1. The Company has only one class of equity shares having face value of Rs. 10/- per share. Each equity share holder is entitle for one vote for one share. Each share holder has the right of appointing proxy.
2. During the previous year the Company has made an Initial Public Offer of 20,00,000 Equity Shares of Rs. 10/- each for cash at par vide Prospectus dated 14th March, 2016. The Company has successfully completed the Initial Public Offering (IPO) in the current year pursuant to the applicable SEBI Rules and Regulations. The IPO opened on 18th March, 2016 and closed on 22nd March, 2016.
3. The IPO of the Company received an encouraging response from the investors and the public issue was oversubscribed. The Equity Shares of the Company have been listed on SME Platform of BSE Limited w.e.f 1st April, 2016.
4. Reporting of Equity share outstanding at the beginning and at the end of the reporting period:
5. The profit and loss account is the balance of net profit after provision of taxation and all carried over to balance sheet from profit and loss account.
6. The subsidy of Rs. 15 Lakh under scheme CLCSS is received and lying with Vjya Bank as FDR due to lock in period of three years and the same is taken to capital reserve.
7. The company had taken term loan from Vjaya Bank. The term loan is secured by way of mortgage/hypothecation of company land, shed and building, all machineries and also additional personal security provided to bank by directors.
8. The loan of Vjaya bank is taken over by HDFC bank with an enhanced addition working capital facility immediately after the completion of the year under audit.
9. The inter corporate deposit and all unsecured loans have been repaid by the company during the year by issuance of equity shares @10/- per share by right issue.
10. The company had taken working capital loan from Vjaya Bank. The working capital loan is secured by way of hypothecation of entire current assets (entire stock and book debts/receivable) of the company and factory land and building are provided as collateral along with the directors personal properties.
11. Current portion of long term debt is the installments due for payment within next one year by the company.
12. The details of amounts outstanding to Micro, Small and Medium Enterprises based on information available with the Company is as under. This is reported based on the database available with the company.
13. All these statutory dues are accruals for the last month and have been paid in the next month
14. The whole of the fixed assets were erected and installed on the NA land acquired by the company through registered perpetual lease deed with registrar of land Tal : Talod, Dist : Sabarkantha However on 6th day of November 2015 the company purchased the said land with the registered sale deed at the total cost of Rs. 29.84 Lakhs and shown in the balance sheet as factory land.
15. The company spent an amount of Rs. 75.31 Lakhs on expansion of factory shed and out of which Rs. 25.02 Lakhs have been used from public issue money as stated in the prospectus.
16. The company has made an investment of Rs. 108.32 lakhs in the Plant & Machinery during the year. The company has purchased three tube mills, crane, pipe polishing machine, weighbridge, welding machine etc. during the year.
17. Raw material inventories includes coil, packing material, stores and spares packing material etc.
18. Finished goods include the stock of pipes and tubes with all sizes and all thicknesses and grades.
19. This stock is hypothecated to bank for working capital facilities taken by the company.
20. The security deposits includes mainly the deposit of Rs. 2.77 lakhs lying with UGVCL for electric connection paid by company and two deposits which are made for security deposits to be given to BSE for public issue which is conducted by company this year and the same is refundable after full payment of all issue intermediaries.
21. Company received provisional sanction from government authorities for interest subsidy and visit by concerned authorities is also finished and it satisfied all conditions there in and so having not only reasonable but virtual certainty for receipt of same and so interest subsidy income is recognized and the same part is taken as other current asset here.
22. UGVCL sanctioned the electricity subsidy and based on that the provision is made for the GEB subsidy and the same is reported here under this head of other assets.
23. Misc expenditure incurred not written off includes the expenditure relating to the public issued incurred during the year. But as the issue proceeds from the issue received in the next year and not utilized during this year the expenditure for the same will be claimed in next year.
24. Labour income is the income of company where in the company provided the fabrication services to customers and the same is collected also during the year.
25. UGVCL sanctioned the electricity subsidy and based on that the provision is made for the GEB subsidy and the same is reported here under this head of other assets.
26. Company received provisional sanction from government authorities for interest subsidy and visit by concerned authorities is also finished and it satisfied all conditions there in and so having not only reasonable but virtual certainty for receipt of same and so interest subsidy income is recognized.
27. The company made presentation this year and the some heads like polishing material purchase, packing material purchase are presented as part of purchase this year as compared to shown as direct expenditure last year so in these heads there is a large variation.
28. In case of immediate order and time crisis to complete the order the company directly purchases the finished goods and provide the same to the buyer.
29. Inventory includes the stock of the finished goods of SS pipes of different size lying with the company.
30. Interest expenditure includes the interest paid on availing the cash credit facilities of Rs. 21,03,222/- and Interest on term loan of Rs. 28,43,816/-
Note 31 : Other Notes forming part of balance sheet
32. Previous year's figures are regrouped rearranged wherever necessary to make the data comparable.
33. As explained to us the company complied the liability for ESI/PF and explained that gratuity is not applicable to company.
34. In the opinion of the board the current assets, loans & advances and other receivables have value on realization in ordinary course of business at least equal to the amount at which they are stated in the balance sheet.
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