| COMPANY MANAGEMENT AND PROJECT HISTORY & BUSINESS OF THE
COMPANY
The company was incorporated as private limited on 17th
April, 1986, in the name of Jindal Irrigation Pvt. Limited
which later became deemed public limited on 18th June, 1986
u/s 43A of the Companies Act, 1956. Subsequently name was
changed to Rungta Irrigation Limited with effect from 4th
April, 1994 and shareholders of the company passed a
Special Resolution in Extra Ordinary General Meeting held n
09.05.94 for deleting the restriction clause under Section
3(1)(iii) of the Companies Act, 1956 in the Articles of
Association of the Company and as such company became
public company within the meaning of Section 3(1)(iv) of
the Companies Act, 1956. The company has its registered and
administrative office at 101, Pragati Tower, 26, Rajendra
Place, New Delhi. The company was originally promoted by
Shri S.R. Jindal and was under his management till financial
year 1992-93. Thereafter during August 1993, the
management of the company was taken over by the Rungta
Group headed by Shri R.S. Rungta by acquiring the holding
for a total consideration of Rs.126.88 lacs. The
valuation of shares were arrived at the book value and
further no revaluation of assets was done. At the time of
take-over the following were the pending liabilities :
a) Sales Tax liability imposed upon the company by the sales
tax authorities amounting to Rs.86.00 lacs including
penalties and interest, is under protest. On a writ filed
by the company, the H'ble High Court of Rajasthan has
stayed the demand and instructed the company to furnish the
bank guarantee for Rs.23.00 lacs.
b) Demand raised by Income Tax authorities after regular
assessment for the assessment year 1989-90, 1990-91 &
1991-92 amounting to Rs.42,685/-, Rs.2,77,412 and
Rs.18,118/- respectively for which appears have been preferred
with the concerned authorities.
The company is presently engaged in the manufacturing,
designing, assembling and marketing of
Aluminium/G.I./HDPE/PVC - Pipe based Sprinkler Irrigation
system and rigid PVC & HDPE Pipes for water conveyance
channels and other uses. The company has played a
significant role so far, in acceleration of green
revolution in the agro-sector of India especially in the
States of Haryana, Rajasthan, Delhi, M.P. and North Eastern
States.
Presently the company has two manufacturing units - First
Unit is at Ghaziabad in the state of U.P. for the
manufacturing and assembling of Sprinklers and other
components of Sprinkler Irrigation System based on
Aluminium/G.I. Pipe fittings. The second unit is set up at
Kala Amb, Dist. Sirmour in the State of Himachal Pradesh, a
notified backward area eligible for 100% Income Tax
benefit, for the manufacturing of HDPE pipes and other
components and the assembling of Sprinkler Irrigation
System. The Second Unit commenced its production in the
month of November, 1994.
In addition to the two manufacturing Units the company has
its branches at Calcutta, Jaipur, Hyderabad and Bangalore
and Depots at Siliguri in West Bengal, Jabalpur and Bhopal
in Madhya Pradesh, Nagpur in Maharashtra, Varanasi in Uttar
Pradesh, Bhiwani in Haryana, Sikar and Sayala in Rajasthan.
The company was incorporated in 1986 and in the succeeding
year ended on 30th June, 1987 it started the full fledged
manufacturing operations producing Aluminium Irrigation
System and registered a turn over of Rs.585 lacs. The
company declared maiden dividend of 8% in 1987.
For the year ended on 30th June, 1988 sale of the company
was Rs.597 lacs and the net profit (after tax) was Rs.20
lacs. The dividend for the year remained the same as in the
earlier year.
The sale, net profit (after tax) and dividend for the year
ended on 31st March, 1989 was Rs.622 lacs and Rs.29.76
lacs and 8% respectively.
The company has not faced any labour problem since its
incorporation and Labour Management relations are very
cordial.
The company has engaged in the production of Sprinkler
Irrigation Systems based on Aluminium only. However, it
was felt by management that Sprinkler Irrigation Systems
made up of HDPE and Drip Irrigation System and also rigid
PVC pipes having vast market potential. Further these are
related area of activities and can be successfully
implemented by the company. Thus the company shall have the
complete range of artificial irrigation systems available
in the market. As the company's brand is already
established in the market and also it has strong dealership
network, it will give the company an edge over its
competitors.
With the implementation of the proposed project the
following capacities shall be created additionally.
Accounting Policies
A. Basis of preparation of Financial statement :
(a) The financial statements have been prepared under the
historical cost convention in accordance with the generally
accepted accounting principle and the provisions of the
Companies Act, 1956.
(b) Accounting polices not specifically referred to
otherwise are consistent with generally accepted accounting
principles followed by the company.
B. Fixed Assets and Depreciation
(a) Fixed assets are stated at cost of acquisition less
accumulated depreciation.
(b) Advances paid for acquisition of Fixed Assets are
included under capital work in progress.
(c) The cost of Fixed Assets are inclusive of freight,
duties and other incidental expenses incurred during
construction period.
(d) With regard to assets acquired under deferred
payment/instalment credit schemes, the cost of the assets are
capitalised while the financial charges at equated
instalments have been charged to revenue.
(e) Depreciation is charged on prorata basis as per the
rates prescribed under schedule XIV to the Companies Act,
1956.
C. Investments
Investments are stated at cost.
D. Inventories
- Raw materials are valued at cost and Finished goods are
valued at cost or market value whichever is lower.
- Stores and spare parts are valued at cost.
- Scrap is valued at estimated realisable value.
E. Research & Development Expenses
Expenditure on Research and Development is charged to
revenue as and when incurred.
F. Recognition of Income & Expenditure
All revenues, costs, assets and liabilities are accounted
for on accrual basis. Sales are net of discounts and sales
tax.
G. Deferred revenue expenditure
Preliminary expenses are written off in equal installments
over a period of ten years, as allowable under the Income
Tax Act 1961.
MATERIAL NOTES ON ACCOUNTS
Year 1990-91, 1991-92, 1992-93
1. The company is liable to be assessed under Wealth Tax
Act and the liability of it is accounted for on cash basis.
Year 1993-94
1. Demand raised by Income Tax authorities after regular
assessment for the Assessment Year 1989-90, 1990-91 &
1991-92 amounting to Rs.42,685.00, Rs.2,77,412.00 and
Rs.18,118.00 respectively for which appeals have been
preferred with the concerned authorities.
2. Sales tax liability imposed upon the company by the
sales tax authorities amounting to Rs.86.00 lacs including
penalties and interest, is under protest. On a writ field
by company, the Hon'ble High court of Rajasthan has stayed
the demand and instructed the company to furnish the bank
guarantee for Rs.23 lakhs.
3. The company has changed the method providing depreciation
on fixed assets from written down value method to straight
line method at the rates and manner provided under schedule
XIV to the Companies Act, 1956 on the assets acquired on or
after 1st April, 1993. Assets acquired before 1st
April, 1993 are continued to be depreciated under written
down value method. Had the method of providing
depreciation been adopted consistently as provided in
previous years, the profit of the company would have been
reduced by Rs.20,70,358.00 and the decrease in net block
by Rs.20,70,358.00.
2008
- Rungta Irrigation Ltd has appointed Ms. Priya Rungta, D/o Shri. M P Rungta, as Additional Director of the Company.
2022 -The company issued rights shares of Rs. 10 in the ratio of 1.25:1 at a premium of Rs. 1 per share.
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