Rajratan Global Wire Ltd.
You can view the entire text of Notes to accounts of the company for the latest year
ISIN No INE451D01011 52Wk High (Rs.) 1020 BV (Rs.) 254.91 FV (Rs.) 10.00
Bookclosure 21/07/2018 52Wk Low (Rs.) 467 EPS (Rs.) 39.36 P/E (X) 20.45
Mkt Cap. (Rs. Cr.) 350.32 P/BV (X) 3.16 Div Yield (%) 0.19 Mkt Lot 1
2017-03

1. The company has only one class of shares having a par value of Rs. 10/- per share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval by the shareholders of the company in the ensuing Annual General Meeting. In the event of liquidation of the company, the holders 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. During the year ended 31st March, 2017, the amount of per share dividend proposed as distributions to equity share holders is Rs. 1.5 per Share (Previous Year Rs. 1.2 per Share). The total dividend proposed for the year ended March 31, 2017 amounts to Rs. 6,527,700/- including Corporate Dividend Distribution Tax of Rs.1,328,886 /-(Previous Year Rs. 6,285,287/-) including Corporate Dividend Distribution Tax Rs. 1,063,085/-) [Refer note 34(b) regarding change in Accounting Policies].

2. SECURITY:

3. Term loans outstanding Rs. 129,000,000/- (Rs. 82,000,000/- classified as Non-Current and Rs. 47,000,000/- classified as Current Liability) (Previous year Rs. 138,000,000/-) are secured by way of an equitable mortgage of immovable properties with State Bank of India, Indore ranking pari passu amongst the lenders and by a first charge by way of hypothecation of all the company's movable machinery, present and future, subject to prior charges created in favour of Company's Bankers on the stock of raw materials, goods in process, finished and manufactured goods and Book Debts towards security for working capital facilities. Term loans are also secured by personal guarantee of the Managing Director.

4. M/s Cee Cee Engineering Industries Pvt. Ltd. (Subsidiary Company) has also provided collateral security by way of first charge on the entire fixed assets of (by way of equitable mortgage of leased land (lease agreement dated 17.10.1997 with MP Audoyogik Vikas Nigam) & building & hypothecation of other fixed assets) (both present & future) situated at the company's premises at Plot No. 199, Sector-1, Pithampur Industrial area, District-Dhar (MP) and /or any other places.

5. Security: A. Loans repayable on demand from State Bank of India, Indore and IDBI Bank Ltd., Indore are Working Capital Loans and are secured by hypothecation of company’s stock and book debts, present & future and by a second charge on all the immovable properties of the company and plant and machinery, machinery spares, tools and accessories and other movables both present and future. Such advances are also secured by personal guarantees of the Managing Director.

6. M/s Cee Cee Engineering Industries Pvt. Ltd. (Subsidiary Company) has also provided collateral security by way of first charge on the entire fixed assets of (by way of equitable mortgage of leased land (lease agreement dated 17.10.1997 with MP Audoyogik Vikas Nigam) & building & hypothecation of other fixed assets) (both present & future) situated at the company's premises at Plot No. 199, Sector-1, Pithampur Industrial area, District-Dhar (MP) and/or any other places. For Credit facilities sanctioned by State Bank of India.

7. Details of expenses on Corporate Social Responsibility

The Company has incurred a sum of Rs. 1,253,472/- on expenses related to Corporate Social Responsibility. However the Company has not spent the total amount of Rs.. 2,304,846 /- being 2% of average Profit of last three year. Therefore there is a shortfall of Rs. 1,051,374/- for the year to be spent on CSR activities. The total shortfall as on Balance Sheet date is Rs. 3,833,784/-. The Management is in the process of identifying projects that can be supported by the Company.

8. Change in Accounting Policies

The Ministry of Corporate Affairs, Government of India has vide Notification No. G.S.R. 364 (E) dated 30.03.2016 amended Accounting Standard (AS-4)-“Contingencies and Events Occurring After the Balance sheet Date” and has substituted Accounting Standard (AS-10)- Equipment” in place of the existing Accounting Standard (AS-10)-“Fixed Assets”, together with consequential amendments in other Accounting Standards. These amended/substituted Accounting Standards have become mandatory for accounting periods commencing from 01.04.2016.

In view of the Revised Accounting Standards AS 10 - “Property, Plant & Equipment” and AS 4- Contingencies and Events Occurring After the Balance Sheet Date”, the Company has made following changes to its Accounting Policies;

9. AS 10- “Property, Plant & Equipment”

On the date of Accounting Standard AS-10 (Revised) becoming mandatory, the Spare Parts, which hitherto were being treated as inventory, have been capitalized in accordance with the requirement of AS-10 at their respective carrying amounts. The Spare Parts amounting to Rs. 1,366,262/- so capitalized have been depreciated over their remaining useful life prospectively. The depreciation charged on such Spare Parts is Rs. 22,909/- for the year. Due to the said change in the Accounting Policy, the Fixed Assets are overstated and the inventories are understated to that extent.

10. AS 4- Contingencies and Events Occurring After the Balance Sheet Date

No provision has been made for Dividend proposed for the year ended on 31st March, 2017 amounting to Rs. 6,527,700/including Corporate Dividend Tax of Rs. 1,328,886/- (Previous Year Rs. 6,285,287/- including Corporate Dividend Tax of Rs. 1,063,085/-). Due to the said change in the Accounting Policy, the Reserves & Surplus is overstated and the Short Term Provisions are understated to that extent.

11. In the opinion of the Board of Directors of the Company, the Current Assets, Loans and Advances have a value realizable in the ordinary course of business at least equal to the amount at which they are stated and provisions for all known liabilities are adequate and not in excess of the amount reasonably necessary.

12. In accordance with the Accounting Standard (AS) 17 “Segment Reporting” issued by The Institute of Chartered Accountants of India (ICAI) and specified u/s 133 of the Act read with Rule 7 of the Companies (Accounts) Rules, 2014 the Company has only one reportable segment “Bead Wire” for the current year.

13. In accordance with the Accounting Standard (AS)18 “Related Party Disclosures” issued by The Institute of Chartered Accountants of India (ICAI) and specified u/s 133 of the Act read with Rule 7 of the Companies (Accounts) Rules, 2014 the names of the related parties and the relevant disclosure is as under:-

14. Name of the related party and description of relationship:

15. Key Management Personnel:

16. Mr. Sunil Chordia - Managing Director

17. Mrs. Sangita Chordia - Whole Time Director

18. Relatives of Key Managerial Personnel

19. Mrs. Shantadevi Chordia Mother of Mr. Sunil Chordia

20. Mr. Yashovardhan Chordia S/o Mr. Sunil and Mrs. Sangita Chordia

21. Companies/entities under the control of Key Management personnel

22. M/s. Rajratan Resources Pvt. Ltd.,

23. M/s. Rajratan Investment Ltd.,

24. Subsidiary

25. M/s. Rajratan Thai Wire Company Ltd., Thailand

26 M/s. Swaraj Technocraft Pvt. Ltd.

27. M/s. Cee Cee Engineering Pvt. Ltd. (wef. 16.08.2016)

*Out of the unsecured inter corporate loan of Rs. 14.05 Crores given during the year to various parties the outstanding balance as on 31.03.2017 is 0.89 Crore.

# The opening amount of corporate guarantee given in favour of wholly owned subsidiary as on 01.04.2016 was USD 10.70 Million, however the same was reduced to USD 8.30 Million during the year.

28. The Central Government has made amendments to Schedule III to the Companies Act vide circular No. F.No. 17/62/2015-CL-V(Vol.I)-G.S.R. 308 (E)-Dated 30-03-2017 regarding the disclosure to be made about the Specified Bank Notes (SBN) held and Transacted during the period from 8th November, 2016 to 30th December, 2016. The details of which are provided in the table below:-

29. Previous Year’s figures have been regrouped and recast wherever considered necessary to make them comparable with the current year’s figures.