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Notes to Accounts of La Opala RG Ltd.

Mar 31, 2016

Note 1: NATURE OF OPERATIONS

La Opala RG Limited is a leading manufacturer and marketer of life style product in tableware segment. The company has spread the wings beyond domestic arena and ventured into leading market of the world.

2 DISCLOSURE UNDER AS-15

Employees Benefits in form of gratuity has been measured on the Projected Unit Credit Method on the basis of actuarial valuation. The actuarial valuation of Gratuity has been done on the following assumptions:

3 MICRO, SMALL & MEDIUM ENTERPRISES

There were no dues outstanding to the suppliers as on 31.03.2016 registered under the Micro, Small and Medium Enterprises (Development) Act, 2006, to the extent such parties have been identified from the available documents/ information. No interest in terms of such Act has either been paid or provided during the year.

4 DEPRECIATION

During the year 2014-15, the company had revised the Depreciation rates of fixed assets, according to the useful lives specified in Schedule –II of the Companies Act, 2013.Further Depreciation on assets whose useful live had already been exhausted before 1st April 2014 had been adjusted to General Reserve amounting to the extent of Rs. 79,53,116/- (net of deferred tax impact thereon).

5 During the year, the Company has spent Rs.80,97,608/- towards expenditure on Corporate Social Responsibility in accordance with Section 135 of the Companies Act, 2013 read with Schedule VII thereof.

6 (a) There is no forward contract outstanding at the year end

7 In accordance with Accounting Standard 29 on "Provisions, Contingent Liabilities and Contingent Assets" the following provisions are in the books of accounts as at March 31st, 2016.

8 PREVIOUS YEAR''S FIGURES

Previous year''s figures, which are given in brackets, have been regrouped or reclassified, wherever necessary.


Mar 31, 2015

Note 1: Related Party Disclosure

Associates Genesis Exports Ltd.

Enterprises where control exists Ishita Housing ( P) Ltd SKJ Estate (P) Ltd. Anuradha Designers ( P) Ltd

Key Management Personnel :

Sushil Jhunjhunwala - Vice Chairman & Managing Director Ajit Jhunjhunwala - Joint Managing Director Nidhi Jhunjhunwala - Executive Director

Relatives of key management personnel

Shruti Kishorepuria and Himanshu Jhunjhunwala. (Ceased to be employee with effect from 01-04-2014) In case of asset taken on lease:

Operating Lease:

Land at Sitargunj was taken on lease during 2006-07 for 90 years. The annual lease rent is required to be paid @ Rs.5/- per sq. mtr. The total area of land is 40,497.19 sq. mtr.

Office premises at Kolkata and Delhi have been obtained on non cancelable operating lease. The monthly rent payable is Rs.287,500 per month payable as per the agreement dated 1st April 2014 which has been entered for a period of 3 years. There are no restrictions imposed on lease arrangements. There is no sub lease.

Note 2(b):

Estimated amount of Contracts remaining to be executed on Capital Account and not provided for (Net of advances) is Rs.33,63,13,894/- (Rs.2,31,78,468)

Note 3: Micro, Small & Medium Enterprises

There were no dues outstanding to the suppliers as on 31.03.2015 registered under the Micro, Small and Medium Enterprises (Development) Act, 2006, to the extent such parties have been identified from the available documents / information. No interest in terms of such Act has either been paid or provided during the year.

Effective 01st April 2014, the company has revised the Depreciation rates of fixed assets, according to the useful lives specified in Schedule -II of the Companies Act, 2013, resulting into increase in depreciation charge for the year by Rs.251.09 Lacs.

Further Depreciation on assets whose useful live has already been exhausted before 1st April 2014 (net of deferred tax impact thereon) has been adjusted to General Reserve amounting to the extent of Rs.79,53,116/-.

Note 4:

The funds received from further issue of equity shares on private placement basis during the year is being utilized for the purpose as approved by the shareholders.

Note 5:

During the year, the Company has spent Rs.27,76,275/- towards expenditure on Corporate Social Responsibility in accordance with Section 135 of the Companies Act, 2013 read with Schedule VII thereof.


Mar 31, 2013

Note 1 Nature of Operations

La Opala RG Limited is a leading manufacturer and marketer of lifestyle product in tableware segment. The Company has spread the wings beyond domestic arena and ventured into leading market of the world.

Basis of preparation of Financial Statements

The financial statements have been prepared in accordance with Generally Accepted Accounting Principles in India and comply with Accounting Standards notified by the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956 (the Act). The financial statements have been prepared under the historical cost convention (except for revaluation of certain fixed assets) on accrual basis except for subsidy, insurance claim and carbon credit, which are accounted for on cash/ acceptance basis due to uncertainty of realisation.

The accounting policies, in all material aspects, have been consistently applied by the company and are consistent with those used in the previous year. The preparation of the financial statements in conformity with Generally Accepted Accounting Principles requires the management to make estimates and assumptions that affect the reported amounts of assets, liabilities and contingent liabilities at the date of financial statements and income and expenses for the reporting period. Estimates and assumptions are reviewed on an ongoing basis.

2 Disclosure under AS-15

Employees Benefits in form of gratuity has been measured on the Projected Unit Credit Method on the basis of actuarial valuation. The actuarial valuation of Gratuity has been done on the following assumptions:

3 Segment Information

The company mainly deals in one product - glass and glassware. As such, it does not have reportable business segment. For the purpose of geographical segments, the consolidated sales are divided into India and other countries. The following table shows the distribution of the Company''s consolidated sales by geographical market, regardless of where the goods were produced:

4 Related Party Disclosure

Associates Genesis Exports Ltd

Ishita Housing (P) Ltd

SKJ Estate (P) Ltd

Anuradha Designers (P) Ltd

Key Management Personnel Sushil Jhunjhunwala Vice Chairman & Managing Director

Ajit Jhunjhunwala Joint Managing Director

Nidhi Jhunjhunwala Executive Director

Relatives of Key Management Personnel Shruti Kishorepuria

Himanshu Jhunjhunwala

5 Lease

In case of asset taken on lease:

Operating Lease:

Land at Sitargunj was taken on lease during 2006-07 for 90 years. The annual lease rent is required to be paid @ Rs 5 per sq. mtr. The total area of land is 40,497.19 sq. mtr.

Office premises at Kolkata and Delhi have been obtained on non-cancelable operating lease. The monthly rent is payable @ Rs 2,50,000 per month. There is an escalation clause of 15% after every three years. There are no restriction imposed on lease arrangements. There is no sub lease.

As at As at 31st March 2013 31st March 2012

6(a) Contingent Liabilities not provided for

Letter of credit 7,34,98,918 8,9744,039

Disputed Income tax 31,37982 31,37,982

Disputed Excise duty 1,39,95,563 1,39,95,563

Disputed Sales Tax 4714,326 4714,326

Land Revenue 2,00,100 2,00,100

6(b) Estimated amount of Contracts remaining to be executed on Capital Account and not provided for (Net of advances) is Rs 76923000 (Rs 96107.000).

7 Micro, Small & Medium Enterprises

There were no dues outstanding to the suppliers as on 31.03.2013 registered under the Micro, Small and Medium Enterprises (Development) Act, 2006, to the extent such parties have been identified from the available documents/ information. No interest in terms of such Act has either been paid or provided during the year.

8 Previous year''s figures

Previous year''s figures, which are given in brackets, have been regrouped or reclassified, wherever necessary.


Mar 31, 2012

Rights attached to Equity Shares

The company has only one class of Equity Shares having a par value of Rs 10/- per share. Each holder of Equity Shares is entitled to one vote per share. The shareholders are entitled for dividend declared by the company which is proposed by the Board of Directors and approved by the shareholders in the Annual General Meeting.

During the year ended 31st March 2012, the amount of dividend proposed per share to equity shareholders is Rs 2 (31st March 2011: Rs 1.50).

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after the distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders."

a. Term loans from Banks for Sitarganj Unit comprises of 2 Term Loans. The first term loan carries interest @ 4.90% p.a. above base rate while the second carries interest @ 3.75% p.a. above base rate. The first term loan is repayable in 28 quarterly installments from March 2008 till December 2014. The second term loan is repayable in 21 quarterly installments from March 2013 till March 2018. Both the term loans are secured by first charge over all the plant and machinery and fixed assets (present and future) of the company and the second charge on the entire current assets of the company.

b. Loan from directors is payable on or after December 2014. It carries interest @ 9% p.a. Working capital borrowing from banks is secured by hypothecation of entire current assets of the Company, present and future including stock in transit and at godowns and further secured by extension of charge on all fixed assets of the Company

The Rate of Interest payable on Working Capital Borrowing is 4.40% p.a. above the base rate at monthly rests.

The Company has treated loss arising on account of foreign exchange fluctuations and re-instatement of forex assets & liabilities after 1st July 2011 as exceptional item, since the same has resulted from exceptionally volatile global market developments.

Note 1 Nature of Operations

La Opala RG Limited is a leading manufacturer and marketer of lifestyle product in tableware segment. The company has spread the wings beyond domestic arena and ventured into leading market of the world.

Notes:

1. Expected rate of return on plan assets is based on the actuarial expectation of the average long-term rate of return expected on investment of the fund during the estimated term of the obligation.

2. The estimates of future salary increase takes into account the inflation, seniority, promotion and other relevant factors on long term basis.

3. The present value of gratuity obligation of Rs 10.10 lakhs for employees of Sitargunj and Global unit has not been funded.

4. The company expects to contribute Rs 20.71 lacs during the year 2011-12.

5. Amount for the current year and previous four years are as follows:

2 Segment Information

The Company mainly deals in one product - glass and glassware. As such, it does not have reportable business segment. For the purpose of geographical segments, the consolidated sales are divided into India and other countries. The following table shows the distribution of the Company's consolidated sales by geographical market, regardless of where the goods were produced:

3 Lease

In case of asset taken on lease:

Operating Lease:

Land at Sitarganj was taken on lease during 2006-07 for 90 years. The annual lease rent is required to be paid @ Rs 5/- per sq. mtr. The total area of land is 40,49719 sq. mtr.

Office premises at Kolkata and Delhi have been obtained on non cancelable operating lease. The monthly rent is payable @ Rs 1,84,500 per month. There is an escalation clause of 15% after every three years. There are no restriction imposed on lease arrangements. There is no sub lease.

4 Estimated amount of Contracts remaining to be executed on Capital Account and not provided for (Net of advances) is Rs 961.07 Lacs.

5 Micro, Small & Medium Enterprises

There were no dues outstanding to the suppliers as on 31.03.2012 registered under the Micro, Small and Medium Enterprises (Development) Act, 2006, to the extent such parties have been identified from the available documents / information.

6 Previous year's figures

During the year ended 31st March 2012, Revised Schedule VI notified under Companies Act, 1956 became applicable to the Company, for preparation and presentation of its financial statements. The adoption of Revised Schedule VI does not impact recognition and measurement principal followed for preparation of financial statements. However, it has significant impact on the presentation and disclosures made in the financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.


Mar 31, 2010

1.0 Nature of Operations

La Opala RG Limited is a leading manufacturer and marketer of lifestyle products in the tableware segment. The Company has spread its wings beyond the domestic arena and ventured into leading markets of the world.

2.0 Related Party Disclosure

Associates Genesis Exports Ltd

Ishita Housing (P) Ltd SKJ Estate (P) Ltd Anuradha Designers (P) Ltd

Key Management Personnel Sushil Jhunjhunwala - Managing Director

Ajitjhunjhunwala - Dy. Managing Director

Relatives of Key Management Personnel Nidhi Jhunjhunwala

Shruti Kishorepuria



3 (a)Provision for taxation for the year includes Rs. 68,65,150 being Minimum Alternate Tax (MAT) in terms of Section 115JB of the

Income Tax Act, 1961, which will be available as tax credit for set off in the future years as per section 115JAA of the said act.

The Company is also entitled for tax credit of Rs. 37,77,235 for set off in future years on account of tax provisions under MAT in earlier years.

During the year the Company has recognised entire MAT credit entitlement in Profit & Loss Account and the same has been treated as advance payment of taxation.

4 (a)Contingent Liabilities not provided for 2009-10 2008-09

(Rs.) (Rs.)

Letter of credit 11,73,802 -

Disputed Rent 5,52,000 5,04,000

Disputed Customs Duty - 1,50,000

Disputed Income Tax 70,66,255 67,41,848

Disputed Excise duty 58,59,993

Disputed Sales Tax 1,95,09,713 47,14,326



5 (b) Estimated amount of Contracts remaining to be executed on Capital Account and not provided for (Net of advances) is Rs. 1,70,340.

6.0 Micro, Small & Medium Enterprises

There were no dues outstanding to the suppliers as on 31.03.2010 registered under the Micro, Small and Medium Enterprises (Development) Act, 2006, to the extent such parties have been identified from the available documents/information.

7.0 Remuneration to the Managing Director and Deputy Managing Director has been paid in accordance with Schedule XIII of the Companies Act, 1956. Non-executive Directors Commission of the above Rs. 5,59,803 restricted to maximum amount payable Rs. 1,50,000.

8.0 Share Issue Expenses are being amortised over a period of five years starting from 2007-08.

9.0 Previous year Comparative

Previous years figures have been regrouped where necessary to conform to current years classification.

 
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