Mar 31, 2023
Nature and Purpose of Reserves :
Capital Reserves
Capital Reserve is created on account of Forfeiture of Equity Shares.
Securities Premium Reserve
Securities Premium Reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Act..
General Reserve
General Reserve represents appropriation of retained earnings and are available for distribution to shareholders. Retained Earnings
Retained Earnings represents surplus/accumulated earnings of the Company and are available for distribution to shareholders.
Note 1 : 7.45% Vehicle Loan from banks for 36 months bearing floating interest rate are secured by hypothecation of vehicles.
Note 2 : 7.20% Term Loan from banks for 60 months bearing floating interest rate are secured by second charge with the existing credit facilities, in terms of cash flows and securities, with charge on the assets financed under the scheme.
Note 3 : Buyer Credit from banks bearing fixed interest rate from 4.00% to 7.45% are secured by first pari passu hypothecation charge on stock and book debts of the Company both present and future and cash margin in form of FDRs.
Note 4 : PCFC from banks bearing fixed interest rate from 2.50% to 7.50% are secured by first pari passu hypothecation charge on stock and book debts of the Company both present and future and cash margin in form of FDRs.
Note 5 : EBRD (Post Shipment) from banks bearing fixed interest rate from 2.50% to 7.50% are secured by first pari passu hypothecation charge on stock and book debts of the Company both present and future and cash margin in form of FDRs.
Note 6 : Cash Credit Facility from banks bearing floating interest rate from 9% to 10% are secured by first pari passu hypothecation charge on stock and book debts of the Company both present and future and cash margin in form of FDRs.
Note 7 : Unsecured loan from related party bearing interest rate of 7.50% repayable in 60 months
The Company has the following Defined Benefit Plans:
Gratuity: In accordance with the applicable laws, the Company provides for gratuity, a defined benefit retirement plan (âThe Gratuity Planâ) covering eligible employees. The Gratuity Plan provides for a lump sum payment to vested employees on retirement (subject to completion of five years of continuous employment), death, incapacitation or termination of employment that are based on last drawn salary and tenure of employment. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation on the reporting date. The following are the details of defined benefit plans:
The Company is primarily engaged in the business of Manufacturing & Selling of articles made out of Plastics / Polymers. As such, the Company operates in a single segment and there are no separate reportable segments as defined in Ind AS 108 - âOperating Segmentsâ. The same is consistent with the information reviewed by the Chief Operating Decision Maker (CODM).
Geographical Information:
The operation of the Company comprises of local sales and export sales. The Management views the Indian market and Export market as distinct geographical areas. The following is the distribution of the Companyâs Revenues by geographical markets :
Valuation techniques and significant unobservable inputs
The Fair Value of the Financial Assets & Liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
The following tables show the valuation techniques used in measuring Level 2 and Level 3 fair values, for financial instruments measured at fair value in the statement of financial position, as well as the significant unobservable inputs used.
C. Financial Risk Management C. i. Risk management framework
A wide range of risks may affect the Companyâs business and operational / financial performance. The risks that could have significant influence on the Company are market risk, credit risk and liquidity risk. The Companyâs Board of Directors reviews and sets out policies for managing these risks and monitors suitable actions taken by management to minimise potential adverse effects of such risks on the Companyâs operational and financial performance.
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Companyâs trade and other receivables, cash and cash equivalents and other bank balances. To manage this, the Company periodically assesses financial reliability of customers, taking into account the financial condition, current economic trends and analysis of historical bad debts and ageing of accounts receivable. The maximum exposure to credit risk in case of all the financial instruments covered below is restricted to their respective carrying amount.
(a) Trade and other receivables from customers
Credit risk in respect of trade and other receivables is managed through credit approvals, establishing credit limits and monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.
The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in the credit risk on an on-going basis through each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of default occurring on assets as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding-looking information such as:
i) Actual or expected significant adverse changes in business
ii) Actual or expected significant changes in the operating results of the counterparty
iii) Financial or economic conditions that are expected to cause a significant change to the counterparties ability to meet its obligation
iv) Significant changes in the value of the collateral supporting the obligation or in the quality of third party guarantees or credit enhancements
Financial assets are written off when there is no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the Company. When loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due, When recoverable are made, these are recognised as income in the statement of profit and loss.
The Company measures the expected credit loss of trade receivables and loan from individual customers based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends. Based on the historical data, loss on collection of receivable is not material hence no additional provision considered.
(b) Cash and cash equivalents and Other Bank Balances
The Company held cash and cash equivalents and other bank balances of Rs. 143.18 million at 31st March 2023 (P.Y. Rs. 153.39 million). The cash and cash equivalents are held with bank with good credit ratings and financial institution counterparties with good market standing. Also, Company invests its short term surplus funds in bank fixed deposit, which carry no / low mark to market risks for short duration therefore does not expose the Company to credit risk.
C. iii. Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset.
Liquidity risk is managed by Company through effective fund management of the Companyâs short, medium and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and other borrowing facilities, by continuously monitoring forecast and actual cash flows and by matching the maturity profiles of financial assets and liabilities.
The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted.
Market Risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk.
C. iv.a Currency risk
The Company is exposed to currency risk on account of its operating and financing activities. The functional currency of the Company is Indian Rupee. Our exposure are mainly denominated in U.S. dollars. The USD exchange rate has changed substantially in recent periods and may continue to fluctuate substantially in the future. The Companyâs business model incorporates assumptions on currency risks and ensures any exposure is covered through the normal business operations. This intent has been achieved in all years presented. The Company has put in place a Financial Risk Management Policy to Identify the most effective and efficient ways of managing the currency risks.
A reasonably possible strengthening / (weakening) of the Indian Rupee against US dollars at 31st March would have affected the measurement of financial instruments denominated in US dollars and affected profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases. In cases where the related foreign exchange fluctuation is capitalised to fixed assets, the impact indicated below may affect the Companyâs income statement over the remaining life of the related fixed assets or the remaining tenure of the borrowing respectively.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk through the impact of rate changes on interest-bearing liabilities and assets. The Company manages its interest rate risk by monitoring the movements in the market interest rates closely.
The Company invests its surplus funds in various Equity and debt instruments. These comprise of mainly liquid schemes of mutual funds (liquid investments), Equity shares, Debentures and fixed deposits. This investments are susceptible to market price risk, mainly arising from changes in the interest rates or market yields which may impact the return and value of such investments. However due to the very short tenor of the underlying portfolio in the liquid schemes, these do not pose any significant price risk.
The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern ant to optimise returns to our shareholders. Management monitors the return on capital as well as the debt equity ratio and make necessary adjustments in the capital structure for the development of the business. The capital structure of the Company is based on managementâs judgement of the appropriate balance of key elements in order to meet its strategic and day - to - day needs. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.
The Companyâs debt to equity ratio at 31st March, 2023 was 0.53 (PY. 0.54)
Note : For the purpose of computing debt to equity ratio, equity includes Equity share capital and Other Equity and Debt includes Long term borrowings, Short term borrowings and current maturities of long term borrowings.
Note 38: Amalgamation of Axiom Cordages Limited (âACLâ) with Responsive Industries Limited (âRILâ)
The Board of Directors of Responsive Industries Limited (âRILâ) and that of Axiom Cordages Limited (âACLâ) wholly owned subsidiary of RIL, at their respective meetings held on November 26, 2021, approved revised scheme of amalgamation for amalgamation of ACL with RIL (the Companies) under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013, subject to requisite approvals. Under the aforesaid scheme, the appointed date for the amalgamation of ACL with and into RIL shall be April 01st 2021 and effective date shall be the date on which the conditions specified in Clause 24 of the Scheme are complied with. The application is pending before the Honâble National Company Law Tribunal (NCLT), Mumbai Bench-I. The Company is awaiting for the final order from NCLT, Mumbai Bench-I. After receiving the final order from the Honâble NCLT, the necessary adjustments will be made in the financials on scheme becoming effective.
Note 39: Relationship with Struck off Companies
The Company do not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956
Note 40: Other statutory information :
(I) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
(II) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(III) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(IV) The Company has not advanced or loaned or invested funds to any person(s) or entity(is), including foreign entities (Intermediaries) with the understanding that the Intermediary shall: (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(V) The Company has not received any fund from any person(s) or entity(is), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall: (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(VI) The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.
VII) The Company is not declared as willful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or consortium thereof or other lender in accordance with the guidelines on willful defaulters issued by the Reserve Bank of India.
Note 41: Figures of previous year have been regrouped, reclassified, and / or rearranged wherever necessary to confirm with current yearâs presentation.
Mar 31, 2021
C. Financial Risk Management C . i. Risk management framework
A wide range of risks may affect the Companyâs business and operational / financial performance. The risks that could have significant influence on the Company are market risk, credit risk and liquidity risk. The Companyâs Board of Directors reviews and sets out policies for managing these risks and monitors suitable actions taken by management to minimise potential adverse effects of such risks on the Companyâs operational and financial performance.
C. ii. Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Companyâs trade and other receivables, cash and cash equivalents and other bank balances. To manage this, the Company periodically assesses financial reliability of customers, taking into account the financial condition, current economic trends and analysis of historical bad debts and ageing of accounts receivable. The maximum exposure to credit risk in case of all the financial instruments covered below is restricted to their respective carrying amount.
(a) Trade and other receivables from customers
Credit risk in respect of trade and other receivables is managed through credit approvals, establishing credit limits and monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.
The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in the credit risk on an on-going basis through each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of default occurring on assets as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding-looking information such as:
i) Actual or expected significant adverse changes in business
ii) Actual or expected significant changes in the operating results of the counterparty
iii) Financial or economic conditions that are expected to cause a significant change to the counterparties ability to meet its obligation
iv) Significant changes in the value of the collateral supporting the obligation or in the quality of third party guarantees or credit enhancements
Financial assets are written off when there is no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the Company. When loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due, When recoverable are made, these are recognised as income in the statement of profit and loss.
The Company measures the expected credit loss of trade receivables and loan from individual customers based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends. Based on the historical data, loss on collection of receivable is not material hence no additional provision considered.
(b) Cash and cash equivalents and Other Bank Balances
The Company held cash and cash equivalents and other bank balances of Rs. 167.81 million at 31st March 2021 (P.Y. Rs. 152.03 million). The cash and cash equivalents are held with bank with good credit ratings and financial institution counterparties with good market standing. Also, Company invests its short term surplus funds in bank fixed deposit, which carry no / low mark to market risks for short duration therefore does not expose the Company to credit risk.
C. iii. Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset.
Liquidity risk is managed by Company through effective fund management of the Companyâs short, medium and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and other borrowing facilities, by continuously monitoring forecast and actual cash flows and by matching the maturity profiles of financial assets and liabilities.
The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk through the impact of rate changes on interest-bearing liabilities and assets. The Company manages its interest rate risk by monitoring the movements in the market interest rates closely.
The Company invests its surplus funds in various Equity and debt instruments . These comprise of mainly liquid schemes of mutual funds (liquid investments), Equity shares, Debentures and fixed deposits. This investments are susceptible to market price risk, mainly arising from changes in the interest rates or market yields which may impact the return and value of such investments. However due to the very short tenor of the underlying portfolio in the liquid schemes, these do not pose any significant price risk.
C. iv. Market risk
Market Risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk.
C. iv. a Currency risk
The Company is exposed to currency risk on account of its operating and financing activities. The functional currency of the Company is Indian Rupee. Our exposure are mainly denominated in U.S. dollars. The USD exchange rate has changed substantially in recent periods and may continue to fluctuate substantially in the future. The Companyâs business model incorporates assumptions on currency risks and ensures any exposure is covered through the normal business operations. This intent has been achieved in all years presented. The Company has put in place a Financial Risk Management Policy to Identify the most effective and efficient ways of managing the currency risks.
Note 35 : Capital Management
The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern ant to optimise returns to our shareholders. Management monitors the return on capital as well as the debt equity ratio and make necessary adjustments in the capital structure for the development of the business. The capital structure of the Company is based on managementâs judgement of the appropriate balance of key elements in order to meet its strategic and day - to - day needs. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.
The Companyâs debt to equity ratio at 31st March, 2021 was 0.48 (PY 0.25)
Note : For the purpose of computing debt to equity ratio, equity includes Equity share capital and Other Equity and Debt includes Long term borrowings, Short term borrowings and current maturities of long term borrowings.
Note 36: Figures of previous year have been regrouped, reclassified, and / or rearranged wherever necessary to confirm with current yearâs presentation.
Mar 31, 2018
1. Company Overview:
Responsive Industries Limited (âthe Companyâ), was incorporated on 13th July, 1982, CIN L99999MH1982PLC027797. The Company is a Public Limited Company incorporated and domiciled in Mumbai, Maharashtra, India and is having its registered office at Village Betagaon, Mahagaon Road, Boisor East, Palghar, Thane - 401 501. The Company has primary listing in Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) in India.
The Company is a major producer and supplier of various articles made out of Plastics / Polymers, which includes products like Vinyl flooring, Rigid PVC, Leather Cloth & Soft Sheetingâs.
Note:
During the year, the Companyhas revised the useful life of plant &machinery from 15yearsto20years with effect from July 1, 2017. Accordingly, the plant and machinery have been depreciated over remaining revised useful life.Consequently,the depreciation forthe year ended March 31, 2018 has reduced by Rs. 165.44 million having consequential impact on the plant and machinery and profit for the year.
For details of assets on lien, refer note no. 16
e. Rights / Preferences and restrictions attached to equity shares.
Each holder of equity shares is entitled to one vote per equity share. They are entitled to receive dividend proposed by the Board of Directors and approved by shareholders in General Meeting, right to receive annual report and other quarterly / half yearly / annual publications and right to get new shares proportionately in case of issuance of additional shares by the Company.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after the distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
General Reserve
General Reserve represents appropriation of retained earnings and are available for distribution to shareholders.
Retained Earnings
Retained Earnings represents surplus/accumulated earnings of the Company and are available for distribution to shareholders.
Note i: The loans are repayable in equal installments and the interest rate on above is ranging between 8.50% to 10.60%.They are secured by way of hypothecation of specific vehicles acquired under the arrangements.
Note ii: External Commercial Borrowings are secured by way of first pari passu charge on all fixed assets of the company and second ranking pari passu charge on all current assets of the Company.
The External Commercial Borrowings are repayable in 24 quarterly installments commencing from December 2012. Interest rate on ECB are 6 months USD LIBOR 456 basis points.
Note i: PCFC Loan of Rs.853.99 million (PY Rs.1022.61 million) are secured by first ranking pari passu hypothecation charge on entire current assets of the company both present and future.
Note ii: EBRD (Post Shipment) of Rs.309.60 million (PY Rs.160.47 million) are secured by first ranking pari passu hypothecation charge on entire current assets of the company both present and future.
Note iii: Buyers Credit of Rs 393.31 million (PY Rs 704.18 million) are secured by goods purchased under letter of credit.
Note 2 : Employee benefit expenses Post Employment Benefit Plans:
Defined Benefit Plans
The Company has the following Defined Benefit Plans:
Gratuity: In accordance with the applicable laws, the Company provides for gratuity, a defined benefit retirement plan (âThe Gratuity Planâ) covering eligible employees. The Gratuity Plan provides for a lump sum payment to vested employees on retirement (subject to completion of five years of continuous employment), death, incapacitation or termination of employment that are based on last drawn salary and tenure of employment. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation on the reporting date. The following are the details of defined benefit plans:
The estimates for future salary increases, considered in actuarial valuation, takeinto account inflation, seniority, promotion and other relevant factors.
Sensitivity analysis
Sensitivity/ malysis for each significant actuaeial assumption as stated above, showing how the defined benefit obligation would be affected, considering increase/decrease as at 31.03.2018 and 31.03.2017 is as below:
Sensitivity for significant actuarial assumptions is computed by varying one actuarial assumption used for the valuation keeping all other actuarial assumptions constant.
The expected future cash flows as at 31st March 2018 were as follows:
Note 3 : Disclosures on Related party transactions
i) Nature and Relationship of Related Parties
a) Subsidiary Companies
Axiom Cordages Limited Responsive Industries Limited, Hongkong
b) Holding Entity
Wellknown Business Ventures LLP
c) Directors & Key Management Personnel
1) Mr. Atit Agarwal Director
2) Mr. Rajesh Pandey Director
3) Ms. Alpa Ramani (upto 30th May, 2017) Company Secretary
4) Ms. Ruchi Jaiswal (from 30th May, 2017) Company Secretary
d) Relatives of Key Management Personnel
1) Mr. Abhishek Agarwal
2) Mrs. Saudamini Agarwal
e) Entities where Directors / Key Management Personnel have Significant Influence
1) One Source Trading Company LLP
2) Fairpoint Tradecom LLP
Note 2: No amount pertaining to related parties have been provided for as doubtful debts. Also, no amount has been written off / back which was due from / to related parties.
Note 4 : Segment Reporting
The Company is primarily engaged in the business of Manufacturing & Selling of articles made out of Plastics / Polymers. As such, the Company operates in a single segment and there are no separate reportable segments as defined in Ind AS 108 - âOperating Segmentsâ. The same is consistent with the information reviewed by the Chief Operating Decision Maker (CODM).
Geographical Information:
The operation of the Company comprises of local sales and export sales. The Management views the Indian market and Export market as distinct geographical areas. The following is the distribution of the Companyâs Revenues by geographical markets :
Note 5 : Financial instruments - Fair values and risk management
A. Accounting classification and fair values
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.
B. Measurement of fair values
Valuation techniques and significant unobservable inputs
The Fair Value of the Financial Assets & Liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
The following tables show the valuation techniques used in measuring Level 2 and Level 3 fair values, for financial instruments measured at fair value in the statement of financial position, as well as the significant unobservable inputs used.
C. Financial Risk Management C.i. Risk management framework
A wide range of risks may affect the Companyâs business and operational / financial performance. The risks that could have significant influence on the Company are market risk, credit risk and liquidity risk. The Companyâs Board of Directors reviews and sets out policies for managing these risks and monitors suitable actions taken by management to minimise potential adverse effects of such risks on the Companyâs operational and financial performance.
C.ii. Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Companyâs trade and other receivables, cash and cash equivalents and other bank balances. To manage this, the Company periodically assesses financial reliability of customers, taking into account the financial condition, current economic trends and analysis of historical bad debts and ageing of accounts receivable. The maximum exposure to credit risk in case of all the financial instruments covered below is restricted to their respective carrying amount.
(a) Trade and other receivables from customers
Credit risk in respect of trade and other receivables is managed through credit approvals, establishing credit limits and monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.
The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in the credit risk on an on-going basis through each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of default occurring on assets as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding-looking information such as:
i) Actual or expected significant adverse changes in business
ii) Actual or expected significant changes in the operating results of the counterparty
iii) Financial or economic conditions that are expected to cause a significant change to the counterparties ability to meet its obligation
iv) Significant changes in the value of the collateral supporting the obligation or in the quality of third party guarantees or credit enhancements
Financial assets are written off when there is a no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the Company. When loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due, When recoverable are made, these are recognised as income in the statement of profit and loss.
Note 6 : Financial instruments - Fair values and risk management (continued)
The Company measures the expected credit loss of trade receivables and loan from individual customers based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends. Based on the historical data, loss on collection of receivable is not material hence no additional provision considered.
(b) Cash and cash equivalents and Other Bank Balances
The Company held cash and cash equivalents and other bank balances of Rs. 147.82 million at 31st March 2018 (P.Y. Rs. 539.24 million). The cash and cash equivalents are held with bank with good credit ratings and financial institution counterparties with good market standing. Also, Company invests its short term surplus funds in bank fixed deposit, which carry no / low mark to market risks for short duration therefore does not expose the Company to credit risk.
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset.
Liquidity risk is managed by Company through effective fund management of the Companyâs short, medium and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and other borrowing facilities, by continuously monitoring forecast and actual cash flows and by matching the maturity profiles of financial assets and liabilities.
The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted.
C.iv. Market risk
Market Risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk.
C.iv.a Currency risk
The Company is exposed to currency risk on account of its operating and financing activities. The functional currency of the Company is Indian Rupee. Our exposure are mainly denominated in U.S. dollars. The USD exchange rate has changed substantially in recent periods and may continue to fluctuate substantially in the future. The Companyâs business model incorporates assumptions on currency risks and ensures any exposure is covered through the normal business operations. This intent has been achieved in all years presented. The Company has put in place a Financial Risk Management Policy to Identify the most effective and efficient ways of managing the currency risks.
Exposure to currency risk
The currency profile of financial assets and financial liabilities as at March 31, 2018, March 31, 2017 are as below:
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk through the impact of rate changes on interest-bearing liabilities and assets. The Company manages its interest rate risk by monitoring the movements in the market interest rates closely.
Exposure to interest rate risk
Companyâs interest rate risk arises primarily from borrowings. The interest rate profile of the Companyâs interest-bearing financial instruments is as follows.
Cash flow sensitivity analysis for variable-rate instruments
The sensitivity analysis below have been determined based on the exposure to interest rates for financial instruments at the end of the reporting year and the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period in the case of instruments that have floating rates. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents managementâs assessment of the reasonably possible change in interest rates :
C.iv.c Other price risk
The Company invests its surplus funds in various Equity and debt instruments . These comprise of mainly liquid schemes of mutual funds (liquid investments), Equity shares, Debentures and fixed deposits. This investments are susceptible to market price risk, mainly arising from changes in the interest rates or market yields which may impact the return and value of such investments. However due to the very short tenor of the underlying portfolio in the liquid schemes, these do not pose any significant price risk.
Sensitivity analysis
A reasonably possible strengthening / (weakening) of the Indian Rupee against US dollars at 31st March would have affected the measurement of financial instruments denominated in US dollars and affected profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases. In cases where the related foreign exchange fluctuation is capitalised to fixed assets, the impact indicated below may affect the Companyâs income statement over the remaining life of the related fixed assets or the remaining tenure of the borrowing respectively.
Note 7 : Capital Management
The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern ant to optimise returns to our shareholders. Management monitors the return on capital as well as the debt equity ratio and make necessary adjustments in the capital structure for the development of the business. The capital structure of the Company is based on managementâs judgement of the appropriate balance of key elements in order to meet its strategic and day - to - day needs. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.
The Companyâs debt to equity ratio at 31st March, 2018 was 0.36 (PY. 0.63)
Note : For the purpose of computing debt to equity ratio, equity includes Equity share capital and Other Equity and Debt includes Long term borrowings, Short term borrowings and current maturities of long term borrowings.
Note 8 : Prior Period Items
a) As per the requirement of Ind AS 12- âIncome Taxesâ deferred tax asset of Rs 175.31 lakhs on freehold land was not recognised in the opening balance sheet of 01-04-2015 during the time of transition of financial statements from IGAAP to Ind AS and consequently it was also not recognised in the financial year 2015-16 amounting to Rs 19.79 lakhs and Rs 15.27 lakhs for the FY 2016-17. This has been rectified by restating the comparative figures of the respective financial years in the balance sheet; statement of Profit & Loss and opening retained earnings by giving effect to each affected financial line items.
b) Under Ind AS 8 âAccounting Policies, Changes in Accounting Estimates and Errorsâ material prior period error shall be corrected by retrospective restatement. Hire Charges expenses of Rs 22.00 million which pertains to the FY 2016-17 were omitted to be included in the financials of previous year. Now the same has been included in the financial statements of 2016-17 by restating the required figures with corresponding effect on taxes and other affected line items of those financial statements.
Following are the financial items affected due to restatement in the comparative financial results presented hereunderfor the matters stated above for the FY 2016-17:
Note 9: Figures of previous year have been regrouped, reclassified, and / or rearranged wherever necessary to confirm with current yearâs presentation.
Mar 31, 2017
d. There are no bonus shares, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date.
e. Rights I Preferences and restrictions attached to equity shares.
Each holder of equity shares is entitled to one vote per equity share. They are entitled to receive dividend proposed by the Board of Directors and approved by shareholders in General Meeting, right to receive annual report and other quarterly / half yearly I annual publications and right to get new shares proportionately in case of issuance of additional shares by the Company.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after the distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders
Nature and Purpose of Reserves:
Capital Reserve
Capital Reserve is created on account of Promoters'' contribution received from Government of Maharashtra towards setting up of plant at Boisar Securities Premium Reserve
Securities Premium Reserve is used to record the premium on issue of shares. The reserve is utilized in accordance with the provisions of the Act.
General Reserve
General Reserve represents appropriation of retained earnings and are available for distribution to shareholders
Retained Earnings
Retained Earnings represents surplus/accumulated earnings of the Company and are available for distribution to shareholders
Note i: The Vehicle loans are repayable In equal Installments and the Interest rate on above is ranging between 8.50% to 10.60%. They are secured by way of hypothecation of specific vehicles acquired under the arrangements.
Note ii: External Commercial Borrowings are secured by way of first pari passu charge on all Property, plant & equipments of the company and second ranking pari passu charge on all current assets of the Company.
The External Commercial Borrowings are repayable in 24 quarterly installments commencing from December 2012. Interest rate on ECB are 6 months USD LIBOR 456 basis points.
Note i: PCFC Loan of Rs. 1,022.61 million (March 31, 2016 : Rs.1,044.32 million and April 1, 2015 : Rs. 1,077.77 million) are secured by first ranking pari passu hypothecation charge on entire current assets of the Company both present and future.
Note ii: EBRD (Post Shipment) loan of Rs. 160.47 million (March 31,2016 : Rs.127.16 million, April 1, 2015 :114.41 million) are secured by first ranking pari passu hypothecation charge on entire current assets of the Company both present and future.
Note iii : Buyer''s Credit of Rs.704.18 million (March 31, 2016 : Nil, April 1, 2015 : 717.76 million) are secured by goods purchased under Letter of credit.
Defined Benefit Plans
The Company has the following Defined Benefit Plans:
Gratuity:ln accordance with the applicable laws, the Company provides for gratuity, a defined benefit retirement plan (âThe Gratuity Plan") covering eligible employees. The Gratuity Plan provides for a lump sum payment to vested employees on retirement (subject to completion of five years of continuous employment), death, incapacitation or termination of employment that are based on last drawn salary and tenure of employment. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation on the reporting date. The following are the details of defined benefit plans:
The estimates for future salary increases, considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors
Sensitivity for significant actuarial assumptions is computed by varying one actuarial assumption used for the valuation keeping all other actuarial assumptions constant.
* For the purposes of this clause, the term " Specified Bank Notes" shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407( E), dated 8th November, 2016
Note 1: Segment Reporting
The Company is primarily engaged in the business of Manufacturing and Selling of PVC Flooring of different polymers and combination. As such, the Company operates in a single segment and there are no separate reportable segments as defined in Ind AS 108 - ''Operating Segmentsâ. The same is consistent with the information reviewed by the Chief Operating Decision Maker (CODM).
Geographical Information:
The operation of the Company comprises of local sales and export sales. The Management views the Indian market and Export market as distinct geographical segments. The following is the distribution of the Companyâs Revenues by geographical markets:
Note 2: Transition to Ind AS :
These are the Company''s first financial statements prepared in accordance with Ind AS. The Company has adopted all the Ind AS and the adoption was carried out in accordance with Ind AS 101 First time adoption of Indian Accounting Standards. The transition was carried out from Generally Accepted Accounting Principles in India (Indian GAAP) as prescribed under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014, which was the âPrevious GAAPâ.
The Significant Accounting Policies set out in Note No. 2 have been applied in preparing the financial statements for the year ended March 31, 2017, March 31, 2016 and the opening Ind AS Balance sheet on the date of transition i.e. April 1,2015.
In preparing its Ind AS Balance sheet as at April 1, 2015 and in presenting the comparative information for the year ended March 31, 2016, the Company has adjusted amounts previously reported in the financial statements prepared in accordance Previous GAAP. This note explains the principal adjustments made by the Company in restating its financial statements prepared in accordance with Previous GAAP, and how the transition from Previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows.
I) Explanation of transition to Ind AS
In preparing the financial statement, the Company has applied the below mentioned optional exemptions and mandatory exceptions.
Property, Plant and Equipment and Intangible Assets exemption:
The Company has elected to use the exemption available under Ind AS 101 to continue the carrying value for all of its property, plant and equipment and intangible assets as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition (i.e. April 1,2015).
Investment in equity shares other than Subsidiaries
The Company has measured its investment in equity shares other than subsidiaries held as at April 1, 2015 at Fair Value through Profit and Loss based on facts and circumstances at the date of transition to Ind AS.
Investment in Subsidiaries
The Company has elected to use the exemption to measure all investments in subsidiaries as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition (i.e. April 1,2015).
Note 3: Transition to Ind AS :
Long Term Foreign Currency Monetary Items
The Company has elected to continue the policy adopted under Previous GAAP for accounting the foreign exchange differences arising on settlement or transition of long term foreign currency monetary items outstanding as of March 31, 2016 i.e. foreign exchange differences arising on settlement or translation of long term foreign currency monetary items relating to acquisition of depreciable assets are adjusted to the carrying cost of the assets and depreciated over the balance life of the asset and in other cases, if any, accumulated in "Foreign Currency Monetary Item Translation Difference Account" and amortized over the balance period of the liability.
Classification and measurement of financial assets
Ind AS 101 requires an entity to assess classification of financial assets on the basis of facts and circumstances existing as on the date of transition. Further, the standard permits measurement of financial assets accounted at amortized cost based on facts and circumstances existing at the date of transition if retrospective application is impracticable.
Accordingly, the Company has determined the classification of financial assets based on facts and circumstances that exist on the date of transition. Measurement of financial assets accounted at amortized cost has been done retrospectively except where the same is impracticable.
Note4: Transition to Ind AS :
VII) Notes to reconciliations Note 1: Proposed Dividend
Under the previous GAAP, Proposed dividend including Dividend Distribution Tax were recognized as a Liability in the period in which they relate as the same was considered as an adjusting event. Linder Ind AS, Proposed dividend is recognized as Liability in the period in which it is authorized and distribution of the Dividend is no longer at the discretion of the Company.
Note 5: Remeasurements of defined benefit liabilities
Under previous GAAP, the Company recognized remeasurement of defined benefit liabilities under Statement of Profit & loss. Under Ind AS, remeasurements of defined benefit liabilities are recognized in Other Comprehensive Income
Note 6: Security deposit
Under the previous GAAP, interest free lease security deposits {that are refundable in cash on completion of lease term) are recorded at transaction price. Under Ind AS all financial assets are required to be recognized at fair value. Accordingly, the Company has fair valued the security deposits and the difference between the fair value and transaction value of the security deposit has been recognized as prepaid rent.
Note 7 Fair Valuation of Investments
Under previous GAAP, investment in equity instruments were classified into non - current and current investments. Long term investments were carried at cost less provision other than temporary in nature. Current investments were carried at lower of cost or fair value. Under Ind AS, these investments are require to be measured at fair value either through OCI (FVTOCI) or through Profit & loss (FVTPL).The company has opted to fair value these investments through Profit & loss (FVTPL). Accordingly, resulting fair value change of these investments have been recognized in retained eamingsas at the date of transition and subsequently in the Statement of Profit & Loss.
Note 8: Excise Duty
Under previous GAAP, revenue from sale of goods was presented net of excise duty on sales. Under IND AS, revenue from sale of goods is presented inclusive of excise duty. Accordingly, Excise Duty has been presented in the Statement of Profit and Loss as an expense.
Note 9: Trade discounts / rebates on Sales
Under previous GAAP, trade discounts / rebates on sales were classified as other expenses. However, as per Ind AS it is shown as reduction from Sales.
Note 10: Deferred taxes
Under Ind-AS accounting for deferred taxes is done using the Balance Sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base.
Note 11: Financial instruments - Fair values and risk management
A. Accounting classification and fair values
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.
B. Measurement of fair values
Valuation techniques and significant unobservable inputs
The Fair Value of the Financial Assets & Liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
The following tables show the valuation techniques used in measuring Level 2 and Level 3 fair values, for financial instruments measured at fair value in the statement of financial position, as well as the significant unobservable inputs used.
C. Financial Risk Management C.i. Risk management framework
A wide range of risks may affect the Companyâs business and operational / financial performance. The risks that could have significant influence on the Company are market risk, credit risk and liquidity risk. The Companyâs Board of Directors reviews and sets out policies for managing these risks and monitors suitable actions taken by management to minimize potential adverse effects of such risks on the companyâs operational and financial performance.
C.ii. Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Companyâs trade and other receivables, cash and cash equivalents and other bank balances. To manage this, the Company periodically assesses financial reliability of customers, taking into account the financial condition, current economic trends and analysis of historical bad debts and ageing of accounts receivable. The maximum exposure to credit risk in case of all the financial instruments covered below is restricted to their respective carrying amount.
(a) Trade and other receivables from customers
Credit risk in respect of trade and other receivables is managed through credit approvals, establishing credit limits and monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.
The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in the credit risk on an on-going basis through each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of default occurring on assets as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding-looking information such as:
i) Actual or expected significant adverse changes in business
ii) Actual or expected significant changes in the operating results of the counterparty
iii) Financial or economic conditions that are expected to cause a significant change to the counterparties ability to meet its obligation
iv) Significant changes in the value of the collateral supporting the obligation or in the quality of third party guarantees or credit enhancements
Financial assets are written off when there is a no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the Company. When loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. When recoverable are made, these are recognized as income in the statement of profit and loss.
The Company measures the expected credit loss of trade receivables and loan from individual customers based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends. Based on the historical data, loss on collection of receivable is not material hence no additional provision considered.
(b) Cash and cash equivalents and Other Bank Balances
The Company held cash and cash equivalents and other bank balances of Rs. 539.24 million at 31st March 2017 (31st March 2016: Rs. 552.83 million, 1st April 2015 : Rs. 574.78 million). The cash and cash equivalents are held with bank with good credit ratings and financial institution counterparties with good market standing. Also, Company invests its short term surplus funds in bank fixed deposit, which carry no / low mark to market risks for short duration therefore does not expose the Company to credit risk.
Note 12: Financial instruments - Fair values and risk management (continued)
C.iii. Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset.
Liquidity risk is managed by Company through effective fund management of the Companyâs short, medium and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and other borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted.
C.iv.b Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk through the impact of rate changes on interest-bearing liabilities and assets. The Company manages its interest rate risk by monitoring the movements in the market interest rates closely.
Cash flow sensitivity analysis for variable-rate instruments
The sensitivity analysis below have been determined based on the exposure to interest rates for financial instruments at the end of the reporting year and the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period in the case of instruments that have floating rates. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents managementâs assessment of the reasonably possible change in interest rates:
C.iv.c Other price risk
The Company invests its surplus funds in various Equity and debt instruments . These comprise of mainly liquid schemes of mutual funds (liquid investments), Equity shares, Debentures and fixed deposits. This investments are susceptible to market price risk, mainly arising from changes in the interest rates or market yields which may impact the return and value of such investments. However due to the very short tenor of the underlying portfolio in the liquid schemes, these do not pose any significant price risk.
C.iv. Market risk
Market Risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk.
C.iv.a Currency risk
The Company is exposed to currency risk on account of its operating and financing activities. The functional currency of the Company is Indian Rupee. Our exposures are mainly denominated in U.S. dollars. The USD exchange rate has changed substantially in recent periods and may continue to fluctuate substantially in the future. The Companyâs business model incorporates assumptions on currency risks and ensures any exposure is covered through the normal business operations. This intent has been achieved in all years presented. The Company has put in place a Financial Risk Management Policy to Identify the most effective and efficient ways of managing the currency risks.
Exposure to currency risk
The currency profile of financial assets and financial liabilities as at March 31, 2017, March 31, 2016 and April
A reasonably possible strengthening I (weakening) of the Indian Rupee against US dollars at 31st March would have affected the measurement of financial instruments denominated in US dollars and affected profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases. In cases where the related foreign exchange fluctuation is capitalised to fixed assets or recognized directly in reserves, the impact indicated below may affect the Company''s income statement over the remaining life of the related fixed assets or the remaining tenure of the borrowing respectively.
Note 13: Capital Management
The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimize returns to its shareholders. Management monitors the return on capital as well as the debt equity ratio and make necessary adjustments in the capital structure for the development of the business. The capital structure of the Company is based on management''s judgment of the appropriate balance of key elements in order to meet its strategic and day - to -day needs. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.
The Companyâs debt to equity ratio at 31st March, 2017 was 0.63 (31st March 2016:0.72 and 1st April, 2015:1.00)
Note : For the purpose of computing debt to equity ratio, equity includes Equity share capital and Other Equity and Debt includes Long term borrowings, Short term borrowings and current maturities of long term borrowings.
Note 14: Figures of previous year have been regrouped, reclassified, and / or rearranged wherever necessary to confirm with current year''s presentation.
Mar 31, 2016
*NOTE:
The Companyâs manufacturing facility at Boisar has been granted âMega Projectâ status by Government of Maharashtra and therefore is eligible for Industrial Promotion Subsidy (IPS) under Packaged Scheme of Incentive (PSI) 2007. The company has been granted Eligibility Certificate issued by the Directorate of Industries, Government of Maharashtra in this regard.
IPS consists of the following:
1. Electricity Duty exemption for the period of 7 years from the date of commencement of commercial production (from 01/05/2010 to 30/04/2017).
2. 50% exemption from payment of Stamp duty under relevant Government Resolution of Revenue and Forest Department (from 01/04/2010 to 31/03/2017).
3. To the extent of taxes paid to the State Government within a period of 7 years whichever is lower.
IPS will however be restricted to 50% of the eligible fixed capital investments made from 1st April 2007 to 31â March 2012.
The Eligibility Certificate issued allows maximum subsidy of Rs. 2,502.68 million.
The Packaged Scheme of Incentive (PSI) 2007 is for intensifying and accelerating the process of dispersal of industries to the less developed regions and promoting high tech industries in the developed areas of the State coupled with the object of generating mass employment opportunities.
Further, in terms of the Accounting Standard (AS 12) âAccounting for Government Grantsâ prescribed by Companies (Accounting Standards) Amendment Rules, 2006, eligible incentive is considered to be in the nature of promotersâ contribution. Therefore incentive of Rs.233.83 million received during the year (P.Y. Rs.327.81 million) has been credited to the Capital Reserve.
Note 1: The vehicle loans are repayable in equal installments aggregating to Rs. 8.26 million (PY Rs. 20.36 million). The interest rate on above is ranging between 8.50% to 10.60%.
Loans against vehicles from Banks are secured by way of hypothecation of specific vehicles acquired under the arrangements.
Note 2: External Commercial Borrowings are secured by way of first pari passu charge on all fixed assets of the Company and second ranking pari passu charge on all current assets of the Company.
The External Commercial Borrowings are repayable in 24 quarterly installments commencing from December 2012. Interest rate on ECB are 6 months USD LIBOR 456 basis points.
Note 3: PCFC Loan of Rs.l,044.32 million (PY Rs.l,077.77 million) are secured by first ranking pari passu hypothecation charge on entire current assets of the company both present and future.
Note 4: EBRD (Post Shipment) of Rs.127.16 million (PY Rs.114.41 million) are secured by first ranking pari passu hypothecation charge on entire current assets of the Company both present and future.
Note 5: Buyer''s Credit of Rs.Nil (P.Y Rs.717.76 million) was secured by goods purchased under Letter of credit.
Note 6: Related Parties as disclosed by Management and relied upon by auditors.
Note 7: No amount pertaining to related parties have been provided for as doubtful debts. Also, no amount has been written off / back which was due from / to related parties.
Note: As the liabilities for gratuity are provided on actuarial basis for the Company as a whole the amounts pertaining to the Directors is not ascertainable & therefore not included above.
iii) General Description of significant defined plans Gratuity Plan
Gratuity is payable to all eligible employees of the Company on death or on resignation, or on retirement after completion of five years of service. In assessing the Company''s Post Retirement Liabilities, the company monitors mortality assumptions and uses up-to-date mortality tables. The base being the Indian Assured Lives Mortality (2006-08) ultimate''s.
8. Segment Reporting
a) Primary (Business) Segment:
As the Companyâs business consists of one reportable business segment of Manufacturing and Selling of PVC Flooring of different polymers & combination and hence, no separate disclosure pertaining to attributable Revenues, Profits, Assets, Liabilities and Capital employed are given.
b) Secondary (Geographical) Segment:
Secondary segment reporting is performed on the basis of geographical location of the customers. The operation of the Company comprises of local sales and export sales. The Management views the Indian market and Export market as distinct geographical segments. The following is the distribution of the Companyâs sales by geographical markets :
a) The Company has not given any loan or guarantee or provided security in connection with loan to any other body corporate or person as specified in section 186 (4) of Companies Act, 2013.
9. Figures of the previous year have been regrouped, reclassified and/or rearranged wherever necessary to confirm with current yearâs presentation.
Mar 31, 2015
1 Company Overview
Responsive Industries Limited ("the Company"), is a major producer and
supplier of various products like Vinyl flooring, Rigid PVC, Leather
Cloth & Soft Sheeting''s. Applications for Vinyl Flooring include
Printing Flooring & Other Flooring and in case of Rigid PVC, it
includes Packaging of Pharmaceutical Products in Pharma industry.
2 There are no bonus shares, shares issued for consideration other
than cash and shares bought back during the period of five years
immediately preceding the reporting date.
3 Rights / Preferences and restrictions attached to equity shares.
Each holder of equity shares is entitled to one vote per equity share.
They are entitled to receive dividend proposed by the Board of
Directors and approved by shareholders in General Meeting, right to
receive annual report and other quarterly / half yearly / annual
publications and right to get new shares proportionately in case of
issuance of additional shares by the Company.
In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive remaining assets of the Company,
after the distribution of all preferential amounts. The distribution
will be in proportion to the number of equity shares held by the
shareholders.
4 Disclosures on Related Parties transactions
i)Nature and Relationship of Related Parties
a) Subsidiary Company
Axiom Cordages Limited
b) Holding Entity
Wellknown Business Ventures LLP
c) Investment in Partnership Firm
1) Maharashtra Holdings
2) Mangaon Holdings
d) Directors & Key Management Personnel
1) Mr. Atit Agarwal Whole-Time Director
2) Mrs. Swati Agarwal Director
3) Mr. Rajesh Pandey Director
4) Miss. Alpa Ramani Company Secretary
e) Relatives of Key Management Personnel
1) Mr. Abhishek Agarwal
2) Mrs. Saudamini Agarwal
f) Entities where Key Management Personnel have Significant Influence
1) One Source Trading Company LLP
2) One Source Enterprises LLP
3) AA Superior Enterprises LLP
5 Pursuant to compliance with the provisions of revised schedule II of
the Act, the Management has reviewed / determined the remaining useful
life of the tangible fixed assets. Accordingly, the depreciation on
tangible fixed assets is provided for in accordance with the provisions
of schedule II of the Act. On account of the above change, depreciation
for the current year is lower by 6.16 millions. As per the transitional
provisions of Schedule II of the Companies Act, 2013 , and in line with
the Notification dated August 29,2014 issued by Ministry of Corporate
Affairs (MCA), the Company has charged Rs. 5.41 millions to the
statement of Profit and Loss on account of the carrying amount of assets
where the remaining useful life of the asset is Nil . As permitted by
the notification dated August 29,2014 issued by the Ministry of
Corporate Affairs, the company will comply with the requirements of
paragraph 49a) of the Notes to Schedule II of the Companies Act,2013
relating to componentization from the
6 Segment Reporting
a) Primary (Business) Segment:
As the Company''s business consists of one reportable business segment
of Manufacturing and Selling of articles made out of plasticspolymers
hence,no separate disclosure pertaining to attributable Revenues,
Profits, Assets, Liabilities and Capital employed are given.
b) Secondary (Geographical) Segment:
Secondary segment reporting is performed on the basis of geographical
location of the customers. The operations of the Com comprises of local
sales and export sales. The Management views the Indian market and
Export market as distinct geographical segm The following is the
distribution of the Company''s sales by geographical markets :
7 Disclosure under section 186 (4) of Companies Act,2013
a) The Company has not given any loan or guarantee or provided security
in connection with loan to any other body corporate or person as
specified in section 186 (4) of Companies Act, 2013.
8 Figures of the previous year have been regrouped, reclassified
and/or rearranged wherever necessary to confirm with current year''s
presentation.
Mar 31, 2014
Not available
Mar 31, 2013
1. Company Overview
Responsive Industries Limited (''RIL'' or ''the Company''), is a
major producer and supplier of various products like Vinyl flooring,
Rigid PVC, Leather Cloth & Soft Sheetings. Applications for Vinyl
Flooring include Printing Flooring & Other Flooring and in case of
Rigid PVC, it includes Packaging of Pharmaceutical Products in Pharma
industry.
2. Disclosures on Related Parties transactions
i) Nature and Relationship of Related Parties
a) Subsidiary Company
Axiom Cordages Limited
b) Fellow Subsidiary Company
Sun Plastochem Limited
c) Holding Company
Wellknown Business Ventures Private Limited
d) Investment in Partnership Firm
1) Maharashtra Holdings
2) Mangaon Holdings
e) Key Management Personnel
1) Mr. Atit Agarwal Whole-Time Director
2) Mrs. Swati Agarwal Director
3) Mr. Rajesh Pandey Director
4) Mr. S. S. Thakur Independent Director
5) Mr. V. K. Chopra Independent Director
6) Mr. Michael Freedman Independent Director
f) Relatives of Key Management Personnel
1) Mr. Abhishek Agarwal
2) Mrs. Saudamini Agarwal
3) Omprakash Agarwal H.U.F.
4) Sharadkumar Agarwal H.U.F.
g) Entities where Key Management Personnel have Significant Influence
1) OneSource Trading Company LLP
2) OneSource Enter pises LLP
3) AASuperior Enterprises LLP
iii) General Description of significant defined plans Gratuity Plan
Gratuity is payable to all eligible employees of the Company on death
or on resignation, or on retirement after completion of five years of
service. In assessing the Company''s Post Retirement Liabilities, the
company monitors mortality assumptions and uses up- to-date mortality
tables. The base being the LIC1994-96 ultimate tables.
4. Details of dues to Micro, Small and Medium Enterprises as per the
Micro, Small and Medium Enterprises Development Act, 2006 Particulars
The principal amount and the interest due thereon remaining unpaid to
any supplier as at the end of each accounting year
5. Segment Reporting
a) Primary (Business) Segment:
As the Company''s business consists of one reportable business segment
of Manufacturing and Selling of Synthetic Ropes of different polymers &
combination and hence, no separate disclosure pertaining to
attributable Revenues, Profits, Assets, Liabilities and Capital
employed are given.
b) Secondary (Geographical) Segment:
Secondary segment reporting is performed on the basis of geographical
location of the customers. The operation of the Company comprises of
local sales and export sales. The Management views the Indian market
and Export market as distinct geographical segments. The following is
the distribution of the Company''s sales by geographical markets:
Mar 31, 2012
Note 1:
I. Company Overview
Responsive Industries Limited ('RIL' or 'the Company'), is a major
producer and supplier of various products like Vinyl flooring, Rigid
PVC, Leather Cloth & Soft Sheeting's. Applications for Vinyl flooring
include Printing Flooring & Other Flooring and in case of Rigid PVC, it
include Packaging of Pharmaceutical Products in Pharma industry.
Note: The company has only one class of equity shares having a per
value of Rs. 1 per share. Each holder of equity shares is entitled to
one vote per share. The company declares dividend in Indian rupees. The
dividend proposed by Board of Directors is subject to the approval of
the shareholders in ensuing Annual General Meeting.
In the event of liquidation of the company, the holders of equity
shares will be entitled to receive assets of the company, after the
distribution of all preferential amounts. The distribution will be in
proportion to the number of equity shares held by the shareholders
The Company has sufficient authorized capital to cover the share
capital amount resulting from allotment of shares pursuant to such
share application money.
The shares shall be allotted once the approval from the respective stock
exchanges is obtained.
The loans are repayable in equal installments aggregating to Rs. 3.71
millions (PY Rs. 11.00 millions).
The interest rate on above is ranging between 8.50 to 10.60%.
Loans against vehicles from Banks are secured by way of hypothecation
of specific vehicles acquired under the arrangements.
This is a External Commercial Borrowings which is secured by way of
first pari passu charge on all fixed assets of the company and second
ranking pari passu charge on all current assets of the company.
PCFC Loan amounting to Rs. 47.86 millions & EBRD (Post Shipment) Loan
of Rs. 223.96 millions secured by first ranking pari passu
hypothecation charge on entire current assets of the company and second
ranking pari passu charge on entire fixed assets of the company i.e.
Plant & Machinery and Land & Building.
PCFC Loan amounting to Rs. 332.98 millions & EBRD (Post Shipment) Loan
of Rs. 81.40 millions secured by first pari passu hypothecation charge
on entire current assets of the company and first hypothecation charge
on entire Plant & Machinery of the company.
EBRD (Post Shipment Loan) secured by first pari passu charge on
hypothecation of book-debts and other current assets with other
consortium banks.
Buyer's Credit amounting to Rs. 143.17 millions secured by first pari
passu charge on entire assets with other banks and second ranking pari
passu charge on entire movable fixed assets of the Company.
Buyer's Credit amounting to Rs. 271.21 millions secured by
hypothecation of goods procured under letter of Credit and additional
charge on hypothecated stocks and book debts.
Working Capital Loan of Rs. 371.01 millions secured by hypothecation of
Investments in Mutual Funds.
2. Contingent Liabilities
(Rs. in Millions)
31-Mar-12 31-Mar-11
Details of Contingent Liabilities - -
34. Disclosures on Related Parties transactions
i) Nature and Relationship of Related Parties
a) Subsidiary Company
Axiom Cordages Limited
b) Fellow Subsidiary Company
Sun Plastochem Limited
c) Holding Company
Wellknown Business Ventures Private Limited
d) Investment in Partnership Firm
1) Maharashtra Holdings
2) Mangaon Holdings
e) Key Management personnel
1) Mr. Atit Agarwal Whole-Time Director
2) Mrs. Swati Agarwal Director
3) Mr. Rajesh Pandey Director
4) Mr. Shobha Singh Thakur Independent Director
5) Mr. Vijay Kumar Chopra Independent Director
6) Mr. Michael Freedman Independent Director
f) Relatives of Key Management Personnel
1) Mr. Abhishek Agarwal
2) Omprakash Agarwal H.U.F.
3) Sharadkumar Agarwal H.U.F.
g) Entities where Key Management Personnel have significant influence
1) One Source Trading Company LLP
2) One Source Enterprises LLP
3) AA Superior Enterprises LLP
Note: As the liabilities for gratuity are provided on actuarial basis
for the Company as a whole the amounts pertaining to the Directors is
not ascertainable & therefore not included above.
iii) General Description of Significant defined plans
Gratuity Plan
Gratuity is payable to all eligible employees of the Company on death
or on resignation after completion of five years of service. In
assessing the Company's Post Retirement liabilities, the company
monitors mortality assumptions and uses up-to-date mortality tables.
The base being the LIC 1994-95 ultimate tables.
3. Segment Reporting
a) Primary (Business) Segment:
As the Company's business consists of one reportable business segment
of Manufacturing and Selling of Synthetic Ropes of different polymers
& combination and hence, no separate disclosure pertaining to
attributable Revenues, Profits, Assets, liabilities and Capital
employed are given.
b) Secondary (Geographical) Segment:
Secondary segment reporting is performed on the basis of geographical
location of the customers. The operation of the Company comprises of
local sales and export sales. The Management views the Indian market
and Export market as distinct geographical segments. The following is
the distribution of the Company's sales by geographical markets:
4. As notified by Ministry of Corporate Affairs, Revised Schedule VI
under the Companies Act, 1965 is applicable to the financial Statements
for the financial year commencing on or after 1st April, 2011.
Accordingly, the financial Statements for the year ended March 31, 2012
are prepared in accordance with the Revised Schedule VI. The amounts
and disclosures included in the financial Statements of the previous
year have been reclassified to confirm to the requirements of Revised
Schedule VI.
Mar 31, 2011
I. Company Overview
Responsive Industries Limited ('RIL' or 'the Company'), is a major
producer and supplier of various products like Vinyl flooring, Rigid
PVC, Leather Cloth & Soft Sheeting's. Applications for Vinyl Flooring
include Printing Flooring & Other Flooring and in case of Rigid PVC, it
includes Packaging of Pharmaceutical Products in Pharma industry.
1. In the opinion of the Board, the Current Assets, Loans & Advances
are approximately of the value stated in the financial statements and
are realizable in the ordinary course of business. The provision for
all known liabilities is adequate.
2. In respect of balance confirmations sought by the Company from
various parties reflected under Sundry Debtors, Sundry Creditors and
Loans & Advances some have responded to the request of the Company. As
such balances of Sundry Debtors, Sundry Creditors and Loans & Advances
are taken as appearing in the books of accounts and are subject to
confirmation and reconciliation, if any. Consequential impact, if any,
will be considered as and when determined.
3. No events or transactions have occurred since the date of Balance
Sheet or are pending that would have a material effect on the financial
statements at that date or for the period then ended, other than those
reflected or fully disclosed in the books of account.
4. Sub division of shares
Effective October 11, 2010 the Company has subdivided the face value of
equity shares from Rs.10 each to Rs.1 each (sub division), after
obtaining shareholders' approval vide special resolution passed in the
28th Annual General Meeting of the Company held on 10th September,
2010. The basic and diluted earnings per share disclosed, (Refer Note
12 below) have been computed for the current year and recomputed for
the previous year based on the revised face value of Rs.1 each.
5. Secured Loans:
i. Working Capital Loan from Banks:
It is secured by first charge in the form of Floating charge on whole
of the current assets, book debts & Movable Property. Further, secured
by second ranking pari passu charge on entire movable Fixed Assets of
the Company both present & future.
ii. Buyer's Credit:
It is secured by first pari passu charge on entire assets and second
ranking pari passu charge on entire movable fixed assets of the
Company.
iii. Vehicle Loans:
It is secured by specific assets.
6. During the year, in order to comply with the Accounting Standard
(AS) 15 (Revised 2005) "Employee Benefits" as notified by the Companies
Accounts Standard, Rule 2006, the method of accounting of Gratuity has
been changed from cash basis to accrual basis of accounting and
accordingly provision has been made as on 31st March, 2011 on the basis
of acturial valuation. Due to change in this accounting policy, the
profit for the year is lower by Rs. 5.21 Million having consequential
effect on the Reserves and Surplus and Current Liabilities.
In assessing the Company's Post Retirement Liabilities, the Company
monitors mortality assumptions and uses up-to-date mortality tables.
The base being the LIC 1994-96 ultimate tables.
Expected return on plan assets is based on expectation of the average
long term rate of return expected on investments of the fund during the
estimated term of the obligations.
The estimates of future salary increase, considered in actuarial
valuation, take account of inflation, seniority, promotion and other
relevant factors, such as supply and demand in the employment market
7. The Company had issued 7,000 (0% compulsorily convertible
debentures of Rs.100,000/- each) in the Previous Year. The said
debentures have been converted into 1,372,500 equity shares at a price
of Rs. 510/- per share as per Board Resolution passed in the Board
Meeting held on 9th August, 2010. The said conversion is at a Premium
of Rs.500/- per share.
8. Related Party Disclosures
(a) Key Management Personnel
Mr. Atit Agarwal Whole time Director
Rajesh Pandey Director
(b) Relatives of key management personnel
i) Mr. Abhishek Agarwal
ii) M/s Om Prakash Agarwal H.U.F.
iii) M/s Sharad Kumar Agarwal H.U.F.
(c) Subsidiary
Axiom Cordages Limited
(d) Fellow Subsidiary
Sun Plastochem Limited
(e) Holding Company
Welknown Business Ventures Private Limited
(f) Enterprise owned or significantly influenced by Key Management
Personnel or their relatives:
i) One Source Trading Company LLP (with effect from 25th March, 2011)
ii) One Source Enterprises LLP Hi) AA Superior Enterprises LLP
There are no transactions during the current year with the related
parties mentioned in (b), (d) and (f) (ii) & (iii)
Following are the transactions with the related parties mentioned in
(a), (c), (e) and (f) (i) above
9. Segmental Information
i) Primary (Business) Segment
As the company's business consists of one reportable business segment
of Plastic products, hence, no separate disclosures pertaining to
attributable Revenues, Profits, Assets, Liabilities, Capital Employed
are given.
10. Amounts due to Micro, Small and Medium Enterprise:
As per the requirement of section 22 of the Micro, Small and Medium
Enterprises Development Act, 2006 following information has been
disclosed. This information takes into account only those suppliers who
have responded to the enquiries made by the Company for this purpose.
11. The previous year's figures have been regrouped, rearranged,
reclassified and reworked wherever necessary. Amounts and other
disclosures for the preceding year are included as an integral part of
the current year financial statements and are to be read in relation to
the amounts and other disclosures relating to the current year.
Mar 31, 2010
I) Company Overview
Responsive Industries Limited ("RIL" or "the Company), is a major
producer and supplier of various products like Vinyl flooring. Rigid
PVC. Leather Cloth & Soft Sheetings. Applications for Vinyl Flooring
include Printing Flooring & Other Flooring and in case of Rigid PVC, it
includes Packaging of Pharmaceutical Products in Pharma industry.
1) The Schedules referred to in the Balance Sheet & Profit & Loss
Account form an integral part of the Accounts.
2) In the opinion of the Board, the Current Assets. Loans & Advances
are approximately of the value stated in the financial statements and
are realisable in the ordinary course of business. The provision for
all known liabilities is adequate.
3) In respect of balance confirmations sought by the Company from
various parties reflected under Sundry Debtors, Sundry Creditors and
Loans & Advances, very few have responded to the request of the
Company. As such balances of Sundry Debtors, Sundry - æ - Creditors
and Loans & Advances are taken as appearing in the books of accounts
and are subject to confirmation and reconciliation. if any.
Consequential impact, if any will be considered as and when determined.
4) No events or transactions have occurred since the date of Balance
Sheet or are pending that would have a material effect on the financial
statements at that date or for the period then ended, other than those
reflected or fully disclosed in the books of account.
5) Current liabilities includes unpaid dividend of Rs. 3.870 (P.Y. Rs.
3.870).
6) Contingent Liabilities not provided for in respect of Letter of
Credit issued by Bank amounting to Rs. 232.18 Million (P. Y. Rs. Nil).
7) No Provision for Leave Encashment & Gratuity as (equiied by AS-1S
(Revised 2005) Employee Benefits notified by Companies (Accounting
Standard) Rules 2006, has been made and the same shall be accounted few
as and when paid.
8) Estimated amount of Contracts remaining to be executed on capital
account and not provided for (net of advances) is Rs. Nil (P.Y. Rs.
21.56 Million).
9) The Company has continued to adjust the foreign currency exchange
differences of Rs. 8.93 Million (P.Y. Rs. 55.39 Million) on amount due
to the foreign suppliers of fixed assets to whom dues are payable
exceeding one year to the carrying cost of fixed assets which is in
accordance with the notification no. G.S.R. 25(E) issued by the
Ministry of Corporate Affairs. New Delhi dated 31st March. 2009.
however at variance to the treatment prescribed in accounting Standard
(AS -11) on "Effects of Changes in Foreign Exchange Rates" notified in
the Companies (Accounting Standards) Rules 2006.
10)Closing stock of Finished goods amounting to Rs. 11.87 Million (P.Y.
Rs. Nil) includes Excise duty component amounting to Rs. 1.11 Million
(P.Y. Rs. Nil).
11) During the year the Company has issued 7.000 (0% compulsorily
convertible debentures of Rs. 1,00,000/- each). The said debentures
shall mandatorily be converted by the Company into equity shares on 9th
August. 2010.
12) Taxes on Income
a) Provision for taxation for the accounting year has been made in
accordance with the provisions of the Income Tax Act. 1961.
b) In terms of Accounting Standard on "Accounting for Taxes on Income"
(AS 22) the Company has recognised Deferred Tax Liability amounting to
Rs. 43.61 Million (P.Y. Rs. 7.47 Million) for the year ended 31st March
2010 in the Profit & Loss Account.
13) Related Party Disclosures
a) Key Management Personnel
i) Mr. Atit Agarwal Whole-Time Director
ii) Mrs. Swati Agarwal Director
iii) Mr. Santosh Shinde Director
iv) Mr. Ashok Jha Director
v) Mr. Rajesh Pandey Director
vi) Mr. Ramesh Mistry Director
b) Relatives of key management personnel
i) Mr. Abhisek Agarwal
ii) M/s. Om Prakash Agarwal H.U.F.
c) Subsidiary
Axiom Cordages Ltd. {Formerly known as Axiom Impex International Ltd.)
d) Fellow Subsidiary
Sun Plastocbem Limited
e) Holding Company
Welknown Business Ventures Private Limited
14) The previous years figures have been regrouped, rearranged,
reclassified ana reworked wherever necessary. Amounts and other
disclosures for the preceding year are included as an integral part of
the current year financial statements and are to be read in relation to
the amounts and other disclosures relating to the current year.
When it comes to shaping the future, there are three kinds of people:
those who let it happen, those who make it happen, and those who wonder
what happened. At Axiom Cordages, we try to belong to the second
category on the strength of our research and development capabilities
and an inherent drive towards innovation and business growth.
The external environment Is also enabling in more senses than one. The
truth of the statement is borne out by the fact that the world is
witnessing green shoots of recovery after a prolonged period of
socio-economic hardship and de-growth. There has been a discernible
improvement in the global economy, although the extent of the recovery
varies from one country to another. Even the Indian economy has
demonstrated strong resilience, notwithstanding the global economic
crisis, as a result of two factors: the proactive measures undertaken
by the Indian Government and sustained growth in domestic demand. The
demand In the plastic Industry continued to grow In line with the
countrys GDP growth, growing at about 7-8 % annually. Axiom Cordages
has continued to perform well, riding on the aest of these positive
realities. While our revenues and post-tax profits increased by57% and
25% compared to last year, our operating margins touched 16%.
Competing globally
Axiom generates more than half of its revenues through its exports
across 65 countries. Our significant technology investments have
enabled us to manufacture products that are globally accepted. All our
products have received quality certifications from the Lloyds (Germany)
for the requisite minimum guaranteed breaking strength, In line with
international standards. The Companys products are well accepted in
the International market for their quality excellence and competitive
pricing.
Mar 31, 2009
1 Figures in brackets represents outflows.
2 Previous Year figures have been recast/restated wherever necessary.
3. Amalgamation of Responsive Polymers International Ltd. With the
Company (RID
- Pursuant to the Scheme of Amalgamation under section 391 to 394 of
the Companies Act, 1956 (the Scheme) of the erstwhile Responsive
Polymers International Limited (RPIL) with the Company, as approved by
the Honble High Court of Mumbai vide its Order dated 13th February
2009, all the assets and liabilities of RPIL has been transferred to
and vested in the Company with effect from the appointed date i.e. 1st
July 2006, on a going concern basis. The Scheme has accordingly being
given effect to in these financial statements and operational results
for the year of RPIL have been incorporated in the Companys financial
statements
- The operations of RPIL included manufacturing of I VC/Plastic
products which is in line with that of the Company.
- The amalgamation has been accounted for under the " Pooling of
Interest Method " as prescribed under Accounting Standard (AS 14 )
Accounting for Amalgamations issued by the ICAI. Accordingly all the
assets, liabilities and reserves of the erstwhile RPIL have been taken
over at their respective book values by the Company
- Pursuant to amalgamation of RPIL with the Company 38,00,000 Equity
Shares of Rs.10/- each fully paid up of the Company were issued and
allotted to the shareholders of erstwhile RPIL in accordance with swap
ratio of 2:3 ( modified from swap ratio of 1: 6 on account of 28,50,000
Equity Shares of Rs.10/- each fully paid up of the Company declared and
allotted as bonus shares in the ratio of 1:3 by the Company post the
appointed date ) These 28,50,000 Equity Shares are disclosed in Share
Capital Suspense Account pending increase in Authorised Share Capital
of the Company .
- The Company has written off the Preference Share Capital of Rs.192.93
Millions which was subscribed and paid-up Preference Share Capital made
in RPIL as it ceases to exist after the amalgamation
- Debit Balance in Profit & Loss Account amounting to Rs.46.24 Millions
of erstwhile RPIL is adjusted in Profit & Loss Account of the Company.
- Total Current Assets Rs.2.42 Millions and Current Liabilities Rs.
0.97 millions taken over on Amalgamation are transferred to respective
account.
- Resultant Gain of Rs.19.00 millions transferred to General Reserve
Account.
- In view of above, figures in respect of the current financial year
are not strictly comparable with those of the previous year since the
current year figures include the operations of RPIL on account of
amalgamation. Previous year figures are re-grouped, re- arranged and
re-casted wherever considered necessary.
4. Taxes on Income
a. Provision for taxation for the accounting year has been made in
accordance with the provisions of the Income Tax Act, 1961.
b. In terms of Accounting Standard on "Accounting for Taxes on Income"
(AS 22) the Company has recognized Deferred Tax Liability amounting to
Rs. 7.47 Millions for the year ended 31st March 2009 in the Profit &
Loss Account.
5. Related Party Disclosures
(a) Key Management Personnel
i) Mr. Santosh Shinde Director
ii) Mr. Ashok Jha Director
iii) Mr. Rajesh Pandey Director
iv) Mr. Atit Agarwal Director
(b) Relatives of key management personnel
i) Mr. Abhisek Agarwal
ii) M/s. Om Prakash Agarwal (H.U.F.)
(c) Subsidiary and Fellow Subsidiary
i) Axiom Impex International Limited (Subsidiary)
ii) Sun Plastochem Limited (Fellow Subsidiary)
(d) Holding Company
i) Wclknown Business Ventures Private Limited
6. Additional Information Pursuant to the Provision of Part II of the
Schedule VI of the Companies Act 1956.
A. Quantitative Information:
i) Installed Capacity N.A.
ii) Purchase/Production, Consumption/Sales/Stock:
15. Foreign Currency Exposure
Debtors - Non hedged amount $ .06 Millions
Advances from Djbtors - Non hedged amount $ 5.19 millions
Creditors - Non hedged amount $ 0.05 millions
Advances to creditors $ - Non hedged amount $ 1.17 millions
7. Segmental Information
i) Primary (Business) Segment As the company s business consists of
one reportable business segment of Manufacturing and Selling of
products, hence no separate disclosures pertaining to attributable
Revenues, Profits, Assets, Liabilities, Capital Employed are given.
ii) Secondary (Geographical) Segment Secondary segment reporting is
performed on the basis of geographical location of the customers. The
operation of the Company comprises local sales and export sales. The
Management views the Indian market and export market as distinct
geographical segments. The following is the distribution of the
Companys sale by geographical markets:
8. The names of the Micro, Small and Medium Enterprises suppliers
defined under "The Micro Small and Medium Enterprises Development Act
2006" could not be identified, as the necessary evidence is not in the
possession of the Company.
9. The name of the Small Scale Undertakings to whom the Company owe a
sum exceeding Rs. 0.10 millions which is outstanding for more than 30
days could not be identified, as the necessary information is not in
the possession of the Company.
10. Figures of the previous year have been regrouped, reclassified
and/or rearranged wherever considered necessary to correspond with the
figures of current year.