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Company Information

Home » Market » Company Information

Rama Phosphates Ltd.

Sep 13
52.35 +1.20 (+ 2.35 %)
 
VOLUME : 941
Prev. Close 51.15
Open Price 56.95
TODAY'S LOW / HIGH
49.10
 
 
 
56.95
Bid PRICE (QTY.) 0.00 (0)
Offer PRICE (Qty.) 0.00 (0)
52 WK LOW / HIGH
40.00
 
 
 
109.50
Rama Phosphates Ltd. is not traded in NSE
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Market Cap. ( ₹ ) 92.62 Cr. P/BV 0.61 Book Value ( ₹ ) 85.51
52 Week High/Low ( ₹ ) 110/40 FV/ML 10/1 P/E(X) 4.78
Bookclosure 25/09/2019 TTM EPS ( ₹ ) 11.13 Div Yield (%) 1.91
NOTES TO ACCOUNTS
You can view the entire text of Notes to accounts of the company for the latest year
Year End :2018-03 

Notes to the Financial Statements for the year ended March 31, 2018

The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the projected benefit obligation as recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years. Characteristics of defined benefit plan

The Company has a defined benefit gratuity plan in India (funded). The company's defined benefit gratuity plan is a final salary plan for employees, which requires contributions to be made to a separately administered fund.The fund is managed by a trust which is governed by the Board of Trustees. The Board of Trustees are responsible for the administration of the plan assets and for the definition of the investment strategy

Risks associated with defined benefit plan

Gratuity is a defined benefit plan and company is exposed to the Following Risks:

Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.

Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan's liability.

Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.

Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

Concentration Risk: Plan is having a concentration risk as all the assets are invested with the insurance company and a default will wipe out all the assets. Although probability of this is very less as insurance companies have to follow regulatory guidelines.

Characteristics of defined benefit plans

During the year, the company has changed the benefit scheme in line with Payment of Gratuity Act, 1972 by increasing monetary ceiling from 10 lakhs to 20 lakhs. Change in liability (if any) due to this scheme change is recognised as past service cost.

A separate trust fund is created to manage the Gratuity plan and the contributions towards the trust fund is done as guided by rule 103 of Income Tax Rules, 1962.

33 SEGMENT REPORTING :

Segment Information

(Rs In Lacs)

Particulars

Fertilizer &

Oil

Unallocable

Total

Chemicals

Segment Revenue

29,564.66

7,940.47

195.76

37,700.89

33,800.49

4,407.38

363.04

38,570.91

Segment Results

2,069.60

118.67

13.45

2,201.72

2,889.07

(307.15)

10.83

2,592.75

Interest and financial cost for the year

(719.16)

(51.81)

(3.48)

(774.45)

(745.07)

(68.37)

(18.45)

(831.89)

Net Corporate Office Expenses

-

-

(879.60)

(879.60)

-

-

(954.74)

(954.74)

Profit / (Loss) as per Statement of Profit & Loss

1,350.44

66.86

(869.63)

547.67

2,144.00

(375.52)

(962.36)

806.12

Segment Asset

25,374.97

1,917.40

624.16

27,916.53

28,154.80

1,175.27

776.65

30,106.72

(Rs In Lacs)

Particulars

Fertilizer &

Oil

Unallocable

Total

Chemicals

Segment Liabilities

10,164.55

2,545.99

1,791.39

14,501.93

13,297.62

1,988.78

1,796.81

17,083.21

Cost incurred during the year to acquire segment assets

312.49

0.15

3.68

316.32

195.42

0.00

9.02

204.44

Segment Depreciation

284.42

17.88

20.79

323.09

290. 64

22.10

25.54

338.28

Non-cash Expenses other then Depreciation

-

-

-

-

(Previous year figures are in italics)

34 CONTINGENT LIABILITY AND COMMITMENTS

a

Contingent Liabilities not provided for

For the year

For the year

ended 31.03.2018

ended 31.03.2017

i Royalty on rock phosphates.

116.09

116.09

ii Contingent liability due to reduction in brought forward losses on account of

931.57

931.57

completed assessments having a bearing on current taxable income.

iii Custom duty, Excise duty, Demurrage, Sales tax, Entry Tax and others.

416.84

468.06

iv Wages.

71.85

56.88

v Right to Recompense under Corporate Debt Restructure to lenders.

648.34

764.00

b

Claims against the company not acknowledged as debt

i Electricity duty.

43.38

43.38

ii Railway Claim.

195.18

195.18

c

Guarantees

Amount of Letters of Credit and Bank Guarantee issued by banks.

92.63

98.13

d

Commitments

Estimated Amount of Capital Contracts Pending to be executed (Net of Advances).

47.83

-

35 Related party disclosure

(i)

List of Related Parties as required by Ind AS-24 "Related Party Disclosures" are given below:

(a)

Parent

Silver Eagle Inc - From 10-11-2016

NRI Investor Inc - Upto 09-1 1-2016

(b)

Key management personnel and their relatives

Mr D. J.Ramsinghani (Chairman & Managing Director)

MrH. D. Ramsinghani (Vice Chairman & Jt Managing Director) (From 01.06.2017)

Mr J. K. Parakh (Chief Financial Officer)

Mr Kiran Jain (Company Secretary)

(c)

Non Executive/Independent Directors

Mr. Deonath Singh

Mrs. Nilanjana H. Ramsinghani

Mr. K. Raghuraman

Mr. A. K. Thakur

Mr. N. R. Joshi (from 19-05-2016)

Mr. Sunil Kumar Vohra (from 08-09-2017) Nominee Director of Bank of India)

Mr. R. K. Shrivastava (upto 07-09-20 17) Nominee Director of Bank of India)

(d)

Where persons mentioned in (b) exercise significant influence

Rama Industries Limited

Rainbow Agri Industries Limited

Rama Petrochemicals Limited

Rama Capital & Fiscal Services Pvt. Ltd.

Rama Enterprises

Nova Gelicon Private Limited

(Rs In Lacs)

(ii) Transactions with related parties

Type of related party

Description of the nature of transactions

Volume of Transactions during 2017-18

Volume of Transactions during 2016-17

Balance as on 31.03.2018 Receivable/ (Payable)

Balance as on 31.03.2017 Receivable/ (Payable)

Balance as on 01.04.2016 Receivable/ (Payable)

(a)

Parent

NRI Investors INC

Dividend paid

-

76.35

-

-

-

Silver Eagle INC

Dividend paid

100.50

0.00

-

-

-

(b)

Key management personnel and their relatives

Mr. D. J. Ramsinghani

Remuneration*

74.86

76.99

-

-

-

Mr. H. D. Ramsinghani

Remuneration*

80.00

-

-

-

-

Mr. J. K. Parakh

Remuneration*

38.49

30.41

-

-

-

Mr. Kiran Jain

Remuneration*

10.11

6.84

-

-

-

Mr. H. D. Ramsinghani

Sitting Fees Paid

0.15

0.50

-

-

-

(c)

Non Executive/Independent Directors

Mr. Deonath Singh

Sitting fees

0.60

0.65

-

-

-

Mrs. Nilanjana H. Ramsinghani

Sitting fees

0.20

0.15

-

-

-

Mr. K. Raghuraman

Sitting fees

0.55

0.60

-

-

-

Mr. A. K. Thakur

Sitting fees

0.45

0.45

-

-

-

Mr. N. R. Joshi

Sitting fees

0.05

-

-

-

-

Bank of India

Sitting fees

0.05

-

-

-

-

(d)

Where persons mentioned in (b) exercise significant influence

i)

Reimbursement of expenses received

Rainbow Agri Industries Ltd.

Sale of Finished Goods

-

7.45

-

-

-

Rama Petrochemicals Ltd.

Purchase of Goods

69.21

36.09

-

-

-

Nova Gelicon Pvt. Ltd.

Interest on Term Loan secured

0.84

0.78

-

-

-

Rama Capital & Fiscal Services Pvt. Ltd.

Interest on Loan and Advances

27.47

27.47

-

-

-

Rama Capital & Fiscal Services Pvt. Ltd.

Amount written off

27.47

27.47

-

-

-

Nova Gelicon Pvt. Ltd.

ICD taken during the period

-

15.00

-

-

-

Rainbow Agri Industries Ltd.

ICD taken during the period

150.00

-

-

-

-

Nova Gelicon Pvt. Ltd.

ICD repaid during the year

15.00

-

-

-

-

Rainbow Agri Industries Ltd.

ICD repaid during the year

750.00

-

-

-

-

Rainbow Denim Limited

ICD reed back

15.00

-

-

-

-

Nova Gelicon Pvt. Ltd.

Interest on ICD's

1.43

0.94

-

-

-

Rainbow Denim Limited

Interest on ICD's

10.01

-

-

-

-

Rainbow Agri Industries Ltd.

Interest on ICD's

5.47

-

-

-

-

Rainbow Agri Industries Ltd.

Payment to Related Party

-

2,016.58

-

-

-

(? In Lacs)

Type of related party

Description of the nature of transactions

Volume of Transactions during 2017-18

Volume of Transactions during 2016-17

Balance as on 31.03.2018 Receivable/ (Payable)

Balance as on 31.03.2017 Receivable/ (Payable)

Balance as on 01.04.2016 Receivable/ (Payable)

Rama Industries Ltd.

Payment to Related Party

246.95

37.55

-

-

-

Rama Petrochemicals Ltd.

Payment to Related Party

47.00

48.19

-

-

-

Rama Enterprises

Payment to Related Party

140.91

-

-

-

-

Rainbow Agri Industries Ltd.

Receipt from Related Parties

-

1,685.00

-

-

-

Rama Enterprises

Receipt from Related Parties

20.00

-

-

-

-

Rama Industries Ltd.

Receipt from Related Parties

-

15.00

-

-

-

Rama Industries Ltd.

Trade Payable

-

-

-

246.95

22.55

Rama Petrochemicals Ltd.

Trade Payable

-

-

10.76

-

-

Rama Petrochemicals Ltd.

Advance to Supplier

-

-

-

11.45

-

Rama Petrochemicals Ltd.

Investments

-

-

12.26

12.26

12.26

Mr. J. K. Parakh

Loans and Advances receivable

18.00

24.00

24.00

Rama Capital & Fiscal Services Pvt. Ltd .#

Loans and Advances receivable

305.27

305.27

305.27

Rama Capital & Fiscal Services Pvt. Ltd.

Provision for doubtful debts

-

-

(305.27)

(305.27)

(305.27)

Nova Gelicon Pvt. Ltd.

Term Loans payable

-

-

8.65

8.65

8.65

Nova Gelicon Pvt. Ltd.

Interest Payable

-

-

3.61

1.73

-

Nova Gelicon Pvt. Ltd.

ICD's Payable

-

-

-

15.00

-

Rainbow Agri Industries Ltd.

ICD's Payable

-

-

175.00

-

-

Rama Enterprises

Advance for asset acquisition

120.91

-

-

-

-

11)

Gaurantee given on our behalf

Mr. D. J. Ramsinghani

Gaurantee

Transaction is of non monetary consideration

111)

Security

Rama Capital & Fiscal Services Pvt. Ltd.

Security

Transaction is of non monetary consideration

* Excludes provision for compensated leave and gratuity for key managerial personnel as separate actuarial valuation is not available. Terms and conditions of transaction with related parties

The sale to related parties are made on terms equivalent to those that prevail in arm's length transactions. Outstanding balances at the year end are unsecured and settlement occurs in cash. Transactions relating to dividend were on the same terms and conditions that applied to other shareholders.

# ? 305.27 Lacs (Previous year ? 305.27 Lacs) due from a company against which provision has already been made in earlier years. To comply with the provisional of the Companies Act, 2013, during the year company has provided interest on this loan and since the principle is doubtful of recovery, the interest receivable is written off.

b)

36 FINANCIAL INSTRUMENTS-FAIR VALUE AND RISK MANAGEMENT

(Rs In Lacs)

a) Accounting classification

The carrying value of financial instruments by categories are as follows:

Particulars

31.03.2018

31.03.2017

01.04.2016

FVTOCI Amortised

FVTOCI Amortised

FVTOCI Amortised

cost

cost

cost

Financial Assets

Investments in equity instruments

11.14 0.24

10.77 0.24

28.83 0.24

Investments in Government Securities

5.72

5.72

2.60

Loans

34.73

38.66

31.10

Trade receivable

5,642.67

7,423.34

7,791.37

Cash and cash equivalents

16.51

25.10

55.62

Other bank balances

510.77

423.15

475.93

Other financial assets

7,972.07

11,466.66

11,142.02

Total

11.14 14,182.71

10.77 19,382.87

28.83 19,498.88

Financial Liabilities

Borrowings

4,673.28

5,092.76

5,341.61

Trade payables

7,481.32

9,196.40

8,685.06

Other financial liabilities

833.84

1,022.09

882.82

Total

12,988.44

15,311.25

14,909.49

Fair value hierarchy and Method of valuation

The following table shows fair value measurement hierarchy. Except for these financial instruments, the Company considers that the carrying value amount recognised in the financial statements approximate their fair value largely due to the short term maturities of these instruments.

31.03.2018

31.03.2017

01.04.2016

Level 1

Level 1

Level 1

Investments in equity instruments

11 14

1077

2883

Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments that have quoted price. The fair value of equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period.

c) Risk management framework

The Company's principal financial liabilities include borrowing, trade and other payables. The Company's principal financial assets include loans, trade receivable, cash and cash equivalents and others. The Company also holds FVTOCI investments. The Company is exposed to credit risk, liquidity risk and market risk. The Company's senior managment oversees the management of these risks. The Company's senior management provides assurance that the Company's financial risk activities are governed by appropriate policies and procedures and that financial risks are identifed, measured and managed in accordance with the Company's policies and risk objectives.

d) Financial Risk Management

The Company has exposure to the following risks arising from financial instruments: i) Credit Risk ii) Liquidity Risk iii) Market Risk

i) Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company's receivables from customers, investment in inter corporate deposit and loans given.

The carrying amount of following financial assets represents the maximum credit exposure:

Trade receivables

Trade receivables are consisting of a large number of customers. The Company has credit evaluation policy, procedures and control for each customers and based on the evaluation credit limit of each customer is defined. Outstanding customer receivables are regularly monitored.

As per simplified approach, the Company makes provision of expected credit losses on trade receivables as per the Company's policy to mitigate the risk of default payments and makes appropriate provision at each reporting date wherever outstanding is for longer period and involves higher risk.

Other financial assets

Credit risk from balances with banks, loans, investments is managed by Company's finance department. Investments of surplus funds are made only with approved counterparties. No impairment on such investment has been recognised as on the reporting date.

ii) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure as far as possible that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed condition, without incurring unacceptable losses or risking damage to the Company's reputation.

The Management monitors rolling forecasts of the Company's liquidity position on the basis of expected cash flows.The Company's objective is to maintain a balance between continuity of funding and flexibility through the use of surplus funds, bank loans and inter-corporate loans.

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. (? In Lacs)

March 31, 2018 Financial liabilities

Carrying amount

Contractual cash flows Total Within 1 year More than 5 years

Borrowings Trade payables Other Financial Liabilities Total

March 31, 2017 Financial liabilities

4,673.28 7,481.32 833.84

4,673.28 7,481.32 833.84

7,481.32 833.84

4,673.28

12,988.44

12,988.44

8,315.16

4,673.28

Carrying amount

Contractual cash flows Total Within 1 year More than 5 years

Borrowings Trade payables Other Financial Liabilities Total

April 01, 2016 Financial liabilities

5,092.76 9,196.40 1,022.09

5,092.76 9,196.40 1,022.09

9,196.40 1,022.09

5,092.76

15,311.25

15,311.25

10,218.49

5,092.76

Carrying amount

Contractual cash flows Total Within 1 year More than 5 years

Borrowings Trade payables Other Financial Liabilities Total

5,341.61 8,685.06 882.82

5,341.61 8,685.06 882.82

8,685.06 882.82

5,341.61

14,909.49

14,909.49

9,567.88

5,341.61

iii) Market Risk

Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates and commodity prices which will affect the Company's income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market exposures within acceptable parameters, while optimising the return.

Currency risk

Foreign currency risk is the risk of impact related to fair value or future cash flows of an exposure in foreign currency, which fluctuate due to changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchanges rates relates primarily to import of raw materials. When a derivative is entered for the purpose of being a hedge, the Company negotiates the terms of those derivatives to match the terms of the hedged exposure.

The Company evaluates exchange rate exposure arising from foreign currency transactions. The Company follows established risk management policies and standard operating procedures.

Amount in USD

Particulars

As at 31.03.2018

As at 31.03.2017

As at 01.04.2016

Trade and other payables

3,693,722

6,717,141

4,071,119

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's short-term borrowing. The Company constantly monitors the credit markets and rebalances its financing strategies to achieve an optimal maturity profile and financing cost. Since all the borrowings are on floating rate, no significant risk of change in interest rate.

The Company does not account for any fixed rate financial assets and liabilities at fair value through profit or loss. Therefore, a change in interest rate at the reporting date would not affect profit or loss.

Commodity price risk

Commodity price risk for the Company is mainly related to fluctuations of raw materials prices linked to various external factors, which can affect the production cost of the Company. Company actively manages inventory and in many cases sale prices are linked to major raw material prices. To manage this risk, the Company enters into long-term supply agreement for Raw Material, identifying new sources etc. Additionally, processes and policies related to such risks are reviewed and managed by senior management on continuous basis.

37 CAPITAL MANAGEMENT

The Company manages its capital to ensure that it will be able to continue as going conercn while maximising the return to stakeholders through the optimisation of the debt and equity balance. The capital structure of the Company consists of net debt and the total equity of the Company. For this purpose, net debt is defined as total borrowings less cash and cash equivalents.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The funding requirments are met through short-term/long-term borrowings. The Company monitors the capital structure on the basis of total debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

The Company's net debt to equity ratio is as follows: (Rs. In Lacs)

31.03.2018

31.03.2017

01.04.2016

Borrowing

4,685.34

5,149.01

5,412.64

Cash & cash equivalents

(16.51)

(25.10)

(55.62)

Net Debt

4,668.83

5,123.91

5,357.02

Total equity Debt/Equity ratio

13,414.60 0.35

13,023.51 0.39

12,387.75 0.43

38 Earnings per share - EPS is calculated by dividing the profit / (loss) attributable to the equity share holders by weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit / (loss) for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year is adjusted for the effects of all dilutive potential equity shares, except when the results would be anti-dilutive.

Particulars

2017-18

2016-17

1

Profit after tax -? in Lacs

539.16

850.13

2

Weighted average number of shares outstanding during the year

17,693,213

17,693,213

3

Face value of shares - in ?

10

10

4

Basic / Diluted EPS - in ?

3.05

4.80

39

(i) The Board of Directors have recommended dividend of? 1.00 per fully paid up equity share of ?10/- each, aggregating Rs 213.30 Lacs, including Rs 36.37 Lacs dividend distribution tax for the financial year 2017-18, which is based on relevant share capital as on 31 st March, 2018. The actual dividend amount will be dependent on the relevant share capital outstanding as on the record date / book closure.

(ii) Previous year's figures have been reclassified, wherever necessary, to conform current year's presentation.

As per our report of even date attached

For and on behalf of the Board

For Khandelwal & Mehta LLP

J. K. Parakh

H. D. Ramsinghani

Chartered Accountants

Chief Financial Officer

Chairman and Managing Director

Firm's Registration No. W100084

DIN : 00035416

S. L Khandelwal

Pritesh Jhaveri

D.N. Singh

(Partner)

Company Secretary

Independent Director

Membership No. 101388

DIN : 00021741

Place : Mumbai

Date: 26th May, 20 18