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Notes to Accounts of Polycon International Ltd.

Mar 31, 2015

1. Term Loan from SBBJ is secured by way of First Charge on certain Plant & Machinery acquired out of said term loan and personal guarantee of two Directors of the Company and also secured by way of second charge on entire present & future current & fixed assets of the Company. The said loan is repayable in quarterly installments of Rs. 14.65 Lac. The last of which is due in June, 2020. Rate of Interest on Term Loan is at 13.25% P.A.

2.1 Term Loan from RFC

2.2 Security Details

Term Loans from Rajasthan Financial Corporation (RFC) are secured by equitable mortgage on Fixed Assets of the company both present & future situated at Jaipur and Chopanki (Bhiwadi) and also secured by personal guarantee of two Directors of the company

2.3 Car Loan from Kotak Mahindra Prime Ltd. is secured by hypothecation of vehicle purchased out of said loan. The said loan is repayable in monthly installment of Rs. 30200/- (including Interest) The last of which is due in June, 2018. Rate of interest on Car Loan is @ 12.60% P.A.

2.4 Car Loan from ICICI Bank Ltd. is secured by hypothecation of vehicle purchased out of said loan. The said loan is repayable in monthly installment of Rs. 62000/- (including Interest). The last of which is due in February, 2016. Rate of interest on Car Loan is @ 10.4%P.A.

3. Secured against hypothecation of all current and noncurrent assets including stock of raw materials, work in process, finished goods and book debts both present and future.

4. 1st charge over Plant & Machinery financed for different Machineries installed at Jaipur & Bhiwadi Plant.

5. 2nd charge on fixed assets of the company i.e all immovable properties held with the company under its Jaipur & Bhiwadi Plant.

6. Cash Credit Limit from banks Carry Interest ranging between 12% - 13% p.a, computed on monthly bases on actual amount utilized, and are repayable on demand.

*Dues to Micro, small and Medium enterprises have been determined to the extent such parties have been identified on the basis of information collected. The total amount remaining unpaid as at the end of the year is Rs. 28.81 lacs (Previous Year 56.34 lacs) (Refer Note 31)

7. SEGMENT INFORMATION Primary

The Company is engaged in manufacture and sale of PET and other plastic products which constitutes single business segment. As per management perspective the risks and returns from its sales do not materially vary geographically. Accordingly, there are no other business segments to be reported as per AS-17 issued under the Companies (Accounting Standards) Rules, 2006.

8. Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Develop- ment Act, 2006

The Ministry of Micro, Small & Medium Enterprises has issued an office Memorandum Dated 26.08.2008, which recommends that Micro and small Enterprises Should mention in their correspondence with its customers, the entrepreneurs memorandum number as allocated after filling of the memorandum. Accordingly. the disclosure in respect of the amounts payable to such enterprises as on 31.3.2015 and 31.03.2014 has been made in the financial statements based on the information provided by the management. Based on the information currently available with the company, There are no dues payable to micro and Small Suppliers as defined in the Micro, Small And Medium Enterprises Development Act,2006.

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the management. This has been relied upon by the auditors.

Inventories, loans & advances, trade receivables/payables and other current/non-current assets are reviewed annually and in the opinion of the Management do not have a value on realization in the ordinary course of business, less than the amount at which they are stated in the Balance Sheet. The response to letters sent by the Company requesting confirmation of balances has been insignificant. In the management's opinion, in the event of any disparity in the balances, any consequential adjustments required on reconciliation of the balances, will not be material in relation to the financial statements of the Company and the same will be adjusted in the financial statements as and when the reconciliation is completed.

A fire broke out on 11th February, 2013 at Company's premises located at F-954(A), Chopanki Industrial Area, Bhiwadi, Distt. Alwar resulted in losses amounting to Rs. 49.01 lacs for inventories and Rs. 232.77 lacs for fixed assets. The claim had been lodged witht he insurance company considering the re- statement clause covered under the insurance Policy Cover Note issued by the Insurance Company. Against the said claim, company had received Rs 37.24 lacs and Rs 92.67 lacs towards inventories and fixed assets respectively. Now for the balance claim, company had approached to insurance company to revocation of arbitration clause and matter still is pending with the insurance company.

Pending receipt of claim from the insurance company amounting to Rs 70.29 lacs both for inventories and fixed assets as per books (Rs 151.87 lacs as per Re-statement clause of Insurance co.) has been shown as insurance claim receivable as Long term loans and advances under the head current assets. Short fall/surplus, if any, will be accounted for when the claim is finally settled by the arbitrators.

Note 9

Previous year's figures have been regrouped/reclassified wherever necessary to correspond with the current year's classification/disclosure.

Note 10

The Company carries Rs. 94.98 Lacs as receivables from demerged company M/S Vinayak Polycon International Limited by virtue of demerger scheme of Polycon International Limited approved by Rajasthan High Court order dated

Note 11 RELATED PARTY TRANSACTIONS

Names of related parties & relationship

Names of related parties & relationship

a) Jai Sinter Polycon Pvt. Ltd. Relatives of Directors are Director

b) Crystal Packaging Relatives of Directors are Partner

c) Bassi Mechanical Works Relatives of Directors are Partner

d) Shri Varun Baid Held office of profit

e) Ms Varsha Baid Held office of profit

Key Management Personnel (KMP)

Shri Lal Chand Baid

Shri Rajiv Baid

Enterprise over which key management personnel and their

relatives are able to exercise significant influence

Bassi Mechanical Works, Jaipur


Mar 31, 2014

Note 01 COMPANY INFORMATION

POLYCON International Limited (the Company) is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed at the Bombay stock Exchange. The company is engaged in the manufacturing and trading of PET Items like PET Bottles, PET Jars, PET Preforms, Caps & Lids and LLDPE Rotomoulding Water Storage Tanks, PVC Profiles, Sections etc. Its manufacturing facilities are located in Jaipur & Bhiwadi, Rajasthan.

Note 02 SHARE CAPITAL

b) Terms/rights attached to equity shares :

The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each equity shareholder is entitled to one vote per share. The Board of Directors have not declared Dividend during the year under review due to marginal profit. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amount in proportion to their shareholding.

2.1 Term Loan from Bank is secured by way of First Charge on certain Plant & Machinery acquired out of said term loan and personal guarantee of two Directors of the Company and also secured by way of second charge on entire present & future current & fixed assets of the Company. The said loan is repayable in quarterly instalments. The last of which is due in June, 2020. Rate of Interest on Term Loan is at 13.25% P.A.

2.2 Term Loans from Rajasthan Financial Corporation (RFC) are secured by equitable mortgage on fixed assets of the company both present and future, situated at Jaipur and Chopanki, Bhiwadi and also secured by Personal Guarantee of two Directors of the Company. The said loan is repayable in quarterly instalments. The last of which is due in September, 2019. Rate of interest on Term Loans range from 10.25% to 13.50% P.A.

2.3 Car Loan from Kotak Mahindra Prime Ltd. is secured by hypothecation of vehicle purchased out of said loan. The said loan is repayable in monthlly instalments. The last of which is due in June, 2018. Rate of interest on Car Loan is @ 12.60% P.A.

2.4 Car Loan from ICICI Bank Ltd. is secured by hypothecation of vehicle purchased out of said loan. The said loan is repayable in monthlly instalments. The last of which is due in February, 2016. Rate of interest on Car Loan is @ 10.4% P.A.

Note 3 SEGMENT INFORMATION Primary

The Company is engaged in manufacture and sale of PET and other plastic products which constitutes single business segment. As per management perspective the risks and returns from its sales do not materially vary geographically. Accordingly, there are no other business segments to be reported as per AS-17 issued under the Companies (Accounting Standards) Rules, 2006.

Note 4 CONTINGENT LIABILITIES

(Rupees in Lacs) As at As at 31.3. 2014 31.3. 2013

In respect of :

a) Excise matters disputed in appeal 0.12 0.98

b) Sales tax matters disputed in appeal 0.97 0.97

c) Bank Guarantee issued in favour of HPCL - 8.00

vi) the amount of further interest due and payable even in the succeeding year, until such date when the interest dues as above are actually paid - -

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the management. This has been relied upon by the auditors.

Note 5

Inventories, loans & advances, trade receivables/payables and other current/non-current assets are reviewed annually and in the opinion of the Management do not have a value on realization in the ordinary course of business, less than the amount at which they are stated in the Balance Sheet.

The response to letters sent by the Company requesting confirmation of balances has been insignificant. In the management''s opinion, in the event of any disparity in the balances, any consequential adjustments required on reconciliation of the balances, will not be material in relation to the financial statements of the Company and the same will be adjusted in the financial statements as and when the reconciliation is completed.

Note 6

A fire broke out on 11th February, 2013 at Company''s premises located at F-954(A), Chopanki Industrial Area, Bhiwadi, Distt. Alwar resulted in losses amounting to Rs. 49.01 lac for inventories and Rs. 232.77lacs for fixed assets.

Further a massive fire take place on 01st February, 2014 at Company''s premises located at F-97,98,99 & G-96, Hirawala Industrial Area, Kanota, Jaipur resulted in losses amounting to Rs. 156.66 lacs for inventories and fixed assets. As these all assets were insured, hence corresponding claim for loss as per insurance policies have been filed with insurers. Pending receipt of claim for insurance company the amount has been shown as insurance claim receivables as short term loans and advances under current Assets. Short fall/surplus if any will be accounted for when the claim is settled by insurance companies.

Note 7 RELATED PARTY TRANSACTIONS Names of related parties & relationship

a) Jai Sinter Polycon Pvt. Ltd. Relatives of Directors are Director

b) Crystal Packaging Relatives of Directors are Partner

c) Bassi Mechanical Works Relatives of Directors are Partner

d) Shri Varun Baid Held office of profit

e) Ms Varsha Baid Held office of profit

Key Management Personnel (KMP)

Shri Lal Chand Baid

Shri Rajiv Baid

Enterprise over which key management personnel and their relatives are able to exercise significant influence Bassi Mechanical Works, Jaipur

Note 8

The Company is in the process of obtaining the Compliance Certificate regarding maintenance of Cost Accounting Records for the current financial year as required under Notification No. G.S.R. 429(E) dated 3rd June, 2011 issued by the Ministry of Corporate Affairs.

Note 9

Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classification/ disclosure.


Mar 31, 2013

Note 01 COMPANY INFORMATION

POLYCON International Limited (the Company) is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on the Bombay stock Exchange. The company is engaged in the manufacturing and trading of PET Items like PET Bottles, PET Jars, PET Preforms, Caps & Lids and LLDPE Rotomoulding Water Storage Tanks, PVC Profiles, Sections etc. Its manufacturing facilities are located in Jaipur & Bhiwadi, Rajasthan and Pantnagar, Uttrakhand.

Note 02 SEGMENT INFORMATION Primary

The Company is engaged in manufacture and sale of PET and other plastic products which constitutes single business segment. As per management perspective the risks and returns from its sales do not materially vary geographically. Accordingly, there are no other business segments to be reported as per AS-17 issued under the Companies (Accounting Standards) Rules, 2006.

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the management. This has been relied upon by the auditors. Note 32

Inventories, loans & advances, trade receivables/payables and other current/non-current assets are reviewed annually and in the opinion of the Management do not have a value on realization in the ordinary course of business, less than the amount at which they are stated in the Balance Sheet. The response to letters sent by the Company requesting confirmation of balances has been insignificant. In the management''s opinion, in the event of any disparity in the balances, any consequential adjustments required on reconciliation of the balances, will not be material in relation to the financial statements of the Company and the same will be adjusted in the financial statements as and when the reconciliation is completed. Note 33

A fire broke out on 11th February, 2013 at Company''s premises located at F-954(A), Chopanki Industrial Area, Bhiwadi, Distt.

Alwar resulted in losses amounting to Rs. 49.01 lac for inventories and Rs. 232.77lacs for fixed assets. As these assets were insured, hence correspponding claim for loss as per insurance policies have been filed with insurers. Pending receipt of Claims from insurance Company the amount has been shown as insurance claims receivables as short term loans and advance under current assets. Shortfall/surplus if any will be accounted for when the claim is settled by Insurance Companies. Note 34 RELATED PARTY TRANSACTIONS

Names of related parties & relationship

a) Jai Sinter Polycon Pvt. Ltd. Relatives of Directors are Director

b) Crystal Packaging Relatives of Directors are Partner

c) Shri Varun Baid Held office of profit

d) Ms Varsha Baid Held office of profit

Key Management Personnel (KMP)

Shri Lai Chand Baid, Shri Rajiv Baid

Note 03

The Company is in the process of obtaining the Compliance Certificate regarding maintenance of Cost Accounting Records for the current financial year as required under Notification No. G.S.R. 429(E) dated 3rd June, 2011 issued bythe Ministry of Corporate Affairs.

Note 04

The Revised Schedule-VI has become effective from 01st April, 2012 for the preparation of financial statements. This has sig- nificantly impacted the disclosure and presentation made in the financial statements. Previous year''s figures have been re- grouped/reclassified wherever necessary to correspond with the current year''s classification/disclosure.


Mar 31, 2012

Note 01 COMPANY INFORMATION

POLYCON International Limited (the Company) is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on the Bombay stock Exchange. The company is engaged in the manufacturing and trading of PET Items like PET Bottles, PET Jars, PET Preforms, Caps & Lids and LLDPE Rotomoulding Water Storage Tanks, PVC Profiles, Sections etc. Its manufacturing facilities are located in Jaipur & Bhiwadi, Rajasthan and Pant agar, Ultra hand.

a) Terms/rights attached to equity shares :

The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each equity shareholder is entitled to one vote per share. The Board of Directors not declared Dividend during the year under review due to marginal profit. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amount in proportion to their shareholding.

1 Term Loan from Bank is secured by way of First Charge on certain Plant & Machinery acquired out of said term loan and personal guarantee of four Directors of the Company.

2 Term Loans from Rajasthan Financial Corporation (RFC) are secured by equitable mortgage on fixed assets and hypothecation on moveable assets of the company both present and future situated at Jaipur and Chopanki, Bhiwadi and also secured by personal guarantee of two Directors of the Company.

Cash Credit Limit from banks are secured by hypothecation of stocks and book debts of the Company, both present and future and second charge created / to be created on all the fixed assets of the Company situated at Jaipur and Chopanki,Bhiwadi and also secured by Personal Guarantee of four Directors of the Company..

Note 2 SEGMENT INFORMATION Primary

The Company is engaged in manufacture and sale of PET and other plastic products which constitutes single business segment. As per management perspective the risks and returns from its' sales do not materially vary geographically. Accordingly, there are no other business segments to be reported as per AS-17 issued under the Companies (Accounting Standards) Rules, 2006.

Note 3 CONTINGENT LIABILITIES

(Rupees in Lacs)

As at As at

31.3.2012 31.3.2011

In respect of :

a) Excise matters disputed in appeal 0.98 0.98

b) Sales tax matters disputed in appeal 0.97 0.97

c) Bank Guarantee issued in favour of HPCL 10.00 -

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the management. This has been relied upon by the auditors.

Note 4 RELATED PARTY TRANSACTIONS Names of related parties & relationship

a) Jai Sinter Poly con Pvt. Ltd. Relatives of Directors are Director

b) Bassi Mechanical Works Relatives of Directors are Partner

c) Shri Varun Baid Held office of profit

Key Management Personnel (KMP)

Shri Lai Chand Baid Shri Rajiv Baid

Enterprise over which key management personnel and their relatives are able to exercise significant influence Bassi Mechanical works, Jaipur

Note 5

The Company is in the process of obtaining the Compliance Certificate regarding maintenance of Cost Accounting Records for the current financial year as required under Notification No. G.S.R. 429(E) dated 3rd June, 2011 issued by the Ministry of Corporate Affairs.

Note 6

The Revised Schedule-VI has become effective from 01st April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped/reclassified wherever necessary to correspond with the current year's classification/disclosure.


Mar 31, 2011

1. In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the values stated if realized in the ordinary course of business and the provisions for depreciation and all known liabilities are adequate and not in excess of the amounts reasonably necessary.

2. Figures for the previous year have been reworked/regrouped and recast wherever considered necessary and are nearest to Rupees.

3. Contingent Liabilities

Bank Guarantee given to Hindustan Petroleum Corporation Ltd. at the time of application for tender Rs. NIL (previous year Rs. 12 lac).

4. The Company has obtained the entitled certificate from State level screening committee/District level screening committee in form of subsidy towards labour and interest payments in respect of expansion projects undertaken by the company at Jaipur Unit. The aforesaid amount of subsidy is not being paid in cash and are being adjusted against the sales tax liability of the company by deducting the respective head of expenses.

5. Details of Capacities, Production, Stocks and Sales (Figures in brackets relate to previous year)

(Note : Installed capacities are as assessed by Management) * Including job work of others ** Including job work by others

6 As the company involves only in manufacturing of plastic goods, therefore, Segment reporting as defined under Accounting Standard (AS)-17 is not applicable to the company

7(a) Sundry Creditors for supplies (Item No.1st to Schedule 11) includes Rs.22.15lac (Rs. 5.79 lac on 31.03.2010) due to small scale and ancillary undertakings.

(b) Name of Small Scale Industrial Undertakings to whom the company owned any sum which was outstanding more than 30 days at the end of the financial year are - Color Point, Pack Master, Perfect Pack Ltd., Vyanktesh

Corrugators Pvt. Ltd.

The above information and the amount due to all SSIs has been identified by the management based on information available and relied upon by the Auditors.

8 As stipulated in AS-28, the Company assessed potential generation of economic benefits from its business units and is of the view that assets employed in continuing businesses are capable of generating adequate returns over their useful lives in the usual course of business, there is no indication to the contrary and accordingly the management is of the view that no impairment provision is called for in these accounts.

9 Earning Per Share

Basic and diluted earnings per share are calculated by dividing the net profit for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year


Mar 31, 2010

1. In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the values stated if realized in the ordinary course of business and the provisions for depreciation and all known liabilities are adequate and not in excess of the amounts reasonably necessary.

2. Figures for the previous year have been reworked/regrouped and recast wherever considered necessary and are nearest to Rupees.

3. Contingent Liabilities

Bank Guarantee given to Hindustan Petroleum Corporation Ltd. at the time of application for tender Rs. 12 lac (previous year Rs. 12 lac).

4. The Company has obtained the entitled certificate from State level screening committee/ District level screening committee in form of subsidy towards labour and interest payments in respect of expansion projects undertaken by the company at Jaipur Unit, The aforesaid amount of subsidy is not being paid in cash and are being adjusted against the sales tax liability of the company by deducting the respective head of expenses.

5 As the company involves only in manufacturing of plastic goods, therefore, Segment reporting as defined under Accounting Stan- dard (AS)-17 is not applicable to the company

6(a) Sundry Creditors for supplies (Item No. 1st to Schedule 11) in- cludes Rs.5.79 lac (Rs. 37.66 lac on 31.03.2009) due to small scale and ancillary undertakings.

(b) Name of Small Scale Industrial Undertakings to whom the com- pany owned any sum which was outstanding more than 30 days at the end of the financial year are - Compact Pack Moulders Pvt. Ltd., Perfect Pac Ltd. & Vyanktesh Corrugators Pvt. Ltd.

The above information and the amount due to all SSIs has been identified by the management based on information available and relied upon by the Auditors.

7 As stipulated in AS-28, the Company assessed potential genera- tion of economic benefits from its business units and is of the view that assets employed in continuing businesses are capable of generating adequate returns over their useful lives in the usual course of business, there is no indication to the contrary and accordingly the management is of the view that no impairment provision is called for in these accounts.


Mar 31, 2009

1. In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the values stated if realised in the ordinary course of business and the provisions for depreciation and all known liabilities are adequate and not in excess of the amounts reasonably necessary.

2. Figures for the previous year have been reworked/ regrouped and recast wherever considered necessary and are nearest to Rupees.

3. Contingent Liabilities

Bank Guarantee given to Hindustan Petroleum Corporation Ltd. at the time of application for tender Rs. 12.00 lac (previous year Rs. NIL).

4. The Company has obtained the entitled certificate from State level screening committee/District level screening committee in form of subsidy towards labour and interest payments in respect of expansion projects undertaken by the company at Jaipur Unit. The aforesaid amount of subsidy is not being paid in cash and are being adjusted against the sales tax liability of the company by deducting the respective head of expenses.

5 As the company involves only in manufacturing of plastic goods, therefore, Segment reporting as defined under Accounting Stan- dard (AS)-17 is not applicable to the company

6(a) Sundry Creditors for supplies (Item No.1st to Schedule 10) includes Rs. 37.66 lac (Rs. 19.24 lac on 31.03.2008) due to small scale and ancillary undertakings.

(b) Names of Small Scale Industrial Undertakings to whom the company owned any sum which was outstanding more than 30 days as the end of the financial year are - M/s. Color Point, M/s. Colour Shade, M/s. Compact Pack Moulders (P) Ltd., M/s. Empire Packages(P) Ltd., Shyam Adarsh Pack (P) Ltd., Vyankatesh Corrugators (P) Ltd., Maanekar Industries The above information and the amount due to all SSIs has been identified by the management based on information available and relied upon by the Auditors.

7 Related Party Disclosures ;

A) List of Realeted Parties & relationship

Party : Relationship

Ridam Polymers Pvt. Ltd. : Relatives of Directors are

HMI Corporation : either Partner or Director.

Jai Sinter Polycon Pvt. Ltd. : or held office of profit

Crystal Packaging Vikram Baid Vijay Baid

B) Key Management Personnel :

Shri L. C. Baid : Managing Director

Shri Bharat Baid : Executive Director .

Shri Rajiv Baid : Executive Director

8 As stipulated in AS-28, the Company assessed potential generation of economic benefits from its business units and is of the view that assets employed in continuing businesses are capable of generating adequate returns over their useful lives in the usual course of business, there is no indication to the contrary and accordingly the management is of the view that no impairment provision is called for in these accounts.

 
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