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Notes to Accounts of Shetron Ltd.

Mar 31, 2015

1. Term Loans from Banks are guaranteed by Two Promoter Directors and One of their relatives.

2. Deferred Sales Tax is payable over period of 15 years. Loan from related parties are not subjected to any repayment terms. Term Loans are repayable over a period of 7 years from the date of disbursement Buyers' credit are payable over a period of 3 years. Car Loan is payable over a period of five years from the date of disbursement.

3. Term Loans from Cosmos Co Operative Bank Limited are secured by first charge by way of equitable mortgage on the company's immovable property situated at Bangalore and first charge on the Plant and Machinery of the company.

4. Car Loan is secured by hypothecation of vehicles acquired under the scheme.

The Short Term Borrowings are under Consortium Banking Arrangement with Bank of India, State Bank of India and Cosmos Co-Operative Bank Limited are secured by first pari-passu charge on hypothecation of stocks. Book Debts and other Current Assets of the company and exclusive first charge on company's immovable property situated at Asangaon, Maharashtra (applicable for State Bank of India and Bank of India only) and second pari- pasu charge on the Fixed Assets of the company (including second charge by way of Equitable Mortgage of the immovable properties in Bangalore). Short Term Borrowings are Guaranteed by Two Promoter Directors and One of their relatives.

5 Trade Payables :

Trade Payables include a sum of Rs. 75.50 lacs (PY. Rs. 54.50 lacs) due to SMEs to the extent such parties have been identified from available information. The amount outstanding for more than 30 days as on 31.03.2015 is Rs. 22.12 (PY. Rs. 15.20) lacs. Trade payables are subject to confirmation from parties .

Inventories are valued as follows

a. Stores and Spares at Cost on FIFO Method of Valuation

b. Raw Materials at Cost on FIFO Method of Valuation

c. Work in Progress at Cost*

d. Finished Goods at Cost*/ Net Realisable value whichever is less

* Cost includes Direct Labour, Applicable Overheads and Excise Duty in case of Finished Goods.

6. Contingent Liabilities (not provided for in the accounts) : Rs. in Lacs

Particulars 31.03.2015 31.03.2014

Factoring Obligations 911 861

Guarantees for Customs Duty 450 450

Guarantees for Financial 500 500 Institutions/Banks as security

Export Obligations under EPCG scheme 51 1,174

Disputed Income Tax 49 249

7.Related Party Disclosures :

I. Controlling Companies : NIL

II. List of Related Parties :

Fibre Foils Limited Related Party

Sansha Systems Limited Related Party

Shetron Enterprise Private Limited Related Party

Shetron Metropak Private Limited Subsidiary

Bunts Properties Private Limited Related Party

Mr. Diwakar S Shetty Key Management Personnel

Mr. Kartik Nayak Key Management Personnel

8. Segment Disclosure :

The Primary Segment based on the Business Segment. The Secondary Segment is based on the Geographical Location of the customers.


Mar 31, 2014

A Term Loans from Banks are guaranteed by two promoter directors and one of their relatives.

b. Deferred Sales tax is payable over period of 15 years. Loan from related parties are not subjected to any repayment terms. Term Loans are repayable over a period of 7 years from the date of disbursement. Buyers'' credit are payable over a period of 3 years. Car Loan is payable over a period of five years from the date of disbursement.

c. Term Loans from Cosmos Co Op Bank Ltd are secured by First charge by way of Equitable Mortgage on the Company''s immovable property situated at Bangalore and First charge on the Plant & Machinery of the Company.

d. Car Loan is secured by hypothecation of vehicles acquired under the scheme.

The Short Term Borrowings are under Consortium Banking arrangement with Bank of India, State Bank of India and The Cosmos Co Op Bank Limited are secured by First Pari-passu charge on the Hypothecation of stocks, Books Debts and other Current Assets of the Company, exclusive First charge on the Company''s immovable property situated at Asangaon, Maharashtra and Second pari-passu charge on the Fixed Assets of the Company (including second charge by way of extension of Equitable Mortgage as on the immovable properties in Bangalore). Short Term Borrowings are guaranteed by two promoter directors and one of their relatives.

2. Trade Payables

Trade Payables include sum of Rs.54.50 lacs due to SMEs to the extent such parties have been identified from available information. The amount outstanding for more than 30 days as on 31.03.2014 is Rs.15.20 lacs. Trade payables are subject to confirmation from parties.

Advances are unsecured. Advances includes, advances to related parties Rs. 250 lakhs (Rs. PY Rs.300 Lakhs) and others which in the opinion of the management will realize values stated in the Balance sheet in the long term. However the Company, as a prudent measure, has created a contingency reserve to the extent of Rs.600 lacs(Long Term Loans and Advances and other Non-Current Assets) for any possible erosion in the value of said advances and other non-current assets in addition to contingency reserve already created. Advances are subject to confirmation from parties.

Inventories are valued as follows:

a. Stores and Spares at cost on FIFO method of valuation

b. Raw Materials at cost on FIFO method of valuation

c. Work in progress at cost*

d. Finished Goods at cost*/ net realisable value whichever is less

*Cost includes material, direct labour and other applicable overheads and excise duty in respect of finished goods.

3. Contingent Liabilities (not provided for in accounts): Rs. in Lacs

Particulars 31.03.2014 31.03.2013

Factoring obligations 861 863

Guarantees for Customs Duty 450 450

Guarantees for Financial Institutions/Banks as security 500 500

Export Obligations under EPCG Scheme 1,174 2,464

Disputed Income Tax 249 249

Segment Disclosure:

The primary Segment based on the business segment. The secondary segment is based on the geographical location of the customers.

a. Primary Segment Information:

The company''s line of business is "Metal Packaging" which constitutes a segment in itself. Hence no separate disclosure is reported Secondary segment information.

Figures for the previous year have been regrouped wherever necessary to confirm to the classification for the current year.


Mar 31, 2013

1. Contingent Liabilities (not provided for in accounts):

Rs. in Lacs

Particulars 31.03.2013 31.03.2012

Letters of credit and guarantee established and Bills discounted under LC and others 3,231 3,291

Factoring obligations 863 759

Guarantees for Customs Duty 450 450

Guarantees for Financial Institutions/Banks as security 500 500

Export Obligations 2,464 5,170

Disputed Income Tax 249 249

2. Provisions and Contingencies

A provision is recognised when the Company has a present legal or constructive obligation as a past event and it is probable that an out flow of resources will be required to settle the obligation in respect of which reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to its present value and are determined based on estimate required to settle the obligation. Contingent liabilities are not recognised but are disclosed in the notes to financial statements.

 
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