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Notes to Accounts of Rama Petrochemicals Ltd.

Mar 31, 2015

1.Equity Shares : The company has issued only one class of Equity shares having a par value of Rs. 10/- each. Each holder of equity shares is entitled to one vote per share. Dividend is payable in the proportion to the Capital Paid Up. In the event of liquidation of the company,the holder 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.

2. The Company had a liability of Rs. 312,333,405/- payable from 30th April 2001 to 30th April 2014 to Sales Tax Department of Government of Maharashtra in respect of sales tax deferral scheme for its Methanol division. The Company had assigned the said liability to subsidiary during the year 1999 - 2001. The subsidiary had paid Rs. 1,989,265/- upto 31st March 2015 out of Rs. 312,333,405/- due upto 31st March 2015. Since the subsidiary has not made further payment to sales tax department same is accounted as sales tax deferral dues. Since recovery of Rs. 308,644,140/- from subsidiary is doubtful, the same has been provided for in the books of accounts.

3. Based on the information available with the company, one party has been identified as MSME as defined under "Micro,Small and Medium Enterprises Development Act, 2006" which has claimed Rs. 14,33,622/- (Previous Year Rs. 14,33,622/-) towards supply. This liability has been disputed by the company. The party has filed a complaint against the Company, with Micro and Small Enterprises Facilitation Council. Under these circumstances interest, if any, will be accounted as and when becomes payable.

4. During the year 1998 - 99, company had imported some material and could not pay the custom duty due to financial crisis. The material was stored in Central Warehousing Corporation bonded warehouse. During the year 2012 - 13, the company came to know that the material was auctioned by the Custom Authority for non-paymant of duty. The Company is taking appropriate legal remedies for claiming the value of these materials, hence the same is disclosed as Claims Receivable.

5. Contingent Liabilities :

a. Claims against the company not acknowledged are as follows : (Amount in Rs. )

Name of the Statute 2014 - 15 2013 - 14

Income Tax 285,497,280 285,497,280

Gujarat Sales Tax 3,606,085 3,606,085

Irrigation Department 259,205,087 259,205,087

Total 548,308,452 548,308,452

The Company is in appeal for these claims.

b. Guarantees / Counter Guarantees given to Banks, Financial Institutions and other Body Corporate Rs. 909,600,000/- (Previous Year Rs. 909,680,000/-)

6. The operation of company's methanol division has been unviable and in turn forced the company to suspend its production activities since Sept.'1999. However, the company is making efforts to obtain alternative main feed stock for its methanol plant to make the operation viable. Considering the fact that laying of pipeline for supply of gas by Gas Authority of India Ltd. is completed, the company is hopeful to restart its plant soon. Accordingly the company continues to prepare accounts on the basis of "Going Concern Concept".

7. As mentioned above the company had suspended its production activities since Sept.'1999, as a result of this the company has transferred some of the employees to other Division /Group Companies w.e.f. 30th October,1999. None of the transferred employees has reported to their duties and they have approached the Industrial Court. However, Company does not expect any financial liability, apart from their service benefit, which has been provided in the books of account.

8. The company has obtained a valuation report from registered valuer in respect of its methanol division. On considering the same, the management is of the opinion that there is no loss on account of impairment of assets as per AS - 28 "Impairment of Assets" as issued by ICAI pertaining to this division.

9. Related Party Disclosure under Accounting Standard 18 (AS 18) :

A) List of related parties as identified by the management with whom transactions are taken place during the year are as under :

Sr. Relationship Related Parties No.

I Enterprises that directly or Rama Capital and Fiscal Services indirectlycontrol (through Pvt. Ltd.- 100% subsidiary company subsidiariers) or are controlled by are under common control with the reporting enterprise

II Associates, Joint Ventures of the Indo Us Investment Inc reporting entity, investing party or venture in respect of which reporting enterprise is an associate or a joint venture

III Individual owing, directly or None indirectly an interest in voting power of reporting enterprise that gives them control or significant influence over the enterprise and relative of any such individual

Sr. Relationship Related Parties No.

IV Key Management Personnel (KMP) Mr. H. D. Ramsinghani - Chairman and their relatives

Mr. D. N. Singh - Technical Director

Relatives of Chairman

Mr. D. J. Ramsinghani

Mrs. L. D. Ramsinghani

Mrs. N. H. Ramsinghani

Ms. P. D. Ramsinghani

V Enterprises over which any Rainbow Denim Ltd. person described in III and IV above is able to exercise Rama Phosphates Ltd. significant influence Rama Industries Ltd.

Rainbow Agri Industries Ltd.

Bluelagoon Investment Pvt. Ltd.

Rama Enterprises

10. Previous year figures have been regrouped / rearranged wherever necessary to make them comparable.


Mar 31, 2014

1. Share Capital

Details of rights,preferences and restrictions attaching to each class of shares including restrictions on the distribution of dividends and the repayment of capital.

Equity Shares : The company has issued only one class of Equity shares having a par value of Rs. 10/- each. Each holder of equity shares is entitled to one vote per share. Dividend is payable in the proportion to the Capital Paid Up. In the event of liquidation of the company,the holder 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.

2. Share Application Money

1. Share Application money is received from a promoter''s group company in accordance with the revival Scheme submitted to the B.I.F.R. and the allotment of shares pursuant thereto is subject to and shall be in accordance with the directions of the B.I.F.R.

3. Long Term Provisions

1. Consequent to the adoption of Accounting Standard 15 on Employee Benefits issued by the Institute of Chartered Accountants of India, the following disclosures have been made as required by standards :

A. Defined Contribution Plan

Provident Fund : The Company has recognised the following amount in the profit and loss account for the year.

4. Other Current Liabilities

1. Based on the information available with the company, one party has been identified as MSME as defined under "Micro,Small and Medium Enterprises Development Act, 2006" which has claimed Rs. 14,33,622/- (Previous Year Rs. 14,33,622/-) towards supply. This liability has been disputed by the company. The party has filed a complaint against the Company, with Micro and Small Enterprises Facilitation Council. Under these circumstances interest, if any, will be accounted as and when becomes payable.

5. Fixed Assets (At Cost)

1. Lease hold land is taken on lease for the period of 95 years and cost of the same is amortised over the period of lease.

2. Immovable properties of the Company is also mortagaged on first pari-passu charge basis in favour of Financial Institution and Banks to secure Term Loan sanctioned to denim division of the company. In the year 1999 - 2001, denim division of the company was demerged as Rainbow Denim Ltd.

6. Other Current Assets

1. During the year 1998 - 99, company had imported some material and could not pay the custom duty due to financial crisis. The material was stored in Central Warehousing Corporation bonded warehouse. During the year 2012 - 13, the company came to know that the material was auctioned by the Custom Authority for non-paymant of duty. The Company is taking appropriate legal remedies for claiming the value of these materials, hence the same is disclosed as Claims Receivable.

7. Contingent Liabilities

a. Claims against the company not acknowledged are as follows

(Amount in Rs.)

Name of the Statute 2013-14 2012-13

Income Tax 28,54,97,280 16,71,85,892

Gujarat Sales Tax 36,06,085 36,06,085

Irrigation Department 25,92,05,087 25,92,05,087

Total 54,83,08,452 42,99,97,064

The Company is in appeal for these claims.

b. Guarantees/Counter Guarantees given to Banks, Financial Institutions and other Body Corporate Rs. 90,96,80,000/- (Previous Year Rs. 98,46,70,906/-).

c. Sales Tax Liability of Rs. 31,03,44,140/- (Previous Year Rs. 31,03,44,140/-).

Interest Free Sales Tax Deferment : The Company had a liability of Rs. 31,23,33,405/- (Previous Year Rs. 31,23,33,405/-) payable from 30th April 2001 to 30th April 2014 to Sales Tax Department of Government of Maharashtra in respect of sales tax deferral scheme for its Methanol division. The Company has assigned the said liability to another company during the year 1999 - 2001. The assignee company has paid Rs. 19,89,265/- (Previous Year Rs. 19,89,265/-) upto 31st March, 2014 out of Rs. 31,19,19,527/- (Previous Year Rs. 30,84,96,760/-) due upto 31st March, 2014. Since the assignee company has failed in paying the sales tax dues, the assignor may be responsible to pay the same and hence this has been disclosed as contingent liability. The company is registered under BIFR.

d. Capital commitments Rs. Nil (Previous Year Rs. 18,83,435/-).

8. The company has not provided for

a. Custom duty (net of provision) of Rs. 4,32,740/- (Previous Year Rs. 4,32,740/-) and interest on custom duty aggregating to Rs.1,81,51,909/- (Previous Year Rs. 1,69,65,361/-) till March 31, 2014.

b. Interest on late payment of custom duty Rs. 19,62,185/- (Previous Year Rs. 19,62,185/-)

9. The operation of company''s methanol division has been unviable and in turn forced the company to suspend its production activities since Sept.''1999. However, the company is making efforts to obtain alternative main feed stock for its methanol plant to make the operation viable. Considering the fact that laying of pipeline for supply of gas by Gas Authority of India Ltd. is completed, the company is hopeful to restart its plant soon. Accordingly the company continues to prepare accounts on the basis of "Going Concern Concept".

10. As mentioned above the company had suspended its production activities since Sept.''1999, as a result of this the company has transferred some of the employees to other Division /Group Companies w.e.f. 30th October,1999. None of the transferred employees has reported to their duties and they have approached the Industrial Court. However, Company does not expect any financial liability, apart from their service benefit, which has been provided in the books of account.

11. The company has obtained a valuation report from registered valuer in respect of its methanol division. On considering the same, the management is of the opinion that there is no loss on account of impairment of assets as per AS - 28 "Impairment of Assets" as issued by ICAI pertaining to this division.

12. Segment Reporting

The company has the following primary segments during the year

1. Methanol

2. Construction

3. Trading Goods

13. Previous year figures have been regrouped/rearranged wherever necessary to make them comparable.


Mar 31, 2013

1.1 Bank of Baroda has assigned and transferred to International Asset Reconstruction Company Pvt. Ltd. (IARC) the outstanding loan together with all underlying security, interest thereto and all Bank of Baroda''s rights, title and interest in all agreements, deeds, documents in relation to or in connection with the facilities. However, during the year the Company has fnalized One Time Settlement (OTS) with IARC and payment in terms of this OTS have been effected. Consequent to above, the company has taken credit of waiver of interest amounting to Rs. 6,026,832 and which have been treated as Extra – Ordinary Items in the proft and loss account.

NOTE 2

Contingent Liabilities :

a. The claims not acknowledged by the Company are as follows :

(Amount in Rs. )

Name of the Statute 2012 - 13 2011 - 12

Income Tax 167,185,892 170,316,161

Excise Duty - 370,110

Gujarat Sales Tax 3,606,085 3,606,085

Irrigation Department 259,205,087 130,733,149

Total 429,997,064 305,025,505



The Company is in appeal for these claims.

b. Guarantees / Counter Guarantees given to Banks, Financial Institutions and other Body Corporate Rs. 984,670,906/- (Rs. 953,876,000/-)

c. Sales Tax Liability of Rs. 310,344,140/- (Rs. 310,344,140/-).

Interest Free Sales Tax Deferment : The Company had a liability of Rs. 312,333,405/- (Rs. 312,333,405/-) payable from 30th April 2001 to 30th April 2014 to Sales Tax Department of Government of Maharashtra in respect of sales tax deferral scheme for its Methanol division. The Company has assigned the said liability to another company during the year 1999 - 2001. The assignee company has paid Rs. 1,989,265/- (Rs. 1,989,265/-) upto 31st March 2013 out ofRs. 308,496,760/- (Rs. 300,493,466/-) due upto 31st March 2013. Since the assignee company has failed in paying the sales tax dues, the assignor is responsible to pay the same. The company is registered under BIFR and no dues have been paid to the sales tax department.

d. Capital commitments Rs. 1,883,435/- (Rs. 2,475,200/-) NOTE 24

The company has not provided for :

a. Custom duty (net of provision) ofRs. 432,740/- (Rs. 432,740/-) and interest on custom duty as per revised working aggregating to Rs. 16,965,361/- (Rs. 15,778,813/-) till March 31, 2013.

b. Interest on late payment of custom duty Rs. 1,962,185/- (Rs. 1,962,185/-)

NOTE 3

The operation of company''s methanol division has been unviable and in turn forced the company to suspend its production activities since Sept.''1999. However, the company is making efforts to obtain alternative main feed stock for its methanol plant to make the operation viable. Considering the fact that laying of pipeline for supply of gas by Gas Authority of India Ltd. (GAIL) is completed, the company is hopeful to restart its plant soon. Accordingly the company continues to prepare accounts on the basis of "Going Concern Concept".

NOTE 4

As mentioned above the company had suspended its production activities since Sept.''1999, as a result of this the company has transferred some of the employees to other Division /Group Companies w.e.f. 30th October,1999. None of the transferred employees has reported to their duties and they have approached the Industrial Court. However, Company does not expect any fnancial liability, apart from their service beneft, which has been provided in the books of account.

NOTE 5

The company has obtained a valuation report from registered valuer in respect of its methanol division. On considering the same, the management is of the opinion that there is no loss on account of impairment of assets as per AS – 28 "Impairment of Assets" as issued by ICAI pertaining to this division.

NOTE 6

Segment Reporting :

In absence of any revenue from the regular activities of the company in the segments of construction and methanol manufacturing and sales, segment wise reporting of income and expenditure has not been reported.

Other Information

NOTE 7

Related Party Disclosure under Accounting Standard 18 (AS 18) :

A) List of related parties as identifed by the management are as under :

I) Enterprises that directly or indirectly control (through subsidiaries) or are controlled by or are under common control with the reporting enterprise :

Rama Capital and Fiscal Services Pvt. Ltd. - 100% Subsidiary Company

II) Associates, Joint Ventures of the reporting entity, investing party or venture in respect of which reporting enterprise is an associate or a joint venture :

Indo Us Investment Inc.

III) Individual owing, directly or indirectly an interest in voting power of reporting enterprise that gives them control or signifcant infuence over the enterprise and relative of any such individual:

None

IV) Key Management Personnel (KMP) and their relatives

Mr. H. D.Ramsinghani Chairman

Mr. D.N. Singh Technical Director

Mr. D. J. Ramsinghani Relative of Chairman

Mrs. N.H.Ramsinghani Relative of Chairman

V) Enterprises over which any person described in III and IV above is able to exercise signifcant infuence and with whom transactions have taken place during the year.

Rainbow Denim Ltd. Rama Phosphates Ltd. Rama Industries Ltd. Rainbow Agri Industries Ltd. Rama Enterprises

NOTE 8

Previous year fgures are given in brackets and have been regrouped / rearranged wherever necessary to make them comparable.


Mar 31, 2012

1.1 Share Application money is received from a promoter's group company in accordance with the revival Scheme submitted to the B.I.F.R. and the allotment of shares pursuant thereto is subject to and shall be in accordance with the directions of the said B.I.F.R.

2.1 Working Capital Loans are secured by hypothecation of raw materials, stock-in-process, finished goods, stores and spares and book debts and by way of second parri passu charge on fixed assets at Patalganga and personal guarantee of a erstwhile director,

2.2 Bank of Baroda has assigned and transferred to International Asset Reconstruction Company Pvt. Ltd. (IARC) the outstanding loan with all underlying security, interest thereto and all Bank of Baroda's rights, title and interest in all agreements, deeds, documents in relation to or in connection with the facilities. However, during the year the Company has finalized One Time Settlement (OTS) with IARC and payment in terms of this OTS have been effected. Consequent to above, the company has taken credit of waiver of interest amounting to Rs. 6,027 thousand and which has been treated as Extra - Ordinary Items in the profit and loss account. (Refer Note 23.1)

3.1 In the absence of information from suppliers of their status as defined under "Micro, Small and Medium Enterprises Development Act, 2006" amount overdue and interest payable thereon, if any, cannot be quantified.

4.1 a No remuneration is paid to Whole Time ( Technical) Director during the year under review u/s 198 of the Companies Act, 1956.

b No commission is payable to Directors hence computation of net profit u/s 349 of the Companies Act, 1956 is not applicable

5.1 Bank of Baroda has assigned and transferred to International Asset Reconstruction Company Pvt. Ltd. (IARC) the outstanding loan together with all underlying security, interest thereto and all Bank of Baroda's rights, title and interest in all agreements, deeds, documents in relation to or in connection with the facilities. However, during the year the Company has finalized One Time Settlement (OTS) with IARC and payment in terms of this OTS have been effected. Consequent to above, the company has taken credit of waiver of interest amounting to Rs. 6,027 thousand and which have been treated as Extra - Ordinary Items in the profit and loss account.(Refer Note 6.2)

Note 6

Contingent Liabilities :

a. The claims not acknowledged by the Company are as follows :

(Rs. in Thousand)

Name of the Statute 2011 - 12 2010 - 11

Income Tax 1,70,316 1,72,402

Excise Duty 370 436

Gujarat Sales Tax 3,606 3,606

Irrigation Department 1,30,733 -

Total 3,05,0251 1,76,444

The Company is in appeal for these claims.

b. Guarantees / Counter Guarantees given to Banks, Financial Institutions and other Body Corporate Rs. 9,53,876 thousand (Rs. 9,53,876 thousand)

c. Sales Tax Liability of Rs. 3,10,344 thousand(Rs. 3,10,344 thousand).

Interest Free Sales Tax Deferment :

The Company had a liability of Rs. 3,12,333 thousand (Rs. 3,12,333 thousand) payable from 30th April 2001 to 30th April 2014 to Sales Tax Department of Government of Maharashtra in respect of sales tax deferral scheme for its Methanol division. The Company has assigned the said liability to another company during the

year 1999 - 2001. The assignee company has paid Rs. 1,989 thousand (Rs. 1,989 thousand) upto 31st March 2012 out of Rs. 3,00,493 thousand (Rs. 2,85,496 thousand) due upto 31st March 2012. Since the assignee company has failed in paying the sales tax dues, the assignor is responsible to pay the same. The company is registered under BIFR and no dues have been paid to the sales tax department.

d. Capital commitments Rs. 2,475 thousand (Rs. 15,590 thousand)

Note 7

The company has not provided for :

a) Custom duty of Rs. 433 thousand (Rs. 433 thousand ) and interest on custom duty as per revised working aggregating to Rs. 15,779 thousand (Rs. 14,592 thousand) till March 31, 2012.

b) Interest on late payment of custom duty Rs. 1,962 thousand. (Rs. 1,962 thousand )

Note 8

The operation of company's methanol division has been unviable and in turn forced the company to suspend its production activities since Sept.'1999. However, the company is making efforts to obtain alternative main feed stock for its methanol plant to make the operation viable. Considering the fact that laying of pipeline for supply of gas by Gas Authority of India Ltd. (GAIL) is completed, the company is hopeful to restart its plant soon. Accordingly the company continues to prepare accounts on the basis of "Going Concern Concept".

Note 9

As mentioned above the company had suspended its production activities since Sept.'1999, as a result of this the company has transferred some of the employees to other Division /Group Companies w.e.f. 30th October,1999. None of the transferred employees has reported to their duties and they have approached the Industrial Court. However, Company does not expect any financial liability, apart from their service benefit, which has been provided in the books of account.

Note 10

The company has obtained a valuation report from registered valuer in respect of its methanol division. On considering the same, the management is of the opinion that there is no loss on account of impairment of assets as per AS - 28 "Impairment of Assets" as issued by ICAI pertaining to this division.

Note 11

Segment Reporting:

In absence of any revenue from the regular activities of the company in the segments of construction and methanol manufacturing and sales, segment wise reporting of income and expenditure has not been reported.

Other Information

Note 12

Related Party Disclosure under Accounting Standard 18 (AS 18) :

A) List of related parties as identified by the management are as under :

I) Enterprises that directly or indirectly control (through subsidiaries) or are controlled by or are under common control with the reporting enterprise :

Rama Capital and Fiscal Services Pvt. Ltd.

II) Associates, Joint Ventures of the reporting entity, investing party or venture in respect of which reporting enterprise is an associate or a joint venture :

Indo Us Investment Inc.

III) Individual owing, directly or indirectly an interest in voting power of reporting enterprise that gives them control or significant influence over the enterprise,and relative of any such individual :

None

IV) Key Management Personnel (KMP) and their relatives

Mr. H. D.Ramsinghani Chairman

Mr. D.N. Singh Technical Director

Mr. D. J. Ramsinghani Relative of Chairman

Mrs. Lajwanti D Ramsinghani Relative of Chairman

Mrs. Nilanjana H Ramsinghani Relative of Chairman

Ms. Pooja D. Ramsinghani Relative of Chairman

V) Enterprises over which any person described in III and IV is able to exercise significant influence : Rama Phosphates Ltd.

Rainbow Denim Ltd.

Rama Industries Ltd.

Rainbow Agri Industries Ltd.

Nova Gelicon Pvt. Ltd.

Bluelagoon Investment Pvt. Ltd.

Jupiter Corporate Services Pvt. Ltd.

Integrated Port Services (I) Ltd.

Replica Investment and Estates Ltd.

Rama Enterprise

Note 13

Deferred Tax Liability :

In accordance with the provisions of Accounting Standard (AS22) issued by The Institute of Chartered Accountants of India pertaining to accounting of taxes on income, in view of the company not expecting any taxable profits in near future, no deferred tax asset is recognized. The details of the same are as under :

Note 14

Previous year figures are given in brackets and have been regrouped / rearranged wherever necessary to make them Comparable.


Mar 31, 2010

1. Contingent Liabilities:

a. Income Tax and Excise Duty claims not acknowledged by the Company Rs. 1,69,705 thousands (R.s. 25.405 thousands) The Company is in appeal for these claims.

b. Guarantees / Counter Guarantees given to Banks, Financial Institutions and other Body Corporate Rs. 953.876 thousands (Rs.1,096.876 thousands )

c. Sales Tax Liability of Rs. 310.344 thousands (Rs. 310,344 thousands) (Refer Note No. 2)

d. Capital commitments Rs. 17,075 thousands ( Rs. 22,489 thousands)

2. Interest Free Sales Tax Deferment:

The Company had a liability of Rs.312.333 thousands payable from 30lh April 2001 to 30" April 2014 to Sales Tax Department of Government of Maharashtra in respect of sales lax deferral scheme for its Methanol division. The Company has assigned the said liability to another company during the year 1999 - 2001. The assignee company has paid Rs. 1.989 thousands (Rs. 1,989 thousands) upto 3 lM March 2010 out of Rs. 264,615 thousands (Rs. 237.552 thousands) due upto 31" March 2010. Since the assignee company has failed in paying the sales lax dues, the assignor is responsible to pay the same. The company is registered under BIFR and no dues have been paid to the sales tax department.

3. During the year the Company has made provision for diminution in long term investments in its wholly owned subsidiary company. However dividend of Rs 31,500 thousands (Rs. 29,250 thousands) upto 31.03.2010 on investment in Cumulative Convertible Preference Shares of subsidiary company has not been received by the company since the subsidiary company has not paid any dividend as the net worth of the subsidiary company has been completely eroded.

4. The outstanding balances of debtors, creditors, secured loans and advances from customers, security and other deposits and balances with excise authorities are subject to confirmation and reconciliation.

5 In the absence of information from suppliers of their status as defined under "Micro, Small and Medium Enterprises Development Act, 2006", amount overdue and interest payable thereon, if any, cannot be quantified.

6. The Company is in the process of appointing a whole lime Company Secretary as required under Section 383A of the Companies Act. 1956.

7. The company has not provided for :

a. Interest of Rs. 24,233 thousands (Rs. 16,940 thousands) on working capital loans from banks till March 31,2010.

b. Interest on custom duty aggregating to Rs. 5,731 thousands (Rs. 5,042 thousands) till March 31. 2010.

8. The operation of companys methanol division has been unviable and in turn forced the company to suspend its production activities since Sept." 1999. However, the company is making efforts to obtain alternative main feed slock for its methanol plant to make the operation viable. Considering the fact that laying of pipeline for supply of gas by Gas Authority of India Ltd. (GAIL) is completed, the company is hopeful to restart its plant soon. Accordingly the company continues to prepare accounts on the basis of "Going Concern Concept".

9. As mentioned above the company had suspended its production activities since Sept. 1999. as a result of this the company has transferred some of the employees to other Division /Group Companies w.e.f. 30" October.1999. None of the transferred employees has reported to their duties and they have approached the Industrial Court. However, Company does not expect any financial liability, apart from their service benefit, which has been provided in the books of account.

10. In the absence of certainty about the applicability of the Service Tax and Maharashtra Value Added Tax on construction activities no provision has been made in the accounts for the same.

11. During the year, the company is supposed to pay capital gain tax on account of conversion of its capital asset (land) into stock in trade, which happened in the earlier year. However as the company is having a business loss for the current year, the same capital gain is knocked off towards it. Accordingly the provision for taxation on such capital gain has not been made. 12. The disclosures required under Accounting Standard 15 "Employees Benefits" are given below : A Defined Contribution Plan Provident Fund The company has recognized the following amount in the profit and loss account for the year

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

12. The company has obtained a valuation report from registered valuer in respect of its methanol division. On considering the same, the management is of the opinion that there is no loss on account of impairment of assets as per AS - 28 "Impairment of Assets" as issued by ICAI pertaining to this division.

13. Segment Reporting:

The Company is only the primary segment which is its business segment with no secondary segment Information about Primary Business Segment:

14. Related Party Disclosure :

a. List of Related Parties and Relationships (As Certified by the Management)

Party Relation

i Rama Capital & Fiscal Services Pvt Ltd. 100% Subsidiary

ii Rainbow Denim Ltd)

Rama Phosphates Ltd> Associates

Rama Industries Ltd.

iii Indo-Us Investment Inc Holding more than 20% equity in Rama Petrochemicals Ltd.

iv Key Management Personnel

Mr H D Ramsinghani Chairman

Mr D N Singh . Technical Director

v Exercise of significant control/ influence

Bluelagoon Investment Pvt Ltd.

Relatives of Key Management

crsonnel holds more than 20%

Rama Enterprises share holding

vi Mr. D. J. Ramsinghani Relative of Key Management Person

15. Earning Per Share (EPS)

16. Deferred tax Liability

The Companys Methanol Unit is closed and company is yet to finalize the scheme of revival of the unit in consultation with operating agency appointed by B1FR. In view of this, the company is not expecting any taxable

17. a. No remuneration is paid to Whole Time Director dining the year under review u/s 198 of the Companies Act. 1956. b. No commission is payable to Directors hence computation of net profit u/s 349 of Companies Act, 1956 is not applicable.

18. Information pursuant to the provisions of paragraphs (3) and (4) of pait II of Schedule VI of the Companies Act. 1956. a. Manufactured Goods : Methanol

19. Value of Imported / Indigenous Raw Material, Stores and Spares Consumed

20. C.I.F Value of Imports :

21. Earnings in Foreign Currency :

22. Previous year figures are given in brackets and have been regrouped rearranged wherever necessary to make their comparable,

 
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