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

Notes to Accounts of Solid Containers Ltd.

Mar 31, 2014

1. SHARE CAPITAL:

a. Terms/right attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 10 per share. All issued shares rank pari-passu and have same voting rights per share. The company declares and pays dividend in Indian Rupees. The final dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the company, the holders of the equity shares will be entitled to receive remaining assets of the company, after distribution of preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

b. Terms/right attached to Redeemable Cumulative Preference Shares

(i) 8,000,000 (8,000,000) 12% Redeemable Cumulative Preference shares of Rs. 10/- each fully paid up (allotted on 19 August 1999) are redeemable at any time after the expiry of three years from the date of allotment with prior approval of the financial institutions or even before three years from the date of allotment provided that the Company settles its dues with the financial institutions. These shares are yet to be redeemed by the company.

(ii) 6,000,000 (6,000,000) 9 % Redeemable Cumulative Preference shares of Rs. 10/- each fully paid up (allotted on 12 September 2002) are redeemable at any time after the expiry of three years from the date of allotment with prior approval of the financial institutions or even before three years from the date of allotment provided that the Company settles its dues with the financial institutions. These shares are yet to be redeemed by the company.

2. SHORT-TERM BORROWINGS (Unsecured)

(i) Loan from Government of Maharashtra of Rs. 1,364,649/- (Rs. 1,364,649/-) carries interest @ 12.50% p.a. which is overdue from financial year 1983-84.

(ii) Inter-corporate Loans of Rs. 19,043,687/- (Rs. 13,399,656/-) carries interest @ 9% p.a. and Rs. 2,34,686,864/- (Rs. 2,33,106,864/-) carries interest @ 6% p.a. The loans are repayable on demand.

3. OTHER CURRENT LIABILITIES

# includes interest of Rs. 66,903,461/- (Rs. 50,205,369/-) which is overdue.

4. FIXED ASSETS

Note:- The Company had written up the value of freehold factory land as on 1 April, 1991 by Rs. 16,086,822/- as per the valuation report dated 27 December 1991 of M/s. Budhbatti & Associates (Chartered Engineers). The revaluation amount was taken as Revaluation Reserve under the Reserves and Surplus.

5. The Company has no amounts due to suppliers under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) as at 31 March 2014.

6. Contingent liabilities not provided for:

(Amount in Rupees)

2014 2013

Disputed Indirect Taxes 9,566,782 11,000,969

Disputed Direct Tax 3,06,306 3,06,306

Dividend on preference share capital 2,10,672,329 1,95,672,329

Claims not acknowledged as debts 40,77,416 40,77,416

7. Taxation

In view of losses incurred during the year, as per the provisions of the Income Tax Act, 1961, provision for current tax is not required to be made. Further, the amount of deferred tax assets is not being accounted in view of uncertainty as to absorption of losses in the foreseeable future based on the current level of operation of the company.

8. The Company has closed its commercial operations since 25 September 1998. The net worth of the Company is fully eroded due to accumulated losses and the Company has become a Sick Industrial Company within the meaning of Section 3(1)(O) of the Sick Industrial Companies (Special Provision) Act, 1985 and therefore, application had been made to the Board for Industrial and Financial Reconstruction (BIFR) according to the provisions of the said Act to consider the proposal for the rehabilitation of the Company. The Board for Industrial and Financial Reconstruction had rejected the application. The Company has also become a Sick Industrial Company u/s 2(46AA) of the Companies Act, 1956.

In view of the above and in absence of suitable rehabilitation measures, the Company is no longer a going concern. However, the Company has not made any adjustment to the financial statements relating to recoverability of recorded asset amounts and in respect of liabilities as might be necessary for compilation, where the Company is no longer a going concern. The effect on the loss for the year and net worth of the Company is not ascertained.

9. (i) In the opinion of the Board of Directors, the current assets and loans and advances are at least of the value stated, if realized in the ordinary course of business and necessary provision for all known liabilities has been made except stated otherwise.

(ii) Certain debit and credit balances are subject to confirmation, reconciliation and adjustments.

10. Operating Lease

(i) a) The Company has taken residential/commercial premises under cancelable operating leases.

The lease agreements are normally renewed on expiry.

b) The rental expenses in respect of operating leases are Rs. 18,600 (Rs. 18,600/-).

(ii) a) The Company has given on lease the commercial premises under cancelable operating lease.

b) Sub-lease payments received (or receivable) recognized in the Statement of Profit and Loss for the year is Rs. 3,00,000/- (Rs. 3,00,000.

11. Employee Benefits

As per Accounting Standard-15 "Employee Benefits", the disclosures of employee benefits as defined in the Accounting Standard are given below:

The employees'' gratuity fund scheme is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

I. Expenses recognised during the year ended 31 March 2014 (under the head "Employee benefit expenses")

II. Actuarial assumptions

Notes:

a) The estimates of future salary increases considered in the actuarial valuation take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment.

b) "Contribution to provident and other funds" is recognized as an expense in Note 12 of the Statement of Profit and Loss.

12. Related Party Disclosures

Related parties with whom transactions have taken place during the year and balances outstanding at the year end.

a) Other related party where the director/their relative have significant influence

Ayepee Lamitubes Limited

b) Directors of the Company

Non-Executive Directors:

Mr. Ashok Goel

Mr. J. M. Fernandes

Mr. Mohender Garg

13. Managerial Remuneration

The Company has paid remuneration to Manager within the limit of Schedule XIII of Companies Act, 1956. Details of Remuneration paid/payable to the Manager is as under:

* Excludes leave encashment and gratuity which is based on actuarial valuation provided on an overall basis.

14. Other additional information pursuant to Revised Schedule VI to the Companies Act, 1956 are either nil or not applicable.

15. The Company does not have any manufacturing activity during the financial year. Accordingly, Accounting Standard-17 "Segment Reporting" is not applicable.

16. Prior year Comparatives

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


Mar 31, 2013

1. Corporate Information

Solid Containers Limited is a Company incorporated under the Companies Act, 1956. Operations of the Company have been suspended since September 1998 and the Company has been incurring losses.

2. The Company has no amounts due to suppliers under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) as at 31 March 2013.

3. CONTINGENT LIABILITIES NOT PROVIDED FOR:

(Amount in Rupees)

Particulars 2013 2012

Disputed Indirect Taxes 11,000,969 10,646,353

Disputed Direct Taxes 306,306 -

Dividend on preference share capital 195,672,329 180,672,329

Claims not acknowledged as debts 4,077,416 4,077,416

4. TAXATION

In view of losses incurred during the year, as per the provisions of the Income Tax Act, 1961, provision for current tax is not required to be made. Further, the amount of deferred tax assets is not being accounted in view of uncertainty as .to absorption of losses in the foreseeable future based on the current level of operation of the company.

5. The Company has closed its commercial operations since 25 September 1998. The net worth of the Company is fully eroded due to accumulated losses and the Company has become a Sick Industrial Company within the meaning of Section 3(1 )(0) of the Sick Industrial Companies (Special Provision) Act, 1985 and therefore, application had been made to the Board for Industrial and Financial Reconstruction (BIFR) according to the provisions of the said Act to consider the proposal for the rehabilitation of the Company. The Board for Industrial and Financial Reconstruction had rejected the application. The Company had also become a Sick Industrial Company u/s 2(46AA) of the Companies Act, 1956.

In view of the above and in absence of suitable rehabilitation measures, the Company is no longer a going concern. However, the Company has not made any adjustment to accounts relating to recoverability of recorded asset amounts and in respect of liabilities as might be necessary for compilation, where the Company is no longer a going concern. The effect on the loss for the year and net worth of the Company is not ascertained.

6. (i) In the opinion of the Board of Directors, the current assets and loans and advances are at least of the value stated, if realized in the ordinary course of business and necessary provision for all known liabilities has been made except stated otherwise.

(ii) Certain debit and credit balances are subject to confirmation, reconciliation and adjustments.

7. Operating Lease

(i) a) The Company has taken residential / commercial premises under cancelable operating leases. These lease agreements are normally renewed on expiry.

b) The rental expenses in respect of operating leases are Rs.18,600 (Rs.18,600).

(ii) a) The Company has given on lease the commercial premises under cancelable operating lease.

b) Sub-lease payments received (or receivable) recognized in the Statement of Profit and Loss for the year is Rs. 300,000 (Rs. 300,000).

8. Employee Benefits

As per Accounting Standard - 15 "Employee Benefits", the disclosures of employee benefits as defined in the Accounting Standard are given below:

The employees'' gratuity fund scheme is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

Notes:

(a) The estimates of future salary increases considered in the actuarial valuation take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment.

(b) "Contribution to provident and other funds" is recognized as an expense in Note 12 of the Statement of Profit and Loss. :

9. Related Party Disclosure

Related parties with whom transactions have taken place during the year and balances outstanding at the year end.

a) Other related party where the director / their relative have significant influence

Ayepee Lamitubes Limited

b) Directors of the Company

Non-Executive Directors :Mr. Ashok Goel

Mr. J. M. Fernandes

Mr. R. Chandrasekhar (Resigned with effect from 31.01.2013) Mr. Mohender Garg

* Excludes leave encashment and gratuity which is based on actuarial valuation provided on an overall basis.

10. Other additional information pursuant to Revised Schedule VI to the Companies Act, 1956 are either nil or not applicable.

11. The Company does not have any manufacturing activity during the financial year. Accordingly, Accounting Standard-17 "Segment Reporting" is not applicable.

12. Prior year Comparatives

Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classifications / disclosures


Mar 31, 2012

1. TAXATION

In view of losses incurred during the year, as per the provisions of the Income Tax Act, 1961, provision for current tax is not required to be made. Further, the amount of deferred tax assets is not being accounted in view of uncertainty as to absorption of losses in the foreseeable future based on the current level of operation of the company.

2. The Company has closed its commercial operations since 25 September 1998. The net worth of the Company is fully eroded due to accumulated losses and the Company has become a Sick Industrial Company within the meaning of Section 3(1 )(0) of the Sick Industrial Companies (Special Provision) Act, 1985 and therefore, application had been made to the Board for Industrial and Financial Reconstruction (BIFR) according to the provisions of the said Act to consider the proposal for the rehabilitation of the Company. The Board for Industrial and Financial Reconstruction had rejected the application. The Company had also become a Sick Industrial Company u/s 2(46AA) of the Companies Act, 1956.

In view of the above and in absence of suitable rehabilitation measures, the Company is no longer a going concern. However, the Company has not made any adjustment to accounts relating to recoverability of recorded asset amounts and in respect of liabilities as might be necessary for compilation, where the Company is no longer a going concern. The effect on the loss for the year and net worth of the Company is not ascertained.

3. (i) In the opinion of the Board of Directors, the current assets and loans and advances are at least of the value stated, if realized in the ordinary course of business and necessary provision for all known liabilities has been made except stated otherwise.

(ii) Certain debit and credit balances are subject to confirmation, reconciliation and adjustments.

4. Operating Lease

(i) a) The Company has taken residential / commercial premises under cancelable operating leases. These lease agreements are normally renewed on expiry.

b) The rental expenses in respect of operating leases are Rs.18,600 (Rs.18,600).

(ii) a) The Company has given on lease the commercial premises under cancelable operating lease.

b) Sub-lease payments received (or receivable) recognized in the Statement of Profit and Loss for the year is Rs. 300,000 (Rs. 300,000).

5. Employee Benefits

As per Accounting Standard - 15 "Employee Benefits", the disclosures of employee benefits as defined in the Accounting Standard are given below:

The employees'' gratuity fund scheme is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

Notes:

(a) The estimates of future salary increases considered in the actuarial valuation take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment.

(b) "Contribution to provident and other funds" is recognized as an expense in Note 12 of the Statement of Profit and Loss.

3. Related Party Disclosure

Related parties with whom transactions have taken place during the year and balances outstanding at the year end.

a) Other related party where the director / their relative have significant influence

Ayepee Lamitubes Limited

b) Directors of the Company

Non-Executive Directors: Mr. Ashok Kumar Goel

Mr. J. M. Femandes Mr. R. Chandrasekhar Mr. Mohender Garg

4. Other additional information pursuant to Revised Schedule VI to the Companies Act, 1956 are either nil or not applicable.

5. The Company does not have any manufacturing activity during the financial year. Accordingly, Accounting Standard-17 "Segment Reporting" is not applicable.

6. Prior year Comparatives

Schedule VI to the Companies Act, 1956 is revised and has become effective from 1 April 2011. 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 classifications / disclosures.


Mar 31, 2010

1. Previous years figures have been regrouped, rearranged and recast wherever considered necessary. Figures in bracket pertains to previous year.

2. Contingent liabilities not provided for:

(Amount in Rs.)

Particulars As at As at

31.03.2010 31.03.2009

Disputed Demands of Excise Duty and Income Tax 4,964,342 1,820,301

Dividend on Preference Share Capital 150,672,329 135,672,329

Claim against the Company not acknowledged as debt 2,144,807 2,144,807

3. In view of losses, no provision is required to be made for Income Tax as per the provisions of the Income Tax Act, 1961. Further the amount of deferred tax assets is not being accounted in view of the uncertainty as to absorption of losses in the foreseeable future based on the current level of operation of the company.

4. The company has closed its commercial operations since 25 September 1998. The net worth of the company is fully eroded due to accumulated losses and the company has become a Sick Industrial Company within the meaning of Section 3(1) (O) of the Sick Industrial Companies (Special Provision) Act, 1985 and therefore reference had been made to the Board for Industrial and Financial Reconstruction (BIFR) according to the provisions of the said Act to consider the proposal for the rehabilitation of the company. Board for Industrial and Financial Reconstruction has rejected the application. The company has also become a Sick Industrial Company u/s 2(46AA) of the Companies Act, 1956.

In view of the above and in absence of suitable rehabilitation measures, the Company is no longer a going concern. However, the Company has not made any adjustment to accounts relating to recoverability of recorded asset amounts and in respect of liabilities as might be necessary for Compilation when the Company is no longer a going concern. The effect on the Loss for the year and Net Worth of the company is not ascertained.

5. (i) In the opinion of the Board of Directors the current assets and loans and advances are at least of the value stated, if realized in the ordinary course of business and necessary provision for all known liabilities has been made except stated otherwise.

(ii) Debit and credit Balances are subject to confirmation, reconciliation and adjustments.

6. Operating Lease

i) a) The company has taken residential/commercial premises under cancelable operating leases. These lease agreements are normally renewed on expiry.

b) The rental expenses in respect of operating leases is Rs 18,600/- (Rs 18,600/-).

ii) a) The company has given on lease the commercial premises under cancelable operating lease.

b) Sub-lease payments received (or receivable) recognized in the statement of Profit and Loss for the year is Rs. 300,000/- (Rs. 300,000/-).

Note:

(a) Amounts recognized as an expense and included in the Schedule 9 "Personnel Cost" are gratuity Rs. (11,417) (Rs. 5,445) and leave encashment Rs. (35,250) (Rs. (168,461))

(b) The estimates of future salary increases considered in the actuarial valuation take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment.

(c) "Contribution to provident and other funds" is recognized as an expense in Schedule 9 of the Profit and Loss Account.

7. Related party disclosure

Related parties with whom transaction have taken place during the year and balances outstanding as on the last day of the year.

a) Other related parties where the Director/their relative have significant influence. Ayepee Lamitubes Limited

b) Directors of the Company

Non-Executive Directors : Mr. Ashok Kumar Goel Mr. J. M. Fernandes

Mr. R. Chandrasekhar

Mr. Mohender Garg

8. Managerial Remuneration

a) Since no Commission is paid/ payable to any Director/Manager and loss was incurred during the year, the computation of profits under Section 198/349 of the Companies Act, 1956 is not furnished.

9. Other additional information pursuant to the provision of Part II of Schedule VI to the Companies Act, 1956 are either nil or not applicablee.

 
Subscribe now to get personal finance updates in your inbox!