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Notes to Accounts of Shree Rajeshwaranand Paper Mills Ltd.

Mar 31, 2015

NOTES FORMING PART OF FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2015 GENERAL INFORMATION

1. Shree Rajeshwaranand Paper Mills Limited ('the Company') was incorporated on 20th March, 1991 under The Companies Act, 1956. The company is in the Business of manufacturing of newsprint paper. The company has recently started Tools Division also.

Secured Long Term Borrowings

2. I. [a] Loan from State Bank of India is secured by:

a) First Pari-passu charge by way of hypothecation over entire movable fixed assets of the company for both Paper & Tools division along with Bank of India.

b) First Pari-passu by way of registered mortgage with Bank of India over additional immovable property (Factory building and civil construction) to be created out of proposed projects for Paper & Tools Division.

c) First Pari-passu charge by way of registered mortgage over Factory land & Building belonging to the company situated at Plot no. 442/B admeasuring 82216 sq. mtrs. & plot no. 451/B admeasuring 79692 sq. mtrs. at RS no. 206,238,239,240,294 & 295 at village: Govali. Jhagadia-Bharuch Road, Gujarat with Bank of India

d) First Pari-passu charge by way of registered mortgage over office cum residential premises belonging to the company admeasuring 777.00 square ft sitauted at No.1002,10th floor, "Samudra Annex" Plot No. 322, TPS No.3, Village: Changispur, Ahmedabad, Gujarat with Bank of India.

e) Lien on FDR of' 30.00 Lacs in the name of company.

f) Pledge of 3,03,000 shares of the company in the name of Mr. Prakash Vora/Udyan Velvan.

g) Extension of second charge on entire current assets of the company of the Tools division of the company.

h) Personal guarantee of the directors Mr.Prakash Vora and Mr.Udyan Velvan.The loan has fully paid as on 31st March, 2015.The interest rate is 3.90% above base rate (i.e.13.90%).

3. I. [b] There was no default in repayment of this loan.

4. [a] Loan from State Bank of India is secured by:

a) First Pari-passu charge by way of hypothecation over entire movable fixed assets of the company for both Paper & Tools division along with Bank of India.

b) First Pari-passu by way of registered mortgage with Bank of India over additional immovable property (Factory building and civil construction) to be created out of propsed projects for Paper & Tools Division.

c) First Pari-passu charge by way of registered mortgage over Factory land & Building belonging to the company situated at Plot no. 442/B admeasuring 82216 sq. mtrs. & plot no. 451/B admeasuring 79692 sq. mtrs. at RS no. 206,238,239,240,294 & 295 at village: Govali. Jhagadia-Bharuch Road, Gujarat with Bank of India

d) First Pari-passu charge by way of registered mortgage over office cum residential premises belonging to the company admeasuring 777.00 square ft sitauted at No.1002,10th floor, "Samudra Annex" Plot No. 322, TPS No.3, Village: Changispur, Ahmedabad, Gujarat with Bank of India.

e) Lien on FDR of' 30.00 Lacs in the name of company.

f) Pledge of 3,03,000 shares of the company in the name of Mr. Prakash Vora / Udyan Velvan.

g) Extension of second charge on entire current assets of the company of the Tools division of the company.

h) Personal guarantee of the directors Mr.Prakash Vora and Mr.Udyan Velvan.The Loan of ' 5,36,46,250/- has been converted into USD Loan at the rate of ' 61.31 and hence the loan as at 31st March, 2014 is not repayable in the next financial year. The Interest rate is 3.90% above base rate (i.e. 13.90%).

5. [b] There was no default in repayment of this loan.

6. [a] Term Loan in foreign currency (USD) has been converted from the term loan with State bank of India. It is Secured by:

a) First Pari-passu charge by way of hypothecation over entire movable fixed assets of the company for both Paper & Tools division along with Bank of India.

b) First Pari-passu by way of registered mortgage with Bank of India over additional immovable property (Factory building and civil construction) to be created out of propsed projects for Paper & Tools Division.

c) First Pari-passu charge by way of registered mortgage over Factory land & Building belonging to the company situated at Plot no. 442/B admeasuring 82216 sq. mtrs. & plot no. 451/B admeasuring 79692 sq. mtrs. at RS no. 206,238,239,240,294 & 295 at village: Govali. Jhagadia-Bharuch Road, Gujarat with Bank of India

d) First Pari-passu charge by way of registered mortgage over office cum residential premises belonging to the company admeasuring 777.00 square ft sitauted at No.1002,10th floor, "Samudra Annex" Plot No. 322, TPS No.3, Village: Changispur, Ahmedabad, Gujarat with Bank of India.

e) Lien on FDR of' 30.00 Lacs in the name of company.

f) Pledge of 3,03,000 shares of the company in the name of Mr. Prakash Vora / Udyan Velvan.

g) Extension of second charge on entire current assets of the company of the Tools division of the company.

h) Personal guarantee of the directors Mr.Prakash Vora and Mr.Udyan Velvan. The loan as on 31st March, 2015 is repayable in 7 equal monthly installments of USD 13,000/- and thereafter a single payment of USD 7,40,500/-.

The interest rate is 4.84% over LIBOR.

7. [b] There was no default in repayment of this loan.

8. [a] Loan from State Bank of India is secured by:

a) First Pari-passu charge by way of hypothecation over entire movable fixed assets of the company for both Paper & Tools division along with Bank of India.

b) First Pari-passu by way of registered mortgage with Bank of India over additional immovable property (Factory building and civil construction) to be created out of propsed projects for Paper & Tools Division.

c) First Pari-passu charge by way of registered mortgage over Factory land & Building belonging to the company situated at Plot no. 442/B admeasuring 82216 sq. mtrs. & plot no. 451/B admeasuring 79692 sq. mtrs. at RS no. 206,238,239,240,294 & 295 at village: Govali. Jhagadia-Bharuch Road, Gujarat with Bank of India

d) First Pari-passu charge by way of registered mortgage over office cum residential premises belonging to the company admeasuring 777.00 square ft sitauted at No.1002,10th floor, "Samudra Annex" Plot No. 322, TPS No.3, Village: Changispur, Ahmedabad, Gujarat with Bank of India.

e) Lien on FDR of' 30.00 Lacs in the name of company.

f) Pledge of 3,03,000 shares of the company in the name of Mr. Prakash Vora / Udyan Velvan.

g) Extension of second charge on entire current assets of the company of the Tools division of the company.

h) Personal guarantee of the directors Mr.Prakash Vora and Mr.Udyan Velvan.The Loan as on 31st March 2015 is repayable in single final installment of Rs. 91,847/- in the month of April 2015.

The interest rate is 3.85% above base rate (i.e. 13.85%).

9. [b] There was no default in repayment of this loan.

10. [a] Term Loan in foreign currency (USD) has been converted from the term loan with State bank of India. It is Secured by:

a) First Pari-passu charge by way of hypothecation over entire movable fixed assets of the company for both Paper & Tools division along with Bank of India.

b) First Pari-passu by way of registered mortgage with Bank of India over additional immovable property (Factory building and civil construction) to be created out of propsed projects for Paper & Tools Division.

c) First Pari-passu charge by way of registered mortgage over Factory land & Building belonging to the company situated at Plot no. 442/B admeasuring 82216 sq. mtrs. & plot no. 451/B admeasuring 79692 sq. mtrs. at RS no. 206,238,239,240,294 & 295 at village: Govali. Jhagadia-Bharuch Road, Gujarat with Bank of India

d) First Pari-passu charge by way of registered mortgage over office cum residential premises belonging to the company admeasuring 777.00 square ft sitauted at No.1002,10th floor, "Samudra Annex" Plot No. 322, TPS No.3, Village: Changispur, Ahmedabad, Gujarat with Bank of India.

e) Lien on FDR of' 30.00 Lacs in the name of company.

f) Pledge of 3,03,000 shares of the company in the name of Mr. Prakash Vora / Udyan Velvan.

g) Extension of second charge on entire current assets of the company of the Tools division of the company.

h) Personal guarantee of the directors Mr.Prakash Vora and Mr.Udyan Velvan. The loan has fully paid as on 31st March, 2015. The interest rate is 4.84% over LIBOR.

11. [b] There was no default in repayment of this loan.

12. I. [a] Loan from State Bank of India is secured by:

a) First Pari-passu charge by way of hypothecation over entire movable fixed assets of the company for both Paper & Tools division along with Bank of India.

b) First Pari-passu by way of registered mortgage with Bank of India over additional immovable property (Factory building and civil construction) to be created out of propsed projects for Paper & Tools Division.

c) First Pari-passu charge by way of registered mortgage over Factory land & Building belonging to the company situated at Plot no. 442/B admeasuring 82216 sq. mtrs. & plot no. 451/B admeasuring 79692 sq. mtrs. at RS no. 206,238,239,240,294 & 295 at village: Govali. Jhagadia-Bharuch Road, Gujarat with Bank of India

d) First Pari-passu charge by way of registered mortgage over office cum residential premises belonging to the company admeasuring 777.00 square ft sitauted at No.1002,10th floor, "Samudra Annex" Plot No. 322, TPS No.3, Village: Changispur, Ahmedabad, Gujarat with Bank of India.

e) Lien on FDR of' 30.00 Lacs in the name of company.

f) Pledge of 3,03,000 shares of the company in the name of Mr. Prakash Vora / Udyan Velvan.

g) Extension of second charge on entire current assets of the company of the Tools division of the company.

h) Personal guarantee of the directors Mr.Prakash Vora and Mr.Udyan Velvan.

The loan as at 31st March, 2014 is repayable in 4 equal quarterly installment of Rs.22.50 lacs. The interest rate is 3.85% above base rate (i.e.13.85%)

13. I. [b] There was no default in repayment of this loan.

14. [a] Loan from Bank of India is secured by:

a) First Pari Passu Charge over Machinery. Utilities, Civil Construction, Site Development (Paper Division).

b) First Pari Passu Charge over Machinery. Utilities, Civil Construction, Site Development (Tools Division).

c) First Pari Passu over Land & Building situated at RS No. 451B, 442B of Mouje Village Mulad sim, Taluka Jhagdia on which business is carried outa) 5% of the term loan to be repaid during F.Y 2015-16 i.e from April 2015 to March 2016, 12 monthly installments of' 4.89 Lacs each.

d) First Pari Passu charge over existing plant & machinery of the company.

e) First charge on Stocks of Tool Divisions.

f) First charge on Book Debts of Tools Division.

g) Pledge of TDRs as margin on L/C.

h) First Pari Passu charge over office situated at no. 1002, 10th floor, Samudra Annex, Plot No. 322 TPS No. 3, Village Changispur, Ahmedabad

15. Second Charge over current assets of Paper Division. Repayment Schedule :

a) 5% of the term loan to be repaid during F.Y 2015-16 i.e from April 2015 to March 2016, 12 monthly installments of' 4.89 Lacs each.

b) 10% of the term loan to be repaid during F.Y 2016-17 i.e from April 2016 to March 2017, 12 monthly installments of' 9.80 Lacs each.

c) 15% of the term loan to be repaid during F.Y 2017-18 i.e from April 2017 to March 2018, 12 monthly installments of' 14.68 Lacs each.

d) 20% of the term loan to be repaid during F.Y 2018-19 i.e from April 2018 to March 2019, 12 monthly installments of' 19.58 Lacs each.

e) 25% of the term loan to be repaid during F.Y 2019-20 i.e from April 2019 to March 2020, 12 monthly installments of' 24.48 Lacs each.

f) 25% of the term loan to be repaid during F.Y 2020-21 i.e from April 2020 to March 2021, 10 monthly installments of' 26.71 Lacs each and last installment of' 26.74 Lacs

16. I.[b] There was no default in repayment of this loan.

17. [a] Loan from Bank of India is secured by:

a) First Pari Passu Charge over Machinery. Utilities, Civil Construction, Site Development (Paper Division).

b) First Pari Passu Charge over Machinery. Utilities, Civil Construction, Site Development (Tools Division).

c) First Pari Passu over Land & Building situated at RS No. 451B, 442B of Mouje Village Mulad sim, Taluka Jhagdia on which business is carried outa) 5% of the term loan to be repaid during F.Y 2015-16 i.e from April 2015 to March 2016, 12 monthly installments of Rs.4.89 Lacs each.

d) First Pari Passu charge over existing plant & machinery of the company.

e) First charge on Stocks of Tool Divisions.

f) First charge on Book Debts of Tools Division.

g) Pledge of TDRs as margin on L/C

a) 5% of the term loan to be repaid during F.Y 2015-16 i.e from April 2015 to March 2016, 12 monthly installments of' 3.34 Lacs each.

b) 10% of the term loan to be repaid during F.Y 2016-17 i.e from April 2016 to March 2017, 12 monthly installments of' 6.67 Lacs each.

c) 15% of the term loan to be repaid during F.Y 2017-18 i.e from April 2017 to March 2018, 12 monthly installments of ' 10 00 I acs each

d) 20% of the term loan to be repaid during F.Y 2018-19 i.e from April 2018 to March 2019, 12 monthly installments of' 13.33 Lacs each.

e) 25% of the term loan to be repaid during F.Y 2019-20 i.e from April 2019 to March 2020, 12 monthly installments of' 1667 Lacs each.

f) 25% of the term loan to be repaid during F.Y 2020-21 i.e from April 2020 to March 2021, 10 monthly installments of' 18.17 Lacs each and last installment of' 18.18 Lacs

18. I.[b] There was no default in repayment of this loan.

19. [a] Loan from HDFC Bank for Tractor Loan is secured by hypothecation of the vehicle financed by the bank. The loan as at 31st March, 2015 is fully repaid (including interest) each.The interest rate is 15% p.a.3.3.9

20. [b] There was no default in repayment of this loan.

21. [a] Loan from HDFC Bank for Tractor Loan is secured by hypothecation of the vehicle financed by the bank. The loan as at 31st March, 2015 is fully repaid (including interest) each.The interest rate is 15% p.a.

22. [b] There was no default in repayment of this loan.

23. [a] Loan from HDFC Bank for Tractor Loan is secured by hypothecation of the vehicle financed by the bank. The loan as at 31st March, 2015 is repayable in 16 equal monthly installments from April 2015 of' 20,813/- (including interest) each. The interest rate is 16% p.a.

24. [b] There was no default in repayment of this loan.

25. [a] Loan from HDFC Bank for Tractor Loan is secured by hypothecation of the vehicle financed by the bank. The loan as at 31st March, 2015 is repayable in 16 equal monthly installments from April 2015 of' 3,516/- (including interest) each. The interest rate is 16% p.a.

26. [b] There was no default in repayment of this loan.

27. [a] Loan from HDFC Bank for Maruti Eco is secured by hypothecation of the vehicle financed by the bank. The loan as at 31st March, 2015 is repayable in 17 equal monthly installments from April 2015 of' 11,130/- (including interest) each. The interest rate is 16% p.a.

28. [b] There was no default in repayment of this loan.

29. [a] Loan from HDFC Bank for Tractor Loan is secured by hypothecation of the vehicle financed by the bank. The loan as at 31st March, 2015 is repayable in 30 equal monthly installments from April 2014 of Rs.16,986/- (including interest) each.The interest rate is 14.10% p.a.

30. [b] There was no default in repayment of this loan.

31. [a] Loan from HDFC Bank for Maruti Van Loan is secured by hypothecation of the vehicle financed by the bank. The loan as at 31st March, 2015 is repayable in 31 equal monthly installments from April 2014 of' 7,625/- (including interest) each.The interest rate is 12.60% p.a.

32. [b] There was no default in repayment of this loan.

Unsecured Long Term Borrowings

33. [a] Loan from Tata Capital Financial Services as at 31st March, 2015 is repayable in 11 equal monthly installments from April 2014 of ' 1,27,413/- (including interest). The Interest Rate is 18.44%.

34. [b] There was no default in repayment of this loan.

35. [a] Loan from Bajaj Finance Ltd. as at 31st March, 2015 is repayable in 11 equal monthly installments of' 1,29,758/- (including interest). The Interest Rate is 19.10%.

36. [b] There was no default in repayment of this loan.

37. [a] Loan from Magma Fincorp Ltd. as at 31st March, 2015 is repayable in 40 equal monthly installments of' 1,31,015/- (including interest). The Interest Rate is 17.50%.

38. [b] There was no default in repayment of this loan.

39.[a] Loan from Religare Finvest Ltd. as at 31st March, 2015 is repayable in 28 equal monthly installments of' 1,80,437/- (including interest). The Interest Rate is 19.01%.

40. [b] There was no default in repayment of this loan.

41. [a] Loan from Bajaj Finance Ltd. as at 31st March, 2015 is repayable in 28 equal monthly installments of' 81,196/- (including interest). The Interest Rate is 19.01%.

42. [b] There was no default in repayment of this loan.

43. [a] Intercorporate Deposits would not be recalled before end of two years from 31st March, 2015.

44. [b] There is no default as the repayment is not due.

45. [a] Loan from related parties would not be recalled before end of two years from 31st March, 2015.

46. [b] There is no default as the repayment is not due.

47. [a] Cash Credit Facility from State bank of India is secured by:

a) First Charge over entire current assets such as stocks of raw materials, finished goods, stores & spares, SIP, receivables etc. of the company.

b) Lien on FDR of' 30.00 lacs in the name of company.

c) Pledge of 1,03,000 shares of the company in the name of Mr. Prakash Vora / Udyan Velvan.

d) Extension of charge over company's movable and immovable fixed assets.

e) Personal guarantee of the directors Mr.Prakash Vora and Mr.Udyan Velvan.

48. [b] The loan is repayable on demand. The interest rate is 3.75% above the base rate (i.e.13.75%).

49. [a] Loan from Bank of India is secured by:

a) First Pari Passu Charge over Machinery. Utilities, Civil Construction, Site Development (Paper Division).

b) First Pari Passu Charge over Machinery. Utilities, Civil Construction, Site Development (Tools Division).

c) First Pari Passu over Land & Building situated at RS No. 451B, 442B of Mouje Village Mulad sim, Taluka Jhagdia on which business is carried outa)

d) First Pari Passu charge over existing plant & machinery of the company.

e) First charge on Stocks of Tool Divisions.

f) First charge on Book Debts of Tools Division.

g) Pledge of TDRs as margin on L/C.

h) First Pari Passu charge over office situated at no. 1002, 10th floor, Samudra Annex, Plot No. 322 TPS No. 3, Village Changispur, Ahmedabad

i) Second Charge over current assets of Paper Division.

50. [b] The loan is repayable on demand. The interest rate is 3.55% above the base rate (i.e.13.75%).

51. [a] Working Capital Loan in foreign currency (USD) from State Bank of India has been converted from the cash credit facility available with the bank.It is secured by:

a) First Charge over entire current assets such as stocks of raw materials, finished goods, stores & spares, SIP, receivables etc. of the company.

b) Lien on FDR of' 30.00 lacs in the name of company.

c) Pledge of 1,03,000 shares of the company in the name of Mr. Prakash Vora / Udyan Velvan.

d) Extension of charge over company's movable and immovable fixed assets.

e) Personal guarantee of the directors Mr.Prakash Vora and Mr.Udyan Velvan.

52. [b] The loan as on 31st March, 2015 is repayable in a six monthly installment of USD 13,47,945/- each.

The interest rate is 4.84% over LIBOR.

53. CONTINGENT LIABILITIES AND COMMITMENTS

(I) Contingent Liabilities

(A) Claims against the company/ disputed liabilities not acknowledged as debts.

(i) Sales Tax 12,747,316 12,747,316

(ii) Income Tax 153,510 153,510

(B) Guarantees

(i) Performance Guarantees 20,586,300 15,417,300

(II) Capital Commitments

(a) Estimated amount of contracts remaining to be executed on

Capital Account and not provided for 77,128,000 196,128,000 (net of advances)

54. Foreign exchange loss (net) of ' 1,24,359/- (Previous year' 12,466/-) has been included in respective heads of the Statement of Profit and Loss.

55. SEGMENT REPORTING

Information about Primary segment (by business segment)

Manufacturing of Newsprint Paper

Manufacturing of Tools

The Company's business segments are organized around product lines which have been identified taking into account the nature of products, the different risks and returns the organizational structure and internal reporting systems.

Segment revenue, segment results, segment assets and segment liabilities include the respective amount identifiable to each of the segment as also the amount allocated on reasonable basis. The incomes which are not directly relatable to the business segment are shown as unallocable income.

56. RELATED PARTY DISCLOSURE

List of Related Parties : Particulars

Subsidiaries /Associates NIL

Key Management Personnel 1) Prakash R. Vora

2) Udayan V. Velvan

Enterprise with common key management personnel NIL

Enterprise in which key management personnel, 1) Kankavati and their relatives have significant influence Investment Pvt. Ltd.

Relative of key management personnel. 1) Hemali Vora

2) Shripal Vora

3) Parth Velvan

Note:

Related Parties Relationship is as identified by the company and relied upon by the auditors.

Figures in the brackets represent previous year figures.

57. There are no leases in the year under consideration.

58. In the year under consideration the Company has purchased power units online for self consumption, the credit of these units has been given by GEB . Power and Fuel Expenses are arrived after considering the net surplus of credit received from GEB and online purchase of units of ' NI L/-( P.Y ' 2,92,76,724/ -), received from GEB for the above units.

59. The balance confirmations have been sent to Sundry Debtors, Creditors, Deposits and Loans & Advances Parties, due adjustment if any shall be done on receipt of the confirmation. Management is confident of receiving all the sums due. The provisions for all known liabilities and for depreciation is adequate and not in excess of the amounts reasonably necessary.

60. In the opinion of the board the current assets, loans and advances are approximately of the values stated in the Balance Sheet, realized in the ordinary course of business.

61. In the absence of declaration from sundry creditors / suppliers with regard to their status as SSI Undertaking wherever appropriate, it is not possible to determine the amount, payable to sundry creditors falling within the meaning of SSI Undertaking.

62. Disclosure under Micro, Small and Medium Enterprises development Act, 2006. The Company has not received any memorandum (as required to be filed by the suppliers with notified authority under the Micro, Small and Medium Enterprises development Act, 2006) claiming their status as micro, small and medium enterprises. Consequently the amount paid/payable to these parties during the period under review is NIL

63. Premium on forward contract are considered as expense in proportion to the life of the term loan, Thus out of the total forward premium of incurred ' 3,13,34,886/- (P.Y. ' 2,58,03,865/-) the premium written off and included in other borrowing cost is ' 2,08,10,707/-(P.Y. ' 1,30,68,036/-).

64. Previous Year Figures have been regrouped & reclassified/rearranged wherever necessary..


Mar 31, 2014

GENERAL INFORMATION

Shree Rajeshwaranand Paper Mills Limited (''the Company'') was incorporated on 20th March, 1991 under The Companies Act, 1956. The company is in the Business of manufacturing of newsprint paper. The company has recently started Tools Division also.

1. CONTINGENT LIABILITIES AND COMMITMENTS

(In Rs.)

PARTICULARS 2013-14 2012-13

(I) Contingent Liabilities

(A) Claims against the company/ disputed liabilities not acknowledged as debts.

(i) Sales Tax 12,689,571 1,13,96,003

(ii) Income Tax 153,510 -

(B) Guarantees

(i) Performance Guarantees 15,417,300 11,100,000

(II) Capital Commitments

(a) Estimated amount of contracts remaining to be executed on Capital Account and not provided for (net of advances) 196,128,000 67,766,305

2. Foreign exchange loss (net) of Rs.12,466/- (Previous year NIL) has been included in respective heads of the Statement of Profit and Loss.

3. SEGMENT REPORTING

Information about Primary segment (by business segment)

Manufacturing of Paper Manufacturing of Tools

The Company''s business segments are organized around product lines which have been identified taking into account the nature of products, the different risks and returns the organizational structure and internal reporting systems.

Segment revenue, segment results, segment assets and segment liabilities include the respective amount identifiable to each of the segment as also the amount allocated on reasonable basis. The incomes which are not directly relatable to the business segment are shown as unallocable income.

4. There are no leases in the year under consideration.

5 In the year under consideration the Company has purchased power units online for self consumption, the credit of these units has been given by GEB . Power and Fuel Expenses are arrived after considering the net surplus of credit received from GEB and online purchase of units of Rs.2,92,76,724/- (P.Y Rs.1,52,92,352/-), received from GEB for the above units.

6 The balance confirmations have been sent to Sundry Debtors, Creditors, Deposits and Loans & Advances Parties, due adjustment if any shall be done on receipt of the confirmation. Management is confident of receiving all the sums due. The provisions for all known liabilities and for depreciation is adequate and not in excess of the amounts reasonably necessary.

7 In the opinion of the board the current assets, loans and advances are approximately of the values stated in the Balance Sheet, realized in the ordinary course of business.

8 In the absence of declaration from sundry creditors / suppliers with regard to their status as SSI Undertaking wherever appropriate, it is not possible to determine the amount, payable to sundry creditors falling within the meaning of SSI Undertaking.

9 Disclosure under Micro, Small and Medium Enterprises development Act, 2006. The Company has not received any memorandum (as required to be filed by the suppliers with notified authority under the Micro, Small and Medium Enterprises development Act, 2006) claiming their status as micro, small and medium enterprises. Consequently the amount paid/payable to these parties during the period under review is NIL.

10 Premium on forward contract are considered as expense in proportion to the life of the term loan, Thus out of the total forward premium of incurred Rs.2,02,19,085/- (P.Y. 87,41,208/-) the premium written off and included in other borrowing cost is Rs.1,30,68,036/- (P.Y. 31,56,429/-).

11 Previous Year Figures have been regrouped & reclassified/rearranged wherever necessary.ssss


Mar 31, 2013

GENERAL INFORMATION

Shree Rajeshwaranand Paper Mills Limited (‘the Company'') was incorporated on 20th March, 1991 under The Companies Act, 1956. The company is in the Business of manufacturing of newsprint paper.

1. CONTINGENT LIABILITIES AND COMMITMENTS

(In )

PARTICULARS 2012-13 2011-12

(I) Contingent Liabilities

(A) Claims against the company/ disputed liabilities not acknowledged as debts.

(i) Sales Tax 1,13,96,003 1,13,96,003

(B) Guarantees

(i) Performance Guarantees 1,11,00,000 91,00,000

(II) Capital Commitments

(a) Estimated amount of contracts remaining to be executed on

Capital Account and not provided for (net of advances) 6,77,66,305 2,55,71,633

2 EMPLOYEE BENEFITS:

The principal actuarial valuation assumptions used as at the balance sheet date are as under:

1) Valuation Date : 1st March, 2013

2) Valuation Method : Projected Unit Credit Method

3) Mortality Rate : LIC (1994-96) Ultimate

4) Withdrawal Rate : 1% to 3% depending on age

5) Discount Rate : 8% p.a.

6) Salary Escalation : 7%

3A.Foreign exchange gain/loss (net) of Rs. NIL (Previous year Rs. NIL) has been included in respective heads of the Statement of Profit and Loss.

4. SEGMENT REPORTING

In the year under consideration the company has started to set up a new division for manufacturing tools, the company has till date incurred Rs. 2,13,81,025/- towards its establishment cost. The work is still under process. As there are no operation in this division in the year under consideration, no segment reporting is made thereon.

5. There are no leases in the year under consideration.

6. In the year under consideration the Company has purchased power units online for self consumption, the credit of these units has been given by GEB . Power and Fuel Expenses are arrived after considering the credit of Rs. 1,52,92,352/-( P. Y Rs. NIL), received from GEB for the above units.

7. Confirmations to creditors, debtors, loans taken and loans given are sent to the concerned party, due adjustments, if any will be made on receipt of such confirmations. Management is confident of receiving all the sums due. The provisions for all known liabilities and for depreciation is adequate and not in excess of the amounts reasonably necessary.

8. Advances Recoverable in Cash or in kind include amount due from Companies/Firms under the same management, of Rs. NIL (Previous Year Rs. NIL )

9. There are no Sundry debtor''s dues from the Companies/Firms under the same Management (P.Y.NIL).

10. In the opinion of the board the current assets, loans and advances are approximately of the values stated in the Balance Sheet, realized in the ordinary course of business.

11. In the absence of declaration from sundry creditors / suppliers with regard to their status as SSI Undertaking wherever appropriate, it is not possible to determine the amount, payable to sundry creditors falling within the meaning of SSI Undertaking.

12. Disclosure under Micro, Small and Medium Enterprises development Act, 2006. The Company has not received any memorandum (as required to be filed by the suppliers with notified authority under the Micro, Small and Medium Enterprises development Act, 2006) claiming their status as micro, small and medium enterprises. Consequently the amount paid/payable to these parties during the period under review is NIL (P.Y. NIL)

13. Premium on forward contract are considered as expense in proportion to the life of the term loan, Thus out of the total forward premium of Rs. 87,41,208/- (P.Y. NIL) the premium written off and included in other borrowing cost is Rs. 31,56,429/- (P.Y. NIL).

14. Previous Year Figures have been regrouped & reclassified/rearranged wherever necessary.


Mar 31, 2012

1.1.1(a) Loan from State Bank of India is secured by hypothecation of all movable & immovable assets and equitable mortgage of factory land & building of the company present & future and personal guarantee of some of the the Directors. The loan as at 31st March, 2012 is repayable in 9 equal quarterly installments of Rs.25.00 lacs each and last quarter installment of Rs.50.00 lacs. The interest rate is 14.50% (i.e.4.50%) above base rate.

1.1.1 (b) There was no default in repayment of this loan.

1.1.2(a) Loan from State Bank of India is secured by hypothecation of all movable & immovable assets and equitable mortgage of factory land & building of the company present & future and personal guarantee of some of the the Directors. The loan as at 31st March, 2012 is repayable in 2 equal monthly installments of Rs.13.33 lacs each and thereafter in 38 monthly installment of Rs.8.33 lacs. The interest rate is 14.50% (i.e.4.50%) above base rate.

1.1.2(b) There was no default in repayment of this loan.

1.1.3(a) Loan from State Bank of India for Capex Loan is secured by hypothecation of all movable & immovable assets and equitable mortgage of factory land & building of the company present & future and personal guarantee of some of the the Directors. The loan as at 31st March, 2012 is repayable in 12 equal quarterly installments of Rs.15.00 lacs each and thereafter in 4 quarterly installment of Rs.22.50 lacs. The interest rate is 14.50% (i.e. 4.50%) above base rate.

1.1.3(b) There was no default in repayment of this loan.

1.1.4(a) Loan from HDFC Bank for Tractor Loan is secured by hypothecation of the vehicle financed by the bank. The loan as at 31st March, 2012 is repayable in 29 equal monthly installments of Rs.18.89 thousand each

1.1.4(b) There was no default in repayment of this loan.

1.1.5(a) Loan from HDFC Bank for Tractor Loan is secured by hypothecation of the vehicle financed by the bank. The loan as at 31st March, 2012 is repayable in 29 equal monthly installments of Rs.03.47 thousand each

1.1.5(b) There was no default in repayment of this loan.

Unsecured Long Term Borrowings

1.1.6 (a) Loan from other parties would not be recalled before end of two years from 31st March, 2012. There are no terms for repayment of the loan.

1.1.6 (b) Since there is no terms of repayment, default in repayment of this loan can not be determined.

1.1.7 (a) Loan from related parties would not be recalled before end of two years from 31st March, 2012.

There are no terms for repayment of the loan.

1.1.7 (b) Since there is no terms of repayment, default in repayment of this loan can not be determined.

2. Current Tax.

Provision for Income Tax is determined in accordance with the applicable provisions of the Income Tax Act, 1961.

3. In the opinion of the board the current assets, loans and advances are approximately of the values stated in the Balance Sheet, realized in the ordinary course of business. The company has informed that the balance confirmations have been sent to parties due adjustments will be made if any on receipt

4. The loans from State Bank Of India have been secured by personal guarantee of two directors and also some shares held by them are pledged, over and above the assets of the Company. Interest includes interest to Bank of Baroda of Rs. 3324626/- and State Bank of India of Rs. 4282602/- on their term loans.

5. The Company had retained Sales Tax Collection under Sales Tax incentive Scheme of the Government of Gujarat approved vide their letter No. 4394/99 dated 25-01-2002. The repayment of which has started from the year 2006 in six equal yearly installments. The outstanding as on the year end is Rs.Nil (Previous year Rs.24,58,574/-)

6. Previous year figures have been regrouped & reclassified wherever necessary.

7. Additional information pursuant to Para 3 & 4 of part II of Schedule VI to the Companies Act, 1956.


Mar 31, 2010

1. All the opening balances are accepted as certified by the Management.

2. The balances of sundry Debtors, Creditors, Loans & Advances and operative banks (as stated by the management) are accepted as appearing in the ledger accounts and subject to confirmation from individual parties concerned. Management is confident of receiving all the sums due from debtors and the advances.

3. In the opinion of the board the current assets, loans and advances are approximately of the values stated in the Balance Sheet, realized in the ordinary course of business. The company has informed that the balance confirmations have been sent to parties due adjustments will be made if any on receipt thereof.

4. The loans from Bank of Baroda have been secured by personal guarantee of Chairman & Managing Director of the Company. Interest includes interest to Bank of Baroda of Rs. 1,83,17,849/- on their term loans.

5. The Company has to repay term loan of Bank of Baroda in 51 quarterly installments of Rs. 60 Lacs each beginning from June, 2009.

6. The Company has retained Sales Tax Collection aggregating to Rs.. Nil (Previous Year Nil) outstanding of.70,73,226/- as shown in the Balance Sheet under the head "Unsecured Loans" which represents interest free sales tax loan under Sales Tax incentive Scheme of the Government of Gujarat approved vide their letter No. 4394/99 dated 25-01-2002. The repayment of which has started from the year 2006 in six equal yearly installments.

7. Previous year figures have been regrouped & reclassified wherever necessary.

8. Additional information pursuant to Para 3 & 4 of part II of Schedule VI to the Companies Act, 1956.

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