1.1 Term Loans from Financial Institutions and Banks are secured by
First Charge ranking parri-passu on all movable and immovable assets,
present and future (Subject to charge on specified movables created/to
be created in favour of Company's Bankers to secure Working Capital)
and personal guarantee of Managing Director and erstwhile Director of
the Company. Further, Term Loans are also secured by Corporate
guarantee and First Charge on immovable properties of Rama
Petrochemicals Limited. Maturity profile and Rate of interest of Term
Loans are as set out below :
1.2 Loans taken from Export Import Bank of India assigned to Edelweiss
Asset Reconstruction Company Limited (EARC) and Loans taken from Bank
of India assigned to Assets Care & Reconstruction Enterperise Limited
(ACRE) are secured by First Charge ranking parri-passu on all movable
and immovable assets, present and future (Subject to charge on
specified movables created/to be created in favour of Company's Bankers
to secure Working Capital) and personal guarantee of Managing Director
and erstwhile Director of the Company. Further, the loan is also
secured by Corporate guarantee and First Charge on immovable properties
of Rama Petrochemicals Limited. Maturity profile and Rate of interest
of Term Loan are as set out below :
1.3 Loan taken from Industrial Investment Bank of India assigned to
Assets Care & Reconstruction Enterprise Limited (ACRE) is secured by
First Charge ranking parri-passu on all movable and immovable assets,
present and future (Subject to charge on specified movables created/to
be created in favour of Company's Bankers to secure Working Capital)
and personal guarantee of Managing Director and erstwhile Director of
the Company. Further, the loan is also secured by Corporate guarantee
and First Charge on immovable properties of Rama Petrochemicals
Limited. The loan carries interest @ 20% p.a.
The Company has defaulted in payment of Principal and Interest of Rs.
Nil (Previous Year - Rs. 15,43,547) with reference to Current
Maturities referred in Note 8.
1.4 Loans taken from Financial Institutions, Banks and liabilities
assigned to Edelweiss Asset Reconstruction Company Limited (EARC) and
Assets Care & Reconstruction Enterprises Limited (ACRE), are further
secured by pledge of investments by other companies.
1.5 Loan from Dhawalgiri Properties Private Limited is repayable in
single instalment on September 30, 2016 and carries interest @ 9% p.a.
(Previous Year @ 9% p.a.). The loan is secured by equitable mortgage
over Office Premises of the Company and personal guarantees of
erstwhile Directors of the Company.
1.6 Loans from HDFC Bank Limited are payable in the year 2015-16 and
carry interest @ 11.50% p.a. The loans are secured by hypothecation of
motor vehicles purchased there against.
2.1 Work-in-progress are valued at the lower of cost or net realizable
value. The cost is computed on weighted average method and includes
cost of materials, cost of conversion and other costs incurred in
acquiring the inventory and bringing them to their present location and
condition.
2.2 Finished Goods are valued at the lower of cost or net realizable
value. The cost is computed on weighted average method and includes
cost of materials, cost of conversion and other costs incurred in
acquiring the inventory and bringing them to their present location and
condition.
2.3 Raw Materials and other inventories of Colours, Dyes, Chemicals,
Stores, Spares and Packing Materials etc. are valued at the lower of
cost or net realizable value. Raw materials and other supplies held for
use in production of inventories are not written down below cost except
in cases where material prices have declined, and it is estimated that
the cost of the finished products will exceed their net realizable
value. The cost of Raw Materials is computed on specific identification
basis and other inventories of Colours, Dyes, Chemicals, Stores, Spares
and Packing Materials etc. is computed on FIFO basis.
2.4 Stock of Waste and Scrap is valued at estimated net realizable
value.
3.1 Due to inadequacy of profits, no commission is payable to
Directors. Hence computation of Net Profit U/S 198 of The Companies
Act, 2013 is not required.
3.2 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 the standards :
a. Short Term Employee Benefits :
All employee benefits falling due wholly within twelve months of
rendering the service like salaries, wages, short term compensated
absences etc. and the expected cost of bonus are recognized on accrual
basis.
b. Post-Employment Benefits : Defined Contribution Plans :
The Company has recognized the following amounts in the Statement of
Profit and Loss for Defined Contribution Plans :
4. Bond for Rs. 27,00,00,000 was issued against export obligation of
US$ 7,75,98,359 which is to be fulflled by January 12, 2019 or such
further extension as may be granted. The company has fulflled export
obligation of US$ 7,33,49,464 upto March 31, 2015.
5. No Debts or Loans and Advances are due from Directors or Officers
of the Company or from Firms or Private Companies in which any Director
is a Partner, Director or Member.
6. Consequent to the enactment of the Companies Act, 2013 (the Act)
and its applicability for accounting periods commencing after April 01,
2014, the Company has re-worked depreciation with reference to the
estimated economic lives of fixed assets prescribed by Schedule II to
the Act or actual useful life of assets, whichever is lower. In case of
any asset, whose life has been completed as above, the carrying value,
net of residual value, as at April 01, 2014 has been adjusted to the
opening balance of retained earnings/brought forward loss and in other
cases, the carrying value has been depreciated over the remaining of
the revised life of the assets and recognized in the Statement of
Profit and Loss. If there had not been any change in the useful life of
the assets, depreciation for the year would have been Rs. 9,14,40,218
consequently loss would have been lower by Rs. 1,97,65,512.
7. The Company is a Sick Industrial Company within the meaning of
Section 3(1)(o) of the Sick Industrial Companies (Special Provisions)
Act, 1985. BIFR has approved Rehabilitation Scheme vide order dated
December 27, 2012.
8. The management is taking various steps to reduce costs, improve
efficiencies to make its operations profitable and to arrange
sufficient funds for its operations. In view of these, financial
statements have been prepared on the basis that the Company will
continue as a "going concern".
9. Segment wise details, as required by AS 17 Segment Reporting, are
not furnished as the management is of the opinion that it does not have
any geographical/business segment that is subject to different kind of
risk, return or opportunities.
10. Figures have been rounded off to the nearest rupee.
11. Previous Year figures have been re-grouped/re-arranged, wherever
necessary, to make them comparable.
|