Mar 31, 2015
1. CORPORATE INFORMATION
Raj Oil Mills was started in 1943 with the production of mustard oil.
The organization, since then, has brought into the market a number of
quality products and enjoyed the trust of millions of consumers. Raj
Oil Mills continues to remain a landmark organization for both its
employees and dedicated customers.
Raj Oil Mills enjoys the support of not just its domestic customers,
but has enhanced the taste of food in countries. The company has plans
to further penetrate into the international markets and spread its
product availability to customers who recognize our high quality brand
values.
2. BASIS OF PREPARATION OF FINANCIAL STATEMENT
These financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles (GAAP) under the historical
cost convention on the accrual basis except for certain financial
instruments which are measured at fair values. GAAP comprises mandatory
accounting standards as prescribed under Section 133 of the Companies
Act, 2013 ('Act') read with Rule 7 of the Companies (Accounts) Rules,
2014, the provisions of the Act (to the extent notified) and guidelines
issued by the Securities and Exchange Board of India (SEBI). Accounting
policies have been consistently applied except where a newly issued
accounting standard is initially adopted or are vision to an existing
accounting standard requires a change in the accounting policy hitherto
in use.
3. The GDR raised had utilized towards Loans & Advances for general
corporate purposes as per the object of the issue and the remaining
amount is utilized for payment of statutory liabilities of the company.
Relevant documents and confirmation of balances are yet to be obtained
4. The balance of sundry debtors, Creditors, Loans & advances, Banks
are subject to their confirmation and reconciliation (if any). Bank
balance subject to cheques on hand realization.
5. Debtors written off during the year are debtors which have
consistently coming in books of account for more than 3 years and
Management is of the opinion same is not recoverable even after regular
follow up with the client.
6. The Company has not received any intimation from suppliers
regarding their status under micro, Small and Medium Enterprises
Development Act,2006 and hence disclosure if any in relation to amount
unpaid as at the yearend as required under the said Act have not been
furnished.
7. Segment Reporting:
As the Company's business activity falls within a single primary
business segment "Edible Oil & Cakes" the disclosure requirement of
Accounting Standard (AS) 17 "Segment Reporting" are not applicable.
8. "Advances to Employees" under "Short term Loan & Advance" head in
the balance sheet includes loan to staff of the Company amounting to
Rs. 1.44 Lacs (Previous Year: Rs. 3.30 Lacs).
9. In the opinion of the Board, current assets, loans and advances
have a value at least equal to the amounts at which they are stated in
the Balance Sheet, if realized in ordinary course of business.
11. As per accounting standard 22, issued by the Institute of
Chartered Accountants of India, the Deferred Tax Liability of Rs.91.52
Lacs (P.Y.-NIL) has been recognized in the Profit & Loss Account. The
reason for the same being the company has incurred a loss of Rs.850
Lacs (P.Y.- Rs. 29049 Lacs) after tax. The Deferred Tax Liability
arises mainly due to the timing difference of brought forward losses
and depreciation claimed as per the books of account and the
depreciation claimed under the Income tax Act, 1961.
12. Public Deposits Accepted:
During the period Company has not accepted any fixed deposit from the
public under the provision of Section 73 to 76 or any relevant
provision of the companies Act, 2013 and the Companies (Acceptance of
Deposits) Rules, 1975.
13. Contingent Liabilities
a. Income Tax
The Assistant Commissioner of Income Tax, Mumbai has passed an order
u/s 143(3) w.r.t Section 153A of the Income Tax Act, 1961 for the
Assessment Year 2005-06 to 2011-12 and u/s 143(3) of the Income Tax
Act, 1961 for the Assessment Year 2011-12 and issued Notice of Demand
u/s 156 of Income Tax Act, 1961 for sum of Rs. 241.25 crore. The
company has preferred an appeal against the said order before the
Commissioner Appeals of Income Tax, Mumbai and the case is pending. The
Company has been legally advised that the demand is likely to be
deleted or substantially reduced and accordingly no provision has been
made in the books of accounts.
b. Sales Tax
The Assistant Commissioner of Sales Tax Investigation Branch, Mumbai
has demanded a sum of Rs. 9.84 crore. The case is pending before the
Assistant Commissioner of Sales Tax (Investigation), Mumbai.
14. Going Concern Assumption
During the financial period the Company has incurred loss of Rs. 850
Lacs and its 100% net worth is eroded. Lack of adequate working capital
has also affected the operations, resulting in partial running or
closure of plants (for a limited period). Company is in the process of
restructuring its business; hive off non-core assets for reducing debt
burden through some strategic alliance or introduce any potential
investor which is in process. This would enable the Company to tide
over its continuing financial burden and ensure smoother running of its
plants. Under the circumstances, the financial statements have been
prepared on Going Concern basis and in the opinion of the management no
adjustments are considered necessary to the carrying value of its
assets and liabilities.
15. Related Party Transactions
Parties are considered to be related if at any time during the year;
one party has the ability to control the other party or to exercise
significant influence over the other party in making financial and/or
operating decision. As required by Accounting Standard (AS) -18
"Related Party Disclosure" issued by The Institute of Chartered
Accountants of India, information in this respect is as follows:
I. Individual(s) having control with relatives and associate :
Mr. Shaukat S. Tharadra Mrs. Shahida S. Tharadra
II. Key-Management Personnel :
Name Designation
Shaukat S. Tharadra Chairman & Managing Director (CMD)
AzamkhanF.Lohani Whole-time Director
Rashid I. Tharadra Whole-time Director
Abdulla K. Musla Whole-time Director
Saryu Vora Independent Director
III. Entities owned or significantly influenced by Directors and/or
key management
Personnel or their relative and with whom Company has entered into
transaction during the period under review:
Entities Nature of Relationship
Raj Oil Mills Ltd Employee's Gratuity Trust Associates
Raj Oil Mills Associate concern
Raj Builders Associate concern
16.. The previous year figures have been regrouped / reclassified
wherever necessary to confirm the current year presentation.
Mar 31, 2014
NOTE - 25
CORPORATE INFORMATION
Raj Oil Mills was started in 1943 with the production of mustard oil.
The organization, since then, has brought into the market a number of
quality products and enjoyed the trust of millions of consumers. Raj
Oil Mills continues to remain a landmark organization for both its
employees and dedicated customers.
Raj Oil Mills enjoys the support of not just its domestic customers,
but has enhanced the taste of food in countries as wide-spread as Saudi
Arabia, Japan, Myanmar, Bangladesh, UK and Africa. The company''s
dedication to quality and brand values is seen in the stupendous
response received from overseas customers for its premium brand of
products. The company has plans to further penetrate into the
international markets and spread its product availability to customers
who recognize our high quality brand values.
BASIS OF PREPARATION OF FINANCIAL STATEMENT The Financial Statements
are prepared as per historical cost convention and in accordance with
the Generally Accepted Accounting Principles in India, the provisions
of the Companies Act 1956 , and the applicable Accounting Standards
notified under the Companies (Accounting Standards) Rules, 2006. All
Income and Expenditures having material bearing on the Financial
Statements are recognized on accrual basis.
2. Global Depository Receipts (GDRs):
The Company raised US $ 7.76 million (Rs. 43.40 Crores) through the
issue of 0.7 million Global Depository Receipts (GDRs) on July 26,
2012. Each GDR represents fifty underlying equity share of Rs. 10 each
and the issue got listed with London Stock Exchange. The issue was
priced at US $ 11.084 for each GDR. From the net proceeds of US $ 7.52
million ( after having adjusted US $ 0.24 million towards issue related
expenses) the company had utilized US $ 7.30 million towards Loans and
Advances towards general corporate purposes as per the object of the
issue and the remaining balance is utilized for the payment of
statutory liabilities of the company. Relevant documents and
confirmation of balances are yet to be obtained.
3. The balance of sundry debtors, Creditors, Loans & advances, Banks
are subject to their confirmation and reconciliation if any. Bank
balance subject to cheques on hand realization.
4. Pursuant to the management information and decision in respect debts
which are appearing in the books for more than 2years, It has been
informed by management upon their taking decision to write off the
same. In view of the facts that the same are not recoverable despite
regular follow up even there is a special appointment of Chartered
Accountant firm to ensure correct off. Accordingly the same has been
done.
5. The Company has not received any intimation from suppliers regarding
their status under micro, Small and Medium Enterprises Development
Act,2006 and hence disclosure if any in relation to amount unpaid as at
the yearend as required under the said Act have not been furnished.
6. Segment Reporting:
As the Company''s business activity falls within a single primary
business segment "Edible Oil & Cakes" the disclosure requirement of
Accounting Standard (AS) 17 "Segment Reporting" are not applicable.
7. "Advances to Employees" under "Short term Loan &Advance" head in
the balance -sheet includes loan to staff of the Company amounting to
Rs.0.03 Crores (Previous Year: Rs. 0.02 Crores).
8. In the opinion of the Board, current assets, loans and advances
have a value at least equal to the amounts at which they are stated in
the Balance Sheet, if realized in ordinary course of business.
9. As per accounting standard 22, issued by the Institute of Chartered
Accountants of India, the Deferred Tax Liability of Rs.NIL (Rs.2.75
Crores) has been recognized in the Profit & Loss Account. The reason
for the same being the company has incurred a loss of Rs. 290.49 Crores
after tax. If the deferred tax liability is provided, this cannot be
set off for future eight assessment years. The Deferred Tax Liability
arises mainly due to the timing difference of brought forward losses
and depreciation claimed as per the books of account and the depreci
-ation claimed under the Income tax Act, 1961.
10. Public Deposits Accepted:
During the period Company has not accepted any fixed deposit from the
public under the provision of Section 58A and 58AA or any relevant
provision of the companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975.
11. There are no dues payable to the Investor Education and Protection
Fund as at 31st March 2014
12. EMPLOYEE BENEFITS:
Disclosures pursuant to Accounting Standard -15 (Revised) "Employee
Benefits":
(i) The company has recognized Rs. 0.03 crores as expenses in the
profit and loss account in the absence of the Actuarial Valuation in
respect of defined contribution plan administered by the Government.
(ii) Defined benefit plan and long term employment benefit:
A General description:
Gratuity [Defined benefit plan]:
The Company has a defined benefit gratuity plan. Every employee who has
completed five years or more of service is eligible for gratuity.
Gratuity is computed based on 1 5 days salary [last drawn salary] for
each completed year of service. The scheme is funded with an insurance
company in the form of qualifying insurance policy.
13. Contingent Liabilities
a. Income Tax
The Assistant Commissioner of Income Tax, Mumbai has passed an order
u/s 143(3) w.r.t Section 153A of the Income Tax Act, 1 961 for the
Assessment Year 2005-06 to 2011-12 and u/s 143(3) of the Income Tax
Act, 1 961 for the Assessment Year 2011- 12 and issued Notice of Demand
u/s 1 5 Income Tax Act, 1 961 for sum of Rs. 1 69.79 Crores. The
company has preferred an appeal against the said order before the
Commissioner Appeals of Income Tax, Mumbai and the case is pending. The
Company has been legally advised that the demand is likely to be
deleted or substantially reduced and accordingly no provision has been
made in the books of accounts.
b. Sales Tax
The Assistant Commissioner of Sales Tax Investigation Branch, Mumbai
has demanded a sum of Rs.38.56 Crores. The case is pending before the
Assistant Commissioner of Sales Tax (Investigation), Mumbai.
14. Going Concern Assumption
During the financial period the Company has incurred loss of Rs. 291
crores and its 100% net worth is eroded. Lack of adequate working
capital has also affected the operations, resulting in partial running
or closure of plants (for a limited period). Under the circumstances,
the financial statements have been prepared on Going Concern basis and
in the opinion of the management no adjustments are considered
necessary to the carrying value of its assets and liabilities.
15. Related Party Transactions
Parties are considered to be related if at any time during the year;
one party has the ability to control the other party or to exercise
significant influence over the other party in making financial and/or
operating decision. As required by Accounting Standard (AS)-18 "Related
Party Disclosure" issued by The Institute of Chartered Accountants of
India, information in this respect is as follows:
I. Individual(s) having control with relatives and associate :
Mr. Shaukat S. Tharadra Mrs. Shahida S. Tharadra
II. Key-Management Personnel :NameDesignation
Shaukat S. Tharadra Chairman & Managing Director (CMD)
AzamkhanF.Lohani Whole-time Director
Rashid I. Tharadra Whole-time Director
Abdulla K. Musla Whole-time Director
III. Entities owned or significantly influenced by Directors and/or key
management Personnel or their relative and with whom Company has
entered into transaction during the period under review :
Entities Nature of Relationship
Raj Oil Mills Associate concern
Raj Builders Associate concern
Company has paid Rs.0.2 crores (Previous Period Rs.0.31 crores) to Mr.
Shaukat S. Tharadra, as Rent for registered office building admeasuring
approximate 8,950 Sq. Ft. of the carpet area at 224, Bellasis Road,
Mumbai taken on perpetual sub- tenancy basis vide agreement dated 1st
October 2007.
The previous year figures have been regrouped / reclassified wherever
necessary to confirm the current year presentation.
Particular of Balance Sheet abstract and the Company General Business
Profile, Pursuant to Part IV of Schedule VI of the Companies Act, 1956
is attached herewith.
Mar 31, 2013
1. Details of Default in repayment of loans and interest in respect of
the followings : (a) Amount of Long- Term Borrowings outstanding as on
31/03/2013 :
i) SVC Term Loan  Amounting Rs. 0.35 Crores
ii) Edelweiss Assets Reconstruction Co. Ltd. Â Amounting Rs. 68.07
Crores iii) Public Deposits  Amounting to Rs. 1.30 Crores iv) SICOM
(Bill Discounting) Â Amounting Rs.11.56 Crores v) SIDBI (Bill
Discounting) Â Amounting Rs. 3.08 Crores vi) IFCI Factors(Bill
Discounting) Â Amounting Rs. 12.02 Crores vii) Inter-Corporate Deposit
 Amounting Rs. 1.00 Crores b) Amount of Short- Term Borrowings
outstanding as on 31/03/2013 : i) SVC Loan (C/C) Â Amounting Rs. 21.34
Crores
2. Global Depository Receipts (GDRs) :
The Company raised US $ 7.76 million (Rs. 43.40 Crores) through the
issue of 0.7 million Global Depository Receipts (GDRs) on July 26,
2012. Each GDR represents fifty underlying equity share of Rs. 10 each
and the issue got listed with London Stock Exchange. The issue was
priced at US $ 11.084 for each GDR. From the net proceeds of US $ 7.52
million ( after having adjusted US $ 0.24 million towards issue related
expenses) the company had utilized US $ 7.30 million towards Loans and
Advances towards general corporate purposes as per the object of the
issue and the remaining balance is utilized for the payment of
statutory liabilities of the company.
3. The balance of sundry debtors, Creditors, Loans & advances are
subject to their confirmation and reconciliation if any. Bank balance
subject to cheques on hand realization.
4. The Company has not received any intimation from suppliers
regarding their status under micro, Small and Medium Enterprises
Development Act,2006 and hence disclosure if any in relation to amount
unpaid as at the year end as required under the said Act have not been
furnished.
5. Segment Reporting :
As the CompanyÂs business activity falls within a single primary
business segment ÂEdible Oil & Cakes the disclosure requirement of
Accounting Standard (AS) 17 ÂSegment Reporting are not applicable.
6. ÂAdvances to Employees under ÂShort term Loan &Advance head in
the balance - sheet includes loan to staff of the Company amounting to
Rs.0.02 Crores (PreviousYear: Rs. 0.02 Crores).
7. In the opinion of the Board, current assets, loans and advances
have a value at least equal to the amounts at which they are stated in
the Balance Sheet, if realized in ordinary course of business.
8. In the opinion of the Board, current assets, loans and advances
have a value at least equal to the amounts at which they are stated in
the Balance Sheet, if realized in ordinary course of business.
9. As per accounting standard -22, issued by the Institute of
Chartered Accountants of India, the Deferred Tax Liability of Rs.2.75
Crores (Rs.2.75 Crores) has been recognized in the Profit & Loss
Account. The Deferred Tax Liability arises mainly due to the timing
difference of brought forward losses and depreciation claimed as per
the books of account and the depreciation claimed under the Income tax
Act, 1961.
10. Public Deposit Accepted:
During the period Company has not accepted any fixed deposit from the
public under the provision of Section 58A and 58AA or any relevant
provision of the companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975.
11. There are no dues payable to the Investor Education and Protection
Fund as at 31st March 2013.
12. EMPLOYEE BENEFITS:
Disclosures pursuant to Accounting Standard -15 (Revised) ÂEmployee
BenefitsÂ:
(i) The company has recognized as expenses in the profit and loss
account as per Acturial Valuation in respect of defined contribution
plan Rs. 0.15 Crores administered by the Government.
(ii) Defined benefit plan and long term employment benefit: A General
description:
Gratuity [Defined benefit plan]:
The Company has a defined benefit gratuity plan. Every employee who has
completed five years or more of service is eligible for gratuity.
Gratuity is computed based on 15 days salary [last drawn salary] for
each completed year of service. The scheme is funded with an insurance
company in the form of qualifying insurance policy.
13. Contingent Liabilities
(a) Income Tax
The Deputy Commissioner of Income Tax, Mumbai has passed an order u/s
221(1) of Income Tax Act for Assessment Year 2008-09 and levied penalty
of Rs0.34 Crores. The company has preferred an appeal against the said
order before the Income Tax Appellate Tribunal (ITAT), Mumbai and the
case is pending. The Company has been legally advised that the demand
is likely to be deleted or substantially reduced and accordingly no
provision has been made. The Additional Commissioner of Income Tax,
Mumbai has passed an order u/s 143 (3) of Income Tax Act for the
Assessment Year 2008-09 and issued Notice of Demand u/s 156 of Income
Tax Act, 1961 for sum of Rs.1.26 Crores. The company has preferred an
appeal against the said order before the Commissioner Appeals Income
Tax, Mumbai and the case is pending. The Assistant Commissioner of
Income Tax, Mumbai has passed an order u/s 143(3) r.w.s. 153A of the
Income Tax Act, 1961 for the Assessment Year 2005-06 to 2010-11 and u/s
143(3) of the Income Tax Act,1961 for the Assessment Year 2011-12 and
issued Notice of Demand u/s 156 of Income Tax Act,1961 for sum of Rs.
169.79 Crores. The company has preferred an appeal against the said
order before the Commissioner Appeals of Income Tax, Mumbai and the
case is pending. The Company has been legally advised that the demand
is likely to be deleted or substantially reduced and accordingly no
provision has been made in the books of accounts.
(b) Sales Tax
The Assistant Commissioner of Sales Tax Investigation Branch, Mumbai
has demanded a sum of Rs.1.52 Crores. The case is pending before the
Assistant Commissioner of Sales Tax (Investigation), Mumbai.
14. Related Party Transactions
Parties are considered to be related if at any time during the year,
one party has the ability to control the other party or to exercise
significant influence over the other party in making financial and/or
operating decision. As required by Accounting Statndard (AS) -18
ÂRelated Party Disclosure issued by The Institute of Chartered
Accountants of India, information in this respect is as follows :
I. Individual(s) having control with relatives and associate :
Mr. Shaukat S. Tharadra Mrs. Shahida S. Tharadra
II. Key-Management Personnel :
Name Designation
Shaukat S. Tharadra Chairman & Managing Director (CMD)
Azamkhan F.Lohani Whole-time Director
Rashid I. Tharadra Whole-time Director
Abdulla K. Musla Whole-time Director
Manavendra S. Gokhale Chief Executive Officer (CEO)
III. Entities owned or significantly influenced by Directors and/or
key management Personnel or their relative and with whom Company has
entered into transaction during the period under review :
Entities Nature of Relationship
Raj Oil Mills Ltd EmployeeÂs Gratuity Trust Associates
Raj Oil Mills Associate concern
Raj Builders Associate concern Company has paid Rs.0.31 crores
(Previous Period Rs.0.89 crores) to Mr. Shaukat S. Tharadra, as Rent
for registered office building admeasuring approximate 8,950 Sq. Ft. of
the carpet area at 224, Bellasis Road, Mumbai taken on perpetual
sub-tenancy basis vide agreement dated 1st October 2007.
15. The previous year figures have been regrouped / reclassified
wherever necessary to confirm the current year presentation.
16. Particular of Balance Sheet abstract and the Company General
Business Profile, Pursuant to Part IV of Schedule VI of the Companies
Act, 1956 is attached herewith.
Mar 31, 2012
1. Details of Default in repayment of loans and interest in respect of
the followings:
(a) Amount of Long- Term Borrowings outstanding as on 31/03/2012:
i SVC Term Loan - Amounting Rs. 0.38 Crores
ii) Public Deposits-Amounting to Rs. 0.75 Crores
(b) Amount of Short-Term Borrowings outstanding as on 31/03/2012:
i) SVC Loan(C/C)-AmountingRs.2.11Crores
ii) KVB Loan (C/C) - Amounting Rs.2.13 Crores
iii IFCI Factors (Bill Discounting)-Amounting Rs.12.02 Crores
iv) SICOM (Bill Discounting) - Amounting Rs.11.61 Crores
vi SIDBI (Bill Discounting) - Amounting Rs. 3.08 Crores
vi) inter-Corporate Deposit-Amounting Rs. 1.91 Crores
2. The Shareholder of the Company on June 4, 2012 has approved the GDR
issue upto 20 million USD or equivalent Indian rupee. On July 26, 2012
the Board of the Directors of the Company has approved and allotted
3,50,00,000 Equity Shares of Rs. 10/- each at a premium of Rs. 2.40/-
i.e.@ Rs.12.40/-, underlying 7,00,000 GDR's. The Company has also
received In - Principal listing approval from Bombay Stock Exchange
Limited and National Stock Exchange Limited. The Securities underlying
GDR does not have voting rights, until they are converted into Equity
Shares of the Company.
3. The balance of sundry debtors, Creditors, Loans & advances are
subject to their confirmation and reconciliation if any Bank balance
subject to cheques on hand realization.
4. The Company has not received any intimation from suppliers
regarding their status under micro, Small and Medium Enterprises
Development Act,2006 and hence disclosure if any in relation to amount
unpaid as at the year end as required under the said Act have not been
furnished.
5. Segment Reporting:
As the Company's business activity falls within a single primary
business segment "Edible Oil & Cakes" the disclosure requirement of
Accounting Standard (AS) 17 "Segment Reporting" are not applicable.
6. "Advances to Employees" under "Short term Loan &Advance" head in
the balance - sheet includes loan to staff of the Company amounting to
Rs.0.02 Crores (Previous Year: Rs. 0.04 Crores).
7. In the opinion of the Board, current assets, loans and advances
have a value at least equal to the amounts at which they are stated in
the Balance Sheet, if realized in ordinary course of business.
Since no commission is payable during the year, computation of net
profit under Section 198 of the Companies Act, 1956 has not been
computed for the year.
8. As per accounting standard -22, issued by the Institute of
Chartered Accountants of India, the Deferred Tax Liability of Rs. 1.90
Crores (Rs.5.64 Crores) has been recognized in the Profit & Loss
Account. The Deferred Tax Liability arises mainly due to the timing
difference of depreciation claimed as per the books of account and the
depreciation claimed under the Income tax Act, 1961.
9. Earnings Per Share.
As required by Statement of Accounting Standard (AS) - 20 "Earning Per
Share", reconciliation of basic and diluted number of Equity shares
used in computing Earnings Per Share is as follows:
10. Public Deposit Accepted:
During the period Company has accepted fixed deposit from the public
under the provision of Section 58A and 58AA or any relevant provision
of the companies Act, 1956 and the Companies (Acceptance of Deposits)
Rules, 1975.
11. There are no dues payable to the Investor Education and Protection
Fund as at 31st March 2012.
12. EMPLOYEE BENEFITS:
Disclosures pursuant to Accounting Standard -15 (Revised) "Employee
Benefits"
(i) The company has recognized as an expenses in the profit and loss
account as per Acturial Valuation in respect of defined contribution
plan Rs. 0.10 Crores administered by the Government.
(ii) Defined benefit plan and long term employment benefit:
A General description:
Gratuity [Defined benefit plan]:
The Company has a defined benefit gratuity plan. Every employee who has
completed five years or more of service is eligible for gratuity.
Gratuity is computed based on 15 days salary [last drawn salary] for
each completed year of service. The scheme is funded with an insurance
company in the form of qualifying insurance policy.
13. Contingent Liabilities
(a) Excise
Raj Oil Mills Ltd. Manufactures and markets pure coconut oil under the
brands of Cocoraj, Cocotoss. Such Coconut Oil (CO) is a 100% natural
product and meets all standards of edible oil as given in the
Prevention of Food Adulteration Act. CO is currently classified under
Excise as a vegetable oil under chapter 15 and attracts Excise at zero
rate. CO classified under chapter 15 as vegetable oil has been
vindicated by the decision of Appleate Tribunal on various occasions.
However the Central Board Of Excise and Custom has recently issued
instruction vide circular No.890/10/2009-CX dated 3rd June 2009 where
in it has classified coconut oil packed in the container size upto
200ml as hair oil there by attracting Excise duty at applicable rates.
The company has filled writ petition no. 1600J2009 with the Bombay High
Court, Mumbai for interim relief hearing is pending for final disposal.
The Honourable High Court vide order dated August 27, 2009 granted
inteirm relief subjet to certain conditions and restrained the
department of Central Excise from recovering Central Excise. The
company has received show cause notice dated March 15,2010 from the
office of the Commissioner of Central Excise, Thane, for Rs. 10.42
crores plus interest and penalty. The company has filed reply to the
Department on 15th October 2010. The Comissioner of Central Excise,
Thane, has passed an Order and issued Order in Original along with the
demand note for the said amount. The Company has filled an Apeal
against the said Order with the Central Excise and Custom and Service
Tax Apellate Tribunal (CESTAT).
(b) Income Tax
The Deputy Commissioner of Income Tax, Mumbai has passed an order u/s
221(1) of Income Tax Act for Assessment Year 2008-09 and levied penalty
of Rs0.34 Crores. The company has preferred an appeal against the said
order before the Income Tax Apellate Tribunal, Mumbai and the case is
pending. The Company has been legally adviced that the demand is likely
to be deleted or substantially reduced and accordingly no provision has
been made.
The Additional Comissioner of Income Tax, Mumbai has passed an order
u/s 143 (3) of Income Tax Act for the Assessment Year 2008-09 and
issued Notice of Demand u/s 156 of Income Tax Act, 1961 for sum of
Rs.l.26 Crores. The company has preferred an appeal against the said
order before the Commissioner Appeals Income Tax, Mumbai and the case
is pending.
(c) Sales Tax
The Assistant Commisioner of Sales Tax Investigation Branch, Mumbai has
demanded a sum of Rs.l.52 Crores. The case is pending before the
Assistant Commissioner of Sales Tax(lnvestigation), Mumbai.
(d) Estimated amount of contracts remaining to be executed on capital
account and not provided for Rs.8.95 Crores (Previous Year 6.29
Crores).
14 Related Party Transactions
Parties are considered to be related if at any time during the year,
one party has the ability to control the other party or to exercise
significant influence over the other party in making financial and/or
operating decision. As required by Accounting Statndard (AS) -18
"Related Party Disclosure" issued by The Insitute of Chartered
Accountants of India, information in this respect is as follows:
I. Individual(s) having control with relatives and associate:
Mr. Shaukat S. Tharadra
Mrs. Shahida S. Tharadra
Company has paid Rs.0.89 crores (Previous Period Rs.0.96 crores) to Mr.
Shaukat S. Tharadra, as Rent for registered office building admeasuring
approximate 8950 Sq. Ft. of the carpet area at 224, Bellasis Road,
Mumbai taken on perpetual sub-tenancy basis vide agreement dated 1st
October 2007.
15 The financial statements for the year ended 31st March, 2011 had
been prepared as per the then applicable, Pre- Revised Schedule-VI to
the Companies Act,1956. Consequent to the notification under the
Companies Act,1956, the financial statements for the year ended 31st
March, 2012 are prepared under revised Schedule VI. Accordingly, the
previous year figures have also been reclassified to confirm to this
year's classification.
16 Particular of Balance Sheet abstract and the Company General
Business Profile, Pursuant to Part IV of Schedule VI of the Companies
Act, 1956 is attached herewith.
Mar 31, 2010
1. Secured Loans
(a) Term loans, Cash Credit & Letter of Credit facility from banks is
secured by hypothecation of all existing fixed assets of the Company
including vehicles, entire stocks and book debts, margin money as may
be held by the bank at the time of issue of such Letter of Credit and
equitable mortgage of land and building at Village Ten Tal. Palghar,
Manor and personal guarantees of some of the Directors. Term Loan
repayable within one year is Rs. 47.51 Lakhs (Previous Year Rs. 125.69
Lakhs)
(b) Vehicle loan / Loan against property from the banks/finance
companies are secured by the charge on the respective vehicle &
property and personal security on flat of a director. Loan repayable
within one year is Rs.13.17 Lakhs (Previous Year Rs.10.95 Lakhs)
2. Contingent Liabilities
(a) Excise
Raj Oil Mills Ltd. Manufactures and markets pure coconut oil under the
brands Cocoraj. Such Coconut Oil (CO) is a 100% natural product and
meets all standards of edible oil as given in the Prevention of Food
Adulteration Act. CO is currently classified under excise as a
Vegetable Oil under Chapter 15 as attracts excise at Zero rate. The
stand the CO is classified under chapter 15 as fixed vegetable oil has
been vindicated by the decision of Appellate Tribunal benches on
various occasions. However, the Central Board Excise & Customs (CBSE)
has recently issued instruction vide Circular No. 890/10/2009-CX dated
June 3, 2009 wherein it has classified coconut oil packed in container
size up to 200 ML as hair oil. Which is chargeable to excise duty with
effect from the date of the circular that June 3,2009.
The Company has filed writ petition No. 1600/2009 with the Bombay High
Court, Mumbai foe interim relief. Hearing is pending for final
disposal. The Honble High Court vide order dated August 27, 2009,
granted interim relief subject to certain conditions and restrained the
Department of Central Excise from recovering Central Excise. The
Company has received Show Cause Notice dated March 15, 2010 from the
Office of the Commissioner of Central Excise, Thane for Rs.10.42 Cr
plus interest and penalty. The Company is under the process of filing
appeal to the Department and also to seek legal advice to move petition
before the The Honble High Court, Mumbai against the Demand Notice
received.
(b) Income Tax
The Deputy Commissioner of Income Tax, Mumbai has passed an order u/s
221(1) of Income Tax Act for Assessment Year 2008-09 and levied penalty
of Rs 34.72 Lakhs. The company has preferred an appeal against the said
order before the Commissioner of Income Tax (Appeals), Mumbai and the
case is pending. The Company has been legally adviced that the demand
is likely to be deleted or substantially reduced and accordingly no
provision has been made.
(c) Estimated amount of contracts remaining to be executed on capital
account and not provided for Rs.628.89 Lakhs (Previous Year 261.69).
(d) Company has outstanding Bank Guarntee of Rs.57.00 lacs (Previour
Year Rs.Nil)
3. Related Party transactions
As required by Accounting Standard (AS) 18 "Related Party Disclosures"
issued by The Institute of Chartered Accountants of India, information
in this respect is as follows:
I. Individual(s) having control with relatives and associates
Mr. Shaukat S. Tharadra Mrs. Shahida S. Tharadra
4. In the opinion of the Board, current assets, loans and advances
have a value at least equal to the amounts at which they are stated in
the Balance Sheet, if realized in ordinary course of business.
5. The balances of sundry debtors and sundry creditors are subject to
confirmation from respective parties.
6. Additional information pursuant to the provisions of paragraphs 3,
4, 4B, 4C and 4D of Part II of Schedule VI of the Companies Act, 1956
are given to the extent applicable
7. The disclosers as required to be made relating to Micro, Small and
Medium Enterprise under the Micro, Small and Medium enterprises
development Act, 2006 (MSMED) are not furnished in view ot the non
availability of information with the Company from such Enterprises.
(a) As required by Statement of Accounting Standard (AS) 20 "Earnings
Per Share", reconciliation of basic and diluted number of Equity Shares
used in computing Earnings Per Shares is as follows.
9. Segment Information
As the Companys business activity falls within a single primary
business segment "Edible Oil & Cakes" the disclosure requirement of
Accounting Standard (AS) 17 "Segment Reporting"are not applicable.
10. The Company has changed its financial year end from 31st December
to 31st March annually, with effect from current financial year.
Accordingly, the financial statements for the current financial are
made up form 1st January, 2009 to 31st March, 2010 (15 Months). The
corresponding figured for the previous year relate to the period 1st
January 2008 to 31st December 2008 (12 Months). Therefore, the two are
not comparable.
11. There are no dues payable to the Investor Education and Protection
Fund as at 31st March 2010.
12. Disclosure as defined in the Accounting Standard 15 is not given
as the report from Actuary is awaited.
13. Particulars of Balance Sheet abstract and the Company General
Business Profile, pursuant to Part IV of Schedule VI of the Companies
Act 1956 is attached herewith.
14. (a) The figures in brackets or in shaded background represent
those of previous year.
(b) The figures for the previous year have been regrouped-rearranged
wherever necessary to conform to current period classification.
Dec 31, 2008
1. (a) Auditors Qualification
The Company does not have an internal audit system commensurate with
the nature of its business. Management has initiated steps to implement
internal audit system commensurate with the nature of its business.
(b) Current Liability
The Company has vide a Multi-Option Facility Agreement dated March 29,
2008, availed of a credit facility of INR 1,000.00 lakhs from teh
Barclays Bank Pic,. As per the terms of the multi-facility agreement,
the Company was required to create a charge on its immovable
properties, movable fixed assets and current assets within 180 days of
the first disbursement of funds. Pursuant to failure of the Company to
furnish such security to Barclays Bank Pic, the lender has vide a
letter dated November 15,2008 called upon the Company to repay the
outstanding amount of Rs. 4.5 crores in 2 installments Rs. 2 crores by
November 30,2008 and the balance Rs. 2.5 crores by December 31,2008.
The said letter further stipulates that non-payment of the dues would
attract penal interest at 24% p.a. The amount to be repaid as on date
31 st March, 2009 is Rs. 150.90 lakhs.
2. (A) Secured Loans
(a) Term loans, Cash Credit & Letter of Credit facility from banks are
secured by hypothecation of all existing fixed assets of the Company
including vehicles, entire stocks and book debts, margin money as may
be held by the bank at the time of issue of such Letter of Credit and
equitable mortgage of land and building at Village Ten Tal. Palghar,
IVIanor and persona) guarantees of few Directors and a shareholder.
(b) Hire Purchase Vehicle loan / Loan against property from the banks /
finance companies are secured by the charge on the respective vehicle &
property and personal security on flat of a director.
(c) (i) Hypothecation of vehicle Toyota Innova Bearing registration No.
MH01-VA-3210 is registered in the name of Mr. Azamkhan F. Lohani, a
whole time director of the company.
(ii) Hypothecation of vehicle Toyota Innova Bearing registration No.
MH01-VA-6161 is registered in the name of Mr. Abdulla K. Musla, a whole
time director of the company.
(iii) Hypothecation of vehicle Toyota Innova Bearing registration No.
MH01-AC-8080 is registered in the name of Mr. Azamkhan F. Lahani, a
whole time director of the company.
The aforementioned vehicles are used for the official purpose and the
margin money, v installments including interest, and all other
ancillary expenses like petrol, diesel, repair and maintenance is paid
by the company. Depreciation on the aforesaid mentioned vehicle are
also claimed by the company under section 32 of the Income Tax Act,
1961, as a beneficial owner of the said vehicles. On the repayment of
the vehicle loans the ownership of said vehicles will be transferred in
the name of the company.
3. Contingent Liabilities
(a) As per the decision of the management, no leave accumulation by
employees is allowed hence no Provision has been made for leave
outstanding as on the balance sheet date.
(b) The company has given corporate guarantee to the extent of Rs. 750
Lacs (Rs. 750 Lacs) in respect of loan taken by farmers / VLC from Axis
Bank Ltd (erstwhile UTI Bank Ltd.) Vide original Banks sanction letter
no. UTIB /10705 / 2005-06 Dated 7" December 2005. The company will be
liable to repay the said loan in case of failure by the farmer to repay
the loan to the extent of guarantee given by the company. The said
guarantee was revoked on 27th February 2009 and was confirmed by the
Axis Bank Ltd.
(c) Income Tax
(i) During the previous year 2007 the Income Tax Department conducted a
survey on 12th December 2007. The company has accepted the capital
expenditure of Rs. 245.00 Lacs, being wrongly shown as book-debts in
the books of accounts and accepted to rectify the same in the current
year. The department is of the opinion that the same is unaccounted
expenditure and added to the income of current year. The management is
of the opinion that said addition is not likely to effect the income of
the current year.
(ii) Regarding Assessment Year 2006-07, the Deputy Commissioner of
Income Tax passed an Order dated 24/12/08 u/s 143(3) whereby he
assessed our Income at Rs. 25,21,562 u/s 115JB as against the returned
income of Rs. 21,03,958/- and raised a demand of Rs. 13,34,555/- on us.
Our Company has filed an Appeal before the
Honble Commissioner Of Income Tax-Appeals on January 07, 2009 against
the said order. The case is still pending.
(iii) Regarding Assessment Year 2005-06, the Deputy Commissioner of
Income Tax passed an Order dated 26/12/07 u/s 143(3) whereby he
assessed our Income at Rs. 65,39,972 u/s 115JB as against the returned
income of Rs. 64,76,225 and raised a demand of Rs. 62,099/- on us. Our
Company has filed an Appeal before the Honble Commissioner Of Income
Tax-Appeals, against the said order. The Company before filing of the
Appeal on 1 st January, 2008 paid the amount of Rs 62,099/-. The case
is still pending.
(iv) For the Assessment Year 2003-04, the Deputy Commissioner of Income
Tax passed Order dated 30 January, 2006 whereby it determined the total
loss of our Company at Rs 1,38,07,305 against loss of Rs 2,58,63,258
declared by our Company. Our Company had filed an Appeal before the
Honble Commissioner Of Income Tax- Appeals to set aside the Order. The
said Appeal was decided against our Company vide Order dated 18th June,
2007 and thereafter, the company the said Order of Appeal before the
Income Tax Appellant Tribunal. The case is still pending.
(v) The Deputy Commissioner of Income Tax passed Order dated 30 March,
2009, along with Demand Notice, whereby he has levied penalty order u/s
271 (l)(c) of the Income Tax Act, 1961 for amount of Rs.12,23,870/- for
non - payment of Income Tax assessed for the Assessment Year 2003-04.
Our Company had filed an Appeal before the Honble Commissioner Of
Income Tax-Appeals on April 08, 2009, to set aside the Order and grant
stay against the Demand recovery till the disposal of the order.
(c) Estimated amount of contracts remaining to be executed on capital
account and not provided forRs. 261.69Lacs (P.Y. Rs. 477.48 Lacs).
4. Related Party transactions
As required by Accounting Standard (AS) 18 "Related Party Disclosures "
issued by The Institute of Chartered Accountants of India, information
in this respect is as follows:
I. Individual(s) having control with relatives and associates Mr.
Shaukat S. Tharadra
Mrs, Shahida S. Tharadra
II. Key-Management Personnel *
Name Designation
Shaukat S. Tharadra Chairman & Managing Director
Azamkhan F. Lohani Whole-time Director
Rashid I Tharadra Whole-time Director
Abdulla K Musla Whole-time Director
III. Entities owned or significantly influenced by Directors and/or
key management personnel or their relatives and with whom Company has
entered into transactions during the period under review.
Entities Nature of Relationship
Raj Oil Mills Ltd. Employees Gratuity Trust Associates
IV. Entities owned or significantly influenced by Directors and/or key
management personnel or their relatives and with whom Company has not
entered into any transactions during the period under review.
Entities Nature of Relationship
Raj Oil Industries Private Limited Subsidiary company **
Raj Oil Mills Employees Gratuity Associates
Raj Oil Mills Associate concern
Raj Builders Associate concern
* * For part of the year for 2007.
VI. Notes to related party transactions
(a) Company has paid Rs. Nil (Rs. 12.17 Lacs) (Inclusive of lease tax)
as Royalty for grant of exclusive license and right to use Brands and
Trademarks owned by M/s Raj Oil Mills a partnership firm, in which some
of the Directors are interested as partners in pursuance to agreements
entered into with them.
(b) During the previous year, vide various agreements Mr. Shaukat
Suleman Tharadra (the beneficial owner), a partner of M/s Raj Oil Mills
assigned to the company, the said trademarks for a consideration of Rs.
Nil (Rs. 5,555/-.)
(c) Company has paid Rs. 75.80 Lacs (Rs. 18.80 Lacs) to Mr. Shaukat S.
Tharadra, as Sub-Let Rent for registered office building admeasuring
approx. about 8950 Sq. Ft. of the carpet area at 224, Bellasis Road,
Mumbai taken on perpetual sub-tenancy basis vide agreement dated 1sl
October 2007.
5. Additional information pursuant to the provisions of paragraphs
3,4,4B, 4C and 4D of Part II of Schedule VI of the Companies Act, 1956
are given to the extent applicable.
(i) Installed capacity is as certified by the Management of the Company
and accepted by the Auditors as this is a technical matter.
(ii) The Companys products are exempted from licensing provision under
the Industries (Development & Regulation) Act, 1951.
6. Segment Information
As the Companys business activity falls within a single primary
business segment "Edible Oil & Cakes" the disclosure requirement of
Accounting Standard (AS) 17 "Segment Reporting", issued by The
Institute of Chartered Accountants of India are not applicable. However
it does not have any impact on the true & fair view of the state of
affairs in case of Balance Sheet and Profit & Loss Account.
7. (a) The figures in brackets or in shaded background represent those
of previous year.
(b) The figures for the previous year have been regrouped / rearranged
wherever necessary to conform to current years classification.
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