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Notes to Accounts of Revathi Equipment Ltd.

Mar 31, 2016

a) Acceptance represents outstanding vendors'' bills discounted from the bank.

b) Disclosure of Trade payables under current liabilities is based on the information available with the company regarding the status of the suppliers as defined under the "Micro, Small and Medium Enterprise Development Act, 2006" (the Act). There are no delays in payment made to such suppliers and there is no overdue amount outstanding as at the balance sheet date.

(b) During the year depreciation has been provided based on the useful life of the assets as per Schedule II of the Companies Act, 2013. Consequently, depreciation for the year in the profit and loss account is higher by Rs, Nil (Previous Year (P.Y.) Rs, 2,651). In respect of the fixed assets, where remaining useful life as per the said Schedule have expired as on 1st April 2014, the carrying values thereof have fully been depreciated and Rs, Nil (P.Y. Rs, 2358) (net of deferred tax of Rs, Nil (P.Y. Rs, 567) there against) has been adjusted against general reserve of the company. Corresponding amount of revaluation reserve amounting to Rs, 1 (P.Y. Rs, 1,176) has been transferred there from to the general reserve.

(c) Fixed assets Includes following assets pertaining to Construction Equipment Division (CED) held for disposal (Note 32(a)), which have been carried at net book value as on 31st March 2016: “Land and Building Rs, 138707 (P.Y. Rs, 138707), Plant & Machinery Rs, 13069 (P.Y. Rs, 14684), Production Tooling Rs 117 (P.Y. Rs, 117), Data Processing Equipment Rs, 702 (P.Y. Rs, 702), Office equipment Rs, 419 (P.Y. Rs, 419), Furniture & Fittings Rs, 125 (P.Y. Rs,125) and Vehicles Rs, Nil (P.Y. Rs, 175) - Aggregating to Rs,153,139 (P.Y. Rs, 154,929)

a) The company along with Tridhaatu Realty Infra Private Ltd (Tridhaatu) formed as Association of Persons (AOP) namely Panchtatva Realty for constructing a real estate complexes in Chembur, Mumbai and made an investment of Rs, 2,00,000 in the AOP. Out of its entitlement of 64,000 square feet, the company sold 10,795 square feet to the AOP member- Tridhatu vide deed of modification dated 17th December 2015. The company''s entitlement is limited to above mentioned built up area only and no other economic benefits and hence not construed as Joint Venture. Income arising out of of the sale of such share is disclosed as extra ordinary item.(note-27)

a) The Company is liable to pay Minimum Alternate Tax (MAT) under Section 115JB of the Income Tax Act, 1961 (the Act) during current year and earlier years. Accordingly, as advised in guidance note on "Accounting for credit available in respect of minimum alternate tax under the Income Tax Act, 1961" issued by the Institute of Chartered Accountants of India, '' 30,594 thousand (Previous Year '' 13,573 thousand) being the credit available have been carried forward as MAT credit Entitlement to be set off against the future tax liabilities in terms of the relevant provisions of the Act. In view of the Management, the Company''s taxable profit in future will be sufficient to offset the entitlement so recognized in the accounts.

1. Employee benefits

Defined Benefit Plan (Gratuity Funded and Leave Encashment Non-funded) - As per Actuarial Valuation on 31.03.2016 The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The Scheme is funded with an insurance company in the form of a qualifying insurance policy.

Earned leave not availed during the year can be accumulated with subsequent year up to maximum 90 days. The earned leave accumulated beyond 90 days can be encased at the time of retirement / resignation.

The following tables summaries the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet for the plan.

a) The expected return on plan assets has been determined considering several applicable factors mainly the composition.

b) The estimates of future salary increase considered in actuarial valuation take into account inflation, seniority, promotions.

c) Based on the Guidance Note from the Institute of Actuaries of India, the Company''s Actuary has reliably measured the provident fund liability in respect of Provident Fund (Trust) and there is no shortfall.

d) Defined Contribution Plan

Employer''s contribution to Provident Fund and Other Funds aggregating to '' 7704 thousand (Previous year '' 6633 thousands) has been included under Note 22 - Employee benefit expense.

2. SEGMENT REPORTING

The disclosure requirement under "Segment Reporting" as per Accounting Standard 17 taking into account the as well as the difference in risk and return, is as given below:

A PRIMARY SEGMENT

The Company operates mainly in one business segment viz. Construction and Mining being primary segment and all other activities revolve around the main activity. The secondary segment is geographical, information related to which is given under.

3. Construction Equipment Division

a. Considering the market condition of construction equipment business, last year the manufacturing facilities at Chennai were downsized and shifted both manufacturing and service resources located at Chennai to Coimbatore. Fixed assets pertaining to said division at Chennai having written down value of '' 153,497 as on 31st March, 2016 (Previous year ''154,929) comprising of lease hold land, building, plant and machinery, office equipment etc as disclosed in note 10 are therefore meant for disposal and necessary steps in this respect are being taken. Adjustment, if any, with respect to value realizable there against will be carried out as and when ascertained.

b In view of above, certain inventories becoming non usable and surplus were written off and provision against remaining items against expected loss in value thereof as per the Management''s estimate has been made in this year. Loss of '' 42,816 (previous year '' 22,816) arising in this respect on above have been shown under exceptional item.

4 The affairs of Statelier Holding Inc, USA, one of the associate of the company was dissolved and certificate of dissolution had been issued by the appropriate authority. There being no likelihood of any amount being recoverable towards investment in equity and as such full provision against Investment of '' 48750 in the said company had been done in the year 201314. There is no change in the status thereof in this year.

5 The company applied for approval of excess remuneration of '' 406 paid in respect of financial year 2013-14 to Executive Chairman. The Central Government rejected the application and the company recovered the same in current financial year.

6 In the opinion of the Board and to the best of their knowledge and belief, the value on realization of loans, advances and current assets in the ordinary course of business will not be less than the amount at which they are stated in the balance sheet.

7 Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classification/ disclosure.


Mar 31, 2013

1) CONTINGENT LIABILITIES AND COMMITMENTS

Customer claims for damages 3,678 3,678

Claim from Income Tax Dept 28,754

Corporate guarantee given on behalf of a subsidiary 45,000 45,000

48,678 77,432

2. Related Party Disclosure :

1. Enterprises where control exists:

Avalokiteshvar Valinv Ltd (AVL) - Holding Company

Renaissance Construction Technologies India Ltd (wholly owned subsidiary) which was converted into Renaissance Construction Technologies India LLP w.e.f 27th December, 2012 Semac Consultants Pvt.Ltd (Subsidiary)

2. Other related party with whom the company had transactions, etc. (i) Key Management Personnel & their relatives :

Mr. Abhishek Dalmia Executive Chairman Mr. Chaitanya Dalmia Director (Brother of Mr. Abhishek Dalmia) (ii) Director / Consultant Mr.P.M.Rajanarayanan

3. Associate

Satellier Holdings Inc., USA

3. DISCLOSURE UNDER ACCOUNTING STANDARD -15 Employee Benefits

i) The disclosures required under AS-15 "Employee Benefits"

Defined Contribution Scheme:

Contribution to Defined Contribution Plan recognised for the year are as under Employer''s Contribution to Provident Fund - 5,713 (2012-5,805) Employer''s Contribution to Superannuation Fund - 2,784 (2012 - 3,065)

Defined Benefit Scheme:

The employees'' gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan.The present value of obligation is determined based on acturial valuation using Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to built the obligation.The

obligation for Leave encashment is recognised in the same manner as gratuity.

4 SEGMENT REPORTING

The disclosure requirement under "Segment Reporting" as per Accounting Standard 17 taking into account the organisation structure as well as the difference in risk and return, is as given below:

A. PRIMARY SEGMENT

The Company operates mainly in one business segments viz. Construction and Mining being primary segment and all other activities revolve around the main activity. The secondary segment is geographical, information related to which is given under.

5 The wholly owned subsidiary, Renaissance Construction Technologies India Ltd (RCTIL) was converted into a limited liability partnership on close of business as at 26th December, 2012 as Renaissance Construction Technologies India LLP (the LLP) Accordingly, the company''s investment into RCTIL has been converted into "Partner''s Capital in the LLP". The opening general reserve in the RCTIL has been taken to the "General Reserve from LLP". The profit of the LLP for the period 27th December, 2012 to 31st March, 2013 has been appropriated and is included in Note 19 "Other Income". Further, the consequential adjustments have been taken to "Current Account with LLP".

6. Previous year figures have been regrouped / reclassified to conform with current year presentation, wherever considered necessary.


Mar 31, 2012

A) Total long term loan of Rs. 30,263 (2011: Rs 62,193/-) from HDFC Bank has been secured by exclusive charge on land and building and plant and machinery of the company situated at SIPCOT Industrial Estate,Gummidipoondi,Tamilnadu, financed out of term loan.

b) Total long term loan of Rs 40,000 (2011: Rs 80,000/-) from Axis Bank has been secured by first pari-passu charge on fixed assets of the Company excluding assets specifically charged to other lenders and second pari-passu charge on current assets of the company.

c) Vehicle Loan is secured by hypothecation of vehicles

a) Disclosure of sundry creditors under current liabilities is based on the information available with the company regarding the status of the suppliers as defined under the "Micro, Small and Medium Enterprise Development Act, 2006" (the Act). There are no delays in payment made to such suppliers and there is no overdue amount outstanding as at the balance sheet date.

The company has paid advance of Rs.200,000 (Capital Advance) and loan of Rs.67,200 (including Rs.21,600 included under Note 17) towards joint development of property with another corporate entity. Various permissions are being obtained from the appropriate authorities, pending which no construction activities have commenced. Considering the location of the property and projected revenue there against, in view of the management no provision is considered necessary.

Sale of Equipments and spares are recognised on despatch of goods / raising of invoices to customers and are net of excise duty, sales-tax, trade discounts and returns. Service income is recognised upon rendering the services. Dividends, interests, incentives etc are accounted on accrual basis.

1) CONTINGENT LIABILITIES AND COMMITMENTS

Customer claims for damages 3,678 3,678

Claim from Income Tax Dept 28,754 -

Corporate guarantee given on behalf of a subsidiary 45,000 55,000

77,432 58,678

2. Related Party Disclosure :

1. Enterprises where control exists:

Avalokiteshvar Valinv Ltd (AVL) (Formerly known as Utkal Investments Limited)-

Holding Company

Renaissance Construction Technologies India Ltd (Formerly Revathi Drilling & Mining Ltd (Wholly owned subsidiary) Potential Semac Consultants Pvt. Ltd (Subsidiary)

2. Other related party with whom the company had transactions, etc.

(i) Key Management Personnel & their relatives :

Mr. Abhishek Dalmia Executive Chairman

Mr. Chaitanya Dalmia Director (Brother of Mr. Abhishek Dalmia)

Mr. K. Sunil Kumar Managing Director & CEO

(ii) Director / Consultant Mr. S.C. Katyal

3. Associate

Satellier Holdings Inc. USA

Note : i) In respect of the above parties, there is no provision for doubtful debts as on 31.3.2012 and no amount has been written off or written back during the year in respect of debts due from/to them,

ii) The above related party information is as identified by the management and relied upon by the auditors.

3. DISCLOSURE UNDER ACCOUNTING STANDARD -15 Employee Benefits

i) The disclosures required under AS-15 "Employee Benefits"

Defined Contribution Scheme:

Contribution to Defined Contribution Plan recognised for the year are as under Employer's Contribution to Provident Fund - 5,805 (2011-4,937)

Employer's Contribution to Superannuation Fund - 3,065 (2011-2,961)

4 SEGMENT REPORTING

The disclosure requirement under "Segment Reporting" as per Accounting Standard 17 taking into account the organisation structure as well as the difference in risk and return, is as given below:

A. PRIMARY SEGMENT

The Company operates mainly in one business segments viz. Construction and Mining being primary segment and all other activities revolve around the main activity. The secondary segment is geographical, information related to which is given under.

5. Previous year figures have been regrouped / reclassified to conform with the current year's presentation, wherever considered necessary.


Mar 31, 2011

2010-11 2009-10

1. Contingent liabilities

Claims against the Company not acknowledged as debts

Customer claims for damages 3,678 3,678

Corporate guarantee given on behalf of a subsidiary 55,000 55,000

58,678 58,678

2. Related Party Disclosure

1. Enterprises where control exists:

Renaissance Construction Technologies India Ltd(Formerly Revathi Drilling & Mining Ltd (wholly owned subsidiary) Potential Semac Consultants Pvt.Ltd (Subsidiary)

2. Other related party with whom the company had transactions, etc.

(i) Key Management Personnel & their relatives :

Mr. Abhishek Dalmia Executive Chairman

Mr. Chaitanya Dalmia Director (Brother of Mr. Abhishek Dalmia)

Mr. K. Sunil Kumar Managing Director & CEO

(ii) Director/Consultant Mr.S.C.Katyal

3. Associate

Satellier Holdings lnc,USA

4. INFORMATION ABOUT JOINT VENTURE

The company held 26% shares of Monarch Catalysts Pvt. Ltd, a jointly controlled entity .During the year, the management has decided to dispose off these investments as per an independent valuation. Accordingly, there are no informations required to be furnishsed in this respect.

5. Previous year comparatives:

Previous year figures have been regrouped / reclassified to conform with the current years presentation, wherever considered necessary.


Mar 31, 2010

(i) Long term loan of Rs. 95,789 (2009: Rs 126,053/-) from HDFC Bank has been secured by exclusive charge on land and building and plant and machinery of the company situated at SIPCOT Industrial Estate,Gummidipoondi,Tamilnadu, financed out of term loan.

(ii) Long term loan of Rs 120,000 (2009: Rs 160,000/-) from Axis Bank has been secured by first pari-passu charge on fixed assets of the Company excluding assets specifically charged to other lenders and second pari-passu charge on current assets of the company.

(iii) Cash credit Loan of Rs. 565,604 (2009. Rs 562,537/-) under multiple banking arrangement has been secured by way of pari-passu charge on entire current assets of the company and second charge on fixed assets of the company.

(iv) Vehicle Loan of Rs. 6,980 (2009: Rs 2,186) is secured by hypothecation of Vehicles.

2. Capital Work in progress includes :

a) Rs. 174,000 (2009 - Rs. 170,000) paid towards joint development of property with another Corporate body.

b) Rs. 20,888 (2009 - Rs. 12,098) towards interest on loan taken for the purpose of the project at Chennai.

c) Rs. 8,509 (2009 - Rs. 60,569) in respect of capital advance.

m. Related Party Disclosure pursuant to Accounting Standard - 18 :

1. Enterprises where control exists: Utkal Investments Limited

Revathi Drilling & Mining Ltd (wholly owned subsidiary)

Semac Limited (subsidiary Company)*

Potential Service Consultants Pvt. Ltd (Subsidiary from 20.08.2009 - prior to that it was a jointly controlled entity.)*

2. Other related party with whom the company had transactions, etc. (i) Key Management Personnel & their relatives :

Mr. Abhishek Dalmia Executive Chairman

Mr. Chaitanya Dalmia Director

Mr. P.M Rajanarayanan Managing Director

Mrs. R. Radha Relative of Managing Director

(ii) Director / Consultant Mr. S.C. Katyal

3. Jointly Controlled Entities Monarch Catalyst Pvt. ltd

3. DISCLOSURE UNDER ACCOUNTING STANDARD (15)

Employee Benefits

i) The disclosures required under AS-15 "Employee Benefits" notified in Companies (Accounting Standards) Rules, 2006, are given below:

Defined Contribution Scheme:

Contribution to Defined Contribution Plan recognised for the year are as under Rs(OOO)

Employers Contribution to Provident Fund - 3,019 (2009-3,299)

Employers Contribution to Superannuation Fund - 2,202 (2009-1,796)

Defined Benefit Scheme:

The employees gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan.The present value of obligation of is determined based on acturaial valuation using Projected Unit Credit Method,which recognises each period of service as giving raise to additional unit of employee benefit entitlement and measures each unit separately to build of the obligation.The obligation for Leave Encashment is recognised in the same manner as gratuity. (Rs. in 000)

4 SEGMENT REPORTING

The disclosure requirement under "Segment Reporting" as per Accounting Standard 17 taking into account the organisation structure as well as the difference in risk and return, is as given below:

A. PRIMARY SEGMENT

The Company operates mainly in one business segments viz. Construction and Mining being primary segment and all other activities revolve around the main activity. The secondary segment is geographical, information related to which is given under.

5. PREVIOUS YEAR COMPARATIVES

Previous year comparatives have been regrouped / reclassified to conform with the current years presentation, wherever considered necessary.

Statement pursuant to Section 212 of the Companies Act, 1956 relating to Subsidiary Company

Name of the Subsidiary Company

Financial year ending of the subsidiary

Extent of holding companys interest in the subsidiary at the end of the financial year (Number of shares held and percentage)

Net aggregate amount of For the current financial year

Profit/ (Loss) of the Subsidiary of the Subsidiary

not dealt within the Holding Companys accounts

For the previous financial year of the Subsidiary

Net aggregate amount of For the current financial year

Subsidiarys Profit/ (Loss) dealt of the Subsidiary

with in the holding Companys accounts

For the previous financial year of the Subsidiary

Revathi Drilling and Mining Limited

March 31, 2010

Holders of entire issued equity share capital of 1,000,000 equity shares of Rs.10 each.

Since the subsidiary company has not commenced commercial operations, the Profit and loss account for the period ending March 31, 2010 was not prepared and hence the dealing of subsidiary profit/(loss) does not arise.

Not applicable

Since the subsidiary company has not commenced commercial operations, the Profit and loss account for the period ending March 31, 2010 was not prepared and hence the dealing of subsidiary profit/(loss) does not arise.

Not applicable

Promoter Group of Revathi Equipment Limited pursuant to Regulation 3(1 )(e) of the SEBI (Substantial Acquisition of Shares & Takeovers) Regulations 1997.

1. Utkal Investments Ltd.

2. Renaissance Asset Management Company Pvt. Ltd.

3. Renaissance Stocks Ltd.

4. Mr. Abhishek Dalmia

5. Mr. Chaitanya Dalmia

6. Mr. A.H. Dalmia

7. Mrs. Usha Dalmia

8. Mrs. Deepali Dalmia

9. Mrs. Pooja Dalmia

10. Ajai Hari Dalmia (HUF)

11. Shri Finance

12. Raghu Trading & Investment Company Pvt. Ltd.

13. Spangle Marketing Ltd

14. Hilltop Metals Ltd.

15. Saffron Agencies Ltd.

Statement pursuant to Section 212 of the Companies Act, 1956 relating to Subsidiary Companies

Name of the Subsidiary Company

Financial year ending of the subsidiary

Extent of holding companys interest in the subsidiary at the end of the financial year (Number of shares held and percentage)

Net aggregate amount of For tne current financial year

Profit/ (Loss) of the Subsidiary of tne Subsidiary

not dealt within the Holding Companys accounts

For the previous financial year of the Subsidiary

Net aggregate amount of For the current financial year

Subsidiarys Profit/ (Loss) dealt of the Subsidiary

with in the holding Companys accounts

For the previous financial year of the Subsidiary

Potential Service Consultants Private Ltd.

March 31, 2010

Holding 1,198,852 equity shares of Rs 10 each. Percentage of holdings - 65.84%

Rs (36,744,998)

Not applicable

Not applicable

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