| 1. Corporate Information:
Garg Furnace Limited is a Public Limited company incorporated in India
under Provisions of Companies Act, 1956. Its shares are listed in
Bombay Stock Exchange, Delhi stock exchange and Ludhiana stock
exchange. The Company is engaged in manufacturing of Alloy and Non
Alloy Steel Ingots, Wire Rod, Wire Round, Mig Wire, casting of Iron
products and trading of Iron, Steel and Textile products
2. Contingent Liabilities
(I) As at 31st As at 31st
March-2015 March 2014
a) For Bank Guarantees Rs. 2163.87 Lacs Rs. 2307.38 Lacs
and letter of credit
outstanding
b) Other Contingent Liabilities Rs. 51.11 Lacs Rs. 55.20 Lacs
c) . Other monies for which company is contingently liable:
The company has contested the demand of Punjab Power Corporation Ltd of
Rs 72306370/- on account of voltage surcharge. As Against this a sum of
Rs 53510589/- has been deposited under protest and stands included
under the head "Advances Recoverable in cash or In kind. "The Company
has filed an appeal in Punjab And Haryana High Court. Honourable High
court has granted stay in disconnection of supply of electricity of
company. No provision in accounts has been made in respect thereof.
(II) Commitments:
As at 31st As at 31st
March-2015 March 2014
a) Estimated amount of contracts Nil Rs. 202.08 Lacs
Remaining to be executed on Capital
account (net of advances.
3. Debit or Credit Balances on whatsoever account are subject to
confirmation from parties.
4. In the opinion of the Board of Directors, all the Current Assets,
Loans & Advances have a value on realization in the ordinary course of
business at least equal to the amount of at which they are stated
,except as expressly stated otherwise.
Disclosure under Accounting Standards:
5. The Earning per share has been calculated in accordance with
Accounting Standard (AS)-20 issued by the Institute of Chartered
Accountants of India. The numerators and denominators used to calculate
basic and Diluted Earning per share are as under:-
6. The Company has a defined benefit gratuity plan. Every employee
who has completed five years or more of service gets a gratuity on
departure at 15 days salary (Last drawn salary) for each completed year
of service subject to a maximum amount of Rs. 10,00,000.00.
The Accounting Standard (AS-15 Revised) prescribed by the companies
Accounting Standard Rules 2006 is being followed and the following
table summarize the components of net benefit/expenses recognized in
the Statement of profit and loss and the funded status and the amount
recognized in the balance sheet for the gratuity plan.
Method of Valuation: Projected Unit Credit Method
7. Related Party Disclosure:
i) Name of related parties and description of relationship
A. Key Management Personnel
1. Sh. Devinder Garg - Executive Chairman
2. Smt. Vaneera Garg - (Wholetime Director)
3. Sh. Toshak Garg - (Managing Director)
4. Sh. Daksh Garg - (CFO)
ii) Enterprise owned or significantly influenced by key management
personnel and their relatives.
A. Vaneera Industries Ltd
B. Avtar Exports Pvt Ltd
C. Devinder Garg & Son's HUF
Summary of Associates Key Managerial Personnel
Transactions
iii) There is no provision for doubtful debts or amounts written off or
written back during the year in respect of dues from or to related
parties.
8. Segment Information as required by Accounting Standard (AS)-17 on
Segment Reporting issued by the Institute of Chartered Accountants of
India is disclosed hereunder :-
The company has identified two reportable segments viz; Iron & Steel
Products & Textile product
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