Mar 31, 2018
1. CORPORATE OVERVIEW
Innovative Tech Pack Limed (referred to as âITPLâ âThe company hereinafter â)is a listed entity incorporated in India. The registered office of the company is located at Plot No. 51, Roz-Ka-Meo, Industrial Area Sohna, Mewat Haryana- 122103, India.
The Company is engaged in the business of Manufacturing & Reselling of Plastic Bottles, Jars, Containers, and Pre-forms & its Caps.
2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
a) Basis of preparation and compliance with Ind As
(i) For all periods upto and including the year ended March 31, 2017, the Company prepared its financial statements in accordance with Generally Accepted Accounting Principles (GAAP) in India and complied with the accounting standards (Previous GAAP) as notified under Section 133 of the Companies Act, 2013 read together with Rule 7 of the Companies (Accounts) Rules, 2014, as amended, to the extent applicable, and the presentation requirements of the Companies Act, 2013.
In accordance with the notification dated February 16, 2015, issued by the Ministry of Corporate Affairs, the Company has adopted Indian Accounting Standards (Ind AS) notified under Section 133 read with Rule 4A of Companies (Indian Accounting Standards) Rules, 2015, as amended, and the relevant provisions of the Companies Act, 2013 (collectively, âInd ASâ) with effect from April 1, 2016 and the Company is required to prepare its financial statements in accordance with Ind AS for the year ended March 31, 2018. These financial statements as and for the year ended March 31, 2018 (the âInd AS Financial Statementsâ) are the first financial statements, the Company has prepared in accordance with Ind AS.
(ii) These financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013. The financial statements have also been prepared in accordance with the relevant presentation requirements of the Companies Act, 2013. The Company adopted Ind AS from 1st April, 2017.
(iii) Up to the year ended 31st March, 2017, the Company prepared its financial statements in accordance with the requirements of previous Generally Accepted Accounting Principles (GAAP), which includes Standards notified under the Companies (Accounting Standards) Rules, 2006. These are the Company''s first Ind AS financial statements. The Company has followed the provisions of Ind AS 101-âFirst Time adoption of Indian Accounting Standardsâ (Ind AS 101), in preparing its opening Ind AS Balance Sheet. The date of transition to Ind AS is 1st April, 2016. Details of the exceptions and optional exemptions availed by the Company and principal adjustments along with related reconciliations are detailed in Note 31 (First-time Adoption).
(iv) These financial statements were approved for issue by the Board of Directors on May 30, 2018.
b). Basis of Preparation
The financial statements are prepared in accordance with the going concern basis using historical cost convention, except for certain items that are measured at fair values, as explained in the accounting policies.
The Financial Statements of the Company have been prepared to comply with the Indian Accounting standards (âInd AS''), including the rules notified under the relevant provisions of the Companies Act, 2013.
Company''s Financial Statements are presented in Indian Rupees (''), which is also its functional currency and all values are rounded to the nearest lakhs (''00,000), except when otherwise indicated.
Fair value measurement
Fair Value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these financial statements is determined on such a basis, except for share-based payment transactions that are within the scope of Ind AS 102 - Share-based Payment, leasing transactions that are within the scope of Ind AS 17 - Leases, and measurements that have some similarities to fair value but are not fair value, such as net realisable value in Ind AS 2 - Inventories or value in use in Ind AS 36 - Impairment of Assets.
The preparation of financial statements in conformity with Ind AS requires management to make judgments, estimates and assumptions that affect the application of the accounting policies and the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the year. Actual results could differ from those estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period; they are recognised in the period of the revision and future periods if the revision affects both current and future periods.
c). Functional and presentation currency
These Ind AS Financial Statements are prepared in Indian Rupee which is the Company''s functional currency.
All financial information presented in Rupees has been rounded to the nearest lakhs with two decimals.
d). Operating Cycle
All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013 and Ind AS 1 - Presentation of Financial Statements based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents.
(a) Rights, preferences and restrictions attached to Equity Shares
The company has only one class of equity shares . Each Holder of equity share is entitled to one vote per share .In the event of liquidation of the company, the holders of the equity shares shall be entitled to receive remaining assets of the company , after adjustment of all the preferential payments. The distribution will be made in the proportion of holding of equity shares. The Dividend proposed ( if any)by the board is subject to approval of shareholders in the following Annual General Meeting
The Company has issued 6,00,0000 convertible share warrants on preferential basis to Mr. Ketineni Sayaji Rao, promoter of the Company having Face Value of Rs. 1/- per warrant at a premium of Rs.33.37/- per warrant on 10th November 2016. The company has received 25% of total consideration and balance 75% is to be received at the time of allotment of equity shares pursuant to exercise of option of conversion into equity shares against such warrants. Warrant holder is entitled to one equity shares of Rs. 1/-each fully paid up for each Warrant within a period of 18 months from the date of allotment of warrant at such price as may be arrived at in accordance with the SEBI (ICDR) Regulations.
Convertible share warrants has been converted into Equity share on 23-April-2018 to Mr. Ketineni Sayaji Rao.
âBorrowings- There is no amount of default as on the balance sheet date in repayment of loans and interest.
** Term Loan from Axis Bank Ltd. is secured by way of first charge on currents assets(Present and future) & moveable fixed assets (Excluding Machineries and vehicles is specifically charged with respective lenders) of the company and having equitable mortgage on Factory Land and Buildings situated at Plot No. 32, Sector-4, Pantnagar ,Uttarkhand &situated at 51, Roz ka Meo, Sohna, Gurgaon. The Credit Facility is further having equitable mortgage on commercial office space situated at 803-805, 8th Floor, Tower 2, Assochem Business Cresterra, Sector-135, Noida in the Mr. K. Sayaji Rao& on residential property situated at 20/27, Prakasam Road, Vijaywada in the name of Mrs. K. Pratibha Rao. The Credit Facility is further secured by Personal guarantees of Mr. K. Sayaji Rao, Mr. K. Satish Rao & Mrs. K. Pratibha Rao, Directors of the company. The Rate of interest is MCRL 2.75% i.e 11.00% p.a
** Term Loans(Other than Axis Bank Ltd.) represents loans taken for acquiring vehicle/ equipments from Banks and NBFCs ranging interest from 08%-18% p.a. ,with maturity period over one year and are secured by hypothecation of the respective assets
*** All loans are guaranteed by Promoters Directors personally
* Working Capital loan from Axis Bank Ltd. is secured by way of first charge on currents assets(Present and future) & moveable fixed assets (Excluding Machineries and vehicles is specifically charged with respective lenders) of the company and having equitable mortgage on Factory Land and Buildings situated at Plot No. 32, Sector-4, Pantnagar ,Uttarkhand &situated at 51, Roz ka Meo, Sohna, Gurgaon. The Credit Facility is further having equitable mortgage on commercial office space situated at 803-805, 8th Floor, Tower 2, Assochem Business Cresterra, Sector-135, Noida in the Mr. K. Sayaji Rao& on residential property situated at 20/27, Prakasam Road, Vijaywada in the name of Mrs. K. Pratibha Rao. The Credit Facility is further secured by Personal guarantees of Mr. K. Sayaji Rao, Mr. K. Satish Rao & Mrs. K. Pratibha Rao, Directors of the company.
3. Commitments and Contingencies
As per information available with the management there is a contingent liability of Rs. 69 Lakhs (Previous Year NIL) as at 31st March, 2018.
4. Defined benefit plan
Disclosures including sensitivity analysis in respect of gratuity and leave encashment have been made as per the valuation of employee benefit done for the year ended 31-03-18
The Company off sets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.
5. Corporate Social Responsibility (CSR)
CSR amount required to be spent as per section 135 of the Companies Act, 2013 read with schedule 7, thereof by the company during the year is Rs. 10.58 Lakhs (Previous Year Nil).
6. Segment Reporting
The Company is engaged in manufacturing of pet jars/bottles and caps. Considering the nature of Company''s business and operations, there are no separate reportable segments (business or geographical) in accordance with the requirements of Indian Accounting Standard 108 âSegment Reporting''. The Chief Operational Decision Maker(CODM) monitors the operating results as one single segment for the purpose of making decisions about resource allocation and performance assessment and hence, there are no additional disclosures to be provided other than those already provided in the financial statements.
7. In the opinion of the Management and to the best of their knowledge and believe, the value on realization of current assets, Loan & Advances in the ordinary course of business would not be
8. Balance of Trade Receivable / Payable Loans / Advances are subject to confirmation.
9. Financial Risk Management Objective And Policies
The company is exposed to market risk, credit risk and liquidity risk. The Group''s senior management oversees the management of these risks. It is the Company''s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarized below.
a) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings. The company is exposed to interest rate risk on variable rate long term borrowings.
The company has elaborate risk management systems to inform Board members about risk management and minimization procedures.
The sensitivity analyses in the following sections relate to the position as at 31-03-18 and 31-03-17.
i. Foreign Currency Risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The company is not exposed to any foreign currency risk as there is no transaction in foreign currency. Particulars of un-hedged foreign currency exposures as at the Balance Sheet date are NIL (previous year NIL). Hence, no further disclosure is required under this section.
ii. Interest rate risk
Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Any changes in the interest rates environment may impact future rates of borrowing. The Company mitigates this risk by maintaining a proper blend of Fixed & Floating Rate Borrowings. The following Table shows the blend of Company''s Fixed & Floating Rate Borrowings in Indian Rupee:
The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable market environment.
iii. Price Risk
Commodity price fluctuation can have an impact on the demand of bottles/ caps for particular product therefore, company continuously keep on track the commodity price movement very closely and take advance production decision accordingly.
In addition to the above company also maintain a strategic buffer inventory to ensure that such disruptions do not impact the business significantly.
b) Credit risk
Credit risk arises from the possibility that the counterparty will default on its contractual obligations resulting in financial loss to the company. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions and other financial instruments.
To manage this, the Company periodically assesses the financial reliability & credibility of customers, taking into account the financial conditions, current economic trends, and analysis of historical bad debts and ageing of accounts receivable.
The Company has well defined sales policy to minimize its risk of credit defaults. Outstanding customer receivables are regularly monitored and assessed. Impairment analysis is performed based on historical data at each reporting date on an individual basis. However a large number of minor receivables are regularly monitored and assessed.
c) Liquidity Risk
Liquidity risk is defined as the risk that company will not be able to settle or meet its obligation on time or at a reasonable price. The company''s treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risk are overseen by senior management. Management monitors the company''s net liquidity position through rolling, forecast on the basis of expected cash flows.
10. Capital Management
a. Risk Management
The group''s objectives when managing capital are:
i) safeguard their ability to continue as a going concern , so that they can continue to provide returns for shareholders and benefits for other stakeholders, and
ii) maintain an optimal capital structure to reduce the cost of capital
In order to maintain or adjust the capital structure, the group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares.
Fair value hierarchy
The fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available. The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The Company uses the following hierarchy for determining and disclosing the fair value of the financial instruments by valuation techniques,
Level 1: Quoted prices (unadjusted) in the active markets for identical assets or liabilities.
Level 2: Other techniques for which all the inputs which have a significant effect on the recorded fair values are observable, either directly or indirectly
Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data
Assumptions and valuation technique used to determine fair value
The following methods and assumptions were used to estimate the fair values
i. Fair value of cash and deposits, trade receivables, trade payables, and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.
ii. Long-term variable-rate borrowings are evaluated by the Company based on parameters such as interest rates, specific country risk factors, credit risk and other risk characteristics. Fair value of variable interest rate borrowings approximates their carrying values.
11. Standards issued but not yet effective Ind AS 115 revenue from Contracts with Customers
Amended Ind AS 115 was notified on March 28, 2018 and establishes a five step model to account for revenue arising from contracts with customers. The revenue standard with supersede all current revenue recognition requirements under Ind AS. This standard will come in to force from accounting period commencing on or after April 01, 2018. The company is evaluating the requirements of the Amended and the effect on the financial statements is being evaluated.
12. Previous yearâs figures
These have been regrouped / reclassified where necessary, to confirm to current year''s classification.
13. Reconciliation
These financial statements, for the year ended 31 March 2018, have been prepared in accordance with Ind AS, for the purposes of transition to Ind AS, the company has followed the guidance prescribed in Ind AS 101- First time adoption of Indian Accounting Standards, with April 01, 2016 as the transition date and IGAAP as the previous GAAP.
Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on 31 March 2018, together with the comparative period data as at and for the year ended 31 March 2017, as described in the summary of significant accounting policies. In preparing these financial statements, the Company''s opening balance sheet was prepared as at 1 April 2016, the date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at 1 April 2016 and the financial statements as at and for the year ended 31 March 2017.
The following reconciliations provide a quantification of the effect of significant differences arising from the transition from Previous GAAP to Ind AS in accordance with Ind AS 101:
- Equity as at 1st April, 2016;
- Equity as at 31st March, 2017;
- Balance Sheet as at 1st April, 2016
- Balance Sheet as at 31st March, 2017
- Profit & Loss a/c as on 31st March''2017
- Total comprehensive income for the year ended 31st March, 2017
Explanations for reconciliation of Balance Sheet and Total Comprehensive Income as previously reported under Previous GAAP to Ind AS
In preparing these financial statements, the Company has availed certain exemptions and exceptions from retrospective application of certain requirements under Ind AS, as explained below:
1. Company decides to use IND AS 101 exemption for continuing its Plant, Property &Equipment (Except Lease Hold Land Measure at fair value as per IND AS 17) at previous GAAP carrying amount.
2. IND AS 101 does not require IND AS 17 to be applied retrospectively to Lease hold lands and it''s allow prospective application of Lease hold Land at the date of transition to IND AS. Based on the exemption of IND AS 101, Company classify its lease hold lands as finance leaseas on 1st April, 16 i.e. on the date of transition & recognize assets and liabilities at fair value on that date and difference is recognised in retained earnings.
3. Loan Processing Fees/transaction cost are considered for calculating effective interest rate under IND AS. Further, the impact for the periods subsequent to the date of transition is reflected in statement of Profit & Loss.
4. Company valued its Investment in Subsidiaries, Jointly Controlled entities and Associates at cost i.e. previously GAAP carrying amount at the transition date i.e. 01st April''16.
5. Security Deposit: Under Ind AS 109- financial instruments, security deposit are required to be valued at fair value and difference between cost and fair value is to be amortised over the period of security as rental expenses and consequently interest income to be booked using effective interest method in statement of Profit & loss.
6. Dividend: Under previous GAAP, dividends on Equity shares recommended by the Board of Directors after the end of the reporting period but before the financial statements were approved for issue were recognised in the financial statements as a liability. Under Ind AS, such dividends together with dividend distribution tax are recognised when approved by the members in the General Meeting.
7. Expected Credit Loss:Under Ind AS, expected life time credit provision is made on trade receivables. Under previous GAAP, the provision for doubtful debts was made using ageing analysis and an individual assessment of recoverability.
8. Deferred Tax -The additional Deferred Tax liability / Asset has also been recognised due to different accounting treatment in respect of certain items as per Ind AS at the tax rate at which they are expected to be reversed.
9. Actuarial Gain/Loss -Under Ind AS, re-measurements, i.e. actuarial gains and losses included in the net gratuity expense on the net defined liability are recognised in other comprehensive income instead of profit or loss.
10. Other Comprehensive Income- Under Ind AS, other comprehensive income adjustments are on account of actuarial gain/ loss on defined benefit plan - gratuity, net of tax effect.
11. Under previous GAAP, revenue from sale of products was presented net of excise duty under revenue from operations. Whereas, under Ind AS, revenue from sale of products includes excise duty. The corresponding excise duty expense is presented separately on the face of the Statement of profit and loss.
12. Dismantling Provision: The Company has availed the exemption for dismantling liability as at the date of transition and accordingly measured the liability as at the date of transition which is not significant & material, hence not considered.
13. Estimates: Upon an assessment of the estimates made under Previous GAAP, the Company has concluded that there was no necessity to revise such estimates under Ind AS, except where revision in estimates was necessitated as required by Ind AS. The estimates used by the Company to present the amounts in accordance with Ind AS reflect conditions existing as at 1st April, 2016, the date of transition to Ind AS and as at 31st March, 2017 and 31st March, 2018.
14. There were no significant reconciliation items between cash flows prepared under Indian GAAP and those prepared under Ind-AS.
Mar 31, 2016
1. The company has only one class of equity shares. Each holder of equity share is entitled to one vote per share. In the event of liquidation of the company, the holders of the equity shares shall be entitled to receive remaining assets of the company, after adjustment of all the preferential payments. The Distribution will be made in the proportion of holding of equity shares. The Dividend proposed (if any) by the board is subject to approval of shareholders in the following annual general meeting.
* Term Loan represents loans taken for acquiring respective assets (vehicle and equipments) from Banks and NBFCs ranging interest from 12%-15% p.a. ,with maturity period over one year and are secured by hypothecation of the respective assets
** Loan from related parties consisting of interest free as well as interest bearing loans .
* Working capital loan is secured by way of charge over factory land at Sohna , hypothecation of plant and machinery(except the machinery for which specific charge have been created) , inventory and Receivables .
** Refer Note 3 for disclosure
*The Company has not received the required information from suppliers requiring their status under the Micro Small and Medium Enterprises Development Act 2006. Hence disclosures if any relating to amounts unpaid at the yearend together with interest paid/payable as required under the Act has not been made
* The company made investments in National Saving Certificates(NSC) i.e. 2 Certificates of Rs 25000/ each in the name of Managing Director of the company and the same has been pledged with sales tax authority at Rudrapur(Uttaranchal) on behalf of the company. The interest accrued on such investment will be accounted for on maturity.
Previous Year figures given in bracket / negative balance.
NOTE 1
Trade Receivables/ Payables are subject to confirmation. The Management does not expect any material differences effecting financial statements of the period
NOTE 2
The company''s manufacturing units/ undertakings are situated in tax exemption zone and are entitled tax benefits under the Income Tax Act.
NOTE 3
All the figures have been rounded off to the nearest rupee
NOTE 4
Figures for the previous year have been regrouped /rearranged wherever considered necessary to confirm to the year''s classification.
Mar 31, 2015
1. The company has only one class of equity shares. Each holder of
equity share is entitled to one vote per share. In the event of
liquidation of the company , the holders of the equity shares shall be
entitled to receive remaining assets of the company, after adjustment
of all the preferential payments. The Distribution will be made in the
proportion of holding of equity shares. The Divendend proposed (if any)
by the board is subject to approval of shareholders in the following
Annual General Meeting.
2. Term Loan represents loans taken for acquiring respective assets
(vehicle and equipments) from Banks and NBFCs ranging interest from
12%-15% p.a. ,with maturity period over one year and are secured by
hypothecation of the respective assets ** Loan from related parties
consisting of interest free as well as interest bearing loans.
4. All loans are gauranteed by Directors personally
5. including Rs. 20,10,361/-related to chits withdrawn repayment due
after one year, estimated based on past experience
6.There are no Micro, Small and Medium Enterprises to which the Company
owes dues as at 31st March 2015. This information, as required to be
disclosed under the Micro, Small and Medium Enterprises Development
Act, 2006 has been determined to the extent such parties have been
identified on the basis of information available with the Company.
7. The company made investments in National Saving Certificates(NSC)
i.e. 2 Certificates of Rs 25000/ each in the name of Managing Director
of the company and the same has been pledged with sales tax authority
at Rudrapur(Uttaranchal) on behalf of the company. The interest accrued
on such investment will be accounted for on maturity.
For the year For the year
ended ended
Particulars 31-03-2015 31-03-2014
(Rs.) ( Rs. )
8. Contingent liabilities and
commitments
(to the extent not provided for)
i) Contingent Liabilities
Claims against the company not
acknowledged as debt
Excise Duty claim (with penalty) - 2,744,828
FERA Case Pending At Tribunal - 1,500,000
Total - 4,244,828
(ii) Commitments
Estimated amount of contracts
remaining to be executed on
capital account and not provided for 17,750,000 17,984,149
Total 17,750,000 22,228,977
9. Disclosure under Accounting Standard 15 (Revised): Employees Benefits
Employee Benefits
The Company has provided long-term employee benefits on the basis of
actuarial valuation done as per projected unit credit method.
10. Defined Benefit Plans:
The Gratuity and Leave encashment liability of the Company is
Non-funded. Hence reconciliation of fair value of plan assets and
obligations are not required.
11. Related Party Disclosures
During the year, the company entered into transactions with related
parties. List of related parties along with nature and value of
transactions and balances as at 31st March 2015 are presented below:
Name of Related Parties*
Key Management Personnel(KMP) Mr. K.S. Rao
(Managing Director)
Mr. K.Satish Rao
(Whole time Director)
Relatives of Key Management Personnel Mrs. K. Pratibha Rao
(Wife of MD)
Enterprise over which KMP and their 1) Innovative Pet Containers
Limited
relatives are able
to exercise significant influence 2) Innovative Datamatics
Limited
3) Innovative Container
services Private Limited
*(as identified by the management)
Trade Receivables/ Payables are subject to confirmation. The Management
does not expect any material differences effecting financial statements
of the period.
12. During the previous year Company has acquired 7,91,809 equity shares
in Jauss Polymers Limited, a company listed at Bombay Stock exchange.
The trading in share of such company was suspended, hence no market
value is available.
13. Till 31st March 2014, company was accounting loss on chit in the
year in which chit was closed. Form the year 2013-14 company changed its
policy and made provision for financial costs on existing chits that
accrued till March 31, 2014 on the basis of expected cash outflow during
the tenure of chits. The impact of change in this accounting policy was
Rs. 53,44,464 which was and disclosed under exceptional items in the
statement of Profit & Loss for the year ended March 31,2014.In the
current year same policy continue, hence no impact on statement of
Profit & Loss.
14. The company's manufacturing units/ undertakings are situated in tax
exemption zone and are entitled for 100% tax benefits u/s 80-IC/ 80IB
of the Income Tax Act for 5 year to 10 years ( at different units). The
management is of the view that all timing differences shall be
reversed/ adjusted within tax holiday period. Hence no deferred tax due
to timing difference has been recognized. This Tax exepmtion U/S 80IC
of the Income TAx Act for the Rudrapur Unit is available till March 31,
2017.
15. The Company has applied for Capital Subsidy of Rs. 1,35,98,000/- (
approx.) for its Unit at Guwahati. The same is under consideration by
the appropriate authorities. The same shall be accounted for in
accordance with Accounting Standard -12
16. The exceptional items given in Note No- 25 represents the following
a. Rs. 83 Lacs recoverable from a company whose unit was taken over
under slump purchase agreement in year 2012 as the liability exceeded
the assets, however as the same is not recoverable the amount has been
written off.
b. As a conservative accounting practice the company has provided for
the demand and the interest of Rs.53 lacs against pending legal cases.
The same was disclosed under contingent liability in earlier years.
17. All the figures have been rounded off to the nearest rupee
18. Figures for the previous year have been regrouped /rearranged
wherever considered necessary to confirm to the year's classification.
19. Other additional information are either nil or not applicable.
Mar 31, 2014
1. The company has only one class of equity shares. Each holder of
equity share is entitled to one vote per share. In the event of
liquidation of the company, the holders of the equity shares shall be
entitled to receive remaining assets of the company, after adjustment
of all preferential payments.The distribution will be made in the
proportion of holding of equity shares. The dividend proposed (if any)
by the board is subject to approval by the shareholders in the
following Annual General meeting.
1. Term Loan represents loans taken for acquiring vehicles from Banks
/ NBFCs ranging from 12%-15% pa ,with maturity period one to three
years and are secured by hypothecation of the respective vehicle
financed.
2. Directors have given personal guarantee against various loans taken
by the company whose outstanding amount as on 31 March 2014 was Rs.
53,29,716.
3. Equipment loan carry interest rate of 15 - 18% p.a. And are
repayable in monthly installments over 36 months. This loan is secured
by way of charge over certain fixed assets situated at Guwahati plant.
Managing director has given personal guarantee against this loan.
4. Loan from Directors/related parties are consisting of interest free
as well as interest bearing loans.
''Working capital loan is secured by way of charge over factory land at
Sohna, hypothecation of plant and machinery (excluding vehicles) at
Rudrapur plant and all stocks and book debts of the company.
* The company has not received the required information from suppliers
regarding their status under the Micro Small and Medium Enterprises
Development Act 2006. Hence disclosures, if any, relating to amounts
unpaid as at the year end together with interest paid/payable, as
required under the Act, have not been made.
NOTE-2
The company made investments in National Saving Certificates(NSC) i.e.
2 Certificates of Rs 25000/ each in the name of Managing Director of
the company and the same has been pledged with sales tax authority at
Rudrapur(Uttaranchal) on behalf of the company. The interest accrued on
such investment will be accounted for on maturity.
NOTE 3
Contingent liabilities and commitments (to the extent not provided for)
(i) Contingent Liabilities -
Claims against the company not acknowledged -
as debt
Excise Duty claim ( with penalty) 2,744,828 2,744,828
FERA case pending at Tribunal 1,500,000 1,500,000
Total 4,244,828 4,244,828
(ii) Commitments
Estimated amount of contracts
remaining to be executed
on capital account and not provided for 17,984,149 6,904,735
17,984,149 6,904,735
NOTE 4
Disclosure under Accounting Standard 15 (Revised): Employees Benefits
The Company has provided long-term employee benefits on the basis of
actuarial valuation done as per projected unit credit method.
A. Defined Benefit Plans:
The Gratuity and Leave encashment liability of the Company is
Non-funded. Hence reconciliation of fair value of plan assets and
obligations are not required.
NOTE 5
Trade Receivables/ Payables are subject to confirmation. The Management
does not expect any material differences effecting financial statements
of the period
Note 6
During the year the company has acquired 791,809 equity shares in Jauss
Polymers Ltd , a company listed at Bombay Stock exchange. The trading
in shares of such company is suspended hence no market value is
available for such shares. In view of long term investment in the
company the management has not considered any diminition in value of
shares and valued investment at cost.
NOTE 7
Till last year the company was accounting loss on chit in the year in
which chit was closed. From the current year the Company has changed
its policy and made provision for financial costs on existing chits
that accrued till 31st March 2014 on the basis of expected cash outflow
during the tenure of chits. The impact of change in this accounting
policy is Rs.53,44,464 which has been classified and disclosed under
Exceptional Items in the Statement of Profit and Loss of current year.
NOTE 8
During the year company has changed its accounting policy of
depreciation from straight line method to written down value method for
Mould , Building and Electric Installation with effect from
capitalisation date of assets. Difference in accumulated depreciation
as on 31st March''2013 due to change in policy amounting to
Rs.153,73,780 /- has been charged to current year Statement of Profit
and Loss as exceptional item . Further , due to change in depreciation
policy current year depreciation and amortization is higher by
Rs.61,00,713 Had the earlier policy of depreciation been followed, the
current year profit before tax would had been higher by Rs 92,73,067/-.
NOTE 9
The company''s manufacturing units/ undertakings are situated in tax
exemption zone and are entitled for 100% tax benefits u/s 80-IC of the
Income Tax Act for 5 year to 10 years ( at different units). The
management is of the view that all substantial all timing differences
shall be reversed/ adjusted within tax holiday period. Hence no
deferred tax due to timing difference has been recognized.
NOTE 10
All the figures have been rounded off to the nearest rupee
NOTE 11
Figures for the previous year have been regrouped /rearranged wherever
considered necessary to confirm to the year''s classification.
NOTE 12
Other additional information are either nil or not applicable.
Mar 31, 2013
NOTE 1
Contingent liabilities and commitments (to the extent not provided for)
(i) Contingent Liabilities -
Claims against the company not acknowledged as debt -
Excise Duty claim (with penalty) 2,744,828 942,750
FERA case pending at TRIBUNAL 1,500,000 1,500,000
Total 4,244,828 2,442,750
(ii) Commitments
Estimated amount of contracts remaining to be executed on capital
account and not provided for 10,568,158 13,362,500
(iii) Claim not acknowledged as debt 212,751 -
NOTE 2
Disclosure under Accounting Standard 15 (Revised): Employees Benefits
Employee Benefits
The Company has provided long-term employee benefits on the basis of
actuarial valuation done as per projected unit credit method.
NOTE 3
Trade Receivables / Payables are subject to confirmation. The
Management does not expect any material differences effecting financial
statements of the period.
NOTE 4
The accounts for the period have been preapred for 12 months ended on
31st March, 2013 which are nor comparable with the previous period of
11 months period ended on 31st March, 2012.
NOTE 5
Loss on Chit is accounted for in year chit is closed. Accordingly, the
loss for the current period for NIL- (Previous Period Rs. 739,600/-).
Balance of chits are subject to confirmation.
During the year company has not provided loss on running chit fund
schemes, as the amount of loss is undetermined due to the nature of
chit fund operation and the company has been following the policy of
accounting chit loss as the chit is closed.
NOTE 6
During the year company has changed its accounting policy of
depreciation from straight line method to written down value method
with effect from 1st April, 2012 for Plant & Machinery only. Difference
in accumulated depreciation as on 31st March, 2012 due to change in
policy in related to existing assets amounting to Rs. 356,97,561/- has
been charged to Statement of Profit and Loss as exceptional item.
Further, due to change in depreciation policy current year expenses
under the head ''Depreciation and Amortization'' is higher by Rs.
10,43,308/-. Had the earlier policy of depreciation been followed, the
current year profit before tax would had been higher by Rs. 367,40,869/-.
NOTE 7
The company''s manufacturing units / undertakings are situated in tax
exemption zone and are entitled for 100% tax benefits u/s 80-IC / 80 -
IE of the Income Tax Act for 5 year to 10 years (at different units).
The management is of the view that all timing differences shall be
reversed / adjusted within tax holiday period. Hence no deferred tax
liability due to timing difference has been recognized.
NOTE 8
The company has not provided excise duty on closing stock of finished
goods considerinmg it immaterial. Same is not having any impact on
financial perforamce and state of afffairs.
NOTE 9
All the figures have been rounded off to the nearest rupee
NOTE 10
Figures for the previous year have been regrouped / rearranged whreever
considered necessary to confirm to the year''s classification.
Mar 31, 2012
1) The company has only one class of equity shares. Each holder of
equity share is entitled to one vote per share. In the event of
liquidation of the company, the holders of the equity shares shall be
entitled to receive remaining assets of the company, after adjustment
of all preferential payments. The distribution will be made in the
proportion of holding of equity shares. The dividend proposed (if any)
by the board is subject to approval by the shareholders in the
following Annual General meeting.
2) Pursuant to the special resolutions passed in annual general meeting
held on 28th Sep, 2011:-
a) Company has increased authorized share capital from Rs. 10 Crores to Rs.
13 Crores
b) Company has subdivided each equity share of Rs. 10/- per share into10
equity shares of Rs. 1/- each. Consequently number of shares have
increased by ten times and face value reduced by ten times.
1. Term Loan represents loans taken for acquiring vehicles from Banks
and NBFCs at interest rate ranging from 12%-15% pa ,with maturity
period over one year and are secured by hypothecation of vehicles.
These loans are repayable in monthly installments. Loan Repayable
within 12 months have been considered as current liabilitiy.
2. Loan from related parties :-
There is no defined repayment period , however all the parties have
given undertaking that the loan amount will not be called in next 12
months.
The company has not received the required information from suppliers
regarding their status under the Micro Small and Medium Enterprises
Development Act 2006. Hence disclosures, if any, relating to amounts
unpaid as at the year end together with interest paid/payable, as
required under the Act, could not provided.
NOTE-1 (1)
The company made an investment in National Saving Certificates(NSC) ie
2 Certificates of Rs. 25000/ each in the name of Managing Director of the
company and the same has been pledged with sales tax authority at
Rudrapur (Uttaranchal) on behalf of the company. The interest accrued
on such investment will be accounted for on maturity.
NOTE 2
Contingent liabilities and commitments (to the extent not provided for)
(i) Contingent Liabilities -
(a) Claims against the company not acknowledged as debt - 214,000
(b) Excise Duty Claim 942,750 942,750
(c) FERA case pending at TRIBUNAL 1,500,000 1,500,000
(ii) Capital Commitments
(a) Estimated amount of contracts remaining to be executed on
capital account and not provided for net of advances if any. 24,279,500
6,508,000
A. Defined Benefit Plans:
The Gratuity and Leave encashment liability of the Company is
Non-funded. Hence reconciliation of fair value of plan assets and
obligation are not required.
a) EPS for the current financial period is for 11 months (previous
period 7 months) and not annualized.
b) Previous period EPS have been adjusted to give effect of splitting
of shares from face value of Rs. 10 to Rs. 1 per share by restating
previous period oustanding no of shares.
NOTE 3
RELATED PARTY DISCLOSURES
During the year, the company entered into transactions with related
parties. List of related parties along with nature and value of
transactions and balances as at 31st March, 2012 are presented below:
NOTE 4
The company's manufacture facility is located in excise exempted
industrial area. During the period no manufacuring was carried out at
any other manufacturing facility, hence neither excise duty on
manufacturing has been levied nor provided on closing stock.
NOTE 5
Loss on Chit is accounting for in the year in which chit is closed. The
loss for the current period for Rs. 7,39,600 (Previous Period Rs. Nil).
During current period the company has taken chits of Rs. 1,23,50,000.
NOTE 6
The company is liable to pay MAT under section 115-JB of IT Act.
Current year tax-MAT has been provided and MAT credit has been
recognised in the books.
NOTE 7
All the figures have been rounded off to the nearest rupee
NOTE 8
Figures for the previous year have been regrouped /rearranged wherever
considered necessary to confirm to the year's classification.
Sep 30, 2010
1. The company was declared sick on 14.01.06 by order of BIFR,
Bench-I, New Delhi and had furnished a detailed Rehabilitation Scheme
to Operating Agency i.e. Punjab National Bank. Subsequently revised
reschedule of OTS amount was submitted to Haryana State Industrial
Development Corporation and Punjab National Bank which has been
approved by them.
2. Company entered in one time settlement (OTS) of the loans taken
from Punjab National Bank (PNB) vide letter dated 28.02.07,
subsequently revised vide letter dated 28.01.2009 and 08.06.2009 for a
sum of Rs.525 lacs and Haryana State Industrial and Infrastructure
Development Corporation (HSIIDC) vide letter dated 15.10.08 for Rs
151.69 lacs subsequently revised vide letter dated 22.04.09 and
12.05.09 on complying with the certain terms and conditions. Loan
outstanding for payment under OTS as on 30th September 2010 is
Rs.131.93 lacs to PNB and Rs.29.47 lacs to HSIIDC.
3. Interest accrued and due to PNB includes Rs.1225.48 lacs to be
waived on successful compliance of the terms and conditions of OTS,
have not been reversed on account of prudence. The Company is paying
interest only on OTS amount finalized by the bank.
4. As per the BIFR Order dated July 19, 2010, the company has reduced
its existed share capital by 90% and then consolidated every ten equity
shares of Rs. 1/- each into one equity share of Rs. 10/- each fully
paid up of in terms of Sec 18 (2) (f) of the SICA. Before this
reduction, the number of shares were 68,65,000 and afterwards the
number of shares are 6,86,500.
5. Interest accrued and due ( till the date of OTS ) to HSIIDC Rs.
540.03 lacs has been written back in the books on successful compliance
of the terms and conditions of OTS. Write back of interest liability
included in other income. As the dues of HSIDC were paid on 22nd
Nov2010 and received no dues confirmation.
6. Pursuant to the BIFR order dated 19th July2010 the company has
received Rs.150 lacs as share application money from director pending
for allotment into equity shares of the company at par .
7. Pursuant to the BIFR order dated 19th July2010 the promoters and
related parties have brought in Rs.249 lacs to finance the cost of
scheme or any short fall in cash generation to meet the repayment
obligation to Financial Institutions / Banks. This amount has been
included under unsecured loans and shall be adjusted into equity on
subsequent date as per consent of the promoter.
8. Difference of Rs.327,500 /- of earlier years in share suspense
account , being reconciliation of allotment money has been reconciled
during the year.
9. Contingent Liabilities
The contingent liabilities as on 30th September, 2010 are Rs 57.76 lacs
(previous year Rs.256.11 lacs). This consists of the following:-
a) Excise Duty claims - Rs.15.43 lacs (Previous year Rs.79.52 lacs)
b) Contingent liability of Rs 25.24 lacs (Previous year Rs.25.24 lacs)
against demand by Haryana Government for non- compliance by the company
with state capital subsidy scheme
c) Demand under FERA - Rs.15.00 lacs (Previous year Rs. 150.00 lacs).
d) Other claims not acknowledged as debt - Rs. 2.09 lacs (Rs. 1.35
lacs)
10. Capital Commitment
Estimated amount of Contracts remaining to be executed on Capital
Accounts (net of advances) and not provided for Rs. 365.40 lacs
(Previous Year Rs. 25.79 lacs).
11. Provision for Excise duty on closing finished goods has not been
made on the goods manufactured in the plant where Excise Duty has been
exempted.
12. Excise duty on sale of finished goods has not been charged where
excise duty is exempted due to establishment of plant in backward area.
Such exempted sales comprises of 99.49% (Previous Year 99.5%) of total
sales. Similarly, excise duty paid on procurement of Raw Materials and
other capital goods are considered as part of acquisition cost wherever
not recoverable from authorities.
13. Closing Balance of Secured Loan form Punjab National Bank is
subject to confirmation.
14. In view of the management, all current assets, loans and advances
have a value on realization in the ordinary course of business at least
equal to the amount at which they are stated.
15. The company made an investment in National Saving Certificate
(NSC) in the name of Managing Director of the company and the same were
pledged with Sales Tax Authority at Rudrapur (Uttaranchal) on behalf of
the company.
16. Managerial Remuneration paid / payable for the period ended
30.09.10 to Managing Director of the Company is in accordance with
Approval letter No.1/456/2005-CL-VII dated 20.01.2006 of the Central
Government under Section 269, 198(4)/309(3) & 637AA of the Companies
Act, 1956 and pursuant to special Resolution passed by the Shareholders
at their Extra ordinary General Meeting held on 01-09-2010.
17. Segment Information
Company discontinued its Toy Trading operations during 2006-07 having
different risks and rewards as compared to the business of
manufacturing Pet bottles / Jars and Caps for Pet bottles / Jars for
domestic markets. Debtors and creditors outstanding relating to the
discontinued segment does not qualify to be disclosed as per the
criteria of Reportable segment as per the Accounting Standard on
Segment Reporting (AS-17). Hence Disclosures have not been made.
Further, the companys chit fund business also not qualified to be
reported as a reportable segment.
18. Related Party Transactions *
During the year, the company entered into transactions with related
parties. List of related parties along with nature and volume of
transactions and balances as at 30th September, 2010 are presented
below:
1. Key Management Personnel(KMP) Mr. K.S. Rao (Managing Director)
2. Relatives of Key Management
Personnel Mrs. K. Pratibha Rao (Wife ofMD)
Mr. K.Satish Rao (Son of MD)
3. Enterprise over which KMP
and their relatives Ganapati Polymers Limited
are able to exercise significant
influence Innovative Pet Containers Limited
Innovative Datamatics Limited
19. The company has not received the required information from
suppliers regarding their status under the Micro, Small and Medium
Enterprises Development Act, 2006. Hence disclosures, if any, relating
to amounts unpaid as at the year end together with interest
paid/payable, as required, under the Act, have not been made.
20. Bank accounts include balance of one bank account which is
inoperative and subject to confirmation.
21. Debtors amounting to Rs. 670.30 Lacs ( gross) and creditors
amounting to Rs.464.66 Lacs are subject to the confirmation. The
management does not expect any material difference affecting the
financial statement for the period.
22. Loss on chit is accounted for in the year chit is closed. The loss
for the current period for Rs. NIL (Previous year Rs.1.96 Lacs).
During current period , company has taken chits of Rs.67.80 Lacs
included under unsecured loan. Balance of chits are subject to
confirmation.
23. Current Year figures are for 18 Months, hence not comparable with
Previous Year 12 Months figure.
24. All the figures have been rounded off to the nearest Rupee.
25. Figures for the previous year have been regrouped wherever
considered necessary to conform to this years classification.
As per our report of even date attached