Home  »  Company  »  Shreyas Shipping & L  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Shreyas Shipping & Logistics Ltd.

Mar 31, 2014

Corporate Information

1 Shreyas Shipping and Logistics Limited (SSLL) is India''s first container feeder owning and operating company. SSLL started its operations in 1993 primarily to fill the gap for feedering of containers between Indian ports and internationally renowned Asian transhipment ports. SSLL''s shares are listed on both Bombay Stock Exchange and National Stock Exchange.

2a. Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs.10/- per share. The holders of the equity shares are entitled to receive dividends as declared from time to time, and are entitled to voting rights proportionate to their share holding at the meetings of shareholders. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive the remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2b. The Board, in its meeting on May 26th, 2014 proposed a final dividend of Rs. 0.60 per equity share (2012-13 - paid Rs. 0.60 per equity share).The proposal is subject to the approval of shareholders at the Annual General Meeting to be held on August 12th, 2014. The total dividend appropriation for the year ended March 31st, 2014 amounted to Rs. 154.14 lacs (2012-13 - Rs. 154.14 lacs) including corporate dividend tax of Rs. 22.39 lacs (2012-13 - Rs. 22.39 lacs).

2c. 1,01,62,750 Equity shares of Rs.10/- each, allotted as fully paid up pursuant to contract(s) without payment being received in cash in the financial year 1994-95.

2d. 21,33,333 Equity shares of Rs.10/- each, issued as fully paid up on conversion of equal number of Global Depository Receipts (GDR) in the financial year 2006-07.

2e. No bonus shares have been issued during the last five years.

(ii) Axis Bank Car loan of Rs. 33,87,872, is secured by hypothecation of car, carrying interest @10.06%, (on a monthly reducing basis) . The Loan is repayable in 36 equal monthly instalments of Rs. 1,12,000 starting from7 July 2011. Loan repaid during the year 2013-14 is Rs. 13,44,000 (March 31, 2013 - Rs. 13,44,000).

(iii) ICICI Bank Loan Rs. 47,75,00,000 , is secured by a first charge over the Vessel M.V.Oel Kochi and M.V.OEL Kutch and collateral charge over M.V.OEL Victory. Loan to be repaid in 28 quarterly instalments with the first repayment starting from October 2013. ICICI Bank Loan carries interest @ I-Base 290 bps. Loan repaid during the year 2013-14 is Rs.1,91,00,000 (March 31, 2013 - Rs. Nil).

(3a) There have been no defaults in repayment of any of the loans or interest thereon during the year.

4a) The amount due to Micro and Small Enterprises as defined in the "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 collected by the Management.

(5a) There are no amounts due for payment to the Investor Education and Protection Fund under Section 205C of the Companies Act, 1956 as at the year end.

(5b) Unfinished Voyage income relates to unfinished voyage legs as at the balance sheet (Refer Note 2(d)(iii))

6. Restatement of Financial Statements

BSE has vide its letter dated 12th March, 2014 advised the company to restate its financial statements for 2012-13 to give effect to auditor''s qualifications in their report, in terms of SEBI Circular dated 13th August, 2012 with regard to manner of dealing with Audit report filed by listed companies. The period allowed for restatement under the said SEBI circular ended on 11th May, 2014. The company met SEBI officials on 10th April, 2014 and explained its stand clearly to them.

Further the company has written on 21st April 2014 to SEBI, which was also followed up by further letters dated 08th May, 2014 & 09th May, 2014, that the restatement will not be in the interest of the company as the qualifications arose out of a mere change of opinion and not because of any violation of basic accounting principles.

The company awaits SEBI''s final decision in this regard and therefore no restatement has been carried out.

7. Employee Benefits (A) Gratuity

(a) Description of the Gratuity Plan:

The Company provides for gratuity a defined benefit retirement plan covering eligible employees. Gratuity plan provides for a lump sum payment to employees on retirement, death, incapacitation, termination of employment, of amounts that are based on salaries and tenure of the employees.

(b) Amount recognized in the Balance Sheet and movements in net liability:

Gratuity liability is funded with Life Insurance Corporation of India (LIC) and the above net asset represents the excess between the fair value of Gratuity funds with LIC and the liability as per actuarial valuation This is available for future adjustment and considered recoverable.

The fair value of the plan assets does not include the Company''s own financial instruments

The net asset recognized is grouped under "Other current assets".

(B) Compensated Absences for Employees

The Company permits encashment of privileged leave accumulated by their employees on retirement, separation and during the course of service. The liability for unexpired leave is determined and provided on the basis of actuarial valuation at the Balance Sheet date. The privileged leave liability is not funded.

8. Foreign Currency Exposures outstanding at the Balance Sheet date.

Category: Currency Swap Contract of Rupee Loan from ICICI Bank Ltd of Rs. 45,84,00,000 (USD 82,56,089)

Purpose: In order to hedge the Company''s future foreign currency earnings against the volatility in foreign exchange rates.

9. The notional loss as on March 31, 2014 amounts to Rs. 11,57,96,912 (March 31, 2013: Rs. 5,43,06,192), on fair valuation of cross currency interest rate swap has been taken to the Hedging Reserve account.

b) Remuneration paid to Managing Director during the year is as per maximum permissible limits prescribed in Section 269 and schedule XIII to the Companies Act,1956. Approval is yet to be received from Central Government in respect of remuneration paid in excess of limits prescribed,consideriing auditor''s qualification, to Managing Director for the year ended on 31st March, 2013.

10. Contingent Liabilities

Particulars As at As at 31st March, 2014 31st March, 2013 Rs.Rs. ''''

Claims against the Company not acknowledged as debts. Nil NIL Corporate guarantee given on behalf of Subsidiary companies (including interest) 196,968,061 202,686,071 Claim from ONGC for expenses incurred by it in connection with recovery and allied 30,597,784 30,597,784 activities in respect of OEL Vision in distress during July 2006 (Recoverable from Insurance company).

Income Tax Demand for the Assessment Year 2010-11 - 1,339,695 Income Tax Demand for the Assessment Year 2011-12 2,752,937 -

11. Segment Reporting

a) The Company operates in two business segments viz. Shipping and Logistics. Shipping comprises Charter hire and Logistics includes Feeder, Domestic and Liner business.

c) Segment Capital employed

Fixed Assets used in the company''s business or liabilities contracted have not been identified to any of the reportable segments, as the fixed assets and services are used interchangeably between segments. Accordingly, no disclosure relating to individual segment assets and liabilities has been made. However Depreciation has been allocated amongst segments based on best estimates of usage of fixed assets in the respective segments during the year.

12. Related Party Transactions (Refer Annexure 1)

13. Accounting for Lease

The Company has taken Vehicles on Cancellable Operating Lease and the lease rental of Rs.13,26,000 (Rs. 11,98,000) is charged to the statement of Profit and Loss.

The Company has taken Office Premises on Cancellable Operating Lease and the lease rental of Rs. 55,42,598 (Rs. 25,40,119) is charged to the statement of Profit and Loss.

14. Prior period comparatives

Prior year figures have been reclassified / regrouped wherever necessary to conform to the current year''s classification.


Mar 31, 2013

Corporate Information

1 Shreyas Shipping and Logistics Limited (SSLL) is India''s first container feeder owning and operating company. SSLL started its operations in 1993 primarily to fill the gap for feedering of containers between Indian ports and internationally renowned Asian transshipment ports. SSLL''s shares are listed on both Bombay Stock Exchange and National Stock Exchange.

2a. Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 10/- per share. The holders of the equity shares are entitled to receive dividends as declared from time to time, and are entitled to voting rights proportionate to their share holding at the meetings of shareholders. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive the remaining assets of the company, after distribution of all preferential amounts,. The distribution will be in proportion to the number of equity shares held by the shareholders.

2b. 1,01,62,750 Equity shares of Rs. 10/- each, allotted as fully paid up pursuant to contract(s) without payment being received in cash in the financial year 1994-95.

2c. 21,33,333 Equity shares of Rs. 10/- each, issued as fully paid up on conversion of equal number of Global Depository Receipts (GDR) in the financial year 2006-07.

2d. No bonus shares have been issued during the last five years.

(3a) Nature of security and terms of repayment for secured loan availed from Banks

(i) Canara Bank FCNR Loan $1,27,79,460, is secured by a first charge over the Vessel M.V.Oel Trust and M.V.Oel Shreyas and collateral charge over M.V.Oel Unity. Loan to be repaid in 58 structured monthly installments with the first repayment starting from January 2012 i.e. $2,29,190. Foreign currency loan carries interest @ LIBOR (6months) 450bps. Loan repaid during the year 2012-13 is $ 27,50,280. (Previous Year - $ 6,87,570)

(ii) Axis Bank Car loan of Rs. 33,87,872, is secured by hypothecation of car, carrying interest @10.06%, (on a monthly reducing basis) . The Loan is repayable in 36 equal monthly installment of Rs. 1,12,000 starting from July 2011. Loan repaid during the year 2012-13 isRs. 13,44,000. (Previous Year - Rs. 7,78,936)

(iii) ICICI Bank Loan Rs. 47,75,00,000 , is secured by a first charge over the Vessel M.V.Oel Kochi and M.V.Oel Kutch and collateral charge over M.V.Oel Victory. Loan to be repaid in 28 quarterly installments with the first repayment starting from October 2013. ICICI Bank Loan carries interest @ I-Base 290 bps.

(3b) There have been no defaults in repayment of any of the loans or interest thereon as at the end of the year.

4. Gratuity Benefits

(a) Description of the Gratuity Plan:

The Company provides for gratuity a defined benefit retirement plan covering eligible employees. Gratuity plan provides for a lump sum payment to employees on retirement, death, incapacitation, termination of employment, of amounts that are based on salaries and tenure of the employees.

(b) Amount recognized in the Balance Sheet and movements in net liability:

Gratuity liability is funded with Life Insurance Corporation of India (LIC) and the above net asset represents the excess between the fair value of Gratuity funds with LIC and the liability as per actuarial valuation This is available for future adjustment and considered recoverable.

The fair value of the plan assets does not include the Company''s own financial instruments The net asset recognized is grouped under "Other current assets". (c) Expenses recognized in the Statement of Profit & Loss

5. Foreign Currency Exposures outstanding at the Balance Sheet date.

Category:Currency Swap Contract of Rupee Loan from ICICI Bank Ltd of Rs. 47,75,00,000 (USD 86,00,093) Purpose:In order to hedge the Company''s exposure , due to movement in foreign exchange rates. Foreign Currency exposures not hedged by derivative instrument or otherwise:.

6. The notional loss amounting to Rs. 5,43,06,192 as on March 31, 2013, on fair valuation of cross currency interest rate swap has been taken to the Hedging Reserve account.

a) The remuneration does not include the provision made for gratuity and leave encashment, as they are determined on an acturial basis for company as a whole.

b) Considering Auditor''s qualification, remuneration paid to Managing Director during the year exceeds the maximum permissible limits prescribed in Section 269 and schedule XIII to the Companies Act,1956. The Company is in the process of applying for Central Government approval.

7. Contingent Liabilities

(AMOUNT IN Rs.)

Particulars As at As at 31st March 31st March 2013 2012

Claims against the Company not acknowledged as debts. NIL NIL

Corporate guarantee given on behalf of Subsidiary company (including interest) 202,686,071 121,194,262

Claim from ONGC for expenses incurred by it in connection with recovery and allied 30,597,784 30,597,784 activities in respect of OEL Vision in distress during July 2006 (Recoverable from Insurance company).

Income Tax Demand for the Assessment Year 2010-11 1,339,695

8. Related Party Transactions (Refer Annexure 1)

9. Accounting for Lease

The Company has taken Vehicles on Cancellable Operating Lease and the lease rental of Rs. 11,98,000/-. (Rs. 13,17,333/-) is charged to the statement of Profit and Loss.

The Company has taken Office Premises on Cancellable Operating Lease and the lease rental of Rs. 25,40,119/-. (Rs. 19,52,377/-) is charged to the statement of Profit and Loss.

10. Prior period comparatives

Prior year figures have been reclassified / regrouped wherever necessary to conform to the current year''s classification.


Mar 31, 2012

1a. Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs 10/- per share. The holders of the equity shares are entitled to receive dividends as declared from time to time, and are entitled to voting rights proportionate to their share holding at the meetings of shareholders. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive the remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

1b. 1,23,51,650 Equity shares of Rs 10/- each, held by Holding Company Transworld Holdings Limited, Mauritius. 3e. 1,01,62,750 Equity shares of Rs 10/- each, allotted as fully paid up pursuant to contract(s) without payment being received in cash in the financial year 1994-95.

1c. 21,33,333 Equity shares of Rs 10/- each, issued as fully paid up on conversion of equal number of Global Depository Receipts (GDR) in the financial year 2006-07.

(2a) Nature of security and terms of repayment for secured loan availed from Banks

(i) Canara Bank FCNR Loan $12779460, the loan is secured by a first charge over the Vessel M.V.Oel Trust and M.V.Oel Shreyas and collateral charge over M.V.Oel Unity. The loan is repaid in 58 structured monthly installments with the first repayment starting from Jan 2012 i.e. $229190. Foreign currency loan carries interest @ Libor (6months) 450bps.

(ii) Axis Bank Car loan of Rs 33,87,872, the loan is secured by hypothecation of car, carrying interest @10.06%, (on a monthly reducing basis) . The Loan is repayable in 36 equal monthly instalment ofRs 1,12,000 starting from July 2011.

(iii) ICICI Bank Car loan of Rs 25,31,600 ,the loan is secured by hypothecation of car, carrying interest @9.60%. The Loan is repayable in 36 equal monthly instalment of Rs 54,000. The Loan has been repaid during the year.

(2b) There has been no defaults in repayment of any of the loans or interest thereon as at the end of the year.

* Loan processing charges which is getting amortised over the tenure of the loan.

**Others represent "Deposits" Deposit includes amount with Port Trust of India Rs 50,000/-(March 31, 2011: Rs 50,000/-)

* Income accrued relates to completed legs as at the balance sheet date but billed in subsequent period (Also refer Note 2(d)(ii)) ** Expense relates to expenses of unfinished legs as at the balance sheet date (Also refer Note 2(d)(iii))

*** Loan processing charges which is getting amortised over the tenure of the loan.

3a) During the year, company has received dividend on Rs 10 crores 11% Non -Convertible, Cumulative, Redeemable Preference Shares redeemable at par from M/s Shreyas Relay Systems Limited for the Financial year 2010-11 and 2011-12 till 28th March, 2012. (Date of redemption)

4. The financial statements for the year ended 31st March, 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended 31st March 2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification. The adoption of revised Schedule VI for previous year figures does not impact recognition and measurement principles followed for preparation of financial statements.

5. (A) Gratuity Benefits

(a) Description of the Gratuity Plan:

The Company provides for gratuity a defined benefit retirement plan covering eligible employees. Gratuity plan provides for a lump sum payment to employees on retirement, death, incapacitation, termination of employment, of amounts that are based on salaries and tenure of the employees.

Gratuity liability is funded with Life Insurance Corporation of India (LIC) and the above net asset represents the excess between the fair value of Gratuity funds with LIC and the liability as per actuarial valuation This is available for future adjustment and considered recoverable.

The fair value of the plan assets does not include the Company's own financial instruments The net asset recognized is grouped under "Other current assets".

(B) Compensated Absences for Employees

The Company permits encashment of privileged leave accumulated by their employees on retirement, separation and during the course of service. The liability for unexpired leave is determined and provided on the basis of actuarial valuation at the Balance Sheet date. The privileged leave liability is not funded.

a) The remuneration does not include the provision made for gratuity and leave encashment, as they are determined on an acturial basis for company as a whole.

b) During the year, remuneration to Managing Director exceeds the maximum permissible limits prescribed in Section 269 and schedule XIII to the Companies Act,1956, Company is in the process of getting Central Government approval.

6. Contingent Liabilities

(AMOUNT IN Rs)

Particulars As at As at 31.03.2012 31.03.2011

a) Claims against the Company not acknowledged as debts. NIL NIL

b) Corporate guarantee given on behalf of Subsidiary company (including interest) 121,194,262 10,221,200

c) Investments of Company given as security for overdraft facility availed by NIL NIL subsidiary.

d) Claim from ONGC for expenses incurred by it in connection with recovery and allied 30,597,784 30,597,784 activities in respect of OEL Vision in distress during July 2006 (Recoverable from Insurance company).

c) Segment Capital employed

Fixed Assets used in the company's business or liabilities contracted have not been identified to any of the reportable segments, as the fixed assets and services are used interchangeably between segments. Accordingly, no disclosure relating to individual segment assets and liabilities has been made. However Depreciation has been allocated amongst segments based on best estimates of usage of fixed assets in the respective segments during the year.

7. Related Party Transactions (Refer Annexure 1)

8. Accounting for Lease

The Company has taken Vehicles on Cancelable Operating Lease and the lease rental of Rs 13,17,333/-. (Rs 8,67,000/-) is charged to the Profit and Loss account.

9. Wage agreement for crew on board has been finalised by National Maritime Board (India) and the effect of the same has been carried out in the financials.


Mar 31, 2011

1) The Companys Subsidiary, Haytrans (India) Limited has made a loss of Rs.82,70,799/- for the year ended 31st March,2011 and has a positive net worth of Rs.43,09,070/- as on 31st March, 2011. In view of the long term plans for the company, the diminution in value is considered as temporary and hence no provision is made.

2) Disclosures as required by AS 15 on Employee benefits: (A) Gratuity Benefits

(a) Description of the Gratuity Plan:

The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. Gratuity plan provides for a lump sum payment to employees on retirement / death / incapacitation / termination of employment, of amounts that are based on salaries and tenure of the employees.

(B) Privilege Leave Encashment (Compensated Absence)

The Company permits encashment of privilege leave accumulated by the employees on retirement, separation and during the course of service. The liability for unexpired leave is determined and provided on the basis of actuarial valuation at the Balance Sheet date. The privilege leave liability is not funded.

3. Information pursuant to para 4-D, clauses a,b,c and e of Part II of Schedule VI of the Companies Act, 1956 has not been given in view of exemption granted by the Department of Company Affairs Vide Order No 46/65/2011-CL-III. Dated 28th January, 2011

7. CONTINGENT LIABILITIES

(Amount in Rs.)

As at As at

31.03.2011 31.03.2010

a) Claims against the Company NIL 10,57,00,000 not acknowledged as debts

b) Corporate guarantee given 1,02,21,200 9,31,06,425 on behalf of Subsidiary company (including interest)

c) Investments of Company NIL 2,31,87,560 given as security for overdraft facility availed by subsidiary.

d) Estimated amount of NIL NIL Contracts remaining to be executed on Capital Account and not provided for.

e) Claim from ONGC for 3,05,97,784 3,05,97,784 expenses incurred by it in connection with recovery and allied activities in respect of OEL Vision in distress during July 2006 (Recoverable from Insurance company)

f) Income Tax demand for NIL 9,03,135 Assessment year 2007-2008 contested and appealed against.

c) Segment Capital employed Fixed Assets used in the companys business or liabilities contracted have not been identified to any of the reportable segments, as the fixed assets and services are used interchangeably between segments. Accordingly, no disclosure relating to individual segment assets and liabilities has been made. However Depreciation has been allocated amongst segments based on best estimates of usage of fixed assets in the respective segments during the year.

11. Accounting for Lease

The Company has taken Vehicles on Cancelable Operating Lease and the lease rental of Rs.8,67,000/- (Rs.6,33,000/-) is charged to the Profit and Loss account.

16. Deposits include amount with Port Trust of India Rs.50,000/- (PY Rs.50,000/-)

17. The present National Maritime Board (NMB) wage settlement for crew expired on 31st March, 2010 and is pending fresh settlement no provision for wage arrears has been made in accounts.

19. Related Party Transactions (Refer Annexure I)

20. Details of Purchases and Sales of Investments (Schedule -5) (Refer Annexure II)

21. Previous years figures have been regrouped / recast wherever necessary to conform to the current years classifications


Mar 31, 2010

1) The Companys Subsidiary, Haytrans (India) Limited has made a loss of Rs. 75,83,743/- for the year ended 31st March, 2010 and has a negative net worth of Rs. 39,61,729/- as on 31st March, 2010. In view of the long term plans for the company, the diminution in value is considered as temporary and hence no provision is made.

2) Disclosures as required by AS 15 on Employee benefits.:

(A) Gratuity Benefits

(a) Description of the Gratuity Plan:

The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. Gratuity plan provides for a lump sum payment to employees on retirement / death / incapacitation/termination of employment, of amounts that are based on salaries and tenure of the employees.

3. Related Party Transactions (Refer Annexure I)

4. Details of Purchases and Sales of Investments (Schedule-5) ( Refer Annexure II)

5. Previous years figures have been regrouped/recast wherever necessary to conform to the current years classifications.

 
Subscribe now to get personal finance updates in your inbox!