Mar 31, 2015
1.Equity Shares : The company has issued only one class of Equity shares
having a par value of Rs. 10/- each. Each holder of equity shares is
entitled to one vote per share. Dividend is payable in the proportion
to the Capital Paid Up. In the event of liquidation of the company,the
holder 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.
2. The Company had a liability of Rs. 312,333,405/- payable from 30th
April 2001 to 30th April 2014 to Sales Tax Department of Government of
Maharashtra in respect of sales tax deferral scheme for its Methanol
division. The Company had assigned the said liability to subsidiary
during the year 1999 - 2001. The subsidiary had paid Rs. 1,989,265/-
upto 31st March 2015 out of Rs. 312,333,405/- due upto 31st March
2015. Since the subsidiary has not made further payment to sales tax
department same is accounted as sales tax deferral dues. Since recovery
of Rs. 308,644,140/- from subsidiary is doubtful, the same has been
provided for in the books of accounts.
3. Based on the information available with the company, one party has
been identified as MSME as defined under "Micro,Small and Medium
Enterprises Development Act, 2006" which has claimed Rs. 14,33,622/-
(Previous Year Rs. 14,33,622/-) towards supply. This liability has
been disputed by the company. The party has filed a complaint against
the Company, with Micro and Small Enterprises Facilitation Council.
Under these circumstances interest, if any, will be accounted as and
when becomes payable.
4. During the year 1998 - 99, company had imported some material and
could not pay the custom duty due to financial crisis. The material
was stored in Central Warehousing Corporation bonded warehouse. During
the year 2012 - 13, the company came to know that the material was
auctioned by the Custom Authority for non-paymant of duty. The Company
is taking appropriate legal remedies for claiming the value of these
materials, hence the same is disclosed as Claims Receivable.
5. Contingent Liabilities :
a. Claims against the company not acknowledged are as follows :
(Amount in Rs. )
Name of the Statute 2014 - 15 2013 - 14
Income Tax 285,497,280 285,497,280
Gujarat Sales Tax 3,606,085 3,606,085
Irrigation Department 259,205,087 259,205,087
Total 548,308,452 548,308,452
The Company is in appeal for these claims.
b. Guarantees / Counter Guarantees given to Banks, Financial
Institutions and other Body Corporate Rs. 909,600,000/- (Previous Year
Rs. 909,680,000/-)
6. The operation of company's methanol division has been unviable and in
turn forced the company to suspend its production activities since
Sept.'1999. However, the company is making efforts to obtain
alternative main feed stock for its methanol plant to make the
operation viable. Considering the fact that laying of pipeline for
supply of gas by Gas Authority of India Ltd. is completed, the company
is hopeful to restart its plant soon. Accordingly the company continues
to prepare accounts on the basis of "Going Concern Concept".
7. As mentioned above the company had suspended its production
activities since Sept.'1999, as a result of this the company has
transferred some of the employees to other Division /Group Companies
w.e.f. 30th October,1999. None of the transferred employees has reported
to their duties and they have approached the Industrial Court. However,
Company does not expect any financial liability, apart from their
service benefit, which has been provided in the books of account.
8. The company has obtained a valuation report from registered valuer in
respect of its methanol division. On considering the same, the
management is of the opinion that there is no loss on account of
impairment of assets as per AS - 28 "Impairment of Assets" as issued by
ICAI pertaining to this division.
9. Related Party Disclosure under Accounting Standard 18 (AS 18) :
A) List of related parties as identified by the management with whom
transactions are taken place during the year are as under :
Sr. Relationship Related Parties
No.
I Enterprises that directly or Rama Capital and Fiscal Services
indirectlycontrol (through Pvt. Ltd.- 100% subsidiary company
subsidiariers) or are controlled by
are under common control with the
reporting enterprise
II Associates, Joint Ventures of the Indo Us Investment Inc
reporting entity, investing party or
venture in respect of which reporting
enterprise is an associate or a joint
venture
III Individual owing, directly or None
indirectly an interest in voting
power of reporting enterprise that
gives them control or significant
influence over the enterprise and
relative of any such individual
Sr. Relationship Related Parties
No.
IV Key Management Personnel (KMP) Mr. H. D. Ramsinghani - Chairman
and their relatives
Mr. D. N. Singh - Technical Director
Relatives of Chairman
Mr. D. J. Ramsinghani
Mrs. L. D. Ramsinghani
Mrs. N. H. Ramsinghani
Ms. P. D. Ramsinghani
V Enterprises over which any Rainbow Denim Ltd.
person described in III and
IV above is able to exercise Rama Phosphates Ltd.
significant influence
Rama Industries Ltd.
Rainbow Agri Industries Ltd.
Bluelagoon Investment Pvt. Ltd.
Rama Enterprises
10. Previous year figures have been regrouped / rearranged wherever
necessary to make them comparable.
Mar 31, 2014
1. Share Capital
Details of rights,preferences and restrictions attaching to each class
of shares including restrictions on the distribution of dividends and
the repayment of capital.
Equity Shares : The company has issued only one class of Equity shares
having a par value of Rs. 10/- each. Each holder of equity shares is
entitled to one vote per share. Dividend is payable in the proportion
to the Capital Paid Up. In the event of liquidation of the company,the
holder 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.
2. Share Application Money
1. Share Application money is received from a promoter''s group company
in accordance with the revival Scheme submitted to the B.I.F.R. and the
allotment of shares pursuant thereto is subject to and shall be in
accordance with the directions of the B.I.F.R.
3. Long Term Provisions
1. Consequent to the adoption of Accounting Standard 15 on Employee
Benefits issued by the Institute of Chartered Accountants of India, the
following disclosures have been made as required by standards :
A. Defined Contribution Plan
Provident Fund : The Company has recognised the following amount in the
profit and loss account for the year.
4. Other Current Liabilities
1. Based on the information available with the company, one party has
been identified as MSME as defined under "Micro,Small and Medium
Enterprises Development Act, 2006" which has claimed Rs. 14,33,622/-
(Previous Year Rs. 14,33,622/-) towards supply. This liability has been
disputed by the company. The party has filed a complaint against the
Company, with Micro and Small Enterprises Facilitation Council. Under
these circumstances interest, if any, will be accounted as and when
becomes payable.
5. Fixed Assets (At Cost)
1. Lease hold land is taken on lease for the period of 95 years and
cost of the same is amortised over the period of lease.
2. Immovable properties of the Company is also mortagaged on first
pari-passu charge basis in favour of Financial Institution and Banks to
secure Term Loan sanctioned to denim division of the company. In the
year 1999 - 2001, denim division of the company was demerged as Rainbow
Denim Ltd.
6. Other Current Assets
1. During the year 1998 - 99, company had imported some material and
could not pay the custom duty due to financial crisis. The material
was stored in Central Warehousing Corporation bonded warehouse. During
the year 2012 - 13, the company came to know that the material was
auctioned by the Custom Authority for non-paymant of duty. The Company
is taking appropriate legal remedies for claiming the value of these
materials, hence the same is disclosed as Claims Receivable.
7. Contingent Liabilities
a. Claims against the company not acknowledged are as follows
(Amount in Rs.)
Name of the Statute 2013-14 2012-13
Income Tax 28,54,97,280 16,71,85,892
Gujarat Sales Tax 36,06,085 36,06,085
Irrigation Department 25,92,05,087 25,92,05,087
Total 54,83,08,452 42,99,97,064
The Company is in appeal for these claims.
b. Guarantees/Counter Guarantees given to Banks, Financial Institutions
and other Body Corporate Rs. 90,96,80,000/- (Previous Year Rs.
98,46,70,906/-).
c. Sales Tax Liability of Rs. 31,03,44,140/- (Previous Year Rs.
31,03,44,140/-).
Interest Free Sales Tax Deferment : The Company had a liability of Rs.
31,23,33,405/- (Previous Year Rs. 31,23,33,405/-) payable from 30th
April 2001 to 30th April 2014 to Sales Tax Department of Government of
Maharashtra in respect of sales tax deferral scheme for its Methanol
division. The Company has assigned the said liability to another
company during the year 1999 - 2001. The assignee company has paid Rs.
19,89,265/- (Previous Year Rs. 19,89,265/-) upto 31st March, 2014 out
of Rs. 31,19,19,527/- (Previous Year Rs. 30,84,96,760/-) due upto 31st
March, 2014. Since the assignee company has failed in paying the sales
tax dues, the assignor may be responsible to pay the same and hence
this has been disclosed as contingent liability. The company is
registered under BIFR.
d. Capital commitments Rs. Nil (Previous Year Rs. 18,83,435/-).
8. The company has not provided for
a. Custom duty (net of provision) of Rs. 4,32,740/- (Previous Year Rs.
4,32,740/-) and interest on custom duty aggregating to Rs.1,81,51,909/-
(Previous Year Rs. 1,69,65,361/-) till March 31, 2014.
b. Interest on late payment of custom duty Rs. 19,62,185/- (Previous
Year Rs. 19,62,185/-)
9. The operation of company''s methanol division has been unviable and
in turn forced the company to suspend its production activities since
Sept.''1999. However, the company is making efforts to obtain
alternative main feed stock for its methanol plant to make the
operation viable. Considering the fact that laying of pipeline for
supply of gas by Gas Authority of India Ltd. is completed, the company
is hopeful to restart its plant soon. Accordingly the company continues
to prepare accounts on the basis of "Going Concern Concept".
10. As mentioned above the company had suspended its production
activities since Sept.''1999, as a result of this the company has
transferred some of the employees to other Division /Group Companies
w.e.f. 30th October,1999. None of the transferred employees has
reported to their duties and they have approached the Industrial Court.
However, Company does not expect any financial liability, apart from
their service benefit, which has been provided in the books of account.
11. The company has obtained a valuation report from registered valuer
in respect of its methanol division. On considering the same, the
management is of the opinion that there is no loss on account of
impairment of assets as per AS - 28 "Impairment of Assets" as issued by
ICAI pertaining to this division.
12. Segment Reporting
The company has the following primary segments during the year
1. Methanol
2. Construction
3. Trading Goods
13. Previous year figures have been regrouped/rearranged wherever
necessary to make them comparable.
Mar 31, 2013
1.1 Bank of Baroda has assigned and transferred to International Asset
Reconstruction Company Pvt. Ltd. (IARC) the outstanding loan together
with all underlying security, interest thereto and all Bank of Baroda''s
rights, title and interest in all agreements, deeds, documents in
relation to or in connection with the facilities. However, during the
year the Company has fnalized One Time Settlement (OTS) with IARC and
payment in terms of this OTS have been effected. Consequent to above,
the company has taken credit of waiver of interest amounting to Rs.
6,026,832 and which have been treated as Extra  Ordinary Items in the
proft and loss account.
NOTE 2
Contingent Liabilities :
a. The claims not acknowledged by the Company are as follows :
(Amount in Rs. )
Name of the Statute 2012 - 13 2011 - 12
Income Tax 167,185,892 170,316,161
Excise Duty - 370,110
Gujarat Sales Tax 3,606,085 3,606,085
Irrigation Department 259,205,087 130,733,149
Total 429,997,064 305,025,505
The Company is in appeal for these claims.
b. Guarantees / Counter Guarantees given to Banks, Financial
Institutions and other Body Corporate Rs. 984,670,906/- (Rs. 953,876,000/-)
c. Sales Tax Liability of Rs. 310,344,140/- (Rs. 310,344,140/-).
Interest Free Sales Tax Deferment : The Company had a liability of Rs.
312,333,405/- (Rs. 312,333,405/-) payable from 30th April 2001 to 30th
April 2014 to Sales Tax Department of Government of Maharashtra in
respect of sales tax deferral scheme for its Methanol division. The
Company has assigned the said liability to another company during the
year 1999 - 2001. The assignee company has paid Rs. 1,989,265/- (Rs.
1,989,265/-) upto 31st March 2013 out ofRs. 308,496,760/- (Rs.
300,493,466/-) due upto 31st March 2013. Since the assignee company
has failed in paying the sales tax dues, the assignor is responsible to
pay the same. The company is registered under BIFR and no dues have
been paid to the sales tax department.
d. Capital commitments Rs. 1,883,435/- (Rs. 2,475,200/-) NOTE 24
The company has not provided for :
a. Custom duty (net of provision) ofRs. 432,740/- (Rs. 432,740/-) and
interest on custom duty as per revised working aggregating to Rs.
16,965,361/- (Rs. 15,778,813/-) till March 31, 2013.
b. Interest on late payment of custom duty Rs. 1,962,185/- (Rs.
1,962,185/-)
NOTE 3
The operation of company''s methanol division has been unviable and in
turn forced the company to suspend its production activities since
Sept.''1999. However, the company is making efforts to obtain
alternative main feed stock for its methanol plant to make the
operation viable. Considering the fact that laying of pipeline for
supply of gas by Gas Authority of India Ltd. (GAIL) is completed, the
company is hopeful to restart its plant soon. Accordingly the company
continues to prepare accounts on the basis of "Going Concern Concept".
NOTE 4
As mentioned above the company had suspended its production activities
since Sept.''1999, as a result of this the company has transferred some
of the employees to other Division /Group Companies w.e.f. 30th
October,1999. None of the transferred employees has reported to their
duties and they have approached the Industrial Court. However, Company
does not expect any fnancial liability, apart from their service
beneft, which has been provided in the books of account.
NOTE 5
The company has obtained a valuation report from registered valuer in
respect of its methanol division. On considering the same, the
management is of the opinion that there is no loss on account of
impairment of assets as per AS Â 28 "Impairment of Assets" as issued by
ICAI pertaining to this division.
NOTE 6
Segment Reporting :
In absence of any revenue from the regular activities of the company in
the segments of construction and methanol manufacturing and sales,
segment wise reporting of income and expenditure has not been reported.
Other Information
NOTE 7
Related Party Disclosure under Accounting Standard 18 (AS 18) :
A) List of related parties as identifed by the management are as under
:
I) Enterprises that directly or indirectly control (through
subsidiaries) or are controlled by or are under common control with the
reporting enterprise :
Rama Capital and Fiscal Services Pvt. Ltd. - 100% Subsidiary Company
II) Associates, Joint Ventures of the reporting entity, investing party
or venture in respect of which reporting enterprise is an associate or
a joint venture :
Indo Us Investment Inc.
III) Individual owing, directly or indirectly an interest in voting
power of reporting enterprise that gives them control or signifcant
infuence over the enterprise and relative of any such individual:
None
IV) Key Management Personnel (KMP) and their relatives
Mr. H. D.Ramsinghani Chairman
Mr. D.N. Singh Technical Director
Mr. D. J. Ramsinghani Relative of Chairman
Mrs. N.H.Ramsinghani Relative of Chairman
V) Enterprises over which any person described in III and IV above is
able to exercise signifcant infuence and with whom transactions have
taken place during the year.
Rainbow Denim Ltd. Rama Phosphates Ltd. Rama Industries Ltd. Rainbow
Agri Industries Ltd. Rama Enterprises
NOTE 8
Previous year fgures are given in brackets and have been regrouped /
rearranged wherever necessary to make them comparable.
Mar 31, 2012
1.1 Share Application money is received from a promoter's group company
in accordance with the revival Scheme submitted to the B.I.F.R. and the
allotment of shares pursuant thereto is subject to and shall be in
accordance with the directions of the said B.I.F.R.
2.1 Working Capital Loans are secured by hypothecation of raw
materials, stock-in-process, finished goods, stores and spares and book
debts and by way of second parri passu charge on fixed assets at
Patalganga and personal guarantee of a erstwhile director,
2.2 Bank of Baroda has assigned and transferred to International Asset
Reconstruction Company Pvt. Ltd. (IARC) the outstanding loan with all
underlying security, interest thereto and all Bank of Baroda's rights,
title and interest in all agreements, deeds, documents in relation to
or in connection with the facilities. However, during the year the
Company has finalized One Time Settlement (OTS) with IARC and payment
in terms of this OTS have been effected. Consequent to above, the
company has taken credit of waiver of interest amounting to Rs. 6,027
thousand and which has been treated as Extra - Ordinary Items in the
profit and loss account. (Refer Note 23.1)
3.1 In the absence of information from suppliers of their status as
defined under "Micro, Small and Medium Enterprises Development Act,
2006" amount overdue and interest payable thereon, if any, cannot be
quantified.
4.1 a No remuneration is paid to Whole Time ( Technical) Director
during the year under review u/s 198 of the Companies Act, 1956.
b No commission is payable to Directors hence computation of net profit
u/s 349 of the Companies Act, 1956 is not applicable
5.1 Bank of Baroda has assigned and transferred to International Asset
Reconstruction Company Pvt. Ltd. (IARC) the outstanding loan together
with all underlying security, interest thereto and all Bank of
Baroda's rights, title and interest in all agreements, deeds,
documents in relation to or in connection with the facilities. However,
during the year the Company has finalized One Time Settlement (OTS)
with IARC and payment in terms of this OTS have been effected.
Consequent to above, the company has taken credit of waiver of interest
amounting to Rs. 6,027 thousand and which have been treated as Extra -
Ordinary Items in the profit and loss account.(Refer Note 6.2)
Note 6
Contingent Liabilities :
a. The claims not acknowledged by the Company are as follows :
(Rs. in Thousand)
Name of the Statute 2011 - 12 2010 - 11
Income Tax 1,70,316 1,72,402
Excise Duty 370 436
Gujarat Sales Tax 3,606 3,606
Irrigation Department 1,30,733 -
Total 3,05,0251 1,76,444
The Company is in appeal for these claims.
b. Guarantees / Counter Guarantees given to Banks, Financial
Institutions and other Body Corporate Rs. 9,53,876 thousand (Rs. 9,53,876
thousand)
c. Sales Tax Liability of Rs. 3,10,344 thousand(Rs. 3,10,344 thousand).
Interest Free Sales Tax Deferment :
The Company had a liability of Rs. 3,12,333 thousand (Rs. 3,12,333
thousand) payable from 30th April 2001 to 30th April 2014 to Sales Tax
Department of Government of Maharashtra in respect of sales tax
deferral scheme for its Methanol division. The Company has assigned the
said liability to another company during the
year 1999 - 2001. The assignee company has paid Rs. 1,989 thousand (Rs.
1,989 thousand) upto 31st March 2012 out of Rs. 3,00,493 thousand (Rs.
2,85,496 thousand) due upto 31st March 2012. Since the assignee company
has failed in paying the sales tax dues, the assignor is responsible to
pay the same. The company is registered under BIFR and no dues have
been paid to the sales tax department.
d. Capital commitments Rs. 2,475 thousand (Rs. 15,590 thousand)
Note 7
The company has not provided for :
a) Custom duty of Rs. 433 thousand (Rs. 433 thousand ) and interest on
custom duty as per revised working aggregating to Rs. 15,779 thousand (Rs.
14,592 thousand) till March 31, 2012.
b) Interest on late payment of custom duty Rs. 1,962 thousand. (Rs. 1,962
thousand )
Note 8
The operation of company's methanol division has been unviable and in
turn forced the company to suspend its production activities since
Sept.'1999. However, the company is making efforts to obtain
alternative main feed stock for its methanol plant to make the
operation viable. Considering the fact that laying of pipeline for
supply of gas by Gas Authority of India Ltd. (GAIL) is completed, the
company is hopeful to restart its plant soon. Accordingly the company
continues to prepare accounts on the basis of "Going Concern
Concept".
Note 9
As mentioned above the company had suspended its production activities
since Sept.'1999, as a result of this the company has transferred
some of the employees to other Division /Group Companies w.e.f. 30th
October,1999. None of the transferred employees has reported to their
duties and they have approached the Industrial Court. However, Company
does not expect any financial liability, apart from their service
benefit, which has been provided in the books of account.
Note 10
The company has obtained a valuation report from registered valuer in
respect of its methanol division. On considering the same, the
management is of the opinion that there is no loss on account of
impairment of assets as per AS - 28 "Impairment of Assets" as
issued by ICAI pertaining to this division.
Note 11
Segment Reporting:
In absence of any revenue from the regular activities of the company in
the segments of construction and methanol manufacturing and sales,
segment wise reporting of income and expenditure has not been reported.
Other Information
Note 12
Related Party Disclosure under Accounting Standard 18 (AS 18) :
A) List of related parties as identified by the management are as under
:
I) Enterprises that directly or indirectly control (through
subsidiaries) or are controlled by or are under common control with the
reporting enterprise :
Rama Capital and Fiscal Services Pvt. Ltd.
II) Associates, Joint Ventures of the reporting entity, investing party
or venture in respect of which reporting enterprise is an associate or
a joint venture :
Indo Us Investment Inc.
III) Individual owing, directly or indirectly an interest in voting
power of reporting enterprise that gives them control or significant
influence over the enterprise,and relative of any such individual :
None
IV) Key Management Personnel (KMP) and their relatives
Mr. H. D.Ramsinghani Chairman
Mr. D.N. Singh Technical Director
Mr. D. J. Ramsinghani Relative of Chairman
Mrs. Lajwanti D Ramsinghani Relative of Chairman
Mrs. Nilanjana H Ramsinghani Relative of Chairman
Ms. Pooja D. Ramsinghani Relative of Chairman
V) Enterprises over which any person described in III and IV is able to
exercise significant influence : Rama Phosphates Ltd.
Rainbow Denim Ltd.
Rama Industries Ltd.
Rainbow Agri Industries Ltd.
Nova Gelicon Pvt. Ltd.
Bluelagoon Investment Pvt. Ltd.
Jupiter Corporate Services Pvt. Ltd.
Integrated Port Services (I) Ltd.
Replica Investment and Estates Ltd.
Rama Enterprise
Note 13
Deferred Tax Liability :
In accordance with the provisions of Accounting Standard (AS22) issued
by The Institute of Chartered Accountants of India pertaining to
accounting of taxes on income, in view of the company not expecting any
taxable profits in near future, no deferred tax asset is recognized.
The details of the same are as under :
Note 14
Previous year figures are given in brackets and have been regrouped /
rearranged wherever necessary to make them Comparable.
Mar 31, 2010
1. Contingent Liabilities:
a. Income Tax and Excise Duty claims not acknowledged by the Company
Rs. 1,69,705 thousands (R.s. 25.405 thousands) The Company is in appeal
for these claims.
b. Guarantees / Counter Guarantees given to Banks, Financial
Institutions and other Body Corporate Rs. 953.876 thousands
(Rs.1,096.876 thousands )
c. Sales Tax Liability of Rs. 310.344 thousands (Rs. 310,344
thousands) (Refer Note No. 2)
d. Capital commitments Rs. 17,075 thousands ( Rs. 22,489 thousands)
2. Interest Free Sales Tax Deferment:
The Company had a liability of Rs.312.333 thousands payable from 30lh
April 2001 to 30" April 2014 to Sales Tax Department of Government of
Maharashtra in respect of sales lax deferral scheme for its Methanol
division. The Company has assigned the said liability to another
company during the year 1999 - 2001. The assignee company has paid Rs.
1.989 thousands (Rs. 1,989 thousands) upto 3 lM March 2010 out of Rs.
264,615 thousands (Rs. 237.552 thousands) due upto 31" March 2010.
Since the assignee company has failed in paying the sales lax dues, the
assignor is responsible to pay the same. The company is registered
under BIFR and no dues have been paid to the sales tax department.
3. During the year the Company has made provision for diminution in
long term investments in its wholly owned subsidiary company. However
dividend of Rs 31,500 thousands (Rs. 29,250 thousands) upto 31.03.2010
on investment in Cumulative Convertible Preference Shares of subsidiary
company has not been received by the company since the subsidiary
company has not paid any dividend as the net worth of the subsidiary
company has been completely eroded.
4. The outstanding balances of debtors, creditors, secured loans and
advances from customers, security and other deposits and balances with
excise authorities are subject to confirmation and reconciliation.
5 In the absence of information from suppliers of their status as
defined under "Micro, Small and Medium Enterprises Development Act,
2006", amount overdue and interest payable thereon, if any, cannot be
quantified.
6. The Company is in the process of appointing a whole lime Company
Secretary as required under Section 383A of the Companies Act. 1956.
7. The company has not provided for :
a. Interest of Rs. 24,233 thousands (Rs. 16,940 thousands) on working
capital loans from banks till March 31,2010.
b. Interest on custom duty aggregating to Rs. 5,731 thousands (Rs.
5,042 thousands) till March 31. 2010.
8. The operation of companys methanol division has been unviable and
in turn forced the company to suspend its production activities since
Sept." 1999. However, the company is making efforts to obtain
alternative main feed slock for its methanol plant to make the
operation viable. Considering the fact that laying of pipeline for
supply of gas by Gas Authority of India Ltd. (GAIL) is completed, the
company is hopeful to restart its plant soon. Accordingly the company
continues to prepare accounts on the basis of "Going Concern Concept".
9. As mentioned above the company had suspended its production
activities since Sept. 1999. as a result of this the company has
transferred some of the employees to other Division /Group Companies
w.e.f. 30" October.1999. None of the transferred employees has
reported to their duties and they have approached the Industrial Court.
However, Company does not expect any financial liability, apart from
their service benefit, which has been provided in the books of account.
10. In the absence of certainty about the applicability of the Service
Tax and Maharashtra Value Added Tax on construction activities no
provision has been made in the accounts for the same.
11. During the year, the company is supposed to pay capital gain tax
on account of conversion of its capital asset (land) into stock in
trade, which happened in the earlier year. However as the company is
having a business loss for the current year, the same capital gain is
knocked off towards it. Accordingly the provision for taxation on such
capital gain has not been made. 12. The disclosures required under
Accounting Standard 15 "Employees Benefits" are given below : A
Defined Contribution Plan Provident Fund The company has recognized the
following amount in the profit and loss account for the year
The estimates of future salary increases, considered in actuarial
valuation, take account of inflation, seniority. promotion and other
relevant factors such as supply and demand in the employment market.
12. The company has obtained a valuation report from registered
valuer in respect of its methanol division. On considering the same,
the management is of the opinion that there is no loss on account of
impairment of assets as per AS - 28 "Impairment of Assets" as issued by
ICAI pertaining to this division.
13. Segment Reporting:
The Company is only the primary segment which is its business segment
with no secondary segment Information about Primary Business Segment:
14. Related Party Disclosure :
a. List of Related Parties and Relationships (As Certified by the
Management)
Party Relation
i Rama Capital & Fiscal Services Pvt Ltd. 100% Subsidiary
ii Rainbow Denim Ltd)
Rama Phosphates Ltd> Associates
Rama Industries Ltd.
iii Indo-Us Investment Inc Holding more than 20% equity in Rama
Petrochemicals Ltd.
iv Key Management Personnel
Mr H D Ramsinghani Chairman
Mr D N Singh . Technical Director
v Exercise of significant control/ influence
Bluelagoon Investment Pvt Ltd.
Relatives of Key Management
crsonnel holds more than 20%
Rama Enterprises share holding
vi Mr. D. J. Ramsinghani Relative of Key Management Person
15. Earning Per Share (EPS)
16. Deferred tax Liability
The Companys Methanol Unit is closed and company is yet to finalize
the scheme of revival of the unit in consultation with operating agency
appointed by B1FR. In view of this, the company is not expecting any
taxable
17. a. No remuneration is paid to Whole Time Director dining the year
under review u/s 198 of the Companies Act. 1956. b. No commission is
payable to Directors hence computation of net profit u/s 349 of
Companies Act, 1956 is not applicable.
18. Information pursuant to the provisions of paragraphs (3) and (4)
of pait II of Schedule VI of the Companies Act. 1956. a. Manufactured
Goods : Methanol
19. Value of Imported / Indigenous Raw Material, Stores and Spares
Consumed
20. C.I.F Value of Imports :
21. Earnings in Foreign Currency :
22. Previous year figures are given in brackets and have been regrouped
rearranged wherever necessary to make their comparable,
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