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Notes to Accounts of Rajvir Industries Ltd.

Mar 31, 2015

Note No. - 1. : EMPLOYEE BENEFIT EXPENSES (Contd.)

Defined Benefit Plans:

Gratuity - Gratuity is payable to all the eligible employees of the Company on resignation, death, Permanent disablements in terms of the Payment of Gratuity Act,1972.

Leave Encashment - Entitlement of annual leave is recognised when they accrue to employees Annual leave can either be availed or encashed subject to a restriction on the maximum number of accumulation of leaves.

Note No. - 2.

The operations of the company predominantly comprises of "Manufacturing of yarn"(made of Cotton, Polyster and Viscose). These activities constitute the Primary segment. Secondary segmental reporting is made on the basis of geographical location of the customers. The accounting principles consistently used in the preparation of the financial statements are also consistently applied to record income and expenditure in individual segments.

The company's major exports are made to four principal geographical areas in the World. In India, its home country, the company carries out manufacturing of Yarn and Trading of raw cotton. The following table to shows the distribution of the company's turnover

Note No. - 3.

Previous period's figures have been recast / restated to confirm with the current year's classification.


Mar 31, 2014

SHARE CAPITAL

a) Terms/rights attached to equity shares:

The Company has one class of Equity Shares of face value Rs. 10 per share. Each holder of Equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the Share holders in ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive 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.

b) Terms/rights attached to 12% Redeemable Non Convertible Cumulative Preference shares

(i) Entitled to receive dividend @ 12% per annum

(ii) 6,50,000 Shares issued on 17.10.2011 Redeemable on 16th January, 2025

(iii) 3,00,000 Shares issued on 14.11.2012 Redeemable on 15th February, 2025

(iv) The RNCCPS shall have right to attend the General meetings of the company and vote on the Resolutions directly affecting their interest or where the dividence are in arrears for not less than two years on the date of the meeting, on all resolutions at every meeting of the Company.

(v) In winding up, the RNCCPS holders of the said shares shall be entitled to preferential right of return of the amount paid up on the shares, together with arrears of cumulative preference dividend due as on the date of winding up, but shall not have any further right or claim over the surplus profits or assets of the Company.

c) Details of Equity and Redeemable Preference Shareholders holding more than 5% of Shares along with No. of Shares held at the beginning and at the end of the reporting period are as given below:

Note No. 1

(a) State Bank of India Term Loan carrying @16% interest and principle to be repaid in 24 quarterly installments upto June 2016.

The term loan is secured by mortgage of present and future movable and immovable assets of the company situated at Mahaboobnagar unit on Pari Passu basis and guaranteed by one Director of Company.

(b) State Bank of Hyderabad Term Loans carrying @13.45% and @13.95% interest and principle tobe repaid in 19 quarterly installments upto June 2016. The Loans are secured by mortgage of present and future movable and immovable assets of the company situated at Tandur unit on Pari Passu basis and guaranteed by one Director of the Company.

(c) State Bank of Bikenere and Jaipur Term Loans carrying @14.25% and @15.25% interest and principle tobe repaid in 25 quarterly installments upto December 2015. The Loans are secured by mortgage of present and future movable and immovable assets of the company situated at Tandur unit on Pari Passu basis and guaranteed by one Director of the Company.

(d) Term Loan from Axis Bank Ltd carrying @14.75% interest and principle tobe repaid in 32 quarterly installments upto June 2016. The term loan is secured by mortgage of present and future movable and immovable assets of the company situated at Tandur Unit on Pari Passu basis and second Pari Passu charge on entire fixed assets of Mahboobnagar Unit of the Company both present and future and guaranteed by two Directors of the Company.

(e) Term Loan from ICICI Bank carrying @16.75% interest and principle tobe repaid in 34 quarterly installments upto June 2018. The Loan of ICICI Bank Ltd is secured on Pari Passu basis of factory land & buildings of Mahboobnagar Unit present and future, and factory land and buildings of dyeing plant at Yedira Village of Mahboobnagar district and second Pari Passu charge on fixed assets of Tandur Unit.

(f) Working Capital Term Loan from Central Bank of India carrying @15.5% interest and principle tobe repaid in 32 quarterly installments upto July 2016. The loan of Central Bank of India is secured by Pari Passu second charge on fixed assets of both Tandur & Mahboobnagar Units and personal guarantee of two Directors of the Company.

(g) Short term corporate loan from State Bank of India carrying @16.1% interest and principle tobe repaid in 12 quarterly installments upto March 2016. The loan is secured by extension of first charge on current assets along with working capital bankers of the consortium.

(h) Short term corporate loan from State Bank of Hyderabad carrying @15.7% interest and principle tobe repaid in 12 quarterly installments upto July 2016. The loan is secured by extension of first charge on current assets along with working capital bankers of the consortium.

(i) Current maturities of Term Loans include Rs. 436.53 lakhs installments over due as on the date of Balance Sheet, of which since paid Rs. 394.03 lakhs.

Note No. 2

Unsecured Loans from Directors, their relatives and others are long term loans and carrying rate of interest @8% per annum to @12% per annum.

Note No. 3

All Working Capital Loans from Banks carrying interest @ 14% to 17% are secured by hypothecation of stocks of raw materials, yarn, stock- in-process, stores and spares, book debts and Second Charge on the present and future immovable properties of the company on pari-passu basis and further guaranteed by two directors of the Company.

Note No. 2.4.1

The 9.5% redeemable non convertible debentures are secured by mortgage of present and future movable & immovable properties situated at Mahaboobnagar unit on pari-passu basis and guaranteed by one director of the Company. The above debentures are pending redemption.

Note No. 2.4.2

Unclaimed dividends do not include any amounts,due and outstanding, to be credited to investor education and protection fund.

Note No. 2.4.3

Current maturities of Interest on Term Loans from Banks include Rs. 122.97 lakhs over due as on the date of Balance Sheet, of which Rs. 110.65 lakhs has since been paid.

Note No. 2.5

CASH AND BANK BALANCES

* Balances with Banks include unclaimed dividend of Rs. 5.36 Lakhs (previous year Rs. 6.54 lakhs) and balance in Exchange Earners Exchange Earners Foreign Currency Account Rs. 8.36 Lakhs (previous year Rs. 2.41 lakhs)

** Fixed Deposits with Banks are under lien to Banks towards LC''s, BG''s & NCD''s of Rs. 283.49 Lakhs of which Rs. 283.49 lakhs (previous year Rs. 486.33 lacs) with maturity of more than 12 months.

Note No. 2.6

Other non- operative Income includes recognisation of income towards interest under TUFS receivable amounting to Rs. 1210.41 lakhs for the period 2006-07 to 2010-11( refunded in earlier years), in view of the favourable judgement of competent court. The amount is subject to final determination by appropriate authorities and realisation thereof.

Note No. 2.7

Employee Benefits

As per Accounting Standard 15"Employee Benefits"the disclosures of Employee Benefits as defined in the Accounting standard are given below:

Defined Contributions:

Payments and provisions for employees include Rs. 81.04 lakhs (Previous Year Rs. 88.84 lakhs) recognised as expenses in respect of defined contribution plans.

Defined Benefit Plans:

Gratuity - Gratuity is payable to all the eligible employees of the Company on resignation, death, permanent disablement in terms of the Payment of Gratuity Act, 1972

Leave Encashment - Entitlement to annual leave is recognised when they accrue to employees. Annual leave can either be availed or encashed subject to a restriction on the maximum number of accumulation of leaves.

Note: The estimate of future salary increases, considered in actuarial valuation, takes into account inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

Note No. 2.8

Contingent Liabilities not provided for:

Particulars 31 March, 2014 31 March, 2013

a) Letters of credit Nil 47.89

b) Bank Guarantees 610.00 1711.97

c) In respect of Bills Discounted & outstanding 668.23 2041.21

d) In respect of suits filed but not acknowledged as debt 26.80 26.80

e) Other commitments:

Company remains exposed to liability towards fuel surcharge adjustment, which are notified by Power Distribution Companies of Andhra Pradesh pertaining to earlier years, which are being adjusted in future tariff payable for consumption. Accordingly charges are accounted in the year payment/bill raised for the same.

Note No. 2.9

The balance outstanding to the debit or credit in the accounts of parties are subject to confirmation and review by the company.

Note No. 2.10

The operations of the company predominantly comprises of "Manufacturing of yarn". These activities constitute the Primary segment. Secondary segmental reporting is made on the basis of geographical location of the customers. The accounting principles consistently used in the preparation of the financial statements are also consistently applied to record income and expenditure in individual segments.

The company''s major exports are made to four principal geographical areas in the World. In India, its home country, the company carries out manufacturing of Yarn and Trading of raw cotton. The following table shows the distribution of the company''s turnover by geographical locations.

Note No. 2.11

RELATED PARTY TRANSACTIONS

NAMES OF ASSOCIATES FIRMS

M/s Balaji Enterprises M/s Sri Laxmi Enterprises

U. K. Agarwal (Family Trust) U. K. Agarwal (HUF)

M/s U. K. Cotton Exports

NAMES OF KEY MANAGEMENT PERSONNEL

Sri U. K. Agarwal Sri Ritesh K. Agarwal

NAMES OF RELATIVES OF KEY MANAGEMENT PERSONNEL

Mrs. Usha Agarwal - Wife of Sri. U. K. Agarwal

Mrs. Arti Agarwal - Wife of Sri. Ritesh K Agarwal

Master Viraj Agarwal - Son of Sri. Ritesh K Agarwal

Miss Neysa Agarwal - Daughter of Sri. Ritesh K. Agarwal

Note No. 2.12

The Company has prepared these financial statements as per the format prescribed by Revised Schedule VI to the Companies Act, 1956 ("the schedule") issued by Ministry of Corporate Affairs. Previous period''s figures have been recast/restated to confirm to the classification required by the revised Schedule VI.


Mar 31, 2013

Note No. 1.1 A

Employee Benefits

As per Accounting Standard 15 "Employee Benefits," the disclosures of Employee Benefits as defined in the Accounting Standard are given below:

Defined Contributions:

Payments and provisions for employees include Rs.88.84 lakhs (Previous Year Rs.86.24 lakhs) recognised as expenses in respect of defined contribution plans.

Defined Benefit Plans:

Gratuity- Gratuity is payable to all the eligible employees of the Company on resignation, death, permanent disablement in terms of the

Payment of Gratuity Act, 1972

Leave Encashment - Entitlement to annual leave is recognised when they accrue to employees. Annual leave can either be availed or encashed subject to a restriction on the maximum number of accumulation of leaves.

Note No. 1.2

The Company has prepared these financial statements as per the format prescribed by Revised Schedule VI to the Companies Act, 1956 ("the schedule") issued by Ministry of Corporate Affairs. Previous period''s figures have been recast / restated to confirm to the classification required by the revised Schedule VI.


Mar 31, 2012

A) Terms/rights attached to equity shares:

The Company is having one class of Equity Shares of face value Rs.10 per share. Each holder of Equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the Share holders in ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive 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.

b) Terms/rights to 12% Redeemable Non Convertible Cummulative Preference shares

The Preference shares issued are non convertible and redeemble after a period of 5 years with a right of divedend @ 12% p.a

c) Details of Equity Shareholders holding more than 5% of equity shares along with No. of Equity Shares held at the beginning and at the end of the reporting period are as given below:-

(1) The 9% redeemable non convertible debentures are secured by mortgage of present and future movable & immovable properties situated at Mahaboobnagar unit on pari-passu basis and guaranteed by one director of the Company.The debentures are redeemable in ten quarterly instalments starting from 1st January,2010 onwards as per reschedulement permitted by IDBI bank.

(2) Industrial Development of India and State Bank of India Term Loans are secured by mortgage of present and future movable and immovable assets of the Company situated at Mahaboobnagar unit on Pari Passu basis and guaranteed by one Director of the Company.

(3) State Bank of Hyderbad and State Bank of Bikaner & Jaipur Term Loans are secured by mortgage of present and future movable and immovable assets of the Company situated at Tandur unit on Pari Passu basis and guaranteed by one Director of the Company.

(4) Term Loans from Axis Bank Ltd are secured by mortgage of present and future movable and immovable assets of the Company situated at Tandur Unit on Pari Passu basis and second Pari Passu charge on entire fixed assets of Mahboobnagar Unit of the Company both present and future and guaranteed by two Directors of the Company.

(5) Term Loan of ICICI Bank Ltd is secured on Pari Passu basis of factory land & buildings of Mahboobnagar Unit present and future, and factory land and buildings of dyeing plant at Yedira Village of Mahboobnagar district and second Pari Passu charge on fixed assets of Tandur Unit.

(6) Car Loans are succured by Hypothecation of respective assets and guaranteed by one director of the Company.

(7) Current maturities of Term Loans include Rs.492.78 lakhs instalments over due as on the date of Balance Sheet which has since been paid by the Company Unclaimed dividends do not include any amounts,due and outstanding, to be credited to investor education and protection fund.

Current maturities of Interest on Term Loans from Banks include Rs.148.54 lakhs over due as on the date of Balance Sheet has since been paid by the Company.

Note No. 1.1

A Employee Benefits

As per Accounting Standard 15 "Employee Benefits," the disclosures of Employee Benefits as defined in the Accounting Standard are given below:

Defined Contributions:

Payments and provisions for employees include Rs.86.24 lakhs (Previous Year Rs.74.89 lakhs) recognised as expenses in respect of defined contribution plans.

Defined Benefit Plans:

Gratuity- Gratuity is payable to all the eligible employees of the Company on resignation, death, permanent disablement in terms of the Payment of Gratuity Act, 1972

Leave Encashment - Entitlement to annual leave is recognised when they accrue to employees. Annual leave can either be availed or encashed subject to a restriction on the maximum number of accumulation of leaves.

Rs. in lakhs

Note No. 1.2 31 March 2012 31 March 2011

Contingent Liabilities not provided for:

a) Letters of credit 168.52 -

b) Bank Guarantees 2111.97 1.97

c) In respect of Bills Discounted & outstanding 2561.87 831.64

d) In respect of suits filed but not acknowledged as debt 26.80 26.80

Note No. 1.3

The operations of the Company predominently comprises of "Manufacturing of yarn". These activities constitute the Primary segment.

Secondary segmental reporting is made on the basis of geographical location of the customers. The accounting principles consistently used in the preparation of the financial statements are also consistently applied to record income and expenditure in individual segments.

The Company's major exports are made to four principal geographical areas in the World. In India, its home country, the Company carries out manufacturing of Yarn and Trading of raw cotton. The following table to shows the distribution of the Company's turnover by geographical locations.

Note No. 1.4

The Company has prepared these financial statements as per the format prescribed by Revised Schedule VI to the Companies Act, 1956 ("the schedule") issued by Ministry of Corporate Affairs. Previos period's figures have been recast / restated to conform to the classification required by the revised Schedule VI.


Mar 31, 2011

31.03.2011 31.03.2010 Rs. in Lacs Rs. in Lacs

1) Contingent Liabilities not provided for:

a) Bank Guarantees 1.97 11.97

b) In respect of Bills Discounted & outstanding 831.64 2512.28

c) In respect of suits filed but not acknowledged as debt 26.80 26.80

2) The Company has disputed the amount payable to M/s Surya Lakshmi Cotton Mills Limited on account of demerger and consequential transactions. M/s Surya Lakshmi Cotton Mills Limited has filed recovery suit for Rs. 444.16 lacs plus interest which the company has disputed and filed a counter claim for Rs. 700.00 lacs. The Company has also initiated other legal proceedings against the aforesaid company for recovery of Various Benifits, Refunds and other Dues, which are pending before the Judicial Authorities. The Company expects no further liability.

3) Current Assets and Loans and Advances: In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated if realised in the ordinary course of business. The provision for all known liabilities are adequate and not in excess of the amounts considered reasonably necessary.

4) Confirmations from debtors & creditors are subject to confirmation and reconciliation

5) Disclosure in accordance with section 22 of 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.

6) The operations of the company predominently comprises of "Manufacturing of yarn". These activities constitute the Primary segment.

Secondary segmental reporting is made on the basis of geographical location of the customers. The accounting principles consistently used in the preparation of the financial statements are also consistently applied to record income and expenditure in individual segments.

7) Related party disclosure

NAMES OF KEY MANAGEMENT PERSONNEL

Sri U.K.Agarwal

Sri Ritesh K. Agarwal

RELATIVES OF KEY MANAGEMENT PERSONNEL.

Mrs. Usha Bai Agarwal wife of Sri. U.K..Agarwal

Mrs. Arti Agarwal wife of Sri. Ritesh K..Agarwal

Master Viraj Agarwal Son of Sri. Ritesh K. Agarwal

Miss Neysa Agarwal Daughter of Sri. Ritesh K. Agarwal

NAMES OF OTHER ASSOCIATES

M/s Balaji Enterprises M/s Sri Laxmi Enterprises U.K.Agarwal (Family Trust) U.K.Agarwal (HUF) M/s U.K.Cotton Exports

8) General:

a) Paise are rounded off to the nearest Rs.

b) Previous year's figures have been regrouped / recast wherver considered necessary to make these comparable with those of the current year.

 
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