ROLEX LANOLIN PRODUCTS LIMITED

Notes to the Consolidated Financial Statements

Note Consolidated with Subsidiaries

Note As At
No. Particulars 31.03.2019 As At 31.03.2018
1 SHARE CAPITAL
Authorised Capital
3,990,000 Equity Shares of Rs. 10 /- each 4,99,00,000 4,99,00,000
10,000 8% Non-Cumulative Reedembale 1,00,000 1,00,000
Pref.Shares of Rs.10/- each.

TOTAL 5,00,00,000 5,00,00,000

Issued, Subscribed and Paid Up
5,40,000 Equity Shares of Rs. 10/- each fully paid
up. 54,00,000 54,00,000
In the Period of five years immediately preceding 31st
March, 2016
The Company has alloted 4,50,000 fully paid - up equity
shares during the previous year pursuant to a bonus share
issue approved by the shareholders in the last General
Meeting.

TOTAL 54,00,000 54,00,000

2 Reserves and Surplus

a) Surplus
As per last account 4,80,56,385 4,43,97,302
Add: Net Profit For the year (67,48,129) 36,59,083
4,13,08,256 4,80,56,385

b)Investment Allowance Reserve

As per last account 18,299 18,299
TOTAL 4,13,26,555 4,80,74,684

3 Long Term Borrowings

i) Secured
Term loan from bank 3,32,24,107 3,73,35,876
ii) Unsecured
Loans from Directors & Relatives 2,59,43,384 2,50,95,953

TOTAL (i+ii) 5,91,67,491 6,24,31,829

ROLEX LANOLIN PRODUCTS LIMITED
Notes to the Consolidated Financial Statements

Note Consolidated with Subsidiaries

Note As At
No. Particulars 31.03.2019 As At 31.03.2018

4 Deferred Tax Liabilities (Net)

Deferred Tax Liability on account of :
Deferred Tax Liabilities (NET) 10,09,701 33,03,093
10,09,701 33,03,093

5 Long Term Liabilities

Others
Capital Creditors 4,92,593 7,47,450
Deposit 5,40,000 5,40,000
10,32,593 12,87,450

6 Short Term Borrowings

A. Secured
Working Capital loan from banks 4,90,82,166 3,78,85,279
B. Unsecured
Loans & Advances from From Related Parties 47,740 47,740
4,91,29,906 3,79,33,019

7 Other current Liabilities

i)Current maturities of long term debt 63,60,000 63,60,000
ii)Other Payables -
-Statutory Dues 13,30,933 18,18,332
-Advance received from customers 1,45,701 73,894
iii) Provision For Tax - 4,99,497
TOTAL 78,36,633 87,51,723

9 Long Term loans & advances

i)Security deposit 6,35,355 6,35,355
(Unsecured, considered good)
ii) Other Loans & advance 45,26,309 1,58,24,684

TOTAL 51,61,664 1,64,60,039

10 Inventories
i)Raw Materials 1,84,80,483 39,36,266
ii) Finished Goods 1,17,41,625 1,70,41,313
iii) Stock in Trade 15,88,224 67,64,606
TOTAL 3,18,10,332 2,77,42,185
ROLEX LANOLIN PRODUCTS LIMITED
Notes to the Consolidated Financial Statements

Note Consolidated with Subsidiaries

Note As At
No. Particulars 31.03.2019 As At 31.03.2018

11 Trade receivables (unsecured, considered good)

More than six months from due date 8,60,640 8,76,837
Others 1,98,30,993 1,06,87,580

TOTAL 2,06,91,633 1,15,64,417

12 Cash & bank balance
I)Cash & Cash equivalent
i) Balance in current account 7,21,491 9,81,571
ii) Cash in Hand 1,19,879 86,827

TOTAL 8,41,370 10,68,398

13 Short Term loans & advance

(Unsecured, considered good)
i) Security deposit to related party 3,80,776 3,80,776
ii) MAT Credit Entitlement 12,08,406 12,08,406
iii) Other Loans & advance 1,47,146 1,96,249
iv) Advances recoverable in cash or kind
Taxes paid in advance- Net of Provision 11,69,930 14,42,408
Balance with government Authorities 86,00,352 77,16,104
Others 78,47,370 23,53,626
TOTAL 1,93,53,980 1,32,97,569
 Note 8: FIXED ASSETS - TANGIBLE AND INTANGIBLE
GROSS BLOCK-COST/BOOK VALUE DEPRECIATION/AMORTIZATION NET BLOCK

Deductions/ Deductions/ Transfer

Additions Adjustments Provided Adjustments to
Total as on during the during the Total as on Total as on during the during the General Total as on As on As on
Description 01.04.2018 year year 31.03.2019 01.04.2018 year year Reserve 31.03.2019 31.03.2019 31.03.2018
1 Free Hold Land 39,48,094 1,19,07,375 - 1,58,55,469 - - - - - 1,58,55,469 39,48,094

2 Buildings
-Factory 8,43,86,429 3,92,981 - 8,47,79,410 1,19,35,742 26,29,244 - - 1,45,64,986 7,02,14,424 7,24,50,687

3 Plant & Machinery 3,48,21,209 2,89,134 23,98,179 3,27,12,164 88,70,837 13,41,637 4,55,654 - 97,56,819 2,29,55,345 2,59,50,372

4 Electrical Installation 84,82,056 - - 84,82,056 21,44,288 8,05,950 - - 29,50,238 55,31,818 63,37,768

5 Furniture & Fittings 72,31,058 1,88,334 - 74,19,392 51,03,115 3,95,753 - - 54,98,868 19,20,524 21,27,943

6 Vehicles 45,98,408 - - 45,98,408 36,18,634 2,62,559 - - 38,81,194 7,17,214 9,79,774

7 Office Equipments 44,50,717 98,391 - 45,49,108 35,82,489 3,41,039 - - 39,23,529 6,25,579 8,68,228

8 Laboratory Equipment 3,78,880 - - 3,78,880 1,11,985 36,077 - - 1,48,062 2,30,818 2,66,895

9 Computers 41,16,453 48,100 - 41,64,553 39,51,632 84,824 - - 40,36,456 1,28,097 1,64,821

10 Road 7,50,607 - - 7,50,607 7,13,075 - - 7,13,075 37,532 37,532

-
11 Capital Work in Progress - - - - - - -
-
TOTAL 15,31,63,911 1,29,24,315 23,98,179 16,36,90,047 4,00,31,797 58,97,083 4,55,654 - 4,54,73,226 11,82,16,821 11,31,32,114
Previous Year 15,21,53,039 21,87,637 11,76,765 15,31,63,911 3,25,71,703 74,60,094 - - 4,00,31,797 11,31,32,114 11,95,81,336

GROSS BLOCK-COST/BOOK VALUE DEPRECIATION/AMORTIZATION NET BLOCK

Deductions/ Deductions/ Transfer

Additions Adjustments Provided Adjustment to
Sr. Total as on during the during the Total as on Total as on during the s during the General Total as on As on As on
No. Description 01.04.2018 year year 31.03.2019 01.04.2018 year year Reserve 31.03.2019 31.03.2019 31.03.2018
1 Goodwill 26,00,000 - - 26,00,000 - - - - - 26,00,000 26,00,000
TOTAL 26,00,000 - - 26,00,000 - - - - - 26,00,000 26,00,000
Previous Year 26,00,000 - - 26,00,000 - - - - - 26,00,000 26,00,000
 ROLEX LANOLIN PRODUCTS LIMITED
Notes to the Consolidated Financial Statements

Note For the year ended For the year ended

no PARTICULARS 31.03.2019 31.03.2018
14 Revenue from Operations
Sale of Products
Local Sales 11,30,67,695 9,56,58,229
Export Sales 2,65,91,447 4,17,34,210
13,96,59,142 13,73,92,439
Sale of services 6,09,748 -
TOTAL 14,02,68,890 13,73,92,439

15 Other Income
Foreign exchange gain/(Loss) 3,75,065 9,07,942
Interest 1,98,219 5,40,479
Rent 26,22,000 18,55,000
Sale of Scrap 4,62,671 -
Write off/ Write back - 6,93,313
Dividend Received 695
TOTAL 36,58,650 39,96,734

16 Cost of material consumed

Opening Stock 39,36,266 66,01,710
Add: Purchases 10,86,32,226 9,22,66,348
11,25,68,492 9,88,68,058
Less: Closing Stock 1,84,80,483 39,36,266
TOTAL 9,40,88,009 9,49,31,792

17 Changes in Inventories
Opening Stock:
Work in Progress 16,09,900
Finished goods 1,70,41,313 95,81,485
Traded goods - 41,253
Stock in Transit 67,64,606
2,38,05,919 1,12,32,638
Closing stock:
Work in Progress -
Finished goods 1,17,41,625 1,70,41,313
Traded goods
Stock in Transit 67,64,606
1,17,41,625 2,38,05,919
(Increase) / Decrease in Stocks 1,20,64,294 (1,25,73,281)
 ROLEX LANOLIN PRODUCTS LIMITED
Notes to the Consolidated Financial Statements

Note For the year ended For the year ended

no PARTICULARS 31.03.2019 31.03.2018

18 Employee benefit expense

Salaries, Wages & Bonus 1,47,20,307 1,35,34,601
Contribution to Funds 7,10,447 4,99,801
Staff Welfare Expenses 7,95,149 9,35,963
TOTAL 1,62,25,903 1,49,70,365

19 Finance cost
Interest paid to bank 15,42,162 78,64,552
Bank charges 4,28,062 10,68,710

TOTAL 19,70,224 89,33,262

20 Other Expenses
Power & fuel 12,01,933 9,84,764
Repairs & Maintenance to Machinery 15,31,390 24,76,536
Repairs & Maintenance to Building 9,42,412 15,30,965
Effluent Charges 14,98,119 13,65,556
Rent 25,380 86,182
Insurance 4,49,497 4,23,022
Rates & taxes 4,16,820 3,10,047
Packing Charges 27,47,102 25,49,336
Octroi,Carriage & Cartage 29,15,337 22,22,298
Printing & Stationary 7,74,252 7,99,985
Professional and Service Charges 11,01,693 11,28,831
Business & Sales Promotion Exps 7,50,501 9,49,021
Clearing Charges 14,09,018 12,68,165
Commission & Brokerage 1,30,896 4,15,927
Travelling & Convayence 24,64,705 11,97,008
Motor Car Exps 5,18,789 14,90,348
8,42,525
Other Expenses 25,70,236 27,63,516

Auditors Remuneration:
- for Statutory Audit 1,40,000 1,40,000
- for Tax audit 63,000 97,500
- for Taxation matter 1,10,000 74,750
-for certification fees 6,600
TOTAL 2,26,03,606 2,22,80,357
 ROLEX LANOLIN PRODUCTS LIMITED
Notes to the Consolidated Financial Statements

Note For the year ended For the year ended

no PARTICULARS 31.03.2019 31.03.2018
Note 21: SIGNIFICANT ACCOUNTING POLICIES

A Principles of Consolidation:
The consolidated financial statements comprise the financial statements of Rolex Lanolin Products Limited
("the Holding Company”) and its subsidiaries (the Holding Company and its subsidiaries together referred as
“the Group”) and jointly controlled entities.
The consolidated financial statements relate to the Group and jointly controlled entities. The consolidated
financial statements have been prepared on the following basis: -
- Interest in jointly controlled entities have been accounted by using the proportionate consolidation method as
per “Accounting Standard – 27 (AS-27) Financial Reporting of Interest in Joint Ventures”.
- The Consolidated Financial Statements have been prepared in accordance with Accounting Standard (AS) 21
“Consolidated Financial Statements”.

- The financial statements of the Group and its jointly controlled entities are combined on a line by line basis by
adding together the values of like items of assets, liabilities, income and expenses after fully eliminating intra-
group balances and intra-group transactions and resultant unrealized profits or losses in accordance with
accounting principles generally accepted in India (‘Indian GAAP’) and comply with the Accounting standards
prescribed in the Companies (Accounting Standards) Rules, 2006 which continue to apply under Section 133 of
the Companies Act, 2013 (‘the Act’) read with rule 7 of the Companies (Accounts) Rules, 2014 and other
relevant provisions of the Companies Act, 2013 (‘the Act’), to the extent applicable.
- The consolidated financial statements have been prepared using uniform accounting policies for like
transactions and other events in similar circumstances.

- The financial statements of the subsidiaries and the jointly controlled entities used for the purpose of
consolidation are drawn upto the same reporting date as that of the Holding Company, i.e. 31 March 2015.
- The Subsidiary companies considered in the consolidated financial statements are:

Country of % ownership held as at % ownership held as at

Name of the Company Incorporation 31st March, 2015 31st March, 2014
Euro Polythene Private
Limited India 100.00% 100.00%

“Minority interest” represents the amount of equity attributable to minority shareholders at the date on which
investment in the subsidiary is made and its share of movements in the equity since the date the parent
subsidiary relationship comes into existence.

B Basis of preparation of Consolidated Financial Statements:

These consolidated financial statements have been prepared and presented under the historical cost
convention, on the accrual basis of accounting in accordance with the accounting principles generally accepted
in India (‘Indian GAAP’) and comply with the Accounting standards prescribed in the Companies (Accounting
Standards) Rules, 2006 which continue to apply under Section 133 of the Companies Act, 2013 (‘the Act’) read
with rule 7 of the Companies (Accounts) Rules, 2014 and other relevant provisions of the Act, to the extent
applicable.

All the assets and liabilities have been classified as current or non current as per the Holding Company’s normal
operating cycle and other criteria set out in Schedule III to the Act. Based on the nature of products and the
time between the acquisition of assets for processing and their realization in cash and cash equivalent, the
Group has ascertained the operating cycle to be 12 months.

C Fixed Assets :
Fixed assets are recorded at cost of acquisition inclusive of relevant taxes, duties and other identifiable direct
expenses.

D Depreciation :

i) Deprecation on fixed assets has been provided on straight line method at the rates and in the manner
specified in Schedule II of Companies Act, 2013.

iii) Depreciation on addition made to assets or on sale of assets, is calculated pro rata from the date of such
addition or upto the date of such sale,as the case may be.
E Inventories :
i) Raw materials is valued at cost.
ii) Finished good stock are valued at cost or net realizable value whichever is lower.
iii) Work in Progress is valued at material cost plus proportionate overheads attributed.

iv) Cost comprises all cost of purchase, appropriate direct production overheads and other costs incurred in
bringing the inventories to their present location and condition.

F Revenue Recognition:
i) Revenue is recognized on sale of goods as and when the property in goods is transferred to buyer along with all
significant risks and rewards of ownership.
ii) Interest income is accounted on accrual basis.

G Foreign currency transaction:

During the year all transactions in foreign currency, are recorded at the rates of exchange prevailing on the
dates when the relevant transactions take place

Amount remaining unsettled on these transaction at the Balance Sheet date are translated at the rate
prevailing on date of Balance Sheet.

H Investment :
Investments are stated at cost.

I Retirement benefits :
Estimated liability for gratuity on Balance Sheet date has not been quantified. The same will be accounted on
payment basis.

J Compensated Absences:
As per the policy of the Company, the leave standing to the credit of the employees at the end of the year is
paid in the same year.

K Provision for Taxation :

Provision for taxation is computed as per total income returnable under the Income Tax Act, 1961.
Provision for deferred tax has been made in accordance with Accounting Standard 22 "Accounting for Taxes in
Income' issued by The Institute of Chartered Accountants of India. Deferred tax resulting from timing
difference between taxable income & accounting income that originate in one period and capable of being
reversed in one or more subsequent periods is recognized at the current rate of tax, subject to consideration of
prudence in respect of deferred tax assets.

L Borrowing Cost :
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset
form part of the cost of that asset in accordance with Accounting Standard 16 "Borrowing Cost" issued by The
Institute of Chartered Accountants of India. Other borrowing costs are recognised as an expense.

M Other Accounting Polices :

These are consistent with the generally accepted accounting practices.

N Advance recoverable in cash or kind :

It includes amount of Rs 48,493/- (P.Y 48,493/-) receivable from concern(s) in which directors are interested.

O Deferred Tax :
Break up of Deferrred Tax Liability as on 31.3.2019 is as follows:
Deferred Tax Liability out of difference between the depreciation on assets as per Books of Accounts and
Income Tax Act, 1961 i.e 10,09,700/- (PY 33,03,093/-) .
22 Share Capital
Rights,preferences and restrictions attached to Equity Shares:
The Company has only one class of equity shares having a par value of Rs 10 per share.
Each shareholder is eligible for one vote per share held. The Dividend proposed by the Directors is
subject to the approval of the shareholders in the ensuing Annual General Meeting.

Details of shareholders holding more than 5% of the aggregate number of shares in the Company

As At 31.03.2019 As At 31.03.2018
No. of Shares % of No. of Shares % of
Name of the Shareholder Held Shareholding Held Shareholding
Hansa Hasmukh Zaveri 1,55,630 28.82% 1,55,630 28.82%
Hasit Hasmukh Zaveri 1,55,630 28.82% 1,55,630 28.82%
Hasmukh Nathalal Zaveri 1,25,024 23.15% 1,25,024 23.15%
Falguni Hasmukh Zaveri 1,03,686 19.20% 1,03,686 19.20%

The reconciliation of the number of shares outstanding and the amount of share capital as at 31st
March, 2019 & 31st March, 2018

As At 31.03.2019 As At 31.03.2018
No. of Shares No. of Shares
Particulars Held Amount Held Amount
Number of shares at the
beginning of the period 5,40,000 54,00,000 5,40,000 54,00,000
Add: Bonus Shares issued - - - -
Number of shares at the end
of the period 5,40,000 54,00,000 5,40,000 54,00,000

23 Borrowings:
Secured Loans:
(a) Term Loan from Bank:

Term loan from bank is secured against equitable mortgage of Land & Building situated at Plot No.
6309, Phase LV, GIDC, Vapi, Gujarat
(b) Working capital facility from bank:
Working capital facility from bank is secured on first pari passu basis by way of hypothecation of
current assets of the Holding company, fixed deposits, by way of hypothecation of Plant &
Machinery of the Holding company, equitable mortgage of commercial property of the Holding
Company & personal guarantee of Directors.
(c) Terms of Repayment
Company have a OD Account with Bank which is repayable on demand and Term Loan repayable on
84 monthly installments

24 Borrowing Cost Capitalisation

Borrowing cost amounting to Rs. NIL/- has been capitalised in accordance with Accounting Standard
16 - "Borrowing Cost" issued by Institute of Chartered Accountants of India.

25 Commitments
Estimated amount of contract remaining to be executed on capital account and not provided for(net
of advances) is NIL/-
26 (A) Details of Closing Stock:- in Rs.
2018-19 2017-18
i)Finished goods:
-Lanolin anhydrous 1,17,41,625 1,70,41,313
iv) Stock in Transit 15,88,224 67,64,606
Total 1,33,29,849 2,38,05,919

(B) Details of Revenue from Operations: in Rs.

Particulars 2018-19 2017-18
Finished goods 13,96,59,142 13,73,92,439
Sale of services 6,09,748 -
Total 14,02,68,890 13,73,92,438

(C ) Details of Raw material consumed in Rs.

Particulars 2018-19 2017-18
Wool grease 7,52,02,002 7,94,34,713
Others 1,88,86,007 1,54,97,078
Total 9,40,88,009 9,49,31,791

(D) CIF value of Imports in Rs.

Particulars 2018-19 2017-18
Raw material 3,64,30,145 3,42,96,876
Total 3,64,30,145 3,42,96,876

(E) Expenditure in Foreign Currency in Rs.

2018-19 2017-18
Travelling Expenses 14,56,269 4,16,237
Commission - 94,787
Total 14,56,269 5,11,024

(F) Earnings in Foreign Currency

i) FOB value of exports is Rs.26,399,546/-(Previous year Rs.41,164,377/-)
ii) Rent of Rs.3,54,000/- ( Previous Year Rs.2,87,088/-)
iii) Commission Of Rs 6,09,748/- (Previous Year NIL)

(G) Details of Imported and Indigenous Raw Material Consumed

Particulars 2018-19 2017-18
Rs. % Rs. %
Imported 2,04,05,166 21.69% 3,56,07,715 37.51%
Indigenous 7,36,82,843 78.31% 5,93,24,076 62.49%
Total 9,40,88,009 100.00% 9,49,31,791 100.00%

27 Extraordinary Items

Extraordinary Items amounting to Rs. NIL/-

28 Names of related parties and description of relationship

Key Management Personnel Hasit Hasmukh Zaveri
Falguni Hasit Zaveri
Hasmukh Nathalal Zaveri
Hansa Hasmukh Zaveri
Relative of Key Management Mayank Hasmukh Zaveri
Personnel
Aashna Hasit Zaveri
Jash Hasit Zaveri
Enterprise owned or significantly Consolidated Solvents & Chemical Corporation
influenced by key Management Euro Polythene Private Ltd.
Personnel or their relatives, where
transactions have taken place
 Particulars Subsidiaries Key Management Enterprises owned Relatives of Key Total Subsidiaries Key Management Enterprises owned Key Management Total
Personnel or significantly Management Personnel or significantly Personnel Relative
influenced by key Personnel influenced by key
management management
personnel or their personnel or their
relatives relatives

2018-19 2018-19 2018-19 2018-19 2017-18 2017-18 2017-18 2017-18 2017-18 2017-18
-
Car Hire Charges - - - - 7,47,000 7,47,000
Hasit Hasmukh Zaveri - - - - - 7,47,000 - -
- - - -
Remuneration to Directors - 56,15,000 - - 56,15,000 - 53,40,000 53,40,000
Hasit Hasmukh Zaveri - 30,65,000 - - - 29,40,000 - -
Falguni Hasit Zaveri 9,50,000 - 9,00,000 - -
Hasmukh Nathalal Zaveri - 9,50,000 - - - 9,00,000 - -
Hansa Hasmukh Zaveri - 6,50,000 - - - 6,00,000 - -
- - -
Interest Paid 2,05,221 2,05,221 - 8,05,425 - - 8,05,425
Hasmukh Nathalal Zaveri - 81,890 - - - 5,60,270 - - -
Hansa Hasmukh Zaveri - 1,23,331 - - - 2,45,155 - - -
- - -
Salary Paid - - - 7,18,812 7,18,812 - 7,89,964 7,89,964
Mayank Hasmukh Zaveri 2,92,202 - - - 2,52,000
Aashna Hasit Zaveri 64,500 - - - 2,58,000
Jash Hasit Zaveri - - - 3,62,110 - - - 2,79,964
- -
Commission/ Brokerage Paid: - - - - -
Jash Hasit Zaveri - - - - - - 50,816 50,816
- -
Balances Outstanding at the year
end: - - - - - -
Deposits Receivable 48,492 - 48,492 48,492 - - 48,492
Euro Polythene Private Ltd 48,492 - - - 48,492 - - - -
- -
Other Receivables / (Payables)
(Net) (2,52,17,330) - (7,00,000) (2,59,17,330) - (2,40,82,857) - (8,75,000) (2,49,57,857)
Hasmukh Nathalal Zaveri (55,92,904) - - - - (56,95,456) - - -
Hansa Hasmukh Zaveri (26,95,243) - - - (26,69,449) - - -
Hasit Hasmukh Zaveri (29,50,000) - - - - (18,00,000) - - -
Falguni Hasit Zaveri (1,39,07,639) - - - (1,39,17,951) - - -
Consolidated Solvents & Chemicals
Corporation (71,544) -
Aashna Hasit Zaveri (1,50,000)
Mayank Hasmukh Zaveri - - - (7,00,000) - - - - (7,25,000) -
29 Statemet of EPS:
2018-19 2017-18
Profit / (Loss) for the Period before Extraordinary Items (67,48,129) 36,59,083
No. of Shares 5,40,000 5,40,000
EPS (12.50) 6.78

2018-19 2017-18
Profit / (Loss) for the Period after Extraordinary Items (67,48,129) 36,59,083
No. of Shares 5,40,000 5,40,000
EPS (12.50) 6.78

Previous year figures have been regrouped/reclassified, wherever necessary.

30