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

Notes to Accounts of Supreme Petrochem Ltd.

Jun 30, 2015

NOTE 1

1] Corporate Information

Supreme Petrochem Ltd (The Company) a public limited company incorporated under the Companies Act, 1956 is engaged in the manufacture of Polystyrene (PS), Expandable Polystyrene (EPS), Speciality Polymers & Compounds and Extruded Polystyrene (XPS) with manufacturing facilities at Nagothane Dist Raigad, Maharashtra and Ammulavoyil Village, Manali New Township, Chennai, Tamil Nadu. The Company also has a captive gas power plant at Nagothane.

Note 2

The Company has only one class of shares referred to as equity shares having a par value Rs. 10/- per share. Each holder of equity shares is entiltled 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, except in the case of interim dividend. The holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts in the event of liquidation of the Company. The distribution will be in proportion to the number of equity shares held by the shareholdres.

Note 3

Rupee Term Loans amounting to Rs. Nil (Previous Year Rs. 2790.00 Lacs) from banks are secured by a first charge by way of mortgage of the Company's immovable properties including Plant and Machinery and by hypothecation of movable assets (except trade receivables) subject to prior charge in favour of Company's bankers for working capital facilities. Working capital facilities (including letters of credit) from banks are secured by hypothecation of Company's stocks and trade receivables and by second charge by way of mortgage of the Company's immovable properties including plant and machinery.

Note 4

Leave Encashment

The valuation of Leave Encashment has been done on exit as well as availment during the service. This liability forms part of other long term benefits as per the standard and does not require disclosures as mentioned in Para 132 of the standard.

Provident Fund

The provident fund contribution is made to a trust administered by the company. In terms of the guidance note issued by the Institute of Actuaries of India, the actuary has provided a valuation of provident fund liability based on assumptions listed below and determined that there is no shortfall as at 30th June,2015.

The assumptions used in determining the present value of obligation of interest rate guarantee under deterministic approach are :

Average holding period of assets 5.23 years

Guaranteed rate 8.75%

Note 5

(Rs. Lacs)

2014-2015 2013-2014

(i) Contingent liabilities

(a) Claims against the company not acknowledged as debt; (matters pending in court/ arbitration. No cash outflow is expected in future).

Disputed Excise/ Service Tax demand. 2015.59 3156.84

Disputed Sales Tax demand. - 12.13

Disputed Income Tax liability (matters under appeal) 805.03 806.73

(b) Counter guarantees given to banks against guarantees issued by the banks.

Guarantee issued for buyback of shares. - 760.00

Other bank guarantees. 250.83 218.46

(c) Other money for which the Company is contingently liable Letter of Credit opened by Bankers and outstanding at the year end. 21774.59 16878.58

Bills discounted but not matured 3149.61 2543.28

(ii) Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for; 155.78 235.05

The management has estimated the provisions for pending litigation, claims and demands (including cases relating to direct and indirect taxes) on its assessment of probability for these demands crystalising against the Company in due course. The difference between the amount demanded and provision made is disclosed as contingent liabilities.

Note 6

Company commenced buyback of its equity shares from May 2, 2014 for a period of six months i.e. upto October 31,2014. The maximum and minimum number of equity shares to be bought back, as approved by the Board are 6,000,000 and 24,10,715 respectively, at a price not exceeding Rs. 70/- per equity share. During the year the Company has bought back and extinguished Nil (336,655) equity shares.

Note 7

Effective from July 1,2014, the useful lives of fixed assets have been revised in accordance with Schedule II to the Companies Act, 2013 (the Act). Where cost of a part of the asset is significant, as considered by the management, to total cost of the asset and useful life of that part is different from the useful life of the remaining asset, useful life of that significant part has been determined separately. Further based on transitional provision provided in Note 7(b) of Schedule II to the Act, the depreciation in respect of assets / component of the asset having no useful life remaining on July 01,2014, amounting to Rs. 946.17 lacs (Net of Deferred tax of Rs. 327.45 lacs) is accounted as onetime debit to the retained earnings. Due to above, depreciation charge for the year ended June 30, 2015 is lower by Rs. 235.89 lacs.

In the opinion of the Board, the current assets and loans and advances are stated at value not less than its realizable value in the ordinary course of business. The provisions for all the known liabilities and depreciation are adequate and not in excess of the amount reasonably required.

NOTE 8

According to the information available with the Management, on the basis of intimation received from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act), the Company has amounts due to micro and small enterprises under the said Act as at March 31,2015 as follows :

Prior period adjustments include expenses of Rs. 23.43 lacs (Previous year Rs. 101.26 lacs) and income Rs. 8.01 lacs (Previous year Rs. 132.57 lacs).

NOTE 9

Previous year's figures have been regrouped, rearranged and reclassified, wherever necessary..


Jun 30, 2014

1. In the financial year 2008-2009,the company bought back and extinguished 15,37,907 equity shares which has reduced the paid-up share capital of the company from Rs. 9837.65 lacs to Rs. 9683.86 lacs.

2. In the financial year 2013-2014,the company bought back and extinguished 3,36,655 equity shares which has reduced the paid-up share capital of the company from Rs. 9683.86 lacs to Rs. 9650.20 lacs.

3. The details of Shareholders holding more then 5% Shares :

4. The Company has only one class of shares referred to as equity shares having a par value 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,except in the case of interim dividend. The holders of equity shares will be entitled to receive remaining assets of the Company,after distribution of all preferential amounts in the event of liquidation of the Company. The distribution will be in proportion to the number of equity shares held by the shareholders.

5. Rupee Term Loans amounting to Rs. 2790 Lacs (Previous Year Rs. 6487.67 Lacs) from Banks are secured by a first charge by way of mortgage of the Company''s immovable properties including Plant and Machinery and by hypothecation of movable assets (except trade receivables) subject to prior charge in favour of Company''s Bankers for working capital facilities.

Working capital facilities (including letters of credit) from banks are secured by hypothecation of Company''s stocks and trade receivables and by second charge by way of mortgage of the Company''s Immovable properties including plant and machinery.

6. Buildings include Rs. 398.45 lacs (previous year Rs. 398.45 lacs) being cost of premises in Co-operative Societies including cost of Shares of the face value of Rs. 0.04 lacs (Previous year Rs. 0.04 lacs).

7. Disposals/Adjustments include assets scrapped.

8. Revaluation of free hold land (of erstwhile SPL Polymers Ltd.) at Chennai was carried out as at June 30, 2003 and as at June 30, 2005.

9. Leave Encashment

The valuation of Leave Encashment has been done on exit as well as availment during the service. This liability forms part of other long term benefits as per the standard and does not require disclosures as mentioned in Para 132 of the standard.

10. Provident Fund

The provident fund contribution is made to a trust administered by the company. In terms of the guidance note issued by the Institute of Actuaries of India,the actuary has provided a valuation of provident fund liability based on assumptions listed below and determined that there is no shortfall as at 30th June,2014.

The assumptions used in determining the present value of obligation of interest rate guarantee under deterministic approach are :

Average holding period of assets 5.01 years

Guaranteed rate 8.75%

NOTE 11 (Rs. lacs) 2013-2014 2012-2013

(i) Contingent liabilities (a) Claims against the company not acknowledged as debt; (matters pending in court/ arbitration. No cash outflow is expected in future.) Disputed Excise/ Service Tax demand. 3156.84 2244.81 Disputed Sales Tax demand. 12.13 0.88 Disputed Income Tax liability (matters 806.73 766.32 under appeal)

(b) Counter guarantees given to banks against guarantees issued by the banks. Guarantee issued for buyback of shares. 760.00 - Other bank guarantees. 218.46 225.51

(c) Other money for which the Company is contingently liable Letter of Credit 16878.58 21055.14 opened by Bankers and outstanding at the year end. Bills discounted but not matured 2543.28 3120.99

(ii) Commitments Estimated amount of contracts remaining to be executed on capital account 235.05 62.49 and not provided for;

(b) All the Assets of the Company except the trade receivables amounting to Rs. 4101.87 lacs (Previous Year : Rs. 3436.13 lacs) are within India.

NOTE 12

Company commenced buyback of its equity shares from May 2, 2014 for a period of six months. The maximum and minimum number of equity shares to be bought back, as approved by the Board are 60,00,000 and 24,10,715 respectively, at a price not exceeding Rs. 70/- per equity share. Till June 30, 2014 the Company has bought back and extinguished 3,36,655 equity shares which has reduced the paid-up share capital of the Company from Rs. 9683.86 lacs to Rs. 9650.20 lacs as on June 30, 2014.

NOTE 13

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 liabilities and depreciation are adequate and not in excess of the amount reasonably required.

NOTE 14

In absence of any intimation received from vendors regarding the status of their registration under "The Micro, Small and Medium Enterprises Development Act, 2006'''' the Company is unable to comply with the disclosures required to be made under said Act. There are no amounts payable to any Small Scale Industrial Undertaking.

NOTE 15

a] Prior period adjustments include income of Rs. 31.31 lacs, (Previous year NIL).

NOTE 16

Previous year''s figures have been regrouped, rearranged and reclassified, wherever necessary.


Jun 30, 2013

NOTE 1 (Rs. lacs)

CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF : 2012-2013 2011-2012

i) Estimated value of contracts remaining to be executed on capital accounts 62.49 397.14 and not provided for:

ii) Letters of Credit opened by Bankers and outstanding at the year end. 21055.14 12910.33

iii) Bills discounted but not matured. 3120.99 2996.50

iv) Counter guarantees given to Banks against Banks'' guarantees to Customs/ Sales Tax. 225.51 278.71

v) Disputed Excise / Service Tax demand. 2244.81 2228.06

vi) Disputed Sales Tax demand. 0.88 0.88

vii) Disputed Income Tax liability (matters under appeal) 766.32 499.41

viii) Other Claims. 71.31

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 liabilities and depreciation are adequate and not in excess of the amount reasonably required.

NOTE 2

In absence of any intimation received from vendors regarding the status of their registration under ''The Micro, Small and Medium Enterprises Development Act, 2006" the Company is unable to comply with the disclosures required to be made under said Act. There are no amounts payable to any Small Scale Industrial Undertaking.

NOTE 3

Prior period adjustments include expenses Rs. NIL, (Previous year Rs. 8.09 lacs).

NOTE 4

Trade Receivables/ Trade payables balances are subject to confirmation.

NOTE 5

Previous year''s figures have been reworked, regrouped, rearranged and reclassified, wherever necessary.


Jun 30, 2012

1.1. In the financial year 2007-2008 in accordance with the scheme of amalgamation 8,63,720 equity shares of Rs. 10/- each were allotted to the equity shareholders of the erstwhile SPL Polymers Ltd whose names appeared in the register of members as on August 5,2008 (record Date) without payment being received in cash.The equity shares were issued and allotted in the ratio of 1:6.

1.2 In the financial year 2008-2009,The company bought back and extinguished 15,37,907 equity shares which has reduced the paid-up share capital of the company from Rs. 9837.65 Lacs to Rs. 9683.86 Lacs.

1.3. The Company has only one class of shares referred to as equity shares having a par value Rs. 10/- per share.Each holder of equity shares is entiltled 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,except in the case of interim dividend. As per the Companies Act, 1956, the holders of equity shares will be entitled to receive remaining assets of the Company,after distribution of all preferential amounts in the event of liquidation of the Company. The distribution will be in proportion to the number of equity shares held by the shareholdres.

2.1 Rupee Term Loans amounting to Rs. 12,347.67 Lacs (Previous Year Rs. 14,421.79) from Banks are secured by a first charge by way of mortgage of the Company's immovable properties including Plant and Machinery and by hypothecation of movable assets (except trade receivables) subject to prior charge in favour of Company's Bankers for working capital facilities.

Working capital facilities (including letters of credit) from banks are secured by hypothecation of Company's stocks and trade receivables and by second charge by way of mortgage of the Company's Immovable properties including plant and machinery.

A. Leave Encashment

The valuation of Leave Encashment has been done on exit as well as availment during the service. This liability forms part of other long term benefits as per the standard and does not require disclosures as mentioned in Para 132 of the standard.

B. Provident Fund

The provident fund contribution is made to a trust administered by the company. In terms of the guidance note issued by the Institute of Actuaries of India,the actuary has provided a valuation of provident fund liability based on assumptions listed below and determined that there is no shortfall as at 30th June,2012.

The assumptions used in determining the present value of obligation of interest rate guarantee under deterministic

NOTE 2 (Rs. Lacs)

Contingent liabilities not provided for in respect of :

Year Year 2011-2012 2010-2011

i) Estimated value of contracts remaining to be executed on capital accounts and not provided for : 397.14 1179.62

ii) Letters of Credit opened by Bankers and outstanding at the year end. 12910.33 14592.33

iii) Bills discounted but not matured. 7527.52 11881.63

iv) Counter guarantees given to Banks against Banks' guarantees to Customs/ Sales Tax. 278.71 275.88

v) Disputed Excise / Service Tax demand. 2228.06 4994.08

vi) Disputed Sales Tax demand. 0.88 99.56

vii) Disputed Income Tax liability (matters under appeal) 499.41 716.66

viii) Other Claims. 71.31 71.31

NOTE 3

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 liabilities and depreciation are adequate and not in excess of the amount reasonably required.

NOTE 4

In absence of any intimation received from vendors regarding the status of their registration under "The Micro, Small and Medium Enterprises Development Act, 2006'' the Company is unable to comply with the disclosures required to be made under said Act. There are no amounts payable to any Small Scale Industrial Undertaking.

NOTE 5

a] Prior period adjustments include expenses Rs. 8.09 Lacs, (Previous year NIL) and income Rs. NIL (Previous year Rs. 6.63 Lacs).

NOTE 6

Trade Receivables/ Trade payables balances are subject to confirmation.

NOTE 7

Previous year's figures have been reworked, regrouped, rearranged and reclassified, wherever necessary, consequent to Revised Schedule VI under the Companies Act, 1956.


Jun 30, 2011

2010-2011 2009-2010

1] Contingent liabilities not provided for in respect of :

(Rs.lacs) (Rs.lacs)

i) Estimated value of contracts remaining to be executed on 1179.62 1957.08 capital accounts and not provided for :

ii) Letters of Credit opened by Bankers and outstanding at the year end. 14592.33 11868.95

iii) Bills discounted but not matured. 11881.63 8156.92

iv) Counter guarantees given to Banks against Banks' guarantees 275.88 468.93 to Customs/ Sales Tax.

v) Disputed Excise / Service Tax demand. 4994.08 3999.28

vi) Disputed Sales Tax demand. 99.56 99.56

vii) Disputed Income Tax liability (matters under appeal) 716.66 -

viii) Other Claims. 71.31 71.31

b. Ministry of Corporate Affairs, Government of India vide its notification dated February 8, 2011 issued under section 211(3) of the Companies Act, 1956 of (1 of 1956) has granted exemption from disclosure of quantitative details in the Profit and Loss Account under para 3(i)(a), 3(ii)(a), 3(ii)(b), 3(ii)(d) of Part II of Schedule VI to the Companies Act, 1956 vide Sr.No.2 of the table contained in the said notification.

2] [i] The Company had chosen to exercise the option pursuant to the amendment dated March 31, 2009 in the Accounting Standard (AS-11) "The Effects of Changes in Foreign Exchange Rates" in the preparation of its financial statements from the year ended 30th June, 2009. Accordingly foreign exchange differences adjusted against Assets or accumulated in a "Foreign Currency Monetary Item Translation Difference Account" (FCMITDA) and the balance amount in FCMITDA to be amortised in the future periods are as under:

[ii] Foreign Exchange forward contracts premium either on settlement or on translation recorded under respective heads by credit/ (debit) in the profit and loss account (net) debit of Rs.2157.24 lacs (Previous year Rs.271.33 lacs).

B. Leave Encashment

The valuation of Leave Encashment has been done on exit as well as availment during the service. This liability forms part of other long term benefits as per the standard and does not require disclosures as mentioned in Para 132 of the standard.

9] Disclosure of transactions with Related Parties, as required by Accounting Standards 18 "Related Party Disclosures" is given below :

a) Names of the related parties and description of relationship :

1 Promoters

The Supreme Industries Ltd.

R. Raheja Investments Pvt. Ltd.

2 Key Management Personnel

Shri N. Gopal

3 Subsidiaries

a) SPL Industrial Park Ltd [wound up w.e.f. 14.03.2011]

b) SPL Industrial Support Services Ltd. [wound up w.e.f. 23.04.2011]

3] 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 liabilities and depreciation are adequate and not in excess of the amount reasonably required.

4] In absence of any intimation received from vendors regarding the status of their registration under "The Micro, Small and Medium Enterprises Development Act, 2006'' the Company is unable to comply with the disclosures required to be made under said Act. There are no amounts payable to any Small Scale Industrial undertaking.

5] a] Prior period adjustments include expenses Rs.7.85 lacs (previous year Rs.13.23 lacs) and income Rs.6.63 (Previous year Rs.NIL).

b] Bad debts include amount recovered during the year Rs.235.72 lacs (Previous year Rs.NIL).

6] Debtors/ Creditors balances are subject to confirmation.

7] Additional information required under Part IV of Schedule VI to the Companies Act, 1956 is attached herewith.

8] Previous year's figures are regrouped, wherever necessary.


Jun 30, 2010

2009-2010 2008-2009 (Rs. Lacs) (Rs. Lacs)

1) Contingent liabilities not provided for in respect of:

i) Estimated value of contracts remaining to be executed on capital accounts and not provided for: 1,957.08 359.02

ii) Letters of Credit opened by Bankers and outstanding at the year end 11,868.95 6,744.08

iii) Bills discounted but not matured 8,156.92 6,479.56

iv) Counter guarantees given to Banks against Banks guarantees to Customs/ Sales Tax 468.93 315.82

v) Excise / Service Tax matters under dispute 3,999.28 1,737.51

vi) Sales Tax matter under dispute 99.56 97.00

vii) Other Claims 71.31 71.31

[B] The Department of Company Affairs, Government of India vide its Order dated 25.06.2010 issued under section 211 (4) of the Companies Act, 1956 has granted exemption as allowed in the past from disclosure of quantitative details in the Profit and Loss Account under para 3(i) (a), 3(ii) (a) and 3(ii) (b) of Part II of Schedule VI to the Companies Act, 1956.

b] Amount of (Gain)/ Loss to be amortised to Profit and Loss Account, in future period : July 2010 to March 2011 : Rs/ 12.65 Lacs

B. Leave Encashment

The valuation of Leave Encashment has been done on exit as well as availment during the service. This liability forms part of other long term benefits as per the standard and does not require disclosures as mentioned in Para 132 of the standard

2] Disclosure of transactions with Related Parties, as required by Accounting Standards 18 "Related Party Disclosures" is given below:

a) Names of the related parties and description of relationship

Sr. No. Particulars Name of the Party

1 Promoters The Supreme Industries Ltd.

R. Raheja Investments Pvt. Ltd.

2 Key Management Personnel Shri N. Gopal

3 Subsidiaries a) SPL Industrial Park Ltd b) SPL Industrial Support Services Ltd.

3] 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 liabilities and depreciation are adequate and not in excess of the amount reasonably required.

4] In absence of any intimation received from vendors regarding the status of their registration under "The Micro, Small and Medium Enterprises Development Act, 2006" the Company is unable to comply with the disclosures required to be made under said Act. There are no amounts payable to any Small Scale Industrial undertaking.

5] Prior period adjustments include expenses Rs. 13.23 Lacs (previous year Rs. 15.76 Lacs) and income Rs. NIL (Previous year Rs. 22.45 Lacs).

6] Debtors/Creditors balances are subject to confirmation.

7] Additional information required under Part IV of Schedule VI to the Companies Act, 1956 is attached herewith.

8] Previous years figures are regrouped, wherever necessary.

 
Subscribe now to get personal finance updates in your inbox!