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Notes to Accounts of Ramco Industries Ltd.

Mar 31, 2015

1. NOTES ON ACCOUNTS: As at As at 31.03.2015 31.03.2014 Rs. in lakhs Rs. in lakhs

1. I. Contingent Liabilities and commitments

a. Contingent Liabilities

i. Claims against the Company / disputed liabilities not acknowledged as debts 4,845.42 2,000.44 (Refer to notes II to VI below)

ii. Guarantees given to Banks to avail loan facilities by Group Companies :

a. Ramco System Ltd 3,550.00 6,550.00

b. Sri Harini Textiles Ltd 3.629.00 3,629.00

b. Commitments

i. Guarantees given by Bankers on behalf of Company 374.09 344.05

ii. Capital Contracts:

a. Estimated amount of contracts remaining to be executed on capital account and not provided for: 914.06 438.41

b. Unexpired Letters of Credit for purchase of Capital goods and raw materials 58.42 181.45

II. Income Tax Assessment has been completed up to the accounting year ended 31st March, 2011 i.e. Assessment Year 2011-12 and demand raised by the Income Tax department amounting to Rs. 256.64 lakhs. With this, the total demand received up to the Assessment year 2011-12 is Rs. 3,971.06 lakhs (previous year Rs. 1,751.40 lakhs). The total demand has been disputed by the company and the company has preferred appeals before appellate authorities in respect of various disallowances in assessments and the appeals are pending. In the opinion of the Management, there may not be any tax liability with regard to the said disallowances. Based on the nature of claim disputed, no provision has been considered necessary.

III. Sales Tax and Central Excise demands amounting to Rs. 494.60 lakhs (Previous year Rs. 249.04 lakhs) have been disputed by the Company and necessary appeals have been filed. Based on the nature of claim disputed, no provision has been considered necessary.

IV. In respect of the electricity matters relating to our Textile Division, the Company has filed appeals / writ petition for Rs. 305.81 lakhs against various subject matter of the appeal and the same is pending with Tamilnadu Electricity Regulatory Commission (TNERC) / Honourable High Court / Honourable Supreme Court for resolution. The Company is confident of resolving the matter in its favour and hence no provision is made in the books of accounts.

V The Company had received two letters from Tamilnadu Generation and Distribution Corporation Limited (TANGEDCO) in the year 2000 and 2003 respectively claiming an amount totalling to Rs. 27.41 lakhs towards alleged violation of the terms and conditions of supply of electricity. The Company has deposited a sum of Rs. 16.87 lakhs on various dates under protest and filed writ petition before the Honourable High Court of Madras in the year 2003 and the same has been admitted. During the year, there was no development in the matter. The management is confident of resolving the matter in its favour and hence no provision is made in the books of account.

VI The Company had received a letter dated 04.11.2009 from Tamilnadu Generation and Distribution Corporation Limited (TANGEDCO) withholding an amount of Rs. 46.54 lakhs pending resolution of Power Tariff Concession applicability to fibre cement sheet plant at Arakonam. This amount was withheld against our dues towards power sold to Tamil Nadu Electricity Board covered under the power purchase agreement. The Company preferred an appeal against TANGEDCO in the year 2009 and the matter is pending with the Honourable High Court of Madras. During the year, there was no development in the matter. The management is confident of collecting the withheld amount and no provision is made in the books of account.

VII Under Tamil Nadu Electricity Regulatory Commission (Renewable Energy Purchase Obligations) Regulations 2010, consumers owning grid connected captive power generating plants and open access consumers with a sanctioned demand of more than 2 MVA are obligated to consume a minimum of 0.5% of their energy requirements from solar sources. The non-complainants are required to purchase Renewable Energy Certificates (REC) from markets @ 1 REC per 1,000 units of shortage or deposit an equivalent amount in a separate designated fund. Even though the Company is consuming wind energy generated from its own wind farms, it has been excluded for reckoning the obligatory consumption, since the Company has wheeling and banking arrangement with TNEB. Aggrieved, the Company including other affected producers have approached the Honourable Madras High Court and obtained an interim stay against the implementation of the said regulation.

VIII The Company had put up a plant in Silvassa in The Union Territory of Daman, Diu, Dadra and Nagar Haveli in the year 1998 and availed VAT and CST exemption for the period of 15 years ending on March 2013 based on a certificate of exemption given by appropriate authority in exercise of powers conferred on it by relevant provision of the CST Act, 1956. This power of granting exemption was withdrawn with retrospective effect by an amendment in Finance Act 2002 and the sales tax department has followed it up by issuing a circular for compulsory production of concessional sales tax forms for availing CST exemption. The differential sales tax liability for the year 1998 to the year 2002 works out to Rs. 37 Crores. However, the Company was not in receipt of any demand from the appropriate authority. Aggrieved by the department circular and as an additional precaution, the Company had filed an appeal with Bombay High Court and the Bombay High Court has quashed the circular issued by the Commercial tax department, Silvassa, The Union Territory of Daman, Diu, Dadra and Nagar Haveli thereby allowing continuance of CST exemption even after amendment of relevant provision of CST Act, 1956 by the Finance Act, 2002. But the department of Commercial Tax, Silvassa has preferred an appeal against the Bombay High Court order before the Honourable Supreme Court and the adjudication and the court hearing is in process pending final disposal by the Honourable Supreme Court.

Based on the decision of Bombay High Court and interpretations of other relevant provisions, the Company has been legally advised that there will not be any demand likely to be raised or if the demand is raised is likely to be deleted or substantially reduced and accordingly no provision is considered necessary.

IX The Company received a notice from the Department of Revenue Intelligence (DRI) for an amount of Rs. 32.4 lakhs excluding interest and penalty pertaining to the year 2009-10 for short payment of customs duty to the extent of utilization of DEPB Scrips purchased in the open market by the Company and which were originally obtained by the ultimate export firms fraudulently as alleged by the DRI. The Company had denied the allegations made in the notice in so far as they relate to the Company''s role is concerned and also the obligation to pay the duty demanded in the notice vide its letter dated August 4, 2014. There has been no development further to our letter dated August 4, 2014. The Management is confident of resolving the matter in favour of the Company and hence no provision is considered necessary.

X The Company received a notice from Gangaikondan Sub-Registrar office demanding a short payment of stamp duty of Rs. 2.57 lakhs in connection with registration of Company''s land at Gangaikondan, Tirunelveli district, Tamil Nadu and have appropriately recorded the deficiency of the stamp duty payment in the encumbrance certificate of the Land records maintained by Sub-Registrar office. The Company has represented the matter with the Sub-Registrar citing payment of stamp duty correctly as per the guide line rate prevailing then. The Company is confident of resolving the matter in its favour and hence no provision is considered necessary.

2. The Company had announced Voluntary Retirement Scheme (VRS) for the employees of Arakonam Manufacturing Division during the year under review. A sum of Rs. 336.34 (Previous year Rs. nil ) has been paid during the year and debited to the Profit and Loss Statement under the head "Employee Benefit Expense" and shown under "Exceptional item" in the Profit and Loss Statement.

3. The Exceptional items in the Statement of Profit and Loss Account is net off the following:-

- Profit on Sale of Investment in Shares – Rs. 1,349.91 lakhs (Previous Year Rs. Nil)

- Expenditure on Voluntary Retirement Scheme – Rs. 336.64 lakhs (Previous Year Rs. Nil)

4. The Company has entered into an arrangement to enter into an agreement with the group company M/s. The Ramco Cements Limited to share the cost of development of the facilities and accordingly debited Rs. 1.94 crores during the year (previous year Rs. Nil) and shown as a deduction from the gross block of its fixed assets on provisional basis. Final adjustments, if any, in this regard will be accounted for as and when the costs are determined.

5. The Government of West Bengal enacted "The West Bengal Tax on Entry of goods into Local Areas Act, 2012" and writ petitions were filed by others challenging the validity of the said Act. The Calcutta High Court held that the said Act was unconstitutional. Aggrieved, the Government has preferred an appeal before the Division Bench and obtained an interim direction to continue the Assessment proceedings only. Though the company has not received any demand, it has filed a petition to join in the case.

6. Trade receivables include due from Overseas Subsidiary Company viz., Sri Ramco Lanka (Private) Limited, Sri Lanka to the extent of Rs. 194.61 lakhs (previous year Rs. 191.68 lakhs) and Sri Ramco Roofing Lanka (Private) Limited (wholly owned subsidiary of Sri Ramco Lanka (Private) Limited) to the extent of Rs. 175.45 lakhs (previous year Rs. 177.28 lakhs). Maximum amount outstanding during the year from Sri Ramco Lanka (Private) Ltd is Rs. 324.84 lakhs (previous year Rs. 1,109.32 lakhs) and Sri Ramco Roofing Lanka (Private) Limited is Rs. 564.11 lakhs (previous year Rs. 1,016.32 lakhs)

7. Pursuant to the notification of Schedule II to the Companies Act, 2013 for computation of depreciation with effect from 1st April 2014, the Company revised the useful life of its assets to align the useful life with those specified in Schedule II of the Act. Accordingly, the carrying values of the fixed assets which has completed their useful life as on 1st April, 2014 have been charged off against the General reserve amounting to Rs. 191.01 Lakhs after netting off deferred tax of Rs. 64.93 lakhs. Due to this change in accounting policy, the depreciation for the year ended 31st March, 2015 is lower by Rs. 3,041.17 lakhs when compared to the calculation of depreciation under the Companies Act, 1956.

8. The Company''s Shares are listed in Madras Stock Exchange Ltd*, National Stock Exchange of India Ltd and BSE Ltd and the listing fees in respect National Stock Exchange and BSE for the Financial year 2015-2016 have been paid.

* Listing in MSE had been delisted as MSE ceased to be a stock exchange with effect from 14th May, 2015.

9. a. The breakup of Secured long-term borrowings are as under:

Rs. 6,973.82 lakhs (Previous year Rs. 15,432.27) is secured by pari-passu first charge on the fixed assets and pari-passu second charge on the current assets of the company.

Rs. 3,933.63 lakhs (Previous year Rs. Nil) is secured by pari-passu first charge on movable fixed assets of the company.

b. The breakup of Secured short-term borrowings from banks are as under:

Rs. 11,709.64 lakhs (previous year Rs. 9,324.35 Lakhs) secured by pari-passu first charge on stocks of raw materials, work-in-progress, stores, spares and finished goods and book debts and second charge on fixed assets.

Rs. 9,005.60 lakhs (previous year Rs. 7,999.60 Lakhs) secured by pari-passu first charge on stocks of raw materials, work-in-progress, stores, spares and finished goods and book debts.

10. The Company is eligible for Incentive under the "West Bengal Incentive Scheme 2000" in respect of its Fibre Cement Plant and Clinker Grinding Unit at Kharagpur in the State of West Bengal. No amount was received as incentive during the year under review . (Previous year Rs. 99.02 lakhs)

The company is eligible for incentives under the "Bihar Industrial Incentive Policy 2006" in respect of its Fibre Cement Plant at Bihiya in the State of Bihar. During the year under review,

- A sum of Rs. 559.79 lakhs (previous year Rs. 501.66 lakhs) accrued as Industrial Promotion Assistance is credited to Profit and Loss account.

– A sum of Rs. 15 lakhs (Previous year Rs. 100 lakhs on investment in Plant and Machinery) received as Capital Subsidy on Investment in Land and credited to Capital Reserve Account.

- No amount was received as Incentive grant for investment in Diesel Generating Set (Previous year Rs. 19.31 lakhs)

11. Out of units of 255.64 Lakhs units (PY 264.95 Lakhs units) generated net of wheeling and banking at wind farms –

a) 70.32 Lakhs units (Previous year 74.60 Lakhs units) were sold to concerned State Electricity Board for Rs. 229.29 Lakhs (Previous year Rs. 257.41 Lakhs), shown under "Income from Wind Power generation".

b) 177.38 Lakhs units (Previous year 178.36 Lakhs units) were consumed at our plants. The monetary value of such units for Rs. 1,100.95 Lakhs (Previous year Rs. 1,069.92 Lakhs) is not recognised as it is inter-divisional transfer.

c) 7.94 lakhs units (Previous year 11.99 lakhs units) remain unadjusted and eligible for adjustment in the subsequent periods and its monetary value of Rs. 31.06 lakhs (PY: Rs. 53.01 lakhs) has been included in "Other Current Assets".

12. The Company has taxable income for the year computed under section 115JB of the Income Tax Act, 1961 (Minimum Alternate Tax). Accordingly, provision for income tax has been made for the year.

13. Previous year''s figures have been regrouped / restated wherever necessary so as to make them comparable with that of the current year.

14. Figures have been rounded off in Lakhs with two decimal.


Mar 31, 2014

As at As at 31.03.2014 31.03.2013 Rs. in lakhs Rs. in lakhs

1. I. Contingent Liabilities and commitments not provided for

A. Claims against the Company / disputed liabilities not acknowledged as debts

a. In respect of Joint ventures NIL NIL

b. In respect of others 2,000.44 2,927.84

B. Guarantees

Guarantees to Banks/Financial institutions against credit facilities extended to third parties

a. In respect of Joint ventures NIL NIL

b. In respect of others 10,179.00 10,949.00

II. Commitments

A. Estimated amount of contracts remaining to be executed on capital account and not provided for:

a. In respect of Joint ventures NIL NIL

b. In respect of others 438.41 1,739.84

B. Other Commitments

a. Letters of Credit 181.45 NIL

b. Bank Guarantees 344.05 259.01

III. Tamilnadu Generation and Distribution Corporation Limited (TANGEDCO) has raised the demand towards alleged violation of the terms and conditions of supply of electricity for Rs. 27.41 lakhs. The Company has deposited a sum of Rs. 16.87 lakhs under protest and filed writ petition before the Honourable High Court of Madras and the same has been admitted. The management is confident of resolving the matter in its favour and hence no provision is made in the books of account.

IV TANGEDCO has withheld an amount of Rs. 46.54 lakhs pending resolution of Power Tariff Concession applicability to fibre cement sheet plant at Arakkonam. This amount was withheld against our dues towards power sold to Tamil Nadu Electricity Board covered under the power purchase agreement. The Company preferred an appeal against TANGEDCO and the matter is pending with the Honourable High Court of Madras. The management is confident of collecting the withheld amount and no provision is made in the books of account

2. The Company has not utilized Short-term Loans for Long-term purposes.

3. Income Tax Assessment has been completed upto the Accounting Year 2010-2011 (i.e. Assessment Year 2011-12) and demands raised by the Income Tax Department amounting to Rs. 256.64 lakhs (upto the Assessment year 2010.11-Rs. 1,494.76 lakhs) which have been disputed by the Company and necessary appeals have been filed. Based on the nature of the claim disputed, no provision has been considered necessary.

4. Sales Tax and Central Excise demands amounting to Rs.1A9.Q4 lakhs (Previous year Rs. 46.94 lakhs) have been disputed by the Company and necessary appeals have been filed. Based on the nature of claim disputed, no provision has been considered necessary.

5. Trade receivables include due from Overseas Subsidiary Company viz., Sri Ramco Lanka (Private) Limited, Sri Lanka to the extent of Rs. 191.68 lakhs (Previous Year Rs.664.23 lakhs) and Sri Ramco Roofing Lanka (Private) Limited (wholly owned subsidiary of Sri Ramco Lanka (Private) Limited) to the extent of Rs.11.28 lakhs (Previous Year Rs. 474.11 lakhs). Maximum amount outstanding during the year from Sri Ramco Lanka (Private) Ltd is Rs.1,109.32 (Previous Year Rs. 664.23 lakhs) and Sri Ramco Roofing Lanka (Private) Limited is Rs. 1,016.32 (Previous Year Rs. A1AM lakhs)

6. The Company''s Shares are listed in Madras Stock Exchange Ltd, National Stock Exchange of India Ltd and BSE Ltd and the listing fees in respect of all the three exchanges for the Financial year 2014-2015 have been paid.

7. a. i. Long-term Loans of Rs. 15,432.27 lakhs borrowed from banks are secured by pari-passu first charge on the fixed assets and pari-passu second charge on current assets of the Company.

b. Short-term Loans of Rs. 9,324.35 lakhs borrowed from banks are secured by hypothecation of Stocks of raw materials, work-in- progress, stores, spares and finished goods and book debts and second charge on fixed assets.

c. i) External Commercial Borrowing Loan of USD 1.25 million amounting to Rs. 748.50 lakhs borrowed from DBS Bank Ltd.,

Singapore is secured by pari-passu first charge on the fixed assets and pari-passu second charge on current assets in favour of Security Trustee DBS Bank, Chennai.

As per requirements of Accounting Standard 11 (revised 2005 " The Effects of changes in Foreign Exchange Rates"), ECB loan has been valued at Rs. 59.88 per USD, as the closing rate on 31 /03/2014. This has resulted in a notional loss of Rs. 69.88 lakhs which has been capitalised as per Notifications dated 31 /03/2009 and 09th Aug 2012.

The premium on forward exchange contracts not intended for trading or speculative purpose is amortised as expense over the life of the contract, During the current year X 259.69 lakhs (Previous Year:Rs. 123.02 lakhs) has been amortised and the same is included in interest and finance charges.

12. The Company is eligible for Incentive under the "West Bengal Incentive Scheme 2000" in respect of its Fibre Cement Plant and Clinker Grinding unit at Kharagpur in the State of West Bengal. A sum of Rs. 99.02 lakhs (Previous Year: Rs. 394.35 lakhs) accrued as Industrial Promotion Assistance is credited to Profit and Loss Account.

The company is eligible for incentives under the " Bihar Industrial Incentive Policy 2006" in respect of its Fibre Cement Plant at Bihiya in the State of Bihar . During the year under review ,

- Asum of Rs. 501.66 lakhs (Previous Year Rs. 481.53 lakhs) accrued as Industrial Promotion Incentive and credited to Profit and Loss account.

A sum of Rs. 100 lakhs (Previous Year Rs. Nil) received as capital subsidy on investment in Plant and Machinery and credited to Capital Reserve Account.

A sum of Rs. 19.31 lakhs (Previous Year Rs. Nil) received as incentive grant for investment in Diesel Generating set and credited to Capital Reserve Account.

8. Out of units of 264.95 lakhs units (Previous Year 336.40 lakhs units) generated net of wheeling and banking at wind farms -

a) 74.60 lakhs units (Previous Year 81.57 lakhs units) were sold to concerned State Electricity Board for X 245.63 lakhs (Previous Year Rs. 280.51 lakhs), shown under "Power generated from windmills".

b) 178.36 lakhs units (Previous Year 242.44 lakhs units) were consumed at the plants and f. 1069.92 lakhs (Previous Year Rs. 1446.11 lakhs), which is not recognised in the financial statements.

c) 11.99 lakhs units (Previous Year 12.39 lakhs units) remain unadjusted and its monetary value of Rs. 53.01 lakhs (Previous Year: Rs. 41.24 lakhs) has been included in " Other Current Assets".

9. The Company does not have taxable income for the year, both under the conventional method of computation of income and under section 115JBof the Income Tax Act, 1961 (Minimum Alternate Tax). Accordingly, no provision for income tax has been made for the year.

10. Related Party Disclosure

As per Accounting Standard (AS 18) issued by the Institute of Chartered Accountants of India, the Company''s related parties are given below:

a. Subsidiary Companies:

1. Sudharsanam Investments Ltd

2. Sri Ramco Lanka (Private) Ltd., Srilanka

3. Sri Ramco Roofings Lanka (Private) Ltd., Srilanka (Wholly owned subsidiary of Sri Ramco Lanka (Private) Limited)

b. Key Management Personnel and relatives: P.R. Ramasubrahmaneya Rajha, Chairman

P.R. Venketrama Raja, Vice Chairman and Managing Director

c. Enterprises over which the above persons exercise significant influence and with which the Company has transactions during the year.

Rajapalayam Mills Ltd

The Ramco Cements Ltd

Ramco Systems Ltd

The Ramaraju Surgical Cotton Mills Ltd

Sri Vishnu Shankar Mills Ltd

Sandhya Spinning Mills Ltd

Thanjavur Spinning Mills Ltd

Sri Harini Textiles Ltd

Public Trust

Raja Charity Trust

- P A C R Educational & Charitable Trust P A C R Sethurammal Charities

- Shri Abinava Vidyatheertha Seva Trust

11. During the year under review, The Company has paid Rs. 343.95 lakhs (Previous Year Rs. 423.61 lakhs) as sole selling agency commission to a related company M/s. Raja Charity Trust pending approval for re-appointment of M/s. Raja Charity Trust from Ministry of Corporate Affairs, Government of India as required under sub-section (3) of Section 294AA of the Companies Act, 1956. The Company has filed relevant application for renewal of appointment of M/s. Raja Charity Trust as sole selling agent which is pending as on reporting date.

12. In respect of the electricity matters relating to our Textile Division, the company has filed appeals/ writ petition for Rs. 281.07 lakhs against various subject matter of the appeal and the same is pending with Tamilnadu Electricity Regulatory Commission (TNERC) / Honourable High Court / Honourable Supreme Court for resolution. The company is confident of resolving the matter in its favour and hence no provision is made in the books of account

13 (a). During the year, the Company made an investment of Rs. 100.00 lakhs in the Equity Shares of Cauvery Power Generation Chennai Private Limited in order to enable the company to purchase electricity from them under Group Captive arrangement for the period from October 2013 to March 2014 for our Textile Division namely Sri Ramco Spinners and Ramco Textile Mill. The Company has not renewed the power purchase agreement beyond March 2014 and hence sold the above investment for Rs. 100.00 lakhs during March 2014

14. There are no dues to Micro and Small Enterprises as at 31.03.2014 (Previous Year : Rs. Nil). This 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.

15. Previous year''s figures have been regrouped / restated wherever necessary so as to make them comparable with that of the current year.

16. Figures have been rounded off in lakhs with two decimal.


Mar 31, 2013

1. The Company has not utilized Short Term Loans for Long Term purposes

2. Income Tax Assessment has been completed upto the Accounting Year 2009-2010 (i.e. Assessment Year 2010-11) Demand''s raised by the Income Tax Department amounting to Rs..701.90 lacs (For Assessment year 2009-10-Rs..2179 lacs) which have been disputed by the Company and necessary appeals have been fi led. Based on the nature of the claim disputed, no provision has been considered necessary

3. Sales Tax and Central Excise demands amounting to Rs..46.94 lacs have been disputed by the Company and necessary appeals have been fi led. Based on the nature of claim disputed, no provision has been considered necessary

4. Trade receivables include Dues from Overseas Subsidiary Company viz., Sri Ramco Roofi ngs Lanka (Private) Ltd., Sri Lanka to the extent of Rs..474.11 lacs and Sri Ramco Lanka (Private) Ltd, Sri Lanka to the extent of Rs.. 664.23 lacs. Maximum amount due during the year is - Rs..664.23 lacs and Rs..474.11 lacs respectively

5. The Company''s Shares are listed on Madras Stock Exchange Ltd, National Stock Exchange of India Ltd and BSE Ltd and the isting fees in respect of all the three exchanges for the Financial year 2013-2014 have been paid

6. The Company is eligible for Incentives under the "West Bengal Incentive Scheme 2000" in respect of its Fibre Cement Plant and Clinker Grinding unit at Kharagpur in the State of West Bengal. A sum of Rs..394.35 lacs (Previous Year: Rs.. 728.86 lacs) accrued as Industrial Promotion Assistance is credited to Profi t and Loss Account

The Company is eligible for Incentives under the "Bihar Industrial Policy 2006" in respect of its Fibre Cement Plant at Bihiya in the State of Bihar. A sum of Rs..481.53 lacs (Previous Year: Rs..185.50 lacs) accrued as Industrial Promotion Incentive is credited to Profi t and Loss Account

7. Out of units of 332.62 Lacs units (PY 301.59 Lacs units) generated net of wheeling and banking at wind farms -

a) 81.57 Lacs units (PY 92.06 Lacs units) were sold to concerned State Electricity Board for Rs.. 280.51 Lacs (PY Rs.. 307.66 Lacs), shown under "Power generated from windmills"

b) 242.44 Lacs units (PY 210.24 Lacs units) were consumed at the plants and Rs.. 1446.11 Lacs (PY Rs.. 916.67 Lacs), which is not recognised in the fi nancial statements

c) 12.39 Lacs units (PY 3.78 Lacs units) remain unadjusted and its monetary value of Rs..41.24 Lacs (PY: Rs..27.69 Lacs) has been included in "Other Current Assets"

8. Related Party Disclosure

As per Accounting Standard (AS 18) issued by the Institute of Chartered Accountants of India, the Company''s related parties are given below:

a. Subsidiary Companies

1. Sudharsanam Investments Ltd

2. Sri Ramco Lanka (Private) Ltd., Srilanka

3. Sri Ramco Roofi ngs Lanka (Private) Ltd., Srilanka

b. Key Management Personnel and relatives P.R. Ramasubrahmaneya Rajha

P.R. Venketrama Raja

c. Enterprises over which the above persons exercise signifi cant infl uence and with which the Company has transactions during the year.

Rajapalayam Mills Ltd

Madras Cements Ltd

Ramco Systems Ltd

Ramaraju Surgical Cotton Mills Ltd

Sri Vishnu Shankar Mill Ltd

Sandhya Spinning Mill Ltd

Thanjavur Spinning Mill Ltd

Sri Harini Textiles Ltd

Rajapalayam Spinners Ltd

9. Previous year''s fi gures have been regrouped / restated wherever necessary so as to make them comparable with that of the current year.

10. Figures have been rounded off" in Lacs with two decimale


Mar 31, 2012

As at As at

31.03.2012 31.03.2011

Rs.in Lacs Rs.in Lacs

1. I. Contingent Liabilities not provided for :

A. Claims against the company / disputed liabilities not acknowledged as debts:

a. In respect of Joint ventures NIL NIL

b. In respect of others 9.89 89.00

B. Guarantees

Bank Guarantees to Banks/Financial institutions against credit facilities extended to third parties:

a. In respect of Joint ventures NIL NIL

b. In respect of others 9,899.00 8,629.00

II. Commitments

A. Estimated amount of contracts remaining to be executed on capital account and not provided for:

a. In respect of Joint ventures NIL NIL

b. In respect of others 377.81 831.77

B. Other Commitments

a. Letter of Credits NIL 791.79

b. Bank Guarantees 258.12 255.94

2. Audit, Accountancy and Legal Charges include fees (inclusive of service tax) paid to Statutory Auditors towards:

Statutory Audit Fees 7.87 6.62

Tax Audit Fees 0.44 0.44

Fees for certification 0.67 0.66

Expenses of Audit 2.85 2.24

Cost Audit Fees 2.25 -

3. The breakup of Deferred tax liability as at 31.03.2012 of Rs 2,288.56 lacs is as under:

Timing Difference on account of Tax effect on difference between 2,411.74 2,501.35 book depreciation and depreciation under the Income Tax Act, 1961

Tax effect of provision for Leave Encashment (120.97) (86.51)

Tax effect of provision for Bad and Doubtful debts (2.21) (6.28)

4. The Company has not utilized Short Term Loans for Long Term purposes.

5. Demand raised by the Income Tax Department amounting to Rs 2,179 lacs which have been disputed by the company and necessary appeals have been filed. Based on the nature of the claim disputed, no provision has been considered necessary.

6. Sales Tax demand amounting to Rs 9.89 lacs have been disputed by the company and necessary appeals have been filed. Based on the nature of claim disputed, no provision has been considered necessary.

7. Trade receivables include dues from Overseas Subsidiary Company viz., Sri Ramco Roofings Lanka (Private) Ltd., Sri Lanka to the extent of Rs 54.41 lacs and Sri Ram co Lanka (Private) Ltd, Sri Lanka to the extent of Rs 694.11 lacs. Maximum amount due during the year is Rs 697.26 and Rs 694.11 lacs respectively.

8. The Company's Shares are listed on Madras Stock Exchange Limited, National Stock Exchange of India Limited and Bombay Stock Exchange Limited and the listing fees in respect of all the three exchanges for the Financial year 2012-2013 have been paid.

a. External Commercial Borrowing Loan of USD 6.00 million amounting to Rs 3,052.50 lacs borrowed from DBS Bank Ltd., Singapore is secured by paripasu first charge on the fixed assets and paripasu second charge on current assets in favour of Security Trustee DBS Bank Ltd., Chennai.

As per requirements of Accounting Standard 11, ECB loan has been valued at Rs 50.875 per USD, as the closing rate on 31/03/2012.

This has resulted in a notional loss of X 375.50 lacs which has been accounted as per Notifications dated 31/03/2009 and 11th May 2011 amending the Accounting Standard AS 11 relating to the Effects of Foreign Exchange Rates as Rs 79.85 lacs towards Interest and Rs 295.65 lacs towards Fixed Assets.

b. The Working Capital Borrowings of the Company are secured by hypothecation of Stocks of raw materials, work-in progress, stores, spares and finished goods and book debts and second charge on fixed assets.

9. The premium on forward exchange contracts not intended for trading or speculative purpose is amortized as expense over the life of the contract. During the current year Rs 4.80 lacs (PY: Rs 29.02 lacs) has been amortized and the same is included in interest and finance charges.

10. The Company is eligible for Incentives under the "West Bengal Incentive Scheme 2000 in respect of its Fibre Cement Plant and Clinker Grinding unit at Kharagpur in the State of West Bengal. A sum of Rs 728.86 lacs (Previous Year: Rs 564.12 lacs) accrued as Industrial Promotion Assistance is credited to Profit and Loss Account.

The Company is eligible for Incentives under the "Bihar Industrial Policy 2006" in respect of its Fibre Cement Plant at Bihiya in the State of Bihar. A sum of Rs 185.50 lacs (Previous Year: Rs NIL) accrued as Industrial Promotion Incentive is credited to Profit and Loss Account.

Interest subsidy under Technology Up gradation Fund (TUF) is credited to interest.

11. Previous year's figures have been regrouped / restated wherever necessary so as to make them comparable with that of the current year.

12. Figures have been rounded of in lacs with two decimals.

 
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