Mar 31, 2022
4 PROPERTY, PLANT AND EQUIPMENT (Contd.)
4.1 Property, Plant and Equipment are subject to charge to secure the Company''s borrowings as mentioned in Note 21.1.
4.2 The amount of borrowing cost capitalised during the year ended March 31, 2022 was Rs. 18 Lakhs {Including Rs. 7 Lakhs for Green Field Project at Chennai} (for the year March 31, 2021: Rs. 52 Lakhs) on account of capacity expansion of plant .
4.3 The rate used to determine the amount of borrowing costs eligble for capitalisation was 8.25%, which is the effective interest rate of the borrowing.
4.4 The amount of expenditures recognised in the carrying amount of Property, Plant and Equipment in the course of its construction is Rs.110 Lakhs {including Rs. 43 Lakhs for Green Field Project at Chennai} (Previous Year Rs. 70 Lakhs).
4.5 The amount of contractual commitments for acquisition of Property, Plant and Equipment is Rs. 9,920 Lakhs {Including Rs. 8,819 Lakhs for Green Field Project at Chennai} (Previous Year Rs.382 Lakhs).
4.6 The aggregate deprciation and amortisation has been included under Depreciation and Amortisation Expenses in the Statement of Profit and Loss.
4.7 Freehold land located at Survey no.124/5;126;149/1;150;151/2; Dhannad, Dist:Dhar, Madhya Pradesh, admeasuring 27,890 Sq. Mtr. (Cost Rs. 21 Lakhs) was revalued to Rs. 433 Lakhs on the date of transition i.e. 01.04.2016 and has been considered as the deemed cost in accordance with Para D5 of Ind AS 101- First-time Adoption.
(d) Pursuant to the approval of the shareholders accorded on 3rd March, 2022 vide postal ballot conducted by the Company, each equity share of face value of Rs. 10/- per share was sub-divided into five equity shares of face value of Rs. 2/- per share, with effect from 16th March, 2022.
(e) Mr. Sunil Chordia and his family along with family trusts and two Companies namely Rajratan Investments Private Limited (Formerly Rajratan Investment Limited) and Rajratan Resources Private Limited hold 65.00% (Previous Year 65.00%) of the paid up share capital and have control over the reporting entity.
(g) Agreegate number and class of shares alloted as fully paidup by way of bonus shares
The Company has issued 5,802,400 equity shares as fully paid bonus shares in the ratio of 4:3 (i.e. four bonus shares of Rs. 10/- each for three equity shares of Rs. 10/- each) to every sharehoder holding equity share on 14.09.2019.
(h) Terms / Rights to Shareholders
Equity Shares
The Company has only one class of equity shares having a par value of Rs. 2/- per share. Each holder of equity shares is entitled to one vote per share.
The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval by the shareholders of the company in the ensuing Annual General Meeting. The distribution will be in proportion to the number of equity shares held by the shareholders.
(iii) The Board of Directors have proposed Dividend of Rs. 2/- per share for the financial year 2021-22.
In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
The General Reserves have been created out of retained earnings of the Company and are available for any purpose.
The balance in the Retained Earings represents the accumalted profit after payment of dividens, transrfer to General Reseve and adjustments of acturial gains/(losses) on Defined Benfit Plans.
Revaluation Reserve is the amount ascertained due to revaluation of land carried out on the date of transition to Ind AS and has been recognised as a separate category of the equity and not as part of retained earnings.
Purpose of Each Reserve within Equity
Where a company issues shares at a premium, whether for cash or otherwise, a sum equal to the aggregate amount of the premium received on those shares is transferred to âSecurities Premium Accountâ and the utilisation thereof is in accordance with the provisions of Section 52 of the Companies Act, 2013.
21.1 SECURITY:
On the Property, Plant and Equipment at Pithampur the following charges have been created:
1st Charge for its term loans and working capital of Rs. 5,766 Lakhs.
2nd pari-passu charge over fixed assets of the Company for Rs. 5,700 Lakhs for its working capital facilities.
2nd pari-passu charge over entire fixed asset (immovable and movable) and 2nd pari-passu charge over current asset of the Company for term Loan of Rs. 1,674 Lakhs.
1st charge over fixed asset (movable and immovable) of the Company and 2nd pari-passu charge over current asset of the Company for Term Loan of Rs. 1,718 Lakhs for ongoing capex at Pithampur.
2nd pari-passu charge over entire fixed asset (immovable and movable) and 2nd pari-passu charge over current asset of the Company for ECLGS Term Loan of Rs. 1,050 Lakhs on reciprocal Basis.
2nd pari-passu charge over immovable property and fixed assets of the Company for Rs. 1,000 Lakhs for its working capital facilities on reciprocal basis.
2nd pari-passu charge over immovable property and fixed assets of the Company for Rs. 1,500 Lakhs for its SBLC facilities.
2nd pari-passu charge over immovable property and fixed assets of the Company for Rs. 5,000 Lakhs for its working capital facilities on reciprocal basis.
E) Facilities were also secured by way of personal guarantee of the Chairman and Managing Director upto 31st March 2021.
On the Property, Plant and Equipment at Chennai following charges have been created:
21 BORROWINGS (NON CURRENT) Contd.)
First pari-passu hypothecation charge to be shared with HDFC Bank on all existing and future Moveable Fixed Assets of the Company at Chennai Unit for Term Loan of Rs. 2,500 Lakhs.
First pari-passu Equitable/ Registered mortgage charge with HDFC Bank on immoveable properties being land and building situated at Plot no. D-1/2, SIPCOT industrial Park, Vallam Vadagal (phase II), (underdeveloped) Kanchipuram District, Tamil Nadu belonging to the Company for Term Loan of Rs. 2,500 Lakhs.
Second pari-passu hypothecation charge to be shared with HDFC Bank on all existing and future Moveable Fixed Assets of the Company at Chennai Unit for working capital limits of Rs. 1,500 Lakhs .
Second pari-passu Equitable/ Registered mortgage charge with HDFC Bank on immoveable properties being land and building situated at Plot no. D-1/2, SIPCOT industrial Park, Vallam Vadagal (phase II), (underdeveloped) Kanchipuram District, Tamil Nadu belonging to the Company for working Capital limits of Rs. 1,500 Lakhs.
First charge of HDFC Bank on pari pasu basis with Kotak Bank by way of equitable mortgage on industrial factory land and building proposed to be set up at lease hold Plot No. D-1/2, SIPCOT industrial Park, Vallam Vadagal (phase II), (underdeveloped) Kanchipuram District, Tamil Nadu for Term Loan of Rs. 7,500 Lakhs.
First charge of HDFC Bank on pari pasu basis with Kotak Bank by way of hypothecation on plant and machinery proposed to be installed at factory and land and building to be set up at lease hold Plot No. D-1/2, SIPCOT industrial Park, Vallam Vadagal (phase II), (underdeveloped) Kanchipuram District, Tamil Nadu for Term Loan of Rs. 7,500 Lakhs.
21.2 Part of Term Loan from State Bank of India was converted into a foreign currency loan of USD 15.74 Lakhs. The said foreign currency loan was coverted into Indian Currency on 18.06.2021. The said loan was hedged and premium paid for the year is charged to Statement of Profit & Loss.
23.1 Security
1st Charge for its term loans and working capital of Rs. 5,766 Lakhs for its working captial facilities.
1st pari-passu charge over entire current assets of the Company for Rs. 5,700 Lakhs for its working capital facilites.
2nd pari-passu charge over current asset of the Company for Term Loan of Rs. 1,674 Lakhs.
2nd pari-passu charge over current asset of the Company for Term Loan of Rs. 1,718 Lakhs for ongoing capex at Pithampur on reciprocal Basis.
2nd pari-passu charge over current asset of the Company for ECLGS term Loan of Rs. 1,050 Lakhs.
1st pari-passu charge over entire current asset (present & future) of the Company for Rs. 1,000 Lakhs for its working capital facilities
1st pari-passu charge over entire current asset (present & future) of the Company for Rs. 5,000 Lakhs for its working capital facilities on reciprocal basis.
On stocks, receivables and other current assets of Chennai the following charges have been created:
Second pari-passu hypothecation charge to be shared with HDFC Bank on all existing and future current assets of the Company at Chennai Unit for Term Loan of Rs. 2,500 Lakhs.
First pari-passu hypothecation charge to be shared with HDFC Bank on all existing and future current assets of the Company at Chennai Unit for Working Capital Limites of Rs. 1,500 Lakhs.
28 CONTINGENT LIABILITIES AND COMMITMENTS (To the extent not provided for)
28.1 Contingent Liabilities
(A) Claims against the Company/disputed liabilities not acknowledged as debts
(i) Madhya Pradesh Paschim Khestra Vidhyut Vitran Company Ltd. (MPPKVVCL) raised a supplementary bill on the Company for Rs. 226 Lakhs for non-adjustment of solar units in Time Of Day (TOD) manner. The Company has not accepted the demand and is contesting the same. The case is sub-judice before Division Bench of MP High Court, Indore. During the year, a sum of Rs. 66 Lakhs (Previous Year Rs. 160Lakhs) was deposited with MPPKVVCL. Out of the aforesaid total demand raised, the Company has agreements with the suppliers of the solar power to reimburse Rs. 190Lakhs. Accordingly. the sum of Rs. 190 Lakhs is classified as current asset. The balance amount of Rs. 36 Lakhs was charged to Statement of Profit & Loss in the previous year itself.
(Rs. in Lakhs) |
||||||
Particulars |
1 |
31.03.2022 |
31.03.2021 |
|||
(B) Guarantees excluding financial gurantees |
||||||
(i) Guarantees issued by Banks extended to third parties and other Guarantees |
Rs. 15 Lakhs |
Rs. 14 Lakhs |
||||
(ii) Standby Letter of Credit issued to M/s Rajratan Thai Wire Co. Ltd., Thailand (Wholly Owned Subsidiary) under Clean Credit facilities sanctioned to company by CitiBank NA. |
Rs. 1,500 Lakhs |
Rs. 1,500 Lakhs |
||||
(iii) Corporate Guarantee issued to United Overseas Bank (Thai) Public Company Limited, Thailand for credit facilities sanctioned to M/s Rajratan Thai Wire Co. Ltd., Thailand (Wholly Owned Subsidiary). |
THB 2560 Lakhs (Rs. 5,839 Lakhs) |
NIL |
||||
(iv) Corporate Guarantee issued to Cleanmax Energy (Thailand) Co. Ltd. for Power Purchase agreement executed by them with M/s Rajratan Thai Wire Co. Ltd., Thailand (Wholly Owned Subsidiary). |
THB 400 Lakhs (Rs.912 Lakhs) |
NIL |
||||
(C) Other Money for which the Company is contingently liable |
||||||
(i) Liability in respect of bills discounted with Banks (including third party bills discounting) |
NIL |
NIL |
||||
(ii) Appeal for which no provision is considered required as the company is hopeful of successful outcome in the appeals. There are uncertainties about the amount or timing of those outflows as it depend on completion of the appellate process.There is no assumption made and the amount is based on demand raised by the Departments. |
||||||
Particulars |
Financial year |
(Rs. in Lakhs) |
Forum Where dispute is pending |
|||
MP VAT Act,2006 |
2017-18 |
1 |
Additional CCT(A), Indore |
|||
Income Tax Act |
2018-19 |
16 |
National Faceless Appeal Centre |
|||
Service Tax Act |
April 2014 to Dec 2015 |
47 |
Additional /Joint Commissioner Indore |
|||
Central Excise and Customs |
Oct 2010 to Aug 2011 |
1 |
Adjucating Authority Indore |
|||
28.2 |
(Rs. in Lakhs) |
|||||
Particulars |
1 |
31.03.2022 |
31.03.2021 |
|||
Commitments |
||||||
(A) Estimated amount of contracts remaining to be executed on capital account and not provided for: |
9,920 |
382 |
||||
(B) Other Commitments |
NIL |
NIL |
31 ADDITIONAL REGULATORY INFORMATION:-
31.1 Title deeds of immovable properties not held in the name of Company. Details of all the immovable properties (other than properties where the Company is the leesee of and the lease agreements are duly executed in favour of the leesee) whose deeds are held in the name of the Company.
NIL
31.2 There are no investment in properties
31.3 The Company has not revalued its Property,Plant and Equipment during the year.
31.4 The Company has not revalued its intangible assets during the year.
31.5 The Company had granted salary advance of Rs. 10 Lakhs repayable within a period of 3 months to the Managing Director in accordance with scheme of loans to employees as approved by its Board of Directors. The loan was repaid within one month and there is no outstanding as on the Balance Sheet date.
31.6 No procedings have been initiated or pending against Company for holding any Benami Property under Prohibitions of Benami Transactions Act,1988(Earliers titled as Benami transactions (Prohibitions) Act,1988.
31.7 The quarterly returns/statement of current assets filed by Company with Banks for Borrowings are in agreement with the books of accounts.
31.8 The Company is not declared a wilfull defaulter by any Bank or Financial Institution or any other lender.
31.9 The Company has no transaction with Companies which are stuck off under section 248 of the Companies Act,2013 or under section 530 of Companies Act,1956.
28.3 During the year ended 31st March, 2022, on account of the final dividend for FY 20-21, the Company has incurred a net cash outflow of Rs. 812 Lakhs.
The Board of Directors have proposed dividen of Rs. 2/- per equity share subject to approval by the shareholders in the general meeting. If approved, this will result in payment of dividend Rs. 1,015 Lakhs.
29 During the year, the Company has not issued any securitites.
30 The amount borrowed from Banks and Financial Institution have been used for the specific purpose it was taken.
49 CAPITAL MANAGEMENT
The Company adheres to a robust Capital Management framework which is underpinned by the following guiding principles;
a) Maintain financial strength to attain AAA ratings domestically and investment grade ratings internationally.
b) Ensure financial flexibility and diversify sources of financing and their maturities to minimise liquidity risk while meeting investment requirements.
c) Proactively manage group exposure in forex, interest and commodities to mitigate risk to earnings.
d) Leverage optimally in order to maximise shareholder returns while maintaining strength and flexibility of the Balance sheet.
This framework is adjusted based on underlying macro-economic factors affecting business environment, financial market conditions and interest rates environment.
50.5 Commodity Price Risk
Commodity price risk arises due to fluctuation in prices of raw material. The company has a risk management framework aimed at prudently managing the risk arising from the volatility in raw material prices and freight costs.
The company''s commodity risk is managed centrally through well-established trading operations and control processes. In accordance with the risk management policy, the Company carefully caliberates the timing and the quantity of purchase.
50.6 Credit Risk
Credit risk is the risk that a customer or counterparty to a financial instrument fails to perform or pay the amounts due causing financial loss to the company. Credit risk arises mainly from the outstanding receivables from customers.
The company has a prudent and conservative process for managing its credit risk arising in the course of its business activities. The credit ratings/market standing of the customers are evaluated on a regular basis.
50.7 Liquidity Risk
Liquidity risk arises from the Company''s inability to meet its cash flow commitments on time. Prudent liquidity risk management implies maintaining sufficient stock of cash and marketable securities . The Company maintains adequate cash and cash equivalents alongwith the need based credit limits to meet the liquidity needs.
53 The research and development expenditure for the year ended March 2022 is Rs. 90 Lakhs (Previous year Rs. 73 Lakhs), which is charged to Statement of Profit & Loss.
The erstwhile Wholly Owned Subsidiary M/s Cee Cee Engineering Industries Private Limited was merged vide order dated 16th January 2018 of the Hon''ble National Company Law Tribunal, Ahmedabad Bench with 1st April 2017 as the Appointed Date. As per the approved scheme all the assets and liabilities of the Wholly Owned Subsidiary appearing in the Balance Sheet as at 31st March 2017, drawn up as per IND AS, have been merged with the Holding Company as on 1st April 2017. The Goodwill on amalgamation is carried in the financial statements and is tested for impairment at each reporting date. No impairment has been recognised till date.
Madhya Pradesh Industrial Development Corporation Limited, a Government of Madhya Pradesh Undertaking, has approved a sum of Rs. 1,974 Lakhs (Rs. One Thousand Nine Hundred Seventy Four Lakhs Only) as Investment Promotion Assistance against eligible investment of Rs. 5,235 Lakhs (Rs. Five Thousand Two Hundred Thirty Five Lakhs Only). The total assistance is to be spread over a period of seven years, subject to compliance with the terms and conditions. During the year, a sum of Rs. 318 Lakhs (Rs. Three Hundred Eighteen Lakhs Only) has further being sanctioned on additional investment of Rs. 1,790 Lakhs (Rs. One Thousand Seven Hundred Ninety Lakhs Only) made within one year from the date of start of commercial production. Accordingly a sum of Rs. 699 Lakhs (Rs. Six Hundred Ninety Nine Lakhs Only) was sanctioned and received by the Company during the year. The same has been reduced from the carrying cost of the eligible assets (Plant & Machinery and Factory Building on prorata basis) and such reduced cost of the assets are depreciated over their useful life.
Madhya Pradesh Industrial Development Corporation Limited, a Government of Madhya Pradesh Undertaking, has sanctioned Capital Subsidy of 50% of Investment Rs. 275 Lakhs (Rs. Two Hundred Seventy Five Lakhs) (restricted to Rs. 100 Lakhs (Rs. One Hundred Lakhs Only) for setting up of Effluent Treatment Plant (ETP) by the Company. The Capital Subsidy of Rs. 100 Lakhs (Rs. One Hundred Lakhs Only) has been reduced from the carrying cost of the ETP and such reduced cost of the assets is depreciated over it''s useful life.
56 ESTIMATION OF UNCERTAINTIES RELATING TO THE GLOBAL HEALTH PANDEMIC COVID-19
(I) The Company has been regularly assessing the market conditions as most of its customers being primarily into manufacturing tyres for two wheelers, passenger cars and other transport vehicles and being vulnerable to a disruption in supply chain and demand erosion. The Company has considered such impact to the extent known and available. However, the impact assessment of COVID-19 is a continuing process given the uncertainties associated with its nature and duration.
(II) The leases that the Company entered with lessors towards properties used as industrial land are long-term in nature and no significant changes in the terms of those leases are expected due to the COVID-19. Other leases for office premises are for the short-term and not involving any material amounts.
The figures appearing in financial statements have been rounded off to the nearest Lakhs, as required by General Instructions for
preparation of Financial Statements in Divisiona II Schedule III to the Companies Act, 2013.
58 APPROVAL OF FINANCIAL STATEMENTS
The financial statements are approved for issue by the Board of Directors in their meeting held on 21st April , 2022.
The accompanying notes are an integral part of the standalone financial statements.
Mar 31, 2018
1. CORPORATE INFORMATION
(a) Rajratan Global Wire Limited (the Company) alongwith its wholly owned subsidiary, M/s Rajratan Thai Wire Company Limited, is engaged in the business of manufacturing and sale of Tyre Bead wire. M/s Cee Cee Engineering Industries Pvt Ltd, acquired as a subsidiary on 15/08/2016 and merged with effect from 01.04.2017, is engaged in manufacturing of material handling equipments, industrial machinery and spare parts there of made of steel, iron, stainless stel or any material or alloys. The Company was holding 68% equity in M/s Swaraj Technocrafts Pvt Ltd., which was divested in August 2017. This erstwhile subsidiary was engaged in manufacturing of Wire Drawing Machinery and Tools. In addition, the Company has a windmill located in India for generation of electricity, which is not considered as a separate reportable segment.
(b) BASIS OF PREPARATION AND PRESENTATION
The standalone financial statements have been prepared on a historical cost basis, except for the following assets and liabilities which have been measured at fair value:
- Certain financial assets and liabilities (including derivative instruments) and
- Defined benefit plans - plan assets
The financial statements of the Company have been prepared to comply with the Indian Accounting Standards (âInd ASâ), including the rules notified under the relevant provisions of the Companies Act, 2013.
Upto the year ended 31st March 2017, the Company has prepared its financial statements in accordance with the requirement of Indian Generally Accepted Accounting Principles (GAAP), which include Standards notified under the Companies (Accounting Standards) Rules, 2006 and considered as âPrevious GAAPâ.
These financial statements are the Companyâs first Ind AS standalone financial statements.
Companyâs financial statements are presented in Indian Rupees (INR), which is also its functional currency.
2.1 CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
The preparation of the financial statements in conformity with the Ind AS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities and disclosures as at date of the financial statements and the reported amounts of the revenues and expenses for the years presented. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates under different assumptions and conditions. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.
a) Depreciation / amortisation and useful lives of property plant and equipment / intangible assets
Property, plant and equipment / intangible assets are depreciated / amortised over their estimated useful lives, after taking into account estimated residual value. Management reviews the estimated useful lives and residual values of the assets annually in order to determine the amount of depreciation / amortisation to be recorded during any reporting period. The useful lives and residual values are based on the Companyâs historical experience with similar assets and take into account anticipated technological changes. The depreciation / amortisation for future periods is revised if there are significant changes from previous estimates.
b) Recoverability of trade receivable
Judgements are required in assessing the recoverability of overdue trade receivables and determining whether a provision against those receivables is required. Factors considered include the credit rating of the counterparty, the amount and timing of anticipated future payments and any possible actions that can be taken to mitigate the risk of non-payment.
c) Provisions
Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and quantification of the liability requires the application of judgment to existing facts and circumstances, which can be subject to change. The carrying amounts of provisions and liabilities are reviewed regularly and revised to take account of changing facts and circumstances.
d) Impairment of non-financial assets
The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, the Company estimates the assetâs recoverable amount. An assetâs recoverable amount is the higher of an assetâs or Cash Generating Units (CGUâs) fair value less costs of disposal and its value in use. It is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or a groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account, if no such transactions can be identified, an appropriate valuation model is used.
e) Impairment of financial assets
The impairment provisions for financial assets are based on assumptions about risk of default and expected cash loss rates. The Company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on Companyâs past history, existing market conditions as well as forward looking estimates at the end of each reporting period.
2.2 First Time adoption of Ind AS
The Company has adopted Ind AS with effect from 1st April 2017 with comparatives being restated. Accordingly the impact of transition has been provided in the Retained Earnings as at 1st April 2016. The figures for the previous period have been restated, regrouped and reclassified wherever required to comply with the requirement of Ind AS and Schedule III.
a) Exemptions from retrospective application
i) Business combination exemption
The Company has applied the exemption as provided in Ind AS 101 on non-application of Ind AS 103, âBusiness Combinationsâ to business combinations consummated prior to 1st April 2016 (the âTransition Dateâ), pursuant to which goodwill/capital reserve arising from a business combination has been stated at the carrying amount prior to the date of transition under Indian GAAP. The Company has also applied the exemption for past business combinations to acquisitions of investments in subsidiaries / associates / joint ventures consummated prior to the Transition Date
ii) Fair value as deemed cost exemption
The Company has elected to measure items of property, plant and equipment and intangible assets at its carrying value, except in the case of Freehold Land which has been revalued on the transition date.
iii) Cumulative translation differences
The Company has elected to apply Ind AS 21 - The Effects of Changes in Foreign Exchange Rate prospectively. Accordingly all cumulative gains and losses recognised are reset to zero by transferring it to retained earnings.
iv) Investments in Subsidiaries, Joint Ventures and Associates
The Company has elected to measure investment in subsidiaries, joint venture and associate at cost.
Reconciliation Notes explaining Reclassification Adjustments
1 Loans and Advances and Security Deposits in the nature of financial assets have been reclassified as Financial Assets- Loans. Under the previous GAAP, such loans and security deposits were classified as Other NonCurrent assets.
2 Other Current Assets, under the previous GAAP includes Loans to Subsidiaries and Interest accrued on Fixed Deposits which have been classified as financial assets- Loans and Other Financial assets respectively under the Ind AS.
3 Other Current Liabilities under the previous GAAP includes Current Maturities of Long Term Debts, Interest accrued and due on borrowings, Interest accrued but not due on borrowings and Unpaid Dividends which have been classified as Other Financial Liabilities under the Ind AS.
Reconciliation Notes explaining Ind AS Adjustments
1 The company has exercised the option of carrying the Freehold Land at its fair value on the date of transition.
This has resulted in increase in Property, Plant and Equipment and Revaluation Reserve by Rs. 41,229,022/
2 In accordance with Ind AS 109, the Company uses Expected Credit Loss (ECL) model for evaluating impairment of financial assets other than those measured at Fair Value through Profit and Loss (FVTPL). Accordingly, the Provision for Doubtful Debts for the year ended 31st March 2017 and on 1st April 2016 has been increased by Rs. 9,93,800/- and Rs. 8,17,075/- respectively.
3 The transaction costs paid for the term loan borrowed have been amortised over the period of the loans, as the loans are required to be carried at amortized cost as per Ind AS 109 âFinancial Instrumentsâ. Consequently, the Borrowings have reduced by Rs. 44,50,421/- and Rs. 26,56,847/- as at 1st April 2016 and 31st March 2017 respectively.
4 Under the Ind AS, the Deferred Tax is calculated on the basis of the Balance Sheet approach and not the Income approach. Consequently, the Deferred Tax Liabilities (Net) have been reduced by Rs. 29,91,462/- and Rs. 35,33,627/- as at 1st April 2016 and 31st March 2017 respectively.
5 The Proposed Dividend as on 31st March 2016 amounting to Rs. 62,85,287/- has not been recognized as a liability as on the date of transition and has been written back to the Retained Earnings as on that date.
6 In accordance with Ind AS 19 âEmployee Benefitsâ,Acturial gains/losses on remeasurement of Defined Benefit Plans have been classified under âOther Comprehensive Incomeâ. Accordingly, the Provision for Employee Benefits as at 31st March 2017 has been reduced by Rs. 2,61,839/-
Reconciliation Notes explaining Ind AS Adjustments
Merger of M/s. Cee Cee Engineering Industries (P) Ltd.
1 The Profit and Loss account of M/s. Cee Cee Engineering Industries (P) Ltd. For the period from 15.08.2016 to 31.03.2017 has been merged with M/s. Rajratan Global Wire Ltd. (see note no. 42) resulting in loss of Rs. 30,544/-.
Ind AS adjustments of M/s. Rajratan Global Wire Ltd.
2 In accordance with Ind AS 18 âRevenueâ, Revenue from Operations includes Excise Duty. Excise Duty has been presented separately as expenditure.
3 In accordance with Ind AS 19 âEmployee Benefitsâ,Acturial gains/losses on remeasurement of Defined Benefit Plans have been classified under âOther Comprehensive Incomeâ. Accordingly, the Employee Benefit Expenses have been reduced by Rs. 35,15,266/
4 The transaction costs paid for the term loan borrowed have been amortised over the period of the loans, as the loans are required to be carried at amortized cost as per Ind AS 109 âFinancial Instrumentsâ. Consequently, the Finance Costs for the year ended 31st March 2017 have been increased by Rs. 17,93,575/
5 In accordance with Ind AS 109, the Company uses Expected Credit Loss (ECL) model for evaluating impairment of financial assets other than those measured at Fair Value through Profit and Loss (FVTPL). Accordingly, Other Expenses include Rs. 1,76,725/- for the year ended 31st March 2017 on account of provision for bad and doubtful trade receivables.
6 Under the Ind AS, the Deferred Tax is calculated on the basis of the Balance Sheet approach and not the Income approach. Consequently, the Deferred Tax Expenses for the year ended 31st March 2017 are lower by Rs. 5,42,165/-
Inventories are valued at cost or net realisable value whichever is lower. The cost formulas used are Weighted Average Cost in case of Raw Material (Wire Rods) and First-in First Out (âFIFOâ) in case of Ancillary Raw Material and Stores & Spares. The cost of inventories comprises all cost of purchase including duties and taxes (other than those subsequently recoverable from the taxing authorities), conversion cost and other costs incurred in bringing the inventories to their present location and condition. Excise Duty was included in the value of finished goods inventory till 30th June 2017.
(d) Rajratan Investments Limited together with Rajratan Resources Private Limited, Mr. Sunil Chordia and his family holds 59.26% (Previous Year 58.25%) have control over the company as defined in IndAS-110 Consolidated Financial Statements. Accordingly Rajratan Investments Ltd is considered as the Holding company.
(f) Terms / Rights to Shareholders (i) Equity Shares
(A) Voting
(i) The company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held.
Dividends
(ii) The company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval by the shareholders of the company in the ensuing Anuual General Meeting. In the event of liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. The total dividend Paid for the year ended 31st March 2017 amounts to Rs. 6,527,700/- including Corporate Dividend Distribution Tax of Rs.1,328,886 /-(Previous Year Rs.6,285,287/-) including Coprorate Dividend Distribution Tax Rs.1,063,085/-)
Liquidation
(iii) In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
SECURITY:
A. Term loans are secured by way of an equitable mortgage of immovable properties with State Bank of India, Indore ranking pari passu with other working capital lenders and by a first charge by way of equitable mortgage of leased hold land situated at Plot no. 199, 200A & 200 B, Sector-1 Pithampur and hypothecation of all the companyâs movable machinery, present and future, subject to prior charges created in favour of Companyâs Bankers on the stock of raw materials, goods in process, finished and manufactured goods and Book Debts towards security for working capital facilities. Term loans are also secured by personal guarantee of the Managing Director.
Security
A. Loans repayable on demand from State Bank of India, Indore and HDFC Bank Ltd.,Indore are Working Capital Loans and are secured by hypothecation of entire current assets of the company ranking pari passu and by way of second charge on all the immovable properties of the company and plant and machinery, machinery spares, tools and accessories and other movables both present and future. Such advances are also secured by personal guarantees of the Managing Director.
B. Loans and advances from related parties are unsecured.
The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflations, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.
Since the scheme funds are invested with LIC of India Expected Rate of Return is based on rate of return declared by fund managers.
Sensitivity Analysis
Significant Actuarial Assumptions for the determination of the defined benefit obligation are discount trade, expected salary increase and employment turnover. The sensitivity analysis below, have been determined based on reasonably possible changes of the assumptions occurring at the end of the reporting period, while holding all other assumptions constant. The result of sensitivity analysis is given below:
Certification and Consultation fees primarily includes certification fees paid to auditors. Statues and regulation require auditors to certify export documentation, quarterly fillings, XBRL fillings, transfer pricing and bond issuances among others.
3. Corporate Social Responsibility (CSR)
(a) CSR amount required to be spent as per section 135 of the Companies Act, 2013 read with Schedule VII thereof by the Company during the year is Rs.2,417,140/- (Previous Year Rs.2,304,846/-)
(b) Expenditure related to Corporate Social Responsibility is Rs. 2,549,606/- (Previous Year Rs.1,253,000/-)
(c) Out of note (b) above Rs. 1,250,000/- (Previous Year Rs.550,000/-) is spent through Rajratan Foundation
(d) The balance unspent amount for previous year towards CSR as on balance sheet date is Rs.3,701,318/-
4. M/s Rajratan Global Wire Limited (the Holidng Company) acquired all the shares of M/s Cee Cee Engineers Private Limited on 15th August 2016 making it a Wholly Owned Subsidiary(WOS). The WOS has been merged with the Holding Company vide order dated 16th January 2018 of the Honâble National Company Law Tribunal, Ahmedabad Bench with 1st April 2017 as the Appointed Date. As per the approved Scheme all the assets and liabilities of the WOS appearing in the Balance Sheet as at 31st March 2017, drawn up as per Ind AS, have been merged with the Holding Company as on 1st April 2017. The Method of Accounting is Pooling of Interest Method, in acccordance with Ind AS 103 Business Combinations, Appendix C - Business Combination of Entities under Common Control. However the Revaluation Reseve appearing in the Balance Sheet of the WOS has been adjusted against the goodwill on amalgamation as the price paid for the shares in August 2016 was for the fair value of the land which is appearing in the balance sheet at revlaued amount with corresponding credit to the Revaluation Reserve. Further as per para 9(iii) of the said Appendix, the financial information of the previous year have been restated with effect from 15th August 2016, as if the Business Combination had occurred on that date. Accordingly the financial performance from 15th August 2016 to 31st March 2017 and the financial position as on 31st March 2017 have been included in the standalone financial statements of the Holding Company and not in the Consolidated Financial Statements of the Rajratan Group.
5. The leasehold land at plot no 199 Industrial Area No 1, Pithampur District Dhar was originally leased to M/s Cee Cee Engineering Industries Private Limited, which stands merged with M/s Rajratan Global Wire Limited with effect from 1st April 2017. Till the last year it was expected that the leased land will be available to the company for a period of 99 years from 2017 i.e. the lease will be available till 2116. Accordingly the amortisation period for land was considered till 31st March 2116. However, it is now evident that the lease will be executed for an initial period of 30years with a right to renew it for a further period of 30 years. Therefore the company has revised the estimated period of lease amortisation from the year 2116 to 2078. The lease hold premium amortised during the year is Rs.4,42,425/- as against Rs.2,72,376/- amortised in FY 2016-17, based on the earlier estimates. The leasedeed has not been executed till date. In case the actual terms of the lease are different from those expected now, the lease amortisation will be changed prospectively.
6. Disclosure required as per Ind AS 103 Business Combinations, Appendix C - Business Combination of Entities under Common Control on account of merger of M/s Cee Cee Engineers Private Limited (Wholly Owned Subsidiary) with M/s Rjaratan Global Wire Limited (Holding Company):-
a) M/s Rajratan Global Wire Limited (the Holidng Company) is engaged in the business of manufacturing and sale of Tyre Bead Wire. M/s Cee Cee Engineering Industries Pvt. Ltd.( a wholly owned subsidiary), engaged in manufacturing of material handling equipment, industrial machinery and spare parts thereof made of steel, iron stainless steel or any other metals or alloys, has been merged with the Holding Company vide order dated 16th January 2018 of the Honâble National Company Law Tribunal, Ahmedabad Bench with 1st April 2017 as the Appointed Date.
b) No equity shares of either companies have been exchanged to effect the business combination.
c) The holding company has obtained the control of the subsidiary on 15th August 2016.
d) The holding company has paid total consideration of Rs. 3,00,00,000/- against net identifiable assets acquired amounting to Rs. 2,88,97,604/-, the difference of Rs. 11,02,396/- being recognized as Goodwill on Consolidation in the books of the holding company as on the date of acquisation.
7. CAPITAL MANAGEMENT
The Company adheres to a robust Capital Management framework which is underpinned by the following guiding principles;
a) Maintain financial strength to attain AAA ratings domestically and investment grade ratings internationally.
b) Ensure financial flexibility and diversify sources of financing and their maturities to minimize liquidity risk while meeting investment requirements.
c) Proactively manage group exposure in forex, interest and commodities to mitigate risk to earnings.
d) Leverage optimally in order to maximize shareholder returns while maintaining strength and flexibility of the Balance sheet.
This framework is adjusted based on underlying macro-economic factors affecting business environment, financial market conditions and interest rates environment.
The gearing ratio at end of the reporting period was as follows.
8. FINANCIAL INSTRUMENTS
All financial instruments are initially recognized and subsequently re-measured at fair value as described below:
(a) The fair value of investment in Equity Shares of Co-Operative Bank is measured at market repurchase price which is the best available fair value.
(b) The fair value of Forward Foreign Exchange contracts and is determind using forward exchange rates at the balance sheet date.
(c) All foreign currency denominated assets and liabilities are translated using exchange rate at reporting date.
Commodity Price Risk
Commodity price risk arises due to fluctuation in prices of raw material. The company has a risk management framework aimed at prudently managing the risk arising from the volatility in raw material prices and freight costs.
The companyâs commodity risk is managed centrally through well-established trading operations and control processes. In accordance with the risk management policy, the Company carefully caliberates the timing and the quantity of purchase
Credit Risk
Credit risk is the risk that a customer or counterparty to a financial instrument fails to perform or pay the amounts due causing financial loss to the company. Credit risk arises mainly from the outstanding receivables from customers.
The company has a prudent and conservative process for managing its credit risk arising in the course of its business activities. The credit ratings/market standing of the customers are evaluated on a regular basis.
Liquidity Risk
Liquidity risk arises from the Companyâs inability to meet its cash flow commitments on time. Prudent liquidity risk management implies maintaining sufficient stock of cash and marketable securities . The Company maintains adequate cash and cash equivalents alongwith the need based credit limits to meet the liquidity needs.
Hedge Accounting
The Company avails Foreign Currency Demand Loans from bank time to time to reduce the interest cost. The Company takes forward cover to hedge against the foreign currency risks. The amount of foreign currency risks and forward cover are as under:
Operating Leases
a) the total of future minimum lease payments under non-cancellable operating leases for each of the following periods:
(i) not later than one year; 5,76,000
(ii) later than one year and not later than five years; NIL
(iii) later than five years. NIL
b) the total of future minimum sublease payments expected to be received under non-cancellable subleases at the end of the reporting period. NIL
c) lease and sublease payments recognised as an expense in the period, with separate amounts for minimum lease payments, contingent rents, and sublease payments. 5,76,000
d) The Company pays rent for office premises at Indore and Mumbai. The lease period is for 11 months with option to renew. The payments for office premises at Indore are to related parties. None of the lease agreements have any restrictions concerning dividend, additional debt and further leases.
9. As per Ind AS 108-âOperating Segmentâ, segment information has been provided under the Notes to Consolidated Financial Statement. Please refer note no. 48 for revenue from sale of products.
#Out of the unsecured inter corporate loan of Rs. 19.00 Crore given during the year to various parties. The outstanding balance as on 31st March 2018 is Rs. 1.98 Crore.
10. EVENTS AFTER THE REPORTING PERIOD
The Board of Directors have recommended dividend of Rs.1.5 Per fully paid up equity share of Rs.10/- each, aggregating Rs. 7,869,488/- Including Rs. 1,341,788/- dividend distribution tax for the financial year 2017-18, which is based on relevant share capital as on 31st March 2018. The actual dividend amount will be dependent on the relevant share capital outstanding as on the record date/book closure.
11 APPROVAL OF FINANCIAL STATEMENTS
The financial statements are approved for issue by the Board of Directors in their meeting held on 10th May 2018.
Mar 31, 2017
1. The company has only one class of shares having a par value of Rs. 10/- per share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval by the shareholders of the company in the ensuing Annual General Meeting. In the event of liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. During the year ended 31st March, 2017, the amount of per share dividend proposed as distributions to equity share holders is Rs. 1.5 per Share (Previous Year Rs. 1.2 per Share). The total dividend proposed for the year ended March 31, 2017 amounts to Rs. 6,527,700/- including Corporate Dividend Distribution Tax of Rs.1,328,886 /-(Previous Year Rs. 6,285,287/-) including Corporate Dividend Distribution Tax Rs. 1,063,085/-) [Refer note 34(b) regarding change in Accounting Policies].
2. SECURITY:
3. Term loans outstanding Rs. 129,000,000/- (Rs. 82,000,000/- classified as Non-Current and Rs. 47,000,000/- classified as Current Liability) (Previous year Rs. 138,000,000/-) are secured by way of an equitable mortgage of immovable properties with State Bank of India, Indore ranking pari passu amongst the lenders and by a first charge by way of hypothecation of all the company''s movable machinery, present and future, subject to prior charges created in favour of Company''s Bankers on the stock of raw materials, goods in process, finished and manufactured goods and Book Debts towards security for working capital facilities. Term loans are also secured by personal guarantee of the Managing Director.
4. M/s Cee Cee Engineering Industries Pvt. Ltd. (Subsidiary Company) has also provided collateral security by way of first charge on the entire fixed assets of (by way of equitable mortgage of leased land (lease agreement dated 17.10.1997 with MP Audoyogik Vikas Nigam) & building & hypothecation of other fixed assets) (both present & future) situated at the company''s premises at Plot No. 199, Sector-1, Pithampur Industrial area, District-Dhar (MP) and /or any other places.
5. Security: A. Loans repayable on demand from State Bank of India, Indore and IDBI Bank Ltd., Indore are Working Capital Loans and are secured by hypothecation of companyâs stock and book debts, present & future and by a second charge on all the immovable properties of the company and plant and machinery, machinery spares, tools and accessories and other movables both present and future. Such advances are also secured by personal guarantees of the Managing Director.
6. M/s Cee Cee Engineering Industries Pvt. Ltd. (Subsidiary Company) has also provided collateral security by way of first charge on the entire fixed assets of (by way of equitable mortgage of leased land (lease agreement dated 17.10.1997 with MP Audoyogik Vikas Nigam) & building & hypothecation of other fixed assets) (both present & future) situated at the company''s premises at Plot No. 199, Sector-1, Pithampur Industrial area, District-Dhar (MP) and/or any other places. For Credit facilities sanctioned by State Bank of India.
7. Details of expenses on Corporate Social Responsibility
The Company has incurred a sum of Rs. 1,253,472/- on expenses related to Corporate Social Responsibility. However the Company has not spent the total amount of Rs.. 2,304,846 /- being 2% of average Profit of last three year. Therefore there is a shortfall of Rs. 1,051,374/- for the year to be spent on CSR activities. The total shortfall as on Balance Sheet date is Rs. 3,833,784/-. The Management is in the process of identifying projects that can be supported by the Company.
8. Change in Accounting Policies
The Ministry of Corporate Affairs, Government of India has vide Notification No. G.S.R. 364 (E) dated 30.03.2016 amended Accounting Standard (AS-4)-âContingencies and Events Occurring After the Balance sheet Dateâ and has substituted Accounting Standard (AS-10)- Equipmentâ in place of the existing Accounting Standard (AS-10)-âFixed Assetsâ, together with consequential amendments in other Accounting Standards. These amended/substituted Accounting Standards have become mandatory for accounting periods commencing from 01.04.2016.
In view of the Revised Accounting Standards AS 10 - âProperty, Plant & Equipmentâ and AS 4- Contingencies and Events Occurring After the Balance Sheet Dateâ, the Company has made following changes to its Accounting Policies;
9. AS 10- âProperty, Plant & Equipmentâ
On the date of Accounting Standard AS-10 (Revised) becoming mandatory, the Spare Parts, which hitherto were being treated as inventory, have been capitalized in accordance with the requirement of AS-10 at their respective carrying amounts. The Spare Parts amounting to Rs. 1,366,262/- so capitalized have been depreciated over their remaining useful life prospectively. The depreciation charged on such Spare Parts is Rs. 22,909/- for the year. Due to the said change in the Accounting Policy, the Fixed Assets are overstated and the inventories are understated to that extent.
10. AS 4- Contingencies and Events Occurring After the Balance Sheet Date
No provision has been made for Dividend proposed for the year ended on 31st March, 2017 amounting to Rs. 6,527,700/including Corporate Dividend Tax of Rs. 1,328,886/- (Previous Year Rs. 6,285,287/- including Corporate Dividend Tax of Rs. 1,063,085/-). Due to the said change in the Accounting Policy, the Reserves & Surplus is overstated and the Short Term Provisions are understated to that extent.
11. In the opinion of the Board of Directors of the Company, the Current Assets, Loans and Advances have a value realizable in the ordinary course of business at least equal to the amount at which they are stated and provisions for all known liabilities are adequate and not in excess of the amount reasonably necessary.
12. In accordance with the Accounting Standard (AS) 17 âSegment Reportingâ issued by The Institute of Chartered Accountants of India (ICAI) and specified u/s 133 of the Act read with Rule 7 of the Companies (Accounts) Rules, 2014 the Company has only one reportable segment âBead Wireâ for the current year.
13. In accordance with the Accounting Standard (AS)18 âRelated Party Disclosuresâ issued by The Institute of Chartered Accountants of India (ICAI) and specified u/s 133 of the Act read with Rule 7 of the Companies (Accounts) Rules, 2014 the names of the related parties and the relevant disclosure is as under:-
14. Name of the related party and description of relationship:
15. Key Management Personnel:
16. Mr. Sunil Chordia - Managing Director
17. Mrs. Sangita Chordia - Whole Time Director
18. Relatives of Key Managerial Personnel
19. Mrs. Shantadevi Chordia Mother of Mr. Sunil Chordia
20. Mr. Yashovardhan Chordia S/o Mr. Sunil and Mrs. Sangita Chordia
21. Companies/entities under the control of Key Management personnel
22. M/s. Rajratan Resources Pvt. Ltd.,
23. M/s. Rajratan Investment Ltd.,
24. Subsidiary
25. M/s. Rajratan Thai Wire Company Ltd., Thailand
26 M/s. Swaraj Technocraft Pvt. Ltd.
27. M/s. Cee Cee Engineering Pvt. Ltd. (wef. 16.08.2016)
*Out of the unsecured inter corporate loan of Rs. 14.05 Crores given during the year to various parties the outstanding balance as on 31.03.2017 is 0.89 Crore.
# The opening amount of corporate guarantee given in favour of wholly owned subsidiary as on 01.04.2016 was USD 10.70 Million, however the same was reduced to USD 8.30 Million during the year.
28. The Central Government has made amendments to Schedule III to the Companies Act vide circular No. F.No. 17/62/2015-CL-V(Vol.I)-G.S.R. 308 (E)-Dated 30-03-2017 regarding the disclosure to be made about the Specified Bank Notes (SBN) held and Transacted during the period from 8th November, 2016 to 30th December, 2016. The details of which are provided in the table below:-
29. Previous Yearâs figures have been regrouped and recast wherever considered necessary to make them comparable with the current yearâs figures.
Mar 31, 2016
1. The company has only one class of shares having a par value of '' 10/- per share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval by the shareholders of the company in the ensuing Annual General Meeting. In the event of liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. During the year ended 31st March 2016, the amount of per share dividend recognized as distributions to equity share holders is Re. 1.2/- per Share (Previous Year Re. 1/- per Share). The total dividend appropriation for the year ended March 31, 2016 amounts to Rs.6,285,287/- including Corporate Dividend Distribution Tax of Rs.1,063,127/- ( Previous Year Rs.5,222,049/- including Corporate Dividend Distribution Tax Rs. 870,249/-).
2 SECURITY:
A. Term loans outstanding Rs.138,000,000/- (Previous year Rs.175,000,000/-) are secured by way of an equitable mortgage of immovable properties with State Bank of India, Indore ranking pari passu amongst the lenders and by a first charge by way of hypothecation of all the company''s movable machinery, present and future, subject to prior charges created in favour of Company''s Bankers on the stock of raw materials, goods in process, finished and manufactured goods and Book Debts towards security for working capital facilities. Term loans are also secured by personal guarantee of the Managing Director.
B. Vehicle loan outstanding Rs.NIL/- (Previous Year 981,590/-) is secured by hypothecation of Motor Car.
3. Security: A. Loans repayable on demand from State Bank of India, Indore and IDBI Bank Ltd.Indore are Working Capital Loans and are secured by hypothecation of companyâs stock and book debts, present & future and by a second charge on all the immovable properties of the company and plant and machinery, machinery spares, tools and accessories and other movables both present and future. Such advances are also secured by personal guarantees of the Managing Director.
B. Loans and advances from related parties and other loans and advances are unsecured.
4 TRADE PAYABLES
5 Inventories are valued at cost or net realizable value whichever is lower. The cost formulas used are Weighted Average Cost in case of Raw Material and First-in First Out (''FIFO'') in case of Ancillary Raw Material and Consumable Spares. The cost of inventories comprises all cost of purchase including duties and taxes (other than those subsequently recoverable from the taxing authorities), conversion cost and other costs incurred in bringing the inventories to their present location and condition. Excise Duty is included in the value of finished goods inventory.
6. Details of expenses on Corporate Social Responsibility
The Company has incurred a sum of Rs.699,600/- on expenses related to Corporate Social Responsibility. However the Company has not spent the total amount of Rs.1,985,628/- being 2% of average Profit of last three year. Therefore there is a shortfall of Rs.1,286,928/- for the year to be spent on CSR activities. The total shortfall as on Balance Sheet date is Rs.2,782,410/-. The Management is in the process of identifying some good projects that can be supported by the Company.
7. In the opinion of the Board of Directors of the Company, the Current Assets, Loans and Advances have a value realizable in the ordinary course of business at least equal to the amount at which they are stated and provisions for all known liabilities are adequate and not in excess of the amount reasonably necessary.
8. Micro, Small and Medium Enterprises Development Act, 2006
Under the Micro, Small and Medium Enterprises Development Act, 2006 which came into force from 2nd October 2006. Certain disclosures are required to be made relating to Micro, Small and Medium Enterprises. The Management has confirmed that none of the suppliers have confirmed that they are registered under the provisions of this Act. In view of this, the liability of the interest and disclosures are not required to be disclosed in the financial statement.
9. In accordance with the Accounting Standard (AS) 17 âSegment Reportingâ issued by The Institute of Chartered Accountants of India (ICAI) and specified u/s 133 of the Act read with Rule 7 of the Companies (Accounts) Rule, 2014 the Company has only one reportable segment âBead Wireâ for the current year.
10. In accordance with the Accounting Standard (AS)18 âRelated Party Disclosuresâ issued by The Institute of Chartered Accountants
11. Previous Yearâs figures have been regrouped and recast wherever considered necessary to make them comparable with the current yearâs figures.
Mar 31, 2015
Overview
Rajratan Global Wire Company Limited (''the Company'') alongwith its
wholly owned subsidiary, M/s. Rajratan Thai Wire Company Limited is
engaged in the business of manufacturing and sale of Tyre Bead Wire.
The Company is having 68% holding in Swaraj Technocrafts Pvt. Ltd.
which is engaged in manufacturing of Wire-drawing Machinery and Tools.
In addition, the Company has a Wind Mill located in India for
generation of electricity. .
2.1 The company has only one class of shares having a par value of ''
10/- per share. Each holder of equity share is entitled to one vote per
share. The company declares and pays dividend in Indian rupees. The
dividend proposed by the Board of Directors is subject to the approval
by the shareholders of the company in the ensuing Annual General
Meeting. In the event of liquidation of the company, the holders of
equity shares will be entitled to receive any of the remaining assets
of the company, after distribution of all preferential amounts. The
distribution will be in proportion to the number of equity shares held
by the shareholders. During the year ended 31st March 2015, the amount
of per share dividend recognized as distributions to equity share
holders is Re. 1/- per Share (Previous Year Re. 1/- per Share). The
total dividend appropriation for the year ended March 31, 2015 amounts
to Rs. 5,222,049/- including Corporate Dividend Distribution Tax of Rs.
870,249/- ( Previous Year Rs. 5,091,388/- including Corporate Dividend
Distribution Tax Rs. 739,588/-)
The Outstanding of Long Term Borrowings are net of installment due
within next 12 months aggregating to Rs. 55,861,157/-
(Previous year Rs. 50,827,279/-) which are classified as current
liabilities.
2.2 SECURITY:
A. Term loans outstanding Rs. 175,000,000/- (Previous year Rs.
45,000,000/-) are secured by way of an equitable mortgage of immovable
properties ranking pari passu amongst the lenders and by a first charge
by way of hypothecation of all the company''s movable machinery, present
and future, subject to prior charges created in favor of Company''s
Bankers on the stock of raw materials, goods in process, finished and
manufactured goods and Book Debts towards security for working capital
facilities. Term loans are also secured by personal guarantee ofthe
Managing Director.
B. Vehicle loan outstanding Rs. 981,590/- (Previous Year 2,342,747/-) is
secured by hypothecation of Motor Car.
2.3 Security: A. Loans repayable on demand from State Bank of India,
Indore and IDBI Bank Ltd.,Indore are Working Capital Loans and are
secured by hypothecation of companyRs.s stock and book debts, present &
future and by a second charge on all the immovable properties of the
company and plant and machinery, machinery spares, tools and
accessories and other movables both present and future. Such advances
are also secured by personal guarantees ofthe Managing Director.
B. Loans and advances from related parties and other loans and advances
are unsecured.
2.4 Inventories are valued at cost or net realizable value whichever
is lower. The cost formulas used are Weighted Average Cost in case of
Raw Material and First-in First Out (''FIFO'') in case of Ancillary Raw
Material and Consumable Spares. The cost of inventories comprises all
cost of purchase including duties and taxes (other than those
subsequently recoverable from the taxing authorities), conversion cost
and other costs incurred in bringing the inventories to their present
location and condition. Excise Duty is included in the value of
finished goods inventory.
3. CONTINGENT LIABILITIES AND COMMITMENTS
3.1 Contingent Liabilities
(a) Claims against the company not acknowledged
as debt; Nil Nil
(b) Guarantees;
(i) Bank Guarantee 1,000,000 11,000,000
(ii) Corporate Guarantee for the credit facilities availed by M/s.
Rajratan Thai Wire Co. Ltd., Thailand the Wholly Owned subsidiary of
the company. US$ 17.50 Million US$ 17.50 Million
(c) 5,400,000 equity shares of M/s. Rajratan Thai Wire Co., Ltd.
(RTWL),
Thailand have been pledged each with State Bank of India and ICICI Bank
Ltd, against loans sanctioned by them to RTWL
(d) Other money for which the company is contingently liable Income Tax
& Excise appeals for which no provision is considered required as the
company is hopeful of successful outcome in the appeals Income Tax
appeals pending before CIT (Appeals) for F.Y. 2009-10 & 2010-11 pertain
to an issue which has been decided by the Hon''ble Income Tax Appellate
Tribunal, Indore in favor ofthe Company for earlier Years. There are no
pending litigation other than those mentioned above. The total impact
on the financial statements of pending litigation is Rs. 40,37,738/-
(Previous year Rs. 1,566,480/-), if decided against the Company. The
Management is confident that all pending Litigation will be decided in
favor of the Company and there is no expected outflow of resources on
this account.
4. Details of expenses on Corporate Social Responsibility
The Company has incurred a sum of Rs. 424,944/- on expenses related to
corporate social responsibility. However the Company has not spent the
total amount of Rs. 1,930,426/- being 2% of average Profit of last three
year. Therefore there is a shortfall of Rs. 1,495,482/- to be spent on
CSR activities. The Management is in the process of identifying some
good projects that can be supported by the Company.
5. The carrying value of the assets whose useful life is already
exhausted as on 01.04.2014, amount to Rs. 1,30,24,797/- and deferred tax
credit of Rs. 40,24,662/- there on has been recognized in the opening
balance of retained earnings.
6. In the opinion of the Board of Directors of the Company, the
Current Assets, Loans and Advances have a value realizable in the
ordinary course of business at least equal to the amount at which they
are stated and provisions for all known liabilities are adequate and
not in excess of the amount reasonably necessary.
7. Micro, Small and Medium Enterprises Development Act, 2006
The information as required to be disclosed under the Micro, Small and
Medium Enterprises Development Act, 2006 has been determined to the
extent such parties have been identified on the basis of information
available with the company. The outstanding amount as at Balance Sheet
date is given below:
8. In accordance with the Accounting Standard (AS) 17 "Segment
Reporting" issued by The Institute of Chartered Accountants of India
(ICAI) and specified u/s 133 of the Act read with Rule 7 of the
Companies (Accounts) Rule, 2014 the Company has only one reportable
segment "Bead Wire" for the current year. "Windmill" is not a
reportable segment. As the power generated by windmill is exclusively
used for captive consumption in bead wire, the financial result of
"Windmill" segment have been included in "Bead Wire" segment.
Mar 31, 2014
Overview
Rajratan Global Wire Company Limited (''the Company'') alongwith its
wholly owned subsidiary, M/s. Rajratan Thai Wire Company Limited is
engaged in the business of manufacturing and sale of Tyre Bead Wire. In
addition, the Company has a Wind Mill located in India for generation
of electricity.
1 CONTINGENT LIABILITIES AND COMMITMENTS
1.1 Contingent Liabilities
Particulars As at As at
31 March 2014 31 March 2013
(a) Claims against the company Nil Nil
not acknowledged as debt;
(b) Bank Guarantees;
(i) Bank Guarantee with 11,000,000 11,000,000
State Bank of India, Specialised Mid
Corporate Branch, Pithampur
for Rajratan Global Wire
Limited
(ii) Bank Guarantee with local bank for 2.63 2.63
letter of guarantee issued by said Million Million
banks Bhat Bhat
(iii) Bank Guarantee with State Bank 1.217.394 1.217.394
of India, Germantara Complex Branch,
Pithampur for Swaraj Technocrafts Pvt.
Ltd
(c) The Company has given the US$ 17.50 US$ 17.50
Corporate Guarantee for the credit Million Million
facilities availed by M/s. Rajratan
Thai Wire Co. Ltd., Thailand the
Wholly Owned subsidiary of the
company.
(d) 5,400,000 equity shares of
M/s. Rajratan Thai Wire Co.Ltd.(RTWL),
Thailand have been pledged each
with State Bank of India and
ICICI Bank Ltd, against loans
sanctioned by them to RTWL
(e) Other money for which the company
is contingently liable Income Tax &
Excise appeals for which no provision
is considered required as the company
is hopeful of successful outcome in the
appeals
2 Till the previous year the leasehold land, for 99 year lease with an
option to renew for a further period of 30 years, has been in substance
considered as equivalent to ownership of land. Accordingly the premium
on land acquisition was not amortized.
However, the management has now decided to amortize the leasehold land
over the period of lease. During the year, the management has decided
to change the accounting policy with respect to amortization of
leasehold land. A sum of Rs. 4,65,390/-which includes Rs. 4,45,156/-
being the amount till 31.03.2013, has been charged to Statement of
Profit and Loss. Accordingly the profits for the year and the Reserves
& Surplus are understated to that extent.
3 In the opinion of the Board of Directors of the Company, the Current
Assets, Loans and Advances have a value realizable in the ordinary
course of business at least equal to the amount at which they are
stated and provisions for all known liabilities are adequate and not in
excess of the amount reasonably necessary.
4 Micro, Small and Medium Enterprises Development Act, 2006
The information as required to be disclosed under the Micro, Small and
Medium Enterprises Development Act, 2006 has been determined to the
extent such parties have been identified on the basis of information
available with the company. The outstanding amount as at Balance Sheet
date is given below:
5 In accordance with the Accounting Standard (AS) 17 "Segment
Reporting" issued by The Institute of Chartered Accountants of India
(ICAI) and notified under the Companies Accounting Standards Rules,
2006 the Company has only one reportable segment "Bead Wire" for the
current year. "Windmill" is not a reportable segment. As the power
generated by windmill is exclusively used for captive consumption in
bead wire, the financial result of "Windmill" segment have been
included in "Bead Wire" segment.
6 In accordance with the Accounting Standard (AS)18 "Related Party
Disclosures" issued by The Institute of Chartered Accountants of India
(ICAI) and notified under the Companies Accounting Standards Rules,
2006 the names of the related parties and the relevant disclosure is as
under:-
7 The Company has an investment of Rs. 33.60 Crore (Previous Year Rs.
23.35 crore) in equity shares of M/s. Rajratan Thai Wire Company
Limited (RTWL) a wholly owned subsidiary. The Company has outstanding
balances of loans amounting to NIL (Previous Year Rs. 3.67 crore) and
amount receivable on account of sales, Rs.12.93 crore (Previous Year
7.33 crore), (collectively referred to as ''Exposures''). Although the
Net worth of RTWL has eroded to the extent of more than 85%, the
management considers it appropriate not to recognise diminution in
value of investments. Management, barring any significant uncertainties
in future, relies upon the RTWL management''s anticipation of future
profits. The management considers the ''Exposures'' to be ''Good'' at the
close of the year and adequately covered, and expects full
realisability of the same in future, upon which, the Auditors, being
unable to make an informed judgment, have placed their reliance.
8 Previous Year''s figures have been regrouped and recast wherever
considered necessary to make them comparable with the current year''s
figures.
Mar 31, 2013
Overview
Rajratan Global Wire Company Limited (''the Company'') alongwith its
wholly owned subsidiary, M/s. Rajratan Thai Wire Company Limited is
engaged in the business of manufacturing and sale of Tyre Bead Wire. In
addition, the Company has a Wind Mill located in India for generation
of electricity.
1 In the opinion of the Board of Directors of the Company, the Current
Assets, Loans and Advances have a value realizable in the ordinary
course of business at least equal to the amount at which they are
stated and provisions for all known liabilities are adequate and not in
excess of the amount reasonably necessary.
2 Under the Micro, Small and Medium Enterprises Development Act,2006
which came into force from 2nd October 2006, certain disclosures are
required to be made relating to Micro, Small and Medium Enterprises.
The Management has confirmed that none of the suppliers have confirmed
that they are registered under the provisions of this Act. In view of
this, the liability of the interest and disclosures are not required to
be disclosed in the financial statement.
3 The disclosure required as per Accounting Standard (AS) 15
"Employees Benefit" issued by the Institute of Chartered Accountants of
India (ICAI) and notified under the Companies Accounting Standards
Rules, 2006 and based on the report issued by Life Insurance
Corporation of India (LIC) is as under:-
(a) The company has taken Group Gratuity and Cash Accumulation Policy
issued by the LIC which is a defined benefit plan.
4 In accordance with the Accounting Standard (AS) 17 "Segment
Reporting" issued by The Institute of Chartered Accountants of India
(ICAI) and notified under the Companies Accounting Standards Rules,
2006 the Company has only one reportable segment "Bead Wire" for the
current year. "Windmill" is not a reportable segment. As the power
generated by windmill is exclusively used for captive consumption in
bead wire, the financial result of "Windmill" segment have been
included in "Bead Wire" segment.
5 In accordance with the Accounting Standard (AS)18 "Related Party
Disclosures" issued by The Institute of Chartered Accountants of India
(ICAI) and notified under the Companies Accounting Standards Rules,
2006 the names of the related parties and the relevant disclosure is as
under:-
(a) Name of the related party and description of relationship: i. Key
Management Personnel:
1) Mr.SunilChordia - Managing Director
2) Mr.DeepeshTrivedi - Executive Director
3) SmtSangitaChordia - Whole Time Director ii. Relatives of Key
Managerial Personnel
1) Smt. Shantadevi Chordia W/o Shri Chandanmal Chordia iii.
Companies/entities under the control of Key Management personnel
1) M/s.Rajratan Resources Pvt. Ltd.,
2) M/s.Rajratan Investment Ltd,
3) M/s. Cee Cee Engineering Industries Pvt. Ltd. iv. Subsidiary
1) M/s. Rajratan Thai Wire Company Ltd., Thailand
2) M/s. Swaraj Technocraft Pvt. Ltd.
6 The Company has an investment of Rs. 23.35 crore (Previous Year Rs.
23.35 crore) in equity shares of M/s. Rajratan Thai Wire Company
Limited (RTWL) a wholly owned subsidiary. The Company has outstanding
balances of loans amounting to Rs. 3.67 crore (Previous Year Rs. 3.15
crore) and amount receivable on account of sales, Rs. 7.33 crore
(Previous Year 4.14 crore), (collectively referred to as ''Exposures'').
Although the Net Worth of RTWL has eroded to the extent of more than
80%, the management considers it appropriate not to recognize
diminution in value of investments. Management, barring any significant
uncertainties in future, relies upon the RTWL management''s anticipation
of future profits. The management considers the ''Exposures'' to be
''Good'' at the close of the year and adequately covered, and expects
full reusability of the same in future, upon which, the Auditors, being
unable to make an informed judgement, have placed their reliance.
7 Previous Year''s figures have been regrouped and recast wherever
considered necessary to make them comparable with the current year''s
figures.
Mar 31, 2012
Over view
Rajratan Global Wire Company Limited ('the Company') along with its
wholly owned subsidiary, M/s. Rajratan Thai Wire Company Limited is
engaged in the business of manufacturing and sale of Tyre Bead Wire. In
addition, the Company has a Wind Mill located in India for generation
of electricity.
1.1 The company has only one class of shares having a par value of
Rs.10/- per share. Each holder of equity share is entitled to one vote
per share. The company declares and pays dividend in Indian rupees. The
dividend proposed by the Board of Directors is subject to the approval
by the shareholders of the company in the ensuing Annual General
Meeting. In the event of liquidation of the company, the holders of
equity shares will be entitled to receive any of the remaining assets
of the company, after distribution of all preferential amounts. The
distribution will be in proportion to the number of equity shares held
by the shareholders. During the year ended 31st March 2012, the amount
of per share dividend recognised as distributions to equity share
holders is Rs. 1.2 per Share (Previous Year Rs.
1.2 per Share). The total dividend appropriation for the year ended
March 31, 2012 amounts to Rs. 61,09,666 including Corporate Dividend
Distribution Tax of Rs. 8,87,506 (Previous YearRs. 76,37,083 including
Corporate Dividend Distribution Tax Rs. 11,09,383)
2.1 SECURITY:
A. Term loans outstanding Rs. 7,38,81,349/- (Previous year
Rs.8,26,82,477/-) are secured by way of an equitable mortgage of
immovable properties ranking pari passu amongst the lenders and by a
first charge by way of hypothecation of all the company's movable
machinery, present and future, subject to prior charges created in
favour of Company's Bankers on the stock of raw materials, goods in
process, finished and manufactured goods and Book Debts towards
security for working capital facilities. Term loans are also secured by
personal guarantee of the Managing Director.
B. Sales Tax Deferment Loan outstanding Nil (Previous year Rs.
60,49,270/-) is secured by way of charge created in favour of Madhya
Pradesh State Industrial Development Corporation Ltd. ranking
pari-passu on fixed assets with other banks.
C. Vehicle Loan outstanding Nil (Previous year 1,39,326/-) is secured
by hypothecation of vehicle.
3.1 Security: Loans repayable on demand from State Bank of India,
Indore and IDBI Bank Ltd.,Indore are Working Capital Loans and are
secured by hypothecation of company's stock and book debts, present
and future and by a second charge on all the immovable properties of
the company and plant and machinery, machinery spares, tools and
accessories and other movables both present and future. Such advances
are also secured by personal guarantees of the Managing Director.
4.1 Inventories are valued at cost or net realisable value whichever
is lower. The cost formulas used are Weighted Average Cost in case of
Raw Material and First-in First Out ('FIFO') in case of Ancillary Raw
Material and Consumable Spares. The cost of inventories comprises all
cost of purchase including duties and taxes (other than those
subsequently recoverable from the taxing authorities), conversion cost
and other costs incurred in bringing the inventories to their present
location and condition. Excise Duty is included in the value of
finished goods inventory.
5 CONTINGENT LIABILITIES AND COMMITMENTS
5.1 Contingent Liabilities
(a) Claims against the company not
acknowledged as debt; Nil Nil
(b) Guarantees;
(i) Bank Guarantee 84,55,099 53,55,538
(ii) Corporate Guarantee for the credit
facilities availed by
M/s, Rajratan Thai wire co. Ltd.
Thailand the Wholly
Owned subsidiary ofthe company. US$ 17.50 Million US$12.30
Million
(c) Other money for which the
company is contingently liable
Income Tax & Excise appeals for
which no provision is
considered required as the company
is hopeful of successful
out come in the appeals 5,84,233 7,16,114
6 In the opinion of the Board of Directors of the Company, the Current
Assets, Loans and Advances have a value realizable in the ordinary
course of business at least equal to the amount at which they are
stated and provisions for all known liabilities are adequate and not in
excess of the amount reasonably necessary.
7 Under the Micro, Small and Medium Enterprises Development Act,2006
which came into force from 2nd October 2006, certain disclosures are
required to be made relating to Micro, Small and Medium Enterprises.
The Management has confirmed that none of the suppliers have confirmed
that they are registered under the provisions of this Act. In view of
this, the liability of the interest and disclosures are not required to
be disclosed in the financial statement.
8 The disclosure required as per Accounting Standard (AS) 15
"Employees Benefit" issued by the Institute of Chartered
Accountants of India (ICAI) and notified under the Companies Accounting
Standards Rules, 2006 and based on the report issued by Life Insurance
Corporation of India (LIC) is as under:-
9. In accordance with the Accounting Standard (AS) 17 "Segment
Reporting" issued by The Institute of Chartered Accountants of India
(ICAI) and notified under the Companies Accounting Standards Rules,
2006 the company has only one reportable segment "Bead Wire" for
the current year. "Windmill" is not a reportable segment. As the
power generated by windmill is exclusively used for captive consumption
in bead wire, the financial result of "Windmill" segment have been
included in "Bead Wire" segment.
10. In accordance with the Accounting Standard (AS)18 "Related Party
Disclosures" issued by The Institute of Chartered Accountants of
India (ICAI) and notified under the Companies Accounting Standards
Rules, 2006 the names of the related parties and the relevant
disclosure is as under:-
11. Earning Per Share :
The Company's share capital consists of equity share. The basic and
diluted earning per share is calculated as under:
Mar 31, 2011
1. In the opinion of the Board of Directors of the Company, the
Current Assets, Loans and Advances have a value realizable in the
ordinary course of business at least equal to the amount at which they
are stated and provisions for all known liabilities are adequate and
not in excess of the amount reasonably necessary.
2. The estimated amount of contract remaining to be executed on
capital account and not provided for Rs. 1,50,000/- (Previous Year Rs.
1,40,57,871/-) Advances paid to suppliers of capital goods is Rs.
1,87,928/- are (Previous Year 47,01,065/-) included in the Capital Work
in progress.
3. Contingent liabilities
a) The company has given the Corporate Guarantee for the credit
facilities availed by M/s Rajratan Thai Wire Co.Ltd, Thailand the
wholly owned subsidiary of the company: USD 12.30 Million (Previous
Year USD 12.30 Million).
b) The Demands have been raised by the Income Tax department against
the company after assessment for the following years though the company
has filed appeals before the appropriate authorities against such
assessment orders.
AY.2007-08 Rs. 1,34,891/-
4. Installments of term loans from financial institutions falling due
within one year are Rs. 5,22,00,000/- (Previous year Rs. 4,32,00,000/-) and
Sales Tax Deferment Loan Rs. 59,77,724/- (Previous Year Rs. 1,72,23,072/-)
5. Quantitative Information as required under Clause 3(i) (a), 3(h),
4-C, 4-D of Part II of Schedule VI to the Companies Act, 1956.
6. During the year the dividend received from Subsidiary M/s Swaraj
Technocrafts Pvt. Ltd. is X 87,500/- (Previous Year X 87,500/-).
7. Under the Micro, Small and Medium Enterprises Development Act,2006
which came into force from 2nd October 2006, certain disclosures are
required to be made relating to Micro, Small and Medium Enterprises.
The Management has confirmed to us that none of the suppliers have
confirmed that they are registered under the Provisions of this Act. in
view of this, the liability of the interest and disclosures are not
required to be disclosed in the financial statement.
8. During the year the commission on sales paid to Selling Agents is
Rs. 31,41,085/- ( Previous Year Rs. 4,95,031/-).
9. The amount of Foreign Exchange difference included in the profit &
loss account is Rs. 1,22,906 /- (Previous Year Rs. (-) 21,39,237/-).
10. The disclosure required as per Accounting Standard (AS) 15
"Employees Benefit" issued by the Institute of Chartered Accountants of
India (ICAI) and notified under the Companies Accounting Standards
Rules, 2006 and based on the report issued by Life Insurance
Corporation of India (LIC) is as under:-
(a) The company has taken Group Gratuity and Cash Accumulation Policy
issued by the LIC which is a defined benefit plan.
11. In accordance with the Accounting Standard (AS)18 "Related Party
Disclosures" issued by The Institute of Chartered Accountants of India
(ICAI) and notified under the Companies Accounting Standards Rules,
2006 the names of the related parties and the
relevantdisclosureisasunder:-
(a) Name of the related party and description of relationship: i. Key
Management Personnel:
1) Mr.ChandanmalChordia - Chairman (Till 5th May 2010)
2) Mr.SunilChordia - Managing Director
3) Mr.DeepeshTrivedi - Executive Director
ii. Relatives of Key Managerial Personnel
1) Smt. Shantadevi Chordia W/o Shri Chandanmal Chordia
2) Smt. Sangita Chordia W/o Shri Sunil Chordia
iii. Companies/entities under the control of Key Management personnel
1) M/s.Rajratan Resources Pvt. Ltd.,
2) M/s.Rajratan Investment Ltd,
3) M/s. Cee Cee Engineering Industries Pvt.Ltd. iv Subsidiary
1) M/s. Rajratan Thai Wire Company Ltd., Thailand
2) M/s. Swaraj Technocraft Pvt Ltd .
12. Debit/Credit balances written off during the year amounting to Rs.
10,66,592/- includes:-
(a) Advance paid to raw material suppliers of Rs. 5,00,000/- against
which no supplies are received.
(b) Bad debts written off during the year amounting to Rs. 51,31,778/-
(c) Credit balance of one of the supplier of Rs. 45,45,758/- is written
back which in the opinion of the management is not payable.
13. Previous Year's figures have been regrouped and recast wherever
considered necessary to make them comparable with the current year's
figures.
Mar 31, 2010
1. In the opinion of the Board of Directors of the Company, the
Current Assets, Loans and Advances have a value realizable in the
ordinary course of business at least equal to the amount at which they
are stated and provisions for all known liabilities are adequate and
not in excess of the amount reasonably necessary.
2. The estimated amount of contract remaining to be executed on
capital account and not provided for Rs 1,40,57,871/- (Previous Year
Rs. 50,10,663/-) Advances paid to suppliers of capital goods is
Rs.47,01,065/- are (Previous Year 12,26,453/-) included in the Capital
Work in progress.
3. Contingent liabilities
a) Bank Guarantees given by Bank Rs. NIL (Previous Year Rs.6,76,000/-).
b) The company has given the Corporate Guarantee for the credit
facilities availed by M/s Rajratan Thai Wire Co.Ltd, Thailand the
wholly owned subsidiary of the company: USD 12.30 Million (Previous
Year USD 12.30 Million)
c) The Demands have been raised by the Income Tax department against
the company after assessment for the following years though the company
has filed appeals before the appropriate authorities against such
assessment orders.
A.Y.2007-08 Rs. 1,34,891/-
4. Installments of term loans from financial institutions falling due
within one year are Rs.4,32,00,000/- (Previous year Rs.5,43,33,233/-)
and Sales Tax Deferment Loan Rs. 1,72,23,072/- (Previous Year Rs.
1,42,09,904/-)
5. Quantitative Information as required under Clause 3(i) (a), 3(ii),
4-C, 4-D of Part II of Schedule VI to the Companies Act, 1956.
6. During the year the dividend received from Joint Venture in M/s
Swaraj Technocrafts Pvt. Ltd. is Rs.87,500/- (Previous Year Rs.
1,31,250/-).
7. The suppliers of the company have not informed about the status of
their Registration under Micro, Small and Medium Enterprises Act, there
for the information in this regard could not be compiled with. The
total outstanding dues of micro and small enterprises have been
considered as NIL.
8. During the year the commission on sales paid to Selling Agents is
Rs. 4,95,031/-( Previous Year Rs.38,24,428/-).
9. The amount of Foreign Exchange difference included in the profit &
loss account is Rs. (-)21,39,237/- (Previous Year Rs. (-) 11,23,486/-).
Notes:- i. The basis of inter segments transfers is the rate of power
decided by MP State Electricity Board. ii. There are no changes is
segment accounting policies. iii. Type of products and services in
business segment is as under:-
Steel Wire - Tyre Bead Wire
Wind Mill - Generation of Electrical Energy