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Notes to Accounts of Roopa Industries Ltd.

Mar 31, 2015

1. The Sales Tax deferment liability is being accumulated in view of sanction of deferment by the Government of Andhra Pradesh and the same is shown under Long term Borrowings (Unsecured Loan) and also current maturity amount under Other Current Liabilities.

2. The Government has acquired land under Land Acquisition Act, and paid a compensation of Rs.5,84,574/-.The Company has accepted the compensation under protest as the negotiation was finalised by Price Negotiation Committee under the Chairmanship of Joint Collector, Anantapur for purchase of same land for Rs.30,02,000/- was unfair and inadequate. Hence the Company has filed a suit in against Government for payment of higher compensation. Pending disposal of the case, the Company accounted compensation as claimed by the Company in the suit and additional compensation of Rs.4,21,176/- is included as claims receivable under Long Term Loans and Advances.

3. Confirmation of balances of certain parties for amounts due to them / due from them as per the accounts of the company have not been received. However the value in the books of accounts are final. Since it is indicated that our balances as per Company are deemed to be correct, if confirmation or discrepancy is not received before certain prescribed period.

4. Previous year figures have been re-classified, re-grouped and re-arranged to make them comparable with the current year's disclosures.

5. Figures shown in the accounts have been rounded off to the nearest rupee.


Mar 31, 2014

1. Contingent liabilities and commitments:

The disclosure required by Accounting Standard (AS-29) ''Provisions and Contingent liabilities, prescribed by the Companies (Accounting Standards) Amendment Rules, 2006 are as follows:

a. Unexpired Letters of Credit: Rs.198.86 Lakhs (previous year Rs.223.24 Lakhs)

b. Unexpired Bank Guarantee: Rs.10 Lakhs (previous year Rs.10 Lakhs)

c. Income tax case pending in Andhra Pradesh High Court : Rs. 13.08 lakhs.

d. Appeal filed by Company for higher compensation for Land under the Chairmanship of Joint Collector, Anantapur

2. Basis of Preparation:

The Company follows mercantile system of accounting and recognises Income and Expenditure on accrual basis. The Accounts are prepared on historical cost basis as a going concern and are consistent with generally accepted accounting principles and applicable accounting standards unless otherwise stated.

3. Use of Estimates:

The preparation of financial statements is in conformity with the generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of such assets and liabilities and disclosure of contingent liabilities at the date of financial statements and the results of operations during the end of the reporting period. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from the estimates.

4. The Sales Tax deferrment liability is being accumulated in view of sanction of deferment by the Government of Andhra Pradesh and the same is shown under Long term Borrowings and also current maturity amount under Other Current Liabilities.

5. The Government has acquired land under Land Acquisition Act, and paid a compensation of Rs.5,84,574/-.The Company has accepted the compensation under protest as the negotiation was finalised by Price Negotiation Committee under the Chairmanship of Joint Collector, Anantapur for purchase of same land for Rs.30,02,000/- was unfair and inadequate. Hence the Company has filed a suit in against Government for payment of higher compensation. Pending disposal of the case, the Company accounted compensation as claimed by the Company in the suit and additional compensation of Rs.4,21,176/- is included as claims receivable under Long Term Loans and Advances.

6. Cash and Cash Equivalents

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short term investments with an original maturity of twelve months or less.

7. Confirmation of balances of certain parties for amounts due to them / due from them as per the accounts of the company have not been received. However the value in the books of accounts are final, since it is indicated that our balances as per Company are deemed to be correct, if confirmation or discrepency is not received before certain prescribed period.

8. Previous year figures have been re-classified, re-grouped and re-arranged to make them comparable with the current year''s disclosures.

9. Figures shown in the accounts have been rounded off to the nearest rupee


Mar 31, 2013

1. Basis of Preparation:

The Company follows mercantile system of accounting and recognises Income and Expenditure on accrual basis. The Accounts are prepared on historical cost basis as a going concern and are consistent with generally accepted accounting principles and applicable accounting standards unless otherwise stated.

2. Use of Estimates:

The preparation of financial statements is in conformity with the generally accepted accounting principles requires manage- ment to make estimates and assumptions that affect the reported amounts of such assets and liabilities and disclosure of contingent liabilities at the date of financial statements and the results of operations during the end of the reporting period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from the estimates.

3. Contingent liabilities:

The disclosure required by Accounting Standard (AS-29) ''Provisions and Contingent liabilities, prescribed by the Companies (Accounting Standards) Amendment Rules, 2006 are as follows:

a. Unexpired Letters of Credit:Rs.223.24Lakhs (previous year Rs.236.71 Lakhs)

b. Unexpired Bank Guarantee:Rs.10 Lakhs (previous year Rs.10 Lakhs)

4. The Sales Tax liability is being accumulated in view of sanction of deferment by the Government of Andhra Pradesh and the same is shown under Long term Borrowings and also current maturity amount under Other Current Liabilities.

5. The Government has acquired land under Land Acquisition Act, and paid a compensation of Rs.5,84,574/-.The Company has accepted the compensation under protest as the negotiation as finalised by Price Negotiation Committee under the Chairmanship of Joint Collector, Anantapur for purchase of same land for Rs.30,02,000/- was unfair and inadequate. Hence the Company has filed a suit in against Government for payment of higher compensation. Pending disposal of the case, the Company accounted compensation as claimed by the Company in the suit and additional compensation of Rs.4,21,176/- is included as claims receivable under Long Term Loans and Advances.

6. Cash and Cash Equivalents

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short term investments with an original maturity of twelve months or less.

7. Confirmation of balances of certain parties for amounts due to them / due from them as per the accounts of the company have not been received. However the value in the books of accounts are final, since it is indicated that balances as per company are deemed to be correct, if confirmation or discrepency intimation is not received before certain prescribed period.

8. Previous year figures have been re-classified, re-grouped and re-arranged to make them comparable with the current year''s disclosures.

9. Figures shown in the accounts have been rounded off to the nearest rupee.


Mar 31, 2012

A. Terms / rights attached to equity shares

The Company has only one class of equity shares having a face value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of Liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company. The distribution will be in proportion to the number of equity shares held by the shareholders

b. Terms of Warrants:

The holders of 11,21,820 warrants are entitled to apply for one equity share of Rs.10 each per warrant at a premium of Rs.1,48 at any time within 18 months in 3 trenches the warrant exercise period that is between 12th October, 2010 to 9th April, 2012. The Company will also have one time call option of compulsory conversion of warrants at any time within the warrant exercise period.

From the commencement of warrant exercise period (i.e. 12th October, 2010) till 31st March, 2012, the Company has received applications from warrant holders for conversion of 7,28,544 warrants into equity shares for an amount aggregating to Rs. 83,63,686 (inclusive of securities premium) and have been converted into Equity Shares (Equity Share Capital Rs. 72,85,440 and Securities Premium Rs. 10,78,246) till 31st March, 2012.

Assuming that all warrants are converted into equity shares, the paid up equity share capital of the Company will enhance from Rs. 7,47,22,440 (74,72,244 equity shares of Rs.10 each) to Rs. 7,86,55,200 (78,65,520 equity shares of Rs.10 each). Also the securities premium will enhance by Rs. 5,82,050.

lerm Loan is secured Dy nypotnecation ot equipment purcnased out or bank tinance ana Plant and Machinery and other Fixed assets of the Company. Term loan on Vehicle is secured by hypothecation of Vehicle purchased out of Bank finance. The housing loan is secured by hypothecation of concerned House property purchased out of Bank finance. Further all the Term loans are secured by the guarantee of the Chairman & Managing Director in his individual capacity.

Deferred Sales tax loan is interest free repayable in various instalments as per Sales tax deferment scheme. The last instalment is payable in 2020-2021.

Vehicle loan repayment in 36 monthly installments commencing from July 2009 to June

2012. Term loan repayment in 12 quarterly installments commencing from March, 2012. Housing loan repayment in 78 monthly installments commencing from February, 2008 to July, 2014.

Security for Secured Loans

The working capital loan from Bank and liability for bills discounted are secured by Equitable Mortgage of Land, Buildings and charge on Plant & Machinery, Stock-in-Trade, Book debts and are further guaranteed by Chairman & Managing Director in his individual capacity.

1. Contingent liabilities:

The disclosure required by Accounting Standard (AS-29) 'Provisions and Contingent liabilities, prescribed by the Companies (Accounting Standards) Amendment Rules, 2006 are as follows:

a. Unexpired Letters of Credit : Rs. 236.71 Lacs (previous year Rs.177.69 Lacs)

b. Unexpired Bank Guarantee : Rs.10 Lacs (previous year Rs.10 Lacs)

2. The Sales Tax liability is being accumulated in view of sanction of deferment by the Government of Andhra Pradesh and the same is shown under Long term Borrowings and also current maturity amount under Short term Borrowings.

3. The Government has acquired land under Land Acquisition Act, and paid a compensation of Rs.5,84,574/-.The Company has accepted the compensation under protest as the negotiation as finalised by Price Negotiation Committee under the Chairmanship of Joint Collector, Anantapur for purchase of same land for Rs.30,02,000/- was unfair and inadequate. Hence the Company has filed a suit in against Government for payment of higher compensation. Pending disposal of the case, the Company accounted compensation as claimed by the Company in the suit and additional compensation of Rs.4,21,176/- is included as claims receivable under Long Term Loans and Advances.

4. Cash and Cash Equivalents

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short term investments with an original maturity of twelve months or less.

5. Confirmation of balances of certain parties for amounts due to them / due from them as per the accounts of the company have not been received. However the value in the books of accounts are final, since it is indicated that balances as per company are deemed to be correct, if confirmation or discrepency intimation is not received before prescribed period.

6. Previous year figures have been re-classified, re-grouped and re-arranged to make them comparable with the current year's disclosures.

7. Figures shown in the accounts have been rounded off to the nearest rupee.


Mar 31, 2010

1. Confirmation of balances of certain parties for amounts due to the/due from them as per the accounts of the company have not been received. However the values in the book of accounts are final. Since i is indicated that our balances are deemed to be correct, if confirmations is not received before certain prescribed period.

2. In the opinion of the Board of Directors of the Company current assets, loans, advances 1 deposits are approximately of the value stated in the accounts, if realised, in the ordinary course of business unless otherwise stated. The provisions for all known liabilities are adequate and not in excess of the amount reasonably necessary.

3. Contingent Liabilities :

a. Unexpired Letters of Credit: Rs. 57.41 lacs (previous year Rs 41.46 lacs).

b. Unexpired Bank Guarantee given to APPCB Rs. 10,00,0007- (previous year - Rs.10 lacs ).

c. Bonds executed with Customs authorities for clearing goods meant for export of goods without payment of duty Rs.5,44,634/- (previous year Rs. 13,63,634/-)

4. The Sales Tax liability is being accumulated in view of sanction of deferment by the Government of Andhra Pradesh and the same is shown under Unsecured Loans.

5. The Government has acquired land under Land Acquisition Act, and paid a compensation of Rs.5,84,574/-. The Company has accepted the compensation under protest as the negotiations as finalised by Price Negotiation Committee under the Chairmanship of Joint Collector, Anantapur for purchase of same land for Rs.30,02,000/- was unfair and inadequate. Hence the Company has filed a suit in against Government for payment of higher compensation. Pending disposal of the case, the Company accounted compensation as claimed by the Company in the suit and additional compensation of Rs. 4,21,176/- is included as claims recoverable under Advances.

6. Related Party Disclosures:

1. The Company has the following related parties :

Name Relation

Sree Rayalaseema Alkalies and Allied Chemicals Ltd. Associate Company

SRHHL Industries Ltd. Associate Company (Promotor)

a. Key Management Personnel : 1. Sri.T.G. Raghavendra, Chairman & Managing Director

2. Sri. V.J. Sarma, Executive Director

b. Relatives to Key Management Personnel : Smt. Jayanthi Raghu T.G.

(W/o. Sri T.G. Raghavendra)

c. Transactions with related parties:

On account of Goods Purchased - Rs. 8,94,360/-(Previous year Rs.4,84,887/-) On account of Managerial Remuneration - Rs.18,00,000/-(Previous year Rs. 15,24,000/-)

Investment in M/s Sree Rayalaseema Alkalies and Allied Chemicals Ltd. ,-Rs.2,048/- (Previous year Rs.2,048/-)

d. Outstanding Balances as on 31.03.2010

In Current Liabilities-Creditors for Suppliers-Rs.45,764/-(Previous year Rs1,04,150/-)

7. Deferred Income Tax Asset has been created as per the provisions of AS-22

8. The Company has only one Primary Business Segment as per AS-17 of ICAI.

9. Impairment:

As required by AS-28 an Impairment of assets the Company has carried out Impairment test of various assets and identified the following lmpairment/(reversal) during the year 1. Nature of Assets : Items of Plant & Machinery

2. Events/Circumstances : Unsuitable for operation

3. Impairment Loss/(reversal) : Rs.32,37,619

4. Basis of recoverable amount : Net Selling Price



10. The assets which have been 100% Depreciated and its economic value is zero has been removed from the Gross Block and Depreciation Reserve.

11. Previous year figures have been re-grouped / re-arranged / re-classified wherever necessary.

12. Paisa have been rounded off to nearest Rupee.

 
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