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Notes to Accounts of Rapicut Carbides Ltd.

Mar 31, 2015

1. In the opinion of the Board of Directors the Current Assets, Loans & Advances and Current Liabilities as reflected in the Balance Sheet represent the value they would realise or become payable as the case may be in the ordinary course of business.

2. We have relied on the management representation in respect of determining reuse / sale of T.C. scrap, worn out Cylpebs & acceptance of rejection claims.

3. Exchange difference amounting to Rs.13,49,088/- (P.Y. Rs.5,32,564/-) has been adjusted in the cost of corresponding raw materials/consumables, Rs. NIL (P.Y. Rs. NIL /-) has been adjusted in export sales and Rs. NIL (P.Y. Rs. 27,736/-) has been adjusted in Fixed Assets.

4. The identification of suppliers as small scale industrial undertaking has been done on the bases of information to the extent provided by the suppliers to the company. On these bases amount over due to such unit is exceeding Rs. ONE LAC is "NIL"and outstanding balance from such parties is Rs. Nil at the year end.(P.Y. Rs. NIL).

5. Provision for taxation has been made during the year as per completed Income Tax Assessment of the Company.

6. Segment Reporting : The Company has only one business segment "Tungsten & Tungsten Carbides Products" as primary segment. The secondary segment is geographical which is given as under:

7. Contingent Liabilities:

a) Company's Income Tax Assessments have been completed up to the Assessment year 2012-2013. In the opinion of the management, provision made in books is sufficient to cover liabilities in respect of pending assessments.

b) Company's Sales Tax Assessments have been completed up to the Financial year 2010-11.

c) Show Cause Notices/Demands for Excise/Customs duty/Income Tax claims raised by Department and contested by the Company are Rs.8.52 lacs (Rs.16.44 lacs). The Company has paid Rs.2.85 lacs (P.Y. Rs.5.85 lacs) under protest. Management has taken legal opinion that the provision made in the books is sufficient to cover the liabilities.

d) Gratuity payable as per revised accounting standard & actuarial valuation submitted by LIC of India amounting to Rs.44,66,155/-(P.Y. Rs.61,32,947-) was not provided for, as per management's explanation & opinion same is contingent in nature , as the valuation is based on assumption of Mortality rate, Withdrawal rate, Discounted rate, & Salary escalation of service etc. for the year.

The principal assumptions used by LIC in determining valuation.

8. Figures of the previous year have been re-grouped/re-arranged wherever necessary to conform to this year's classification as per Revised schedule VI of the companies Act, 2013.


Mar 31, 2014

1. In the opinion of the Board of Directors the Current Assets, Loans & Advances and Current Liabilities as reflected in the Balance Sheet represent the value they would realise or become payable as the case may be in the ordinary course of business.

2. We have relied on the management representation in respect of determining reuse / sale of T.C. scrap, worn out Cylpebs & acceptance of rejection claims.

3. Exchange difference amounting to Rs.5,32,564/- (P.Y. Rs.7,42,325/-) has been adjusted in the cost of corresponding raw materials/consumables, Rs.NIL (P.Y. Rs. 732/-) has been adjusted in export sales and Rs. 27,763/- (P.Y. Rs. 864/-) has been adjusted in Fixed Assets.

4. The identification of suppliers as small scale industrial undertaking has been done on the bases of information to the extent provided by the suppliers to the company. On these bases amount over due to such unit is exceeding Rs .ONE LAC is "NIL"and outstanding balance from such parties is Rs.Nil at the year end(P.Y. Rs.NIL).

5. Provision for taxation has been made during the year as per completed Income Tax Assessment of the Company.

6. CONTINGENT LIABILITIES :

a) Company''s Income Tax Assessments have been completed up to the Assessment year 2011-2012. In the opinion of the management, provision made in books is sufficient to cover liabilities in respect of pending assessments.

b) Company''s Sales Tax Assessments have been completed up to the Assessment year 2009-10.

c) Show Cause Notices/Demands for Excise/Customs duty/Income Tax claims raised by Department and contested by the Company are Rs.16.44 lacs (Rs.15.40 lacs). The Company has paid Rs. 5.85 lacs (P.Y. Rs.5.85 lacs) under protest. Management has taken legal opinion that the provision made in the books is sufficient to cover the liabilities.

d) Gratuity payable as per revised accounting standard & actuarial valuation submitted by LIC of India amounting to Rs.61,32,947/- (P.Y. Rs.56,77,287/-) was not provided for, as per management''s explanation & opinion same is contingent in nature as the valuation is based on assumption of Mortality rate, Withdrawal rate, Discounted rate, & Salary escalation of service etc. for the year.

The principal assumptions used by LIC in determining valuation.

(1) Withdrawal Rate : 1% to 3% depending on age

Discounting Rate : 8% p.a.

Salary Escalation : 7% p.a.

2013-14 (Rs.) 2012-13 (Rs.)

(2) Accrued Gratuity : 1,35,93,343/- 1,24,88,831/-

Fund value as on : 74,60,396/- 68,11,544/-

Net Unfunded Gratuity Liability : 61,32,947/- 56,77,287/-

(3) Defined Benefit obligation plan :

Opening Balance : 68,11,544/- 61,72,827/- Add : Amount credited during the year : 8,63,856/- 9,60,780/-

Less : Amount paid during the year : 8,22,547/- 9,10,743/-

Add : Interest credited during the year : 6,07,543/- 5,88,680/-

Closing Balance : 74,60,396/- 68,11,544/-

(4) Present value of past defined obligation plan : 1,28,78,387/- 1,17,89,281/-

Figures of the previous year have been re-grouped/re-arranged wherever necessary to conform to this year''s classification as per Revised schedule VI of the companies Act, 2013.


Mar 31, 2013

1. In the opinion of the Board of Directors the Current Assets, Loans & Advances and Current Liabilities as reflected in the Balance Sheet represent the value they would realise or become payable as the case may be in the ordinary course of business.

2. We have relied on the management representation in respect of determining reuse / sale of T.C. scrap, worn out Cylpebs & acceptance of rejection claims.

3. Exchange difference amounting to Rs.7,42,325/- (P.Y. Rs. 17,80,879/-) has been adjusted in the cost of corresponding raw materials/consumables, Rs.732 (P.Y. Rs. NIL) has been adjusted in export sales and Rs.864/-(P.Y. Rs. NIL) has been adjusted in Fixed Assets.

4. The identification of suppliers as small scale industrial undertaking has been done on the bases of information to the extent provided by the suppliers to the company. On this basis amount overdue to such units exceeding Rs .ONE LAC is "NIL''and outstanding balance from such parties is Rs.Nil at the year end(P.Y. Rs.NIL).

5. Provision for taxation has been made during the year as per completed Income Tax Assessment of the Company.

6. Contingent Liabilities:

a) Company''s Income Tax Assessments have been completed up to the Assessment year 2010-2011. In the opinion of the management, provision made in books is sufficient to cover liabilities in respect of pending assessments.

b) Company''s Sales Tax Assessments have been completed up to the Assessment year 2008-09.

c) Show Cause Notices/Demands for Excise/Customs duty claims raised by Department and contested by the Company are Rs. 15.40 lacs (P.Y. Rs. 15.40 lacs). The Company has paid Rs. 5.85 lacs (RY. Rs.5.85 lacs) under protest. Management has taken legal opinion that the provision made in the books is sufficient to cover the liabilities.

d) Gratuity payable as per revised accounting standard & actuarial valuation submitted by LIC of India amounting to Rs.56,77,287/- (RY. Rs.49,78,888/-) was not provided for, as per management''s explanation & opinion same is contingent in nature, as the valuation is based on assumption of Mortality rate, Withdrawal rate, Discounted rate & Salary escalation of service etc. for the year.

7. Figures of the previous year have been re-grouped/re-arranged wherever necessary to conform to this year''s classification as per Revised schedule VI of the companies Act, 1956.


Mar 31, 2012

1. In the opinion of the Board of Directors the Current Assets, Loans & Advances and Current Liabilities as reflected in the Balance Sheet represent the value they would realise or become payable as the case may be in the ordinary course of business.

2. We have relied on the management representation in respect of determining reuse / sale of T.C. scrap, worn out Cylpebs & acceptance of rejection claims.

3. Exchange difference amounting to Rs. 17,80,879/- (P.Y. Rs. 8,50,659/-) has been adjusted in the cost of corresponding raw materials/consumables purchased and Rs Nil (P.Y. Rs. 297/-) has been adjusted in export sales.

4. The identification of suppliers as small scale industrial undertaking has been done on the bases of information to the extent provided by the suppliers to the company. On these bases amount over due to such unit exceeding Rs. ONE LAC is "NIL" and outstanding balance from such parties is Rs. Nil at the year end (P.Y. Rs. 6601/-).

5. Provision for taxation has been made during the year as per completed Income Tax Assessment of the Company.

6. Contingent Liabilities:

I. Company's Income Tax Assessments have been completed up to the Assessment year 2009-2010. In the opinion of the management, provision made in books is sufficient to cover liabilities in respect of pending assessments.

II. Company's Sales Tax Assessments have been completed up to the Assessment year 2008-09.

III. Show Cause Notices/Demands for Excise/Customs duty claims raised by Department and contested by the Company are Rs.15.40 lacs (Rs.21.15 lacs). The Company has paid Rs. 5.85 lacs (P.Y. Rs. 5.85 lacs) under protest. Management has taken legal opinion that the provision made in the books is sufficient to cover the liabilities.

IV. Gratuity payable as per revised accounting standard & actuarial valuation submitted by LIC of India amounting to Rs. 49,78,888/- (P.Y. Rs. 43,82,523/-) was not provided for, as per management's explanation & opinion same is contingent in nature, as the valuation is based on assumption of Mortality rate, Withdrawal rate, Discounted rate & Salary escalation of service etc. for the year.

7. Figures of the previous year have been re-grouped/re-arranged wherever necessary to conform to this year's classification.


Mar 31, 2010

1 In the opinion of the Board of Directors the Current Assets, Loans & Advances and Current Liabilities as reflected in the Balance Sheet represent the value they would realise or become payable as the case may be in the ordinary course of business.

2. Sundry Debtors include debts outstanding for more than 5 years Rs. 14.63 lacs (P.Y. Rs. 7.97 lacs) approx. The management is hopeful of their recovery to the best of the efforts being put in and as such no provision for doubtful debts is made. Further we have relied on the management representation in respect of determining reuse / sale of T.C. scrap, worn out Cylpebs & acceptance of rejection claims.

3. Sundry Creditors for goods & services are net of advances given to various parties.

4. Exchange difference amounting to Rs. 25,76,382/- (P.Y. Rs. 12,93,848/-) has been adjusted in the cost of corresponding raw materials/consumables purchased/resale of materials.

5. The identification of suppliers as small scale industrial undertaking has been done on the basis of information to the extent provided by the suppliers to the company. On this basis amount overdue to such unit exceeding Rs. ONE LAC is "NIL".

6. Provision for taxation has been made during the year as per completed Income Tax Assessment of the Company.

7. Company had filed petition in the Honble High Court of Gujarat for reduction of paid up share capital from Rs. 2,67,05,680/- divided into 26,70,568/- equity shares of Rs. 10/- each to Rs. 2,14,84,980/- divided into 21,48,498 Equity shares of Rs. 10/- each. Honble High Court of Gujarat has vide its order dated 13.07.2009 sanctioned the reduction in share capital as per companys petition. All the necessary formalities in this regard with Registrar of Companies, Gujarat, Ministry of Company Affairs have been complied. Formalities with BSE are in process as on date.

8. Contingent Liabilities:

I Counter Guarantee to State Bank of India in respect of guarantees given by Bank to third parties Rs. 17,08,796/- (Rs. 20,56,681/-).

II Outstanding Letters of Credit Rs. 1,29,64,800/- (Rs. 1,58,22,005/-).

III Capital commitment remaining to be executed & not provided Rs. 9,48.,880/- (P.Y. Rs. 1,25,000/-).

IV Companys Income Tax Assessments have been completed up to the Assessment year 2008-2009. In the opinion of the management, provision made in books is sufficient to cover liabilities in respect of pending assessments.

V. Companys Sales Tax Assessments have been completed up to the Assessment year 2006-2007.

V. Show Cause Notices/Demands for Excise/Customs duty claims raised by Department and contested by the Company are Rs. 15.40 lacs (Rs. 15.40 lacs). The Company has paid Rs. 5.85 lacs (RY. 5.85 las) under protest. Management has taken legal opinion that the provision made in the books is sufficient to cover the liabilities.

VII. Gratuity payable as per revised accounting standard & actuarial valuation submitted by LIC of India amounting to Rs. 34,89,520/- (P.Y. 36,52,440) was not provided for, as per managements explanation & opinion same is contingent in nature, as the valuation is based on assumption of Mortality rate, Withdrawal rate, Discounted rate, & Salary escalation of service etc. for the year.

The principal assumptions used by LIC in determining valuation.

(01) Withdrawal Rate 1% to 3% depending on age. Discounting Rate 8% p.a.

Salary Escalation 7% p.a.

(02) Accrued Gratuity 82,22,492 Fund value as on : 47,32.972

Net Unfunded Gratuity Liability : 34,89,520

(03) Defined Benefit obligation plan Opening Balance 39,41,404

Add: Amount credited during the year 7,45,351

Less: Amount paid during the year 3,29,977

Add: Interest credited during the year 3,76,194

Closing Balance 47,32,972

(04) Present value, of defined obligation plan 75,87,112

9 Figures of the previous year have been re-grouped/re-arranged wherever necessary to confirm to this years classification.

 
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