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Notes to Accounts of RDB Rasayans Ltd.

Mar 31, 2016

Note 1 - Amounts in the financial statements are presented in Rupees and rounded off to the nearest decimals thereof. The previous year figures have been regrouped / reclassified, wherever necessary to conform to the current year presentation.

2. Rights, preferences and restriction attaching to various classes of shares including restriction on distribution of dividends and repayment of capital.

The Company has only one class of shares which does not enjoy any preferential right or bear any restriction with regard to distribution of dividend or repayment of capital. Each holder of equity shares is entitled to one vote per share.

3. In accordance with the West Bengal Incentive Scheme 2000, announced by the Govt, of West Bengal, the company has approved an action plan for availing the subsidy benefits based on the eligibility certificate issued by the West Bengal Industrial Development Corporation Ltd. In view of the reasonable uncertainty and the method of calculation of subsidies, such subsidies are accounted for as and when the disbursements will be received. During the year under review, the Company has received subsidy of Rs.3,755,000 (P.Y. Nil).

4. In the opinion of the Board the Current Assets, Loans and Advances are not less than the stated value if realized in ordinary course of business. The provision for all known liabilities is adequate. There is no contingent liabilities except stated, as informed by the Management.

5. The Business of the company falls under a single segment i.e. manufacturing and trading of PP woven sacks / Fabric / Liner and its related raw material. In view of the general classification notified by Central Government in exercise of powers conferred u/s 133 of Companies Act, 2013 for Companies operating in single segment, the disclosure requirement as per Accounting Standard-17 on “Segment Reporting” is not applicable to the Company. The Company’s business is mainly concentrated in similar geographical, political and economical conditions; hence disclosure for geographical segment is also not required.

6. The Company is in communication with its suppliers to ascertain the applicability of “The Micro, Small and Medium Enterprises Development Act, 2006”. As on the date of this Balance Sheet the Company has received communication from few of its suppliers regarding the applicability of this Act to them and the same has been disclosed under note no 2.7.

7. Post employment benefits:

8. Defined contribution plans: The Company has recognized an expense of Rs. 1,110,358 (Previous Year Rs. 1,024,950) towards the defined contribution plans.

9. Defined benefit plans: As per actuarial valuation as on March 31,2016 and recognized in the financial statements in respect of Employee Benefit Schemes:

10. The Company was under process of investigation as per SEBI ad interim exparte order WTM/PS/45/ID9/DEC/2011 dated 28.12.2011 in exercise of the powers conferred upon SEBI under section 11(1), 11(4), 11A and 11B of the said act and issued certain directions for the Company to comply with. Accordingly the Company recalled the secured loan from its group company and deposited the same in Escrow account.

11. As per direction of SEBI WTM’s order dated 19.12.2014, the Company has been granted liberty to utilize the funds raised in IPO lying in Escrow Account for the purpose disclosed in prospectus. However, the proceeding under Sec 4(1) of SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 has been initiated and the same is in under process.

12. Pursuant to the order dated 19.12.2014 of SEBI, the Company in last year has accounted for interest income of Rs. 68,632,314 and TDS there on Rs. 6,863,231 of which interest of Rs. 42,605,637 and TDS of Rs. 4,260,565 pertain to earlier years which was not accounted for before in accordance with the guideline prescribed under AS-9 with regard to “Revenue Recognition”.

13. The company and the notice directors have filed appeal before the Securities Appellate Tribunal, Mumbai on 16.12.2015 and 23.12.2015 respectively against the SEBI WTM''s Order dated 19.12.2014

14. The Company has filed a WRIT petition with the Hon’ble High Court of Calcutta challenging the vires of the West Bengal Tax on Entry of Goods into Local Areas Act, 2012. The Company has received an interim order from Court admitting the WRIT petition filed. Outstanding Liability on account of West Bengal Tax on Entry of Goods is Rs. 2,083,603 (P.Y. Rs. 795,082)

15. Note no 1 to2.38forms an integral part of financial statement.


Mar 31, 2015

1. Rights, preferences and restriction attaching to various classes of shares including restriction on distribution of dividends and repayment of capital.

The Company has only one class of shares which does not enjoy any preferential right or bear any restriction with regard to distribution of dividend or repayment of capital. Each holder of equity shares is entitled to one vote per share.

2. In accordance with the West Bengal Incentive Scheme 2000, announced by the Govt. of West Bengal, the company has approved an action plan for availing the subsidy benefits based on the eligibility certificate issued by the West Bengal Industrial Development Corporation Ltd. In view of the reasonable uncertainty and the method of calculation of subsidies, such subsidies are accounted for as and when the disbursements will be received.

3. In the opinion of the Board the Current Assets, Loans and Advances are not less than the stated value if realized in ordinary course of business. The provision for all known liabilities is adequate. There is no contingent liabilities except stated, as informed by the Management.

4. The Business of the company falls under a single segment i.e. manufacturing and trading of PP woven sacks / Fabric / Liner and its related raw material. In view of the general classification notified by Central Government in exercise of powers conferred u/s 133 of Companies Act, 2013 for Companies operating in single segment, the disclosure requirement as per Accounting Standard-17 on "Segment Reporting" is not applicable to the Company. The Company's business is mainly concentrated in similar geographical, political and economical conditions; hence disclosure for geographical segment is also not required.

5. The Company is in communication with its suppliers to ascertain the applicability of "The Micro, Small and Medium Enterprises Development Act, 2006". As on the date of this Balance Sheet the Company has received communication from few of its suppliers regarding the applicability of this Act to them and the same has been disclosed under note no 2.7.

6. Post employment benefits:

a) Defined contribution plans: The Company has recognized an expense of Rs. 1,024,950 (Previous Year Rs. 998,839) towards the defined contribution plans.

b) Defined benefit plans: As per actuarial valuation as on March 31, 2015 and recognized in the financial statements in respect of Employee Benefit Schemes:

7. Related party disclosures in accordance with AS-18

a) Other related parties to whom the Company had transactions:

i. Key management personnel and their relatives :

Sl. No. Name Designation / Relationship

1. Sri Shanti Lal Baid Managing Director

2. Sri Sandeep Baid Whole time Director

3. Sri Vinod Dugar Son-in-law of Managing Director

ii. Enterprises over which key management personnel / major shareholders / their relatives have significant Influence :

Sl. No. Name of enterprise Relationship with enterprise

1. M/s. Ajanta Trading Company Director's Brother & Son are partner

2. M/s. R D Motors Private Ltd Director's son-in-law is director

3. M/s. NTC Industries Ltd. Entity under significant influence of KMP / 4. M/s. Infra Vision Developers P Ltd relative of KMP.

8. Contingent liabilities:

a) Unexpired bank guarantee is given by the Company against EPGC scheme and Public issue for Rs. 1,948,431 (Previous year Rs.1,948,431).

b) Outstanding liability on account of letter of credit is given by the Company against electricity security deposit for Rs. 4,300,000 (Previous year Rs. 3,800,000).

c) Outstanding liability on account of West Bengal Tax on Entry of Goods will be for Rs. 7,95,082 (Previous year Rs. Nil)

9. During the year under review, the Company has aligned the useful life of its Tangible Fixed Assets in the line with Schedule II to Companies Act, 2013.

10. The Company was under process of investigation as per SEBI ad interim exparte order WTM/PS/45/ID9/DEC/2011 dated 28.12.2011 in exercise of the powers conferred upon SEBI under section 11(1), 11(4), 11A and 11B of the said act and issued certain directions for the Company to comply with. Accordingly the Company recalled the secured loan from its group company and deposited the same in Escrow account.

11. As per direction of SEBI WTM's order dated 19.12.2014, the Company has been granted liberty to utilize the funds raised in IPO lying in Escrow Account for the purpose disclosed in prospectus. However, the proceeding under Sec 4(1) of SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 has been initiated and the same is in under process.

12. Pursuant to the order dated 19.12.2014 of SEBI, the Company during the year under review has accounted for interest income of Rs. 68,632,314 and TDS there on Rs. 6,863,231 of which interest of Rs. 42,605,637 and TDS of Rs. 4,260,565 pertain to earlier years which was not accounted for before in accordance with the guideline prescribed under AS-9 with regard to "Revenue Recognition".

13. The Company has filed a WRIT petition with the Hon'ble High Court of Calcutta challenging the vires of the West Bengal Tax on Entry of Goods into Local Areas Act, 2012. The Company has received an interim order from Court admitting the WRIT petition filed.


Mar 31, 2014

1. Share Capital

a. Rights, preferences and restriction attaching to various classes of shares including restriction on distribution of dividends and repayment of capital.

The Company has only one class of shares which does not enjoy any preferential right or bear any restriction with regard to distribution of dividend or repayment of capital. Each holder of equity shares is entitled to one vote per share.

2. Short-term provisions

Note : The Board of Directors has recommended, subject to approval of shareholders, dividend of Rs. 0.50 per equity shares of Rs. 10/- each on 17,714,800 equity shares, aggregating to Rs. 10,362,715 for the year ended 31.03.2014 (Previous year : Rs. 0.50, aggregating Rs. 10,294,292) including dividend distribution tax.

3. In accordance with the West Bengal Incentive Scheme 2000, announced by the Govt, of West Bengal, the company has approved an action plan for availing the subsidy benefits based on the eligibility certificate issued by the West Bengal Industrial Development Corporation Ltd. In view of the reasonable uncertainty and the method of calculation of subsidies, such subsidies are accounted for as and when the disbursements will be received.

4. In the opinion of the Board the Current Assets, Loans and Advances are not less than the stated value if realized in ordinary course of business. The provision for all known liabilities is adequate. There is no contingent liabilities except stated, as informed by the Management.

5. The Business of the company falls under a single segment i.e. manufacturing and trading of PP woven sacks / Fabric / Liner and its related raw material. In view of the general classification notified by Central Government in exercise of powers conferred U/S 211 (3C) of Companies Act, 1956 for Companies operating in single segment, the disclosure requirement as per Accounting Standard-17 on "Segment Reporting" is not applicable to the Company. The Company''s business is mainly concentrated in similar geographical, political and economical conditions; hence disclosure for geographical segment is also not required.

6. The Company is in communication with its suppliers to ascertain the applicability of "The Micro, Small and Medium Enterprises Development Act, 2006". As on the date of this Balance Sheet the Company has received communication from few of its suppliers regarding the applicability of this Act to them and the same has been disclosed under note no 2.7.

7. Post employment benefits:

a) Defined contribution plans: The Company has recognized an expense of Rs. 1,413,723 (Previous Year Rs. 1,046,701) towards the defined contribution plans.

b) Defined benefit plans: As per actuarial valuation as on March 31,2014 and ecognized in the financial statements in respect of Employee Benefit Schemes:

8. Contingent liabilities:

a) Estimated amount of contract remaining Rs. Nil (Previous Year Rs. 45,000,000) is to be executed on capital account and not provided for.

b) Unexpired bank guarantee is given by the Company against EPGC scheme and Public issue for Rs. 1,948,431 (Previous year Rs. 1,948,431).

c) Outstanding liability on account of letter of credit is given by the Company against electricity security deposit for Rs. 3,800,000 (Previous year Rs. 2,910,000).

9. The Company is under process of investigation as per SEBI ad interim exparte order WTM/PS/45/ID9/DEC/2Q11 dated 28.12.2011 in exercise of the powers conferred upon SEBI under section 11(1), 11(4), 11A and 11B of the said act and issued certain directions for the Company to comply with. Accordingly the Company recalled the secured loan from its group company and deposited the same in Escrow account.

10. The Company filed a WRIT petition (1971 (W) of 2012) dated 04.02.2012 in Calcutta High Court challenging validity of SEBI''s direction under Article 226. On 08.02.2012, the Company received an interim order from Court allowing SEBI to continue further investigation but restrained them to pass further order.

11. Pursuant to the application filed by the Company, the Hon''ble High Court, Calcutta vide their order dated 18.07.2012 has granted liberty to the Company to withdraw and utilize Rs. 6.50 crore out of Rs. 31.60 crore lying in Escrow Account. Accordingly the Company utilized Rs. 5.47 out of Rs. 6.50 as on date, balance remained in Escrow /current Account.

12. SEBI being aggrieved by the interim order dated 18.07.2012 of Hon''ble High Court, Calcutta filed a Special leave petition on dated 15.02.2013 before Hon''ble Supreme Court of India.

13. As a matter of prudence and following the guideline prescribed under AS -9 with regard to "Revenue recognition", also the matter being sub judice interest accrued on Escrow Account of Rs. 20,453,591 (Previous Year Rs. 19,598,109) and TDS there on of Rs. 2,045,360 (Previous year Rs. 1,959,811) for the year ended 31.03.2014 has not been accounted for in the Books of Accounts.


Mar 31, 2013

1.1 In accordance with the West Bengal Incentive Scheme 2000, announced by the Govt. of West Bengal, the Company has approved an action plan for availing the subsidy benefits based on the eligibility certificate issued by the West Bengal Industrial Development Corporation Ltd. In view of the reasonable uncertainty and the method of calculation of subsidies, such subsidies are accounted for as and when the disbursements will be received.

1.2 In the opinion of the Board the Current Assets, Loans and Advances are not less than the stated value if realized in ordinary course of business. The provision for all known liabilities is adequate. There is no contingent liabilities except stated, as informed by the Management.

1.3 The Business of the Company falls under a single segment i.e. manufacturing and trading of PP Woven Sacks / Fabric / Liner and its related raw material. In view of the general classification notified by Central Government in exercise of powers conferred U/S 211(3C) of Companies Act, 1956 for Companies operating in single segment, the disclosure requirement as per Accounting

Standard-17 on "Segment Reporting" is not applicable to the Company. The Company''s business is mainly concentrated in similar geographical, political and economical conditions; hence disclosure for geographical segment is also not required.

1.4 The Company is in communication with its suppliers to ascertain the applicability of "The Micro, Small and Medium Enterprises Development Act, 2006". As on the date of this Balance Sheet the Company has not received any communication from any of its suppliers regarding the applicability of this Act to them. This has been relied upon by the Auditors.

1.5 CONTINGENT LIABILITIES:

a) Estimated amount of contract remaining Rs. 45,000,000 (Previous year Rs. 45,000,000) is to be executed on capital account and not provided for.

b) Unexpired bank guarantee is given by the Company against EPGC scheme and Public Issue for Rs. 1,948,431 (Previous year Rs. 1,948,431).

c) Outstanding liability on account of letter of credit is given by the Company against electricity security deposit for Rs. 2,910,000 (Previous year Rs. 2,910,000).

d) On account of corporate guarantee given to bank for secured loan taken by group companies, Rs. Nil (Previous year Rs. 99,472,250).

1.6 The Company is under process of investigation as per SEBI ad interim exparte order WTM/PS/45/ID9/DEC/2011 dated 28.12.2011 in exercise of the powers conferred upon SEBI under section 11(1), 11(4), 11A and 11B of the said act and issued certain directions for the Company to comply with. Accordingly the Company recalled the secured loan from its group Company and deposited the same in Escrow Account.

1.7 The Company filed a WRIT petition (1971(W) of 2012) dated 04.02.2012 in Hon''ble High Court, Calcutta challenging validity of SEBI''s direction under Article 226. On 08.02.2012, the Company received an interim order from Court allowing SEBI to continue further investigation but restrained them to pass further order.

1.8 Pursuant to the application filed by the Company, the Hon''ble High Court, Calcutta vide their order dated 18.07.2012 has granted liberty to the Company to withdraw and utilize Rs. 6.50 crore out of Rs. 31.60 crore lying in Escrow Account.

1.9 SEBI being aggrieved by the interim order dated 18.07.2012 of Hon''ble High Court, Calcutta filed a Special leave petition on dated 15.02.2013 before Hon''ble Supreme Court of India.

1.10 As a matter of prudence, interest accrued on Escrow Account of Rs. 19,598,109 (Previous Year Rs. 2,553,937) and TDS there on of Rs. 1,959,811 (Previous year Rs. 255,394) for the year ended 31.03.2013 has not been accounted for in the Books of Accounts as the matter is sub judice, the recognition of interest has been postponed in accordance with AS-9 "Revenue Recognition".

1.11 Note No 1 to 2.38 forms an integral part of financial statement.


Mar 31, 2012

Note 1- Amounts in the financial statements are presented in Rupees and rounded off to the nearest decimals thereoff. The previous year figures have been regrouped / reclassified, wherever necessary to conform to the current period presentation.

a. Rights, preferences and restriction attaching to various classes of shares including restriction on distribution of dividends and repayment of capital.

The Company has only one class of shares which does not enjoy any preferential right or bear any restriction with regard to distribution of dividend or repayment of capital. Each holder of equity shares is entitled to one vote per share.

Note: The Board of Directors has recommended dividend @ Rs.0.75 per equity shares of Rs.10/- each on 17,714,800 equity shares for the year ended 31.03.2012 (Previous year: Rs. Nil).

1.1 In accordance with the West Bengal Incentive Scheme 2000, announced by the Govt. of West Bengal, the Company has approved an action plan for availing the subsidy benefits based on the eligibility certificate issued by the West Bengal Industrial Development Corporation Ltd. In view of the reasonable uncertainty and the method of calculation of subsidies, such subsidies are accounted for as and when the disbursements will be received.

1.2 In the opinion of the Board the Current Assets, Loans and Advances are not less than the stated value if realised in ordinary course of business. The provision for all known liabilities is adequate. There is no contingent liabilities except stated, as informed by the Management.

1.3 The Business of the Company falls under a single segment i.e. Manufacturing of PP Woven Sacks / Fabric / Liner. In view of the general classification notified by Central Government in exercise of powers conferred u/s 211(3C) of Companies Act, 1956 for Companies operating in single segment, the disclosure requirement as per Accounting Standard-17 on "Segment Reporting" is not applicable to the Company. The Company's business is mainly concentrated in similar geographical, political and economical conditions; hence disclosure for geographical segment is also not required.

1.4 The Company is in communication with its suppliers to ascertain the applicability of "The Micro Small and Medium Enterprises Development Act, 2006". As on the date of this Balance Sheet the Company has not received any communication from any of its suppliers regarding the applicability of this Act to them. This has been relied upon by the Auditors.

1.5 Changes in Accounting Policy:

During the year, the Company has made provision for employee benefits in accordance with Accounting Standard-15 (Revised 2005) on "Employee Benefits". Consequent to this change, the employee cost for the current year is lower by Rs.314,896. Further in accordance with the transitional provisions of AS-15, the excess provision towards Employee Benefits as on 01.04.2011 amounting to Rs.236,874 has been credited to the Statement of Profit and Loss.

1.6 Post employment benefits:

a) Defined contribution plans: The Company has recognised an expense of Rs.1,005,696 (Previous year Rs.975,364) towards the defined contribution plans.

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

6 Discount rate is based upon the market yields available on Government Bonds at the accounting date with a term that matches with that of liabilities.

1.7 Contingent liabilities:

a) Estimated amount of contract remaining Rs. Nil (Previous year Rs.50,000) is to be executed on capital account and not provided for.

b) Unexpired bank guarantee is given by the Company against EPGC scheme and Public issue for Rs.1,948,431(Previous year Rs.193,431).

c) Outstanding liability on account of letter of credit is given by the Company against electricity security deposit for Rs.2,910,000 (Previous year Rs.2,910,000).

d) On account of corporate guarantee given to bank for secured loan taken by group companies, Rs. 99,472,250 (Previous year Rs.99,472,250)

1.8 The Company is under process of investigation as per SEBI ad interim exparte order WTM/PS/45/ID9/DEC/2011 dated 28.12.2011 in exercise of the powers conferred upon SEBI under section 11(1), 11(4), 11A and 11B of the said act and issued certain directions for the Company to comply with. Accordingly the Company recalled the secured loan from its group company and deposited the same in Escrow account.

1.9 The Company filed a WRIT petition (1971(W) of 2012) dated 04.02.2012 in Calcutta High Court challenging validity of SEBI's direction under Article 226. On 08.02.2012, the Company received an interim order from Court allowing SEBI to continue further investigation but restrained them to pass further order.

1.10 As a matter of prudence, interest accrued on Escrow Account of Rs.2,553,937 and TDS there on of Rs.255,394 for the year ended 31.03.2012 has not been accounted for in the Books of Accounts as the matter is sub judice, the recognition of interest has been postponed in accordance with AS-9 "Revenue recognition".

1.11 Note No 1 to 2.38 forms an integral part of financial statement.


Mar 31, 2011

1. In accordance with the West Bengal Incentive Scheme 2000, announced by the Gov., of West Bengal, the company has approved an action plan for availing the subsidy benefits based on the eligibility certificate issued by the. West Bengal Industrial Development Corporation Ltd. In view to the reasonable uncertainty and the method of calculation of subsidies, such subsidies shall be accounted for as and want the disbursements are received.

2. In the opinion of the Board the Current Assets Loans and Advances are not less than the stated value if realized in ordinary course of business. The provision for all known liabilities is adage Thereto s no contingent liabilities except stated, as informed by the Management

3 a) Estimated amount, of contract remaining Rs. 50,000.00 (Previous Year Rs Nil) to be executed on capital account and not provided for.

b) Unexpired Bank guarantee in way of Fixed Deposit ofRs.200,000.00 (Previous Year Rs 200,000.00)

c) On account of corporate guarantee given to bank for secured loan taken by the group companies Rs.110,000,000.00 (Previous Year 100,000,000.00)

4) The Company is in communication with its suppliers to ascertain the applicability of "The micro, small and Medium Enterprises Development Act, 2006". As on the date of this Balance sheet the Company has not received any communication from any of its suppliers regarding the applicability of this at to them. This has been relied upon by the Auditors.

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