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Notes to Accounts of Rungta Irrigation Ltd.

Mar 31, 2015

1. Right/preference/restrictions attached to equity shares

Terms/rights attached to equity shares: The Company has only one class of equity shares having at par value of Rs.10 per share. Each holder of equity share is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of Company after distribution of all preferential amounts,if any. The distribution will be in proportion to the number of equity shares held by the share holders.

2.Employee Benefits:

Shortterm benefits

i. Short term employee benefits are recognized as an expense at the undiscounted amount in the profit & loss account of the year in which the related service is rendered.

ii. Post employment benefits

Gratuity and leave encashment which are defined benefits are accrued based on the actuarial valuation as at Balance sheet date by an independent actuary. The Company has opted for a Group Gratuity cum life Insurance Scheme of the Life Insurance Corporation of India for part of the employees and the contribution is charged to the profit and loss account each year. For other than funded plan, the expense is recognized, as calculated on the basis of present value of the amount payable as determined by the actuarial valuation. The liability recognized in the balance sheet is the present value of the defined benefit obligation less the fair value of funded plans. All actuary gain and losses are charged to the profit and loss account.

3. Contingent liabilities not provided for:

a) Sales Tax Authorities have raised demand for Rs. 12.75 Lac ( Previous year Rs. 12.75 lac) for various assessment years and the matters are pending with Appellate Authorities and High Court. As per opinion, the appeals are likely to be decided in favour of the Company.

b) The Excise Department has raised a demand of Rs. 1.52 lac against Service Tax on Transaction charges and the matters are pending with the appellate authorities. As per opinion, the appeals are likely to be decided in the favour of the Company (Previous Year: Rs. 1.52 Lac).

c) The company has given counter guarantee to the bankers against guarantees issued by Banks on behalf of the company amounting to Rs. 588.67 Lacs (Previous Year: Rs. 524.00 Lac). The liability may arise in case of failure in supply of material or malfunctioning of products supplied by the Company.-

4. Estimated amount of contracts remaining to be executed on capital account and not provided for is

Rs. NIL (Previous Year: Rs. NIL).

5. Preferential allotment of convertible warrants and its conversion into Equity Shares. During the

year NIL (Previous year NIL)

6. The Company has recalled the balance outstanding loan of Rs.230.34 lacs(Previous Year Rs.290.34 lacs) given to M/s Rungta Projects Limited. The balance dues are yet to be recovered and as explained, the company is taking adequate steps to recover fully during 2015-16. year.

7. Segment Information

The financial results relates mainly to Irrigation products. In accordance with Accounting Standard 17, financial results of Hiring of Equipments are not shown separately, since it is less than the limit specified for separate disclosure.

8. Figures of previous year have been regrouped wherever found necessary to make them comparable with that of current year.


Mar 31, 2014

(1) Employee Benefits:

Short term benefits

i. Short term employee benefits are recognized as an expense at the undiscounted amount in the profit & loss account of the year in which the related service is rendered.

ii. Post employment benefits

Gratuity and leave encashment which are defined benefits are accrued based on the actuarial valuation as at Balance sheet date by an independent actuary. The Company has opted for a Group Gratuity cum life Insurance Scheme of the Life Insurance Corporation of India for part of the employees and the contribution is charged to the profit and loss account each year. For other than funded plan, the expense is recognized, as calculated on the basis of present value of the amount payable as determined by the actuarial valuation. The liability recognized in the balance sheet is the present value of the defined benefit obligation less the fair value of funded plans. All actuary gain and losses are charged to the profit and loss account.

(2) Contingent liabilities not provided for:

a) Sales Tax Authorities have raised demand for Rs. 12.75 Lac ( Previous year Rs. 12.75 lac) for various assessment years and the matters are pending with Appellate Authorities and High Court. As per opinion, the appeals are likely to be decided in favour of the Company.

b) The Excise Department has raised a demand of Rs. 1.52 lac against Service Tax on Transaction charges and the matters are pending with the appellate authorities. As per opinion, the appeals are likely to be decided in the favour of the Company (Previous Year: Rs. 1.52 Lac).

c) The company has given counter guarantee to the bankers against guarantees issued by Banks on behalf of the company amounting to Rs. 524.00 Lacs (Previous Year: Rs. 620.71 Lac). The liability may arise in case of failure in supply of material or malfunctioning of products supplied by the Company.

(3) Estimated amount of contracts remaining to be executed on capital account and not provided for is Rs. NIL (Previous Year: Rs. NIL).

(4) Preferential allotment of convertible warrants and its conversion into Equity Shares.

During the year NIL (Previous year NIL)

(5) As regards the balance payment of Rs.250 Lac Cumulative Redeemable Preference Shares subscribed by IDBI Bank Ltd, the company has re-paid in full (in 3 EMI) to IDBI Bank Ltd till 30.06.2013 in terms of One Time Settlement (OTS) of dues vide letter Ref: No.1052 SAIC/Pref. Shares/2012-13 dated March 28, 2013 of the IDBI Bank Ltd, Mumbai. The CRPS dues become NIL.

(6) The Company has recalled the outstanding loan of Rs.290.34 lacs(Previous Year Rs.290.34 lacs) given to M/s Rungta Projects Limited. The dues are yet to be recovered and as explained, the company is taking adequate steps to recover the same. The management is of the opinion that the outstanding loan will be fully recoverable during the financial year 2014-15.

(7) Segment Information

The financial results relates mainly to Irrigation products. In accordance with Accounting Standard 17, financial results of Hiring of Equipments are not shown separately, since it is less than the limit specified for separate disclosure.

(8) Figures of previous year have been regrouped wherever found necessary to make them comparable with that of current year.


Mar 31, 2013

1 (1). Employee Benefits:

Shortterm benefits

i. Short term employee benefits are recognized as an expense at the undiscounted amount in the profit & loss account of the year in which the related service is rendered.

ii. Post employment benefits

Gratuity and leave encashment which are defined benefits are accrued based on the actuarial valuation as at Balance sheet date by an independent actuary. The Company has opted for a Group Gratuity cum life Insurance Scheme of the Life Insurance Corporation of India for part of the employees and the contribution is charged to the profit and loss account each year. For other than funded plan, the expense is recognized, as calculated on the basis of present value of the amount payable as determined by the actuarial valuation. The liability recognized in the balance sheet is the present value of the defined benefit obligation less the fair value of funded plans. All actuary gain and losses are charged to the profit and loss account.

1 (2). Contingent liabilities not provided for:

a) Sales Tax Authorities have raised demand for Rs. 12.75 Lac (Previous year Rs. 12.75 lac for various assessment years and the matters are pending with Appellate Authorities and High Court. As per opinion, the appeals are likely to be decided in favour of the Company.

b) The Excise Department has raised a demand of Rs. 1.52 lac against Service Tax on Transaction charges and the matters are pending with the appellate authorities. As per opinion, the appeals are likely to be decided in the favour of the Company (Previous Year: Rs. 1.52 Lac).

c) The company has given counter guarantee to the bankers against guarantees issued by Banks on behalf of the company amounting to Rs. 620.71 Lacs (Previous Year: Rs. 744.96 Lac). The liability may arise in case of failure in supply of material or malfunctioning of products supplied by the Company.

1(3). Estimated amount of contracts remaining to be executed on capital account and not provided for is Rs. NIL (Previous Year: Rs. NIL).

1(4) Preferential allotment of convertible warrants and its conversion into Equity Shares. During the year NIL (Previous year NIL.)

1(5) As regards. Cumulative Redeemable Preference Shares of Rs.250 Lac (Previous Year Rs- 334 lac) subscribed by IDBI Bank Ltd, the company has re-paid the balance payment of Rs 250 Lac outstanding as on 31.03.2013 in full (in 3 EMI) to IDBI Bank Ltd till 30.06.2013 in terms of One Time Settlement (OTS) of dues vide letter Ref: No. 1052 SAIC/Pref. Shares/2012-13 dated March 28, 2013 of the IDBI Bank Ltd, Mumbai. The CRPS dues become NIL as on 30.06.2013.

(b) As per explanation given to us the management has obtained certificates from the firms for the balance amount invested as mentioned before each as above as on 31.03.2013.Although no business activity during the year under review, in the opinion of management the investment is considered good.

1(6). Name and balances with the Bank, other than scheduled Banks in Current Accounts are as under.

In none of these Banks any of the directors or their relative is interested.

1(7). The Company has recalled the outstanding loan of Rs. 290.34 lacs(Previous Year Rs. 290.34lacs) given to M/s Rungta Projects Limited. The dues are yet to be recovered and as , explained, the company is taking adequate steps to recover the same. The management is of the opinion that the outstanding loan will be fully recoverable during the financial year 2013-14

$ Accessories, components and fittings includes purchase of various bought out items used in Sprinkler/ Drip Irrigation System and individually none of them account for 10% or more of the total value of raw material consumed.

1(8) Segment Information

The financial results relates mainly to Irrigation products. !n accordance with Accounting Standard 17, financial results of Hiring of Equipments are not shown separately, since it is less than the limit specified for separate disclosure.

1(9) Figures of previous year have been regrouped wherever found necessary to make them comparable with that of current year.


Mar 31, 2012

1(1) Employee Benefits:

i. Short term benefits

Short term employee benefits are recognized as an expense at the undiscounted amount in the profit & loss account of the year in which the related service is rendered.

ii. Post employment benefits

Gratuity and leave encashment which are defined benefits are accrued based on the actuarial valuation as at Balance sheet date by an independent actuary. The Company has opted for a Group Gratuity cum life Insurance Scheme of the Life Insurance Corporation of India for part of the employees and the contribution is charged to the profit and loss account each year. For other than funded plan, the expense is recognized, as calculated on the basis of present value of the amount payable determined by the actuarial valuation. The liability recognized in the balance sheet is the present value of the defined benefit obligation less the fair value of funded plans. All actuary gain and losses are charged to the profit and loss account.

1(2) Contingent liabilities not provided for:

a. Sales Tax Authorities have raised demand for Rs. 12.75 Lac ( Previous year Rs. 12.75 lac for various assessment years and the matters are pending with Appellate Authorities and High Court. As per opinion, the appeals are likely to be decided in favour of the Company.

b. The Excise Department has raised a demand of Rs. 1.52 lac against Service Tax on Transaction charges and the matters are pending with the appellate authorities. As per opinion, the appeals are likely to be decided in the favour of the Company (Previous Year: Rs. 1.52 Lac).

c. The company has given counter guarantee to the bankers against guarantees issued by Banks on behalf of the company amounting to Rs. 744.96 Lacs (Previous Year: Rs. 464.63 Lac). The liability may arise in case of failure in supply of material or malfunctioning of products supplied by the Company.

1(3) Estimated amount of contracts remaining to be executed on capital account and not provided for is Rs. NIL (Previous Year: Rs. NIL).

1(4) Preferential allotment of convertible warrants and its conversion into Equity Shares. During the year NIL ( Previous year NIL)

1(5) The Company has not redeemed the Cumulative Redeemable Preference Shares of Rs 334 Lac subscribed by IDBI Bank Limited and also dividend has not been provided on these shares since Nov.2005.

a. All the above Firms have suspended their businesses and no annual accounts are being prepared by these Firms. No profit or loss from these firms is accounted for against the share of the Company in the Firms. In the opinion of the management, the profit or loss of the Firms are not material, considering the suspension of the businesses. The management is of the opinion that investment in the Capital of these Firms is fully recoverable.

1(6) Name and balances with the Bank, other than scheduled Banks in Current Accounts are as under. In none of these Banks any of the directors or their relative is interested.

1(7) The Company has recalled the loan given to M/s Rungta Projects Limited in Nov'' 09 with interest charged up to Sep''09. The dues are yet to be recovered and as explained, the company is taking adequate steps to recover the same. No interest is being charged on the loan from Oct'' 09 onwards, considering the uncertainty over recovery of interest after recall of loan. The management is of the opinion that the outstanding is fully recoverable.

1(8) Figures of previous year have been regrouped wherever found necessary to make them comparable with that of current year.


Mar 31, 2011

1. Contingent liabilities not provided for:

a. Sales Tax Authorities have raised demand for Rs. 12.75 lacs ( Previous year Rs. 19.74 lacs for various assessment years and the matters are pending with Appellate Authorities and High Court. As per opinion, the appeals are likely to be decided in favor of the Company.

b. The Excise Department has raised a demand of Rs. 1.52 lacs against Service Tax on Transaction charges and the matters are pending with the appellate authorities. As per opinion, the appeals are likely to be decided in the favor of the Company (Previous Year: Rs. 1.52 Lacs).

c. The company has given counter guarantee to the bankers against guarantees issued by Banks on behalf of the company amounting to Rs. 464.43 Lacs (Previous Year: Rs. 351.90 Lacs). The liability may arise in case of failure in supply of material or malfunctioning of products supplied by the Company.

2. Estimated amount of contracts remaining to be executed on capital account and not provided for is Rs. NIL (Previous Year: Rs. NIL).

3. Preferential allotment of convertible warrants and its conversion into Equity Shares

a. During the year NIL (Previous year the company issued 20,50,000 Convertible warrants of Rs. 35/- each aggregating to Rs. 717.50 Lakhs, which were converted into 20,50,000 Equity Shares of Rs. 10/- each at a premium of Rs. 25/- each on 12.01.2010. The object of the issue was to fund the expansion of operation at Greater Naiad including relocating of Ghaziabad Unit to Greater Naiad.)

4. The arrear of cumulative dividend on cumulative Redeemable Preference Shares is not provided at the revised rate of 7.5%. The original dividend rate was 12% which was subsequently reduced to 7.50%.

b. All the above Firms have suspended their businesses and no annual accounts are being prepared by these Firms. No profit or loss from these firms is accounted for against the share of the Company in the Firms. In the opinion of the management, the profit or loss of the Firms are not material, considering the suspension of the businesses. The management is of the opinion that investment in the Capital of these Firms is fully recoverable.

5. Name and balances (Including maximum balances during the year) with the Bank, other than scheduled Banks in Current Accounts are as under. In none of these Banks any of the directors or their relative is interested.

6. The Company has recalled the loan given to M/s Rungta Projects Limited in Nov' 09 with interest charged up to Sep'09. The dues are yet to be recovered and the company is taking adequate steps to recover the same. No interest is being charged on the loan from Oct' 09 onwards, considering the uncertainty over recovery of interest after recall of loan. The management is of the opinion that the outstanding is fully recoverable.

7. Profit & Loss account has been debited during the year with Rs. 26194/-, debited as sales tax expense being interest Rs. 25194/- on delayed payment of sales tax and penalty Rs. 1000/- on delayed submission of returns for the year 2007-08 of Jabalpur branch.

8 Segment Information

The financial results relates mainly to Irrigation products. In accordance with Accounting Standard 17, financial results of Hiring of Equipments are not shown separately, since it is less than the limit specified for separate disclosure.

9 Figures of previous year have been regrouped wherever found necessary to make them comparable with that of current year.


Mar 31, 2010

1. Contingent liabilities not provided for:

a. Sales Tax Authorities have raised demand of Rs. 19.74 lacs for various assessment years and matters are sending with Appellate Authorities and High Court. As per opinion, the appeals are likely to be decided in favour of the Company. (Previous Year: Rs. 26.66 Lacs)

b. The Excise Department has raised a demand of Rs. 1.52 lacs against Service Tax on Transportation charges and the matters are pending with the appellate authorities. As per opinion, the appeals are likely to be decided in the favour of the Company (Previous Year: Rs. 1.52 lacs)

c. The company has given counter guarantee to the bankers against Guarantees issued by Banks on behalf of the company amounting to Rs. 351.90 Lacs (Previous year Rs. 294.13 Lacs). The liability may arrive in case of failure in supply of material or malfunctioning of products supplied by the Company.

2. Estimated amount of contracts remaining to be executed on capital account and not provided for is Rs. NIL (Previous year Rs. Nil).

3. Preferential allotment of Convertible Warrants and its conversion into Equity Shares

a. During the year, Company had issued 20,50,000 Convertible Warrants of Rs. 35/- each aggregating to Rs. 717.50 Lakhs, which was converted into 20,50,000 Equity Shares of Rs. 10/- each at a premium of Rs. 25/- each on 12/01/2010. The object of the issue was to fund the expansion of operation at Greater Noida including relocating of Ghaziabad Unit to Greater Noida.

b. Out of the total fund of Rs. 717.50 lakhs raised through issue, Rs. 142.61 Lakhs has been utilised by giving advance to Greater Noida Authority for purchase of land (including the payment of Rs. 120.53 lakhs incurred before the receipt of preferential warrants proceeds). Out of the remaining unutilised part of the issue Rs. 528.25 lakhs given as ICD and remaining utilised for existing business of the Company.

4. The arrear of cumulative dividend on Cumulative Redeemable Preference Shares calculated @ 7.50% is Rs. 135.80 lakhs (Previous year Rs. 110.75 lakhs). The original dividend rate was 12% which was subsequently reduced to 7.50% hence the arrear is calculated @ 7.50%.

5. The Company has recalled the loan given to M/s Rungta Projects Limited in Nov-09 with interest charged up to Sep-09. The dues are yet to be recovered and the Company is taking adequate steps to recover the same. No interest is being charged on the loan from Oct-09 onwards considering the uncertainty over recovery of interest after recall of loan. The management is of the opinion that the outstanding is fully recoverable.

6. Figures of previous year have been regrouped wherever found necessary to make them comparable with that of current year.

 
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