Home  »  Company  »  Pasupati Acrylon  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Pasupati Acrylon Ltd.

Mar 31, 2015

1. Share Capital

a) Authorised

@ Does not include 15800 Shares (Previous year 15800 Shares) forfeited in earlier years, amount forfeited Rs.0.79 lacs (Previous year Rs.0.79 lacs) included in share capital subscribed and paid up.

Presently no options are available on un-issued share capital except convertibility clause(s), which can be exercised by the Financial Institution(s) in terms of loan agreement(s).

Details of shares in the company held by each shareholder holding more than 5% of shares is as under:

(a) Depreciation amounting to Rs. 48.08 Lac (net of deferred tax asset of Rs. 21.50 lac) has been debited to opening balance of profit and loss account, in case of assets where remaining useful life is Nil in compliance with Schedule II of the Companies Act, 2013.

a) Loans of Rs.Nil (Previous year Rs.281.66 Lacs) are secured interse on pari-passu basis by way of mortgage of immovable properties and hypothecation of all moveable properties (save and except book debts) both present and future subject to prior charges created in favour of company''s bankers for working capital facilities and further guaranteed by the managing director.

b) Secured by hypothecation of specified assets acquired out of the loan amount.

c) Loan of Rs.998 Lacs (previous year Rs.1400 lacs) are secured by 1st charge on New Plant & Machinery on pari-passu basis. 2nd Pari- passu charge by way of hypothecation of current assets of the Company, subject to existing charge of working capital bankers and assignment of project related documents, contract right interest, insurance contracts etc. and further guaranteed by the Managing Director.

There is no default as on the Balance Sheet date in repayment of loans and interest.

The above loans are repayable as follows:

(a) Secured by hypothecation of book debts, raw-material, finished goods, semi-finished goods, consumable stores and spares including in transit and also secured by a second charge by way of mortgage of immovable properties both present and future and further guaranteed by the Managing Director.

a) Loans of Rs. 281.92 Lacs (Previous year Rs.263.92 Lacs) are secured interse on pari-passu basis by way of mortgage of immovable properties and hypothecation of all moveable properties (save and except book debts) both present and future subject to prior charges created in favour of company''s bankers for working capital facilities and further guaranteed by the Managing Director.

b) Loan of Rs.400 Lacs(Previous year Rs.400 Lacs) are secured by 1st charge on New Plant & Machinery on pari-passu basis. 2nd Pari- passu charge by way of hypothecation of current assets of the Company, subject to existing charge of working capital bankers and assignment of project related documents, contract right interest, insurance contracts etc. and further guaranteed by the Managing Director

c) Vehicle Loan of Rs.2.06 Lacs (Previous year Rs. 25.09 Lacs ) Secured by hypothecation of specified assets acquired out of the loan amount.

$ Includes depreciation on revaluation of Rs. 727.05 Lacs (Previous Year Rs.738.01 Lacs) Netted from revaluation reserve.

# Depreciation amounting to Rs. 69.58 Lac has been debited to opening balance of profit and loss account, in case of assets where remaining useful life is Nil in compliance with Schedule II of the Companies Act, 2013.

a) i) Since separate breakup of Rs. 62.95 lacs being cost of office premises, furniture & fixtures and air conditioners at Mumbai are not available, depreciation has been provided on total cost as office premises. ii) Includes cost of 5 shares (Previous year 5 shares) Rs.252 (Previous year Rs.252) in Arcadia Premises Co-operative Society Ltd., Mumbai.

b) The company revalued its imported plant & machinery as on 31.03.2001 based on the valuation made by an approved valuer. Accordingly, the original cost of such assets resulted in gross increase in the value of assets over their original cost by Rs.8585.83 lacs, increase in depreciation upto 30.03.2001 by Rs.2682.44 Lacs and thereby net increase in replacement cost by Rs.5903.39 Lacs. The net increase of Rs. 5903.39 Lacs in the value of such plant & machinery had been credited to revaluation reserve account.

c) Revaluation of indigenous plant & machinery was carried out as on 31.03.2002 by an approved valuer. The revaluation resulted in a gross increase in the value of assets over their original cost by Rs.3981.77 Lacs, increase in depreciation upto 30.03.2002 by Rs.1930.53 Lacs and thereby net increase in replacement cost by Rs.2051.24 Lacs which has been taken as increase in the value of plant & machinery as on 31.03.2002 by creating a revaluation reserve to that an extent

d) During the Year based on technical evaluaiton Depreciation has been provided taking Plant & Machinery & Captive Power Plant Life to 18 years instead of 25 years as prescribed in the Schedule II of the Companies Act, 2013. Had the life be taken to 25 years the depreciaton would have been Rs. 514.10 Lacs, instead of Rs.732.16 Lacs, resulting in excess charge of depreciation during the year by Rs.218.06 Lac.

e) Refer note No.30 (b) for impairment of Assets during the year

a) In terms of Accounting Standard -22, net Deferred Tax (Liability) of (Rs.667.09 Lac) (Previous Year Liability of Rs.476.08 Lac) has been recognized during the year and consequently Deferred Tax Assets as on 31st March, 2015 stands at Rs 1687.51 Lac (Previous year Rs. 2354.60 Lac) there is carried forward unabsorbed depreciation and business loss at the balance sheet date. Based on future profitability projections, the company is certain that there would be sufficient taxable income in future, to claim the above tax credit.

b) Deferred Tax Assets Rs.21.50 lac h as been debited against opening balance of Profit & Loss account.

*includes goods in transit Rs.4956.05 Lacs (Previous year Rs.5119.38 Lacs ) ** includes goods in transit Rs.2.88 Lacs (Previous year Rs.3.75 Lacs)

a) As reported in earlier years, an employee of the Company defrauded Rs.126 Lacs (Previous year Rs.126 Lacs) in connivance with certain customers. Criminal proceedings against the employee is being pursued.

b) Certain debit balances of sundry debtors are subject to confirmation and reconciliation. Difference, if any, shall be accounted for on such reconciliation.

a) Effective from 1st April 2014, the Company has revised its estimated useful life of fixed assets, wherever appropriate, on the basis of useful life specified in Schedule II of the Companies Act, 2013. The carrying amount as on 1st April 2014 is depreciated over the revised remaining useful life. As a result of these changes, the depreciation charged for the period ended 31st March, 2015 is higher by Rs.46.97 Lac and the effect relating to the period prior to 1st April, 2014 is Rs.48.08 Lac (Net of Deferred Tax Assets of Rs.21.50 Lac) which has been debited to opening balance of Profit & Loss account.

b) During the Year based on technical evaluation Depreciation has been provided considering useful life of Plant & Machinery & Captive Power Plant to 18 years instead of 25 years as prescribed in the Schedule II of the Companies Act, 2013. Had the useful life been taken as 25 years, the depreciaton would have been Rs. 514.10 Lacs, instead of Rs.732.16 Lacs, resulting in excess charge of depreciation during the year by Rs.218.06 Lac.

a) In earlier year, Company had detected a fraud committed by an employee amounting to Rs. 145.93 Lacs. An FIR was filed and said employee was arrested. Later with the intervention of court a settlement arrived at and Rs. 140.01 lacs has been recovered by way of cash and confiscation of various properties. For balance of Rs. 5.92 lacs, the company filed a claim with ICICI Lombard under Fidelity Guarantee Insurance Policy which has been received subsequently. The amount recovered in respect of earlier years has been credited to exceptional income.

b) In pursuance of accounting standard 28 on impairment of assets (AS-28) issued by the Institute of Chartered Accountants of India, the company has reviewed the future earings of its cash generating units. Based on such review the company has accounted for the impairment loss on certain machinery having value of Rs.479.68 Lacs due to change in technology. In absence of reserves Rs.347.11 Lacs impairment loss has been reflected under exceptional item.

2. Related Party Disclosure:

Related Party disclosures, as required by AS-18 "Related Party Disclosures" are given below:- 1. Relationship

(i) Subsidiaries Companies NIL

(ii) Joint Venture/Joint Control & Associates NIL

(iii) Key management personnel (Whole Time Directors)

Mr.Vineet Jain-Managing Director Mr. Rakesh Mundra-Director (Finance)

Relatives of key management personnel (with whom transactions have taken place.) Mr.Manish Jain-Brother

(iv) Enterprises over which key management personnel/relative have significant influence

Prabhat Capital Services Ltd Accurex Traders Pvt. Ltd.

Gurukripa Finvest Pvt Ltd Ujjwal Commodities Pvt.Ltd.

Sulabh Plantation & Finance Pvt.Ltd.

(v) Other related parties

Pasupati Officer''s Provident Fund Trust

The Pasupati Acrylon Ltd. Employees Superannuation Scheme The Pasupati Acrylon Ltd. Employees Group Gratuity Scheme

Note: Related party relationship is as identified by the company and relied upon by the auditors.

3. It is the management''s opinion that since the company is exclusively engaged in the activity of manufacture of Acrylic Fibre, Tow/ Tops, which are considered to constitute a single reportable segment in the context of Accounting Standard on "Segment Reporting" issued by the Institute of Chartered Accountants of India.

4. Foreign Currency exposure that are not hedged by derivative instrument or forward contracts as at 31.3.2015 amounts to Rs.10837.98 Lac (US$ 172.58 Lac) (Previous year Rs.10919.36 Lac) (US$ 180.75 Lac)

5. Figures for the previous year have been regrouped / rearranged wherever considered necessary.

6. Value of imported / indigenous Raw materials, Stores & spares consumed


Mar 31, 2014

1. Contingent Liabilities and Commitments (To the extent not provided for)

Particulars Amount (Rs./Lacs) As at 31.3.2014 As at 31.3.2013

a) Estimated amount of contracts - - remaining to be executed on capital account and not provided for (net of advances)

b) Contingent liabilities not provided for in respect of

i.Guarantee(s) given by banks and financial institutions 114.50 554.80

ii.Letters of Credit outstanding 108.74 829.88

iii.Sales Tax/Excise Duty/Custom Duty/Other Statutory dues/ 519.26 555.56

Service Tax disputed

iv.Labour Cases disputed In appeal 10.89 16.78

2. In the opinion of the board the assets other than fixed assets have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

For year ended 31st March 2014 Remuneration paid to Managing Director is in accordance with Schedule XIII of the Companies Act, 1956. In respect ot year ended 31st March 2013, upto 30.09.2012 it has been paid as per Central Government''s approval and from 1.10.12 to 31.03.13 as per Schedule XIII of the Companies Act, 1956.

The Estimates of rate of future salary increase takes account inflation, seniority, promotion and other relevant factors on long term basis. The discount rate is generally based upon the market yields available on Government bonds at the accounting date with a term that matches that of liability. The above information is certified by the actuary.

a) During the year Company detected a fraud committed by an employee amounting to Rs. 145.93 Lacs. An FIR was filed and said employee was arrested. Later with the intervention of court a settlement arrived at and Rs. 140.01 lacs has been recovered by way of cash and confiscation of various properties. For balance of Rs. 5.92 lacs, the company filed a claim with ICICI Lombard under Fidelity Guarantee Insurance Policy which has been received subsequently. The amount recovered in respect of earlier years has been credited to exceptional income.

b) Also refer Note No. 33.

3. Related Party Disclosure:

Related Party disclosures, as required by AS-18 "Related Party Disclosures" are given below:- 1. Relationship

(i) Subsidiaries Companies NIL

(ii) Joint Venture/Joint Control & Associates NIL

(iii) Key management personnel (Whole Time Directors)

Mr.Vineet Jain-Managing Director Mr.Rakesh Mundra-Director (Finance)

Relatives of key management personnel (with whom transactions have taken place.) Mr.Manish Jain-Brother (iv) Enterprises over which key management personnel/relative have significant influence

Prabhat Capital Services Ltd Accurex Traders Pvt. Ltd.

Gurukripa Finvest Pvt Ltd Ujjwal Commodities Pvt.Ltd.

Sulabh Plantation & Finance Pvt.Ltd.

(v) Other related parties

Pasupati Officer''s Provident Fund Trust

The Pasupati Acrylon Ltd. Employees Superannuation Scheme

The Pasupati Acrylon Ltd. Employees Group Gratuity Scheme

2. The following transactions were carried out with related parties in the ordinary course of business.

4 . Depreciation on new plant & machinery and power plant which was hitherto provided at straight line method has been recomputed at the rates prescribed in schedule XIV of the Companies Act, 1956 on written down value method with retrospective effect. As a result of above change:-(i) The increase in depreciation of Rs.454.86 Lacs in respect of earlier year has been shown as an exceptional item in order to reflect a more appropriate presentation of financial statements.(ii) Deffered tax asset of Rs.140.55 Lacs on said amount has been adjusted against the current year''s Deferred Tax Liability.Consequently depreciation for the year is higher by Rs.345.89 Lacs, the profit after tax including exceptional item is lower by Rs.553.33 Lacs & deferred tax asset higher by Rs.247.43 Lacs (includes Rs.140.55 Lac for earlier year) and Fixed Assets is lower by Rs.800.76 Lacs respectively

5. It is the management''s opinion that since the company is exclusively engaged in the activity of manufacture of Acrylic Fibre, Tow/ Tops, which are considered to constitute a single reportable segment in the context of Accounting Standard on "Segment Reporting" issued by the Institute of Chartered Accountants of India.

6. Foreign Currency exposure that are not hedged by derivative instrument or forward contracts as at 31.3.2014 amounts to Rs.10919.36 Lac (US$ 180.75 Lac) (Previous year Rs.13276.18 Lac; US$ 244.50 Lac).

7. Figures for the previous year have been regrouped / rearranged wherever considered necessary.

8. Company has during the year spent Rs. 32.45 lacs (Previous Year Rs. Nil) on Corporate Social Responsibility activities in Thakurdwara area.


Mar 31, 2013

1. In the opinion of the board the assets other than fixed assets have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

2. Related Party Disclosure:

Related Party disclosures, as required by AS-18 "Related Party Disclosures" are given below:-

1. Relationship

(i) Subsidiaries Companies NIL

(ii) Joint Venture/Joint Control & Associates NIL

(iii) Key management personnel (Whole Time Directors)

Mr.Vineet Jain-Managing Director Mr. Rakesh Mundra-Director (Finance)

Relatives of key management personnel (with whom transactions have taken place.) Mr.Manish Jain-Brother

(iv) Enterprises over which key management personnel/relative have significant influence

Prabhat Capital Services Ltd Accurex Traders Pvt. Ltd.

Gurukripa Finvest Pvt Ltd Ujjwal Commodities Pvt.Ltd.

Sulabh Plantation & Finance Pvt.Ltd.

(iv) Other related parties

Pasupati Officer''s Provident Fund Trust

The Pasupati Acrylon Ltd. Employees Superannuation Scheme The Pasupati Acrylon Ltd. Employees Group Gratuity Scheme

3. It is the management''s opinion that since the company is exclusively engaged in the activity of manufacture of Acrylic Fibre, Tow/ Tops, which are considered to constitute a single reportable segment in the context of Accounting Standard on "Segment Reporting" issued by the Institute of Chartered Accountants of India.

4. Foreign Currency exposure that are not hedged by derivative instrument or forward contracts as at 31.03.2013 amount to Rs.13276.18 lacs (US$ 244.50 Lacs ) (Previous Year Rs. 13428.22 Lacs - US$ 263.92 Lacs)

5. Figures for the previous year have been regrouped / rearranged wherever considered necessary.

6. Value of imported / indigenous Raw materials, Stores & spares consumed


Mar 31, 2012

1. Figures in brackets represent cash outflow.

2. Cash flow does not include non cash items.

3. Cash and cash equivalents includes balance in fixed deposit/margin money account Rs.1272.07 Lacs(Previous Year Rs.724.81 Lacs)

1. Long Term Borrowings

a) Loans of Rs.784.97 Lacs (Previous year Rs.1003.21 lacs) are secured interse on pari-passu basis by way of mortgage of immovable properties and hypothecation of all moveable properties (save and except book debts) both present and future subject to prior charges created in favour of company's bankers for working capital facilities and further guaranteed by the managing director.

b) Secured by hypothecation of specified assets acquired out of the loan amount.

c) Loan of Rs.2200 Lacs(previous year Rs.1500 lacs) are secured by 1" charge on New Plant & Machinery on pari-passu basis. 2nd Pari-passu charge by way of hypothecation of current assets of the Company, subject to existing charge of working capital bankers and assignment of project related documents, contract right interest, insurance contracts etc. and further guaranteed by the Managing Director.

There is no default as on the Balance Sheet date in repayment of loans and interest.

(a) Secured by hypothecation of book debts, raw-material, finished goods, semi-finished goods, consumable stores and spares including in transit and also secured by a second charge by way of mortgage of immovable properties both present and future and further guaranteed by the managing director.

The Company has not received intimation from vendors regarding the status under the Micro, Small and Medium Enterprises Development Act, 2006 and therefore, disclosures under this Act have not been given.

2. Other Current Liabilities

a) Loans of Rs. 218.24 Lacs (previous year Rs.258.12 Lacs) are secured interse on pari-passu basis by way of mortgage of immovable properties and hypothecation of all moveable properties (save and except book debts) both present and future subject to prior charges created in favour of company's bankers for working capital facilities and further guaranteed by the Managing Director.

b) Loan of Rs.400 Lacs(previous year Rs.Nil) are secured by 1st charge on New Plant & Machinery on pari-passu basis. 2nd Pari- passu charge by way of hypothecation of current assets of the Company, subject to existing charge of working capital bankers and assignment of project related documents, contract right interest, insurance contracts etc. and further guaranteed by the Managing Director

c) Vehicle Loan of Rs. 19.38 Lacs (Previous year Rs. 17.00 Lacs ) Secured by hypothecation of specified assets acquired out of the loan amount.

a) Include Rs. Nil (Previous year Rs.9.90 Lacs) towards land for housing colony held by the company under a 30 year lease agreement from 12.10.1992. In the current year, lease has been surrendered.

b) i) Since separate breakup of Rs. 62.95 lacs being cost of office premises, furniture & fixtures and air conditioners at Mumbai are not available, depreciation has been provided on total cost as office premises.

ii) Includes cost of 5 shares (previous year 5 shares) Rs.252 (previous year Rs.252) in Arcadia Premises Co-operative Society Ltd., Mumbai.

c) The company revalued its imported plant & machinery as on 31.03.2001 based on the valuation made by an approved valuer. Accordingly, the original cost of such assets resulted in gross increase in the value of assets over their original cost by Rs.8585.83 lacs, increase in depreciation upto 30.03.2001 by Rs.2682.44 Lacs and thereby net increase in replacement cost by Rs.5903.39 Lacs. The net increase of Rs.5903.29 Lacs in the value of such plant & machinery had been credited to revaluation reserve account.

d) Revaluation of indigenous plant & machinery was carried out as on 31.03.2002 by an approved valuer. The revaluation resulted in a gross increase in the value of assets over their original cost by Rs.3981.77 Lacs, increase in depreciation upto 30.03.2002 by Rs.1930.53 Lacs and thereby net increase in replacement cost by Rs.2051.24 Lacs which has been taken as increase in the value of plant & machinery as on 31.03.2002 by creating a revaluation reserve to that extent

3. Deferred Tax Assets

In terms of Accounting Standard -22, net deferred tax assets (DTA) of Rs.2395.83 Lacs (Previous Year : Deferred Tax Assets of Rs.2015.10 lacs) has been recognized during the year and consequently DTA as on March 3T' 2012 stands at Rs.2395.83 Lacs (Previous year Rs. 2015.10 Lacs) there is carried forward unabsorbed depreciation and business loss at the balance sheet date. However, based on future profitability projections, the company is virtually certain that there would be sufficient taxable income in future, to claim the above tax credit. Deferred tax assets of Rs. 2015.10 Lacs relating to the period up to 31st March 2011 has been credited to opening debit balance of profit & Loss account.

a. As reported in earlier years, an employee of the Company defrauded Rs.126 Lacs (Previous year Rs.126 Lacs) in connivance with certain customers. Legal proceedings against the employee and customers are being pursued. The defrauded amount has been fully provided in the year of fraud.

b. Certain debit balances of sundry debtors are subject to confirmation and reconciliation. Difference, if any, shall be accounted for on such reconciliation.

(a) Includes Rs. Nil (Previous year Rs.127.21 lacs in Trust Retention Account for Capital Expenditure) Bank Deposits with more than 12 months maturity Rs. 508.42 Lacs (Previous year Rs. 125.02 Lacs).

4. Short Term Loans & Advances

(Unsecured-considered good)

(a) As reported in earlier years, DEPB licenses of Rs. 27.01 Lacs (Previous Year Rs. 27.01 Lacs) Purchased were found forged. The amount was provided for in the year of fraud. Legal proceedings are being pursued for recovery of balance amount.

5. Other Current Assets

During the year Excise duty payable on closing stock of Rs.376.80 lacs (Previous Period Rs. 506.51 lacs) has been adjusted against balance with Custom & Excise. 21. Contingent Liabilities and Commitments (To the extent not provided for) Un-provided contingent liabilities are disclosed in the accounts by way of notes giving nature and quantum of such liabilities.

6. In the opinion of the board the assets other than fixed assets have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

7. Earning Per Share (EPS)

8. Related Party Disclosure:

Related Party disclosures, as required by AS-18 "Related Party Disclosures" are given below:-

1. Relationship

(i) Subsidiaries Companies NIL

(ii) Joint Venture/Joint Control & Associates NIL

(iii) Key management personnel (Whole Time Directors)

Mr.Vineet Jain-Managing Director

Mr. Rakesh Mundra-Director (Finance)

Mr. S.C. Malik, Director (Finance)

(w.e.f. 14.02.2012) (up to 16.01.2012)

Relatives of key management personnel (with whom transactions have taken place.) Mr.Manish Jain-Brother

(iv) Enterprises over which key management personnel/relative have significant influence Prabhat Capital Services Ltd, Gurukripa Finvest Pvt Ltd

Sulabh Plantation & Finance Pvt.Ltd. Accurex Traders Pvt. Ltd.

(v) Other related parties

Pasupati Officer's Provident Fund Trust

The Pasupati Acrylon Ltd. Employees Superannuation Scheme

The Pasupati Acrylon Ltd. Employees Group Gratuity Scheme

Note: Related party relationship is as identified by the company and relied upon by the auditors.

9. It is the management's opinion that since the company is exclusively engaged in the activity of manufacture of Acrylic Fibre, Tow/Tops, which are considered to constitute a single reportable segment in the context of Accounting Standard on "Segment Reporting" issued by the Institute of Chartered Accountants of India.

8. Figures for the previous year have been regrouped / rearranged wherever considered necessary.

9. Value of imported / indigenous Raw materials, Stores & spares consumed.

 
Subscribe now to get personal finance updates in your inbox!