| NOTES FORMING PART OF FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st
MARCH, 2015 GENERAL INFORMATION
1. Shree Rajeshwaranand Paper Mills Limited ('the Company') was
incorporated on 20th March, 1991 under The Companies Act, 1956. The
company is in the Business of manufacturing of newsprint paper. The
company has recently started Tools Division also.
Secured Long Term Borrowings
2. I. [a] Loan from State Bank of India is secured by:
a) First Pari-passu charge by way of hypothecation over entire movable
fixed assets of the company for both Paper & Tools division along with
Bank of India.
b) First Pari-passu by way of registered mortgage with Bank of India
over additional immovable property (Factory building and civil
construction) to be created out of proposed projects for Paper & Tools
Division.
c) First Pari-passu charge by way of registered mortgage over Factory
land & Building belonging to the company situated at Plot no. 442/B
admeasuring 82216 sq. mtrs. & plot no. 451/B admeasuring 79692 sq.
mtrs. at RS no. 206,238,239,240,294 & 295 at village: Govali.
Jhagadia-Bharuch Road, Gujarat with Bank of India
d) First Pari-passu charge by way of registered mortgage over office
cum residential premises belonging to the company admeasuring 777.00
square ft sitauted at No.1002,10th floor, "Samudra Annex" Plot No. 322,
TPS No.3, Village: Changispur, Ahmedabad, Gujarat with Bank of India.
e) Lien on FDR of' 30.00 Lacs in the name of company.
f) Pledge of 3,03,000 shares of the company in the name of Mr. Prakash
Vora/Udyan Velvan.
g) Extension of second charge on entire current assets of the company
of the Tools division of the company.
h) Personal guarantee of the directors Mr.Prakash Vora and Mr.Udyan
Velvan.The loan has fully paid as on 31st March, 2015.The interest rate
is 3.90% above base rate (i.e.13.90%).
3. I. [b] There was no default in repayment of this loan.
4. [a] Loan from State Bank of India is secured by:
a) First Pari-passu charge by way of hypothecation over entire movable
fixed assets of the company for both Paper & Tools division along with
Bank of India.
b) First Pari-passu by way of registered mortgage with Bank of India
over additional immovable property (Factory building and civil
construction) to be created out of propsed projects for Paper & Tools
Division.
c) First Pari-passu charge by way of registered mortgage over Factory
land & Building belonging to the company situated at Plot no. 442/B
admeasuring 82216 sq. mtrs. & plot no. 451/B admeasuring 79692 sq.
mtrs. at RS no. 206,238,239,240,294 & 295 at village: Govali.
Jhagadia-Bharuch Road, Gujarat with Bank of India
d) First Pari-passu charge by way of registered mortgage over office
cum residential premises belonging to the company admeasuring 777.00
square ft sitauted at No.1002,10th floor, "Samudra Annex" Plot No. 322,
TPS No.3, Village: Changispur, Ahmedabad, Gujarat with Bank of India.
e) Lien on FDR of' 30.00 Lacs in the name of company.
f) Pledge of 3,03,000 shares of the company in the name of Mr. Prakash
Vora / Udyan Velvan.
g) Extension of second charge on entire current assets of the company
of the Tools division of the company.
h) Personal guarantee of the directors Mr.Prakash Vora and Mr.Udyan
Velvan.The Loan of ' 5,36,46,250/- has been converted into USD Loan at
the rate of ' 61.31 and hence the loan as at 31st March, 2014 is not
repayable in the next financial year. The Interest rate is 3.90% above
base rate (i.e. 13.90%).
5. [b] There was no default in repayment of this loan.
6. [a] Term Loan in foreign currency (USD) has been converted from
the term loan with State bank of India. It is Secured by:
a) First Pari-passu charge by way of hypothecation over entire movable
fixed assets of the company for both Paper & Tools division along with
Bank of India.
b) First Pari-passu by way of registered mortgage with Bank of India
over additional immovable property (Factory building and civil
construction) to be created out of propsed projects for Paper & Tools
Division.
c) First Pari-passu charge by way of registered mortgage over Factory
land & Building belonging to the company situated at Plot no. 442/B
admeasuring 82216 sq. mtrs. & plot no. 451/B admeasuring 79692 sq.
mtrs. at RS no. 206,238,239,240,294 & 295 at village: Govali.
Jhagadia-Bharuch Road, Gujarat with Bank of India
d) First Pari-passu charge by way of registered mortgage over office
cum residential premises belonging to the company admeasuring 777.00
square ft sitauted at No.1002,10th floor, "Samudra Annex" Plot No. 322,
TPS No.3, Village: Changispur, Ahmedabad, Gujarat with Bank of India.
e) Lien on FDR of' 30.00 Lacs in the name of company.
f) Pledge of 3,03,000 shares of the company in the name of Mr. Prakash
Vora / Udyan Velvan.
g) Extension of second charge on entire current assets of the company
of the Tools division of the company.
h) Personal guarantee of the directors Mr.Prakash Vora and Mr.Udyan
Velvan. The loan as on 31st March, 2015 is repayable in 7 equal monthly
installments of USD 13,000/- and thereafter a single payment of USD
7,40,500/-.
The interest rate is 4.84% over LIBOR.
7. [b] There was no default in repayment of this loan.
8. [a] Loan from State Bank of India is secured by:
a) First Pari-passu charge by way of hypothecation over entire movable
fixed assets of the company for both Paper & Tools division along with
Bank of India.
b) First Pari-passu by way of registered mortgage with Bank of India
over additional immovable property (Factory building and civil
construction) to be created out of propsed projects for Paper & Tools
Division.
c) First Pari-passu charge by way of registered mortgage over Factory
land & Building belonging to the company situated at Plot no. 442/B
admeasuring 82216 sq. mtrs. & plot no. 451/B admeasuring 79692 sq.
mtrs. at RS no. 206,238,239,240,294 & 295 at village: Govali.
Jhagadia-Bharuch Road, Gujarat with Bank of India
d) First Pari-passu charge by way of registered mortgage over office
cum residential premises belonging to the company admeasuring 777.00
square ft sitauted at No.1002,10th floor, "Samudra Annex" Plot No. 322,
TPS No.3, Village: Changispur, Ahmedabad, Gujarat with Bank of India.
e) Lien on FDR of' 30.00 Lacs in the name of company.
f) Pledge of 3,03,000 shares of the company in the name of Mr. Prakash
Vora / Udyan Velvan.
g) Extension of second charge on entire current assets of the company
of the Tools division of the company.
h) Personal guarantee of the directors Mr.Prakash Vora and Mr.Udyan
Velvan.The Loan as on 31st March 2015 is repayable in single final
installment of Rs. 91,847/- in the month of April 2015.
The interest rate is 3.85% above base rate (i.e. 13.85%).
9. [b] There was no default in repayment of this loan.
10. [a] Term Loan in foreign currency (USD) has been converted from
the term loan with State bank of India. It is Secured by:
a) First Pari-passu charge by way of hypothecation over entire movable
fixed assets of the company for both Paper & Tools division along with
Bank of India.
b) First Pari-passu by way of registered mortgage with Bank of India
over additional immovable property (Factory building and civil
construction) to be created out of propsed projects for Paper & Tools
Division.
c) First Pari-passu charge by way of registered mortgage over Factory
land & Building belonging to the company situated at Plot no. 442/B
admeasuring 82216 sq. mtrs. & plot no. 451/B admeasuring 79692 sq.
mtrs. at RS no. 206,238,239,240,294 & 295 at village: Govali.
Jhagadia-Bharuch Road, Gujarat with Bank of India
d) First Pari-passu charge by way of registered mortgage over office
cum residential premises belonging to the company admeasuring 777.00
square ft sitauted at No.1002,10th floor, "Samudra Annex" Plot No. 322,
TPS No.3, Village: Changispur, Ahmedabad, Gujarat with Bank of India.
e) Lien on FDR of' 30.00 Lacs in the name of company.
f) Pledge of 3,03,000 shares of the company in the name of Mr. Prakash
Vora / Udyan Velvan.
g) Extension of second charge on entire current assets of the company
of the Tools division of the company.
h) Personal guarantee of the directors Mr.Prakash Vora and Mr.Udyan
Velvan. The loan has fully paid as on 31st March, 2015. The interest
rate is 4.84% over LIBOR.
11. [b] There was no default in repayment of this loan.
12. I. [a] Loan from State Bank of India is secured by:
a) First Pari-passu charge by way of hypothecation over entire movable
fixed assets of the company for both Paper & Tools division along with
Bank of India.
b) First Pari-passu by way of registered mortgage with Bank of India
over additional immovable property (Factory building and civil
construction) to be created out of propsed projects for Paper & Tools
Division.
c) First Pari-passu charge by way of registered mortgage over Factory
land & Building belonging to the company situated at Plot no. 442/B
admeasuring 82216 sq. mtrs. & plot no. 451/B admeasuring 79692 sq.
mtrs. at RS no. 206,238,239,240,294 & 295 at village: Govali.
Jhagadia-Bharuch Road, Gujarat with Bank of India
d) First Pari-passu charge by way of registered mortgage over office
cum residential premises belonging to the company admeasuring 777.00
square ft sitauted at No.1002,10th floor, "Samudra Annex" Plot No. 322,
TPS No.3, Village: Changispur, Ahmedabad, Gujarat with Bank of India.
e) Lien on FDR of' 30.00 Lacs in the name of company.
f) Pledge of 3,03,000 shares of the company in the name of Mr. Prakash
Vora / Udyan Velvan.
g) Extension of second charge on entire current assets of the company
of the Tools division of the company.
h) Personal guarantee of the directors Mr.Prakash Vora and Mr.Udyan
Velvan.
The loan as at 31st March, 2014 is repayable in 4 equal quarterly
installment of Rs.22.50 lacs. The interest rate is 3.85% above base
rate (i.e.13.85%)
13. I. [b] There was no default in repayment of this loan.
14. [a] Loan from Bank of India is secured by:
a) First Pari Passu Charge over Machinery. Utilities, Civil
Construction, Site Development (Paper Division).
b) First Pari Passu Charge over Machinery. Utilities, Civil
Construction, Site Development (Tools Division).
c) First Pari Passu over Land & Building situated at RS No. 451B, 442B
of Mouje Village Mulad sim, Taluka Jhagdia on which business is carried
outa) 5% of the term loan to be repaid during F.Y 2015-16 i.e from
April 2015 to March 2016, 12 monthly installments of' 4.89 Lacs each.
d) First Pari Passu charge over existing plant & machinery of the
company.
e) First charge on Stocks of Tool Divisions.
f) First charge on Book Debts of Tools Division.
g) Pledge of TDRs as margin on L/C.
h) First Pari Passu charge over office situated at no. 1002, 10th
floor, Samudra Annex, Plot No. 322 TPS No. 3, Village Changispur,
Ahmedabad
15. Second Charge over current assets of Paper Division. Repayment
Schedule :
a) 5% of the term loan to be repaid during F.Y 2015-16 i.e from April
2015 to March 2016, 12 monthly installments of' 4.89 Lacs each.
b) 10% of the term loan to be repaid during F.Y 2016-17 i.e from April
2016 to March 2017, 12 monthly installments of' 9.80 Lacs each.
c) 15% of the term loan to be repaid during F.Y 2017-18 i.e from April
2017 to March 2018, 12 monthly installments of' 14.68 Lacs each.
d) 20% of the term loan to be repaid during F.Y 2018-19 i.e from April
2018 to March 2019, 12 monthly installments of' 19.58 Lacs each.
e) 25% of the term loan to be repaid during F.Y 2019-20 i.e from April
2019 to March 2020, 12 monthly installments of' 24.48 Lacs each.
f) 25% of the term loan to be repaid during F.Y 2020-21 i.e from April
2020 to March 2021, 10 monthly installments of' 26.71 Lacs each and
last installment of' 26.74 Lacs
16. I.[b] There was no default in repayment of this loan.
17. [a] Loan from Bank of India is secured by:
a) First Pari Passu Charge over Machinery. Utilities, Civil
Construction, Site Development (Paper Division).
b) First Pari Passu Charge over Machinery. Utilities, Civil
Construction, Site Development (Tools Division).
c) First Pari Passu over Land & Building situated at RS No. 451B, 442B
of Mouje Village Mulad sim, Taluka Jhagdia on which business is carried
outa) 5% of the term loan to be repaid during F.Y 2015-16 i.e from
April 2015 to March 2016, 12 monthly installments of Rs.4.89 Lacs each.
d) First Pari Passu charge over existing plant & machinery of the
company.
e) First charge on Stocks of Tool Divisions.
f) First charge on Book Debts of Tools Division.
g) Pledge of TDRs as margin on L/C
a) 5% of the term loan to be repaid during F.Y 2015-16 i.e from April
2015 to March 2016, 12 monthly installments of' 3.34 Lacs each.
b) 10% of the term loan to be repaid during F.Y 2016-17 i.e from April
2016 to March 2017, 12 monthly installments of' 6.67 Lacs each.
c) 15% of the term loan to be repaid during F.Y 2017-18 i.e from April
2017 to March 2018, 12 monthly installments of ' 10 00 I acs each
d) 20% of the term loan to be repaid during F.Y 2018-19 i.e from April
2018 to March 2019, 12 monthly installments of' 13.33 Lacs each.
e) 25% of the term loan to be repaid during F.Y 2019-20 i.e from April
2019 to March 2020, 12 monthly installments of' 1667 Lacs each.
f) 25% of the term loan to be repaid during F.Y 2020-21 i.e from April
2020 to March 2021, 10 monthly installments of' 18.17 Lacs each and
last installment of' 18.18 Lacs
18. I.[b] There was no default in repayment of this loan.
19. [a] Loan from HDFC Bank for Tractor Loan is secured by hypothecation
of the vehicle financed by the bank. The loan as at 31st March, 2015 is
fully repaid (including interest) each.The interest rate is 15%
p.a.3.3.9
20. [b] There was no default in repayment of this loan.
21. [a] Loan from HDFC Bank for Tractor Loan is secured by hypothecation
of the vehicle financed by the bank. The loan as at 31st March, 2015 is
fully repaid (including interest) each.The interest rate is 15% p.a.
22. [b] There was no default in repayment of this loan.
23. [a] Loan from HDFC Bank for Tractor Loan is secured by hypothecation
of the vehicle financed by the bank. The loan as at 31st March, 2015 is
repayable in 16 equal monthly installments from April 2015 of' 20,813/-
(including interest) each. The interest rate is 16% p.a.
24. [b] There was no default in repayment of this loan.
25. [a] Loan from HDFC Bank for Tractor Loan is secured by hypothecation
of the vehicle financed by the bank. The loan as at 31st March, 2015 is
repayable in 16 equal monthly installments from April 2015 of' 3,516/-
(including interest) each. The interest rate is 16% p.a.
26. [b] There was no default in repayment of this loan.
27. [a] Loan from HDFC Bank for Maruti Eco is secured by hypothecation
of the vehicle financed by the bank. The loan as at 31st March, 2015 is
repayable in 17 equal monthly installments from April 2015 of' 11,130/-
(including interest) each. The interest rate is 16% p.a.
28. [b] There was no default in repayment of this loan.
29. [a] Loan from HDFC Bank for Tractor Loan is secured by hypothecation
of the vehicle financed by the bank. The loan as at 31st March, 2015 is
repayable in 30 equal monthly installments from April 2014 of
Rs.16,986/- (including interest) each.The interest rate is 14.10% p.a.
30. [b] There was no default in repayment of this loan.
31. [a] Loan from HDFC Bank for Maruti Van Loan is secured by
hypothecation of the vehicle financed by the bank. The loan as at 31st
March, 2015 is repayable in 31 equal monthly installments from April
2014 of' 7,625/- (including interest) each.The interest rate is 12.60%
p.a.
32. [b] There was no default in repayment of this loan.
Unsecured Long Term Borrowings
33. [a] Loan from Tata Capital Financial Services as at 31st March,
2015 is repayable in 11 equal monthly installments from April 2014 of '
1,27,413/- (including interest). The Interest Rate is 18.44%.
34. [b] There was no default in repayment of this loan.
35. [a] Loan from Bajaj Finance Ltd. as at 31st March, 2015 is repayable
in 11 equal monthly installments of' 1,29,758/- (including interest).
The Interest Rate is 19.10%.
36. [b] There was no default in repayment of this loan.
37. [a] Loan from Magma Fincorp Ltd. as at 31st March, 2015 is repayable
in 40 equal monthly installments of' 1,31,015/- (including interest).
The Interest Rate is 17.50%.
38. [b] There was no default in repayment of this loan.
39.[a] Loan from Religare Finvest Ltd. as at 31st March, 2015 is
repayable in 28 equal monthly installments of' 1,80,437/- (including
interest). The Interest Rate is 19.01%.
40. [b] There was no default in repayment of this loan.
41. [a] Loan from Bajaj Finance Ltd. as at 31st March, 2015 is repayable
in 28 equal monthly installments of' 81,196/- (including interest). The
Interest Rate is 19.01%.
42. [b] There was no default in repayment of this loan.
43. [a] Intercorporate Deposits would not be recalled before end of
two years from 31st March, 2015.
44. [b] There is no default as the repayment is not due.
45. [a] Loan from related parties would not be recalled before end
of two years from 31st March, 2015.
46. [b] There is no default as the repayment is not due.
47. [a] Cash Credit Facility from State bank of India is secured by:
a) First Charge over entire current assets such as stocks of raw
materials, finished goods, stores & spares, SIP, receivables etc. of
the company.
b) Lien on FDR of' 30.00 lacs in the name of company.
c) Pledge of 1,03,000 shares of the company in the name of Mr. Prakash
Vora / Udyan Velvan.
d) Extension of charge over company's movable and immovable fixed
assets.
e) Personal guarantee of the directors Mr.Prakash Vora and Mr.Udyan
Velvan.
48. [b] The loan is repayable on demand. The interest rate is 3.75%
above the base rate (i.e.13.75%).
49. [a] Loan from Bank of India is secured by:
a) First Pari Passu Charge over Machinery. Utilities, Civil
Construction, Site Development (Paper Division).
b) First Pari Passu Charge over Machinery. Utilities, Civil
Construction, Site Development (Tools Division).
c) First Pari Passu over Land & Building situated at RS No. 451B, 442B
of Mouje Village Mulad sim, Taluka Jhagdia on which business is carried
outa)
d) First Pari Passu charge over existing plant & machinery of the
company.
e) First charge on Stocks of Tool Divisions.
f) First charge on Book Debts of Tools Division.
g) Pledge of TDRs as margin on L/C.
h) First Pari Passu charge over office situated at no. 1002, 10th
floor, Samudra Annex, Plot No. 322 TPS No. 3, Village Changispur,
Ahmedabad
i) Second Charge over current assets of Paper Division.
50. [b] The loan is repayable on demand. The interest rate is 3.55%
above the base rate (i.e.13.75%).
51. [a] Working Capital Loan in foreign currency (USD) from State
Bank of India has been converted from the cash credit facility available
with the bank.It is secured by:
a) First Charge over entire current assets such as stocks of raw
materials, finished goods, stores & spares, SIP, receivables etc. of
the company.
b) Lien on FDR of' 30.00 lacs in the name of company.
c) Pledge of 1,03,000 shares of the company in the name of Mr. Prakash
Vora / Udyan Velvan.
d) Extension of charge over company's movable and immovable fixed
assets.
e) Personal guarantee of the directors Mr.Prakash Vora and Mr.Udyan
Velvan.
52. [b] The loan as on 31st March, 2015 is repayable in a six monthly
installment of USD 13,47,945/- each.
The interest rate is 4.84% over LIBOR.
53. CONTINGENT LIABILITIES AND COMMITMENTS
(I) Contingent Liabilities
(A) Claims against the company/ disputed
liabilities not acknowledged as debts.
(i) Sales Tax 12,747,316 12,747,316
(ii) Income Tax 153,510 153,510
(B) Guarantees
(i) Performance Guarantees 20,586,300 15,417,300
(II) Capital Commitments
(a) Estimated amount of contracts remaining to
be executed on
Capital Account and not provided for 77,128,000 196,128,000
(net of advances)
54. Foreign exchange loss (net) of ' 1,24,359/- (Previous year'
12,466/-) has been included in respective heads of the Statement of
Profit and Loss.
55. SEGMENT REPORTING
Information about Primary segment (by business segment)
Manufacturing of Newsprint Paper
Manufacturing of Tools
The Company's business segments are organized around product lines
which have been identified taking into account the nature of products,
the different risks and returns the organizational structure and
internal reporting systems.
Segment revenue, segment results, segment assets and segment
liabilities include the respective amount identifiable to each of the
segment as also the amount allocated on reasonable basis. The incomes
which are not directly relatable to the business segment are shown as
unallocable income.
56. RELATED PARTY DISCLOSURE
List of Related Parties : Particulars
Subsidiaries /Associates NIL
Key Management Personnel 1) Prakash R. Vora
2) Udayan V. Velvan
Enterprise with common key management personnel NIL
Enterprise in which key management personnel, 1) Kankavati
and their relatives have significant influence Investment Pvt. Ltd.
Relative of key management personnel. 1) Hemali Vora
2) Shripal Vora
3) Parth Velvan
Note:
Related Parties Relationship is as identified by the company and relied
upon by the auditors.
Figures in the brackets represent previous year figures.
57. There are no leases in the year under consideration.
58. In the year under consideration the Company has purchased power
units online for self consumption, the credit of these units has been
given by GEB . Power and Fuel Expenses are arrived after considering
the net surplus of credit received from GEB and online purchase of
units of ' NI L/-( P.Y ' 2,92,76,724/ -), received from GEB for the
above units.
59. The balance confirmations have been sent to Sundry Debtors,
Creditors, Deposits and Loans & Advances Parties, due adjustment if any
shall be done on receipt of the confirmation. Management is confident
of receiving all the sums due. The provisions for all known liabilities
and for depreciation is adequate and not in excess of the amounts
reasonably necessary.
60. In the opinion of the board the current assets, loans and advances
are approximately of the values stated in the Balance Sheet, realized
in the ordinary course of business.
61. In the absence of declaration from sundry creditors / suppliers with
regard to their status as SSI Undertaking wherever appropriate, it is
not possible to determine the amount, payable to sundry creditors
falling within the meaning of SSI Undertaking.
62. Disclosure under Micro, Small and Medium Enterprises development
Act, 2006. The Company has not received any memorandum (as required to
be filed by the suppliers with notified authority under the Micro,
Small and Medium Enterprises development Act, 2006) claiming their
status as micro, small and medium enterprises. Consequently the amount
paid/payable to these parties during the period under review is NIL
63. Premium on forward contract are considered as expense in proportion
to the life of the term loan, Thus out of the total forward premium of
incurred ' 3,13,34,886/- (P.Y. ' 2,58,03,865/-) the premium written off
and included in other borrowing cost is ' 2,08,10,707/-(P.Y. '
1,30,68,036/-).
64. Previous Year Figures have been regrouped & reclassified/rearranged
wherever necessary..
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