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Notes to Accounts of Rajratan Global Wire Ltd.

Mar 31, 2017

1. The company has only one class of shares having a par value of Rs. 10/- per share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval by the shareholders of the company in the ensuing Annual General Meeting. In the event of liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. During the year ended 31st March, 2017, the amount of per share dividend proposed as distributions to equity share holders is Rs. 1.5 per Share (Previous Year Rs. 1.2 per Share). The total dividend proposed for the year ended March 31, 2017 amounts to Rs. 6,527,700/- including Corporate Dividend Distribution Tax of Rs.1,328,886 /-(Previous Year Rs. 6,285,287/-) including Corporate Dividend Distribution Tax Rs. 1,063,085/-) [Refer note 34(b) regarding change in Accounting Policies].

2. SECURITY:

3. Term loans outstanding Rs. 129,000,000/- (Rs. 82,000,000/- classified as Non-Current and Rs. 47,000,000/- classified as Current Liability) (Previous year Rs. 138,000,000/-) are secured by way of an equitable mortgage of immovable properties with State Bank of India, Indore ranking pari passu amongst the lenders and by a first charge by way of hypothecation of all the company''s movable machinery, present and future, subject to prior charges created in favour of Company''s Bankers on the stock of raw materials, goods in process, finished and manufactured goods and Book Debts towards security for working capital facilities. Term loans are also secured by personal guarantee of the Managing Director.

4. M/s Cee Cee Engineering Industries Pvt. Ltd. (Subsidiary Company) has also provided collateral security by way of first charge on the entire fixed assets of (by way of equitable mortgage of leased land (lease agreement dated 17.10.1997 with MP Audoyogik Vikas Nigam) & building & hypothecation of other fixed assets) (both present & future) situated at the company''s premises at Plot No. 199, Sector-1, Pithampur Industrial area, District-Dhar (MP) and /or any other places.

5. Security: A. Loans repayable on demand from State Bank of India, Indore and IDBI Bank Ltd., Indore are Working Capital Loans and are secured by hypothecation of company’s stock and book debts, present & future and by a second charge on all the immovable properties of the company and plant and machinery, machinery spares, tools and accessories and other movables both present and future. Such advances are also secured by personal guarantees of the Managing Director.

6. M/s Cee Cee Engineering Industries Pvt. Ltd. (Subsidiary Company) has also provided collateral security by way of first charge on the entire fixed assets of (by way of equitable mortgage of leased land (lease agreement dated 17.10.1997 with MP Audoyogik Vikas Nigam) & building & hypothecation of other fixed assets) (both present & future) situated at the company''s premises at Plot No. 199, Sector-1, Pithampur Industrial area, District-Dhar (MP) and/or any other places. For Credit facilities sanctioned by State Bank of India.

7. Details of expenses on Corporate Social Responsibility

The Company has incurred a sum of Rs. 1,253,472/- on expenses related to Corporate Social Responsibility. However the Company has not spent the total amount of Rs.. 2,304,846 /- being 2% of average Profit of last three year. Therefore there is a shortfall of Rs. 1,051,374/- for the year to be spent on CSR activities. The total shortfall as on Balance Sheet date is Rs. 3,833,784/-. The Management is in the process of identifying projects that can be supported by the Company.

8. Change in Accounting Policies

The Ministry of Corporate Affairs, Government of India has vide Notification No. G.S.R. 364 (E) dated 30.03.2016 amended Accounting Standard (AS-4)-“Contingencies and Events Occurring After the Balance sheet Date” and has substituted Accounting Standard (AS-10)- Equipment” in place of the existing Accounting Standard (AS-10)-“Fixed Assets”, together with consequential amendments in other Accounting Standards. These amended/substituted Accounting Standards have become mandatory for accounting periods commencing from 01.04.2016.

In view of the Revised Accounting Standards AS 10 - “Property, Plant & Equipment” and AS 4- Contingencies and Events Occurring After the Balance Sheet Date”, the Company has made following changes to its Accounting Policies;

9. AS 10- “Property, Plant & Equipment”

On the date of Accounting Standard AS-10 (Revised) becoming mandatory, the Spare Parts, which hitherto were being treated as inventory, have been capitalized in accordance with the requirement of AS-10 at their respective carrying amounts. The Spare Parts amounting to Rs. 1,366,262/- so capitalized have been depreciated over their remaining useful life prospectively. The depreciation charged on such Spare Parts is Rs. 22,909/- for the year. Due to the said change in the Accounting Policy, the Fixed Assets are overstated and the inventories are understated to that extent.

10. AS 4- Contingencies and Events Occurring After the Balance Sheet Date

No provision has been made for Dividend proposed for the year ended on 31st March, 2017 amounting to Rs. 6,527,700/including Corporate Dividend Tax of Rs. 1,328,886/- (Previous Year Rs. 6,285,287/- including Corporate Dividend Tax of Rs. 1,063,085/-). Due to the said change in the Accounting Policy, the Reserves & Surplus is overstated and the Short Term Provisions are understated to that extent.

11. In the opinion of the Board of Directors of the Company, the Current Assets, Loans and Advances have a value realizable in the ordinary course of business at least equal to the amount at which they are stated and provisions for all known liabilities are adequate and not in excess of the amount reasonably necessary.

12. In accordance with the Accounting Standard (AS) 17 “Segment Reporting” issued by The Institute of Chartered Accountants of India (ICAI) and specified u/s 133 of the Act read with Rule 7 of the Companies (Accounts) Rules, 2014 the Company has only one reportable segment “Bead Wire” for the current year.

13. In accordance with the Accounting Standard (AS)18 “Related Party Disclosures” issued by The Institute of Chartered Accountants of India (ICAI) and specified u/s 133 of the Act read with Rule 7 of the Companies (Accounts) Rules, 2014 the names of the related parties and the relevant disclosure is as under:-

14. Name of the related party and description of relationship:

15. Key Management Personnel:

16. Mr. Sunil Chordia - Managing Director

17. Mrs. Sangita Chordia - Whole Time Director

18. Relatives of Key Managerial Personnel

19. Mrs. Shantadevi Chordia Mother of Mr. Sunil Chordia

20. Mr. Yashovardhan Chordia S/o Mr. Sunil and Mrs. Sangita Chordia

21. Companies/entities under the control of Key Management personnel

22. M/s. Rajratan Resources Pvt. Ltd.,

23. M/s. Rajratan Investment Ltd.,

24. Subsidiary

25. M/s. Rajratan Thai Wire Company Ltd., Thailand

26 M/s. Swaraj Technocraft Pvt. Ltd.

27. M/s. Cee Cee Engineering Pvt. Ltd. (wef. 16.08.2016)

*Out of the unsecured inter corporate loan of Rs. 14.05 Crores given during the year to various parties the outstanding balance as on 31.03.2017 is 0.89 Crore.

# The opening amount of corporate guarantee given in favour of wholly owned subsidiary as on 01.04.2016 was USD 10.70 Million, however the same was reduced to USD 8.30 Million during the year.

28. The Central Government has made amendments to Schedule III to the Companies Act vide circular No. F.No. 17/62/2015-CL-V(Vol.I)-G.S.R. 308 (E)-Dated 30-03-2017 regarding the disclosure to be made about the Specified Bank Notes (SBN) held and Transacted during the period from 8th November, 2016 to 30th December, 2016. The details of which are provided in the table below:-

29. Previous Year’s figures have been regrouped and recast wherever considered necessary to make them comparable with the current year’s figures.


Mar 31, 2016

1. The company has only one class of shares having a par value of '' 10/- per share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval by the shareholders of the company in the ensuing Annual General Meeting. In the event of liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. During the year ended 31st March 2016, the amount of per share dividend recognized as distributions to equity share holders is Re. 1.2/- per Share (Previous Year Re. 1/- per Share). The total dividend appropriation for the year ended March 31, 2016 amounts to Rs.6,285,287/- including Corporate Dividend Distribution Tax of Rs.1,063,127/- ( Previous Year Rs.5,222,049/- including Corporate Dividend Distribution Tax Rs. 870,249/-).

2 SECURITY:

A. Term loans outstanding Rs.138,000,000/- (Previous year Rs.175,000,000/-) are secured by way of an equitable mortgage of immovable properties with State Bank of India, Indore ranking pari passu amongst the lenders and by a first charge by way of hypothecation of all the company''s movable machinery, present and future, subject to prior charges created in favour of Company''s Bankers on the stock of raw materials, goods in process, finished and manufactured goods and Book Debts towards security for working capital facilities. Term loans are also secured by personal guarantee of the Managing Director.

B. Vehicle loan outstanding Rs.NIL/- (Previous Year 981,590/-) is secured by hypothecation of Motor Car.

3. Security: A. Loans repayable on demand from State Bank of India, Indore and IDBI Bank Ltd.Indore are Working Capital Loans and are secured by hypothecation of company’s stock and book debts, present & future and by a second charge on all the immovable properties of the company and plant and machinery, machinery spares, tools and accessories and other movables both present and future. Such advances are also secured by personal guarantees of the Managing Director.

B. Loans and advances from related parties and other loans and advances are unsecured.

4 TRADE PAYABLES

5 Inventories are valued at cost or net realizable value whichever is lower. The cost formulas used are Weighted Average Cost in case of Raw Material and First-in First Out (''FIFO'') in case of Ancillary Raw Material and Consumable Spares. The cost of inventories comprises all cost of purchase including duties and taxes (other than those subsequently recoverable from the taxing authorities), conversion cost and other costs incurred in bringing the inventories to their present location and condition. Excise Duty is included in the value of finished goods inventory.

6. Details of expenses on Corporate Social Responsibility

The Company has incurred a sum of Rs.699,600/- on expenses related to Corporate Social Responsibility. However the Company has not spent the total amount of Rs.1,985,628/- being 2% of average Profit of last three year. Therefore there is a shortfall of Rs.1,286,928/- for the year to be spent on CSR activities. The total shortfall as on Balance Sheet date is Rs.2,782,410/-. The Management is in the process of identifying some good projects that can be supported by the Company.

7. In the opinion of the Board of Directors of the Company, the Current Assets, Loans and Advances have a value realizable in the ordinary course of business at least equal to the amount at which they are stated and provisions for all known liabilities are adequate and not in excess of the amount reasonably necessary.

8. Micro, Small and Medium Enterprises Development Act, 2006

Under the Micro, Small and Medium Enterprises Development Act, 2006 which came into force from 2nd October 2006. Certain disclosures are required to be made relating to Micro, Small and Medium Enterprises. The Management has confirmed that none of the suppliers have confirmed that they are registered under the provisions of this Act. In view of this, the liability of the interest and disclosures are not required to be disclosed in the financial statement.

9. In accordance with the Accounting Standard (AS) 17 “Segment Reporting” issued by The Institute of Chartered Accountants of India (ICAI) and specified u/s 133 of the Act read with Rule 7 of the Companies (Accounts) Rule, 2014 the Company has only one reportable segment “Bead Wire” for the current year.

10. In accordance with the Accounting Standard (AS)18 “Related Party Disclosures” issued by The Institute of Chartered Accountants

11. Previous Year’s figures have been regrouped and recast wherever considered necessary to make them comparable with the current year’s figures.


Mar 31, 2015

Overview

Rajratan Global Wire Company Limited (''the Company'') alongwith its wholly owned subsidiary, M/s. Rajratan Thai Wire Company Limited is engaged in the business of manufacturing and sale of Tyre Bead Wire. The Company is having 68% holding in Swaraj Technocrafts Pvt. Ltd. which is engaged in manufacturing of Wire-drawing Machinery and Tools. In addition, the Company has a Wind Mill located in India for generation of electricity. .

2.1 The company has only one class of shares having a par value of '' 10/- per share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval by the shareholders of the company in the ensuing Annual General Meeting. In the event of liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. During the year ended 31st March 2015, the amount of per share dividend recognized as distributions to equity share holders is Re. 1/- per Share (Previous Year Re. 1/- per Share). The total dividend appropriation for the year ended March 31, 2015 amounts to Rs. 5,222,049/- including Corporate Dividend Distribution Tax of Rs. 870,249/- ( Previous Year Rs. 5,091,388/- including Corporate Dividend Distribution Tax Rs. 739,588/-)

The Outstanding of Long Term Borrowings are net of installment due within next 12 months aggregating to Rs. 55,861,157/-

(Previous year Rs. 50,827,279/-) which are classified as current liabilities.

2.2 SECURITY:

A. Term loans outstanding Rs. 175,000,000/- (Previous year Rs. 45,000,000/-) are secured by way of an equitable mortgage of immovable properties ranking pari passu amongst the lenders and by a first charge by way of hypothecation of all the company''s movable machinery, present and future, subject to prior charges created in favor of Company''s Bankers on the stock of raw materials, goods in process, finished and manufactured goods and Book Debts towards security for working capital facilities. Term loans are also secured by personal guarantee ofthe Managing Director.

B. Vehicle loan outstanding Rs. 981,590/- (Previous Year 2,342,747/-) is secured by hypothecation of Motor Car.

2.3 Security: A. Loans repayable on demand from State Bank of India, Indore and IDBI Bank Ltd.,Indore are Working Capital Loans and are secured by hypothecation of companyRs.s stock and book debts, present & future and by a second charge on all the immovable properties of the company and plant and machinery, machinery spares, tools and accessories and other movables both present and future. Such advances are also secured by personal guarantees ofthe Managing Director.

B. Loans and advances from related parties and other loans and advances are unsecured.

2.4 Inventories are valued at cost or net realizable value whichever is lower. The cost formulas used are Weighted Average Cost in case of Raw Material and First-in First Out (''FIFO'') in case of Ancillary Raw Material and Consumable Spares. The cost of inventories comprises all cost of purchase including duties and taxes (other than those subsequently recoverable from the taxing authorities), conversion cost and other costs incurred in bringing the inventories to their present location and condition. Excise Duty is included in the value of finished goods inventory.

3. CONTINGENT LIABILITIES AND COMMITMENTS

3.1 Contingent Liabilities

(a) Claims against the company not acknowledged as debt; Nil Nil

(b) Guarantees;

(i) Bank Guarantee 1,000,000 11,000,000

(ii) Corporate Guarantee for the credit facilities availed by M/s. Rajratan Thai Wire Co. Ltd., Thailand the Wholly Owned subsidiary of the company. US$ 17.50 Million US$ 17.50 Million

(c) 5,400,000 equity shares of M/s. Rajratan Thai Wire Co., Ltd. (RTWL),

Thailand have been pledged each with State Bank of India and ICICI Bank Ltd, against loans sanctioned by them to RTWL

(d) Other money for which the company is contingently liable Income Tax & Excise appeals for which no provision is considered required as the company is hopeful of successful outcome in the appeals Income Tax appeals pending before CIT (Appeals) for F.Y. 2009-10 & 2010-11 pertain to an issue which has been decided by the Hon''ble Income Tax Appellate Tribunal, Indore in favor ofthe Company for earlier Years. There are no pending litigation other than those mentioned above. The total impact on the financial statements of pending litigation is Rs. 40,37,738/- (Previous year Rs. 1,566,480/-), if decided against the Company. The Management is confident that all pending Litigation will be decided in favor of the Company and there is no expected outflow of resources on this account.

4. Details of expenses on Corporate Social Responsibility

The Company has incurred a sum of Rs. 424,944/- on expenses related to corporate social responsibility. However the Company has not spent the total amount of Rs. 1,930,426/- being 2% of average Profit of last three year. Therefore there is a shortfall of Rs. 1,495,482/- to be spent on CSR activities. The Management is in the process of identifying some good projects that can be supported by the Company.

5. The carrying value of the assets whose useful life is already exhausted as on 01.04.2014, amount to Rs. 1,30,24,797/- and deferred tax credit of Rs. 40,24,662/- there on has been recognized in the opening balance of retained earnings.

6. In the opinion of the Board of Directors of the Company, the Current Assets, Loans and Advances have a value realizable in the ordinary course of business at least equal to the amount at which they are stated and provisions for all known liabilities are adequate and not in excess of the amount reasonably necessary.

7. Micro, Small and Medium Enterprises Development Act, 2006

The information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company. The outstanding amount as at Balance Sheet date is given below:

8. In accordance with the Accounting Standard (AS) 17 "Segment Reporting" issued by The Institute of Chartered Accountants of India (ICAI) and specified u/s 133 of the Act read with Rule 7 of the Companies (Accounts) Rule, 2014 the Company has only one reportable segment "Bead Wire" for the current year. "Windmill" is not a reportable segment. As the power generated by windmill is exclusively used for captive consumption in bead wire, the financial result of "Windmill" segment have been included in "Bead Wire" segment.


Mar 31, 2014

Overview

Rajratan Global Wire Company Limited (''the Company'') alongwith its wholly owned subsidiary, M/s. Rajratan Thai Wire Company Limited is engaged in the business of manufacturing and sale of Tyre Bead Wire. In addition, the Company has a Wind Mill located in India for generation of electricity.

1 CONTINGENT LIABILITIES AND COMMITMENTS

1.1 Contingent Liabilities

Particulars As at As at 31 March 2014 31 March 2013

(a) Claims against the company Nil Nil not acknowledged as debt;

(b) Bank Guarantees;

(i) Bank Guarantee with 11,000,000 11,000,000 State Bank of India, Specialised Mid Corporate Branch, Pithampur for Rajratan Global Wire Limited

(ii) Bank Guarantee with local bank for 2.63 2.63 letter of guarantee issued by said Million Million banks Bhat Bhat

(iii) Bank Guarantee with State Bank 1.217.394 1.217.394 of India, Germantara Complex Branch, Pithampur for Swaraj Technocrafts Pvt. Ltd

(c) The Company has given the US$ 17.50 US$ 17.50 Corporate Guarantee for the credit Million Million facilities availed by M/s. Rajratan Thai Wire Co. Ltd., Thailand the Wholly Owned subsidiary of the company.

(d) 5,400,000 equity shares of M/s. Rajratan Thai Wire Co.Ltd.(RTWL), Thailand have been pledged each with State Bank of India and ICICI Bank Ltd, against loans sanctioned by them to RTWL

(e) Other money for which the company is contingently liable Income Tax & Excise appeals for which no provision is considered required as the company is hopeful of successful outcome in the appeals

2 Till the previous year the leasehold land, for 99 year lease with an option to renew for a further period of 30 years, has been in substance considered as equivalent to ownership of land. Accordingly the premium on land acquisition was not amortized.

However, the management has now decided to amortize the leasehold land over the period of lease. During the year, the management has decided to change the accounting policy with respect to amortization of leasehold land. A sum of Rs. 4,65,390/-which includes Rs. 4,45,156/- being the amount till 31.03.2013, has been charged to Statement of Profit and Loss. Accordingly the profits for the year and the Reserves & Surplus are understated to that extent.

3 In the opinion of the Board of Directors of the Company, the Current Assets, Loans and Advances have a value realizable in the ordinary course of business at least equal to the amount at which they are stated and provisions for all known liabilities are adequate and not in excess of the amount reasonably necessary.

4 Micro, Small and Medium Enterprises Development Act, 2006

The information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company. The outstanding amount as at Balance Sheet date is given below:

5 In accordance with the Accounting Standard (AS) 17 "Segment Reporting" issued by The Institute of Chartered Accountants of India (ICAI) and notified under the Companies Accounting Standards Rules, 2006 the Company has only one reportable segment "Bead Wire" for the current year. "Windmill" is not a reportable segment. As the power generated by windmill is exclusively used for captive consumption in bead wire, the financial result of "Windmill" segment have been included in "Bead Wire" segment.

6 In accordance with the Accounting Standard (AS)18 "Related Party Disclosures" issued by The Institute of Chartered Accountants of India (ICAI) and notified under the Companies Accounting Standards Rules, 2006 the names of the related parties and the relevant disclosure is as under:-

7 The Company has an investment of Rs. 33.60 Crore (Previous Year Rs. 23.35 crore) in equity shares of M/s. Rajratan Thai Wire Company Limited (RTWL) a wholly owned subsidiary. The Company has outstanding balances of loans amounting to NIL (Previous Year Rs. 3.67 crore) and amount receivable on account of sales, Rs.12.93 crore (Previous Year 7.33 crore), (collectively referred to as ''Exposures''). Although the Net worth of RTWL has eroded to the extent of more than 85%, the management considers it appropriate not to recognise diminution in value of investments. Management, barring any significant uncertainties in future, relies upon the RTWL management''s anticipation of future profits. The management considers the ''Exposures'' to be ''Good'' at the close of the year and adequately covered, and expects full realisability of the same in future, upon which, the Auditors, being unable to make an informed judgment, have placed their reliance.

8 Previous Year''s figures have been regrouped and recast wherever considered necessary to make them comparable with the current year''s figures.


Mar 31, 2013

Overview

Rajratan Global Wire Company Limited (''the Company'') alongwith its wholly owned subsidiary, M/s. Rajratan Thai Wire Company Limited is engaged in the business of manufacturing and sale of Tyre Bead Wire. In addition, the Company has a Wind Mill located in India for generation of electricity.

1 In the opinion of the Board of Directors of the Company, the Current Assets, Loans and Advances have a value realizable in the ordinary course of business at least equal to the amount at which they are stated and provisions for all known liabilities are adequate and not in excess of the amount reasonably necessary.

2 Under the Micro, Small and Medium Enterprises Development Act,2006 which came into force from 2nd October 2006, certain disclosures are required to be made relating to Micro, Small and Medium Enterprises. The Management has confirmed that none of the suppliers have confirmed that they are registered under the provisions of this Act. In view of this, the liability of the interest and disclosures are not required to be disclosed in the financial statement.

3 The disclosure required as per Accounting Standard (AS) 15 "Employees Benefit" issued by the Institute of Chartered Accountants of India (ICAI) and notified under the Companies Accounting Standards Rules, 2006 and based on the report issued by Life Insurance Corporation of India (LIC) is as under:-

(a) The company has taken Group Gratuity and Cash Accumulation Policy issued by the LIC which is a defined benefit plan.

4 In accordance with the Accounting Standard (AS) 17 "Segment Reporting" issued by The Institute of Chartered Accountants of India (ICAI) and notified under the Companies Accounting Standards Rules, 2006 the Company has only one reportable segment "Bead Wire" for the current year. "Windmill" is not a reportable segment. As the power generated by windmill is exclusively used for captive consumption in bead wire, the financial result of "Windmill" segment have been included in "Bead Wire" segment.

5 In accordance with the Accounting Standard (AS)18 "Related Party Disclosures" issued by The Institute of Chartered Accountants of India (ICAI) and notified under the Companies Accounting Standards Rules, 2006 the names of the related parties and the relevant disclosure is as under:-

(a) Name of the related party and description of relationship: i. Key Management Personnel:

1) Mr.SunilChordia - Managing Director

2) Mr.DeepeshTrivedi - Executive Director

3) SmtSangitaChordia - Whole Time Director ii. Relatives of Key Managerial Personnel

1) Smt. Shantadevi Chordia W/o Shri Chandanmal Chordia iii. Companies/entities under the control of Key Management personnel

1) M/s.Rajratan Resources Pvt. Ltd.,

2) M/s.Rajratan Investment Ltd,

3) M/s. Cee Cee Engineering Industries Pvt. Ltd. iv. Subsidiary

1) M/s. Rajratan Thai Wire Company Ltd., Thailand

2) M/s. Swaraj Technocraft Pvt. Ltd.

6 The Company has an investment of Rs. 23.35 crore (Previous Year Rs. 23.35 crore) in equity shares of M/s. Rajratan Thai Wire Company Limited (RTWL) a wholly owned subsidiary. The Company has outstanding balances of loans amounting to Rs. 3.67 crore (Previous Year Rs. 3.15 crore) and amount receivable on account of sales, Rs. 7.33 crore (Previous Year 4.14 crore), (collectively referred to as ''Exposures''). Although the Net Worth of RTWL has eroded to the extent of more than 80%, the management considers it appropriate not to recognize diminution in value of investments. Management, barring any significant uncertainties in future, relies upon the RTWL management''s anticipation of future profits. The management considers the ''Exposures'' to be ''Good'' at the close of the year and adequately covered, and expects full reusability of the same in future, upon which, the Auditors, being unable to make an informed judgement, have placed their reliance.

7 Previous Year''s figures have been regrouped and recast wherever considered necessary to make them comparable with the current year''s figures.


Mar 31, 2012

Over view

Rajratan Global Wire Company Limited ('the Company') along with its wholly owned subsidiary, M/s. Rajratan Thai Wire Company Limited is engaged in the business of manufacturing and sale of Tyre Bead Wire. In addition, the Company has a Wind Mill located in India for generation of electricity.

1.1 The company has only one class of shares having a par value of Rs.10/- per share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval by the shareholders of the company in the ensuing Annual General Meeting. In the event of liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. During the year ended 31st March 2012, the amount of per share dividend recognised as distributions to equity share holders is Rs. 1.2 per Share (Previous Year Rs.

1.2 per Share). The total dividend appropriation for the year ended March 31, 2012 amounts to Rs. 61,09,666 including Corporate Dividend Distribution Tax of Rs. 8,87,506 (Previous YearRs. 76,37,083 including Corporate Dividend Distribution Tax Rs. 11,09,383)

2.1 SECURITY:

A. Term loans outstanding Rs. 7,38,81,349/- (Previous year Rs.8,26,82,477/-) are secured by way of an equitable mortgage of immovable properties ranking pari passu amongst the lenders and by a first charge by way of hypothecation of all the company's movable machinery, present and future, subject to prior charges created in favour of Company's Bankers on the stock of raw materials, goods in process, finished and manufactured goods and Book Debts towards security for working capital facilities. Term loans are also secured by personal guarantee of the Managing Director.

B. Sales Tax Deferment Loan outstanding Nil (Previous year Rs. 60,49,270/-) is secured by way of charge created in favour of Madhya Pradesh State Industrial Development Corporation Ltd. ranking pari-passu on fixed assets with other banks.

C. Vehicle Loan outstanding Nil (Previous year 1,39,326/-) is secured by hypothecation of vehicle.

3.1 Security: Loans repayable on demand from State Bank of India, Indore and IDBI Bank Ltd.,Indore are Working Capital Loans and are secured by hypothecation of company's stock and book debts, present and future and by a second charge on all the immovable properties of the company and plant and machinery, machinery spares, tools and accessories and other movables both present and future. Such advances are also secured by personal guarantees of the Managing Director.

4.1 Inventories are valued at cost or net realisable value whichever is lower. The cost formulas used are Weighted Average Cost in case of Raw Material and First-in First Out ('FIFO') in case of Ancillary Raw Material and Consumable Spares. The cost of inventories comprises all cost of purchase including duties and taxes (other than those subsequently recoverable from the taxing authorities), conversion cost and other costs incurred in bringing the inventories to their present location and condition. Excise Duty is included in the value of finished goods inventory.

5 CONTINGENT LIABILITIES AND COMMITMENTS

5.1 Contingent Liabilities

(a) Claims against the company not acknowledged as debt; Nil Nil

(b) Guarantees;

(i) Bank Guarantee 84,55,099 53,55,538

(ii) Corporate Guarantee for the credit facilities availed by

M/s, Rajratan Thai wire co. Ltd. Thailand the Wholly Owned subsidiary ofthe company. US$ 17.50 Million US$12.30 Million

(c) Other money for which the company is contingently liable Income Tax & Excise appeals for which no provision is considered required as the company is hopeful of successful out come in the appeals 5,84,233 7,16,114

6 In the opinion of the Board of Directors of the Company, the Current Assets, Loans and Advances have a value realizable in the ordinary course of business at least equal to the amount at which they are stated and provisions for all known liabilities are adequate and not in excess of the amount reasonably necessary.

7 Under the Micro, Small and Medium Enterprises Development Act,2006 which came into force from 2nd October 2006, certain disclosures are required to be made relating to Micro, Small and Medium Enterprises. The Management has confirmed that none of the suppliers have confirmed that they are registered under the provisions of this Act. In view of this, the liability of the interest and disclosures are not required to be disclosed in the financial statement.

8 The disclosure required as per Accounting Standard (AS) 15 "Employees Benefit" issued by the Institute of Chartered Accountants of India (ICAI) and notified under the Companies Accounting Standards Rules, 2006 and based on the report issued by Life Insurance Corporation of India (LIC) is as under:-

9. In accordance with the Accounting Standard (AS) 17 "Segment Reporting" issued by The Institute of Chartered Accountants of India (ICAI) and notified under the Companies Accounting Standards Rules, 2006 the company has only one reportable segment "Bead Wire" for the current year. "Windmill" is not a reportable segment. As the power generated by windmill is exclusively used for captive consumption in bead wire, the financial result of "Windmill" segment have been included in "Bead Wire" segment.

10. In accordance with the Accounting Standard (AS)18 "Related Party Disclosures" issued by The Institute of Chartered Accountants of India (ICAI) and notified under the Companies Accounting Standards Rules, 2006 the names of the related parties and the relevant disclosure is as under:-

11. Earning Per Share :

The Company's share capital consists of equity share. The basic and diluted earning per share is calculated as under:


Mar 31, 2011

1. In the opinion of the Board of Directors of the Company, the Current Assets, Loans and Advances have a value realizable in the ordinary course of business at least equal to the amount at which they are stated and provisions for all known liabilities are adequate and not in excess of the amount reasonably necessary.

2. The estimated amount of contract remaining to be executed on capital account and not provided for Rs. 1,50,000/- (Previous Year Rs. 1,40,57,871/-) Advances paid to suppliers of capital goods is Rs. 1,87,928/- are (Previous Year 47,01,065/-) included in the Capital Work in progress.

3. Contingent liabilities

a) The company has given the Corporate Guarantee for the credit facilities availed by M/s Rajratan Thai Wire Co.Ltd, Thailand the wholly owned subsidiary of the company: USD 12.30 Million (Previous Year USD 12.30 Million).

b) The Demands have been raised by the Income Tax department against the company after assessment for the following years though the company has filed appeals before the appropriate authorities against such assessment orders.

AY.2007-08 Rs. 1,34,891/-

4. Installments of term loans from financial institutions falling due within one year are Rs. 5,22,00,000/- (Previous year Rs. 4,32,00,000/-) and Sales Tax Deferment Loan Rs. 59,77,724/- (Previous Year Rs. 1,72,23,072/-)

5. Quantitative Information as required under Clause 3(i) (a), 3(h), 4-C, 4-D of Part II of Schedule VI to the Companies Act, 1956.

6. During the year the dividend received from Subsidiary M/s Swaraj Technocrafts Pvt. Ltd. is X 87,500/- (Previous Year X 87,500/-).

7. Under the Micro, Small and Medium Enterprises Development Act,2006 which came into force from 2nd October 2006, certain disclosures are required to be made relating to Micro, Small and Medium Enterprises. The Management has confirmed to us that none of the suppliers have confirmed that they are registered under the Provisions of this Act. in view of this, the liability of the interest and disclosures are not required to be disclosed in the financial statement.

8. During the year the commission on sales paid to Selling Agents is Rs. 31,41,085/- ( Previous Year Rs. 4,95,031/-).

9. The amount of Foreign Exchange difference included in the profit & loss account is Rs. 1,22,906 /- (Previous Year Rs. (-) 21,39,237/-).

10. The disclosure required as per Accounting Standard (AS) 15 "Employees Benefit" issued by the Institute of Chartered Accountants of India (ICAI) and notified under the Companies Accounting Standards Rules, 2006 and based on the report issued by Life Insurance Corporation of India (LIC) is as under:-

(a) The company has taken Group Gratuity and Cash Accumulation Policy issued by the LIC which is a defined benefit plan.

11. In accordance with the Accounting Standard (AS)18 "Related Party Disclosures" issued by The Institute of Chartered Accountants of India (ICAI) and notified under the Companies Accounting Standards Rules, 2006 the names of the related parties and the relevantdisclosureisasunder:-

(a) Name of the related party and description of relationship: i. Key Management Personnel:

1) Mr.ChandanmalChordia - Chairman (Till 5th May 2010)

2) Mr.SunilChordia - Managing Director

3) Mr.DeepeshTrivedi - Executive Director

ii. Relatives of Key Managerial Personnel

1) Smt. Shantadevi Chordia W/o Shri Chandanmal Chordia

2) Smt. Sangita Chordia W/o Shri Sunil Chordia

iii. Companies/entities under the control of Key Management personnel

1) M/s.Rajratan Resources Pvt. Ltd.,

2) M/s.Rajratan Investment Ltd,

3) M/s. Cee Cee Engineering Industries Pvt.Ltd. iv Subsidiary

1) M/s. Rajratan Thai Wire Company Ltd., Thailand

2) M/s. Swaraj Technocraft Pvt Ltd .

12. Debit/Credit balances written off during the year amounting to Rs. 10,66,592/- includes:-

(a) Advance paid to raw material suppliers of Rs. 5,00,000/- against which no supplies are received.

(b) Bad debts written off during the year amounting to Rs. 51,31,778/-

(c) Credit balance of one of the supplier of Rs. 45,45,758/- is written back which in the opinion of the management is not payable.

13. Previous Year's figures have been regrouped and recast wherever considered necessary to make them comparable with the current year's figures.


Mar 31, 2010

1. In the opinion of the Board of Directors of the Company, the Current Assets, Loans and Advances have a value realizable in the ordinary course of business at least equal to the amount at which they are stated and provisions for all known liabilities are adequate and not in excess of the amount reasonably necessary.

2. The estimated amount of contract remaining to be executed on capital account and not provided for Rs 1,40,57,871/- (Previous Year Rs. 50,10,663/-) Advances paid to suppliers of capital goods is Rs.47,01,065/- are (Previous Year 12,26,453/-) included in the Capital Work in progress.

3. Contingent liabilities

a) Bank Guarantees given by Bank Rs. NIL (Previous Year Rs.6,76,000/-).

b) The company has given the Corporate Guarantee for the credit facilities availed by M/s Rajratan Thai Wire Co.Ltd, Thailand the wholly owned subsidiary of the company: USD 12.30 Million (Previous Year USD 12.30 Million)

c) The Demands have been raised by the Income Tax department against the company after assessment for the following years though the company has filed appeals before the appropriate authorities against such assessment orders.

A.Y.2007-08 Rs. 1,34,891/-

4. Installments of term loans from financial institutions falling due within one year are Rs.4,32,00,000/- (Previous year Rs.5,43,33,233/-) and Sales Tax Deferment Loan Rs. 1,72,23,072/- (Previous Year Rs. 1,42,09,904/-)

5. Quantitative Information as required under Clause 3(i) (a), 3(ii), 4-C, 4-D of Part II of Schedule VI to the Companies Act, 1956.

6. During the year the dividend received from Joint Venture in M/s Swaraj Technocrafts Pvt. Ltd. is Rs.87,500/- (Previous Year Rs. 1,31,250/-).

7. The suppliers of the company have not informed about the status of their Registration under Micro, Small and Medium Enterprises Act, there for the information in this regard could not be compiled with. The total outstanding dues of micro and small enterprises have been considered as NIL.

8. During the year the commission on sales paid to Selling Agents is Rs. 4,95,031/-( Previous Year Rs.38,24,428/-).

9. The amount of Foreign Exchange difference included in the profit & loss account is Rs. (-)21,39,237/- (Previous Year Rs. (-) 11,23,486/-).

Notes:- i. The basis of inter segments transfers is the rate of power decided by MP State Electricity Board. ii. There are no changes is segment accounting policies. iii. Type of products and services in business segment is as under:-

Steel Wire - Tyre Bead Wire

Wind Mill - Generation of Electrical Energy

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