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Notes to Accounts of Innovative Tech Pack Ltd.

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

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