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Notes to Accounts of Rajkumar Forge Ltd.

Mar 31, 2015

(i) The Cash Flow Statement reflects the combined cash flows pertaining to continuing and discounting operations.

(ii) These earmarked account balances with banks can be utilised only for the specific identified purposes.

31.03.20151 31.03.2014

A) Banks:

1) Counter Guarantee issued by Bank 15,00,000 15,00,000

2) Letter of Credit issued by Bank on behalf of the Company 1,21,26,305 1,72,50,000

3) Foreign Letter of Credit (Euro) 57,800.60)( P.Y. NIL) 39,42,579 Nil 2. Capital Commitment :

Estimated amount of contracts remaining to be executed on capital account, not provided for (net of advances) Rs 22,61,501/- (Previous Year Rs 84,39,669/-).

3. During the year the, Company has sold land of 3645 SQ.Mtrs for Rs 80,00,000/-.This was as un-used portion of land which was not required for further expansion of the capacity. This has resulted into Long Team Capital Gain of Rs 78,48,382/-.The Company has made this provision for Income tax payable on this gain also paid Advance Income Tax accordingly. In the Financial statement, this amount is shown as Exceptional Income.

4. Based on the available information with the Company, no vendor is identified as MSME, as defined under "The Micro, Small and Medium Enterprises Development Act, 2006 and accordingly no disclosure has been considered necessary.

5. The year end foreign currency (FC) exposures that has been hedged by a derivative instrument or otherwise :Nil

6. The year end foreign currency (FC) exposures that are un hedged by a derivative instrument or otherwise are as follows:

7. Disclosure pursuant to Accounting Standard - 15 'Employee Benefits'

a. General Description

i) . Contribution to Provident Fund (Defined Contribution)

The Company's provident fund scheme (including pension fund scheme for eligible employees) is a defined contribution plan. The expenses charged to the Statement of Profit and Loss under the head Contribution to Provident Fund is Rs 9,14,230/- (PY Rs 8,17,447/-)

ii) . Gratuity

The Company has a gratuity plan. Every employee who has completed five years or more of service gets a gratuity on death or resignation or retirement at 15 days salary (last drawn salary) for each completed year of service. The Company during the year provided Rs 10,54,638/- (PY: Rs 5,89,189/-) towards gratuity.

b. The following tables set out disclosures prescribed by AS 15.

i) Changes in the present value of obligation representing reconciliation of opening and closing balances thereof: (Rs.)

The estimates of future salary increase, considered in actuarial valuation, taken on account of inflation, seniority, promotion & other relevant factors such as supply and demand in the employment market.

8. Related Party Disclosures:

Names of Related Parties and description of relationship

Key Management Personnel Others

Mr. R. S. Kothavale

Mrs. R. R. Kothavale

Mr. S. R. Kothavale

Mr. R. S Kothavale (HUF)

Ms. Sonal R Kothavale

Orient Precision Engineering Pvt Ltd

Note: Related party relationships are as identified by the Company and relied upon by the Auditors.

9. Segment information for the year ended March 31,2015 as required by AS-17 "Segment Reporting"

As the Company's business activity falls within a single primary business segment viz "Forgings" the disclosure requirements of Accounting Standard (AS-17) "Segment Reporting" issued by the Institute of Chartered Accountants of India is not applicable.

10. Previous year's figures are regrouped wherever necessary to make them comparable.

Additional Statements forming the part of Financial Statements


Mar 31, 2013

1. Borrowing costs that are attributable to the acquisition of tangible fixed assets are capitalized till the date of substantial completion of the activities necessary to prepare the relevant asset for its intended use.

2. Borrowing costs that are attributable to the acquisition or development of intangible assets are capitalized till the date they are put to use.

3. Contingent liabilities not provided for in respect of :

31.03.2013 31.03.2012 Rupees Rupees

A) Banks

1). Counter Guarantee issued by Bank 95,25,035 95,25,035

2). Letter of Credit issued by Bank on behalf of the Company 13,00,000 1,49,50,000

3) Foreign Letter of Credit (Euro) 29000)( P.Y. Euro 1,11,451) 21,23,380 76,71,172l

4) Foreign Bank Guarantee Issued( P.Y.US $ 3,80,000) NIL 1,95,01,600

B) Guarantees Given by the Company on behalf of other Companies NIL 2,35,00,000

Maximum Outstanding during the year Rs. Nil (previous Year 80,50,000/- C) Estimated value of Contracts remaining to be executed on Capital 77,46,081 1,81,96,750 Accounts and not provided for (net of advances)

4) A) In the opinion of the management current assets, loans and advances are approximately of the value stated, if realized, in the ordinary course of business.

B) Sales Tax Refund, Sales Tax Payable, Cenvat Credit and Service Tax Credit figures are taken as per the companies returns filed and are subject to Government Assessment

C) Repayment of Sales Tax Deferral Loan due on 31st March 2013 was Rs. NIL (Previous year Rs. 17.14 lacs).

D) Provision for Sales Ta x liability is made based on pending Sales Tax cases & pending liabilities which are taken as per Book balance . Excess/ Shortage is adjusted against Other Expenses.

5) During the year The Company has sold land of 8002.226 SQ Mtrs for Rs. 1,30,00,000/- This was an un-used portion of land which was not required for further expansion of the capacity .This has resulted into Long Term Capital Gain of Rs. 1,28,31,960/-The Company has made this provision for Income Ta x payable on this gain and also paid Advance Income Tax accordingly. In the Financial Statement this amount is shown as Exceptional Income.

6) The Information with regards to vendors under "The Micro, Small and Medium Enterprises Development Act, 2006 "is not available and hence no disclosures have been made in this regard.

7) Details of Forward Contracts Outstanding as on 31st March 2013.

The Company has entered in to forward contracts to cover the expected receivables against Foreign Exchange Rate Fluctuations. The Forward Contracts outstanding as on 31st March 2013 were as under.

8) Segment information for the year ended 31.03.2012 as required by AS-17 "Segment Reporting”

As the Company''s business activity falls within a single primary business segment viz "Forgings” the disclosure requirements of Accounting Standard (AS-17) "Segment Reporting” issued by the Institute of Chartered Accountants of India is not applicable.

9) Information required as per Schedule – VI to the Companies Act, 1956 has been given only to the extent applicable.

10) Previous year''s figures are regrouped wherever necessary to make them comparable.


Mar 31, 2010

31.03.2010 31.03.2009

1. Contingent liabilities not provided for in respect of: Rupees Rupees

A) Banks:

1) Counter Guarantee issued by Bank 92,69.119 1.88,892

2) Letter of Credit issued by Bank on behalf of the Company 2,63,94,904 1,63,55,580

B) Guarantees Given by the C ompany on behalf of other Companies 2,35,00,000 2,35,00,000

Maximum Outstanding during the year Rs.164,50,000 (previous Year 2,06,50,000)

C) Claims against the company not acknowledged as debt NIL NIL

D) Estimated value of Contracts remaining to be executed on Capital 1,86,09,000 196,02,652

Accounts and not provided for (net of advances)

E) Income Tax Case for AY. 2002-2003 pending before 54,07,000 54,07,000 ITAT (Pune bench)

2) In order to follow prudent disclosure and reporting norms the Company has made provision for entire disputed liability of pending demands towards excise duty and sales tax amounting to Rs. 2,96,23,444 during the F.Y. 2005-06.

3) Working Capital Facilities from Bank of Baroda Ltd are:

Secured by way of hypothecation of the Companys Stocks and Book Debts, both present and future and also secured by charge on Companys immovable properties, both present and future, Personal Guarantees by the Directors of the Company Mr. R. S. Kothavale, Mr. S. R. Kothavale and Mr. P. B. Kore.

4) A) In the opinion of the management current assets, loans and advances are approximately of the value stated, if realized, in the ordinary course of business.

B) Balances of Sundry Debtors and Sundry Creditors are taken as per ledger and are subject to confirmations / reconciliations.

C) Sales Tax Refund, Sales Tax Payable, Cenvat Credit and Service Tax Credit figures are taken as per the companies returns filed and are subject to Government Assessment.

D) Repayment of Sales Tax Deferral Loan due up to 31st March 2010 was Rs. 82.91 lacs (Previous year Rs. 35.82 lacs).

5) The Information with regards to vendors under "The Micro, Small and Medium Enterprises Development Act, 2006 " is pending and hence no disclosures have been made in this regard.

6) As per the Companys policy, Sale of Goods is being recognized at the point of dispatch to the Customer. The Sales for the current year includes Sales to a Customer amounting to Rs. 255.51 lacs, where dispatch has been made but actual title has not been transferred.

7) Segment information for the year ended 31.03.2010 as required by AS-17 "Segment Reporting"

As the Companys business activity falls within a single primary business segment viz "Forgings" the disclosure requirements of Accounting Standard (AS-17) "Segment Reporting" issued by the Institute of Chartered Accountants of India is not applicable.

8) Information required as per Schedule-VI to the Companies Act, 1956 has been given only to the extent applicable.

 
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