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Notes to Accounts of Radha Madhav Corporation Ltd.

Mar 31, 2015

Note: 1 Segment Reporting

The Company has identified business segment as its primary segment and geographic segments as its secondary segment. During the year company has started its marketing and Trading business, in view of AS17 segment reporting issued by ICAI, the company has identified Trading Activity as additional Primary Segment.

Company has identified two reportable segment viz sales of own manufactured products (sub-classified in to end user & through channel partners) and marketing and Trading. The accounting policies adopted for segment reporting are in line with the accounting policy of the company with following additional policies for segment reporting.

Geographical revenues are allocated based on the location of the customer. Geographical segments of the company are India and Others.

Note: 2 Going Concern

The company's net worth has been fully eroded due to continuous losses. However, the accounts have been prepared on the basis that the company is a going concern. Management is of the view that there is no uncertainty about continuous operation of the Company in foreseeable future. Following measures are taken by the company to ensure continuous operations:

1. Company has begun Online E-Commerce business, which is profitable, and is evident from the 2015 result.

2. Company has also made profit during the year ended 31.03.2015.

3. Management has induced long-term capital in the company on various occasions and shall thrive to do so in future.

4. Management is also planning gradually to modify its business plan by appointing franchise there by reducing working capital intensive dependence.

5. The Company would be able to continue its operation in the foreseeable future through various restructuring and deleveraging measures

The accounts do not include any adjustment relating to recoverability and classification of recorded asset amounts or the amounts and classification of liabilities.

Note: 3

a. The company is in the process of obtaining confirmation from parties, and reconciliation differences, if any, in payable and receivables will be provided in the books. On ramping up of packaging business, company is hopeful of recovering the book debts.

b. Previous year figures have been regrouped & rearranged wherever necessary.

Note : 4

Radha Madhav Corporation Limited (RMCL) has began trading and distribution of various products in various category like Clothing, Fashion Products, Wellness, Cosmetics, Electronics etc. through or otherwise www.rmcluniverse.com.

The company is also engaged in manufacture of variants of multilayered and functional films, which find major application in primary as well secondary packaging solutions in food, dairy and pharmaceutical segments. The company is capable of producing multilayer cast and blown barrier films of internationally accepted standards.

At present, RMCL has 5 independent production units, 4 of them are located in the union territory of Daman and the fifth one of them is in Rudrapur, Uttaranchal, enjoying tax concessions. The basic infrastructure of the company is accredited with international quality certification such as 9001:2008 (QMS) / 14001: 2004 (EMS) / 18001: 2007 (OHSAS) / 22001: 2005(FSMS) & BRC Accredited Company.


Mar 31, 2013

Note- 1

Right, Preferences and restrictions attached to shares

Equity shares

The company has one class of equity shares having a par value of Rs. 10 each. Each shareholder is eligible for one vote per share held.

The dividend as and when proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing An- nual General meeting, except in case of interim dividend.

In the event of Liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribu- tion of all preferential amounts, in proportion to their share- holding.

Note : 2

Radha Madhav Corporation Limited (RMCL) is engaged in manufacture of variants of mul- tilayered and functional films, which find major application in primary as well secondary packaging solutions in food, dairy and pharmaceutical segments. The company is capable of producing multilayer cast and blown barrier films of international accepted standards.

At present, RMCL has 5 independent production units, 4 of them are located in the union territory of Daman and the fifth one of them is in Rudrapur, Uttaranchal, enjoying tax con- cessions. The basic infrastructure of the company is accredited with international qual- ity certification such as 9001:2008 (QMS) / 14001: 2004 (EMS) / 18001: 2007 (OHSAS) / 22001: 2005(FSMS) & BRC Accredited Company.

Note : 3

Related Party Relationships

(a) Enterprises Owned by Directors or Major Share Holders

Sr. No. Name of the Company/Firm

1 Abhishek Packaging Industries

2 Maharastra Polycane Industries

3 Radha Madhav Research and Trade Pvt. Ltd.

4 Print Rite

5 Siddharth Plastic Industries

6 Plastic Corporation

7 Mamta Steel

8 Mehsana Steel Suppliers

9 Mahavir Steel Suppliers

10 Abias Export Pvt. Ltd.

11 Swati Packaging

12 Radha Krishna Industries

13 Radha Madhav Residency

14 Radha Madhav Holdings Pvt. Ltd.

15 Shree Dagruseth Infracon

(b) Key Management Personnel

* Mr. Mitesh Agrawal

* Mr. Abhishek Agrawal

(c) Persons having significant influence

* Mr. Anil Agrawal

Note: In respect of above parties, there is no provision for doubtful debts as on 31st March, 2013 and no amount has been written off or written back during the year in respect of debts due from/to them.

Note: 4 Going Concern

The company's net worth has been fully eroded due to continuous losses. However, the ac- counts have been prepared on the basis that the company is a going concern. Management is of the view that there are no uncertainties about continuous operation of the Company in foreseeable future on account following measures taken by the Company;

i) T he Management has also taken various steps to infuse long term capital in the company through various sources.

ii) The management is also planning to gradually modify its business plan by appoint ing franchisees and thereby reducing working capital intensiveness.

iii) and also with various restructuring measures the Company would be able to con- tinue its operation in the foreseeable future.

The accounts do not include any adjustment relating to recoverability and classification of re- corded asset amounts or the amounts and classification of liabilities.

Note: 5

Contingent Liability and Commitments

(Rs. In Millions)

Particulars Mar-2013 Jun-2012

Contingent Liability

a) Guarantees given by Banks 24.80 38.25

b) Disputed Liability of Central Excise Duty. Dispute pending with 15.36 15.36 Customs Excise & Service Tax Appellate Tribunal, Ahmadabad

c) Disputed Liability of Income Tax. Dispute pending with dis- 0.91 0.91 puted is pending before commissioner of Income Tax (Appeals).

d) Duty liability with respect to capital goods imported under 180.24 180.25 EPCG Scheme.(against balance export obligation) (This figure does not includes interest @ 24% per annum, which is payable in case of defaults, from the date of import)

e) Suppliers Claim against the company not acknowledged as debt 9.81 9.81 Commitments

a) Estimated amount of contract remaining to be executed on - 0.14 capital Account and not provided for (net of Advances)

Note: 6

Impairment of Assets "Accounting Standard 28"

The company has carried out an exercise to ascertain the impairment, if any, in the carrying values of its assets. The exercise has not reveals any impairment in any fixed assets of the company.

Note: 7

a. Previous year figures have been regrouped & rearranged wherever necessary.

b. Previous year figures are not comparable with current year figure, in view of the fact that the current year is of 9 months period as against previous year of 15 months period.

Note: 8

Segment Reporting

The Company has identified business (sales channel) as its primary segment and geographic segments as its secondary segment. Company has identified two reportable segment viz sales to end user, sales to channel partners and has reported the figures as per AS 17 segment report- ing issued by the ICAI. Segments have been identified and reported taking into account nature of customer and distribution channel, the differing risks and returns and the internal business reporting systems. The accounting policies adopted for segment reporting are in line with the accounting policy of the company with following additional policies for segment reporting.

a) Revenue and expenses have been identified to a segment on the basis of relationship to operative activities of the segment. Revenue and expenses which relate to enter- prise as a whole and are not allocable to a segment on reasonable basis have been disclosed as "Unallcable".

b) Assets and liabilities that are directly attributable or allocable to segments are dis- closed under each reportable segment. All other assets and liabilities are disclosed as unallocable.

c) Geographical revenues are allocated based on the location of the customer. Geo- graphical segments of the company are India and Others.


Jun 30, 2012

Note : 1

Radha Madhav Corporation Limited (RMCL) is engaged in manufacture of variants of multilayered and functional films, which find major Application in primary as well secondary packaging solutions in food, dairy and pharmaceutical segments. The company is capable of producing multilayer cast and blown barrier films of inter National accepted standards.

At present, RMCL has 5 independent production units, 4 of them are located in the union territory of Daman and the fifith one of them is in Rudrapur, Utaranchal, enjoying tax concessions. The basic infrastructure of the company is accredited with international quality certfication such as 9001:2008 (QMS) / 14001: 2004 (EMS) / 18001: 2007 (OHSAS) / 22001: 2005(FSMS) & BRC Accredited Company.

Note : 2

Related Party Relationships

(a) Enterprises Owned by Directors or Major Share Holders

Sr. No. Name of the Company/Firm

1 Abhishek Packaging Industries

2 Maharastra Polycane Industries

3 Radha Madhav Research and Trade Ltd.

4 Print Rite

5 Siddharth Plastic Industries

6 Plastic Corporation

7 Mamta Steel

8 Mehsana Steel Suppliers

9 Mahavir Steel Suppliers

10 Abias Export Pvt. Ltd.

11 Swat Packaging

12 Radha Krishna Industries

13 Radha Madhav Residency

14 Radha Madhav Holdings Pvt. Ltd.

15 Shree Dagruseth Infracon

(b) Key Management Personnel

- Mr. Mitesh Agarwal

- Mr. Abhishek Agarwal

(c) Persons having significant influence

- Mr. Anil Agarwal

Note: 3

Going Concern

The company's net worth has been fully eroded due to continuous losses. However, the ac- counts have been prepared on the basis that the company is a going concern. Management is of the view that there are no uncertainties about continuous operation of the Company in foreseeable future on account following measures taken by the Company;

i) The Management has also taken various steps to infuse long term capital in the company through various sources.

ii) The management is also planning to gradually modify its business plan by appoint- ing franchisees and thereby reducing working capital intensiveness.

iii) and also with various restructuring measures the Company would be able to continue its operation in the foreseeable future.

The accounts do not include any adjustment relating to recoverability and classification of re- corded asset amounts or the amounts and classification of liabilities.

Note: 4

Contingent Liability and Commitments

(Rs. In Millions) Particulars Jun-2012 Mar-2011

Contingent Liability

a) Guarantees given by Banks 38.25 48.27

b) Disputed Liability of Central Excise Duty. Dispute pending 15.36 15.36 with Customs Excise & Service Tax Appellate Tribunal, Ahmadabad

c) Disputed Liability of Income Tax. Dispute pending with dis- 0.91 -- puted is pending before commissioner of Income Tax (Appeals).

d) Duty liability with respect to capital goods imported under 180.25 182.32 EPCG Scheme.(against balance export obligation)

e) Claim against the company not acknowledged as debt 9.81 9.81 Commitments

a) Estimated amount of contract remaining to be executed on 0.14 0.14 capital Account and not provided for (net of Advances)

Note: 5

Impairment of Assets "Accounting Standard 28"

The company has carried out an exercise to ascertain the impairment, if any, in the carrying values of its assets. The exercise has not reveals any impairment in any fixed assets of the company.

Note: 6

Previous year figures have been regrouped & rearranged wherever necessary.

Note: 7

Segment Reporting

The Company has identified business (sales channel) as its primary segment and geographic segments as its secondary segment. During the period the Company has identified two report- able segment viz sales to end user, sales to channel partners and has reported the figures as per AS 17 segment Reporting issued by the ICAI for the current period only and has not given any comparative figure for preceding period as it is impracticable. This is as per the provision of AS.17 segment Reporting. Segments have been identified and reported taking into account na- ture of customer and distribution channel, the differing risks and returns and the internal busi- ness Reporting systems. The accounting policies adopted for segment Reporting are in line with the accounting policy of the company with following Additional policies for segment Reporting.

a) Revenue and expenses have been identified to a segment on the basis of relation- ship to operative activites of the segment. Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as "Unallcable".

b) Assets and liabilities that are directly atributable or allocable to segments are dis- closed under each reportable segment. All other assets and liabilities are disclosed as unallocable.

c) Geographical revenues are allocated based on the Location of the customer. Geo- graphical segments of the company are India and Others.


Mar 31, 2010

1. The Company has not received any intimation form "suppliers" regarding their status under Micro, Small and Medium Enterprise Development Act, 2006 and hence disclosure requirements in this regard as per Schedule VI of the Companies Act, 1956 could not be provided.

2. Contingent Liability not provided for

Rs. (in 000) Rs. (in 000)

Particulars 31-03-2010 31-03-2009

a) Guarantees given by Banks 31786 33959

b) Estimated amount of contract remaining to be executed on capital 2207 1878 Account and not provided for (net of Advances)

c) Disputed Liability of Central Excise Duty. Dispute pending with 15359 16248 Customs Excise & Service Tax Appellate Tribunal, Ahmadabad

d) Duty liability with respect to capital goods imported under 118917 125156 EPCG Scheme.(against balance export obligation)

3. Impairment of Assets "Accounting Standard 28"

The company has carried out an exercise to ascertain the impairment, if any, in the carrying values of its assets. The exercise has not reveals any impairment in any fixed assets of the company.

4. The company has a single segment namely "Flexible Packaging" therefore the companys business does not fall under different business segments as defined by AS-17 "Segmental Reporting" issued by ICAI.

5. Previous years figures have been regrouped & rearranged wherever necessary.

 
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