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Notes to Accounts of Rathi Graphic Technologies Ltd.

Mar 31, 2015

1. Notes:

a) The Term Loan from State Bank of Bikaner and Jaipur is secured by First hypothecation change by covering entire Fixed Assets of the Company. Colleterial security by extending of 2nd change over Company's entire Current Assets (present and future) and personal Guarantee of promoter director Shri Raj Kumar Rathi.

b) Balance of Term Loan is payable in 6 quarterly installments started from April, 2015 (Previous year repayable in 10 quarterly installments from April, 2014).

c) The Term Loan from State Bank of India is secured by second pari passu charges (including) equitable mortgage over entire Fixed Assets of the Company. Collateral security by extending of 2nd charge over Company's entire Current Assets (present and future) along with 2 crores TDR (exclusive of SBI) and personal Guarantee of two Directors.

d) The Term Loan from RIICO Limited is secured by second pari passu charges (including) equitable mortgage over entire Fixed Assets of the Company. Collateral security by extending of 2nd pari passu charge over Company's entire Current Assets (present and future) and personal Guarantee of two directors.

e) Balance outstanding of Rs. 9,50,00,000/- of Term Loan-I from SBI is payable in 8 quarterly installments started from April, 2015 (Previous year repayable in 12 quarterly installments from April, 2014).

f) Balance outstanding of Rs. 4,60,00,000/- of Term Loan-II from SBI is payable in 12 quarterly installments started from April, 2015 (Previous year repayable in 22 quarterly installments from December, 2014).

g) Balance outstanding of Rs. 14,09,01,258/- of Term-III from SBI is payable in 20 quarterly installments started from April, 2015 (Previous year repayable in 19 quarterly installments from April, 2014).

h) Balance outstanding Rs. 6,81,81,822/- of Term Loan from RIICO Ltd. is payable in 15 quarterly installments started from April, 2015 (Previous year repayable in 19 quarterly installments from April, 2014). j) Car Loan are secured against hypothecation of vehicles purchase thereunder. Repayment of monthly installment till the tenure of loan concerned.

Notes:

a) The Working Capital limit from State Bank of Bikaner and Jaipur is covered by way of hypothecation over entire Current assets of the Company. Collateral security emending or 2nd charges over Company's entire fixed assets by way of equitable mortgage of Factory Land and Building at Bhiwadi, Rajastan and Persona guarantee of promoter director Shri Raj Kumar Rathi.

b) The Working Capital limit from State Bank of India is secured by first pari passu charges by way of hyphothecation over entire current assets of the Company. Collateral security by extending of 2nd pari passu charges over Company's entire fixed assets by way of equitable mortgage of Factory Land and Building and Plant & Machinery at Chopanki, Rajastan aling with 2 crores TDR (exclusive for SBI) and personal guarantee of two Directors.

c) The Working Capital limit from Bank of Maharastra is secured by first pari passu charges by way of hypothecation over entire current assets of the Company. Collateral security by extending of 2nd pari passu charges over Company's entire fixed assets by way of equitable mortgage of Factory Land and Building and Plant & Machinery at Chopanki, Rajasthan and personal guarantee of two Directors.

2. Non Current Investment

a) Market value of quoted investment is Rs .82,206/- (Previous year -Rs. 75,231/-).

3. PROVISION FOR CURRENT AND DEFERRED TAX

Provision far current tax assets and lability is estimated as per provisions of the Income Tax Act. 1961.

Deferred Tax Assets/Liabilities is recognized subject to the consideration of prudence on timing difference being the difference between taxable incomes and accounting income that originate in one period end are capable of reversal in one or more period. The components of Defened Tax Assets/ liabilities in accordance with the AS-22 "Accounting for taxes on Income" as on 31.03.2015 are as follows:

4. RELATED PARTY DISCLOSURES

In accordance with ihe Accounting Standards rAS-10) on Related Party Disclosures, where control exists and where key management personnel are able to exercise significant influence and, where transactione have taken place during tne year, along with description of re ationahip as ide.ntified are given bek*v:

5. Interest @10% per annum has been provided on security deposit received from dealers.

6. Sales include trading sales of Rs. 19,34,65,524 (Previous Rs. 21,60,00,120).

7. In the opinion of the Management all the current assets are realizable at the stated value.

8. CONTINGENT LIABILITIES

Contingent Liabilities not provided for:

I. Letter of Credit established in favour of the suppliers for raw materials Rs.1,34,77,210/- (Previous year Rs.1,13,95,403/-).

II. Bank Guarantee Rs.11,00,000/- (Previous year Rs.1,00,000/-).

III. The Company has given corporate to its subsidiary M/s RGTL Industries Limited for loan taken by others from bank or financial institutions.

9. Necessary disclosures required under the Micro, Small and Medium Enterprises Development Act,2006, can only be considered once relevant information to identify the suppliers who are covered the said Act are received from such parties/suppliers.

10. Expenditure in Foreign Currency is Rs. Nil (Previous year Rs.Nil)

11. EARNINGS PER SHARE

The basic earnings per share is calculated by dividing the net profit after tax for the year by weighted average number of equity shares outstanding during the year.

12. The Company has made investment in M/s Rathi Steel And Power Limited which is listed in stock exchange. The company has not made a provision of diminution in investment of Rs.11,63,344/- .

13. To comply with the guidance note on "Accounting Treatment of excise duty" issued by the Institute of Chartered

Accountants of India, excise duty amounting to Rs. 12,11,418/- has been included in the value of inventories as on 31st March, 2015 and the corresponding amount of Excise Duty payable has been included in other liabilities. However this accounting policy has no impact on the profit for the year.

14. Balance of debtors, creditors, loans and advances are subject to reconciliation and confirmation.

15. Previous year figures have been regrouped / rearranged wherever necessary, to correspond to current year figures.


Mar 31, 2014

Nature of Operation

Rathi Graphic Technologies Limited ("the Company") was incorporated on December 02, 1991. The company is engaged in the business of manufacturing of Tonners and Developers for use in photocopier machines & laser printers.

1. PROVISION FOR CURRENT AND DEFERRED TAX

Provision for current tax assets and liability is estimated as per provisions of the Income Tax Act, 1961.

Deferred Tax Assets / Liabilities is recognized subject to the consideration of prudence on timing difference being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more period. The components of Deferred Tax Assets/Liabilities in accordance with the AS-22 "Accounting for taxes on Income" as on 31.03.2014 are as follows:

2. RELATED PARTY DISCLOSURES

In accordance with the Accounting Standards (AS- 18) on Related Party Disclosures, where control exists and where key management personnel are able to exercise significant influence and , where transactions have taken place during the year, along with description of relationship as identified, are given below:

a) Relationships

I. Key Management Personnel

particulars Name of Related parties

Associates RGTL Industries Limited

Alpha Stocks & Finservices Pvt.Ltd. Shark Packaging (India) Pvt.Ltd. Rathi Electro Steel Limited Rathi Infrastructure Pvt. Limited

Key Management Personnel Sh.Raj Kumar Rathi (Managing Director)

Relatives of Key Management Punam Chand Rathi (HUF) Pe|-sonnel Raj Kumar Rathi (HUF)

3. Interest @10% per annum has been provided on security deposit received from dealers.

4. Sales include trading sales of Rs. 21,60,00,120 (Previous Rs. 15,49,47,970).

5. In the opinion of the Management all the current assets are realizable at the stated value.

6. CONTINGENT LIABILITIES

Contingent Liabilities not provided for:

I. Letter of Credit established in favour of the suppliers for raw materials Rs. 1,13,95,403/- (Previous year Rs.1,07,57,965/-).

II. Bank Guarantee Rs.1,00,000/- (Previous year Rs. 2,50,000/-)

III. The Company has given corporate guarantee to M/s RGTL Industries Limited for loan taken by others from bank or financial institutions.

IV. Sales Tax Demand of Rs. 509.00 Lacs under Rajasthan Value Added Tax Act 2003.

7. Our product i.e. tonner was taxable under the category of 4 / 5% tax rate up to 09-03-2010. However in the Budget of 2010-11, the Government of Rajasthan, vide notification no.10.83 dated 09.03.2010 deleted Entry 268 of Clause-4 of the Commercial Tax Act, resulting into classification of Tonner with Chemicals subject to Commercial Tax @14%. The Commercial Tax Officer had issued an Ex-parte Order dated 26-05-2011 and raised a demand and penalty of Rs.509.00 Lacs for the period from 09-03-2010 to 26- 03-2012. The application for re-opening of Ex-parte assessment is pending before Dy .Commissioner (Admn), Commercial Taxes, Alwar. The Company had also filed its representation before the Hon''ble Minister of Industries, Government of Rajasthan.

8. Loans and advances include Rs. 2,80,231/- This figure represents the excess amount paid to the Sales tax department and correspondingly, Current liabilities also include this amount as refundable to the customers.

9. Necessary disclosures required under the Micro, Small and Medium Enterprises Development Act,2006, can only be considered once relevant information to identify the suppliers who are covered the said Act are received from such parties/suppliers.

10. Expenditure in Foreign Currency is Rs. Nil (Previous year Rs.Nil)

11. EARNINGS PER SHARE

The basic earnings per share is calculated by dividing the net profit after tax for the year by weighted average number of equity shares outstanding during the year.

12. The Company has made investment in M/s Rathi Steel And Power Limited which is listed in stock exchange. The company has not made a provision of diminution in investment of Rs.11,70,319/-

13. To comply with the guidance note on "Accounting Treatment of excise duty" issued by the Institute of Chartered Accountants of India, excise duty amounting to Rs. 11,07,268/-has been included in the value of inventories as on 31st March, 2014 and the corresponding amount of Excise Duty payable has been included in other liabilities. However this accounting policy has no impact on the profit for the year.

14. Balance of debtors, creditors, loans and advances subject to reconciliation and confirmation.

15. Previous year figures have been regrouped/rearranged wherever necessary, to correspond to current year figures.


Mar 31, 2013

1. Interest @10% per annum has been provided on security deposit received from dealers.

2. CAPITAL COMMITMENTS

Estimated amount of contracts remaining to be executed on capital account is Nil. {Previous year Rs.Nii).

3. The unavaiied exemption for sales tax vide department letter dated 13.01.2004 as per details given below From To Extent of exemption 6.9.2012 5.9.2013 * 30 %

4. Sales include trading sales of Rs. 15,49,47,970.00 (Previous Rs. 2,56,41,559.00)

5. In the opinion of the Management all the current assets are realizable at the stated value.

6. CONTINGENT LIABILITIES

Contingent Liabilities not provided for: -

I. Letter of Credit established in favour of the suppliers for raw materials Rs. 1,07,57,965/- [Previous year Rs.1,10,75,124/-).

II. Bank Guarantee Rs.2,50,000/- (Previous year Rs.2,50,000/-)

III. The Company has given corporate guarantee to Ws

RGTL Industries Limited for loan taken by others from bank orfinancial institutions.

IV. Sales Tax Demand of Rs 509.00 Lacs under Rajasthan Value Added Tax Act 2003.

7. Our product i.e. tonner was taxable under the category of 4 / 5% tax rate up to 09-03-2010. However in the Budget of 2010-11, the Government of Rajasthan, vide notification nollO.83 dated 09.03.2010 deleted Entry 268 of Clause-4 of the Commercial Tax Act, resulting into classification of Tonner with Chemicals subject to Commercial Tax @14%. The Commerdai Tax Officer had issued an Ex-parte Order dated 26-05-2011 and raised a demand and penalty of Rs.509.00 Lacs for the period from 09-03-2010 to 26- 03-2012, The application for re-opening of Ex-parte assessment is pending before Dy.Commissioner (Admn), Commercial Taxes, Aiwar. The Company had also filed its representation before the Hon''ble Minister of Industries, Government of Rajasthan.

8. Loans and advances include Rs. 280231/- This figure represents the excess amount paid to the Sales tax department and correspondingly. Current liabilities also include this amount as refundable to the customers.

9. The Company has made investment in M/s Rathi Steel And Power Limited which is listed in stock exchange. The company has not made a provision of diminution in investment of Rs,11,45,657/-

10. To comply with the guidance note on "Accounting Treatment of excise duty" issued by the Institute of Chartered Accountants of India, excise duty amounting to Rs. 12,11,418/-has been included in the vaiue of Inventories as on 31st March, 2013 and the corresponding amount Excise Duty payable has been included in other liabilities. However this accounting policy has no impact on the profit for the year.

11. Balance of debtors, creditors, loans and advances subject to reconciliation and confirmation.

12. Previous year figures have been regrouped/rearranged wherever necessary, to correspond to current year figures.


Mar 31, 2010

1. Contingent Liabilities not provided for:

i) Letter of Credit established in favour of the suppliers for import of raw materials Rs. 62,61,779/- (Previous Year Rs.97,37,760/-).

ii) The Company has filed an appeal against the

balance of Rs.12.81 Lacs against imported capital goods on 03.03.2007.The Central Excise Authorities have issued a stay order vide order no.1141/2007 ex dated 26/11/2007.The Present impugned order is passed in pursuance to remand order passed by the Tribunal. The Amount already deposited is sufficient for hearing of the appeal.

2. In the opinion of the Management all the current assets are realizable at the stated value.

3. Interest @10 % per annum, has been provided on security deposit received from dealers.

4. Loans & Advances include an amount of Rs.31,54,505/ - towards CST including surcharge recoverable from Sales Tax Authority. This figure represents the excess amount paid to the Authority and correspondingly, Current liabilities also include this amount as refundable to the customers.

5. Necessary disclosures required under the Micro, Small and Medium Enterprises Development Act,2006, can only be considered once relevant information to identify the suppliers who are covered the said Act are received from such parties/suppliers.

6. Additional information pursuant to provisions of Part - II, schedule VI of the Companies Act, 1956 to the extent not applicable has not been given.

7. The Company has acquired 100% shares of M/s.Rathi Rajasthan Steel Mills Limited and resolution have been passed by Board of Directors on dated 24 September,2007 . M/s. Rathi Rajasthan Steel Mills Limited is setting up a plant for manufacture of superior quality reinforcement CTD/TMT bars and wire roads etc. with an installed capacity of 75,000 TPA. The Company has already started commercial production in May,2009 and achieved sales of Rs. 127 Crores for the financial year 2009-2010.

8. Quantitative information pursuant to the provisions of paragraphs 3,4 C and 4 D of part II of schedule VI of the companies Act, 1956. Previous Years figures have been given in brackets.

9. NOTE

Schedule 1 to 20 form an integral part of the Balance Sheet and Profit & Loss Account together with the Auditors Report.

Previous year figures have been regrouped/ rearranged wherever necessary.

10. Balance Sheet Abstract and Companys General Business Profile as per Part III of Schedule VI of the Act.

 
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