| 1. Rights, preference and restriction attached to Equity Shares
The company has only one class of equity shares having a face value of
Rs. 10/- per share. Each holder of equity shares is entitled to one
vote per share. The company declares and pays dividend in Indian
rupees. The proposed dividend recommended by the Board of Directors is
subject to the approval of the Shareholders. In the event of
liquidation of the company, the holder of equity shares will be
entitled to receive 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. (a) Term Loan from State Bank of India are secured by way of First
charge on Fixed Assets of the company, movable and/or immovable, present
or future situated at Survey No.244, 245 and 247 at : Village : Sari,
Taluka : Sanand, District : Ahmedabad (Gujarat) and office situated at
401-402, "Florence" Opp.Ashram Road P.O., Ashram Road, Ahmedabad - 380
009 and Wind Mill situated at Ukhrala (Dist.Bhavnagar), Gujarat and
further said loans are also secured by personal guarantees of some of
the Directors of the Company.
(b) Corporate Loan from Union Bank of India is Secured by way of Second
Charge on Fixed Assets of the company and personal guarantees of some of
the Directors of the Company.
3. The company is contingently liable for the followings:-
(a) Bills discounted and reduced from debtors of Rs. 39.43 Lacs
(Previous Year Rs. 474.35 Lacs).
(b) Letter of credit issued by the bank of Rs. 6.48 Lacs (Previous Year
Rs. 1.79 Lacs )
(c) Bank Guarantee of Rs. 87.38 Lacs (Previous Year Rs. 87.38 Lacs )
(d) Estimated amount of contracts remaining to be executed on capital
account and not provided are Rs. 30 Lacs (Previous Year Rs.306.00 Lacs)
(e) Disputed statutory Claims/levies in respect of Service tax / Excise
for which the company has preferred appeal (including Interest and
penalty) of Rs. 11.38 Lacs (Previous Year Rs. 11.38 Lacs) and in
respect of Income Tax is Rs. 92.30 Lacs (Previous Year Rs. 0.90 Lacs).
4. As required by Accounting Standard -AS 18 "Related Parties
Disclosures" issued by the Institute of Chartered Accountants of India,
the details as identified by the Company on the basis of information
with the company, are as follows:
(A) Particulars of Associates
Name of the Related Parties Nature of Relationship
(i) Garuda Overseas. Associate Firm
(ii) Raajratna Metal Industries Ltd. * Associate Company
(iii) Raajratna Ventures Pvt. Ltd. * Associate Company
*Ceases to be Associate company after the resignation from the
Directorship by Managing Director Mr. Arvind D. Sanghvi with effect
from 13/11/2014 and accordingly transactions up to 13/11/2014 with
these associates companies have only been disclosed.
(B) Key Managerial Personnel
Name of the Related Parties Nature of Relationship
(i) Mr.A.K. Kataria Chairman
(ii) Mr.Ugamraj M. Hundia Joint Managing Director
(iii) Mr.Prakashraj S. Jain Joint Managing Director
(iv) Mr.Pukhraj S. Jain Director
(v) Mr.Chandresh V. Shah Director
(vi) Mr.Ashwin A. Kataria Director
(vii) Mr.Amol R. Dalal Director
(viii) Mr.Pawankumar R. Murarka Director
(ix) Mr. Ashish Shah Director
(x) Mr. Jitendra Mamtora Director
(xi) Ms. Nipa P. Shah (w.e.f. 30/03/2015) Additional Director
(xii) Mr. Deepak U. Hundia (Son of General Manager
Mr.Ugamraj M. Hundia)
(xiii) Mr. Romitraj P. Jain (Son of General Manager(Marketing)
Mr. Prakashraj S. Jain)
(xiv) Mr. Arvind D. Sanghvi * Managing Director
* Mr. Arvind D. Sanghvi has resigned from the post of Managing Director
and also ceases to be a Director of the Company w.e.f. 13/11/2014.
5. The Company has capitalised finance cost of Rs. 53,13,574/-(
Previous Year Rs. 60,56,471/- ). Out of which expenditure of Rs.
10,66,461/- has been allocated towards Building and Plant & Machinery
and Balance Expenditure of Rs. 42,47,113/- has been included in capital
work in progress.
6. (a) In the opinion of the Board of Directors,the current
assets,loans and advances are approximately of the value stated,if
realised in the ordinary course of the business. There is no contingent
liabilty other than stated above and provisions for all known
liabilities are adequate. Some of accounts of trade payables, trade
receivables, loans & advances including squared up accounts and
unsecured loan are subject to confirmation from the respective parties
and necessary adjustments and/ or proper classification thereof, if any
,will be made on its reconciliation and/or settlement. The
classification / grouping of items of the accounts are made by the
management, on the basis of the available data with the company and
which has been relied upon by the auditors.
(b) Trade Receivables include receivables of Rs. 291.27 Lacs (Previous
Year - Rs. Nil) which are outstanding since long and management is of
the view that the same is fully recoverable and therefore these are
treated as good and no provision for it has been made.
7. The previous year figures have been regrouped / reclassified,
wherever necessary to conform to the current year presentation.
|