The company is in the business of manufacturing, distribution, marketing and selling of Physically Refined Rice Bran Oil (“Rice Bran Oil”). They manufacture and sell Rice Bran Oil to FMCG companies like Mother Dairy Fruit & Vegetable Private Limited, Marico Limited and Empire Spices and Foods Ltd. Along with this they also manufacture, market and sell Rice Bran Oil under own brands “Tulsi” and “Sehat” through 38 distributors who in turn sell to various retailers across Maharashtra.
Apart from this they also produce De-oiled Rice Bran (DORB), which is a by-product and is sold as cattle feed, poultry feed and fish feed in the States of Maharashtra, Goa, Gujarat, Madhya Pradesh, Andhra Pradesh, Telangana, Karnataka, Kerala and Tamil Nadu. Other by-products such as fatty acid, lecithin, gums, spent earth and wax are sold in the open market.
Company owns and operate two Manufacturing Facilities, 1 in Mahadula and 1 in Bramhapuri near Nagpur, in the State of Maharashtra, which are strategically located in Central India.
Rice bran oil is extracted from the hard outer brown layer of rice after chaff or rice husk. It is well known for its high smoke point of 232 °C i.e. 450 °F and mild flavour, making it fit for high-temperature cooking methods.
As per Final Estimates for 2022-23 released on October 18, 2023, total production of rice during 2022-23 is estimated at record 1,357.55 Lakh tonnes. It is higher by 62.84 Lakh tonnes than the previous year’s Rice production of 1294.71 Lakh tonnes and by 153.65 Lakh tonnes than the last five years’ average production of 1,203.90 Lakh tonnes.
Maize is the third most important cereal crop in India after rice and wheat. It accounts for around 10 percent of total food grain production in the country. India is also the fifth largest producer of Maize in 2020 as per FAO data and India’s share in world production accounted to be 2.59 per cent in the same year. As per Final Estimates for 2022-23 released on October 18, 2023, the estimated production of maize during 2022-23 is 380.85 Lakh tonnes.
Edible oils and Fats are essential ingredients for a wholesome and balanced diet and they are vital items of mass consumption. There are two sources of oils viz. primary source and secondary source. The primary sources of oil are nine principal oilseeds viz. groundnut, rapeseed/mustard, soyabean, sunflower, sesame, niger, safflower, castor and linseeds. Edible oils obtained through secondary sources include coconut, cottonseed, palm, rice bran and oilseed cakes.
Risk associated to the issue:
Inability to comply with repayment and other covenants in the financing agreements: Company has entered out financing arrangements with certain banks for working capital facilities, term loans and vehicle loans. As of March 15, 2024, company had total secured borrowings of ₹ 8,621.12 lakhs. The agreements with respect to borrowings contain restrictive covenants.
Limited Geographies: Majority of revenues comes from customers located in Maharashtra, Andhra Pradesh & Uttar Pradesh. For the nine months ended December 31, 2023 Maharashtra holds 51.54% of revenue, Andhra Pradesh holds 26.48% and Uttar Pradesh holds 4.95%.
Dependent on limited suppliers for raw materials: The company is dependent upon certain suppliers for the supply of raw materials majority of which are from the states of Maharashtra, Madhya Pradesh, Chhattisgarh and Gujarat. In the event of shortage of raw materials with these suppliers company may be unable to meet production schedules.
Dependent on sale to FMCG companies: Company supply rice bran oil in bulk to certain leading FMCG companies like Mother Dairy Fruit & Vegetable Private Limited, Marico Limited and Empire Spices and Foods Ltd aggregating to approximately 35% of the revenue for the sub period ended 31st Dec’23. And the company also don’t have long term contracts. Apart from these FMCG customers, company’s own brands holds about 8-10% of revenue.
De-Oiled Rice Bran (DORB) significant portion in revenues: It approximately holds 45% of revenue.
Business require significant working capital: Business operation requires significant working capital specifically for raw materials and finished goods to undertake manufacturing operations. The working capital requirements for FY 2025 of Company is estimated at ₹ 1,200.00 lakhs and will be funded out of the Net Proceeds.
Failure of setting up of the Ethanol manufacturing unit: The company is setting up corn de-oiling manufacturing facility, adjoining our existing manufacturing unit at Brahmapuri, this is done by RBS Renewables Private Limited, an Associate company. Ramdevbaba solvent ltd. has 30% stake in the same.
The company operates in a highly regulated and lobo intensive industry: Operations are subject to extensive government regulations. Operations are subject to evolving health, safety and environmental laws and regulatory standards. The company’s manufacturing activities are labor intensive. Strikes and other labor actions may have an adverse impact on our manufacturing operation.
1. Aadhaar and PAN Card of the taxpayer and the company
2. Bank Statements of the taxpayer/company/firm
3.Form 26AS: It is a summary of all the taxes that have been deducted from your income, such as TDS (Tax Deducted at Source).
4. Form 16: It is issued by your employer, which gives the details about the total salary + TDS deducted from it.
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6. Proof of other income: Other than your salary, if you have earned from different sources, such as from freelance work, rental income, or interest, you need to attach the documents, such as bonus receipts, interest certificates, rental agreements, and any freelance payment statements, to prove the same.
7. Deductions and tax-saving investments: To claim deductions under sections 80C - for investments in PPF, ELSS, etc., 80D - for insurance premiums, or 80G for the charitable donations, you need to attach the documents to prove the same.
8. Form 10E (If Applicable): If you have received salary arrears or any special bonuses, then you need to attach the Form 10E - it is used to claim tax relief for those payments under section 89(1) of the Income Tax Act, 1961.
9. TDS Certificates: If you have earned income from sources other than your salary, such as rent, interest, or professional fees, then your TDS might have TDS deducted. In this case, you need to attach the TDS certificates from those sources to show that tax has been deducted and deposited with the government.
10. Details of Foreign Income (If Applicable): If you have earned from abroad or own foreign assets, you need to disclose all the information in your ITR. Documents such as foreign bank statements, income certificates, or details of foreign investment are necessary to report this income correctly.
1. Aadhaar and PAN Card of the taxpayer and the company
2. Bank Statements of the taxpayer/company/firm
3.Form 26AS: It is a summary of all the taxes that have been deducted from your income, such as TDS (Tax Deducted at Source).
4. Form 16: It is issued by your employer, which gives the details about the total salary + TDS deducted from it.
5. Investment and financial documents: If you have invested in shares, mutual funds, or fixed deposits, dividend statements, capital gains reports (if you have sold any assets), and interest certificates need to be attached.
6. Proof of other income: Other than your salary, if you have earned from different sources, such as from freelance work, rental income, or interest, you need to attach the documents, such as bonus receipts, interest certificates, rental agreements, and any freelance payment statements, to prove the same.
7. Deductions and tax-saving investments: To claim deductions under sections 80C - for investments in PPF, ELSS, etc., 80D - for insurance premiums, or 80G for the charitable donations, you need to attach the documents to prove the same.
8. Form 10E (If Applicable): If you have received salary arrears or any special bonuses, then you need to attach the Form 10E - it is used to claim tax relief for those payments under section 89(1) of the Income Tax Act, 1961.
9. TDS Certificates: If you have earned income from sources other than your salary, such as rent, interest, or professional fees, then your TDS might have TDS deducted. In this case, you need to attach the TDS certificates from those sources to show that tax has been deducted and deposited with the government.
10. Details of Foreign Income (If Applicable): If you have earned from abroad or own foreign assets, you need to disclose all the information in your ITR. Documents such as foreign bank statements, income certificates, or details of foreign investment are necessary to report this income correctly.
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