VISA Steel Limited Annual Report 2007-08

More documents

Recommendations

Info

VISA Steel Limitedschedulesto the CONSOLIDATED accountsat Kalinganagar Industrial Complex, District Jajpur, Orissa together with hereditaments and premises and building,plant and machineries permanently affixed thereto and other erections thereon both present and future at Plant atKalinganagar Industrial Complex, Dist – Jajpur, Orissa and second charge on all the current assets of the Companyranking parri passu with other banks alongwith Corporate Guarantee of VISA International Limited and personalguarantee of Managing Director of the holding Company.(c) In respect of Holding Company Vehicle and other loan from banks and financial Institutions are secured by way ofhypothecation of vehicles/machinery taken under the loan arrangement.4 (a) During the year ended 31 March 2006, the Holding Company had issued 35,000,000 equity shares of Rs. 10/- each byway of public issue of shares at a price of Rs. 57/- per equity share amounting to Rs. 1,995 Million to finance a part ofthe capital expenditure for Brownfield expansion of existing manufacturing activities into an integrated 0.5 million TPAspecial and stainless steel plant by setting up the Ferro Chrome plant, Sponge Iron plant, Waste Heat Recovery Powerplant, Special and Stainless Steel plant, associated infrastructure facilities in addition to the already commissionedBlast Furnace and Coke Oven Plant at Kalinganagar Industrial Complex, and to meet issue expenses. The entireamount has been utilised in new projects earmarked for the same by the year end.(b) Expenditure related to issue of shares is being amortised over a period of five years from the date of issue, accordinglyan amount of Rs. 26.78 Million has been charged to the Profit and Loss Account.Rs. Million31 March 2008 31 March 20075 Interest (net) comprisesInterest Charges on :Overdraft Facilities 34.43 26.32Term Loan 147.05 89.17Other Loan 130.04 73.24311.52 188.73Less : Interest Income [TDS Rs. 37.70 Million (2007: Rs. 31.78 Million)] (226.43) (166.11)6 Deferred Tax Provision has been made in the accounts in accordancewith the requirements of the Accounting Standard on “Taxes on Income”(AS 22) issued by The Institute of Chartered Accountants of India.The major components of the deferred tax Liabilities/(Assets) based onthe tax effects of timing differences are as follows :85.09 22.62Deferred Tax LiabilitiesDepreciation 342.63 208.39Public Issue Expenses 8.46 8.44351.09 216.83Deferred Tax AssetsOthers (1.90) (18.91)349.19 197.92In respect of the subsidiaryThe carry forward loss under the Income Tax Act, 1961, has not beenrecognised as deferred tax asset in the absence of virtual certainity thatsufficient future taxable income will be available against which suchdeferred tax assets can be realised7 Consolidated Earning per ShareConsolidated Profit after Tax (A) 431.52 205.35Weighted average number of Rs. 10 equity share outstanding during the year (B) 110,000,000 110,000,000Basic and Diluted Earning per Share (A/B) 3.92 1.87VISA Steel Limitedschedulesto the CONSOLIDATED accounts8 Directors Remuneration (in respect of Holding Company)Rs. Million31 March 2008 31 March 2007Salaries, Allowances & Bonus 12.56 8.42Retirement benefits 1.92 2.54Perquisites 2.20 1.90Commission 9.25 6.0925.93 18.95Note :Includes Rs. 4.51 Million remuneration of one of the WholetimeDirectors of the Holding Company whose re-appointment and remunerationwith effect from 15 December 2007 are subject to apporval of shareholodersof the Holding Company.9 Operating Leases [In respect of Holding Company] 7.65 7.36Rent [Including minimum lease payment Rs. Nil (2007: Rs. Nil)][Operating leases for office premises are entered into as on for a periodof three years and thereafter renewable by mutual consent of both theparties. The operating leases are cancelable by either party by givingthree month’s notice.]10 Investment in Joint VentureJoint VenturePatrapada Coal Mining Company Pvt. Ltd.Country of IncorporationIndiaPercentage of Ownership Interest as at 31 March 2008 0.49%During the current year no Profit and Loss Account has been prepared for joint venture, as there was no revenuetransactions. However, the Group’s share of the assets and liabilities etc. based solely on the accounts prepared for theinternal management reporting purposes by the Holding Company to assess the performance of the joint venture relatedto its interest in the Joint Venture.11 The Holding Company had entered into a joint venture agreement with Baosteel Resources Co. Ltd. and VISA ComtradeAG on 17 August 2007 for setting up a 100,000 tpa Ferro Chrome Plant in Orissa. The JV Company, titled “VISA BAOLimited” has been incorporated on 1 February 2008 and has become a subsidiary of VISA Steel Limited. w.e.f 23 May2008. An amount of Rs. 4.71 Million has been paid towards expenses incurred for incorporation of the said Joint Ventureduring the year, which is included under Loans & Advances in Schedule 8.12 Related Party DisclosuresName of the Related Parties :Ultimate Holding CompanyVISA Minmetal AGEnterprise having significant influenceVISA International Ltd.Fellow SubsidiariesKey Managerial PersonnelRelatives of Key Managerial PersonnelEnterprise over which Relatives of KeyManegerial Personnel having significant influenceVISA Comtrade AGVISA Coal Pty. Ltd.VISA Comtrade (Asia) Ltd., HongkongVISA Comtrade (Asia) Ltd., SingaporeVISA Power LimitedVISA PLCVISA Comtrade LimitedNorth East Resources LimitedMr. Vishambhar SaranMr. Vishal AgarwalMrs. Saroj AgarwalMr.Vikas AgarwalMr Vivek AgarwalMrs Bhawna AgarwalMr Ashok AgarwalKhandadhar Minerals LimitedVISA Aviation LimitedVISA Infrastructure LimitedTastebuds Gourmet Foods Pvt. Ltd.Annual Report 2007-08103
VISA Steel Limitedschedulesto the CONSOLIDATED accountsVISA Steel Limitedschedulesto the CONSOLIDATED accounts16 Notes on Consolidated Accounts16 Notes on Consolidated AccountsDetails of Transactions with Related Parties Rs. Million31 March 2008 31 March 2007Fellow Enterprise Key Relatives of Enterprise Fellow Enterprise Key Relative of EnterpriseSubsidiaries having Managerial key over which Subsidiaries having Managerial Key over whichsignificant Personnel Managerial Relatives of significant personnel Managerial Relatives ofInfluence Personnel Key Influence Personnel KeyNature of Transaction Managerial ManagerialPersonnel Personnelhaving havingsignificant significantinfluence influenceRent - 1.50 - - - - 0.80 - - -Purchase of Goods 4,835.07 - - - - 3,331.96 - - - -Sale of Goods 612.69 - - - - 1,024.50 - - - -Material Handling Expenses 98.57 - - - - - - - - -Freight and Selling Expenses 26.49 - - - - - - - - -Miscellaneous Expenses 1.58 0.51 - - - - - - - -Purchase of Fixed Assets 8.62 - - - - - 1.55 - -Sale of Fixed Assets - - - - - 5.35 0.82 - - -Behalf payment made to others 0.62 - - - - 21.08 6.67 - - 0.01Refund of the above 0.62 - - - - 16.25 6.67 - - -Payments made by others - - - - - 0.05 2.35 - - -Refund of above - - - - - - 2.35 - - -Advance Received - - - - 0.51 - - - - -Remuneration - - 23.43 3.76 - - - 17.46 2.37 -Sitting Fees - - - 0.40 - - - - 0.15 -Outstanding at closingDebit - - - - - - 0.56 - - 0.51Credit 3,058.66 0.85 - - - 1,148.83 - - 0.01 -Details of Transactions with Related Parties (Contd.)Disclosure in respect of transactions in excess of 10% of the total related party transactions of the same typeRs. MillionNature of Transactions Name of the related Party 31 March 2008 31 March 2007Rent VISA International Limited 1.50 0.80Purchase of Goods VISA Comtrade AG 4,494.80 3,331.96Sale of Goods VISA Comtrade AG 612.69 1,024.50Material Handling Expenses VISA Comtrade Limited 98.57 -Freight and Selling Expenses VISA Comtrade Limited 26.49 -Miscellaneous Expenses VISA Comtrade AG 3.61 -VISA Comtrade Limited 2.03 -VISA International Limited 0.51 -Purchase of Fixed Assets VISA International Limited - 1.55VISA Comtrade (Asia) Ltd. 8.62 -SingaporeSale of Fixed Assets VISA Comtrade Limited - 4.95VISA International Limited - 0.82Behalf payment made to others VISA Comtrade AG - 4.79VISA International Limited - 6.67VISA Power Limited 0.62 15.22Refund of the above VISA International Limited - 6.67VISA Power Limited 0.62 15.22Payments made by others VISA International Limited - 2.35Refund of the above VISA International Limited - 2.35Sitting Fees Mr. Vikas Agarwal 0.09 0.05Mr. Vivek Agarwal 0.19 0.04Mrs. Saroj Agarwal 0.12 0.06Remuneration Mr. Vishal Agarwal 10.01 7.07Mr. Vishambhar Saran 13.42 10.39Annual Report 2007-08105
Page 4: proxyVISA STEELAT A GLANCEVISA Stee
Page 8 and 9: integrating the value chainWith com
Page 10 and 11: integrating the value chainWith the
Page 12 and 13: CHAIRMAN’SSTATEMENTWe shall conti
Page 14 and 15: 0103 05 07 09 11PROFILE OF THEBOARD
Page 16 and 17: CORPORATESOCIAL RESPONSIBILITYCOMMI
Page 18 and 19: Our priority is to be aresponsible
Page 20 and 21: Installation of 25 MW PowerPlant ba
Page 22 and 23: New design of Pushercar has been in
Page 24 and 25: The Joint Venture Company withBaost
Page 26 and 27: Concerted efforts towardsstabilisat
Page 28 and 29: Corporate Governance is a six prong
Page 30 and 31: The Company periodically identifies
Page 32 and 33: ShareholdersInformationThe Company
Page 35 and 36: VISA Steel Limitedannexureto audito
Page 37 and 38: VISA Steel LimitedVISA Steel Limite
Page 39 and 40: VISA Steel Limitedschedulesto the P
Page 41 and 42: VISA Steel LimitedSchedulesto the a
Page 48 and 49: VISA Steel Limitedauditor’s repor
Page 50 and 51: VISA Steel Limitedschedulesto the C
Page 58 and 59: Ghotaringa Minerals LimitedDIrecTOR
Page 60 and 61: Ghotaringa Minerals Limitedbalance
Page 62 and 63: Ghotaringa Minerals LimitedSCHEDULE
Page 64 and 65: Ghotaringa Minerals LimitedGhotarin

VISA Steel Limited Annual Report 2007-08

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?