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
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)
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
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)
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
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
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.
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.
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.
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 :
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.
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 :
Previous year figures are given in brackets and have been regrouped /
rearranged wherever necessary to make them Comparable.