2010-11 - Grasim

UltraTec
ech Cement Limited
SCHEDULE 21 (Contd.)
6. (a). Contingent Liabilities not provided for in respect of:
Claims not acknowledged as debts in respect of matters in appeals
` in Crores
2010-1
0-11 2009-1
09-10
(a) Sales-tax liability 134.80 61.34
(b) Excise duty 159.52 53.00
(c) Royalty on Limestone/Marl 181.06 42.84
(d) Customs 2.82 0.11
(e) Others 210.81 26.03
(b). The Company has issued Corporate guarantees in favour of Government Authorities for
its Joint Ventures.
(i) Madanpur (North) Coal Company (Pvt.) Ltd. ` 3.65 Crores (Previous year ` 3.65
Crores)
(ii) Bhaskarpara Coal Company Limited ` 4.00 Crores* (Previous year ` Nil)
* Transferred pursuant to the Scheme of Amalgamation of SCL with the Company.
7. The Ministry of Textiles, vide its orders dated June 30, 1997 and July 1, 1999 has deleted
cement from the list of commodities to be packed in Jute bags under the Jute Packaging
(Compulsory Use in Packing Commodities) Act 1987. In view of this, the Company does not
accept any liability for non-despatch of cement in Jute bags in respect of earlier years.
8. The Srilankan customs commenced an inquiry on the allegation that dividends declared by
the Company’s Subsidiary UltraTech Cement Lanka (Pvt) Ltd. (UCLPL) and remitted to the
Company represents part of settlement in respect of the cement imported by the UCLPL and
that additional duty is payable by the UCLPL. The Sri Lanka Customs have not provided a
basis for any value to be attributed as alleged additional duty payable. The inquiry was last
held on September 01, 2010.
The UCLPL has also filled a Written Application in the Court of Appeal in seeking inter alia to
quash the aforesaid decision by Srilanka Customs to hold the said inquiry and the said
application is at the stage of filling counter objections by the respondents. The next hearing
date is scheduled for May 30, 2011.
The UCLPL contends there is no basis to include dividends paid in the value of goods and
consequently intends to resist the aforesaid contention of the Customs at any inquiry.
9. Estimated amount of contracts remaining to be executed on capital account and not provided
for (net of advances) ` 2,056.46 Crores (Previous Year ` 233.29 Crores).
10.
Segment Reporting:
Business Segment
The Company is exclusively engaged in the business of cement and cement related products.
This is in context of AS 17 “Segment Reporting”, notified under the Companies (Accounting
Standard) Rules, 2006, constitutes one single primary segment.
Geographical Segment is identified as secondary segment and details are given below:
` in Crores
2010-1
0-11 2009-1
09-10
Segment Revenues (Sales):
India 12,820.54 6,588.69
Rest of the World 870.61 586.44
Tot
otal
13,691
3,691.1
.15 7,1
,175.1
75.13
82