Mar 31, 2018
1 CORPORATE INFORMATION
Sunil Hitech Engineers Limited ("the Company") is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956 (as amended by the Companies Act, 2013). its shares are listed on two stock exchanges in India. The Company is engaged in the business of Engineering, Procurement, Construction-(EPC), Fabrication, Erection, Overhauling, Maintenance, Trading and other related activities.
2. Terms/ Rights attached to equity shares
The Company has only one class of equity shares with voting rights having a par value of Rs.1* per share. The Company declares and pays dividends in Indian rupees. The final dividend proposed by the Board of Directors is subject to approval of the shareholders at the ensuing Annual General Meeting.
* The Face value of share of the company is sub-divided from Rs.10 each to Rs.1 each from record date 3rd December, 2016.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive 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.
As per records of the Company, including its register of shareholders/ members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.
3. MONEY RECEIVED AGAINST SHARE WARRANTS
3.1 During the Financial Year 2016-17, Company has allotted 50,50,000 warrants to the Companies under promoter group at a price of Rs.55.40 per warrant which entitles the allottees to subscribe 5,05,00,000 Equity shares of Rs.1* each.
* The face value of share of the company is sub-divided from Rs.10 each to Rs.1 each during the year.
3.2 Out of 50,50,000 warrants allotted to companies under Promoter group, 15,75,000 warrants converted into 1,57,50,000 Equity shares of Rs.1 each.
The Equity shares so allotted rank pari passu in all respects with the existing Equity shares of the Company.
3.3 After conversion of 15,75,000 warrants mentioned at Note 5.2 above, 34,75,000 warrants remained outstanding at end of the Financial year 2016-17 which entitles its holders to subscribe for 3,47,50,000 shares of Rs.1 each.
4.1 Term loan from Banks referred above to the extent of :
a) Rs.304.09 Lacs (Pr. Yr. Rs.439.85 Lacs) are secured by first mortgage/ pari-passu charge on the respective buildings situated at Pune and Nagpur.
b) Rs.285.08 Lacs (Pr. Yr. Rs.491.29 Lacs) secured by first hypothecation/ pari-passu charge on the respective plant and machineries including Hydra''s at various sites.
c) Rs.148.19 Lacs (Pr. Yr. Rs.92.22 Lacs) are secured by first hypothecation/ pari-passu charge on the respective Vehicles at various sites.
4.2 Term loan from Financial Institutions referred above to the extent of:
a) Rs.1,332.39 Lacs (Pr. Yr. Rs.1,434.71) are secured by first mortgage/ pari-passu charge on the respective buildings situated at Nagpur and Mumbai.
b) Rs.4,493.31 Lacs (Pr. Yr. Rs.2,271.61 Lacs) are secured by first hypothecation/ pari-passu charge on the respective plant and machineries including Hydra''s situated at various sites.
c) Rs.1,500.00 Lacs (Pr. Yr. Rs.2,650.00) are secured against retention money receivable from Parli Project.
5.1 Working Capital Loans are secured by hypothecation of present and future stock of raw materials, stores and spares, book debts and other receivables and have Second Charge on Fixed Assets of the Company and personal guarantee of some of the Directors.
a) Charge against certain immovable properties situated at Ramtek (Included in Freehold Land) have been created in favour of Oriental Bank of Commerce in respect of Corporate Guarantee given by Sunil Hitech Engineers Limited on behalf of one of its Subsidiary Company SEAM Industries Limited.
6. COMMITMENTS
a) Estimated amount of contracts remaining to be executed on capital account and not provided for, net of advances Rs. Nil (Pr. Yr. 6.99 Lacs)
b) Other Commitments - Non cancellable operating Leases (Refer Note 40)
The Company has paid dividend in respect of shares held by Non-Resident Shareholders, on repatriation basis. This inter-alia includes portfolio investment and direct investment, where the amount is also credited to Non-Resident External A/c. The exact amount of dividend remitted in foreign currency can not be ascertained.
7. EMPLOYEE BENEFITS
As required by Accounting Standard-15 "Employee Benefits" the disclosures are as under:
Defined Contribution Plans:
The Company offers its employees defined contribution plans in the form of Provident Fund (PF) and Employees'' Pension Scheme (EPS) with the Government and certain state plans such as Employees'' State insurance (ESI). PF and EPS covers substantially all regular employees and the ESI covers eligible workers. Contributions are made to the Government''s funds. While both the employees and the Company pay predetermined contributions into the PF and the ESI Scheme, contributions into the EPS is made only by the Company. The contributions are normally based on a certain portion of the employee''s salary.
Defined Benefit Plans Leave Encashment:
The Company''s employees are entitled for compensated absences which are allowed to be accumulated and encashed as per the Company rules.
The Liability of compensated absences, which is non funded, has been provided based on the report of independent actuary using the "Projected Unit Credit Method" in respect of past services. Accordingly Rs.133.65 Lacs (Pr. Yr. Rs.174.41 Lacs) being the liability as at the year end for compensated absences have been provided in the accounts.
Gratuity:
The Employees'' Gratuity Fund scheme is a defined benefits plan. The present value of obligation is determined based on the actuarial valuation, using the "Projected Unit Credit Method" which recognises each period of services as giving rise to additional unit of employee benefits entitlement and measures each unit separately to build up the final obligation.
The Company makes contributions to the Employees'' Group Gratuity-cum Life Assurance (Cash Accumulation) Scheme of the LIC, a funded defined benefit plan for employees. The scheme provides for payment to employees as under:
i) On normal retirement/ early retirement/ withdrawal/ resignation:
As per the provisions of The Payment of Gratuity Act, 1972 with vesting period of 5 years of service.
ii) On the death in service:
As per the provisions of The Payment of Gratuity Act, 1972 without any vesting period.
8. DISCLOSURE FOR OPERATING LEASES UNDER ACCOUNTING STANDARD-19 "LEASES"
The Company has taken various residential/ office premises (including furniture and fittings, therein as applicable), under operating lease or leave and license agreements. These are generally cancellable under leave and license arrangements and are renewable by mutual consent on mutually agreeable terms. The company has given refundable interest free security deposits in accordance with the agreed terms. The lease payments of Rs.628.61 Lacs (Pr. Yr. Rs.1082.19 Lacs) are recognised in the Statement of Profit and Loss.
9. in terms of the requirements of the Accounting Standard-28 on "impairment of Assets" the amount recoverable against Fixed Assets has been estimated for the period by the management based on present value of estimated future cash flows expected to arise from the continuing use of such assets. The recoverable amount so assessed was found to be adequate to cover the carrying amount of the assets, therefore no provision for impairment in value thereof has been considered necessary, by the management.
10. SEGMENT REPORTING
Based on guiding principles given in Accounting Standard on "Segment Reporting" - AS17 as specified in the Companies (Accounting Standard) Rules, 2006 (as amended), single financial report contains both Standalone financial statement and Consolidated financial statement of the Company. Hence, the required segment information has been appended in the Consolidated Financial Statements (CFS).
Notes:
i) Above Loans and Advances are repayable on demand.
ii) Loans and Advances to employees/ customers and investments by such employees/ customers in the shares of the company if any, are excluded from the above disclosure.
C. There is no investment by loanee in the shares of Parent Company/ Subsidiary Company.
11. Disclosure of Trade payables to Micro, Small and Medium Enterprises under Current Liabilities is based on the information available with the Company regarding the Status of the suppliers as defined under the "Micro, Small and Medium Enterprises Development Act, 2006" and relied upon by the Auditors. Amount outstanding (not overdue) as on 31 March 2017 to Micro, Small and Medium Enterprises on account of principal amount aggregate to Rs.41.23 Lacs (Pr. Yr. Rs.36.53 Lacs) and interest payable thereon Rs. Nil (Pr. Yr. Rs. Nil) and interest paid during the year Rs. Nil (Pr. Yr. Rs. Nil).
12. The Board of Directors of the Company have proposed a final dividend of Rs.0.075 per share in respect of the year ending 31st March 2017 subject to the approval of shareholders at the Annual General Meeting. if approved, the dividend would result in a cash outflow of Rs.341.22 Lacs inclusive of Dividend Distribution Tax of Rs.57.72 Lacs.
13. During the year the Company has divested 10% of its stake in GSEL of Rs.650 Lacs pursuant to a share transfer agreement as a result of which it ceases to be an Associate.
14. Balance of some of the Trade Receivables and Trade Payables are subject to confirmation/ reconciliation and adjustments, if any.
15. Previous year''s figures are regrouped and recasted wherever required.
Mar 31, 2016
1. Terms/ Rights attached to equity shares
The Company has only one class of equity shares with voting rights having a par value of '' 10 per share. The Company declares and pays dividends in Indian rupees. The final dividend proposed by the Board of Directors is subject to approval of the shareholders at the ensuing Annual General Meeting.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive 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.
2. MONEY RECEIVED AGAINST SHARE WARRANTS
3. During the Financial Year 2015-16, Warrants aggregating to 18,50,000 which were allotted to Non-Promoters are converted into Equity shares of Rs.10/- each on 11th August, 2015. Similarly Warrants aggregating to 2, 00,000 which were allotted to person acting in concert with the promoters are converted into Equity shares of Rs.10/- each on 16th February, 2016.
The equity shares so allotted rank pari passu in all respects with the existing Equity shares of the Company.
4. Company is in the process of obtaining in-principal approval from stock exchanges where the equity shares of the company are listed for the allotment of 53,00,000 warrants to the companies under promoters group at a price of Rs. 55.40 per warrant which entitles the allotted to subscribe 53,00,000 shares of Rs.10/- each.
5. Term loan from Banks referred above to the extent of:
a) Rs, 439.85 Lacs (Pr.Yr. Rs, 537.07 Lacs) are secured by first mortgage/ pari-passu charge on the respective buildings situated at Pune and Nagpur.
b) Rs, 491.29 Lacs (Pr.Yr. Rs,794.80 Lacs) secured by first hypothecation/ pari-passu charge on the respective plant and machineries including Hydra''s at various sites.
c) Rs, 92.22 Lacs (Pr.Yr Rs, 57.99 Lacs) are secured by first hypothecation/ pari-passu charge on the respective Vehicles at various sites.
6. Term loan from Financial Institutions referred above to the extent of:
a) Rs,1,434.71 Lacs (Pr.Yr. Rs,1,197.32) are secured by first mortgage/ pari-passu charge on the respective buildings situated at Nagpur and Mumbai.
b) Rs, 2,271.61 Lacs (Pr.Yr. Rs,2,065.34 Lacs) are secured by first hypothecation/ pari-passu charge on the respective plant and machineries including Hydra''s situated at various sites.
c) Rs, Nil Lacs (Pr.YrRs, 2.19 Lacs) are secured by first hypothecation/ pari-passu charge on the respective Vehicles at various sites.
d) Rs, Nil Lacs (Pr.Yr. Rs, 1.61 Lacs) are secured by first and exclusive hypothecation on the respective non consumable materials.
Note for 13.1 &13.2
a) Charge against certain immovable properties situated at Armtek (Included in Freehold Land) have been created in favor of Oriental Bank of Commerce in respect of Corporate Guarantee given by Sunil Hi-tech Engineers Limited on behalf of one of its Subsidiary Company SEAM Industries Limited.
b) Deductions and adjustments includes Rs.NIL (Pr Yr Rs.45.27 Lacs) transferred to Retained Earnings as per Schedule II of the Companies Act 2013.
The Company has paid dividend in respect of shares held by Non-Resident Shareholders, on repatriation basis. This inter-alia includes portfolio investment and direct investment, where the amount is also credited to Non-Resident External A/c. The exact amount of dividend remitted in foreign currency cannot be ascertained.
7. EMPLOYEE BENEFITS
As required by Accounting Standard-15 "Employee Benefits" the disclosures are as under:
Defined Contribution Plans:
The Company offers its employees defined contribution plans in the form of Provident Fund (PF) and Employees'' Pension Scheme (EPS) with the Government and certain state plans such as Employees'' State Insurance (ESI). PF and EPS cover substantially all regular employees and the ESI covers eligible workers. Contributions are made to the Government''s funds. While both the employees and the Company pay predetermined contributions into the PF and the ESI Scheme, contributions into the EPS is made only by the Company. The contributions are normally based on a certain portion of the employee''s salary.
Defined Benefit Plans Leave Encashment:
The Company''s employees are entitled for compensated absences which are allowed to be accumulated and encased as per the Company rules.
The Liability of compensated absences, which is non funded, has been provided based on the report of independent actuary using the "Projected Unit Credit Method" in respect of past services. Accordingly Rs, 174.41 Lacs (Pr.Yr. Rs, 301.80 Lacs) being the liability as at the yearend for compensated absences have been provided in the accounts.
Gratuity:
The Employees'' Gratuity Fund scheme is a defined benefits plan. The present value of obligation is determined based on the actuarial valuation, using the "Projected Unit Credit Method", which recognizes each period of services as giving rise to additional unit of employee benefits entitlement and measures each unit separately to build up the final obligation.
The Company makes contributions to the Employees'' Group Gratuity-cum Life Assurance (Cash Accumulation) Scheme of the LIC, a funded defined benefit plan for employees. The scheme provides for payment to employees as under:
i) On normal retirement/ early retirement/ withdrawal/ resignation:
As per the provisions of The Payment of Gratuity Act, 1972 with vesting period of 5 years of service.
ii) On the death in service:
As per the provisions of The Payment of Gratuity Act, 1972 without any vesting period.
8. DISCLOSURE FOR OPERATING LEASES UNDER ACCOUNTING STANDARD-19 âLEASES"
The Company has taken various residential/ office premises (including furniture and fittings, therein as applicable), under operating lease or leave and license agreements. These are generally cancellable under leave and license arrangements and are renewable by mutual consent on mutually agreeable terms. The company has given refundable interest free security deposits in accordance with the agreed terms. The lease payments of Rs, 1082.19 Lacs (Pr.Yr. Rs, 1138.90 Lacs) are recognized in the Statement of Profit and Loss.
9. In terms of the requirements of the Accounting Standard-28 on "Impairment of Assets" issued by the Institute of Chartered Accountants of India, the amount recoverable against Fixed Assets has been estimated for the period by the management based on present value of estimated future cash flows expected to arise from the continuing use of such assets. The recoverable amount so assessed was found to be adequate to cover the carrying amount of the assets, therefore no provision for impairment in value thereof has been considered necessary, by the management.
10. SEGMENT Reporting
Based on guiding principles given in Accounting Standard on "Segment Reporting" - AS17 as specified in the Companies (Accounting Standard) Rules, 2006 (as amended), single financial report contains both Standalone financial statement and Consolidated financial statement of the Company. Hence, the required segment information has been appended in the Consolidated Financial Statements (CFS).
11. note on hedge and unheeded foreign currency assets and liabilities
During the year, the Company has not entered into any forward exchange contract, being derivative instruments for hedge or trading or speculation purpose. No Forward Exchange Contracts are outstanding as at the year end. The yearend foreign currency exposures that have not been hedged by derivative instrument or otherwise are as below.
Notes:
i) Above Loans and Advances are repayable on demand.
ii) Loans and Advances to employees/ customers and investments by such employees/ customers in the shares of the company if any, are excluded from the above disclosure.
C. There is no investment by loaned in the shares of Parent Company/ Subsidiary Company.
12. The company has entered into a Joint Venture with Phenix Building Solutions Private Limited named as "PBSPL - SHEL - JV", a jointly controlled entity incorporated in India where in the company holds 49% interest.
Details of Company''s interest in the aforesaid joint venture as per the requirement of AS-27 on Financial Reporting of Interest in Joint Venture is as under :
13. Disclosure of Trade payables to Micro, Small and Medium Enterprises under Current Liabilities is based on the information available with the Company regarding the Status of the suppliers as defined under the "Micro, Small and Medium Enterprises Development Act, 2006" and relied upon by the Auditors. Amount outstanding (not overdue) as on 31 March 2016 to Micro, Small and Medium Enterprises on account of principal amount aggregate to '' 36.53 Lacs (Pr.Yr. '' 3.06 Lacs) and interest payable thereon '' Nil (Pr.Yr. '' Nil) and interest paid during the year '' Nil (Pr.Yr. '' Nil).
14. Balance of some of the Trade Receivables and Trade Payables are subject to confirmation/ reconciliation and adjustments, if any.
15. Previous year''s figures are regrouped and recanted wherever required.
Mar 31, 2015
1 GENERAL INFORMATION
Sunil Hitech Engineers Limited ("the Company") is a public company
domiciled in India and incorporated under the provisions of the
Companies Act, 1956 (as amended by the Companies Act, 2013). Its shares
are listed on two stock exchanges in India. The Company is engaged in
the business of Engineering, Procurement, Construction-(EPC),
Fabrication, Erection, Overhauling, Maintenance, Trading and other
related activities.
1.1 Terms/ Rights attached to equity shares
The Company has only one class of equity shares with voting rights
having a par value of H10 per share. The Company declares and pays
dividends in Indian rupees. The final dividend proposed by the Board of
Directors is subject to approval of the shareholders at the ensuing
Annual General Meeting.
In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive remaining assets of the company,
after distribution of all preferential amounts. The distribution will
be in proportion to the number of equity shares held bythe
shareholders.
1.2 The Company is not a Subsidiary Company.
1.3 Reserved Shares and Terms of Warrants
The convertible warrant holders have the option to convert their
warrants into 20,50,000 (Pr.Yr. 16,50,000) equity shares of H10/- each
at the terms and conditions as referred in Note 5.
2 MONEY RECEIVED AGAINST SHARE WARRANTS
2.1 The members at the Extra Ordinary General Meeting held on 18 April
2014 has authorized the Board/ Committee thereof, to create, offer,
issue and allot on preferential basis (i) 55,00,000 warrants
convertible into equity shares to the Promoters Group, Persons acting
in concert with Promoters or Companies under Promoters Group and (ii)
20,00,000 warrants convertible into equity shares to the Non Promoters
Investors.
2.2 Terms attached to equity warrants
The warrant entitles the holder to subscribe for one equity shares of
H10/- each at the premium of H45.40 per equity shares which is
determined in accordance with the provisions of SEBI (Issue of Capital
& Disclosure Requirements) Regulations, 2009. On 21st November 2014
warrants aggregating to 20,50,000 has been alloted to person acting in
concert with promoters and non promoters after receiving H13.85, being
25% of H55.40, per warrant.
The holders of 20,50,000 warrants have an option to apply for and be
allotted one equity share of the Company per warrant before the expiry
of 18 months from date of allotment. If the option is not excercised as
aforesaid amount paid on such warrants shall stand forfeited.
The warrant holders shall also be entitled to any future bonus/ rights
issue(s) of equity shares or other securities convertible into equity
shares by the Company in the same proportion and manner as any other
shareholders of the Company for the time being. The Equity shares to
be allotted on conversion of warrants shall rank pari passu in all
respects with the existing equity shares of the Company.
Company is in the process of obtaining in principal approval for the
allotment of 53,00,000 warrants to promoters and promoters group.
Proposed allottees of 1,50,000 warrants has not subscribed the
warrants.
3.1 Term loan from Banks referred above to the extent of :
a) Rs.537.07 Lacs (Pr.Yr. Rs.419.03 Lacs) are secured by first mortgage/
pari-passu charge on the respective buildings situated at Pune and
Nagpur.
b) Rs.794.80 Lacs (Pr.Yr. Rs.196.70 Lacs) secured by first hypothecation/
pari-passu charge on the respective plant and machineries including
Hydra's at various sites.
c) Rs.57.99 Lacs (Pr.Yr. Rs.61.21 Lacs) are secured by first hypothecation/
pari-passu charge on the respective Vehicles at various sites.
d) Nil (Pr.Yr. Rs.2,056.54 Lacs) are secured by exclusive charge over the
project specific total assets including receivables of the Kolhapur T&D
site.
3.2 Term loan from Financial Institutions referred above to the extent
of:
a) Rs.1,197.32 Lacs (Pr.Yr. Nil) are secured by first mortgage/
pari-passu charge on the respective buildings situated at Nagpur and
Mumbai.
b) Rs.2,065.33 Lacs (Pr.Yr. Rs.1,167.96 Lacs) are secured by first
hypothecation/ pari-passu charge on the respective plant and
machineries including Hydra's situated at various sites.
c)Rs.2.19 Lacs (Pr.Yr. Rs.4.37 Lacs) are secured by first hypothecation/
pari-passu charge on the respective Vehicles at various sites.
d) Rs.1.61 Lacs (Pr.Yr. Rs.19.56 Lacs) are secured by first and exclusive
hypothecation on the respective non consumable materials.
e) Rs.1,400.00 Lacs (Pr.Yr. Nil) are secured against retention money
receivable from Parli Project.
4.1 Working Capital Loans are secured by hypothecation of present and
future stock of raw materials, stores and spares, book debts and other
receivables and have Second Charge on Fixed Assets of the Company and
personal guarantee of some of the Directors.
Of the above Nil (Pr.Yr. Rs.3,000.00 Lacs) are secured by first
hypothecation/ pari-passu charge on the stock and receivables of the
project at Jhabua site.
5 COMMITMENTS
a) Estimated amount of contracts remaining to be executed on capital
account and not provided for, net of advances Rs.222.16 Lacs (Pr.Yr.
33.98 Lacs)
b) Other Commitments - Non cancellable operating Leases (Refer Note 36)
6 CONTINGENT LIABILITIES
(Rs. In Lacs)
Particulars 31 March 2015 31 March 2014
a) Service Tax demand disputed,
contested in appeal 972.69 1,580.12
b) Sales Tax demand disputed, contested
in appeal 39.84 39.84
c) Customs Duty disputed 115.49 115.49
d) Income Tax disputed, contested in
appeal 291.17 -
e) Guarantee given to Banks and Financial
Institutions - 58,132.86 50,097.19
f) Guarantee given to Banks and Financial
Institutions on behalf of -
i) A subsidiary company 8,879.00 9,279.00
- Loans/ LC/ BG outstanding at the
year end 7,162.51 7,507.41
ii) An Associate Company 2,401.88 2,500.00
- Loans outstanding at the year end - 478.33
iii) Others 220.00 3,210.00
g) Claims against the Company not
acknowledged as debts 111.76 101.37
7 EMPLOYEE BENEFITS
As required by Accounting Standard-15 "Employee Benefits" the
disclosures are as under:
Defined Contribution Plans:
The Company offers its employees defined contribution plans in the form
of Provident Fund (PF) and Employees' Pension Scheme (EPS) with the
Government and certain state plans such as Employees' State Insurance
(ESI). PF and EPS covers substantially all regular employees and the
ESI covers eligible workers. Contributions are made to the Government's
funds. While both the employees and the Company pay predetermined
contributions into the PF and the ESI Scheme, contributions into the
EPS is made only by the Company. The contributions are normally based
on a certain portion of the employee's salary.
During the year, the Company has recognised the following amounts in
the Accounts:
Defined Benefit Plans Leave Encashment:
The Company's employees are entitled for compensated absences which are
allowed to be accumulated and encashed as per the Company rules.
The Liability of compensated absences, which is non funded, has been
provided based on the report of independent actuary using the
"Projected Unit Credit Method" in respect of past services.
Accordingly H301.80 Lacs (Pr.Yr. Rs.226.54 Lacs) being the liability as
at the year end for compensated absences have been provided in the
accounts.
Gratuity:
The Employees' Gratuity Fund scheme is a defined benefits plan. The
present value of obligation is determined based on the actuarial
valuation, using the "Projected Unit Credit Method", which recognises
each period of services as giving rise to additional unit of employee
benefits entitlement and measures each unit separately to build up the
final obligation.
The Company makes contributions to the Employees' Group Gratuity-cum
Life Assurance (Cash Accumulation) Scheme of the LIC, a funded defined
benefit plan for employees. The scheme provides for payment to
employees as under:
i) On normal retirement/ early retirement/ withdrawal/ resignation:
As per the provisions of The Payment of Gratuity Act, 1972 with vesting
period of 5 years of service.
ii) On the death in service:
As per the provisions of The Payment of Gratuity Act, 1972 without any
vesting period.
Disclosures for defined benefit plans i.e. Gratuity (Funded Plan) based
on actuarial reports as on 31 March 2015:
8 DISCLOSURE FOR OPERATING LEASES UNDER ACCOUNTING STANDARD-19
"LEASES"
The Company has taken various residential/ office premises (including
furniture and fittings, therein as applicable), under operating lease
or leave and license agreements. These are generally cancellable under
leave and license arrangements and are renewable by mutual consent on
mutually agreeable terms. The company has given refundable interest
free security deposits in accordance with the agreed terms. The lease
payments of H1138.90 Lacs (Pr.Yr. H987.43 Lacs) are recognised in the
Statement of Profit and Loss.
9 In terms of the requirements of the Accounting Standard-28 on
"Impairment of Assets" issued by the Institute of Chartered
Accountants of India, the amount recoverable against Fixed Assets has
been estimated for the period by the management based on present value
of estimated future cash flows expected to arise from the continuing
use of such assets. The recoverable amount so assessed was found to be
adequate to cover the carrying amount of the assets, therefore no
provision for impairment in value thereof has been considered
necessary, by the management.
10 RELATED PARTY DISCLOSURE WITH WHOM TRANSACTIONS HAVE TAKEN PLACE
DURING THE YEAR AS REQUIRED BY ACCOUNTING STANDARD - 18 ARE GIVEN
BELOW:
Category I : Subsidiaries :
SEAM Industries Limited
Sunilhitech India Infra Private Limited (Formerly Known as Ecological
Road Construction Private Limited)
Sunilhitech Solar (Dhule) Private Limited Sunil Hitech Energy Private
Limited SHEL Investments Consultancy Private Limited Patna Green Energy
Private Limited
Category II : Associates : Gangakhed Sugar & Energy Limited
V. K. Realtors (Partnership Firm)
Category III : Joint Venture : PBSPL - SHEL - JV
SHEL ASSIGNIA - JV
Category IV: Directors, Key Management Personnel and their Relatives:
Mr. Ratnakar Manikrao Gutte Mrs. Sudhamati Ratnakar Gutte Mr. Sunil
Ratnakar Gutte Mr. Vijay Ratnakar Gutte
Mr. Mohanan Narayanan Mattathil (till 8th Oct 2014) Mr. Venkataramana
Condoor
Mr. Anupam Gianchand Dhiman (w.e.f. 14 Oct 2014) Mrs. Swati Rajesh Phad
CS Shrikant Rikhe
Category V : Enterprise over which persons covered under Category IV
above are able to exercise significant control
Gutte Infra Private Limited
VRG Digital Corporation Private Limited
RSV & Associates
Kolhapur Green Energy Private Limited
11 Disclosure of Trade payables to Micro, Small and Medium Enterprises
under Current Liabilities is based on the information available with
the Company regarding the Status of the suppliers as defined under the
"Micro, Small and Medium Enterprises Development Act, 2006" and
relied upon by the Auditors. Amount outstanding (not overdue) as on 31
March 2015 to Micro, Small and Medium Enterprises on account of
principal amount aggregate to H3.06 Lacs (Pr.Yr. H54.45 Lacs) and
interest payable thereon Rs.Nil (Pr.Yr. Rs.Nil) and interest paid during
the year Rs.Nil (Pr.Yr. Rs.Nil).
12 Balance of some of the Trade Receivables and Trade Payables are
subject to confirmation/ reconciliation and adjustments, if any.
13 Previous year's figures are regrouped and recasted wherever
required.
Mar 31, 2014
1 COMMITMENTS
a) Estimated amount of contracts remaining to be executed on capital
account and not provided for, net of advances H 33.98 Lacs (Pr.Yr. NIL)
b) Other Commitments - Non cancellable operating Leases (Refer Note 40)
2 CONTINGENT LIABILITIES
Particulars 31-03-14 31-03-13
a) Service Tax demand disputed, contested in appeal 1,580.12 1,598.24
b) Sales Tax demand disputed, contested in appeal 39.84 39.84
c) Customs Duty disputed 115.49 115.49
d) Guarantee given to Banks and Financial
Institutions on behalf of -
i) A subsidiary company 9,279.00 5,242.00
- Loans/ LC/ BG outstanding at the year end 7,507.41 3,539.25
ii) An Associate Company 2,500.00 2,500.00
- Loans outstanding at the year end 478.33 1,298.33
iii) Others 3,210.00 250.00
e) Claims against the Company not
acknowledged as debts 101.37 101.37
3 EMPLOYEE BENEFITS
As required by Accounting Standard-15 "Employee Benefits" the
disclosures are as under:
Defined Contribution Plans:
The Company offers its employees defined contribution plans in the form
of Provident Fund (PF) and Employees'' Pension Scheme (EPS) with the
Government and certain state plans such as Employees'' State Insurance
(ESI). PF and EPS covers substantially all regular employees and the
ESI covers eligible workers. Contributions are made to the Government''s
funds. While both the employees and the Company pay predetermined
contributions into the PF and the ESI Scheme, contributions into the
EPS is made only by the Company. The contributions are normally based
on a certain portion of the employee''s salary.
During the year, the Company has recognised the following amounts in
the Accounts:
Defined Benefit Plans
Leave Encashment:
The Company employees are entitled for compensated absences which are
allowed to be accumulated and encashed as per the
Company rules.
The Liability of compensated absences, which is non funded, has been
provided based on the report of independent actuary using the
"Projected Unit Credit Method" in respect of past services. Accordingly
H 226.54 Lacs (Pr.Yr. H 246.03 Lacs) being the liability as at the year
end for compensated absences have been provided in the accounts.
Gratuity:
The Employees'' Gratuity Fund scheme is a defined benefits plan. The
present value of obligation is determined based on the actuarial
valuation, using the "Projected Unit Credit Method", which recognises
each period of services as giving rise to additional unit of employee
benefits entitlement and measures each unit separately to build up the
final obligation.
The Company makes contributions to the Employees'' Group Gratuity-cum
Life Assurance (Cash Accumulation) Scheme of the LIC, a funded defined
benefit plan for employees. The scheme provides for payment to
employees as under:
i) On normal retirement/ early retirement/ withdrawal/ resignation:
As per the provisions of The Payment of Gratuity Act, 1972 with vesting
period of 5 years of service.
ii) On the death in service:
As per the provisions of The Payment of Gratuity Act, 1972 without any
vesting period.
Disclosures for defined benefit plans i.e. Gratuity (Funded Plan) based
on actuarial reports as on 31 March 2014:
The estimate of future increase in compensation levels considered in
the actuarial valuation takes into account inflation, seniority,
promotion and other relevant factors such as supply and demand in the
employment market.
4 DISCLOSURE FOR OPERATING LEASES UNDER ACCOUNTING STANDARD-19
"LEASES"
The Company has taken various residential/ office premises (including
furniture and fittings, therein as applicable), under operating lease
or leave and license agreements. These are generally cancellable under
leave and license arrangements and are renewable by mutual consent on
mutually agreeable terms. The company has given refundable interest
free security deposits in accordance with the agreed terms. The lease
payments of H 987.43 Lacs (Pr.Yr. H 755.55 Lacs) are recognised in the
Statement of Profit and Loss.
The future lease payments and payment profile of non cancellable
operating leases are as under.
5 In terms of the requirements of the Accounting Standard-28 on
"Impairment of Assets" issued by the Institute of Chartered Accountants
of India, the amount recoverable against Fixed Assets has been
estimated for the period by the management based on present value of
estimated future cash flows expected to arise from the continuing use
of such assets. The recoverable amount so assessed was found to be
adequate to cover the carrying amount of the assets, therefore no
provision for impairment in value thereof has been considered
necessary, by the management.
6 SEGMENT REPORTING
I. Business Segments:
Business segments have been identified in line with Accounting Standard
17 - "Segment Reporting".
The Company''s businesses are classified into following three primary
business segments:
a) Project
b) Overhauling & Maintenance (O & M)
c) Project Supply
Project Segment: This segment is engaged in the business of
Fabrication, Erection and Commissioning of Boilers (Power Plants) ESP,
Rotating Machineries, Sugar plants, Transmission and Distribution and
EPC Contract and Balance of Plant (BOP).
O & M Segment: This segment is engaged in the business of Repair and
Maintenance, Overhauling and Renovations of Boilers and auxiliaries,
Ash Handling Systems etc.
Project Supply Segment: Supply of Projects related Steel and other
materials at various Sites.
During the year Segment Reporting has been reconstituted in line with
the revised reporting norms of the Company. Consequently, segment
figures for the previous year have been regrouped.
II. Geographical Segments
Since company operates only in India, there are no geographical
segments as defined in AS 17.
7 NOTE ON HEDGE AND UNHEDGED FOREIGN CURRENCY ASSETS AND LIABILITIES
During the year, the Company has entered into forward exchange
contract, being derivative instruments for hedgeing purposes and not
intended for trading or speculation purpose, to establish the amount of
currency in indian rupees required at the settlement date of certain
payables. There are no Forward Exchange Contracts outstanding as at the
year end (Pr.Yr. NIL). The year end foreign currency exposures that
have not been hedged by derivative instrument or otherwise are as
below.
8 RELATED PARTY DISCLOSURE WITH WHOM TRANSACTIONS HAVE TAKEN PLACE
DURING THE YEAR AS REQUIRED BY ACCOUNTING STANDARD - 18 ARE GIVEN
BELOW:
Category I : Subsidiaries :
SEAM Industries Limited
Sunilhitech India Infra Private Limited (Formerly Known as Ecologica
Road Construction Private Limited)
Sunilhitech Solar (Dhule) Private Limited
Sunil Hitech Energy Private Limited
SHEL Investments Consultancy Private Limited
Category II : Associates :
Gangakhed Sugar & Energy Limited
V. K. Realtors (Partnership Firm)
Category III : Joint Venture : PBSPL - SHEL - JV
Category IV : Directors, Key Management Personnel and their Relatives:
Mr. Ratnakar Manikrao Gutte
Mrs. Sudhamati Ratnakar Gutte
Mr. Sunil Ratnakar Gutte
Mr. Vijay Ratnakar Gutte
Mr. Mohanan Narayanan Mattathil
Mr. Venkataramana Condoor (w.e.f. 01 June 2013)
Mrs. Swati Rajesh Phad
Category V : Enterprise over which persons covered under Category
IV above are able to exercise significant control :
Gutte Infra Private Limited
VRG Digital Corporation Private Limited
RSV & Associates
Kolhapur Green Energy Private Limited
Notes:
i) Above Loans and Advances are repayable on demand.
ii) Loans and Advances to employees/ customers and investments by such
employees/ customers in the shares of the company if any, are excluded
from the above disclosure.
C. There is no investment by loanee in the shares of Parent Company/
Subsidiary Company.
9 The company has entered into a Joint Venture with Phenix Building
Solutions Private Limited named as "PBSPL - SHEL - JV", a jointly
controlled entity incorporated in India where in the company holds 49%
interest.
Details of Company''s interest in the aforesaid joint venture as per the
requirement of AS-27 on Financial Reporting of Interest in Joint
Venture is as under :
10 Disclosure of Trade payables to Micro, Small and Medium Enterprises
under Current Liabilities is based on the information available with
the Company regarding the Status of the suppliers as defined under the
"Micro, Small and Medium Enterprises Development Act, 2006" and relied
upon by the Auditors. Amount outstanding (not overdue) as on 31 March
2014 to Micro, Small and Medium Enterprises on account of principal
amount aggregate to H 54.45 Lacs (Pr.Yr. Rs 7.90 Lacs) and interest
payable thereon rs Nil (Pr.Yr. Rs Nil) and interest paid during the year
rs. Nil (Pr.Yr. rs Nil).
11 Balance of some of the Trade Receivables and Trade Payables are
subject to confirmation/ reconciliation and adjustments, if any.
12 Previous year''s figures are regrouped and recasted wherever
required.
Mar 31, 2013
1 GENERAL INFORMATION
Sunil Hitech Engineers Limited ("the Company") is a public company
domiciled in India and incorporated under the provisions of the
Companies Act, 1956. Its shares are listed on two stock exchanges in
India. The Company is engaged in the business of Engineering,
Procurement, Construction-(EPC), Fabrication, Erection, Overhauling,
Maintenance, Trading and other related activities.
2 EMPLOYEE BENEFITS
As required by Accounting Standard-15 "Employee Benefits" the
disclosures are as under:
Defined Contribution Plans:
The Company offers its employees defined contribution plans in the form
of Provident Fund (PF) and Employees Pension Scheme (EPS) with the
government and certain state plans such as Employees'' State Insurance
(ESI). PF and EPS cover substantially all regular employees and the ESI
covers eligible workers. Contributions are made to the Government''s
funds. While both the employees and the Company pay predetermined
contributions into the PF and the ESI Scheme, contributions into the
EPS is made only by the Company. The contributions are normally based
on a certain portion of the employee''s salary.
Defined Benefit Plans Leave Encashment:
The Company''s employees are entitled for compensated absences which are
allowed to be accumulated and encashed as per the Company rules
The Liability of compensated absences has been provided based on the
report of independent actuary, using the "Projected Accrued Benefit
Method", which is same as the "Projected Unit Credit Method" in respect
of past services. Accordingly Rs. 246.03 Lacs (Pr.Yr. Rs. 251.17 Lacs)
being the liability as at the year end for compensated absences have
been provided in the accounts
Gratuity:
The Employees'' Gratuity Fund scheme is a defined benefits plan. The
present value of obligation is determined based on the actuarial
valuation, using the Projected Unit Credit Method, which recognises
each period of services as giving rise to additional unit of employee
benefits entitlement and measures each unit separately to build up the
final obligation
3 DISCLOSURE FOR OPERATING LEASES UNDER ACCOUNTING STANDARD-19
"LEASES"
The Company has taken various residential/office premises (including
furniture and fittings, therein as applicable), under operating lease
or leave and license agreements. These are generally cancellable and
ranges from 5 months to 15 years under eave and license, or longer for
other leases and are renewable by mutual consent on mutually agreeable
terms. The company has given refundable interest free security deposits
in accordance with the agreed terms. The lease payments of Rs. 755.55
Lacs (Pr.Yr. Rs. 656.25 Lacs) are recognised in the Statement of Profit
and Loss.
4 In terms of the requirements of the Accounting Standard-28 on
"Impairment of Assets" issued by the Institute of Chartered Accountants
of India, the amount recoverable against Fixed Assets has been
estimated for the period by the management based on present value of
estimated future cash flows expected to arise from the continuing use
of such assets. The recoverable amount so assessed was found to be
adequate to cover the carrying amount of the assets, therefore no
provision for impairment in value thereof has been considered
necessary, by the management.
5 SEGMENT REPORTING
I. Business Segments:
Business segments have been identified in line with Accounting
Standards on Segment Reporting "AS 17".
The Company''s businesses are classified into following three primary
business segments
a) Project
b) Overhauling & Maintenance (O & M)
c) Supply
Project Segment: This segment is engaged in the business of
Fabrication, Erection and Commissioning of Boilers (Power Plants) ESP,
Rotating Machineries, Sugar plants, Transmission and Distribution and
EPC Contract and Balance of Plant ( BOP).
0 & M Segment: This segment is engaged in the business of Repair and
Maintenance, Overhauling and Renovations of Boilers and auxiliaries,
Ash Handling Systems etc.
Supply Segment: Supply of Electrodes, Boiler Spare Parts, Coal, Steel
and other materials at various Thermal Power Plants.
During the year Segment Reporting has been reconstituted in line with
the revised reporting norms of the Company. Consequently, segment
figures for the previous year have been regrouped
6 NOTE ON HEDGE AND UNHEDGED FOREIGN CURRENCY ASSETS AND LIABILITIES
During the year, the Company has not entered into any forward exchange
contract, being derivative instruments for hedge or trading or
speculation purpose. No Forward Exchange Contracts are outstanding as
at the year end. The year end foreign currency exposures that have not
been hedged by derivative instrument or otherwise are as below.
7 The company has entered into a Joint Venture with Phenix Building
Solutions Private Limited named as "PBSPL - SHEL - JV", a jointly
controlled entity where in the company holds 49% interest.
The company has not made any capital contribution in the said Joint
Venture. The accounts of the JV are under preparation and therefore
proportionate share in the profits or losses are not incorporated in
the Financial statements
8 Disclosure of Trade payables to Micro, Small and Medium Enterprises
under Current Liabilities is based on the information available with
the Company regarding the Status of the suppliers as defined under the
"Micro, Small and Medium Enterprises Development Act, 2006" and relied
upon by the Auditors. Amount outstanding (not overdue) as on 31 March
2013 to Micro, Small and Medium Enterprises on account of principal
amount aggregate to Rs. 7.90 Lacs (Pr.Yr. Rs. 28.32 Lacs) and interest
payable thereon Rs. Nil (Pr.Yr. Rs. Nil) and interest paid during the year
Rs. Nil (Pr.Yr. Rs. Nil).
9 Balance of some of the Trade Receivables and Trade Payables are
subject to confirmation/reconciliation and adjustments, if any.
10 Due to natural calamity occurred at SECHI Site, the Company had
incurred loss of Rs. 147.50 Lacs in FY 2009-10 and same had been provided
as extraordinary loss in the books of accounts for the year ended 31
March 2010. The site and the assets thereon were sufficiently insured
and claim of Rs. 50 Lacs received in the FY 2010-11 and Rs. 93.52 Lacs
received in the FY 2011-12 had been accounted as an extraordinary
income in the respective year.
11 Previous year''s figures are regrouped and recasted wherever required
Mar 31, 2012
1 GENERAL INFORMATION:
Sunil Hitech Engineers Limited ("the Company") is a public company
domiciled in India and incorporated under the provisions of the
Companies Act, 1956. Its shares are listed on two stock exchanges in
India. The Company is engaged in the business of Engineering,
Procurement, Construction-(EPC), Fabrication, Erection, Overhauling,
Maintenance, Trading and other related activities.
2.1 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 holder of equity shares is entitled to one vote
per share. The Company declares and pays dividends in Indian rupees.
The dividend proposed by the Board of Directors is subject to the
approval of the shareholders in the ensuing Annual General Meeting.
During the year ended 31 March, 2012, the amount of per share dividend
recognised as distributions to equity shareholders is Rs 1.20
(Pr. Yr. Rs 1.20).
In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive 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.
2.2 The Company does not have any holding company.
3.1 Term loan from bank referred above to the extent of:
a) Rs 341.51 Lacs (Pr.Yr. Rs 379.15 Lacs) are secured by first
mortgage/pari-passu charge on the respective immovable properties
situated at Pune and Nagpur.
b) Rs 2,199.85 Lacs (Pr. Yr. Rs 3,728.08 Lacs) are secured by first
mortgage/pari-passu charge on the respective Plant and Machineries
including Hydra's at various sites.
c) Rs 163.80 Lacs (Pr. Yr. Rs 177.48 Lacs) are secured by first
mortgage/pari-passu charge on the respective Vehicles at various sites.
3.2 Term loan from financial institutions referred above to the extent
of:
a) Rs 1,717.43 Lacs (Pr. Yr. Rs 8.54 Lacs) are secured by first
mortgage/pari-passu charge on the respective Plant and Machinery
including Hydra's situated at various sites.
c) Rs 9.51 Lacs (Pr. Yr. Rs 21.96 Lacs) are secured by first
mortgage/pari-passu charge on the respective Vehicles at various sites.
4.1 Working Capital Loans are secured by hypothecation of present and
future stock of raw materials, stores and spares, book debts and other
receivables and have Second Charge on Fixed Assets of the Company and
personal guarantee of some of the Directors.
5.1 Short Term Loans from Banks are secured by Second Charge on Fixed
Assets of the Company and personal guarantee of some of the Directors.
1. CONTINGENT LIABILITIES: (Rs in Lacs)
Particulars March 31, 2012 March 31, 2011
a) Counter Guarantees given to Bank
against Guarantees given by them 39,273.84 37,484.01
b) Bank Letter of Credit outstanding
at the year end 1,063.64 3,746.66
c) Service Tax demand disputed, contested in appeal 864.85 181.18
d) Corporate Guarantee given on
behalf of
i) SEAM Industries Limited, a
subsidiary company 5,242.00 3,842.00
Loans/LC/BG outstanding at the year
end 4,467.52 2,596.54
ii) Others - 5,000.00 Loans outstanding
at the year end - 4,999.75
e) Estimated Amount of Contracts
remaining to be executed on capital
commitments and other commitments net
of advances. - 619.17
f) Claims against the Company not
acknowledged as debts 11.53 11.53
The Company has paid dividend in respect of share held by Non-Resident
Shareholders, on repatriation basis. This inter-alia includes portfolio
investment and direct investment, where the amount is also credited to
Non-Resident External A/c. The exact amount of dividend remitted in
foreign currency cannot be ascertained.
2. EMPLOYEE BENEFITS:
As required by Accounting Standard - 1 5 "Employee Benefits" the
disclosures are as under:
Defined Contribution Plans:
The Company offers its employees defined contribution plans in the form
of Provident Fund (PF) and Employees' Pension Scheme (EPS) with the
government and certain state plans such as Employees' State Insurance
(ESI). PF and EPS cover substantially all regular employees and the ESI
covers eligible workers. Contributions are made to the Government's
funds. While both the employees and the Company pay predetermined
contributions into the PF and the ESI Scheme, contributions into the
EPS is made only by the Company. The contributions are normally based
on a certain portion of the employee's salary.
Defined Benefit Plans:
Leave Encashment:
The Company's employees are entitled for compensated absences which are
allowed to be accumulated and encashed as per the Company
The liability of compensated absences has been provided based on report
of independent actuary, using the "Projected Accrued Benefit Method",
which is same as the "Projected Unit Credit Method" in respect of past
services. Accordingly Rs 251.17 Lacs (Pr.Yr. Rs 170.54 Lacs) being the
liability as at the year end for compensated absences have been
provided in the accounts.
Gratuity:
The Employees' Gratuity Fund Scheme is a defined benefits plan. The
present value of obligation is determined based on actuarial valuation,
using the Projected Unit Credit Method, which recognises each period of
services as giving rise to additional unit of employee benefits
entitlement and measures each unit separately to build up the final
obligation.
The Company makes annual contributions to the Employees' Group
Gratuity-cum Life Assurance (Cash Accumulation) Scheme of the LIC, a
funded defined benefit plan for employees. The scheme provides for
payment to employees as under:
i) On normal retirement / early retirement / withdrawal / resignation:
As per the provisions of Payments of Gratuity Act, 1972 with vesting
period of 5 years of service.
ii) On the death in service:
As per the provisions of Payment of Gratuity Act, 1972 without any
vesting period.
3. DISCLOSURE FOR OPERATING LEASES UNDER ACCOUNTING STANDARD-19
"LEASES":
The Company has taken various residential /office premises (including
furniture and fittings, therein as applicable), under operating lease
or leave and license agreements. These are generally cancellable and
ranges from 5 months to 1 5 years under leave and license, or longer
for other leases and are renewable by mutual consent on mutually
agreeable terms. The Company has given refundable interest free
security deposits in accordance with the agreed terms. The lease
payments of Rs 656.25 Lacs (Pr. Yr. Rs 271.50 Lacs) are recognised
in the Statement of Profit and Loss.
4. In terms of the requirements of the Accounting Standard-28 on
"Impairment of Assets" issued by the Institute of Chartered Accountants
of India, the amount recoverable against Fixed Assets has been
estimated for the period by the management based on present value of
estimated future cash flows expected to arise from the continuing use
of such assets. The recoverable amount so assessed was found to be
adequate to cover the carrying amount of the assets, therefore no
provision for impairment in value thereof has been considered
necessary, by the management.
5. SEGMENT REPORTING:
I. Business Segments:
Business segments have been identified in line with Accounting
Standard-17 "Segment Reporting"
The Company's businesses are classified into following three primary
business segments:
a) Project
b) Overhauling and Maintenance (O&M)
c) Supply
Project Segment: This segment is engaged in the business of
Fabrication, Erection and Commissioning of Boilers (Power Plants) ESP,
Rotating Machineries, Sugar plants, Transmission and Distribution and
EPC Contract and Balance of Plant (BOP).
O&M Segment: This segment is engaged in the business of Repair and
Maintenance, Overhauling, and Renovations of Boilers and auxiliaries,
Ash Handling Systems etc.
Supply Segment: Supply of Electrodes, Boiler Spare Parts, Coal, Steel
and other material at various Thermal Power Plants.
6. NOTE ON HEDGE AND UNHEDGED FOREIGN CURRENCY ASSETS AND
LIABILITIES:
The Company has entered into forward exchange contract, being
derivative instruments for hedge purpose and not intended for trading
or speculation purposes, to establish the amount of currency in Indian
Rupees required or available at the settlement date of certain payables
and receivables. Forward Exchange Contracts to buy foreign currency Nil
(Pr. Yr. USD 28.95 Lacs) are outstanding as at the year end. The year
end foreign currency exposures that have not been hedged by derivative
instrument or otherwise are as below.
7. DISCLOSURE REQUIRED BY CLAUSE 32 OF THE LISTING AGREEMENT (AS
CERTIFIED BY THE MANAGEMENT):
A. Interest-free loans and advances in the nature of loans : Nil
Notes:
i) Above Loans and Advances are repayable on demand.
ii) Loans and Advances to employees / customers and investments by such
employees / customers in the shares of the Company if any are excluded
from the above disclosure.
8. Disclosure of Sundry Creditors under Current Liabilities is based
on the information available with the Company regarding the status of
the suppliers as defined under the "Micro, Small and Medium Enterprises
Development Act, 2006" and relied upon by the Auditors. Amount
outstanding (not overdue) as on 31 March 2012 to Micro, Small and
Medium Enterprises on account of principle amount aggregate to Rs 28.32
Lacs (Pr. Yr. Rs 78.12 Lacs) and interest payable thereon Rs Nil (Pr.
Yr. Rs Nil) and interest paid during the year Rs Nil (Pr. Yr. Rs Nil).
9. Unamortised issue expenses amounting to Rs 66.91 Lacs had been
charged to the revenue in the previous year ended on 31 March 2011.
10. Balances of some of the Trade Receivables and Trade Payables are
subject to confirmation / reconciliation and adjustments, if any.
11. Due to natural calamity occurred at SECHI Site, the Company had
incurred loss of Rs 147.50 Lacs in FY 2009-10 and same had been provided
as extraordinary loss in the books of accounts for the year ended 31
March 2010. The site and the assets thereon were sufficiently insured
and claim of Rs 93.52 Lacs received in current year (Pr. Yr. Rs 50.00
Lacs) has been accounted as extraordinary income.
Mar 31, 2011
1. Contingent Liabilities: (Rs. in Lacs)
Particulars 31.03.2011 31.03.2010
a) Counter Guarantees given to bank
against guarantees given by them 37,484.01 27,567.62
b) Bank Letter of Credit outstanding
at the year end 3,746.66 1,016.75
c) Sales Tax demand disputed,
contested in appeal Nil 374.31
Amount paid there against and
shown as Advances recoverable
d) Service Tax demand disputed,
contested in appeal 181.18 181.18
Amount paid there against and shown as
Advances Recoverable
e) Corporate Guarantee given on behalf of :-
i) SEAM Industries Limited, a
subsidiary company 3,842.00 2,492.00
Loans/ LC/ BG outstanding at the year end 2,596.54 1,071.69
ii) Others 5,000.00 5,000.00
Loans outstanding at the year end 4,999.75 5,124.01
f) Claims against the Company not
acknowledge as debts 11.53 Nil
2. Estimated amount of contracts remaining to be executed on capital
account Rs. 619.17 Lacs (Rs. 249.45 Lacs), net of advances of Rs. Nil
(Rs. 2.77 Lacs).
3. Provision for current tax includes provision for wealth tax Rs.
5.57 Lacs (Rs. 5.20 Lacs)
4. Unamortised issue expenses at the beginning of the year amounting
to Rs. 66.91 Lacs has been charged to the revenue.
5. Balances of some of the Sundry Debtors and Sundry Creditors are
subject to confirmation / reconciliation and adjustments, if any.
6. Employee Benefits:
As required by Accounting Standards-15 'Employee Benefits' the
disclosures are as under:
Defined Contribution Plans:
The Company offers its employees defined contribution plans in the form
of Provident Fund (PF) and Employees' Pension Scheme (EPS) with the
government and certain state plans such as Employees' State Insurance
(ESI). PF and EPS cover substantially all regular employees and the ESI
covers eligible workers. Contributions are made to the Government's
funds. While both the employees and the Company pay predetermined
contributions into the PF and the ESI Scheme, contributions into the
EPS is made only by the Company. The contributions are normally based
on a certain portion of the employee's salary.
Defined Benefit Plans: Leave Encashment:
The Company's employees are entitled for compensated absences which are
allowed to be accumulated and encashed as per the Company rules.
Upto previous year ended on 31st March 2010, liability of compensated
absences was provided as per management's estimate. From this year the
same is being provided based on report of independent actuary using the
Projected Accrued Benefit Method which is same as the Projected Unit
Credit Method in respect of past services. Accordingly, incremental
liability for compensated absences upto last year as per actuarial
valuation amounting to Rs. 105.14 Lacs and also liability for the year
amounting to Rs. 49.61 Lacs have been charged to the revenue.
Gratuity:
The employees' gratuity fund scheme is a defined benefits plan. The
present value of obligation is determined based on actuarial valuation
using the Projected Unit Credit Method, which recognizes each period of
services as giving rise to additional unit of employee benefits
entitlement and measures each unit separately to build up the final
obligation.
The Company makes annual contributions to the Employees' Group
Gratuity-cum Life Assurance (Cash Accumulation) Scheme of the LIC, a
funded defined benefit plan for employees. The scheme provides for
payment to employees as under:
i) On normal retirement / early retirement / withdrawal / resignation:
As per the provisions of Payments of Gratuity Act, 1972 with vesting
period of 5 years of service.
ii) On the death in service:
As per the provisions of Payment of Gratuity Act, 1972 without any
vesting period.
7. Disclosure of Sundry Creditors under Current Liabilities is based
on the information available with the Company regarding the status of
the suppliers as defined under the "Micro, Small and Medium Enterprises
Development Act, 2006" and relied upon by the Auditors. Amount
outstanding (not overdue) as on 31st March, 2011 to Micro, Small and
Medium Enterprises on account of principal amount aggregate to Rs.
78.12 Lacs (Rs. 91.24 Lacs) and interest payable thereon Rs. Nil (Rs.
Nil) and interest paid during the year Rs. Nil (Rs. Nil).
8. Due to natural calamity occurred at SECHI Site, the Company has
incurred loss of Rs. 147.50 Lacs in FY 09-10 and same has been provided
as extraordinary loss in the books of accounts for the period ended
31st March, 2010, The site and the assets thereon were sufficiently
insured and claim of Rs. 50 Lacs received in current year has been
accounted as extraordinary income.
9. Disclosure for operating leases under Accounting Standard
19-"Accounting for Leases":
The Company has taken various residential /office premises (including
furniture and fittings, therein as applicable), under operating lease
or leave and license agreements. These are generally cancellable and
ranges from 5 months to 15 years under leave and license, or longer for
other leases and are renewable by mutual consent on mutually agreeable
terms. The company has given refundable interest free security deposits
in accordance with the agreed terms. The lease payments of Rs. 271.50
Lacs (Rs. 182.73 Lacs) are recognised in the Profit and Loss Account
under "Rent" under Schedule-19
10. Disclosure required by clause 32 of the listing agreement ( as
certified by the management) :
A. Interest-free loans and advances in the nature of loans to: Nil
11. Related Party Disclosure for the year as required by Accounting
Standard 18 are given below: Category I : Subsidiary Company
SEAM Industries Ltd
Sunil Hitech Energy Pvt. Ltd
SHEL Investments Consultancy Pvt. Ltd
Category II: Associate Company:
Gangakhed Sugar & Energy Ltd
Category III: Directors, Key Management Personnel and their Relatives:
Mr. R.M. Gutte
Mrs. S. R. Gutte
Mr. Sunil R. Gutte
Mr. Vijay R. Gutte
Mr. M. N. Mohanan
Mr. S. K. K. Ramaiah
Relatives of Key Management Personnel
Relative of Director: Mrs. Swati Phad
Category IV: Enterprise over which persons covered under Category III
above are able to exercise significant control:
Trimurti Towers Pvt. Ltd
Sadoday Laxmi Infrastructure Pvt. Ltd
Shanti Laxmi Contractors Pvt. Ltd
Purple Haze Motion Pictures Pvt. Ltd
12. In terms of the requirements of the Accounting standard-28 on
"Impairment of Assets" issued by the Institute of Chartered Accountants
of India, the amount recoverable against Fixed Assets has been
estimated for the period by the management based on present value of
estimated future cash flows expected to arise from the continuing use
of such assets. The recoverable amount so assessed was found to be
adequate to cover the carrying amount of the assets, therefore no
provision for impairment in value thereof has been considered
necessary, by the management.
13. Segment Reporting:
a. Business Segments:
Business segments have been identified in line with Accounting
Standards on Segment Reporting "AS 17". The Company's businesses are
classified into following three primary business segments.
a) Project
b) Overhauling & Maintenance (O & M)
c) Supply
Project Segment: This segment is engaged in the business of
fabrication, Erection & commissioning of Boilers (Power Plant) ESP,
Rotating Machineries, Sugar Plant, Transmission & Distribution and EPC
contract and Balance of Plant (BOP).
O & M Segment: This segment is engaged in the business of Repair &
Maintenance, Overhauling, and Renovations of Boilers and auxiliaries,
Ash Handling Systems etc.
Supply Segment: Supply of Electrodes, Boiler Spare Parts, Coal, Steel
and other material at various Thermal Power Plants.
14. Figures in brackets indicate previous year's figures.
15. Previous year's figures have been re-grouped / reclassified /
rearranged wherever necessary to make them comparable to those for the
current year.
Mar 31, 2010
1. Contingent liabilities not provided for:
i) In respect of Excise & service tax matters for which the company has
preferred appeals with appropriate authorities- Rs. Nil (P.Y. Rs.
110.03 Lakhs).
ii) In respect of service tax, sales tax matters for which the company
has not acknowledged as debts - 394.97 Lakhs (P.Y. Rs. 337.96 Lakhs).
iii) In respect of Letter of Credits with banks- Rs. 1016.75 Lakhs (P.Y
Rs. 5674.00 Lakhs)
iv) In respect of counter guarantees given to bank against guarantees
given by bank Rs. 27567.82 Lakhs (P.Y. 15571.00 Lakhs)
v) Corporate Guarantee given on behalf of
a) Subsidiary Company (Seam Industries Private Limited) - Rs. 2492.00
Lakhs (P.Y. Nil)
b) Others - Rs. 5000.00 Lakhs (P.Y. Nil)
vi) Security against loans taken by others
a)Seam Industries Private Limited a subsidiary Company has obtained a
term loan from Oriental Bank of Commerce amounting to Rs. 742.00 Lakhs
which is secured by first charge of equitable mortgage of factory land
and building and hypothecation of plant and machinery of the said
company.
Our Company has given a collateral security of an equitable mortgage of
non agricultural land situated at survey no. 135 & 136 of Mouza
-Kandri, & survey no. 166, 168 & 174 of Mouza - Hiwara (BEDE), Dist.
Nagpur of the State of Maharashtra whose value is determined by the
bank for this purpose is Rs. 111.00 Lakhs
The Company has obtained Counter Corporate Guarantee from Seam
Industries Private Limited for the said collateral security given to
the extent of Rs.111.00 Lakhs to Oriental Bank of Commerce
b)Debentures issued to Tata Capital Ltd by Gangakhed Sugar & Energy
Ltd. are secured by certain immovable properties of the company
situated at CBD Belapur, New Mumbai in the State of Maharashtra &
movable fixed assets like Crawler, Other Cranes etc. of the Company.
c) Shares of Gangakhed Sugar & Energy Ltd. amounting to Rs.1950 lakhs
is pledged with Uco Bank against Term Loan of Rs. 304.31 Crores
sanctioned to Gangakhed Sugar & Energy Ltd.
2. Certain disputed cases relating to Service tax amounting to Rs.
160.52 Lakhs have neither been considered as contingent liabilities nor
acknowledged as claims, based on legal opinions obtained from Tax
Advisor/internal assessment. The Company is of the view that the
possibility of the demands materializing is remote.
3. Capital Commitments:
Estimated amount of Contracts remaining to be executed on Capital
Account (Net of Advances) Rs. 249.45 Lakhs (P.Y. 1500.00 Lakhs)
4. Additional Information
i) Company has paid capital advances of Rs. 94 Lakhs to Global
Realities in FY 2007-08. Till the date, title deeds are not executed in
the name of company.
ii) Capital advances includes an amount of Rs 725.79 Lacs paid to Gokul
Construction for which Agreement for Sale was executed on 04th Jan,
2008 and on receipt of possession letter dated 30th May 2009, the
possession has been taken by the company. However Title Deed is
expected to be registered in the name of company in forthcoming
Financial Year.
iii) Transfer of Rights in Coal Mine Transactions to Subsidiary
a. The company has been selected as a highest bidder for mine in a JV
with Maharashtra State Mining Corporation. The mine is located at Jamni
Adkoli, Wani (near Wardha), Maharashtra.
Having been selected as a highest bidder, company was asked to deposit
a sum of Rs 18.25 crores and same has been deposited on 28tth April,
2008 and 17th August, 2009. During the year Company has obtained LOI
from Maharashtra Govt. to initiate process for forming a JV company.
During the period under review company has transferred its rights in
JV Company at Book Value Rs.18.65 Crores to its Subsidiary company
Sunil Hitech Energy Ltd against equity shares in that company as per
provisions in the tender. On 2nd March Company has diluted 37.95% of
its shareholding in Sunil Hitech Energy Pvt. Ltd to its another
subsidiary SHEL Investments Consultancy Pvt. Ltd. at a premium of
Rs. 6.85 per share over the acquisition cost.
iv) Other Income includes an amount recovered as Handling Charges of
Rs. 430.83 Lakhs against materials and machinery provided to
contractors at site.
v) Extra-ordinary Loss
Due to natural calamity occurred at SECHI Site, the Company has
incurred loss of Rs.147.50 Lakhs and same has been provided as
extraordinary loss in the books of accounts. The site and the assets
thereon were sufficiently insured and the management is confident to
recover the amount in respect of the said loss in near future and the
amount received would be accounted as extraordinary income in the year
of receipt.
vi) Balance confirmation letters
The Balance confirmation letters have been sent to the debtors,
creditors but replies from debtors are awaited, as response is
inadequate therefore accounts of certain debtors are subject to
confirmation/ reconciliation, if any. The company does not expect any
material differences affecting the financial statements due to this.
vii) As per management estimate, the company has provided for Rs.25
Lakhs against Leave Encashment payable to the employees.
viii)The deductions made against the certified work orders are not
available in writing; henceforth accounted for on the basis of
certified measurement books available with the customers and the same
are subject to the final reconciliation of accounts with customers.
ix) Expenses include Prior period expenses of Rs. 113.09 Lakhs.
x) During the period under review company has paid Income Tax of Rs.
1214.97 Lakhs against action taken U/s 132 of the Income tax Act, 1961
and same has been provided in the books of company as Income Tax for
prior period. The exact determination of the quantum is subject to
completion of assessment.
xi) VAT liability has been adjusted against set-off receivable/ vat
credit available in books of accounts. As there is deviation between
amounts shown in VAT returns for other than Maharashtra state and as
per books of accounts; the exact determination of the Vat Receivable
amount as shown in the books of accounts is subject to completion of
assessments /VAT Audit in various states.
xii) In the opinion of Board of Directors all the Current Assets, Loans
and Advances have a value on realization in the ordinary course of
business at least equal to the amount at which they are stated and that
all the known liabilities relating to the year have been provided for.
xiii)In the current year the Subsidiary Company has changed its name
from Sunil Hitech Engineers & Manufacturers Pvt. Ltd to SEAM Industries
Pvt. Ltd. The change in name has been intimated to all concerned
departments & authorities. The change has been effected from 4th of
June, 2009 & the board resolution has been passed to that effect.
5.Opening Stock & Closing Stock:
Note: Opening Stock & Closing Stock of Trading based items are nil.
6.Provision for current taxes:
a) Includes provision for Wealth Tax Rs. 5.20 Lacs (Previous Year: - Rs
4.50 Lacs)
7.Segment Information
Primary Segment Reporting: Business Segments
The Companys business segments were classified into Project, and O &
M, Supply.
Segment Composition:
Project Segment: This segment is engaged in the business of
Fabrication, Erection & Commissioning of Boilers (Power Plants),
Erection, Testing, Commissioning of ESP, Transmission & Distribution
and EPC Contract.
O & M Segment: This segment is engaged in the business of Repair &
Maintenance, Overhauling, and Renovations of Boilers and auxiliaries,
Ash Handling Systems etc.
Supply Segment: Supply of Electrodes, Boiler Spare Parts, Coal, Steel
and other material at various Thermal Power Plants.
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