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Notes to Accounts of Supreme Industries Ltd.

Jun 30, 2015

1. Terms/rights attached to Equity shares :

The company has only one class of issued Equity Shares having a par value of Rs. 2 per share. Each Shareholder is eligible for one vote per share held.

The Dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of Interim Dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

2. DISCLOSURE PURSUANT TO ACCOUNTING STANDARD - 15 "EMPLOYEE BENEFITS"

i) Gratuity:

In accordance with the applicable laws, the Company provides for gratuity, a defined benefit retirement plan ("The Gratuity Plan") covering eligible employees. The Gratuity Plan provides for a lump sum payment to vested employees on retirement (subject to completion of five years of continuous employment), death, incapacitation or termination of employment that are based on last drawn salary and tenure of employment. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation on the reporting date and the Company makes annual contribution to the gratuity fund administered by Life Insurance Corporation of India under Group Gratuity Scheme.

The following table set out the funded status and amount recognised in the Company's financial statements as at 31st March, 2015 for the Gratuity Plan:

ii) Compensated Absences:

The Company permits encashment of compensated absence accumulated by their employees on retirement, separation and during the course of service. The liability in respect of the Company, for outstanding balance of leave at the balance sheet date is determined and provided on the basis of actuarial valuation as on 31st March 2015 performed by an independent actuary. The Company doesn't maintain any plan assets to fund its obligation towards compensated absences.

Rs. in Lacs

3. CONTINGENT LIABILITIES AND COMMITMENTS

2014 - 2015 2013 - 2014

CONTINGENT LIABILITIES

Bills/Cheques discounted 1140.55 1072.40

Bank Guarantees issued by Bankers 2556.00 2873.13

Claim against the company including Show-cause-cum- demand Notices in relation to Central Excise 1383.28 1019.76 and Service Tax not acknowledged as Debts Disputed Income Tax Demands 2564.96 2444.84

Disputed Sales Tax / Entry Tax Demands 699.29 1103.20

Other claims against the company not acknowledged as debts 263.20 288.72

Future obligation of exports towards imported capital goods at concessional rate of duty under EPCG Scheme. 5279.37 5352.08

COMMITMENTS

Estimated amount of contracts remaining to be executed on Capital Account and not 6072.15 931.49 provided for (net of advances)

Unexpired Letter of Credit issued by bankers 8005.86 5362.17

Notes:

a) Most of the issues of litigation pertaining to Central Excise & Service Tax are of repetitive nature & are based on interpretation of the provisions of Central Excise / Cenvat Credit Rules. Management has been opined by its counsel that many of the issues raised by revenue will not be sustainable in law as they are covered by judgment of CESTAT or High Courts which supports its contention. As such no material impact on the financials of the company is envisaged.

b) In case of Income Tax, matters pertaining to additions / disallowances, where the Company has preferred an Appeal, are repetitive in nature. Company has obtained Legal Counsel's opinion on all major items of dispute, as per which it is reasonably assured that the matters are likely to be decided in its favour and are also backed by various decisions of ITAT and /or various High Courts.

Based on internal assessment and opinion received from Tax experts, the Management is of the view that the impact of the risk associated with the pending Income tax matters,if any, in Appeal is moderate and shall not impact the Company's financials substantially.

c) Sales Tax and Entry Tax related litigation/demand primarily pertains to non- submission of required declaration forms in time due to non- receipt of the same from customers and/ or some interpretation related issues. However in most of the cases, required documents are being filed and minor impact if any, shall be given in the year of final outcome of respective matter in appeal.

d) Company is reasonably confident to fulfil its export obligation within the stipulated period of the respective EPCG licenses and does not envisage any material financial impact.

e) Other issues are either in ordinary course of business or not of substantial nature and management is reasonably confident of their positive outcome. Management shall deal with them judiciously and provide for appropriately, if any such need arises.

4. The company has capitalised interest amounting to Rs. 164.61 lacs (Previous year Rs. 632.12 lacs) on payments made towards various projects under implementation.

5. Depreciation for the year has been provided with reference to the useful life of respective assets as specified in Schedule II to the Companies Act, 2013 and reassesed by the company based on internal and external technical evaluation. The depreciation for the year is higher and consequently profit for the year is lower by Rs. 2803.85 lacs due to the change in the useful life of the assets. The company has transferred an amount of Rs. 1866.50 lacs to retained earning (net of Rs. 961.11 lacs transferred to deferred tax) representing the carrying amount of the assets whose useful life had been exhausted as on 30th June, 2014.

6. In respect of construction business determination of profit / losses and readability of the construction project involves making estimates by the company which are of technical nature, concerning the percentage of completion, cost to completion and foreseeable losses to completion. Profits from construction activity and valuation of inventory of commercial complex is based on such estimate. In the opinion of the management, the net realizable value of such inventory will not be lower than costs so included therein.

7. Forward contract premium of Rs. 95.06 lacs (Previous year Rs. 95.48 lacs) is to be recognized in subsequent accounting period in respect of forward exchange contracts entered by the company.

8. a) Company had setup a mega project at Gadegaon, Maharashtra and was entitled for Industrial Promotion subsidy as under:-

i) by way of refund of CST/ VAT for eligible period (till 31st January, 2015) under Package Scheme of Incentives, 2001 of Government of Maharashtra. A sum of Rs. 1892.59 lacs (Previous year Rs. 4170.74 lacs) accrued for the year has been included in other operating income.

ii) by way of exemption from electricity duty for eligible period (till 31st January, 2023), consequently Power and fuel cost for the year is lower by Rs. 282.22 lacs (Previous year Rs. 387.70 lacs) .

c) The company has received capital subisdy of Rs. 148.48 lacs (previous Year Nil) during the year, under package scheme of Incentives, 2007 from the State Government of Assam. The same has been reduced from the cost of the respective capital assets.

9. SEGMENT INFORMATION

The Company is engaged mainly in production of plastic products. Company has recognized construction of commercial property as a new non recurring business activity which is shown as separate reportable segment as per Accounting Standard on Segment Reporting (AS-17) issued by ICAI.

b) The geographical segmentation is not relevant as export turnover is not significant in respect to total turnover.

Names of related parties and description of relationship:

Subsidiary Company: The Supreme Industries Overseas FZE

Associates: Supreme Petrochem Ltd., Supreme Capital Management Ltd., Platinum Plastics & Industries Pvt. Ltd. Suraj Packaging Pvt. Ltd. Venkatesh Investment & Trading Co. Pvt. Ltd., Jovial Investment & Trading Co. Pvt. Ltd. and Boon Investment & Trading Co. Pvt. Ltd

Key Managerial Personnel: Mr. M P Taparia, Managing Director, Mr. S J Taparia, Executive Director & Mr. V K Taparia, Executive Director and their relatives.

10. a) The Company has taken premises under cancelable operating lease. These lease agreements are normally renewed on expiry. The rental expenditure is accounted for in statement of profit and loss of the Company in accordance with Accounting Standard on lease transactions (AS-19).

b) The company has also taken office premises under noncanceable operating lease. The total of future minimum lease payments under this lease for the period not later than one year is Rs. 424.20 lacs and for the period later than one year & not later than five years is Rs. 1237.25 lacs.

11. a) Provision for Income Tax liability has been made in the accounts based on the profit for the financial year ended 30th June 2015. Though the tax payable will be determined based on the taxable income for the period 1st April 2014 to 31st March 2015 (AY: 2015-16)

b) The Company has recognised deferred tax assets for the year aggregating to Rs. 1763.22 lacs in the Profit & Loss Account (Previous Year liability of Rs. 2609.95 lacs).

c) Corporate Tax includes provision for wealth tax Rs. 4 lacs (Previous year Rs. 4 lacs).

12. The company has decided to retain for self use one of the office unit admeasuring saleable area of 6681 square feet at its commercial premises, at Andheri,Mumbai pertaining to its Construction business division. Consequently a sum of Rs. 342.47 lacs has been converted into capital asset out of its stock in trade w.e.f. 1st May, 2015.

13. Ancillary costs incurred in the connection with the borrowing is amortised over the period of borrowing.

14. The previous year's figures have been re-grouped / re-classified wherever required to confirm to this year's classification.


Jun 30, 2014

Rs. in Lacs 1 CONTINGENT LIABILITIES AND COMMITMENTS 2013 - 2014 2012 - 2013

CONTINGENT LIABILITIES

Bills/Cheques discounted 1072.40 864.46

Bank Guarantees issued by Bankers 2873.13 1836.87

Claim against the company including Show-cause-cum- demand Notices in relation to 1019.76 1051.71 Central Excise and Service Tax not acknowledged as Debts

Disputed Income Tax Demands 2444.84 2255.48

Disputed Sales Tax / Entry Tax Demands 1103.20 552.47

Other claims against the company not acknowledged as debts 288.72 162.35

Future obligation of exports towards imported capital goods at concessional rate of duty 5352.08 6342.46 under EPCG Scheme.

COMMITMENTS

Estimated amount of contracts remaining to be executed on Capital Account and not 931.49 2200.63 provided for (net of advances)

Unexpired Letter of Credit issued by bankers 5362.17 4850.07

2. The company has capitalised interest amounting to Rs. 632.12 lacs (Previous year Rs.832.96 lacs) on payments made towards various projects under implementation.

3. a) Depreciation has been provided at the rates and in the manner provided in Schedule XIV to the Companies Act, 1956 except where the Company has reassessed the life of certain buildings, plant & machinery and accordingly revised the useful life of those assets. The Company has charged depreciation at higher rates than those specified under Schedule XIV of the Companies Act, 1956 on such assets.

b) Depreciation on incremental value due to revaluation is provided at the rates specified in Schedule XIV to the Companies Act, 1956. The additional charge of depreciation due to such revaluation is Rs. 4.39 lacs (Previous year Rs. 4.39 lacs). An equivalent amount has been transferred from Revaluation Reserve to Statement of Profit & Loss.

c) Rs. 0.06 lacs (Previous year Rs. 0.06 lacs) has been transferred from Revaluation Reserve to Leasehold Land Account being the amortisation in the value of Lease Premium due to efflux of time.

4. In respect of construction business determination of profit / losses and realisability of the construction project involves making estimates by the company which are of technical nature, concerning the percentage of completion, cost to completion and foreseeable losses to completion. Profits from construction activity and valuation of inventory of commercial complex is based on such estimate. In the opinion of the management, the net realizable value of such inventory will not be lower than costs so included therein.

5. Forward contract premium of Rs. 95.48 lacs (Previous year Rs. 345.75 lacs) is to be recognized in subsequent accounting period in respect of forward exchange contracts entered by the company.

6. a) Company had setup a mega project at Gadegaon, Maharashtra and is entitled for Industrial Promotion subsidy for eligible period under Package Scheme of Incentives, 2001 of Government of Maharashtra. A sum of Rs. 4170.74 lacs (Previous year Rs. 3574.74 lacs) accrued for the year has been included in other operating income.

7 SEGMENT INFORMATION

The Company is engaged mainly in production of plastic products. Company has recognized construction of commercial property as a new non recurring business activity which is shown as separate reportable segment as per Accounting Standard on Segment Reporting (AS-17) issued by ICAI.

8. a) The Company has taken premises under cancelable operating lease. These lease agreements are normally renewed on expiry. The rental expenditure is accounted for in statement of profit and loss of the Company in accordance with Accounting Standard on lease transactions (AS-19).

b) The company has also taken office premises under noncanceable operating lease. The total of future minimum lease payments under this lease for the period not later than one year is Rs. 422.52 lacs and for the period later than one year & not later than five years is Rs. 1654.87 lacs.

9. a) Provision for Income Tax liability has been made in the accounts based on the profit for the financial year ended 30th June 2014. Though the tax payable will be determined based on the taxable income for the period 1st April 2013 to 31st March 2014 (AY: 2014-15)

b) The Company has recognised deferred tax provision for the year aggregating to Rs. 2609.95 lacs in the Profit & Loss Account (Previous YearRs. 739.35 lacs).

c) Corporate Tax includes provision for wealth tax Rs. 4 lacs (Previous year Rs. 5 lacs).

10 An unfortune incident of fire occured at Urse unit, Maharashtra during the year, which damaged certain part of warehouse building and semi finished goods stored therein. The Company is in the process of lodging the insurance claim estimated at Rs. 110.55 lacs as per the policy. The adjustment if any will be made in the year of settlement of the claim.

11. The previous year''s figures have been re-grouped / re-classified wherever required to confirm to this year''s classification.


Jun 30, 2013

1. CONTINGENT LIABILITIES AND COMMITMENTS

2012 - 2013 2011 - 2012 CONTINGENT LIABILITIES

Bills / Cheques discounted 864.46 1407.91

Bank Guarantees issued by Bankers 1836.87 1182.60

Claim against the company including Show-cause-cum-demand 1051.71 1006.29

Notices in relation to Central Excise and Service Tax not acknowledged as Debts

Disputed Income Tax Demands 2255.48 1925.13

Disputed Sales Tax / Entry Tax Demands 552.47 581.51

Other claims against the company not acknowledged as debts 162.35 152.90

Future obligation of exports towards imported capital goods at 6342.46 6779.41 concessional rate of duty under EPCG Scheme.

COMMITMENTS

Estimated amount of contracts remaining to be executed on 2200.63 14771.68

Capital Account and not provided for (net of advances)

Unexpired Letter of Credit issued by bankers 4850.07 6344.51

2. The company has capitalised interest amounting to R 832.96 lacs (Previous year R 167.98 lacs) on payments made towards various projects under implementation.

Interest of R NIL (Previous year R 242.35 lacs) incurred during the year attributable to the property business is included in the cost of constructed property.

3. Depreciation has been provided at the rates and in the manner provided in Schedule XIV to the Companies Act, 1956 except where the Company has reassessed the life of certain buildings, plant & machinery and accordingly revised the useful life of those assets. The Company has charged depreciation at higher rates than those specified under Schedule XIV of the Companies Act, 1956 on such assets. During the year company has reassessed life of certain plant & machinery and charged depreciation at higher rates, above change have resulted in higher depreciation for the year by R 5.17 lacs (Previous year R 60.06 lacs) and correspondingly the profit for the year is lower by a similar amount.

Depreciation on incremental value due to revaluation is provided at the rates specified in Schedule XIV to the Companies Act, 1956.The additional charge of depreciation due to such revaluation is R 4.39 lacs (Previous year R 4.40 lacs). An equivalent amount has been transferred from Revaluation Reserve to Statement of Profit & Loss.

Rs. 0.06 (Previous year R 0.06 lacs) has been transferred from Revaluation Reserve to Leasehold Land Account being the amortisation in the value of Lease Premium due to efflux of time.

4. In respect of construction business determination of profit / losses and realisability of the construction project involves making estimates by the company which are of technical nature, concerning the percentage of completion, cost to completion and foreseeable losses to completion. Profits from construction activity and valuation of inventory of commercial complex are based on such estimate. In the opinion of the management, the net realizable value of such inventory will not be lower than costs so included therein.

5. Forward contract premium of R 345.75 lacs (Previous year R 270.12 lacs) is to be recognized in subsequent accounting period in respect of forward exchange contracts entered by the company.

6. Company had setup a mega project at Gadegaon, Maharashtra and is entitled for Industrial Promotion subsidy for eligible period under Package Scheme of Incentives, 2001 of Government of Maharashtra. A sum of R 3574.74 lacs (Previous year R 3121.31 lacs) accrued for the year has been included in other operating income.

Company has undertaken an expansion at Jalgaon Unit and is eligible for incentive under Package Scheme of Incentive 2007. A sum of R 85.22 lacs (Previous Year R 81.92 lacs) accrued for the year has been included in other operating income.

Company has undertaken an expansion at its Plastic Piping Division at Malanpur (MP) and is eligible for incentive under Package Scheme of Incentive State of Madhya Pradesh. A sum of R 47.43 lacs (Previous Year Nil) accrued for the year has been included in other operating income.

7. SEGMENT INFORMATION

The Company is engaged mainly in production of plastic products. Company has recognized construction of commercial property as a new non recurring business activity which is shown as separate reportable segment as per Accounting Standard on Segment Reporting (AS-17) issued by ICAI.

8. The Company had taken premises under cancelable operating lease during 2011-12. These lease agreements are normally renewed on expiry. The rental expenditure is accounted for in statement of profit and loss of the Company in accordance with Accounting Standard on lease transactions (AS-19). The company has acquired a motor car under Finance Lease for an aggregate fair value of R 16.59 lacs.

9. Provision for Income Tax liability has been made in the accounts based on the profits for the financial year ended 30th June, 2013, though the tax payable will be determined based on the taxable income for the period 1.4.2012 to 31.3.2013 (A/Y: 2013-14).

The Company has recognised deferred tax provision for the year aggregating to R 739.35 lacs in the the statement of profit of loss (Previous Year R 372.02 lacs).

Current Ta x includes provision for wealth tax R 5.00 lacs (Previous year R 4.00 lacs).

10. Commitment charges / processing fee paid / payable on Long Term Borrowings is being amortised over the average maturity of such borrowings.

11. The previous year’s figures have been re-grouped / re-c1lassified wherever required to confirm to this year’s classification.


Jun 30, 2012

Terms/rights attached to Equity shares :

The company has only one class of issued Equity Shares having a par value of Rs 2 per share. Each Shareholder is eligible for one vote per share held. The Dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of Interim Dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

NOTES :

Term Loans from banks and financial institutions are secured on first pari passu charge basis as under:

Immovable properties of the company, situated at certain locations of the company.

Movable properties of the company viz. plant, machineries & moulds, both present and future, situated at all the locations of the company.

NOTES :

Working Capital Loans from Banks mentioned as above are secured against:

First pari passu charge by way of hypothecation of stocks and Book Debts, both present and future

Second / subservient charge on all movable properties of the company viz. plant, machineries & moulds, both present and future, situated at all the locations of the company.

Second / subservient charge on all immovable properties of the company, situated at certain locations of the company.

There are no Micro, Small and Medium Enterprises as defined in the Micro, Small, Medium Enterprises Development Act, 2006, to whom the company owes dues on account of principal amount together with interest and accordingly no additional disclosures have been made.

The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the company. This has been relied upon by the Auditors.

Amount due and outstanding to be credited to the Investor Education and Protection Fund as at June 30, 2012 is NIL (Previous Year NIL), except where there are pending legal cases amounting to Rs 0.35 lacs (Previous year Rs0.35 lacs).

1 DISCLOSURE PURSUANT TO ACCOUNTING STANDARD - 15 "EMPLOYEE BENEFITS"_

The Gratuity Funds for the employees' are administered by Life Insurance Corporation of India under Group Gratuity Scheme. Liability of Gratuity has been valued by an independent actuary as on 31st March 2012 and has been provided accordingly.

2 CONTINGENT LAIBILITIES AND COMMITMENTS 2011 - 2012 2010 - 2011

CONTINGENT LIABILITIES

Bills/Cheques discounted 1407.91 742.71

Bank Guarantees issued by Bankers 1182.60 1120.74

Claim against the company including Show-cause-cum- demand Notices in relation to Central Excise and Service Tax 1006.29 963.41 not acknowledged as Debts

Disputed Income Tax Demands 1925.13 2039.64

Disputed Sales Tax / Entry Tax Demands 581.51 600.78

Other claims against the company not acknowledged as on 152.90 169.79 debts

Future obligation of exports towards imported capital 6779.41 6779.41 goods at concessional rate of duty under EPCG Scheme.

3. (a). The company has capitalised interest amounting to Rs. 167.98 lacs (Previous year Rs. 51.70 lacs) on payments made towards various projects under implementation.

(b). Interest of Rs.242.35 lacs (Previous year Rs.559.44 lacs) incurred during the year attributable to the property business is included in the cost of constructed property.

4. (a). Depreciation has been provided at the rates and in the manner provided in Schedule XIV to the Companies Act, 1956 except where the Company has reassessed the life of certain buildings, plant & machinery and accordingly revised the useful life of those assets. The Company has charged depreciation at higher rates than those specified under Schedule XIV of the Companies Act, 1956 on such assets. During the year company has reassessed life of certain plant & machinery and charged depreciation at higher rates, above change have resulted in higher depreciation for the year by Rs. 60.06 lacs (Previous year Nil) and correspondingly the profit for the year is lower by a similar amount.

(b). Depreciation on incremental value due to revaluation is provided at the rates specified in Schedule XIV to the Companies Act, 1956.The additional charge of depreciation due to such revaluation is Rs. 4.40 lacs (Previous year Rs 4.39 lacs). An equivalent amount has been transferred from Revaluation Reserve to Statement of Profit & Loss.

(c). Rs.0.06 (Previous year Rs.0.06 lacs) has been transferred from Revaluation Reserve to Leasehold Land Account being the amortisation in the value of Lease Premium due to efflux of time.

5. In respect of construction business determination of profit / losses and realisability of the construction project involves making estimates by the company which are of technical nature, concerning the percentage of completion, cost to completion and foreseeable losses to completion. Profits from construction activity and valuation of inventory of commercial complex is based on such estimate. In the opinion of the management, the net realizable value of such inventory will not be lower than costs so included therein.

6. Forward contract premium of Rs. 270.12 lacs (Previous year Rs 180.99 lacs) is to be recognized in subsequent accounting period in respect of forward exchange contracts entered by the company.

7. a. Company had setup a mega project at Gadegaon, Maharashtra and is entitled for Industrial Promotion subsidy for eligible period under Package Scheme of Incentives, 2001 of Government of Maharashtra. A sum of Rs.3121.31 lacs (Previous year Rs.2810.92 lacs) accrued for the year has been included in other operating income.

b. Company has undertaken an expansion at Jalgaon Unit and is eligible for incentive under Package Scheme of Incentive 2007. A sum of Rs. 81.92 lacs (Previous Year Nil) accrued for the year has been included in other operating income.

8. Segment Information

The Company is engaged mainly in production of plastic products. Company has recognized construction of commercial property as a new non recurring business activity which is shown as separate reportable segment as per Accounting Standard on Segment Reporting (AS-17) issued by ICAI.

The geographical segmentation is not relevant as export turnover is not significant in respect to total turnover.

Associates: Supreme Petrochem Ltd., Supreme Capital Management Ltd., Platinum Plastics & Industries Pvt. Ltd. Suraj Packaging Pvt. Ltd. Venkatesh Investment & Trading Co. Pvt. Ltd., Jovial Investment & Trading Co. Pvt. Ltd. and Boon Investment & Trading Co. Pvt. Ltd

Key Managerial Personnel: Mr. M P Taparia, Managing Director, Mr. S J Taparia, Executive Director & Mr. V K Taparia, Executive Director and their relatives.

9. (a) The Company has taken premises under cancelable operating lease. These lease agreements are normally renewed on expiry. The rental expenditure is accounted for in statement of profit and loss of the Company in accordance with Accounting Standard on lease transactions (AS-19).

(b) The company has acquired a motor car under Finance Lease for an aggregate fair value of Rs.16.59 lacs.

The total minimum lease payments (MLP) in respect thereof and the present value of the future lease payments, discounted at the interest rate implicit in the lease are:-_(Rs. in lacs)

In the previous year the Principal amount, Interest & Total MLP were NIL.

10. (a) Provision for Income Tax liability has been made in the accounts based on the profits for the financial year ended 30th June, 2012, though the tax payable will be determined based on the taxable income for the period 1.4.2011 to 31.3.2012 (A/Y: 2012-13).

(b) The Company has recognised deferred tax provision for the year aggregating to Rs.372.02 lacs in the Profit & Loss Account (Previous Year Rs 969.42 lacs).

(c) Corporate Tax includes provision for wealth tax Rs.4.00 lacs (Previous year Rs. 4.00 lacs).

11. Commitment charges / processing fee paid / payable on Borrowings is being amortised over the period of such borrowings.

12. The previous year's figures have been re-grouped / re-classified to conform to this year's classification which is as per the Revised Schedule VI. This adoption does not impact recognition and measurement principles followed for preparation of financial statements as on 30th June 2012.


Jun 30, 2010

1. Contingent Liabilities not provided for: in lacs

2009-10 2008-09

a. Bills / Cheques discounted 712.39 1515.18

b. Guarantees given by Banks 834.91 766.10

c. Claims against the Company including Show Cause-cum-Demand Notices in relation to 871.30 897.68 Central Excise and Service Tax not acknowledged as Debts

d. Disputed Income Tax Demands 1902.37 1923.32

e. Disputed Sales Tax / Entry Tax Demands 459.74 375.85

f. Other claims against the company not acknowledged as debts. 164.07 85.28

g. The Company has imported capital goods under the Export Promotion Capital Goods Scheme of the Government of India, at concessional rate of duty on an understanding to fulfil quantified exports of which remaining future obligation aggregates to I 7215.94 lacs (Previous Year I 8265.29 lacs). Non fulfillment of such future obligation, if any, entails options / rights to the Government to confiscate capital goods imported under the said license and other penalties under the above referred scheme.

2. Estimated amount of contracts remaining to be executed on Capital Account and not provided for (net of advances) I 5649.57 lacs (Previous year I 2412.26 lacs).

3. The company has capitalised interest amounting to I NIL (Previous year I 697.77 lacs) on payments made towards various projects under construction.

4. (a) Depreciation has been provided at the rates and in the manner provided in Schedule XIV to the Companies Act, 1956 except where the Company has reassessed the life of certain buildings, plant & machinery and accordingly revised the useful life of those assets. The Company has charged depreciation at higher rates than those specified under Schedule XIV of the Companies Act, 1956. During the year company has reassessed life of certain machines and charged depreciation at higher rates, above change have resulted in higher depreciation for the year by I 76.52 lacs (Previous year I 234.52 lacs) and correspondingly the profit for the year is lower by a similar amount.

(b) Depreciation on incremental value due to revaluation is provided at the rates specified in Schedule XIV to the Companies Act, 1956. The additional charge of depreciation due to such revaluation is I 4.39 lacs (Previous year I 14.98 lacs). An equivalent amount has been transferred from Revaluation Reserve to Profit & Loss Account.

(c) I 1.68 lacs (Previous year I 2.22 lacs) has been transferred from Revaluation Reserve to Leasehold Land Account being the amortisation in the value of Lease Premium due to efflux of time.

5. Pursuant to the decision taken by the Board of Directors of the Company land and building of Protective Packaging Division at Nandesari in the State of Gujarat have been put for divestment subject to necessary approvals and compliances. Accordingly Land and building of Protective Packaging Division has been treated as assets held for disposal valued at estimated net realizable value or written down values, whichever is lower. Assets held for disposal includes I 170.67 lacs pertaining to the above said division.

6. Company has converted the capital asset of building under construction amounting to I 7721.05 lacs and the land costing I 10 lacs into stock in trade as on 1st July, 2009. Interest of I 675.32 lacs incurred during the year and I 1194.79 lacs incurred in previous years attributable to the property business is included in the cost of constructed property.

7. In respect of construction business determination of profit / losses and realisability of the construction project involves making estimates by the company which are of technical nature, concerning the percentage of completion, cost to completion and foreseeable losses to completion. Profits from construction activity and valuation of inventory of commercial complex under construction is based on such estimate. In the opinion of the management, the net realizable value of such inventory will not be lower than costs so included therein.

8. Forward contract premium of I 91.03 lacs (Previous year I 165.03 lacs) is to be recognized in subsequent accounting period in respect of forward exchange contracts entered by the company.

9. Company has setup a mega project at Gadegaon, Maharashtra and is entitled for Industrial Promotion subsidy for eligible period under Package Scheme of Incentives, 2001 of Government of Maharashtra. A sum of I 488.16 lacs accrued for the year has been included in other income.

10. An unfortunate incident of fire occurred in neighbouring warehouse on 21st June, 2010 which also destroyed companys goods stored in two warehouses at Bhiwandi, Dist Thane, Maharashtra. The company has filed insurance claim of I 205.88 lacs which is under assessment by surveyors. Necessary adjustment, if any, would be accounted in the year of final settlement.

11. Company is engaged mainly in production of plastic products and as such is the only reportable segment as per Accounting Standard on Segment Reporting (AS-17). The revenues, profit, and assets employed of construction business are not significant. The geographical segmentation is not relevant as export turnover is not significant in respect to total turnover.

12. The Company has taken premises under cancelable operating lease. These lease agreements are normally renewed on expiry. The rental expenditure are accounted for in Profit and Loss Account of the Company in accordance with Accounting Standard on lease transactions (AS-19).

13. (a) Provision for Income Tax liability has been made in the accounts based on the taxable income for the period 1.4.2009 to 31.3.2010 (A.Y. 2010-11). The tax liability for the period 1.4.2010 to 30.6.2010 shall be determined on the basis of the taxable income for the year ended 31st March, 2011 (A.Y. 2011-12).

(b) The Company has recognised deferred tax provision for the year aggregating to I 556.30 lacs in the Profit & Loss Account (Previous Year I 1200 lacs).

14. Commitment charges / processing fee paid / payable on Borrowings is being amortised over the period of such borrowings.

15. The Company has given undertaking to IDBI Bank & ICICI Bank for non-disposal of its investments in Supreme Petrochem Ltd. (SPL) without prior consent of the respective banks as long as any part of the loan facilities sanctioned by the Bank to SPL remains outstanding.

16. The company has received memorandum (as required to be filed by the suppliers with the notified authority under the Micro, Small and or Medium Enterprises Development Act, 2006) from some suppliers claiming their status as micro small or medium enterprises. Consequently the amount and interest paid / payable to these parties is as under. The above information is complied by the company on the basis of information available, on unit-wise basis and relied upon by the auditors.

17. Disclosure pursuant to Accounting Standard 15 - "Employee Benefits"

The Gratuity Funds for the employees are administered by Life Insurance Corporation of India under Group Gratuity Scheme. Liability of Gratuity has been valued by an independent actuary as on 31st March, 2010 and has been provided accordingly.

18. Sundry Debtors, Sundry Creditors, Unsecured Loans and Advances are subject to confirmation by the respective parties.

19. In the opinion of the Board, the current assets, loans and advances are approximately of the value stated, if realised in the ordinary course of business. The provisions for all the known and determined liabilities are adequate and not in excess of the amounts reasonably required.

20. Previous years figures have been regrouped / rearranged wherever necessary including the capital work-in-progress of Andheri property converted into stock in trade during the year.

21 Additional information pursuant to the provisions of paragraphs 3, 4C & 4D of Part II of Schedule VI of the Companies Act, 1956.

 
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