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Notes to Accounts of Rajoo Engineers Ltd.

Mar 31, 2016

1. Corporate Information

Rajoo Engineers Ltd. (The Company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The Company''s shares are listed on Bombay stock exchange in India. The company is mainly engaged in the manufacturing and selling a reputed brand of Plastic Processing Machineries and Post Extrusion Equipments. The company caters to both domestic and international markets.

2. Basis of Preparations of Financial Statements

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in Indian (Indian GAAP). GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 (''Act'') read with Rule 7 of the Companies (Accounts) Rules, 2014 and guidelines issued by the Securities and Exchange Board of India (SEBI).

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or are vision to an existing accounting standard requires a change in the accounting policy hitherto in use.

The financial statements have been prepared on an accrual basis and under the historical cost convention.

3. The Method of Accounting, Significant Accounting Policies and Compliance with various Applicable Accounting Standards are displayed below:-

4. Disclosure of Accounting Policies:

(i) Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring adjustment to carrying amounts of assets or liabilities in future periods. Difference between the actual results and estimates are recognized in the period in which the results are known /materialized.

4. Inventories:

Items of inventories are measured at lower of cost or net realizable value after providing for obsolescence, if any. Cost of inventories comprises of cost of purchase, cost of conversion and other cost including manufacturing overheads incurred in bringing them to their respective present condition and location. Cost of Raw Material including components, Testing Materials, Scrap and consumable stores are determined on FIFO basis.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

5. Depreciation:

Depreciation on tangible assets and intangible assets is provided on the straight line method over the useful lives of assets prescribed under Part C of Schedule II of the Companies Act, 2013.

6. Revenue Recognition:

In appropriate circumstances, Revenue income is recognized when no significant uncertainty as to determination or realization exists. Interest income is recognized on a time proportion basis taking into account the amount outstanding and rate applicable.

7. Fixed Assets:

Tangible fixed assets are stated at cost net of recoverable taxes less accumulated depreciation.

Intangible assets are stated at cost of acquisition net of recoverable taxes less accumulated depreciation.

8. Foreign Currency Transactions:

(i) Transactions dominated in foreign currencies are recorded at the exchange rate prevailing on the date of transaction or that approximates the actual rate at the date of the transaction.

(ii) Monetary items denominated in foreign currencies at the yearend are restated at year end rates. In case of items which are covered by forward exchange contracts, the difference between the yearend rate and rate on the date of the contract is recognized as exchange difference and the premium paid on forward contracts is recognized over the life of the contracts.

(iii) In respect of branches, which are integral foreign operations, all transactions are translated at rates prevailing on the date of transaction or that approximates the actual rate at the date of transactions. Branch monetary assets and liabilities are restated at the yearend rates.

(iv) Any income or expenses on account of exchange difference either on settlement or on translation is recognized in the profit or loss account.

9. Retirement Benefit:

i) Provident fund:

Retirement benefit in the form of provident fund is a defined contribution scheme. The contributions to the provident fund are charged to the statement of profit and loss for the year when the contributions are due. The company has no obligation, other than the contribution payable to the provident fund.

ii) Gratuity:

The company has established the employees Group Gratuity-Cum-Life Assurance Scheme with Life Insurance Corporation of India through employees trust. The cost of providing benefit under the scheme are determined on the basis of actuarial valuation at each year end and contribution for the year is charged to the statement of profit and loss for the year.

iii) Leave Encashment:

The company measures the expected cost that it expects to pay as a result of unused entitlement that has accumulated at the reporting date and the earned leave amount for the current reporting period is charged to the statement of profit and loss for the year. The company presents the entire leave as current liability in the balance sheet, since it does not have an unconditional right to defer its settlement for 12 months after the reporting date.

10. Borrowing Cost:

Borrowing costs that are attributable to the acquisition or construction of assets are capitalized as part of cost of such assets. All other borrowing costs are charged to revenue.

11. Related Parties Disclosures:

As required by Accounting Standard (AS) - 18 "Related Party Disclosures" is made as under:

(i) List of related parties where control exits and related parties with whom transactions have taken place and relationship. Names of the related party and description of relationship with whom there were transactions during the year.

3.10 Lease:

During the year, Land and Building of Unit - V, Fabrication Division of the Company at Veraval (Shapar), Rajkot is Leased to M/s. Shruti Engineer for a monthly rent of Rs. 37500/-.

12. Provision for Current and Deferred Tax:

Provision for Current tax is based on the assessable income under the provisions of the Income-tax Act, 1961.

Deferred tax is recognized on timing difference between taxable income and accounting income that originate in one period and capable of reversal in one or more subsequent periods. Deferred tax resulting from "timing differences" is accounted for using tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax assets is recognized and carried forward only to the extent that there is a reasonable / virtual certainty that the asset will be realized in future.

13 Impairment of Assets:

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to statement of profit and loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

14. Provisions, Contingent Liabilities and Contingent Assets:

Provision is recognized in the accounts when there is a present obligation as a result of past event(s) and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

Contingent liabilities are not recognized but are disclosed as under.

Contingent assets are neither recognized nor disclosed in the Financial Statements.

15. Segment Reporting:

As the company''s business activity falls within a single business segment viz. Plastic Processing Machineries and post extrusion equipments, the disclosure requirements of Accounting standard (AS) 17 "Segment reporting" issued by the Institute of Chartered Accountants of India is not applicable.


Mar 31, 2015

1. Corporate Information

Rajoo Engineers Ltd. (The Company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The Company''s shares are listed on Bombay stock exchange in India. The company is mainly engaged in the manufacturing and selling a reputed brand of Plastic Processing Machineries and Post Extrusion Equipments. The company caters to both domestic and international markets.

2. Basis of Preparations of Financial Statements

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in Indian (Indian GAAP). GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 (''Act'') read with Rule 7 of the Companies (Accounts) Rules, 2014 and guidelines issued by the Securities and Exchange Board of India (SEBI).

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or are vision to an existing accounting standard requires a change in the accounting policy hitherto in use.

The financial statements have been prepared on an accrual basis and under the historical cost convention.

3. The Method of Accounting, Significant Accounting Policies and Compliance with various Applicable Accounting Standards are displayed below:-


Mar 31, 2013

1. Corporate Information

Rajoo Engineers Ltd. (The Company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The Company''s shares are listed on Bombay stock exchange in India. The company is mainly engaged in the manufacturing and selling a reputed brand of Plastic Processing Machineries and Post Extrusion Equipments. The company caters to both domestic and international markets.

2. Basis of Preparations of Financial Statements

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in Indian (Indian GAAP). The company has prepared these financial statements to comply in all material respect with the accounting standards notified under the companies (Accounting Standards) Rules,2006, (as amended) and the relevant provisions of the companies Act,1956. The financial statements have been prepared on an accrual basis and under the historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.


Mar 31, 2012

1. Corporate Information

Rajoo Engineers Ltd. (The Company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The Company's shares are listed on Bombay stock exchange in India. The company is mainly engaged in the manufacturing and selling a reputed brand of Plastic Processing Machineries and Post Extrusion Equipments. The company caters to both domestic and international markets.

2. Basis of Preparations of Financial Statements

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in Indian (Indian GAAP). The company has prepared these financial statements to comply in all material respect with the accounting standards notified under the companies (Accounting Standards) Rules,2006, (as amended) and the relevant provisions of the companies Act,1956. The financial statements have been prepared on an accrual basis and under the historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.


Mar 31, 2011

1. The previous year's figures have been regrouped/ reclassified, wherever necessary to conform to the current year presentation.

2. In the opinion of the Board of Directors, the current assets and loans & advances are approximately of the value stated, if realized in the ordinary course of business. The provision for all known liabilities are adequate and not in excess of the amount reasonably necessary.

3. In due compliance of the Companies (Particulars of Employees) Amendment Rules, 2011 vide notification No. 2/29/1998-CLV dated 31.03.2011 issued by Ministry of Corporate Affairs, Government of India, we hereby state that there are no employees who were employed through out the year at a remuneration aggregating to at least Rs.60,00,000/- per annum or who were employed for a part of the year at a remuneration at least Rs.5,00,000/- per month.

4. The company has followed applicable accounting standards as prescribed under section 211 (3C) of the Companies Act, 1956 in the preparation of annual accounts of the year and there is no material departure from the accounting standards statutorily prescribed under the Companies Act.

5. The company has made adequate provisions for gratuity, leave encashment and ESIC in the books of accounts as per accounting standards (AS) -15.

6. Amount of borrowing costs capitalized as per Accounting Standard (AS) -16 during the year was Rs.Nil (Previous year Rs.Nil).

7. The company has complied with Accounting Standard (AS)-19 relating to Accounting for Leases during the year.

8. As the company's business activity falls within a single business segments viz. Plastic Processing Machineries and post extrusion equipments and as Nashik Unit do not affect predominantly risk and return of the enterprise on account of substantially lower turnover of Nashik Unit in relation to total turnover of the enterprise, the disclosure requirements of Accounting standard (AS) 17 "Segment reporting" issued by the Institute of Chartered Accountants of India is not applicable.

9. The Board of Directors, Members, Creditors and BSE have approved/Consented for scheme of merger of Hitesh Engineers Pvt. Ltd., Shruti Engineers Pvt. Ltd. and Vishwakarma Fabricators Pvt. Ltd. (Transferor Companies) with Rajoo Engineers Ltd. (Transferee Company) and petitions filed before Hon'ble High Court of Gujarat are pending for approval.

10. The Company has acquired on lease Factory of Wonderpack Industries Private Limited at Nashik (Maharashtra) w.e.f. 21.09.2010 and commenced operation of manufacturing Plastic Processing Machineries.

11. The company has transferred all movable assets of Manavadar Unit to Rajkot Shapar (veraval) Unit as on 01.04.2010 anddiscontinued the manufacturing operations of Manavadar Unit.

b) Names of the related party and description of relationship with whom there were transactions during the year.


Mar 31, 2010

1. The previous years figures have been regrouped/reclassified, wherever necessary to conform to the current year presentation.

2. During the year, the company has changed the method of accounting for purchase and sales. Earlier, the company was accounting purchase including Central Excise Duty and Central Sales Tax and sales were accounted including Central Excise Duty, During the current financial year, purchases are accounted excluding Central Excise Duty and Central Sales Tax and Sales is accounted excluding Central Excise Duty and Central Sales Tax.

3. In the opinion of the Board of Directors, the current assets and loans & advances are approximately of the value stated, if realized in the ordinary course of business. The provision for all known liabilities are adequate and not in excess of the amount reasonably necessary.

4. The company has followed applicable accounting standards as prescribed under section 211 (3C) of the Companies Act, 1956 in the preparation of annual accounts of the year and there is no material departure from the accounting standards statutorily prescribed under the Companies Act.

5. The company has made adequate provisions for gratuity and leave encashment in the books of accounts as per accounting standards (AS)-15.

6. Amount of borrowing costs capitalized as per Accounting Standard (AS) -1 during the year was Rs. Nil (Previous year Rs. Nil),

7. There are no lease transactions during the year.

8. As the companys business activity falls within a single business segments viz. Plastic Processing Machineries and post extrusion equipments, the disclosure requirements of Accounting standard (AS) 17 "Segment reporting" issued by the Institute of Chartered Accountants of India is not applicable,

9. As required by Accounting Standard (AS)-18 "Related Party Disclosures" is made as under:

a) Name of the related party and description of relationship with whom there were no transactions during the year - REL International Pvt. Ltd. - Associate Concern Names of the related party and description of relationship with whom there were transactions during the year.

Sr. no. Name Designation Relationship

1 C. N. Doshi Chairman Key Management Personnel

2 R. N. Doshi Managing Director Key Management Personnel

3 J. R Aghera Whole Time Director Key Management Personnel

4 K. R Aghera Whole Time director Key Management Personnel

5 Sunil B Jain International Operations Key Management Personnel

6 Rajoo Cotex Limited Associate Concern

7 REL Finance Pvt. Ltd. Associate Concern



Note

(1) The disputed liabilities for A. Y. 2003-04 & 2004-05 is on accouni of DEPB income not considered for deduction u/s. 80 HHC Of I.T. Act, 1961.

B. Other Contingent Liabilities

As per Information and Explanation provided by the management, there is no Contingent liabilities

ii. Installed Capacity:

In view of considerable number of items, having diverse nature, it is not possible to determine the installed capacity.

Note: Installed capacity is as certified by the Management.

10. Quantitative information in respect of Opening Stock, Purchase, Sales, Closing Stock and Raw Material Consumed.

Note: As the raw material consists of large number of items having diverse nature of measurement, it is not possible to submit the quantitative information of raw material.

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