuneration is as per the remuneration policy of the company
The Company's remuneration policy is driven by the success and performance of the individual employees and the Company through its
compensation package, the company endeavours to attract, retain, develop and motivate a high performance staff. The company affirms
remuneration is as per the remuneration policy of the company.
50
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Disclosure of auditor's qualification(s), reservation(s) or adverse remark(s) in auditors' report [Table] ..(1)
Unless otherwise specified, all monetary values are in INR
Auditor's Clause not
Auditor's qualification(s), reservation(s) or adverse remark(s) in auditors' report [Axis] favourable remark applicable
[Member] [Member]
01/04/2015 01/04/2015
to to
31/03/2016 31/03/2016
Disclosure of auditor's qualification(s), reservation(s) or adverse remark(s) in
auditors' report [Abstract]
Disclosure of auditor's qualification(s), reservation(s) or adverse remark(s) in
auditors' report [LineItems]
Textual information
Disclosure in auditors report relating to fixed assets (18) [See below]
i). a. The company
has maintained
proper records
showing full
Disclosure relating to quantitative details of fixed assets particulars including
quantitative details
and situation of fixed
assets.
Disclosure relating to physical verification and material discrepancies of fixed Textual information
assets (19) [See below]
Textual information
Disclosure in auditors report relating to inventories (20) [See below]
Textual information
Disclosure in auditors report relating to loans (21) [See below]
Disclosure in auditors report relating to compliance with Section 185 and 186 of
GIVEN BELOW
Companies Act, 2013
Textual information
Disclosure in auditors report relating to deposits accepted (22) [See below]
Textual information
Disclosure in auditors report relating to maintenance of cost records (23) [See below]
Textual information
Disclosure in auditors report relating to statutory dues [TextBlock] (24) [See below]
Disclosure relating to regularity in payment of undisputed statutory dues Textual information
[TextBlock] (25) [See below]
Textual information
Disclosure relating to disputed statutory dues [TextBlock] (26) [See below]
Textual information
Disclosure in auditors report relating to default in repayment of financial dues (27) [See below]
Disclosure in auditors report relating to public offer and term loans used for Textual information
purpose for which those were raised (28) [See below]
Disclosure in auditors report relating to fraud by the company or on the Textual information
company by its officers or its employees reported during period (29) [See below]
Textual information
Disclosure in auditors report relating to managerial remuneration (30) [See below]
In our opinion
company is not a
nidhi company.
Therefore, the
Disclosure in auditors report relating to Nidhi Company provisions of clause
(xii) of paragraph 3
of the Order are not
applicable to the
Company.
Textual information
Disclosure in auditors report relating to transactions with related parties (31) [See below]
Disclosure in auditors report relating to preferential allotment or private Textual information
placement of shares or convertible debentures (32) [See below]
Disclosure in auditors report relating to non-cash transactions with directors Textual information
or persons connected with him (33) [See below]
To the best of our
knowledge and as
explained, the
Company is not
Disclosure in auditors report relating to registration under section 45-IA of
required to be
Reserve Bank of India Act, 1934 registered under
Section 45-IA of the
Reserve Bank of
India Act, 1934.
51
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
52
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
b. According to the information and explanation given to us, there are no dues of income tax, custom duty, wealth tax, excise duty and cess
which have not been deposited on account of any dispute.
c. There were no such amount which required to be transferred to Investor Education and Protection fund in accordance with the relevant
provisions of the Companies Act.
b. According to the information and explanation given to us, there are no dues of income tax, custom duty, excise duty and cess which have
not been deposited on account of any dispute.
viii) In our opinion and according to the information and explanations given to us, the Company has restructured their credit limits with
SBI and is pending for implementation as on the date of Audit, reference to the terms and conditions as sanctioned by SBI the company is
required to pay Rs. 2 crore as when the package will be implemented and it has no dues to debenture holders.
Disclosure in auditors report relating to public offer and term loans used for purpose for which those were raised
The company has not raised money by way of initial public offer or further public offer (including debt instruments) or term loan and hence
clause (ix) of paragraph 3 of the Order is not applicable to the Company.
53
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Disclosure in auditors report relating to fraud by the company or on the company by its officers or its employees
reported during period
Based on the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per information and
explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
Disclosure in auditors report relating to preferential allotment or private placement of shares or convertible
debentures
In our opinion and according to the information and explanations given to us, the Company has made preferential allotment of shares during the
year amounting to Rs. 8.00 Cores and the requirement of the section 42 of the Companies Act, 2013 have been complied with and the amount
raised have been used for the purposes for which the funds were raised.
Disclosure in auditors report relating to non-cash transactions with directors or persons connected with him
In our opinion and according to the information and explanations given to us, the Company has not entered into any non-cash transaction with the
Directors or Persons connected with them and covered under section 192 of the Act. Hence clause (xv) of paragraph 3 of the Order is not
applicable to the Company.
54
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
We have audited the accompanying Financial Statements of BHASKAR SHRACHI ALLOYS LIMITED (the company), which comprise the
Balance sheet as at March 31, 2016, and the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
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 flows 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 the Companies (Accounts) Rule, 2014. This responsibility also includes maintenance of adequate accounting
records in accordance with the provisions of the Act for safeguarding 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
55
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
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 risk assessments, the auditor considers internal control relevant to the Company's preparation and fair
presentation of the financial statements 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 accounting estimates made by management, 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 provide a basis for our qualified audit opinion.
REFER TO NOTE NO. 2.24(13) REGARDING NON-RECOGNITION OF DEFERRED TAX ASSETS (NET OF DEFERRED TAX
LIABILITY) AMOUNTING TO Rs. 14.63 LACS. HAD THE RECOGNITION BEEN MADE THE LOSS FOR THE YEAR WOULD HAVE
DECREASED BY Rs. 14.63 LACS AND THE BALANCE IN PROFIT and LOSS STATEMENT WOULD HAVE INCREASED AND
DEFERRED TAX ASSETS WOULD HAVE INCREASED BY THE SAME AMOUNT.
QualifiedOpinion
In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter described in the
Basis for Qualified Opinion Paragraph, 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 India.
(a) in the case of the Balance Sheet of the state of affairs of the Company as at 31st March,
2016;
(b) in the case of Statement of Profit and Loss, of the Loss for the year ended on that date; and
(c) in the case of Cash Flow Statement, of the Cash Flows for the year ended on that date.
56
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Emphasis of Matter
Attention is drawn to Point No. 15 of Notes on Accounts 2.24 regarding physical verification of inventories lying at its manufacturing unit or
elsewhere and certain quantities of work in progress items have been found to be of waste quality.
The financial impact of the above has already been accounted for during the financial year 2015-16 and any other impact of the same, if any shall
be determined and will be provided for as and when it is required.
1. As required by the Companies (Auditor's Report) Order, 2016 ("the order") issued by the Central Government of India in terms of
Subsection (11) of section 143 of the Act, We give in the "ANNEXURE- A" a statement on the matter specified in paragraph 3 and 4 in the order.
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for
the purposes of our audit;
b) In our opinion, subject to note no. 2.24(13) 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, 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 Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards
specified under section 133 of the Act, read with rule 7 of the companies (Accounts) Rule, 2014 except note no. 2.24(13) regarding non-provision
of Deferred Tax Liability (Accounting Standard 22).
e) On the basis of the written representations received from the Directors as on 31st March, 2016, and taken on record by the Board of
57
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Directors, none of the Directors is disqualified as on 31st March, 2015 from being appointed as a Director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the Internal Financial Controls over financial reporting of the company and the operating
effectiveness of such controls, refer to our separate Report in "ANNEXURE- B".
g) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the companies (Audit and
Auditors) Rule, 2014, in our opinion and to the best of our information and according to the explanations given to us;
i) The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 2.24
(14) to the financial statement.
ii) The company did not have any long term Contracts including derivative contracts for which there were any material foreseeable
losses.
iii) There were no amounts which were required to be transferred, to the Investor Education and Protection Fund by the company.
Chartered Accountants
Partner
Kolkata - 700071
58
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
to the members of BHASKAR SHRACHI ALLOYS LIMITED, referred to in paragraph 1 of our report on other Legal and Regulatory
Requirements of even date.
i). a. The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
b. All the assets have not been physically verified by the management during the year but there is a phased programme of verification
designed to cover all the items of Fixed Assets over the period of three years. Pursuant to the programme a portion of the Fixed Assets have been
physically verified by the Management during the year which, in our opinion, is reasonable having regard to the size of the company and the
nature of its assets. No material discrepancies were noticed on such verification.
c. The Title Deed of immovable properties are held in the name of the Company.
ii) The inventory has been physically verified by the management during the year. In our opinion, the frequency of verification is
reasonable. The discrepancies noticed on such verification between physical stocks and book records were not material except as disclosed in note
no. 15 of the financial statement.
59
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
iii) The Company has not granted any loan during the year, Secured or Unsecured to the companies, firms, limited liability
partnerships or other parties covered the register maintained u/s 189 of the Companies Act 2013 and accordingly clause (iii) (a) to clause (iii) (c)
of the order is not applicable to the Company.
iv) According to the information and explanations given to us, no loan has been given to any director of the company or to any other
person as specified under section 185 of the Companies Act, 2013. The company has neither given any loan or guarantee and has provided
security to any person or body corporate nor has made any investment during the year under audit as specified under section 186 of the
Companies Act, 2013.
v) In our opinion and according to the information and explanations given to us, the company has not accepted any deposit from the
public u/s 73 to 76 of the Companies Act, 2013 or any other relevant provisions of the Companies Act, 2013 and Rules made thereunder.
Therefore, the provisions of clause (v) of paragraph 3 of the order are not applicable to the Company.
vi) The maintenance of cost records has not been specified by the Central Government under sub section (1) of the section 148 of the
Companies Act, though the Company has a practice of maintaining such accounts and records for the purpose of cost Audit.
a. According to the information and explanations given to us and records produced and examined by us the Company is regular in depositing
undisputed statutory dues including provident fund, employees state insurance, income tax, sales tax, service tax, custom duty, excise duty, cess
and other material statutory dues applicable to it with appropriate authorities.
b. According to the information and explanation given to us, there are no dues of income tax, custom duty, excise duty and cess which have
not been deposited on account of any dispute.
viii) In our opinion and according to the information and explanations given to us, the Company has restructured their credit limits with
SBI and is pending for implementation as on the date of Audit, reference to the terms and conditions as sanctioned by SBI the company is
required to pay Rs. 2 crore as when the package will be implemented and it has no dues to debenture holders.
ix) The company has not raised money by way of initial public offer or further public offer (including debt instruments) or term loan
and hence clause (ix) of paragraph 3 of the Order is not applicable to the Company.
x) Based on the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per
information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported
during the year.
xi) In our opinion and according to the information and explanations given to us, managerial remuneration has been paid or provided
in accordance with the requisite approvals mandated by the provisions of the section 197 read with Schedule V of the Act.
xii) In our opinion company is not a nidhi company. Therefore, the provisions of clause (xii) of paragraph 3 of the Order are not
applicable to the Company.
xiii) In our opinion and according to the information and explanations given to us, the Company has not entered into any transaction
with related parties that require approval under section 177 and section 188 of the Act and the rules made thereunder. Hence, clause (xiii) of
paragraph 3 of the Order is not applicable to the Company.
xiv) In our opinion and according to the information and explanations given to us, the Company has made preferential allotment of
shares during the year amounting to Rs. 8.00 Cores and the requirement of the section 42 of the Companies Act, 2013 have been complied with
and the amount raised have been used for the purposes for which the funds were raised.
xv) In our opinion and according to the information and explanations given to us, the Company has not entered into any non-cash
transaction with the Directors or Persons connected with them and covered under section 192 of the Act. Hence clause (xv) of paragraph 3 of the
Order is not applicable to the Company.
xvi) To the best of our knowledge and as explained, the Company is not required to be registered under Section 45-IA of the Reserve
Bank of India Act, 1934.
60
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Chartered Accountants
61
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
"ANNEXURE B"
ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS OF BHASKAR
SHRACHI ALLOYS LTD.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the Internal Financial Controls over financial reporting of BHASKAR SHRACHI ALLOYS LIMITED ("the Company") as of
March 31, 2016 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
The Company's management is responsible for establishing and maintaining internal financial controls based on the internal control over financial
reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of
Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the
design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and
efficient conduct of its business, including adherence to company's policies, the safeguarding of its assets, the prevention and detection of frauds
and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required
under the Companies Act, 2013.
Auditors' Responsibility
62
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting based on our audit. We conducted
our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the
Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to
an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered
Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if
such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial
reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of
internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and
operating effectiveness of internal control based on the assessed risk. 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.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company's
internal financial controls system over financial reporting.
A company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
A company's internal financial control over financial reporting includes those policies and procedures that
1. Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets
of the company;
2. Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with
generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with
authorizations of management and directors of the company; and
3. Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's
63
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper
management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation
of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial
reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may
deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal
financial controls over financial reporting were operating effectively as at March 31, 2016, based on the internal control over financial reporting
criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal
Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
CA AMIT GHOSH
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Partner
Membership No.062091
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
FORM MR-3
[Pursuant to section 204(1) of the Companies Act, 2013 and Rule No.9 of the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014]
To,
I have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by
Bhaskar Shrachi Alloys Limited (hereinafter called the company). Secretarial Audit was conducted in a manner that provided a reasonable basis
for evaluating the corporate conducts/statutory compliances and expressing our opinion thereon.
Based on the verification of the books, papers, minute books, forms and returns filed and other records maintained by the company and also the
information provided by the Company, its officers, agents and authorized representatives during the conduct of secretarial audit, I hereby report
that in opinion, the company has, during the audit period ended on 31st March, 2016, complied with the statutory provisions listed hereunder and
also that the Company has proper Board-processes and compliance-mechanism in place to the extent, in the manner and subject to the reporting
made hereinafter:
1. I have examined the books, papers, minute books, forms and returns filed and other records maintained by the company for the audit
period ended on 31st,March 2016 according to the provisions of :
I. The Companies Act, 2013 (the Act) and the rules made thereunder;
II. The Securities Contracts (Regulation) Act, 1956 ('SCRA') and the rules made thereunder;
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
III. The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;
IV. Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign Direct Investment,
Overseas Direct Investment and External Commercial Borrowings : Not Applicable
V. The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 ('SEBI Act') to
the extent applicable to the company :-
a. The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;
b. The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992;
c. The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009;
d. The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding the Companies
Act and dealing with client;
e. The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009; (Not applicable as the Company has not
delisted its equity share from any stock exchange during the financial year under review)
f. The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998; (Not applicable as the Company has not any
issued any debt securities during the financial year under review)
g. The Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase scheme) Guidelines, 1999 and
( Not applicable as the Company has not granted any options to its employees during the financial year under review.)
h. The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008. (Not applicable as the Company has
not granted any options to its employees during the financial year under review.)
VI. I further report that with respect to the compliance of the below mentioned laws, we have relied on the compliance system prevailing
in the Company and on the basis of representation received from its concerned department:-
VII. I have also examined compliance with the applicable clauses of the following :-
ii. The Listing Agreements entered into by the Company with the Stock Exchange(s) for the period from 1st April, 2015
to 30th November, 2015; and
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
iii. Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015 for the period from 1st September, 2015 to
During the period under review the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines, Listing Agreements
etc mentioned above.
a. The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors and
Independent Directors. The changes in the composition of the Board of Directors that took place during the period under review were carried out
in compliance with the provisions of the Act. However as per section 149(1) of the Companies Act, 2013, the Company is yet to appoint a
Women Director on its Board of Directors. The Company is taking effective measures to fulfill the requirement of Companies Act, 2013 and
SEBI (Listing Obligations and Disclosures Requirement), Regulations, 2015.
b. During the year review, the company has increased the Authorized Share Capital from from INR 15,00,00,000/- (Fifteen Crores only)
divided into 15,000,000 (One crore Fifty Lakhs) equity shares of INR 10/- each, to INR 25,00,00,000/- (Twenty five crores only) divided into
25,000,000 (Two Crores Fifty lakhs) equity shares of INR 10/- each and 8,000,000 Nos. Equity Shares of Rs. 10 /- each had been allotted by
Private Placement.
c. Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda were sent at least seven days
in advance, and a system exists for seeking and obtaining further information and clarifications on the agenda items before the meeting and for
meaningful participation at the meeting.
d. Majority decision is carried through while the dissenting members' views are captured and recorded as part of the minutes.
e. The Company has obtained all necessary approvals under the various provisions of the Act; and
f. There was no prosecution initiated and no fines or penalties were imposed during the year under review under the Act, SEBI Act, SCRA,
Depositories Act, Listing Agreement, Rules, Regulations and Guidelines framed under these Acts against/ on the Company, its Directors and
Officers.
g. The Directors have complied with the disclosure requirements in respect of their eligibility of appointment, their being independent and
compliance with the Code of Business Conduct and Ethics for Directors and Management Personnel;
h. Maintenance of website of the Company is under process and shall be available for stakeholders in the meantime.
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
3. I further report that based on the information received and records maintained there are adequate systems and processes in the Company
commensurate with the size and operations of the Company to monitor and ensure compliance with applicable laws, rules, regulations and
guidelines.
Place: Kolkata
This report is to be read with letter of even date which is annexed as Annexure A and forms an integral part of this report.
The Members of
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Our responsibility is to express an opinion on these secretarial records based on our audit.
2. I have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the correctness of the contents of
the Secretarial records. The verification was done on test basis to ensure that correct facts are reflected in secretarial records. We believe that the
processes and practices, we followed provide a reasonable basis for our opinion.
3. Where ever required, the Management representation has been about the compliance of laws, rules and regulations and happening of events
etc.
4. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility of management.
Our examination was limited to the verification of procedures on test basis.
5. The Secretarial Audit is neither an assurance as to the future viability of the company nor of the efficacy or effectiveness with which the
management has conducted the affairs of the Company.
Place: Kolkata
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Footnotes
(A) (a) For Goods 261,428,898 (b) For Expenses 139,011,876 (c) Against Letter of Credit 131,977,453 Total 532,418,227
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Footnotes
(A) Interest Income (1,727,136) Profit on Sale of Tangible Fixed Assets (45,854) Total -1772990.00
(B) Increase in Margin Money Deposit
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Disclosure of shareholding more than five per cent in company [Table] ..(1)
Unless otherwise specified, all monetary values are in INR
Classes of share capital [Axis] Equity shares 1 [Member]
Name of shareholder [Axis] Shareholder 1 [Member] Shareholder 2 [Member]
01/04/2015 01/04/2014 01/04/2015 01/04/2014
to to to to
31/03/2016 31/03/2015 31/03/2016 31/03/2015
Disclosure of shareholding more than
five per cent in
company [Abstract]
Disclosure of shareholding more than
five per cent
in company [LineItems]
Type of share EQUITY EQUITY EQUITY EQUITY
KRISHAY PROPERTIES TULSYAN & SONS PVT TULSYAN & SONS PVT BENGAL GENERAL
Name of shareholder PRIVATE LIMITED LTD LTD TRADING CO. PVT. LTD.
CIN of shareholder U70102WB2013PTC194852 U51109WB1988PTC044161 U51109WB1988PTC044161 U51909WB1946PTC013987
Country of incorporation or
residence of INDIA INDIA INDIA INDIA
shareholder
Number of shares held in company [shares] 80,00,000 [shares] 15,00,000 [shares] 15,00,000 [shares] 7,33,200
Percentage of shareholding in
39.00% 12.00% 7.00% 5.8656%
company
Disclosure of shareholding more than five per cent in company [Table] ..(2)
Unless otherwise specified, all monetary values are in INR
Equity shares 1
Classes of share capital [Axis]
[Member]
Shareholder 3
Name of shareholder [Axis]
[Member]
01/04/2014
to
31/03/2015
Disclosure of shareholding more than five per cent in company [Abstract]
Disclosure of shareholding more than five per cent in company [LineItems]
Type of share EQUITY
Shrawan Kumar
Name of shareholder Todi
PAN of shareholder ABWPT5354P
Country of incorporation or residence of shareholder INDIA
Number of shares held in company [shares] 7,63,700
Percentage of shareholding in company 6.1096%
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Application money received for allotment of securities and due for refund,
0 0
principal
Application money received for allotment of securities and due for refund,
0 0
interest accrued
Total application money received for allotment of securities and due for
0 0
refund and interest accrued thereon
Number of shares proposed to be issued [shares] 0 [shares] 0
Share premium for shares to be allotted 0 0
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
N o t e s : N o t e s :
i ) i )
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Footnotes
(A) Cash Credit
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Notes:
a) Nature of securities:
(i) " Term Loan from State Bank of India is secured by way of :
a) First charge over the entire existing and future Fixed Assets of the company and assets created for the Steel Billet project subject to charges
created or to be created in favour of working capital lenders on the current assets for securing Working Capital Facilities.
b) Equitable mortgate over the factory land and building of the company.
d) Personal guarantee of of Mr. S.K.Todi, Director of the company for Rs. 0.23 Crores.
e) Term Loans from banks are secured against respective vehicle or equipment financed from loan and hypothecated in favour of the lender.
b) Terms of repayment:
maturity
of instalments Amount of
No w.r.t.
Balance
Interest due as on
Sheet instalment
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Represents current maturities of long term debts shown under 'Other current liabilities (Note no. 2.9).Amount of Instalments varies as per terms of
sanction.
i) Working Capital loans are secured against hypothecation of entire inventories, book debts and all other current assets and by extension
of charge on fixed assets and current assets of the company.
ii) The Working Capital Limits are guaranteed by Mr. S.K.Todi, Director of the company for Rs. 0.23 Crores.
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Notes:
a) Nature of securities:
(i) " Term Loan from State Bank of India is secured by way of :
a) First charge over the entire existing and future Fixed Assets of the company and assets created for the Steel Billet project subject to charges
created or to be created in favour of working capital lenders on the current assets for securing Working Capital Facilities.
b) Equitable mortgate over the factory land and building of the company.
d) Personal guarantee of of Mr. S.K.Todi, Director of the company for Rs. 0.23 Crores.
e) Term Loans from banks are secured against respective vehicle or equipment financed from loan and hypothecated in favour of the lender.
b) Terms of repayment:
maturity
of instalments Amount of
No w.r.t.
Balance
Interest due as on
Sheet instalment
84
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Represents current maturities of long term debts shown under 'Other current liabilities (Note no. 2.9).Amount of Instalments varies as per terms of
sanction.
i) Working Capital loans are secured against hypothecation of entire inventories, book debts and all other current assets and by extension
of charge on fixed assets and current assets of the company.
ii) The Working Capital Limits are guaranteed by Mr. S.K.Todi, Director of the company for Rs. 0.23 Crores.
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
95
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Footnotes
(A) Manganese Ore : 143748801 MnO Slag :1473330 Coal & Coke :40566138 Dolomite : 685872 Pig Iron : 2312412 Waste & Scrap of
Steel Fdy : 3297564 Waste & Scrap of Steel 1831760 Others : 4126939 Total 198042816
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
99
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Footnotes
(A) For Bonus
100
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Footnotes
(A) With Govt.Authorities 7573191 With Others 206219 Total 206219
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
103
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Footnotes
(A) Statutory liabilities 16,264,968 Unpaid salaries and other payroll dues 221,744 Accrued expenses 756,414 Total 17,243,126
(B) - Upto 3 months from Balance Sheet date 15,000,000 - From 3 months to 12 months from Balance Sheet date
(C) Interest accrued and due - Prepaid Gratuity (365,246) BSAL - Employees Gratuity Fund 1,000 FPS Receivable 3,056,022 Duty
Drawback Receivable 2,290,926 Total 4,982,702
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Mode of valuation
Inventories Inventories are valued as follows: Raw materials & Stores and SparesRaw materials & production consumables are valued at lower of
cost and net realizable value. However, materials and other items held for use in the production of inventories are not written down below cost if
the finished products in which they will be incorporated are expected to be sold at or above cost. Cost is determined on a weighted average basis.
Stores & Spares are valued on estimated basis. Work-in- Process and Finished Goods At lower of cost and net realizable value. Cost includes
direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity. Cost of finished goods includes
excise duty. Cost is determined on a weighted average basis. Net realizable value is the estimated selling price in the ordinary course of business,
less estimated costs of completion and estimated costs necessary to make the sale.
Mode of valuation
Inventories Inventories are valued as follows: Raw materials & Stores and SparesRaw materials & production consumables are valued at lower of
cost and net realizable value. However, materials and other items held for use in the production of inventories are not written down below cost if
the finished products in which they will be incorporated are expected to be sold at or above cost. Cost is determined on a weighted average basis.
Stores & Spares are valued on estimated basis. Work-in- Process and Finished Goods At lower of cost and net realizable value. Cost includes
direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity. Cost of finished goods includes
excise duty. Cost is determined on a weighted average basis. Net realizable value is the estimated selling price in the ordinary course of business,
less estimated costs of completion and estimated costs necessary to make the sale.
Mode of valuation
Inventories Inventories are valued as follows: Raw materials & Stores and SparesRaw materials & production consumables are valued at lower of
cost and net realizable value. However, materials and other items held for use in the production of inventories are not written down below cost if
the finished products in which they will be incorporated are expected to be sold at or above cost. Cost is determined on a weighted average basis.
Stores & Spares are valued on estimated basis. Work-in- Process and Finished Goods At lower of cost and net realizable value. Cost includes
direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity. Cost of finished goods includes
excise duty. Cost is determined on a weighted average basis. Net realizable value is the estimated selling price in the ordinary course of business,
less estimated costs of completion and estimated costs necessary to make the sale.
Mode of valuation
Inventories Inventories are valued as follows: Raw materials & Stores and SparesRaw materials & production consumables are valued at lower of
cost and net realizable value. However, materials and other items held for use in the production of inventories are not written down below cost if
the finished products in which they will be incorporated are expected to be sold at or above cost. Cost is determined on a weighted average basis.
Stores & Spares are valued on estimated basis. Work-in- Process and Finished Goods At lower of cost and net realizable value. Cost includes
direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity. Cost of finished goods includes
excise duty. Cost is determined on a weighted average basis. Net realizable value is the estimated selling price in the ordinary course of business,
less estimated costs of completion and estimated costs necessary to make the sale.
Mode of valuation
Inventories Inventories are valued as follows: Raw materials & Stores and SparesRaw materials & production consumables are valued at lower of
cost and net realizable value. However, materials and other items held for use in the production of inventories are not written down below cost if
the finished products in which they will be incorporated are expected to be sold at or above cost. Cost is determined on a weighted average basis.
Stores & Spares are valued on estimated basis. Work-in- Process and Finished Goods At lower of cost and net realizable value. Cost includes
direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity. Cost of finished goods includes
excise duty. Cost is determined on a weighted average basis. Net realizable value is the estimated selling price in the ordinary course of business,
less estimated costs of completion and estimated costs necessary to make the sale.
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Mode of valuation
Inventories Inventories are valued as follows: Raw materials & Stores and SparesRaw materials & production consumables are valued at lower of
cost and net realizable value. However, materials and other items held for use in the production of inventories are not written down below cost if
the finished products in which they will be incorporated are expected to be sold at or above cost. Cost is determined on a weighted average basis.
Stores & Spares are valued on estimated basis. Work-in- Process and Finished Goods At lower of cost and net realizable value. Cost includes
direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity. Cost of finished goods includes
excise duty. Cost is determined on a weighted average basis. Net realizable value is the estimated selling price in the ordinary course of business,
less estimated costs of completion and estimated costs necessary to make the sale.
Mode of valuation
Inventories Inventories are valued as follows: Raw materials & Stores and SparesRaw materials & production consumables are valued at lower of
cost and net realizable value. However, materials and other items held for use in the production of inventories are not written down below cost if
the finished products in which they will be incorporated are expected to be sold at or above cost. Cost is determined on a weighted average basis.
Stores & Spares are valued on estimated basis. Work-in- Process and Finished Goods At lower of cost and net realizable value. Cost includes
direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity. Cost of finished goods includes
excise duty. Cost is determined on a weighted average basis. Net realizable value is the estimated selling price in the ordinary course of business,
less estimated costs of completion and estimated costs necessary to make the sale.
Mode of valuation
Inventories Inventories are valued as follows: Raw materials & Stores and SparesRaw materials & production consumables are valued at lower of
cost and net realizable value. However, materials and other items held for use in the production of inventories are not written down below cost if
the finished products in which they will be incorporated are expected to be sold at or above cost. Cost is determined on a weighted average basis.
Stores & Spares are valued on estimated basis. Work-in- Process and Finished Goods At lower of cost and net realizable value. Cost includes
direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity. Cost of finished goods includes
excise duty. Cost is determined on a weighted average basis. Net realizable value is the estimated selling price in the ordinary course of business,
less estimated costs of completion and estimated costs necessary to make the sale.
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
[200800] Notes - Disclosure of accounting policies, changes in accounting policies and estimates
Unless otherwise specified, all monetary values are in INR
01/04/2015 01/04/2014
to to
31/03/2016 31/03/2015
Disclosure of accounting policies, change in accounting policies and Textual information (48) Textual information (49)
changes in estimates explanatory [TextBlock] [See below] [See below]
Textual information (50) Textual information (51)
Disclosure of accounting policies explanatory [TextBlock] [See below] [See below]
109
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Disclosure of accounting policies, change in accounting policies and changes in estimates explanatory [Text Block]
1. Significant Accounting Policies
Accounting Concepts
The financial statements of the company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian
GAAP) to comply in all material respects with the accounting standards specified under section 133 of the Companies Act, 2013 read with Rule 7
of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 (�the Act�). The financial statements have
been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company
and except for the changes discussed more fully below, are consistent with those used in the previous year.
Use of Estimates
The preparation of financial statements in conformity with Indian GAAP require the Management to make estimates and assumptions considered
in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The
Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due
to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are
known/materialize.
Borrowing Costs
Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A
qualifying asset is one that necessarily takes substantial period to get ready for intended use. All other borrowing costs are charged to revenue.
Impairment
The carrying amount of assets / cash generating units are reviewed at each balance sheet date to determine if there is any indication of impairment
based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount,
which represents the greater of the net selling price of assets and their value in use. The estimated future cash flows are discounted to their
present value at the weighted average cost of capital.
Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short-term investments with an original maturity of three
months or less, highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of
changes in value.
Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of
transactions of non cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing,
and financing activities of the company are segregated based on the available information.
Revenue Recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably
measured.
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Sale of Goods
Revenue from sale of goods is recognized on passage of significant risk and reward of ownership thereof to the customers, which generally
coincides with delivery and includes excise duty thereon net of returns, claims, rebates, discounts, Sales Tax, VAT etc.
Interest
Revenue is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.
Fixed Assets
Fixed assets are stated at cost less accumulated depreciation. Cost comprises the purchase price inclusive of duties (net of CENVAT and VAT
Credit), taxes, incidental expenses, erection / commissioning expenses, interest and any other cost attributable of bringing the asset to its working
condition and for its intended use upto the date the asset is ready to be put to use. Useful life of the assets have been determined according to the
nature and specification of the assets which is different in some cases from the life as specified in the schedule-II of the Companies Act, 2013.
In respect of fixed assets (other than capital work in progress) acquired during the year, depreciation/amortization is charged on a written down
value method and calculated on prorata basis according to the period the assets have been put to use so as to write off the cost of the assets over
the useful lives and for the assets acquired prior to 1st April, 2014, the carrying amount as on 1st April, 2014 is depreciated over the remaining
useful life based on an evaluation. Assets costing less than ` 5,000/- individually have been fully depreciated in the year of purchase.
Buildings
60
Ferro Division
45
Foundry Division
50
Steel Division
13
Ferro Division
9
Foundry Division
18
Steel Division
Electrical Equipments
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
14
Ferro Division
12
Foundry Division
15
Steel Division
Computer 3
Vehicle
10
Motor Cycle, Scooter, and other Mopeds
8
Motor Buses, Motor Car
Office Equipments 5
Inventories
Raw materials and Stores and Spares Raw materials and production consumables are valued at lower of cost and net realizable value.
However, materials and other items held for use in the production of inventories are not written down below cost if the finished products in which
they will be incorporated are expected to be sold at or above cost. Cost is determined on a weighted average basis. Stores and Spares are valued
on estimated basis.
Work-in- Process
and Finished Goods At lower of cost and net realizable value. Cost includes direct materials and labour and a proportion of manufacturing
overheads based on normal operating capacity. Cost of finished goods includes excise duty. Cost is determined on a weighted average basis.Net
realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary
to make the sale.
Transactions in foreign currencies entered into by the company are accounted at the exchange rates prevailing on the date of the transaction or at
rates that closely approximate the rate at the date of the transaction.
112
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost
denominated in a foreign currency are reported using the exchange rate at the date of the transaction; and non-monetary items which are carried at
fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were
determined.
Exchange differences arising on the settlement / conversion of monetary items are recognized as income or expenses in the period in which they
arise.
(iv) Forward Exchange Contracts not intended for trading or speculation purposes
The premium or discount arising at the inception of forward exchange contracts is amortized as expense or income over the life of the contract.
Exchange differences on such contracts are recognized in the statement of profit and loss in the year in which the exchange rates change. Any
profit or loss arising on cancellation or renewal of forward exchange contract is recognized as income or expense for the year.
Retirement benefits in the form of Provident / Superannuation Funds are defined contribution schemes and the contributions are charged to the
Profit and Loss Account in the year when the contributions to the respective funds are due.
Gratuity liability is a defined benefit obligation and is provided for on the basis of actuarial valuation on projected unit credit method made at the
end of each financial year.
Short term compensated absences are provided for based on estimates whereas long term compensated absences are provided for on the basis of
actuarial valuation.
Actuarial gains/losses are immediately taken to profit and loss account and are not deferred.
Bonus
Bonus for the employees who have completed the requisite period of service under the Payment of Bonus Act, 1965, have been provided in the
account.
Taxation
Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the applicable tax rates and the
provisions of the Income Tax Act, 1961 and other applicable tax laws.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future
income tax liability, is considered as an assets if there is convincing evidence that the company will pay normal income tax.
Deferred Tax is recognized, subject to the consideration of prudence, on timing differences, being difference between taxable and accounting
income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are not recognized unless
there is a �virtual certainty' that sufficient taxable income will be available against which such deferred tax assets will be realized. Deferred Tax
Assets and Liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the company has a legally
enforceable right for such setoff. Deferred tax assets are reviewed at each Balance Sheet date for their realisability.
113
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Segment Reporting
a) Based on the Organizational Structure and its Financial Reporting System, the Company has classified its operation into Four business
segments namely Ferro Division, Foundry Division, Steel Division and Trading Activities.
b) Revenue and Expenses have been identified to segment on the basis of their relationship to the operating activities of the segment. Revenue
and expenses which are related to the enterprise as a whole and are not allocable to segment on a reasonable basis, have been included under
unallocable expenses.
c) Capital Employed to each segment is classified on the basis of allocable assets minus allocable liabilities identifiable to each segment on
reasonable basis.
A provision is recognised when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will
be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not
discounted to its present value and are determined based on best estimates required to settle the obligation at the balance sheet date. These are
reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent assets are not recognized in the financial
statements and contingent assets and liabilities are disclosed in note 2.24.
Derivative Instruments
As per the announcement made by the Institute of Chartered Accountants of India, the accounting for derivative contracts, other than those
covered under Accounting Standard 11, are marked to market on a portfolio basis, and the net loss after considering the offsetting effect of the
underlying hedge item is charged to the income statement. Net gains are ignored as a matter of prudence.
Operating Cycle
All Assets and Liabilities have been classified as current or non-current as per the company's normal operating cycle and other criteria set out in
the Companies' Act, 2013. Based on the nature of services provided and time between the rendering of services and their realization in cash and
cash equivalents, the company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets
and liabilities.
114
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Disclosure of accounting policies, change in accounting policies and changes in estimates explanatory [Text Block]
1. Significant Accounting Policies
Accounting Concepts
The financial statements of the company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian
GAAP) to comply in all material respects with the accounting standards specified under section 133 of the Companies Act, 2013 read with Rule 7
of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 (�the Act�). The financial statements have
been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company
and except for the changes discussed more fully below, are consistent with those used in the previous year.
Use of Estimates
The preparation of financial statements in conformity with Indian GAAP require the Management to make estimates and assumptions considered
in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The
Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due
to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are
known/materialize.
Borrowing Costs
Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A
qualifying asset is one that necessarily takes substantial period to get ready for intended use. All other borrowing costs are charged to revenue.
Impairment
The carrying amount of assets / cash generating units are reviewed at each balance sheet date to determine if there is any indication of impairment
based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount,
which represents the greater of the net selling price of assets and their value in use. The estimated future cash flows are discounted to their
present value at the weighted average cost of capital.
Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short-term investments with an original maturity of three
months or less, highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of
changes in value.
Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of
transactions of non cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing,
and financing activities of the company are segregated based on the available information.
Revenue Recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably
measured.
Sale of Goods
115
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Revenue from sale of goods is recognized on passage of significant risk and reward of ownership thereof to the customers, which generally
coincides with delivery and includes excise duty thereon net of returns, claims, rebates, discounts, Sales Tax, VAT etc.
Interest
Revenue is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.
Fixed Assets
Fixed assets are stated at cost less accumulated depreciation. Cost comprises the purchase price inclusive of duties (net of CENVAT and VAT
Credit), taxes, incidental expenses, erection / commissioning expenses, interest and any other cost attributable of bringing the asset to its working
condition and for its intended use upto the date the asset is ready to be put to use. Useful life of the assets have been determined according to the
nature and specification of the assets which is different in some cases from the life as specified in the schedule-II of the Companies Act, 2013.
In respect of fixed assets (other than capital work in progress) acquired during the year, depreciation/amortization is charged on a written down
value method and calculated on prorata basis according to the period the assets have been put to use so as to write off the cost of the assets over
the useful lives and for the assets acquired prior to 1st April, 2014, the carrying amount as on 1st April, 2014 is depreciated over the remaining
useful life based on an evaluation. Assets costing less than ` 5,000/- individually have been fully depreciated in the year of purchase.
Buildings
60
Ferro Division
45
Foundry Division
50
Steel Division
13
Ferro Division
9
Foundry Division
18
Steel Division
Electrical Equipments
116
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Ferro Division 14
Foundry Division 12
Steel Division 15
Computer 3
Vehicle
10
Motor Cycle, Scooter, and other Mopeds
8
Motor Buses, Motor Car
Office Equipments 5
Inventories
Raw materials and Stores and Spares Raw materials and production consumables are valued at lower of cost and net realizable value.
However, materials and other items held for use in the production of inventories are not written down below cost if the finished products in which
they will be incorporated are expected to be sold at or above cost. Cost is determined on a weighted average basis. Stores and Spares are valued
on estimated basis.
Work-in- Process
and Finished Goods At lower of cost and net realizable value. Cost includes direct materials and labour and a proportion of manufacturing
overheads based on normal operating capacity. Cost of finished goods includes excise duty. Cost is determined on a weighted average basis.Net
realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary
to make the sale.
Transactions in foreign currencies entered into by the company are accounted at the exchange rates prevailing on the date of the transaction or at
rates that closely approximate the rate at the date of the transaction.
117
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost
denominated in a foreign currency are reported using the exchange rate at the date of the transaction; and non-monetary items which are carried at
fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were
determined.
Exchange differences arising on the settlement / conversion of monetary items are recognized as income or expenses in the period in which they
arise.
(iv) Forward Exchange Contracts not intended for trading or speculation purposes
The premium or discount arising at the inception of forward exchange contracts is amortized as expense or income over the life of the contract.
Exchange differences on such contracts are recognized in the statement of profit and loss in the year in which the exchange rates change. Any
profit or loss arising on cancellation or renewal of forward exchange contract is recognized as income or expense for the year.
Retirement benefits in the form of Provident / Superannuation Funds are defined contribution schemes and the contributions are charged to the
Profit and Loss Account in the year when the contributions to the respective funds are due.
Gratuity liability is a defined benefit obligation and is provided for on the basis of actuarial valuation on projected unit credit method made at the
end of each financial year.
Short term compensated absences are provided for based on estimates whereas long term compensated absences are provided for on the basis of
actuarial valuation.
Actuarial gains/losses are immediately taken to profit and loss account and are not deferred.
Bonus
Bonus for the employees who have completed the requisite period of service under the Payment of Bonus Act, 1965, have been provided in the
account.
Taxation
Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the applicable tax rates and the
provisions of the Income Tax Act, 1961 and other applicable tax laws.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future
income tax liability, is considered as an assets if there is convincing evidence that the company will pay normal income tax.
Deferred Tax is recognized, subject to the consideration of prudence, on timing differences, being difference between taxable and accounting
income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are not recognized unless
there is a �virtual certainty' that sufficient taxable income will be available against which such deferred tax assets will be realized. Deferred Tax
Assets and Liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the company has a legally
enforceable right for such setoff. Deferred tax assets are reviewed at each Balance Sheet date for their realisability.
118
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Segment Reporting
a) Based on the Organizational Structure and its Financial Reporting System, the Company has classified its operation into Four business
segments namely Ferro Division, Foundry Division, Steel Division and Trading Activities.
b) Revenue and Expenses have been identified to segment on the basis of their relationship to the operating activities of the segment. Revenue
and expenses which are related to the enterprise as a whole and are not allocable to segment on a reasonable basis, have been included under
unallocable expenses.
c) Capital Employed to each segment is classified on the basis of allocable assets minus allocable liabilities identifiable to each segment on
reasonable basis.
A provision is recognised when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will
be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not
discounted to its present value and are determined based on best estimates required to settle the obligation at the balance sheet date. These are
reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent assets are not recognized in the financial
statements and contingent assets and liabilities are disclosed in note 2.24.
Derivative Instruments
As per the announcement made by the Institute of Chartered Accountants of India, the accounting for derivative contracts, other than those
covered under Accounting Standard 11, are marked to market on a portfolio basis, and the net loss after considering the offsetting effect of the
underlying hedge item is charged to the income statement. Net gains are ignored as a matter of prudence.
Operating Cycle
All Assets and Liabilities have been classified as current or non-current as per the company's normal operating cycle and other criteria set out in
the Companies' Act, 2013. Based on the nature of services provided and time between the rendering of services and their realization in cash and
cash equivalents, the company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets
and liabilities.
119
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Accounting Concepts
The financial statements of the company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian
GAAP) to comply in all material respects with the accounting standards specified under section 133 of the Companies Act, 2013 read with Rule 7
of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 (�the Act�). The financial statements have
been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company
and except for the changes discussed more fully below, are consistent with those used in the previous year.
Use of Estimates
The preparation of financial statements in conformity with Indian GAAP require the Management to make estimates and assumptions considered
in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The
Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due
to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are
known/materialize.
Borrowing Costs
Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A
qualifying asset is one that necessarily takes substantial period to get ready for intended use. All other borrowing costs are charged to revenue.
Impairment
The carrying amount of assets / cash generating units are reviewed at each balance sheet date to determine if there is any indication of impairment
based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount,
which represents the greater of the net selling price of assets and their value in use. The estimated future cash flows are discounted to their
present value at the weighted average cost of capital.
Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short-term investments with an original maturity of three
months or less, highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of
changes in value.
Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of
transactions of non cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing,
and financing activities of the company are segregated based on the available information.
Revenue Recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably
measured.
120
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Sale of Goods
Revenue from sale of goods is recognized on passage of significant risk and reward of ownership thereof to the customers, which generally
coincides with delivery and includes excise duty thereon net of returns, claims, rebates, discounts, Sales Tax, VAT etc.
Interest
Revenue is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.
Fixed Assets
Fixed assets are stated at cost less accumulated depreciation. Cost comprises the purchase price inclusive of duties (net of CENVAT and VAT
Credit), taxes, incidental expenses, erection / commissioning expenses, interest and any other cost attributable of bringing the asset to its working
condition and for its intended use upto the date the asset is ready to be put to use. Useful life of the assets have been determined according to the
nature and specification of the assets which is different in some cases from the life as specified in the schedule-II of the Companies Act, 2013.
In respect of fixed assets (other than capital work in progress) acquired during the year, depreciation/amortization is charged on a written down
value method and calculated on prorata basis according to the period the assets have been put to use so as to write off the cost of the assets over
the useful lives and for the assets acquired prior to 1st April, 2014, the carrying amount as on 1st April, 2014 is depreciated over the remaining
useful life based on an evaluation. Assets costing less than ` 5,000/- individually have been fully depreciated in the year of purchase.
Buildings
60
Ferro Division
45
Foundry Division
50
Steel Division
13
Ferro Division
9
Foundry Division
18
Steel Division
Electrical Equipments
121
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
14
Ferro Division
12
Foundry Division
15
Steel Division
Computer 3
Vehicle
10
Motor Cycle, Scooter, and other Mopeds
8
Motor Buses, Motor Car
Office Equipments 5
Inventories
Raw materials and Stores and Spares Raw materials and production consumables are valued at lower of cost and net realizable value.
However, materials and other items held for use in the production of inventories are not written down below cost if the finished products in which
they will be incorporated are expected to be sold at or above cost. Cost is determined on a weighted average basis. Stores and Spares are valued
on estimated basis.
Work-in- Process
and Finished Goods At lower of cost and net realizable value. Cost includes direct materials and labour and a proportion of manufacturing
overheads based on normal operating capacity. Cost of finished goods includes excise duty. Cost is determined on a weighted average basis.Net
realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary
to make the sale.
Transactions in foreign currencies entered into by the company are accounted at the exchange rates prevailing on the date of the transaction or at
rates that closely approximate the rate at the date of the transaction.
122
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost
denominated in a foreign currency are reported using the exchange rate at the date of the transaction; and non-monetary items which are carried at
fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were
determined.
Exchange differences arising on the settlement / conversion of monetary items are recognized as income or expenses in the period in which they
arise.
(iv) Forward Exchange Contracts not intended for trading or speculation purposes
The premium or discount arising at the inception of forward exchange contracts is amortized as expense or income over the life of the contract.
Exchange differences on such contracts are recognized in the statement of profit and loss in the year in which the exchange rates change. Any
profit or loss arising on cancellation or renewal of forward exchange contract is recognized as income or expense for the year.
Retirement benefits in the form of Provident / Superannuation Funds are defined contribution schemes and the contributions are charged to the
Profit and Loss Account in the year when the contributions to the respective funds are due.
Gratuity liability is a defined benefit obligation and is provided for on the basis of actuarial valuation on projected unit credit method made at the
end of each financial year.
Short term compensated absences are provided for based on estimates whereas long term compensated absences are provided for on the basis of
actuarial valuation.
Actuarial gains/losses are immediately taken to profit and loss account and are not deferred.
Bonus
Bonus for the employees who have completed the requisite period of service under the Payment of Bonus Act, 1965, have been provided in the
account.
Taxation
Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the applicable tax rates and the
provisions of the Income Tax Act, 1961 and other applicable tax laws.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future
income tax liability, is considered as an assets if there is convincing evidence that the company will pay normal income tax.
Deferred Tax is recognized, subject to the consideration of prudence, on timing differences, being difference between taxable and accounting
income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are not recognized unless
there is a �virtual certainty' that sufficient taxable income will be available against which such deferred tax assets will be realized. Deferred Tax
Assets and Liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the company has a legally
enforceable right for such setoff. Deferred tax assets are reviewed at each Balance Sheet date for their realisability.
123
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Segment Reporting
a) Based on the Organizational Structure and its Financial Reporting System, the Company has classified its operation into Four business
segments namely Ferro Division, Foundry Division, Steel Division and Trading Activities.
b) Revenue and Expenses have been identified to segment on the basis of their relationship to the operating activities of the segment. Revenue
and expenses which are related to the enterprise as a whole and are not allocable to segment on a reasonable basis, have been included under
unallocable expenses.
c) Capital Employed to each segment is classified on the basis of allocable assets minus allocable liabilities identifiable to each segment on
reasonable basis.
A provision is recognised when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will
be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not
discounted to its present value and are determined based on best estimates required to settle the obligation at the balance sheet date. These are
reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent assets are not recognized in the financial
statements and contingent assets and liabilities are disclosed in note 2.24.
Derivative Instruments
As per the announcement made by the Institute of Chartered Accountants of India, the accounting for derivative contracts, other than those
covered under Accounting Standard 11, are marked to market on a portfolio basis, and the net loss after considering the offsetting effect of the
underlying hedge item is charged to the income statement. Net gains are ignored as a matter of prudence.
Operating Cycle
All Assets and Liabilities have been classified as current or non-current as per the company's normal operating cycle and other criteria set out in
the Companies' Act, 2013. Based on the nature of services provided and time between the rendering of services and their realization in cash and
cash equivalents, the company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets
and liabilities.
124
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Accounting Concepts
The financial statements of the company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian
GAAP) to comply in all material respects with the accounting standards specified under section 133 of the Companies Act, 2013 read with Rule 7
of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 (�the Act�). The financial statements have
been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company
and except for the changes discussed more fully below, are consistent with those used in the previous year.
Use of Estimates
The preparation of financial statements in conformity with Indian GAAP require the Management to make estimates and assumptions considered
in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The
Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due
to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are
known/materialize.
Borrowing Costs
Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A
qualifying asset is one that necessarily takes substantial period to get ready for intended use. All other borrowing costs are charged to revenue.
Impairment
The carrying amount of assets / cash generating units are reviewed at each balance sheet date to determine if there is any indication of impairment
based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount,
which represents the greater of the net selling price of assets and their value in use. The estimated future cash flows are discounted to their
present value at the weighted average cost of capital.
Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short-term investments with an original maturity of three
months or less, highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of
changes in value.
Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of
transactions of non cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing,
and financing activities of the company are segregated based on the available information.
Revenue Recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably
measured.
Sale of Goods
125
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Revenue from sale of goods is recognized on passage of significant risk and reward of ownership thereof to the customers, which generally
coincides with delivery and includes excise duty thereon net of returns, claims, rebates, discounts, Sales Tax, VAT etc.
Interest
Revenue is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.
Fixed Assets
Fixed assets are stated at cost less accumulated depreciation. Cost comprises the purchase price inclusive of duties (net of CENVAT and VAT
Credit), taxes, incidental expenses, erection / commissioning expenses, interest and any other cost attributable of bringing the asset to its working
condition and for its intended use upto the date the asset is ready to be put to use. Useful life of the assets have been determined according to the
nature and specification of the assets which is different in some cases from the life as specified in the schedule-II of the Companies Act, 2013.
In respect of fixed assets (other than capital work in progress) acquired during the year, depreciation/amortization is charged on a written down
value method and calculated on prorata basis according to the period the assets have been put to use so as to write off the cost of the assets over
the useful lives and for the assets acquired prior to 1st April, 2014, the carrying amount as on 1st April, 2014 is depreciated over the remaining
useful life based on an evaluation. Assets costing less than ` 5,000/- individually have been fully depreciated in the year of purchase.
Buildings
60
Ferro Division
45
Foundry Division
50
Steel Division
13
Ferro Division
9
Foundry Division
18
Steel Division
Electrical Equipments
126
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Ferro Division 14
Foundry Division 12
Steel Division 15
Computer 3
Vehicle
10
Motor Cycle, Scooter, and other Mopeds
8
Motor Buses, Motor Car
Office Equipments 5
Inventories
Raw materials and Stores and Spares Raw materials and production consumables are valued at lower of cost and net realizable value.
However, materials and other items held for use in the production of inventories are not written down below cost if the finished products in which
they will be incorporated are expected to be sold at or above cost. Cost is determined on a weighted average basis. Stores and Spares are valued
on estimated basis.
Work-in- Process
and Finished Goods At lower of cost and net realizable value. Cost includes direct materials and labour and a proportion of manufacturing
overheads based on normal operating capacity. Cost of finished goods includes excise duty. Cost is determined on a weighted average basis.Net
realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary
to make the sale.
Transactions in foreign currencies entered into by the company are accounted at the exchange rates prevailing on the date of the transaction or at
rates that closely approximate the rate at the date of the transaction.
127
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost
denominated in a foreign currency are reported using the exchange rate at the date of the transaction; and non-monetary items which are carried at
fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were
determined.
Exchange differences arising on the settlement / conversion of monetary items are recognized as income or expenses in the period in which they
arise.
(iv) Forward Exchange Contracts not intended for trading or speculation purposes
The premium or discount arising at the inception of forward exchange contracts is amortized as expense or income over the life of the contract.
Exchange differences on such contracts are recognized in the statement of profit and loss in the year in which the exchange rates change. Any
profit or loss arising on cancellation or renewal of forward exchange contract is recognized as income or expense for the year.
Retirement benefits in the form of Provident / Superannuation Funds are defined contribution schemes and the contributions are charged to the
Profit and Loss Account in the year when the contributions to the respective funds are due.
Gratuity liability is a defined benefit obligation and is provided for on the basis of actuarial valuation on projected unit credit method made at the
end of each financial year.
Short term compensated absences are provided for based on estimates whereas long term compensated absences are provided for on the basis of
actuarial valuation.
Actuarial gains/losses are immediately taken to profit and loss account and are not deferred.
Bonus
Bonus for the employees who have completed the requisite period of service under the Payment of Bonus Act, 1965, have been provided in the
account.
Taxation
Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the applicable tax rates and the
provisions of the Income Tax Act, 1961 and other applicable tax laws.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future
income tax liability, is considered as an assets if there is convincing evidence that the company will pay normal income tax.
Deferred Tax is recognized, subject to the consideration of prudence, on timing differences, being difference between taxable and accounting
income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are not recognized unless
there is a �virtual certainty' that sufficient taxable income will be available against which such deferred tax assets will be realized. Deferred Tax
Assets and Liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the company has a legally
enforceable right for such setoff. Deferred tax assets are reviewed at each Balance Sheet date for their realisability.
128
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Segment Reporting
a) Based on the Organizational Structure and its Financial Reporting System, the Company has classified its operation into Four business
segments namely Ferro Division, Foundry Division, Steel Division and Trading Activities.
b) Revenue and Expenses have been identified to segment on the basis of their relationship to the operating activities of the segment. Revenue
and expenses which are related to the enterprise as a whole and are not allocable to segment on a reasonable basis, have been included under
unallocable expenses.
c) Capital Employed to each segment is classified on the basis of allocable assets minus allocable liabilities identifiable to each segment on
reasonable basis.
A provision is recognised when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will
be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not
discounted to its present value and are determined based on best estimates required to settle the obligation at the balance sheet date. These are
reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent assets are not recognized in the financial
statements and contingent assets and liabilities are disclosed in note 2.24.
Derivative Instruments
As per the announcement made by the Institute of Chartered Accountants of India, the accounting for derivative contracts, other than those
covered under Accounting Standard 11, are marked to market on a portfolio basis, and the net loss after considering the offsetting effect of the
underlying hedge item is charged to the income statement. Net gains are ignored as a matter of prudence.
Operating Cycle
All Assets and Liabilities have been classified as current or non-current as per the company's normal operating cycle and other criteria set out in
the Companies' Act, 2013. Based on the nature of services provided and time between the rendering of services and their realization in cash and
cash equivalents, the company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets
and liabilities.
129
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Retirement benefits in the form of Provident / Superannuation Funds are defined contribution schemes and the contributions are charged to the
Profit and Loss Account in the year when the contributions to the respective funds are due.
Gratuity liability is a defined benefit obligation and is provided for on the basis of actuarial valuation on projected unit credit method made at the
end of each financial year.
Short term compensated absences are provided for based on estimates whereas long term compensated absences are provided for on the basis of
actuarial valuation.
Actuarial gains/losses are immediately taken to profit and loss account and are not deferred.
Retirement benefits in the form of Provident / Superannuation Funds are defined contribution schemes and the contributions are charged to the
Profit and Loss Account in the year when the contributions to the respective funds are due.
Gratuity liability is a defined benefit obligation and is provided for on the basis of actuarial valuation on projected unit credit method made at the
end of each financial year.
Short term compensated absences are provided for based on estimates whereas long term compensated absences are provided for on the basis of
actuarial valuation.
Actuarial gains/losses are immediately taken to profit and loss account and are not deferred.
130
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
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BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
132
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
133
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
134
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
135
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
136
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Footnotes
(A) Sale of goods (Gross) (A) Finished Goods Silico Manganese 879,515,417 S.G.C.I. Inserts 281,279,510 Steel Billets - Others
7,907,250 Total (A) 1,168,702,177 (B) Traded Goods Silico Manganese - High Mno Slag 1,393,265 Met Coke 4,272,130 Manganese Ore
263,502,813 Total (B) 269,168,208 Grand Total (A+B) 1,437,870,385
(B) Other operating revenues Conversion Charges (Gross) 111,976,471 Export Duty Drawback 5,521,608 Income from FPS Licence
3,041,409 Sale of Status Holder Licence 3,235,214 Sale of FPS Licence 0 Total 123,774,702
(C) translations 1,012,565 Profit on sale of fixed assets 45,854 Total 1,058,419
(D) Finance cost on borrowings 72,831,197 Other borrowing costs 2,743,368 Total 75,574,565
(E) Selling & Distribution Expenses
(F) Stock Audit Fees 48,840 ISO Surveillance Audit Fees 93,000 Net Loss on foreign currency transactions and 1,954,063 Share
Processing Fees 0 Miscellaneous expenses 15,977,688 Total 18,073,592
137
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably
measured.
Sale of Goods
Revenue from sale of goods is recognized on passage of significant risk and reward of ownership thereof to the customers, which generally
coincides with delivery and includes excise duty thereon net of returns, claims, rebates, discounts, Sales Tax, VAT etc.
Interest
Revenue is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.
138
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably
measured.
Sale of Goods
Revenue from sale of goods is recognized on passage of significant risk and reward of ownership thereof to the customers, which generally
coincides with delivery and includes excise duty thereon net of returns, claims, rebates, discounts, Sales Tax, VAT etc.
Interest
Revenue is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.
139
BHASKAR SHRACHI ALLOYS LTD Standalone Financial Statements for period 01/04/2015 to 31/03/2016
[300700] Notes - Key managerial personnels and directors remuneration and other information
Disclosure of key managerial personnels and directors and remuneration to key managerial personnels and directors [Table] ..(1)
Unless otherwise specified, all monetary values are in INR
Key managerial personnels and directors [Axis] M1 M2 M3
01/04/2015 01/04/2015 01/04/2015
to to to
31/03/2016 31/03/2016 31/03/2016
Disclosure of key managerial personnels and directors and
remuneration to key managerial personnels and directors [Abstract]
Disclosure of key managerial personnels and directors and
remuneration to key managerial personnels and directors
[LineItems]
SHRAWAN SANJEEV MUKESH KUMAR
Name of key managerial personnel or director KUMAR TODI AGARWAL RATHI
Director identification number of key managerial personnel or
00080303 00080755 06683723
director
Date of birth of key managerial personnel or director 31/07/1943 23/04/1967 25/08/1986
Designation of key managerial personnel or director Independent Director Independent Director Independent Director
Qualification of key managerial personnel or director B.Com B.Com CA & CS
Shares held by key managerial personnel or director [shares] 6,38,100 [shares] 0 [shares] 0
Key managerial personnel or director remuneration [Abstract]
Gross salary to key managerial personnel or director [Abstract]
Salary key managerial personnel or director 0 0 0
Gross salary to key managerial personnel or director 0 0 0
Total key managerial personnel or director remuneration 0 0 0
140