Notes to Accounts of Rama Petrochemicals Ltd.

Mar 31, 2025

18. Provisions :

A provision is recognized when the company has a present obligation as a result of past events and it is probable
that there will be an outflow of resources to settle the obligation, in respect of which a reliable estimate can be
made. Provisions are not discounted to its present value and are determined based on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect
the current best estimates.

19. Contingent Liabilities :

Contingent liabilities, if any are disclosed in the notes on accounts. Provision is made in the accounts in respect of
those contingencies which are likely to materialize into liabilities after the year end till the approval of the
accounts by the board of directors and which have material effect on the position stated in the balance sheet.

b Terms/rights attached to the equity shares

Details of the rights, preferences and restrictions attaching to each class of shares including restrictions on the
distribution of dividends and the repayment of capital.

Equity Shares : The Company has only one class of Equity shares having a par value of Rs.10/-. Each holder of
equity shares is entitled to one vote per share. Dividend is payable in the proportion to the Capital Paid up. 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.

Equity Share Warrants : During the Financial year, company has allotted 49,50,950 Equity Share Warrants
by way of Preferential issue on private placement basis @ Rs.2.50 per warrant (Being 25% of the issue price
per warrant). Each warrant is convertible into one equity share of face value of Rs.10/- each on payment of
warrant exercise price of Rs.7.50 per warrant. The warrant holders shall be entitled to exercise their option to
convert any or all of the warrants into equity shares of the company in one or more trenches within 18 months
from the date of allotment. During the year 12,54,750 no of warrants are converted into Equity shares on
exercise of the option by the warrant holders.

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 (unfunded).

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 government security 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.

Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Company has to manage
pay-out based on pay as you go basis from own funds.

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.

Characteristics of defined benefit plans

The Company has considered the ceiling limit for payment of gratuity as per the provision of payment of Gratuity Act,
1972.

Note 31

Segment Reporting IND AS-108 :

Segment wise details, as required by IND AS-108 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.

b. 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 management 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 identified, measured and managed in accordance with the Company''s
policies and risk objectives.

c. 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 receivable

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each
customer. No impairment is observed on the carrying value of trade receivables.

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.

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.

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 optimizing the return.

Currency Risk

Currency risk is not material, as the Company''s primary business activities are within India and does not
have any exposure in foreign currency.

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 risk of changes in market interest
rate is not material as the Company is having fixed rate borrowings.

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.

The Company has discontinued its methanol manufacturing activities and taken up trading activity as its
major business operation. The Trading activity is being done with sole objective of sourcing its material at
cheaper rate and selling the same with margin. In view thereof, the Management do not foresee any risk in
this trading activity since our sale price is adequately insulated with profit margin at decent level. The
sourcing price may vary depending on the prevailing market price though the same formula is applicable
to the company while selling of the said product. Hence Company''s exposure to risk of changes in market
value of the commodity is not material

Note 35

Capital Management

The Company manages its capital to ensure that it will be able to continue as going concern 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 requirements 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 ofthe Company.

The company''s net debt to equity ratio is as follows:

Note 36

There are no Investments in, outstanding balances and transactions with companies struck off under section 248 of the
Companies Act, 2013.

Note 37

Previous year figures have been regrouped / rearranged wherever necessary to make them comparable.

As per our report of even date attached For and on behalf of the Board of Directors

For Khandelwal & Mehta LLP
Chartered Accountants

(Firm Registration No. W100084)

S. L. Khandelwal S. V. Karia H.D. Ramsinghani Renu Jain

Partner Director Managing Director & CFO Company Secretary

M No. 101388 DIN : 00649135 DIN : 00035416

Place : Mumbai Place : Mumbai

Date : May 27, 2025 Date : May 27, 2025

UDIN : 25101388BMNVNU3421

---

Mar 31, 2024

18. Provisions :

A provision is recognized when the company has a present obligation as a result of past events and it is probable
that there will be an outflow of resources to settle the obligation, in respect of which a reliable estimate can be
made. Provisions are not discounted to its present value and are determined based on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect
the current best estimates.

19. Contingent Liabilities :

Contingent liabilities, if any are disclosed in the notes on accounts. Provision is made in the accounts in respect of
those contingencies which are likely to materialize into liabilities after the year end till the approval of the
accounts by the board of directors and which have material effect on the position stated in the balance sheet.

Note 27

Contingent Liabilities :

Guarantees given to Government body '' NIL (Previous Year '' 500 thousands) The guarantee has been cancelled and
the margin money has been refunded by bank in the month ofApr''2024.

Note 28

At present the company is engaged in Trading activities, hence continues to prepare accounts on the basis of “Going
Concern Concept”.

Note 29

The company had a liability of '' 312,333 thousands in respect of sales tax deferral scheme of Government of
Maharashtra. The company had paid '' 154,360 thousand. During the year the company has received Orders of
Settlement for waiver of Sales Tax liability of '' 12,603 thousands and hence the liability towards the same has been
reversed as "Exceptional Item".

Note 30

Employee Benefits
Defined Contribution Plan

Provident Fund

Superannuation fund and Pension scheme, 1995

The company has recognized the following amounts in the statement of Profit and Loss which are included under
Contribution to Provident and other funds :

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 (unfunded).

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 government security 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.

Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Company has to manage
pay-out based on pay as you go basis from own funds.

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.

Characteristics of defined benefit plans

The Company has considered the ceiling limit for payment of gratuity as per the provision of payment of Gratuity Act,
1972.

Note 31

Segment Reporting IND AS-108 :

Segment wise details, as required by IND AS-108 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.

b. 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 management 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 identified, measured and managed in accordance with the Company''s
policies and risk objectives.
c. 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 receivable

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each
customer. No impairment is observed on the carrying value of trade receivables.

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.

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 optimizing the return.

Currency Risk

Currency risk is not material, as the Company''s primary business activities are within India and does not
have any exposure in foreign currency.

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 risk of changes in market interest
rate is not material as the Company is having fixed rate borrowings.

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

The Company has discontinued its methanol manufacturing activities and taken up trading activity as its
major business operation. The Trading activity is being done with sole objective of sourcing its material at
cheaper rate and selling the same with margin. In view thereof, the Management do not foresee any risk in
this trading activity since our sale price is adequately insulated with profit margin at decent level. The
sourcing price may vary depending on the prevailing market price though the same formula is applicable
to the company while selling of the said product. Hence Company''s exposure to risk of changes in market
value of the commodity is not material

Note 35

Capital Management

The Company manages its capital to ensure that it will be able to continue as going concern 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 requirements 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.

Changes in Financial Statement

a. During the year, the company has reassessed the classification of “Fixed Assets” in previous years Financial
Statements, where they were wholly categorized as “Non-Current Assets held for Sale/disposal”.

b. As required by Para 42 of IND AS 8 “Accounting policies, changes in accounting estimates and errors” the
company has reinstated its profit and loss account for the previous years, giving effect in previous year reflecting
the necessary adjustments and has also reinstated its opening retained earnings as of 01/04/2022.

Due to above reinstatement

a. Loss of F.Y. 2022-23 has been increased by Rs.94 thousand on account of depreciation and corresponding
changes Property, Plant and Equipment.

b. Retained earnings as at 01/04/2022 has been decreased by Rs. 186 thousand and Property, Plant & Equipment has
been increased by Rs. 2,621 thousand and Assets held for disposal decreased by Rs. 2,807 thousand.

Note 37

There are no Investments in, outstanding balances and transactions with companies struck off under section 248 of the
Companies Act, 2013.

Note 38

Previous year figures have been regrouped / rearranged wherever necessary to make them comparable.

As per our report of even date attached For and on behalf of the Board of Directors

For Khandelwal & Mehta LLP
Chartered Accountants

(Firm Registration No. W100084)

S. L. Khandelwal P.K. Banerjee H.D. Ramsinghani Renu Jain

Partner Director Managing Director & CFO Company Secretary

M No. 101388 DIN : 06757803 DIN : 00035416

Place : Mumbai Place : Mumbai

Date : May 29, 2024 Date : May 29, 2024

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Mar 31, 2015

1.Equity Shares : The company has issued only one class of Equity shares having a par value of Rs. 10/- each. Each holder of equity shares is entitled to one vote per share. Dividend is payable in the proportion to the Capital Paid Up. In the event of liquidation of the company,the holder 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.

2. The Company had a liability of Rs. 312,333,405/- payable from 30th April 2001 to 30th April 2014 to Sales Tax Department of Government of Maharashtra in respect of sales tax deferral scheme for its Methanol division. The Company had assigned the said liability to subsidiary during the year 1999 - 2001. The subsidiary had paid Rs. 1,989,265/- upto 31st March 2015 out of Rs. 312,333,405/- due upto 31st March 2015. Since the subsidiary has not made further payment to sales tax department same is accounted as sales tax deferral dues. Since recovery of Rs. 308,644,140/- from subsidiary is doubtful, the same has been provided for in the books of accounts.

3. Based on the information available with the company, one party has been identified as MSME as defined under "Micro,Small and Medium Enterprises Development Act, 2006" which has claimed Rs. 14,33,622/- (Previous Year Rs. 14,33,622/-) towards supply. This liability has been disputed by the company. The party has filed a complaint against the Company, with Micro and Small Enterprises Facilitation Council. Under these circumstances interest, if any, will be accounted as and when becomes payable.

4. During the year 1998 - 99, company had imported some material and could not pay the custom duty due to financial crisis. The material was stored in Central Warehousing Corporation bonded warehouse. During the year 2012 - 13, the company came to know that the material was auctioned by the Custom Authority for non-paymant of duty. The Company is taking appropriate legal remedies for claiming the value of these materials, hence the same is disclosed as Claims Receivable.

5. Contingent Liabilities :

a. Claims against the company not acknowledged are as follows : (Amount in Rs. )

Name of the Statute 2014 - 15 2013 - 14

Income Tax 285,497,280 285,497,280

Gujarat Sales Tax 3,606,085 3,606,085

Irrigation Department 259,205,087 259,205,087

Total 548,308,452 548,308,452

The Company is in appeal for these claims.

b. Guarantees / Counter Guarantees given to Banks, Financial Institutions and other Body Corporate Rs. 909,600,000/- (Previous Year Rs. 909,680,000/-)

6. The operation of company's methanol division has been unviable and in turn forced the company to suspend its production activities since Sept.'1999. However, the company is making efforts to obtain alternative main feed stock for its methanol plant to make the operation viable. Considering the fact that laying of pipeline for supply of gas by Gas Authority of India Ltd. is completed, the company is hopeful to restart its plant soon. Accordingly the company continues to prepare accounts on the basis of "Going Concern Concept".

7. As mentioned above the company had suspended its production activities since Sept.'1999, as a result of this the company has transferred some of the employees to other Division /Group Companies w.e.f. 30th October,1999. None of the transferred employees has reported to their duties and they have approached the Industrial Court. However, Company does not expect any financial liability, apart from their service benefit, which has been provided in the books of account.

8. The company has obtained a valuation report from registered valuer in respect of its methanol division. On considering the same, the management is of the opinion that there is no loss on account of impairment of assets as per AS - 28 "Impairment of Assets" as issued by ICAI pertaining to this division.

9. Related Party Disclosure under Accounting Standard 18 (AS 18) :

A) List of related parties as identified by the management with whom transactions are taken place during the year are as under :

Sr. Relationship Related Parties No.

I Enterprises that directly or Rama Capital and Fiscal Services indirectlycontrol (through Pvt. Ltd.- 100% subsidiary company subsidiariers) or are controlled by are under common control with the reporting enterprise

II Associates, Joint Ventures of the Indo Us Investment Inc reporting entity, investing party or venture in respect of which reporting enterprise is an associate or a joint venture

III Individual owing, directly or None indirectly an interest in voting power of reporting enterprise that gives them control or significant influence over the enterprise and relative of any such individual

Sr. Relationship Related Parties No.

IV Key Management Personnel (KMP) Mr. H. D. Ramsinghani - Chairman and their relatives

Mr. D. N. Singh - Technical Director

Relatives of Chairman

Mr. D. J. Ramsinghani

Mrs. L. D. Ramsinghani

Mrs. N. H. Ramsinghani

Ms. P. D. Ramsinghani

V Enterprises over which any Rainbow Denim Ltd. person described in III and IV above is able to exercise Rama Phosphates Ltd. significant influence Rama Industries Ltd.

Rainbow Agri Industries Ltd.

Bluelagoon Investment Pvt. Ltd.

Rama Enterprises

10. Previous year figures have been regrouped / rearranged wherever necessary to make them comparable.

---

Mar 31, 2014

1. Share Capital

Details of rights,preferences and restrictions attaching to each class of shares including restrictions on the distribution of dividends and the repayment of capital.

Equity Shares : The company has issued only one class of Equity shares having a par value of Rs. 10/- each. Each holder of equity shares is entitled to one vote per share. Dividend is payable in the proportion to the Capital Paid Up. In the event of liquidation of the company,the holder 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.

2. Share Application Money

1. Share Application money is received from a promoter''s group company in accordance with the revival Scheme submitted to the B.I.F.R. and the allotment of shares pursuant thereto is subject to and shall be in accordance with the directions of the B.I.F.R.

3. Long Term Provisions

1. 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 standards :

A. Defined Contribution Plan

Provident Fund : The Company has recognised the following amount in the profit and loss account for the year.

4. Other Current Liabilities

1. Based on the information available with the company, one party has been identified as MSME as defined under "Micro,Small and Medium Enterprises Development Act, 2006" which has claimed Rs. 14,33,622/- (Previous Year Rs. 14,33,622/-) towards supply. This liability has been disputed by the company. The party has filed a complaint against the Company, with Micro and Small Enterprises Facilitation Council. Under these circumstances interest, if any, will be accounted as and when becomes payable.

5. Fixed Assets (At Cost)

1. Lease hold land is taken on lease for the period of 95 years and cost of the same is amortised over the period of lease.

2. Immovable properties of the Company is also mortagaged on first pari-passu charge basis in favour of Financial Institution and Banks to secure Term Loan sanctioned to denim division of the company. In the year 1999 - 2001, denim division of the company was demerged as Rainbow Denim Ltd.

6. Other Current Assets

1. During the year 1998 - 99, company had imported some material and could not pay the custom duty due to financial crisis. The material was stored in Central Warehousing Corporation bonded warehouse. During the year 2012 - 13, the company came to know that the material was auctioned by the Custom Authority for non-paymant of duty. The Company is taking appropriate legal remedies for claiming the value of these materials, hence the same is disclosed as Claims Receivable.

7. Contingent Liabilities

a. Claims against the company not acknowledged are as follows

(Amount in Rs.)

Name of the Statute 2013-14 2012-13

Income Tax 28,54,97,280 16,71,85,892

Gujarat Sales Tax 36,06,085 36,06,085

Irrigation Department 25,92,05,087 25,92,05,087

Total 54,83,08,452 42,99,97,064

The Company is in appeal for these claims.

b. Guarantees/Counter Guarantees given to Banks, Financial Institutions and other Body Corporate Rs. 90,96,80,000/- (Previous Year Rs. 98,46,70,906/-).

c. Sales Tax Liability of Rs. 31,03,44,140/- (Previous Year Rs. 31,03,44,140/-).

Interest Free Sales Tax Deferment : The Company had a liability of Rs. 31,23,33,405/- (Previous Year Rs. 31,23,33,405/-) payable from 30th April 2001 to 30th April 2014 to Sales Tax Department of Government of Maharashtra in respect of sales tax deferral scheme for its Methanol division. The Company has assigned the said liability to another company during the year 1999 - 2001. The assignee company has paid Rs. 19,89,265/- (Previous Year Rs. 19,89,265/-) upto 31st March, 2014 out of Rs. 31,19,19,527/- (Previous Year Rs. 30,84,96,760/-) due upto 31st March, 2014. Since the assignee company has failed in paying the sales tax dues, the assignor may be responsible to pay the same and hence this has been disclosed as contingent liability. The company is registered under BIFR.

d. Capital commitments Rs. Nil (Previous Year Rs. 18,83,435/-).

8. The company has not provided for

a. Custom duty (net of provision) of Rs. 4,32,740/- (Previous Year Rs. 4,32,740/-) and interest on custom duty aggregating to Rs.1,81,51,909/- (Previous Year Rs. 1,69,65,361/-) till March 31, 2014.

b. Interest on late payment of custom duty Rs. 19,62,185/- (Previous Year Rs. 19,62,185/-)

9. The operation of company''s methanol division has been unviable and in turn forced the company to suspend its production activities since Sept.''1999. However, the company is making efforts to obtain alternative main feed stock for its methanol plant to make the operation viable. Considering the fact that laying of pipeline for supply of gas by Gas Authority of India Ltd. is completed, the company is hopeful to restart its plant soon. Accordingly the company continues to prepare accounts on the basis of "Going Concern Concept".

10. As mentioned above the company had suspended its production activities since Sept.''1999, as a result of this the company has transferred some of the employees to other Division /Group Companies w.e.f. 30th October,1999. None of the transferred employees has reported to their duties and they have approached the Industrial Court. However, Company does not expect any financial liability, apart from their service benefit, which has been provided in the books of account.

11. The company has obtained a valuation report from registered valuer in respect of its methanol division. On considering the same, the management is of the opinion that there is no loss on account of impairment of assets as per AS - 28 "Impairment of Assets" as issued by ICAI pertaining to this division.

12. Segment Reporting

The company has the following primary segments during the year

1. Methanol

2. Construction

3. Trading Goods

13. Previous year figures have been regrouped/rearranged wherever necessary to make them comparable.

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Mar 31, 2013

1.1 Bank of Baroda has assigned and transferred to International Asset Reconstruction Company Pvt. Ltd. (IARC) the outstanding loan together with all underlying security, interest thereto and all Bank of Baroda''s rights, title and interest in all agreements, deeds, documents in relation to or in connection with the facilities. However, during the year the Company has fnalized One Time Settlement (OTS) with IARC and payment in terms of this OTS have been effected. Consequent to above, the company has taken credit of waiver of interest amounting to Rs. 6,026,832 and which have been treated as Extra – Ordinary Items in the proft and loss account.

NOTE 2

Contingent Liabilities :

a. The claims not acknowledged by the Company are as follows :

(Amount in Rs. )

Name of the Statute 2012 - 13 2011 - 12

Income Tax 167,185,892 170,316,161

Excise Duty - 370,110

Gujarat Sales Tax 3,606,085 3,606,085

Irrigation Department 259,205,087 130,733,149

Total 429,997,064 305,025,505



The Company is in appeal for these claims.

b. Guarantees / Counter Guarantees given to Banks, Financial Institutions and other Body Corporate Rs. 984,670,906/- (Rs. 953,876,000/-)

c. Sales Tax Liability of Rs. 310,344,140/- (Rs. 310,344,140/-).

Interest Free Sales Tax Deferment : The Company had a liability of Rs. 312,333,405/- (Rs. 312,333,405/-) payable from 30th April 2001 to 30th April 2014 to Sales Tax Department of Government of Maharashtra in respect of sales tax deferral scheme for its Methanol division. The Company has assigned the said liability to another company during the year 1999 - 2001. The assignee company has paid Rs. 1,989,265/- (Rs. 1,989,265/-) upto 31st March 2013 out ofRs. 308,496,760/- (Rs. 300,493,466/-) due upto 31st March 2013. Since the assignee company has failed in paying the sales tax dues, the assignor is responsible to pay the same. The company is registered under BIFR and no dues have been paid to the sales tax department.

d. Capital commitments Rs. 1,883,435/- (Rs. 2,475,200/-) NOTE 24

The company has not provided for :

a. Custom duty (net of provision) ofRs. 432,740/- (Rs. 432,740/-) and interest on custom duty as per revised working aggregating to Rs. 16,965,361/- (Rs. 15,778,813/-) till March 31, 2013.

b. Interest on late payment of custom duty Rs. 1,962,185/- (Rs. 1,962,185/-)

NOTE 3

The operation of company''s methanol division has been unviable and in turn forced the company to suspend its production activities since Sept.''1999. However, the company is making efforts to obtain alternative main feed stock for its methanol plant to make the operation viable. Considering the fact that laying of pipeline for supply of gas by Gas Authority of India Ltd. (GAIL) is completed, the company is hopeful to restart its plant soon. Accordingly the company continues to prepare accounts on the basis of "Going Concern Concept".

NOTE 4

As mentioned above the company had suspended its production activities since Sept.''1999, as a result of this the company has transferred some of the employees to other Division /Group Companies w.e.f. 30th October,1999. None of the transferred employees has reported to their duties and they have approached the Industrial Court. However, Company does not expect any fnancial liability, apart from their service beneft, which has been provided in the books of account.

NOTE 5

The company has obtained a valuation report from registered valuer in respect of its methanol division. On considering the same, the management is of the opinion that there is no loss on account of impairment of assets as per AS – 28 "Impairment of Assets" as issued by ICAI pertaining to this division.

NOTE 6

Segment Reporting :

In absence of any revenue from the regular activities of the company in the segments of construction and methanol manufacturing and sales, segment wise reporting of income and expenditure has not been reported.

Other Information

NOTE 7

Related Party Disclosure under Accounting Standard 18 (AS 18) :

A) List of related parties as identifed by the management are as under :

I) Enterprises that directly or indirectly control (through subsidiaries) or are controlled by or are under common control with the reporting enterprise :

Rama Capital and Fiscal Services Pvt. Ltd. - 100% Subsidiary Company

II) Associates, Joint Ventures of the reporting entity, investing party or venture in respect of which reporting enterprise is an associate or a joint venture :

Indo Us Investment Inc.

III) Individual owing, directly or indirectly an interest in voting power of reporting enterprise that gives them control or signifcant infuence over the enterprise and relative of any such individual:

None

IV) Key Management Personnel (KMP) and their relatives

Mr. H. D.Ramsinghani Chairman

Mr. D.N. Singh Technical Director

Mr. D. J. Ramsinghani Relative of Chairman

Mrs. N.H.Ramsinghani Relative of Chairman

V) Enterprises over which any person described in III and IV above is able to exercise signifcant infuence and with whom transactions have taken place during the year.

Rainbow Denim Ltd. Rama Phosphates Ltd. Rama Industries Ltd. Rainbow Agri Industries Ltd. Rama Enterprises

NOTE 8

Previous year fgures are given in brackets and have been regrouped / rearranged wherever necessary to make them comparable.

---

Mar 31, 2012

1.1 Share Application money is received from a promoter's group company in accordance with the revival Scheme submitted to the B.I.F.R. and the allotment of shares pursuant thereto is subject to and shall be in accordance with the directions of the said B.I.F.R.

2.1 Working Capital Loans are secured by hypothecation of raw materials, stock-in-process, finished goods, stores and spares and book debts and by way of second parri passu charge on fixed assets at Patalganga and personal guarantee of a erstwhile director,

2.2 Bank of Baroda has assigned and transferred to International Asset Reconstruction Company Pvt. Ltd. (IARC) the outstanding loan with all underlying security, interest thereto and all Bank of Baroda's rights, title and interest in all agreements, deeds, documents in relation to or in connection with the facilities. However, during the year the Company has finalized One Time Settlement (OTS) with IARC and payment in terms of this OTS have been effected. Consequent to above, the company has taken credit of waiver of interest amounting to Rs. 6,027 thousand and which has been treated as Extra - Ordinary Items in the profit and loss account. (Refer Note 23.1)

3.1 In the absence of information from suppliers of their status as defined under "Micro, Small and Medium Enterprises Development Act, 2006" amount overdue and interest payable thereon, if any, cannot be quantified.

4.1 a No remuneration is paid to Whole Time ( Technical) Director during the year under review u/s 198 of the Companies Act, 1956.

b No commission is payable to Directors hence computation of net profit u/s 349 of the Companies Act, 1956 is not applicable

5.1 Bank of Baroda has assigned and transferred to International Asset Reconstruction Company Pvt. Ltd. (IARC) the outstanding loan together with all underlying security, interest thereto and all Bank of Baroda's rights, title and interest in all agreements, deeds, documents in relation to or in connection with the facilities. However, during the year the Company has finalized One Time Settlement (OTS) with IARC and payment in terms of this OTS have been effected. Consequent to above, the company has taken credit of waiver of interest amounting to Rs. 6,027 thousand and which have been treated as Extra - Ordinary Items in the profit and loss account.(Refer Note 6.2)

Note 6

Contingent Liabilities :

a. The claims not acknowledged by the Company are as follows :

(Rs. in Thousand)

Name of the Statute 2011 - 12 2010 - 11

Income Tax 1,70,316 1,72,402

Excise Duty 370 436

Gujarat Sales Tax 3,606 3,606

Irrigation Department 1,30,733 -

Total 3,05,0251 1,76,444

The Company is in appeal for these claims.

b. Guarantees / Counter Guarantees given to Banks, Financial Institutions and other Body Corporate Rs. 9,53,876 thousand (Rs. 9,53,876 thousand)

c. Sales Tax Liability of Rs. 3,10,344 thousand(Rs. 3,10,344 thousand).

Interest Free Sales Tax Deferment :

The Company had a liability of Rs. 3,12,333 thousand (Rs. 3,12,333 thousand) payable from 30th April 2001 to 30th April 2014 to Sales Tax Department of Government of Maharashtra in respect of sales tax deferral scheme for its Methanol division. The Company has assigned the said liability to another company during the

year 1999 - 2001. The assignee company has paid Rs. 1,989 thousand (Rs. 1,989 thousand) upto 31st March 2012 out of Rs. 3,00,493 thousand (Rs. 2,85,496 thousand) due upto 31st March 2012. Since the assignee company has failed in paying the sales tax dues, the assignor is responsible to pay the same. The company is registered under BIFR and no dues have been paid to the sales tax department.

d. Capital commitments Rs. 2,475 thousand (Rs. 15,590 thousand)

Note 7

The company has not provided for :

a) Custom duty of Rs. 433 thousand (Rs. 433 thousand ) and interest on custom duty as per revised working aggregating to Rs. 15,779 thousand (Rs. 14,592 thousand) till March 31, 2012.

b) Interest on late payment of custom duty Rs. 1,962 thousand. (Rs. 1,962 thousand )

Note 8

The operation of company's methanol division has been unviable and in turn forced the company to suspend its production activities since Sept.'1999. However, the company is making efforts to obtain alternative main feed stock for its methanol plant to make the operation viable. Considering the fact that laying of pipeline for supply of gas by Gas Authority of India Ltd. (GAIL) is completed, the company is hopeful to restart its plant soon. Accordingly the company continues to prepare accounts on the basis of "Going Concern Concept".

Note 9

As mentioned above the company had suspended its production activities since Sept.'1999, as a result of this the company has transferred some of the employees to other Division /Group Companies w.e.f. 30th October,1999. None of the transferred employees has reported to their duties and they have approached the Industrial Court. However, Company does not expect any financial liability, apart from their service benefit, which has been provided in the books of account.

Note 10

The company has obtained a valuation report from registered valuer in respect of its methanol division. On considering the same, the management is of the opinion that there is no loss on account of impairment of assets as per AS - 28 "Impairment of Assets" as issued by ICAI pertaining to this division.

Note 11

Segment Reporting:

In absence of any revenue from the regular activities of the company in the segments of construction and methanol manufacturing and sales, segment wise reporting of income and expenditure has not been reported.

Other Information

Note 12

Related Party Disclosure under Accounting Standard 18 (AS 18) :

A) List of related parties as identified by the management are as under :

I) Enterprises that directly or indirectly control (through subsidiaries) or are controlled by or are under common control with the reporting enterprise :

Rama Capital and Fiscal Services Pvt. Ltd.

II) Associates, Joint Ventures of the reporting entity, investing party or venture in respect of which reporting enterprise is an associate or a joint venture :

Indo Us Investment Inc.

III) Individual owing, directly or indirectly an interest in voting power of reporting enterprise that gives them control or significant influence over the enterprise,and relative of any such individual :

None

IV) Key Management Personnel (KMP) and their relatives

Mr. H. D.Ramsinghani Chairman

Mr. D.N. Singh Technical Director

Mr. D. J. Ramsinghani Relative of Chairman

Mrs. Lajwanti D Ramsinghani Relative of Chairman

Mrs. Nilanjana H Ramsinghani Relative of Chairman

Ms. Pooja D. Ramsinghani Relative of Chairman

V) Enterprises over which any person described in III and IV is able to exercise significant influence : Rama Phosphates Ltd.

Rainbow Denim Ltd.

Rama Industries Ltd.

Rainbow Agri Industries Ltd.

Nova Gelicon Pvt. Ltd.

Bluelagoon Investment Pvt. Ltd.

Jupiter Corporate Services Pvt. Ltd.

Integrated Port Services (I) Ltd.

Replica Investment and Estates Ltd.

Rama Enterprise

Note 13

Deferred Tax Liability :

In accordance with the provisions of Accounting Standard (AS22) issued by The Institute of Chartered Accountants of India pertaining to accounting of taxes on income, in view of the company not expecting any taxable profits in near future, no deferred tax asset is recognized. The details of the same are as under :

Note 14

Previous year figures are given in brackets and have been regrouped / rearranged wherever necessary to make them Comparable.

---

Mar 31, 2010

1. Contingent Liabilities:

a. Income Tax and Excise Duty claims not acknowledged by the Company Rs. 1,69,705 thousands (R.s. 25.405 thousands) The Company is in appeal for these claims.

b. Guarantees / Counter Guarantees given to Banks, Financial Institutions and other Body Corporate Rs. 953.876 thousands (Rs.1,096.876 thousands )

c. Sales Tax Liability of Rs. 310.344 thousands (Rs. 310,344 thousands) (Refer Note No. 2)

d. Capital commitments Rs. 17,075 thousands ( Rs. 22,489 thousands)

2. Interest Free Sales Tax Deferment:

The Company had a liability of Rs.312.333 thousands payable from 30lh April 2001 to 30" April 2014 to Sales Tax Department of Government of Maharashtra in respect of sales lax deferral scheme for its Methanol division. The Company has assigned the said liability to another company during the year 1999 - 2001. The assignee company has paid Rs. 1.989 thousands (Rs. 1,989 thousands) upto 3 lM March 2010 out of Rs. 264,615 thousands (Rs. 237.552 thousands) due upto 31" March 2010. Since the assignee company has failed in paying the sales lax dues, the assignor is responsible to pay the same. The company is registered under BIFR and no dues have been paid to the sales tax department.

3. During the year the Company has made provision for diminution in long term investments in its wholly owned subsidiary company. However dividend of Rs 31,500 thousands (Rs. 29,250 thousands) upto 31.03.2010 on investment in Cumulative Convertible Preference Shares of subsidiary company has not been received by the company since the subsidiary company has not paid any dividend as the net worth of the subsidiary company has been completely eroded.

4. The outstanding balances of debtors, creditors, secured loans and advances from customers, security and other deposits and balances with excise authorities are subject to confirmation and reconciliation.

5 In the absence of information from suppliers of their status as defined under "Micro, Small and Medium Enterprises Development Act, 2006", amount overdue and interest payable thereon, if any, cannot be quantified.

6. The Company is in the process of appointing a whole lime Company Secretary as required under Section 383A of the Companies Act. 1956.

7. The company has not provided for :

a. Interest of Rs. 24,233 thousands (Rs. 16,940 thousands) on working capital loans from banks till March 31,2010.

b. Interest on custom duty aggregating to Rs. 5,731 thousands (Rs. 5,042 thousands) till March 31. 2010.

8. The operation of companys methanol division has been unviable and in turn forced the company to suspend its production activities since Sept." 1999. However, the company is making efforts to obtain alternative main feed slock for its methanol plant to make the operation viable. Considering the fact that laying of pipeline for supply of gas by Gas Authority of India Ltd. (GAIL) is completed, the company is hopeful to restart its plant soon. Accordingly the company continues to prepare accounts on the basis of "Going Concern Concept".

9. As mentioned above the company had suspended its production activities since Sept. 1999. as a result of this the company has transferred some of the employees to other Division /Group Companies w.e.f. 30" October.1999. None of the transferred employees has reported to their duties and they have approached the Industrial Court. However, Company does not expect any financial liability, apart from their service benefit, which has been provided in the books of account.

10. In the absence of certainty about the applicability of the Service Tax and Maharashtra Value Added Tax on construction activities no provision has been made in the accounts for the same.

11. During the year, the company is supposed to pay capital gain tax on account of conversion of its capital asset (land) into stock in trade, which happened in the earlier year. However as the company is having a business loss for the current year, the same capital gain is knocked off towards it. Accordingly the provision for taxation on such capital gain has not been made. 12. The disclosures required under Accounting Standard 15 "Employees Benefits" are given below : A Defined Contribution Plan Provident Fund The company has recognized the following amount in the profit and loss account for the year

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority. promotion and other relevant factors such as supply and demand in the employment market.

12. The company has obtained a valuation report from registered valuer in respect of its methanol division. On considering the same, the management is of the opinion that there is no loss on account of impairment of assets as per AS - 28 "Impairment of Assets" as issued by ICAI pertaining to this division.

13. Segment Reporting:

The Company is only the primary segment which is its business segment with no secondary segment Information about Primary Business Segment:

14. Related Party Disclosure :

a. List of Related Parties and Relationships (As Certified by the Management)

Party Relation

i Rama Capital & Fiscal Services Pvt Ltd. 100% Subsidiary

ii Rainbow Denim Ltd)

Rama Phosphates Ltd> Associates

Rama Industries Ltd.

iii Indo-Us Investment Inc Holding more than 20% equity in Rama Petrochemicals Ltd.

iv Key Management Personnel

Mr H D Ramsinghani Chairman

Mr D N Singh . Technical Director

v Exercise of significant control/ influence

Bluelagoon Investment Pvt Ltd.

Relatives of Key Management

crsonnel holds more than 20%

Rama Enterprises share holding

vi Mr. D. J. Ramsinghani Relative of Key Management Person

15. Earning Per Share (EPS)

16. Deferred tax Liability

The Companys Methanol Unit is closed and company is yet to finalize the scheme of revival of the unit in consultation with operating agency appointed by B1FR. In view of this, the company is not expecting any taxable

17. a. No remuneration is paid to Whole Time Director dining the year under review u/s 198 of the Companies Act. 1956. b. No commission is payable to Directors hence computation of net profit u/s 349 of Companies Act, 1956 is not applicable.

18. Information pursuant to the provisions of paragraphs (3) and (4) of pait II of Schedule VI of the Companies Act. 1956. a. Manufactured Goods : Methanol

19. Value of Imported / Indigenous Raw Material, Stores and Spares Consumed

20. C.I.F Value of Imports :

21. Earnings in Foreign Currency :

22. Previous year figures are given in brackets and have been regrouped rearranged wherever necessary to make their comparable,