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Notes to Accounts of Rama Phosphates Ltd.

Mar 31, 2015

1 Disclosure as required by Accounting Standard AS-18 on Related Parties.

a Names of Related Parties and Related Party Relationship

i Enterprise that directly or indirectly through one or more intermediaries, control, or are controlled by, or under common control with the reporting enterprise.

NRI Investors Inc.

ii Associates and Joint ventures of the reporting enterprise and the investing party or venture in respect of which the reporting enterprise is an associate or joint venture.

Nil

iii Individuals owning, directly or indirectly, an interest in the voting power of the reporting enterprise that gives them control or significant influence over the enterprise, and relatives of any such individual.

Nil

iv Key Managerial Person (KMP) and their Relatives with whom transactions have taken place during the year.

D. J. Ramsinghani - Chairman and Managing Director

H. D. Ramsinghani - Director

J. K. Parakh - CFO

Pooja D. Ramsinghani - Relative of Director

Kiran P. Jain - Company Secretary

Nilanjana H. Ramsinghani - Director

v Enterprises over which any person described in iii & iv above is able to exercise significant influence, and with whom transactions have taken place during the year.

Rama Industries Limited

Rama Capital & Fiscals Service Private Limited

Rama Petrochemicals Limited

Rainbow Denim Limited

Rainbow Agri Industries Limited

Nova Gelicon Private Limited

2 SEGMENT REPORTING :

a Identification of Segments

The company has disclosed Business Segments as its primary segments. Reporting segments have been identified as Fertilizers & Chemicals and Oil, taking into account the nature of product, the different risk and returns, the organizational structure and the internal reporting system.

The company caters mainly to the need of domestic market. The direct export turnover is Nil during the year. As such there are no reportable geographical segments.

Segment revenue, Segment results, Segment Assets and Segment Liabilities include the respective amounts identifiable to each of the segments as also amounts allocated on a reasonable basis to the respective segments.

3 Pursuant to Section 135 of the Companies Act, 2013 and (Corporate Social Responsibility Policy) Rules, 2014, company has to spend CSR expenditure of Rs. 46.74 Lacs in the current financial year under review, but company could not spend money due to huge losses and also liquidity problem arised due to delay in release in subsidy receivable from Government. Gross amount required to be spent by the company during the year is Rs. 46.74 Lacs which remains unspent.

4 PREVIOUS YEAR FIGURES :

Previous year figures have been regrouped/rearranged, wherever necessary.


Mar 31, 2014

1 Details of the 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 only one class of Equity shares having a par value of Rs. 10/-. 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 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.

2 Terms and Conditions of Borrowings

(i) Term Loan of Rs. 236.12 lacs (Previous year Rs. 299.08 lacs) including current maturity from bank is secured by Exclusive and specific charge on the assets acquired for new GSSP plant at Udaipur. The loan is further collaterally secured with first pari-passu charge along with working capital lender over movable and immovable property situated at Fertiliser division Indore, Udaipur and first pari-passu charges along with working capital and other term lenders over movable and immovable property situated at Pune. The said loan is further secured by second charge alongwith working capital lenders on pari-passu basis over movable and immovable property situated at Oil division Indore. The above loan is further secured along with working capital lenders by first pari-passu charge on FDR of Rs. 98.04 Lacs along with equitable mortgage of the property situated at Mumbai owned by another company and guaranteed by personal guarantee of a Director, Promoters and corporate guarantee by another company. The Interest on the loan is payable @13.95% p.a (Previous year 14.50% p.a.) as at the year end. The Loan is repayable in 24 quarterly installments starting from May-2012 (Read note no. 7 d).

(ii) Vehicle loans of Rs. 10.82 Lacs (Previous year Rs. 16.47 Lacs) including current maturity from Bank are secured by way of Hypothecation of vehicles. Interest on the loans are payable @ 10.50% p.a. (Previous year 10.50%) as at year end. Loans are repayable in 36 monthly installments starting from February-2013.

(iii) Term Loans of Rs. 252.38 lacs (Previous year Rs. 283.62 lacs) from others are secured by way of first pari-passu charge along with working capital and term loan lenders from bank over movable and immovable properties situated at Pune. Said term loans are further secured by way of first pari-passu charge over immovable property situated at Indore Oil Division. The Interest on the loan is payable @ 9% p.a. (Previous year 9%) as at year end. The Loan is repayable in 36 quarterly installments starting from April-2009.

3 Terms and Conditions of Borrowings

Working Capital facilities from Banks are secured against hypothecation of raw material, stock in process, finished goods, stores and spares, Books debts, Subsidy and first pari-passu charge along with Bank Term lender over movable and immovable properties of fertiliser division situated at Indore, Udaipur and first pari-passu charges with other Term lenders over movable and immovable properties situated at Pune. This is further secured by second charge alongwith bank Term loan lender, on pari-passu basis over movable and immovable properties of Oil division situated at Indore.

The above working capital facilities are further secured along with bank Term lender by first pari-passu on FDR of Rs. 98.04 lacs along with equitable mortgage of the property situated at Mumbai owned by another Company and guaranteed by personal guarantee of a Director, Promoters and Corporate guarantee by another company. The working capital facility carries interest @ 13.45% on Rs. 3,171.12 lacs (Previous year Interest @ 14.25% on Rs. 3,329.30 lacs) @ 14.50% on Rs. 869.46 lacs (Previous year Interest @ 13.45% on Rs. 860.25 lacs), and @15.50% on Rs. 236.29 lacs (Previous year Interest @ 15.75% on Rs. 741.15 lacs).

4 Inventories are valued as under :

1 Raw materials, Work in Process and Packing materials :

at cost on First in First out (FIFO) basis or net realizable value whichever is lower.

Raw material & Work in Process are not written down below cost if the finished product in which they will be incorporated are expected to be sold at or above cost.

2 Finished goods :

at cost or net realisable value whichever is lower. The cost is computed on weighted average method and includes cost of materials, cost of conversion and other costs incurred in acquiring the inventory and bringing them to their present location and condition.

3 Stores & spares :

at Cost on FIFO basis.

5 RELATED PARTY DISCLOSURE : a Names of Related Parties and Related Party Relationship

i Enterprise that directly or indirectly through one or more intermediaries, control, or are controlled by, or under common control with the reporting enterprise.

NRI Investors Inc.

ii Associates and Joint ventures of the reporting enterprise and the investing party or venturer in respect of which the reporting enterprise is an associate or joint venture.

Nil

iii Individuals owning, directly or indirectly, an interest in the voting power of the reporting enterprise that gives them control or significant influence over the enterprise, and relatives of any such individual.

Nil

iv Key Managerial Person (KMP) and their Relatives with whom transactions have taken place during the year.

D. J. Ramsinghani - Chairman and Managing Director

H. D. Ramsinghani - Director

J. K. Parakh - CFO & Company Secretary

Pooja D. Ramsinghani - Relative of Director

Nilanjana H. Ramsinghani - Relative of Director

v Enterprises over which any person described in iii & iv above is able to exercise significant influence, and with whom transactions have taken place during the year.

Rama Industries Limited

Rama Capital & Fiscals Service Private Limited

Rama Petrochemicals Limited

Rainbow Denim Limited

Rainbow Agri Industries Limited

Nova Gelicon Private Limited

6 SEGMENT REPORTING :

a Identification of Segments

The company has disclosed Business Segments as its primary segments. Reporting segments have been identified as Fertilizers & Chemicals and Oil, taking into account the nature of product, the different risk and returns, the organizational structure and the internal reporting system.

The company caters mainly to the need of domestic market. The direct export turnover is Nil during the year. As such there are no reportable geographical segments.

Segment revenue, Segment results, Segment Assets and Segment Liabilities include the respective amounts identifiable to each of the segments as also amounts allocated on a reasonable basis to the respective segments.

b The Company has recognised Rs. 70.18 Lacs (Previous Year Rs. 57.52 Lacs) in the Statement of Profit and Loss for the year ended 31st March, 2014 under Defined Contribution Plans.

As at As at 31st March, 31st March, 2014 2013 Rs.In Lacs Rs.In Lacs

7 CONTINGENT LIABILITY AND COMMITMENTS a Contingent Liabilities not provided for

i Royalty on rock phosphates 116.09 116.09 ii Contingent liability due to 806.39 602.78 reduction in brought forward losses on account of completed assessments having a bearing on current taxable income

iii Custom duty, Excise duty, Demurrage, 485.33 538.52 Sales tax and others iv Wages 12.85 100.55

v Right to Recompense under 764.00 - Corporate Debt Restructure to lenders b Claims against the company not acknowledged as debt

i Electricity duty 43.38 43.38 ii Railway Claim 127.18 101.85

c Guarantees

Amount of Letters of Credit and Bank 177.87 187.45 Guarantee issued by banks

d Commitments

Estimated Amount of Capital Contracts Pending to be executed (Net of Advances) 6.48 54.76

8 No amount is paid/payable by the Company under Section 441 A of the Companies Act, 1956 (cess on turnover) since the rules specifying the manner in which the cess shall be paid has not been notified yet by the Central Government.

9 PREVIOUS YEAR FIGURES :

Previous year figures have been regrouped/rearranged, wherever necessary.


Mar 31, 2013

1 SEGMENT REPORTING :

a Identifcation of Segments

The company has disclosed Business Segments as its primary segments. Reporting segments have been identifed as Fertilizers & Chemicals and Oil, taking into account the nature of product, the different risk and returns, the organizational structure and the internal reporting system.

The company caters mainly to the need of domestic market. The direct export turnover is Nil during the year. As such there are no reportable geographical segments.

Segment revenue, Segment results, Segment Assets and Segment Liabilities include the respective amounts identifable to each of the segments as also amounts allocated on a reasonable basis to the respective segments.

As at As at 31st March, 2013 31st March, 2012 In Lacs In Lacs

2 CONTINGENT LIABILITY AND COMMITMENTS a Contingent Liabilities not provided for

i Royalty & environment cess on rock phosphates. 116.09 522.60

ii Contingent liability due to reduction in brought forward losses on account of 602.78 602.78 completed assessments having a bearing on current taxable income.

iii Custom duty, Excise duty, Demurrage, Sales tax and others 538.52 1,140.88

iv Wages 100.55 93.97

b Claims against the company not acknowledged as debt

i Electricity duty 43.38 44.23

ii Railway Claim 101.85 73.08

c Guarantees

Amount of Letters of Credit and Bank Guarantee issued by banks. 187.45 418.73

d Commitments

Estimated Amount of Capital Contracts Pending to be executed 54.76 51.14

3 No amount is paid/payable by the Company under Section 441 A of the Companies Act, 1956 (cess on turnover) since the rules specifying the manner in which the cess shall be paid has not been notifed yet by the Central Government.

4 PREVIOUS YEAR FIGURES

Previous year fgures have been regrouped/rearranged, wherever necessary.


Mar 31, 2012

A Details of the 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 only one class of Equity shares having a par value of Rs. 10/-. Each holder of equity shares is entitled to one vote per share. 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.

b Terms and Conditions of Borrowings

Term Loan from bank is secured by Exclusive and specific charge on the assets acquired under the loan for new GSSP plant at Udaipur. The loan is further collaterally secured with first pari passu charge along with capital lender over immovable property situated at Fertiliser division Indore, Udaipur and pari passu charges along with working capital and other term lenders over immovable property situated at Pune. The said loan is further secured by second charge on pari passu basis over immovable property situated at Oil division Indore. The above loan is further secured along with working capital lenders by first pari passu charge on FDR of Rs. 84.25 Lacs and pledging of 90,23,539 no. equity shares of Rs. 10/- each of the company along with equitable mortgage of the property situated at Mumbai owned by another company and guaranteed by personal guarantee of a Director. The Interest on the loan is payable @15% p.a. The Loan is repayable in 24 quarterly installments starting from May-2012 (Read note no. 7 b).

Term Loan from others are secured by way of first pari passu charge along with working capital bankers and term loan from bank over immovable properties situated at Pune plant. Said term loan are further secured by way of first pari passu charge over immovable property situated at Indore Oil Division. The Interest on the loan is payable @ 9% p.a. The Loan is repayable in 36 quarterly installments.

c Terms and Conditions of Borrowings

Working Capital facilities from Banks are secured against hypothecation of raw material, stock in process, finished goods, stores and spares, Book debts, Subsidy and first pari passu charge along with Bank term lender over immovable properties of fertiliser division situated at Indore, Udaipur and first pari passu charges with other term lenders over immovable properties situated at Pune. This is further secured by second charge pari passu basis over immovable properties of Oil division situated at Indore.

The above working capital facilities are further secured along with bank term lender by first pari passu on FDR of Rs. 84.25 lacs and pledging of 90,23,539 no. equity share of Rs. 10/- each of the company along with equitable mortgage of the property situated at Mumbai owned by another Company and guaranteed by personal guarantee of a Director. The working capital facilities carry interest @ 14.75% to 17% p.a.

d Inventories are valued as under :

1 Raw materials, Work in Process and Packing materials :

at cost on First in First out (FIFO) basis or net realizable value whichever is lower.

Raw material & Work in Process are not written down below cost if the finished product in which they will be incorporated are expected at or above cost.

2 Finished goods :

at cost or net realisable value whichever is lower. The cost is computed on weighted average method and includes cost of materials, cost of conversion and other costs incurred in acquiring the inventory and bringing them to their present location and condition.

3 Stores & spares :

at Cost on FIFO basis.

1 SEGMENT REPORTING : a Identification of Segments

The company has disclosed Business Segments as its primary segments. Reporting segments have been identified as Fertilizers & Chemicals and Oil, taking into account the nature of product, the different risk and returns, the organizational structure and the internal reporting system.

The company caters mainly to the need of domestic market. The direct export turnover is Nil during the year. As such there are no reportable geographical segments.

Segment revenue, Segment results, Segment Assets and Segment Liabilities include the respective amounts identifiable to each of the segments as also amounts allocated on a reasonable basis to the respective segments.

As at As at 31st March, 2012 31st March, 2011 Rs.In Lacs Rs.In Lacs

2 CONTINGENT LIABILITY AND COMMITMENTS

a Contingent Liabilities not provided for

i Amount of Letters of Credit and Bank Guarantee issued by banks. 418.73 505.48

ii Royalty & environment cess on rock phosphates. 522.60 522.60

iii Contingent liability due to reduction in brought forward losses on account of completed 602.78 112.90 assessments having a bearing on current taxable income.

iv Custom duty, Excise duty, Demurrage, Sales tax and others 1,140.88 1,248.98

v Wages 93.97 32.32

vi Electricity duty 44.23 94.23

vii Railway Claim 73.08 -

b Commitments

Estimated Amount of Capital Contracts Pending to be executed 51.14 525.55

3 PREVIOUS YEAR FIGURES

During the year ended 31-03-2012, the Revised Schedule VI notified under the Companies Act 1956, is applicable to the Company. The Company has reclassified and regrouped the Previous Year Figures to confirms to the current classification.

 
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