Mar 31, 2015
1. CORPORATE INFORMATION:
Stanpacks (India) Limited is a Public Company in India, incorporated on
20th December 1991. The Company is engaged in the business of
manufacturing Polypropylene Bags. The shares of the Company are being
listed in the Bombay Stock Exchange.
2. The previous period figures have been regrouped/reclassified,
wherever necessary to conform to the current presentation.
3. With respect to the Balances of Debtors & Creditors and
advances/deposits received from the customers as per books of account.
Confirmations of balances are awaited and adjustments if any will be
made in the books on receipt of confirmations.
4. During the year, the Company had a good improvement in the
performance achieving the target for the year with an increase of 7% in
the turnover against the previous year a cash profit of Rs. 116.70
lakhs against the cash loss of Rs. 32.40 lakhs of the previous year.
The Company has reassessed the depreciation of every asset based on
their useful life as prescribed under part C of schedule II of the
Companies Act, 2013 resulting in the additional transitional
depreciation.
As a result of above transitional depreciation provision, the Company
stood at Net loss of Rs. 5.89 lakhs for the year and the accumulated
losses have increased to Rs. 480.13 lakhs resuting in an erosion of 78%
of Networth of the Company. With the improvement in the performance
during the year, the anticipated big orders, the capability in
productivity, the continuous working capital support by the bankers and
the promoters, and the prospect of bringing long term funds to the
company by selling of unutilized land and building at Nellore, the
Management is confident of generating profits in years to come and meet
its financial obligation as they arise consequently resulting in wiping
off the erosion of Networth in the near future.
5. DUES TO MICRO, SMALL AND MEDIUM ENTERPRISES:
The management is currently in the process of identifying enterprises
which have provided goods and services to the company which qualify
under the definition of micro, small and medium enterprises, as defined
in Micro, Small and Medium Enterprises Act 2001. Accordingly, based on
information available, the amount payable to such enterprises as on
31st March 2015 is Nil.
6. The computation of profit under section 198 of the Companies Act,
2013 is not considered necessary as the managerial remuneration that is
paid is minimum remuneration based on the effective capital of the
Company as prescribed under Schedule V of the said Act.
7. LEASES:
Operating leases:
The company is obligated under cancelable operating leases for
Kavarapet which are renewable at the options of the lessor and the
lessee. The expense under the contracted lease amounts to Rs.18.53 lacs
(previous year Rs.22.53 lacs)
Estimated rate of return on the plan assets 8%
The estimate of future salary increments, contribution in actual
valuation, taxing into account of inflation, seniority promotion and
other factors in the employment.
Salary escalation - 5%
8. As at 31st March, 2015, the company had Rs.677.48 lakhs unabsorbed
depreciation and carried forward of losses under tax laws.
9. SEGMENTAL REPORTING:
The Company currently operates in one business segment in manufacturing
of PP bags and one geographical segment in India. In line with
Accounting Standard 17, as the relevant information is available from
the Balance Sheet and the Statement of Profit and Loss itself, and
therefore keeping in view of the objective of segment reporting, the
company has not disclosed segment information.
10. CONTINGENT LIABILITIES:
(Rs. In Lakhs)
Particulars As at 31.03.2015 As at 31.03.2014
a) Disputed Amount of Sales tax 5.63 5.63
b) Disputed Amount of Central Excise 6.31 6.31
No provision has been made in the accounts in respect of disputed
amount of sales tax as the company has contested the case and is
hopeful of getting the verdict in its favor. During the previous year,
the Company has received an order favoring them as no cost for the case
filed for the year 1994-95. The Appellate Tribunal has issued certain
claims/ show cause notices disputed have neither been considered as
contingent liability nor acknowledged as claim, based on the opinion
obtained, since the possibility of loss is remote.
11. Secured Loans availed from The Karnataka Bank Limited are secured
by first charge on specific assets acquired out of the loan and
personal guarantees of directors Sri. G. Radhakrishna, Sri. G. S.
Sridhar and Sri. G.V. Gopinath
12. (a) Working capital facilities from The Karnataka Bank Limited are
secured by first charge on the current assets consisting of stock of
raw materials, finished goods, work-in-process, debtors and personal
guarantees of directors Sri. G. Radhakrishna, Sri. G. S. Sridhar and
Sri. G.V. Gopinath.
(b) Additional working capital (Term Loan) facilities from The
Karnataka Bank Limited sanctioned in the month of February 2015,
repayable given a period of 15 months secured by first charge on the
current assets consisting of stock of raw materials, finished goods,
work-in -process, debtors and personal guarantees of directors Sri.
G. Radhakrishna, Sri. G.S. Sridhar and Sri. G.V. Gopinath.
13. Advances & Deposits includes an amount of Rs. 18,11,934/- being
Admitted and Disputed Sales Tax of Rs.15,84,266/- for various years
paid and Income Tax for the Assessment Year 1996-97 of Rs.2,27,668/-
paid, but kept as Deposit in the books since the company has gone on
appeal in respect of these matters. Necessary adjustments in the books
of accounts will be made in the year in which the outcome of the appeal
is known.
14. During the year deferred tax asset arising out of unabsorbed
depreciation has not been recognized in the absence of virtual
certainty supported by convincing evidence of future taxable income.
Unrecognized deferred tax asset will be reassessed in future years.
15. Previous year figures:
The company has reclassified previous year figures to conform to this
year's classification. It significantly impacts presentation and
disclosures made in the financial statements, particularly presentation
of balance sheet.
16. CAPACITY AND PRODUCTION DURING THE YEAR 2014-15: a. Product:
Polymer Product
Licensed Capacity : Not applicable
Installed Capacity : 3800 tons
Production : 2654 tons
Mar 31, 2014
The previous period figures have been regrouped/reclassified, wherever
necessary to conform to the current presentation.
1. The accumalated losses have increased to Rs. 431.60 lakhs resulting
in an erosion of 71% of the Networth of the Company. Operational
inefficiency, under-utilization of capacity, lack of orders, global
economic scenario and liquidity issues are the major contributing
factors for the losses incurred. In view of the change in the political
scenario, the company will be in a better position to sell the
unutilized land and buildings at Nellore which will bring in long term
funds to the Company to liquidate some of the borrowings resulting in
substantial saving of interest cost.
2. With respect to the Balances of Debtors & Creditors and
advances/deposits received from the customers as per books of account,
confirmations of balances are awaited and adjustments if any will be
made in the books on receipt of confirmations.
3. DUES TO MICRO, SMALL AND MEDIUM ENTERPRISES
The management is currently in the process of identifying enterprises
which have provided goods and services to the company which qualify
under the definition of micro, small and medium enterprises, as defined
in Micro, Small and Medium Enterprises Act 2001. Accordingly, based on
information available, the amount payable to such enterprises as on
31st March 2014 is Nil.
4. The computation of profit under section 349 of the Companies Act,
1956 is not considered necessary as the managerial remuneration that is
paid is minimum remuneration based on the effective capital of the
Company as prescribed under Schedule XIII of the said Act.
5. LEASES
Operating leases
The company is obligated under cancelable operating leases for
Kavarapet which are renewable at the options of the lessor and the
lessee. The expense under the contracted lease amounts to Rs.22.53 lacs
(previous year Rs.26.53 lacs)
6. Estimated rate of return on the plan assets 8%
The estimate of future salary increments, contribution in actual
valuation, taxing into account of inflation, seniority promotion and
other factors in the employment
Salary escalation - 5%
7. As at 31st March, 2014, the company had Rs.566.46 lakhs unabsorbed
depreciation and carried forward of losses under tax laws.
8. SEGMENTAL REPORTING
The Company currently operates in one business segment in manufacturing
of PP bags and one geographical segment in India. In line with
Accounting Standard 17, as the relevant information is available from
the balance sheet and the profit and loss account itself, and therefore
keeping in view of the objective of segment reporting, the company has
not disclosed segment information.
9. CONTINGENT LIABILITIES (Rs. in Lakhs)
Particulars As at 31.03.2014 As at 31.03.2013
Disputed Amount of Sales tax 5.63 13.88
Disputed Amount of Central Excise 6.31 6.31
No provision has been made in the accounts in respect of disputed
amount of sales tax as the company has contested the case and is
hopeful of getting the verdict in its favor. During the year, the
Company has received an order favoring them as no cost for the case
filed for the year 1994-95. The Appellate Tribunal has issued certain
claims/show cause notices disputed have neither been considered as
contingent liability nor acknowledged as claim, based on the opinion
obtained, since the possibility of loss is remote.
10. Secured Loans availed from The Karnataka Bank Limited are secured
by first charge on specific assets acquired out of the loan and
personal guarantees of directors Sri.G. Radhakrishna, Sri. G.S.Sridhar
and Sri. G.V.Gopinath.
11. (a) Working capital facilitates from The Karnataka Bank Limited
are secured by first charge on the current assets consisting of stock
of raw materials, finished goods, work-in-process, debtors and personal
guarantees of directors Sri. G. Radhakrishna, Sri. G.S.Sridhar and Sri.
G.V.Gopinath.
(b) Working capital loan converted to Term Loan, repayable given a
period of 3 years Secured by first charge on the current assets
consisting of stock of raw materials, finished goods, work-in-process,
debtors and personal guarantees of directors Sri. G. Radhakrishna, Sri.
G.S.Sridhar and Sri. G.V.Gopinath.
12. Advances & Deposits includes an amount of Rs.18,11,934/- being
Admitted and Disputed Sales Tax of Rs.15,84,266/- for various years
paid and Income Tax for the Assessment Year 1996-97 of Rs.2,27,668/-
paid, but kept as Deposit in the books since the company has gone on
appeal in respect of these matters. Necessary adjustments in the books
of accounts will be made in the year in which the outcome of the appeal
is known.
13. During the year deferred tax asset arising out of unabsorbed
depreciation has not been recognized in the absence of virtual
certainty supported by convincing evidence of future taxable income.
Unrecognized deferred tax asset will be reassessed in future years.
14. The company has reclassified previous year figures to conform to
this year''s classification. It significantly impacts presentation and
disclosures made in the financial statements, particularly presentation
of balance sheet.
Mar 31, 2013
The previous period figures have been regrouped/reclassified, wherever
necessary to confirm to the current presentation.
1. With respect to the Balances of Debtors & Creditors and
advances/deposits received from the customers as per books of account.
Confirmations of balances are awaited and adjustments if any will be
made in the books on receipt of confirmations.
2. DUES TO MICRO, SMALL AND MEDIUM ENTERPRISES
The management is currently in the process of identifying enterprises
which have provided goods and services to the company which qualify
under the definition of micro, small and medium enterprises, as defined
in Micro,
Small and Medium Enterprises Act 2001. Accordingly, based on
information available, the amount payable to such enterprises as on
31st March 2013 is Nil.
3. The computation of profit under section 349 of the Companies Act,
1956 is not considered necessary as the managerial remuneration that is
paid is minimum remuneration based on the effective capital of the
Company as prescribed under Schedule XIII of the said Act.
4. LEASES
Operating leases
The company is obligated under cancelable operating leases for
Kavarapet factory which are renewable at the options of the lessor and
the lessee. The expense under the contracted lease amounts to Rs. 26.53
lacs (previous year Rs. 29.73 lacs)
(ii) Defined Benefit Plans:
Gratuity:
The Gratuity liability is covered by a Master Policy taken out with LIC
of India under the Cash Accumulation Scheme. The Following table set;
out the status of the gratuity plan as required under AS 15.
Expended rate of return on the plan assets 8%
The estimate of future salary increments, contribution in actual
valuation, taking into account of inflation, seniority promotion and
other factors in the employment.
Salary escalation - 5%
5. As at 31st March, 2013, the company had Rs. 495.76 lakhs
unabsorbed depreciation and carried forward of losses under tax laws.
6. SEGMENTAL REPORTING
The company currently operates in one business segment in manufacturing
of PP bags and one geographical segment in India. In line with
Accounting Standard 17, as the relevant information is available from
the balance sheet and the Statement of Profit and Loss itself, and
therefore keeping in view of the objective of segment reporting, the
company has not disclosed segment information.
7. CONTINGENT LIABILITIES (Rs. in Lakhs)
Particulars As at 31.03.2013 As at 31.03.2012
Disputed Amount of Sales tax 13.88 13.88
Disputed Amount of Central Excise 6.31 6.31
No provision has been made in the accounts in respect of disputed
amount of sales tax as the company has contested the case and is
hopeful of getting the verdict in its favor. Certain claims/show cause
notices disputed have neither been considered as contingent liability
nor acknowledged as claim, based on the opinion obtained, since the
possibility of loss is remote.
8. Secured Loans availed from The Karnataka Bank Limited are secured
by first charge on specific assets acquired out of the loan and
personal guarantees of directors Sri G. Radhakrishna, Sri G.S.Sridhar
and Sri G.V.Gopinath, further Secured by personal guarantees of Sri
G.V.Chalapathi, and Sri G. Muralidhar.
9. (a) Working capital facilitates from The Karnataka Bank Limited
are secured by first charge on the current assets consisting of stock
of raw materials, finished goods, work-in-process, debtors and personal
guarantees of directors Sri G. Radhakrishna, Sri G.S. Sridhar and Sri
G.V. Gopinath.
(b) Working capital loan converted to Term Loan, repayable given a
period of 3 years Secured by first charge on the current assets
consisting of stock of raw materials, finished goods, work-in-process,
debtors and personal guarantees of directors Sri G. Radhakrishna, Sri
G.S. Sridhar and Sri G.V. Gopinath.
10. Advances & Deposits includes an amount of Rs. 16,55,273/- being
Admitted and Disputed Sales Tax of Rs. 14,27,605/- for various years
paid and Income Tax for the Assessment Year 1996-97 of Rs. 2,27,668/-
paid, but kept as Deposit in the books since the company has gone on
appeal in respect of these matters. Necessary adjustments in the books
of accounts will be made in the year in which the outcome of the appeal
is known.
11. During the year deferred tax asset arising out of unabsorbed
depreciation has not been recognized in the absence of virtual
certainty supported by convincing evidence of future taxable income.
Unrecognized deferred tax asset will be reassessed in future years.
12. The company has reclassified previous year figures to conform to
this year''s classification. It significantly impacts presentation and
disclosures made in the financial statements, particularly presentation
of balance sheet.
Mar 31, 2012
1. With respect to the Balances of Debtors & Creditors and
advances/deposits received from the customers as per books of account.
Confirmation of balances are awaited and adjustments if any will be
made in the books on receipt of confirmations.
2. DUES TO MICRO'SMALL AND MEDIUM ENTERPRISES
The management is currently in the process of identifying enterprises
which have provided goods and services to the Company which qualify
under the definition of micro'small and medium enterprises'as defined
in Micro'Small and Medium Enterprises Act 2001. Accordingly'based
on information available'the amount payable to such enterprises as on
31st March 2012 is Nil.
3. The computation of profit under section 349 of the Companies
Act,1956 is not considered necessary as the managerial remuneration
that is paid is minimum remuneration based on the effective capital of
the Company as prescribed under Schedule XIII of the said Act.
4. LEASES
Operating leases
The Company is obligated under cancelable operating leases for
Kavarapet factory which are renewable at the options of the lessor and
the lessee. The expense under the contracted lease amounts to Rs.29.73
Lakhs ( previous year Rs.21.83 Lakhs)
5. As at 31st March,2012'the Company had Rs.471.39 lakhs unabsorbed
depreciation and carried forward of losses under tax laws.
6. SEGMENTAL REPORTING
The Company currently operates in one business segment in manufacturing
of PP bags and one geographical segment in India. In line with
Accounting Standard 17'as the relevant information is available from
the balance sheet and the statement of profit and loss itself'and
therefore keeping in view of the objective of segment reporting'the
Company has not disclosed segment information.
7. CONTINGENT LIABILITIES (Rs. in Lakhs)
Particulars As at
31.03.2012 As at
31.03.2011
a) Disputed Amount
of Sales tax 13.88 13.88
b) Disputed Amount
of Central Excise 6.31 6.31
No provision has been made in the accounts in respect of disputed
amount of sales tax as the Company has contested the case and is
hopeful of getting the verdict in its favour. Certain claims/show cause
notices disputed have neither been considered as contingent liability
nor acknowledged as claim'based on the opinion obtained'since the
possibility of loss is remote.
8. Secured Loans availed from The Karnataka Bank Limited are secured
by first charge on specific assets acquired out of the loan and
personal guarantees of directors Sri.G. Radhakrishna'Sri. G.S.Sridhar
and Sri. G.V.Gopinath'further Secured by personal guarantees of Sri.
G.V.Chalapathi'and Sri. G. Muralidhar.
9. (a) Working capital facilitates from The Karnataka Bank Limited
are secured by fi rst charge on the
current assets consisting of stock of raw materials'finished goods,
work-in-process'debtors and personal guarantees of directors Sri.G.
Radhakrishna'Sri. G.S.Sridhar and Sri. G.V.Gopinath.
(b) Working capital loan converted to Term Loan'repayable given a
period of 3 years Secured by first charge on the current assets
consisting of stock of raw materials'finished goods'work-in-
process'debtors and personal guarantees of directors Sri.G.
Radhakrishna'Sri. G.S.Sridhar and Sri. G.V.Gopinath.
8. Advances & Deposits includes an amount of Rs.16.55 Lakhs being
Admitted and Disputed Sales Tax of Rs.14.27 Lakhs for various years
paid and Income Tax for the Assessment Year 1996-97 of Rs.2.27 Lakhs
paid'but kept as Deposit in the books since the Company has gone on
appeal in respect of these matters. Necessary adjustments in the books
of accounts will be made in the year in which the outcome of the appeal
is known.
9. During the year deferred tax asset arising out of unabsorbed
depreciation has not been recognized in the absence of virtual
certainty supported by convincing evidence of future taxable income.
Unrecognized deferred tax asset will be reassessed in future years.
10. PREVIOUS YEAR FIGURES
Till the year ended 31st March 2011'the company was using pre-revised
Schedule VI to the Companies Act 1956'for preparation and presentation
of financial statements. During the year ended 31st March 2012'the
revised Schedule VI notified under the Companies Act 1956'has become
applicable to the Company. The company has reclassified previous year
figures to conform to this yearÃs classifi cation. It signifi cantly
impacts presentation and disclosures made in the financial statements,
particularly presentation of balance sheet.
Mar 31, 2011
1. CONTINGENT LIABILITIES
As at As at
31.03. 2011 31.03. 2011
(Rs.) (Rs.)
a) Disputed Amount of Sales tax 13,88,945 13,88,945
b) Disputed Amount of Central 6,31,723 6,31,723
Excise
2. Secured Loans availed from The Karnataka Bank Limited are secured
by first charge on specific assets acquired out of the loan and
personal guarantees of directors Sri. G.Radhakrishna, Sri. G.S.Sridhar
and Sri. G.V.Gopinath, further Secured by personal guarantees of Sri.
G.V.Chalapathi, and Sri. G.Muralidhar.
3 (a) Working capital facilitates from The Karnataka Bank Limited are
secured by first charge on the current assets consisting of stock of
raw materials, finished goods, work-in-process, debtors and personal
guarantees of directors Sri. G. Radhakrishna, Sri. G.S.Sridhar and Sri.
G.V.Gopinath.
(b) Working capital loan converted to Term Loan, repayable given a
period of 3 years Secured by first charge on the current assets
consisting of stock of raw materials, finished goods, work-in-process,
debtors and personal guarantees of directors Sri. G. Radhakrishna, Sri.
G.S.Sridhar and Sri. G.V.Gopinath.
4. Advances & Deposits includes an amount of Rs.16,55,273/- being
Admitted and Disputed Sales Tax of Rs.14,27,605/- for various years
paid and Income Tax for the Assessment Year 1996-97 of Rs.2,27,668/-
paid, but kept as Deposit in the books since the company has gone on
appeal with respect to these matters. Necessary adjustments in the
books of accounts will be made in the year in which the outcome of the
appeal is known.
5. During the year deferred tax asset arising out of depreciation has
not been recognized in the absence of virtual certainty supported by
convincing evidence of future taxable income. Unrecognized deferred
tax asset will be reassessed in future years.
6. Previous year figures have been regrouped and recast wherever
necessary for comparison purpose.
Mar 31, 2010
1. LEASES
The company is obligated under cancellable operating leases for
Kavarapet and Marasur factories which are renewable at the options of
both the lessor and the lessee. The expense under the contracted lease
amounts to Rs. 31,50,956/- ( previous year Rs. 42,25,691/-)
2. DISCLOSURE UNDER AS-15
2009 - 2010 2008 - 2009
(i) Defined Contribution Plans:-
(a) Contribution to Provident Fund Rs.9,15,579/- Rs. 8,67,571/-
(b) Contribution to
Superannuation Fund Rs. 4,33,284/- Rs. 4,33,284/-
Effective 1st April 2009, the company has adopted revised accounting
standard AS15 - "Employee Benefits" issued by the ICAI.
(ii) Defined Benefit Plans:-
Gratuity: -
The Gratuity liability is covered by a Master Policy taken out with LIC
of India under the Cash Accumulation Scheme. The Following table set
out the status of the gratuity plan as required under section AS 15.
Expended rate of return on the plan assets 8%
The estimate of future salary increments, contribution in actual
valuation, taxing into account of inflation, seniority promotion and
other factors in the employment.
3. As at 31st March,2010, the company had Rs.659.08 lakhs unabsorbed
depreciation and carried forward of losses under tax laws.
4. SEGMENTAL REPORTING
The company currently operates in one business segment in manufacturing
of PP bags and one geographical segment in India. In line with AS 17,
the relevant information is available in the balance sheet and the
profit and loss account.
5. (a) Working capital facilitates from The Karnataka Bank Limited
are secured by first charge on the current assets consisting of stock
of raw materials, finished goods, work-in-process, debtors and personal
guarantees of Messrs. G.V.Chalapathi, G.Muralidhar, G. Radhakrishna,
G.S.Sridhar and G.V.Gopinath, Directors of the company .
(b) Working capital loan converted to Term Loan, repayment of 3 years
Secured with existing terms & conditions.
6. Interest Free Sales Tax Deferral :
Due Within 1 year : Rs. 18,19,125/-
Due Within 1 to 5 Years : Rs. 1,24,25,789/-
Due more than 5 Years : Rs. 84,23,296/-
7. Advances & Deposits include an amount of Rs. 16,55,273/- being
Admitted and Disputed Sales Tax of Rs. 14,27,605/- for various years
paid and Income Tax for the Assessment Year 1996-97 of Rs.2,27,668/-
paid, but kept as Deposit in the books since the company has gone on
appeal in respect of these matters. Necessary adjustments in the books
of accounts will be made in the year in which the outcome of the appeal
is known.
8. Deferred Tax Liability accrued during the year aggregating to Rs.
(27,41,541/-) Previous year Rs. 1,06,24,299/-) has been recognised in
P&L A/c.
9. Confirmation of Balances in respect of debtors, creditors are not
obtained in few cases.
10. Previous year figures have been regrouped and recast wherever
necessary for comparison purpose.
11. Capacity and Production during the year 2009 - 2010
Product : Polymer Products
Licensed Capacity : Not Applicable
Installed Capacity : 7920 Tons
Production : 3907 Tons