Home  »  Company  »  SVC Superchem Li  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of SVC Superchem Ltd.

Mar 31, 2015

1. Most of lenders have approached DRT for recovery. However, certain bankers and Financial Institutions have assigned Sheirclaims to certain Asset reconstruction Company, Foreign bank and other Investment Companies including certain strategic investor. Company has not replaced those lenders in its books of accounts due to ongoing disputes. PICUP being one of the Secured Creditors has issued notice for taking possession of assets of company, however company has already got stay order from honourable Allahabad High court against the PICUP notice of possession, till further order.

2. Due to non-servicing of debt and consequential debt restructuring/One Time settlement (OTS) proposal and also due to pendency of DRT proceedings, various Banks and institutions have not provided in their books of accounts Interest/Bank charges and therefore outstanding of such Banks and Financial Institutions is un- reconciled. In view of various Debt Restructuring proposals submitted earlier before the fenders and matters under One Time settlement (OTS) negotiation and aiso certain matters being pending before the Debt Recovery Tribunal and also due to non commencement of commercial operation of the unit for more than a decade causing non-servicing of its debt to the lenders and its present financial position , company has not provided any interest since September' 1999, aggregating to Rs.7604.83 crores (6302.97 crores) as on 31st March 2015 on this basis of original documented rate. Neither Interest is provided nor ascertained on the unpaid amounts payable to creditors due to delay in project commissioning and disputes with such parties. The interest at the documented rates not provided by the company amounted to Rs 1301.86 crores(Rs. 1092.59 crores) for the year ended on 31st March 2015 included in above on its secured borrowings.

3. Company's Plant under construction has been under shut down since September, 2000 and with the passage of time and in the absence of any operation since then, the corrosion is taking place in the Plant due to climatic and cyclonic conditions in the area. It is difficult to express the opinion about the health of the Plant on going concern basis or about the losses due to impairment of the assets of the Project, as required under Accounting Standard 28 (AS-28) since the project and its plant & machinery are one of the highly technologically oriented project whose valuation or its capabilities and conditions are technical subject, and in the absence of independent technical evaluation and health check up of the Plant at present, one can not determine losses if any, for making any provision for impairment of the assets of the project or about its status as ongoing project.

4. Amount of Rs.61.93 lac (Rs.61.93 lac) payable to certain financer on account of Equipments / Machineries acquired under the Hire Purchase Agreement having lien on those equipment and machineries are included in the creditors for capital assets who has agreed to assign to new equipment Financier Akhil Marketing Pvt. Ltd., an Associated company in terms of tripartie agreement.

5. Since commercial production has not commenced during the year, no profit and loss account has been prepared. The necessary details as per Part II of Schedule III of the Companies Act, 2013 have been disclosed in Note No. 28 hereinafter. All the expenses incurred during the year have been capitalized as per said Note 28.

6. Calls in arrears include unpaid Allotment Money related to Debentures which have been converted into Equity Shares as per

7. Contingent Liabilities not provided for in the Accounts are as follows

Ciaims against the Company not acknowledged as debt, excluding the amount mentioned in Note No. 15 hereinabove, as certified by the management, including matter under litigation as on 31st March, 2015 Rs.835.26 lacs (P.Y,Rs.835.26 lacs)

8. Income Tax Assessment of the company have been completed up to Assessment Year 2010-11. There is no disputed demand outstanding and payable as on date of Balance sheet.

9. The Company had received show cause notice in the year 2003-04 from the Government authorities for demand of duty on imported spares kept beyond permissible time and still lying in Govt, approved Bonded warehouse amounting to Rs.95.57 lacs. Company has responded to said show cause notice and has also made provision accordingly, The matter is still pending before the Govt, authorities,

10 (a) Company has filed appeal against the order of Commissioner of Excise & Service Tax before CESAT Delhi for disallowing Cenvat credit Rs. 127.95 lacs and levy of penalty of equal amount. Company has received the stay order against above demand. The company is confident that its appeal will be allowed, Accordingly. no provision has been made in its accounts.

(b) Company has received another show cause notice during the earlier year from the Excise authorities that why Cenvat Credit Rs. 217.60 lacs along with interest and penalty should not be recovered from the Company, Company has reversed the said modvats credit of Rs.217.60 lacs under protest and has preferred appeal before the CESAT Delhi, got stay order and is confident that the relief will be granted by the CESAT Company has included such reversal of modvat credit ofRs.217.60 lacs in earlier year2010-2011 in Capital work in progress. Caseis still pending for hearing.

11. Fixed assets taken on lease amounting to Rs. 907,26 lac (Rs.907.26 lac) being lease value net of margin deposit and amount transferred to Secured Loans as referred in Note No. 5F herein above. There is no future obligations pertaining to lease rentals becoming due after the date of Balance Sheet. Outstanding dues pertaining to lease rental payable on the documented rates, excluding write off of creditors as per note 28 (a) and late payment charges, are included in Other Long Term Liabilities amounting to Rs. 291.63 lacs. Lease suppliers have exclusive charge on the leased assets provided byt hemalong with other as per Note No. 5.F hereinabove. No provision has been made by the Company for any lease rental or for late payment charges on a bove a rrears as the pi a nt is closed sinee 2000.

12. As there is no commercial operation or fresh purchases and there are only old creditors, the company is not able to identify creditors covered by Micro, small and medium Enterprises Development Act, 2006 and as such amount payable to them, if any, could not also be ascertained.

13. As per Accounting Standard (AS-18) on "Related Party Disclosures" the disclosure of transactions with related parties as defined therein are given below.

a. During the year, company has written off credit balance of certain disputed lease creditors on account of it being time barred, no more payable as per legal advice received by the company amounting to Rs. 317.13 lacs and has been adjusted from the capital work in progress as above.

b. During the year company has provided full additional depreciation of Rs.228.26 lacs as required in terms of part c of schedule II of Companies act 2013 based on the remaining useful life of assets,

14. In the opinion of the Board, Assets of the company excluding Capital- work-in-progress whose no technical evaluation has been made during the year, have a value on realization, at least equal to the amount at which they are stated in the books of accounts and provision for all known liabilities, except as mentioned otherwise, has been made.

15. Commercial Tax authorities have levied penalty for (he year 2007- 2008 and 2008-2009 of Rs.1,62,528/- and Rs.3,61,540/- respeciively regarding use of concession form on procurement of HSD taken / used. Company has preferred appeal before the appellant authority for the stay and waiver of the penalty. The appeal has been decided partially in favour of company by by giving 50% relief. Now, company has filed appeal before Tribunal for waiver balance amount of Penalty. Company has however deposited the disputed amount under protest pending its appeal before the Tribunal. The Matteris still pending for hearing.

16. Previous year figures have been regrouped, reworked, rearranged and reclassified wherever necessary. Figures in brackets indicate the corresponding figures for the previous year.


Mar 31, 2013

1 CORPORATE INFORMATION

SVC Superchem Ltd ‘the Company'' was incorporated in India on 29th August''1989 and is implementing PTA project at its plant site at Chhata Barsana Road, Chhata, Mathura(UP). Company''s plant under construction has been under shut down condition since September, 2000 after successfull trial run. Company has its registered office at Mumbai .

2 Most of lenders have approached DRT for recovery. However, certain bankers and Financial Institutions have assigned their claims to certain Asset reconstruction Company, Foreign bank and other Investment Companies. Company has not replaced those lenders in its books of accounts due to ongoing disputes. PICUP being one of the Secured Creditors has issued notice for taking possession of assets of company, however company has already got stay order from honourable Allahabad High court against the PICUP notice of possession.

3 Due to non-servicing of debt and consequential debt restructuring/OTS proposal and also due to pendency of DRT proceedings, various Banks and institutions have not provided in their books of accounts full Interest/Bank charges and therefore outstanding of such Banks and Financial Institutions is un-reconciled. In view of various Debt Restructuring proposals submitted earlier before the lenders and now matters being pending before the Debt Recovery Tribunal and also due to non commencement of commercial operation of the unit for more than a decade causing non-servicing of its debt to the lenders, company has not provided any interest since September'' 1999, aggregating to Rs. 5210.38 crores

(4293.10 crores) as on 31-03-2013 on this basis of original documented rate. Neither interest is provided nor ascertained on the unpaid amounts payable to creditors due to delay in project commissioning and disputes with such parties.The interest at the documented rates not provided by the company amounted to Rs. 917.28 crores(Rs. 770.38 crores) for the year ended on 31 st march 2013 on its secured borrowings.

4 Company''s Plant under construction has been under shut down since September, 2000 and with the passage of time, inspite of time to time maintenance by the Company and in the absence of any operation since then, the corrosion is taking place in the Plant due to climatic and cyclonic conditions in the area. It is difficult to express the opinion about the health of the Plant on going concern basis or about the losses due to impairment of the assets of the Project, as required under Accounting Standard 28 (AS-28), since the project and its plant & machinery are one of the highly technologically oriented project whose valuation or its capabilities and conditions are technical subject, and in the absence of independent technical evaluation and health check up of the Plant at present, one can not determine losses if any, for making any provision for impairment of the assets of the project or about its status as ongoing project.

5 Amount of Rs.61.93 lac (Rs.61.93 lac) payable to certain financer on account of Equipments / Machineries acquired under the Hire Purchase Agreement having lien on those equipment and machineries are included in the creditors for capital assets and which has been assigned to equipment Financier Akhil Marketing Pvt. Ltd., an Associated company.

6 Since commercial production has not commenced during the year, no profit and loss account has been prepared. The necessary details as per Part II of Schedule VI of the Companies Act, 1956 have been disclosed in Note No. 28 hereinafter. All the expenses incurred during the year have been capitalized as per said Note 28.

7 Calls in arrears include unpaid Allotment Money related to Debentures which have been converted into Equity Shares as per the terms of issue but in respect of which the Company, in exercise of its lien on such shares, has not issued the share certificates to the defaulting Debenture holders. The Company''s lien on such shares will extend to the forfeiture of such shares if considered necessary by the Company Board in due course of time.

8 Contingent Liabilities not provided for in the Accounts are as follows :

(a) Claims against the Company not acknowledged as debt, excluding the amount mentioned in Note No.15 hereinabove, as certified by the management, including matter under litigation as on 31st March, 2013 Rs.835.26 lacs (P.Y.Rs.844.86 lacs)

9 Income Tax Assessment of the company have been completed up to Assessment Year 2008-09. There is no disputed demand outstanding and payable as on date of Balance sheet.

10 The Company had received show cause notice in the year 2003-04 from the Government authorities for demand of duty on imported spares kept beyond permissible time and still lying in Govt. approved Bonded warehouse amounting to Rs.95.57 lacs. Company has responded to said show cause notice and has also made provision accordingly. The matter is still pending before the Govt. authorities.

11 (a) Excise Department has preferred Appeal before the CESAT Delhi against the order of its Appellant Authorities favouring Company by setting aside their demand notices issued against the Company earlier regarding Cenvat Credit refusal of Rs.127.96 lacs by the assessing authority. The appeals are still pending for hearing and Company is confident that those departmental appeals will also be set aside. The appropriate authority has remanded the order to lower authority.

(b) Company has received another show cause notice during the earlier year from the Excise authorities that why Cenvat Credit Rs. 217.60 lacs along with interest and penalty should not be recovered from the Company. Company has reversed the said modvats credit of Rs.217.60 lacs under protest and has preferred appeal before the CESAT Delhi, got stay order and is confident that the relief will be granted by the CESAT. Company has included such reversal of modvat credit of Rs.217.60 lacs in earlier year 2010- 2011 in Capital work in progress. Case is still pending for hearing.

12 Fixed assets taken on lease amounting to Rs. 907.26 lac (Rs.907.26 lac) being lease value net of margin deposit and amount transfered to Secured Loans as referred in Note No. 5F herein above. There is no future obligations pertaining to lease rentals becoming due after the date of Balance Sheet. Outstanding dues pertaining to lease rental payable on the documented rates, excluding late payment charges, are included in Other Long Term Liabilities amounting to Rs. 291.63 lacs (Rs. 291.63 lacs) who have exclusive charge on the said leased assets along with other as per Note No. 5.F hereinabove. No provision has been made by the Company for any lease rental or for late payment charges on above arrears as the plant is closed since 2000.

13 As there is no commercial operation or fresh purchases and there are only old creditors, the company is not able to identify creditors covered by Micro, small and medium Enterprises Development Act, 2006 and as such amount payable to them, if any, could not also be ascertained.

14 Pre-operative expenses subject to Note No.15 and 25 hereinabove in respect of ongoing project up to 31st March, 2013 are included under the head Capital Work-in-

15 During the year the Company has received credit rebates and raised Debit Notes on certain suppliers / contractors / creditors on account of settlement of their claims on OTS basis / deficiency in the quality of material supplied / work executed by them in earlier years amounting to Rs. 17.00 lacs (Rs. 42.84 lacs). The above has been adjusted from the Capital work-in- progress.

16 In the opinion of the Board, Assets of the company excluding Capital-work-Progress have a value on realization, at least equal to the amount at which they are stated in the books of accounts and provision for all known liabilities, except as mentioned otherwise, has been made.

17 Commercial Tax authorities have levied penalty for the year 2007-2008 and 2008-2009 of Rs.1,62,528/- and Rs.3,61,540/- respectively regarding use of concession form on procurement of HSD taken / used. Company has preferred appeal before the appellant authority for the stay and waiver of the penalty. The appeal has been decided partialy in favour of company by giving 50% relief. Now, company has filed appeal before Tribunal for waiver balance amount of Penalty. Company has however deposited the disputed amount under protest pending its appeal before the Tribunal.

18 Previous year figures have been regrouped, reworked, rearranged and reclassified wherever necessary. Figures in brackets indicate the corresponding figures for the previous year.


Mar 31, 2010

A. OTHER NOTES: 1. Secured loans include :-

a. Non-Convertible Debentures of Rs. 10185.63 lacs which were redeemable at par in one or more installments on various dates with redemptions commencing from February, 1999 being the earliest redemption and October, 2007 being the last redemption date. All the above Non-Convertible Debentures have become overdue.

b) The Working Capital loan from banks including amount of Letter of Credits devolved (net of margin money provided against such devolved Letter of Credit) amounting to Rs. 7180.16 lacs (Rs.7185.48 lacs) are secured / to be secured by way of hypothecation of present and future inventories, books debts and other movable assets of the company and second and subsequent charges on the immovable properties of the Company excluding assets specifically charged to others and is further secured by way of personal guarantee of Promoter Director. Demand Loan against Modvat receivables amounting to Rs.1935.72 lacs (Rs.1935.72 lacs) are secured /to be secured by way of hypothecation of Modvat receivables of the company and second and subsequent charge on the immovable properties of the company excluding assets specifically charged to others and is further secured by personal guarantee of Promoter Director.

c. (i) Term Loan from Financial Institutions to the extent of Rs. 12329.64 lacs (Rs. 12329.64 lacs) are secured / to be secured by way of Equitable Mortgage created on immovable properties situated at Chhata, District. Mathura in the State of Uttar Pradesh and are further secured by way of hypothecation of movable properties of the Company both present and future (other than current assets and specific assets charged to others) ranking on a pari-pasu basis which is further secured by personal guarantee of a Promoter Director and (ii) Rs. 2512.92 lacs (Rs.2,512.92 lacs) from a Financial Institution under its Bill Discounting Scheme are secured by exclusive charge by way of hypothecation of specific items of machinery purchased under this scheme and guarantee of two corporate bodies.

d. Non-Convertible Debentures amounting to Rs.10185.63 lacs (Rs.10185.63 lacs) are secured / to be secured by way of first charge (i) by Legal Mortgage on immovable property situated at Palas, District Roha, in the state of Maharashtra (ii) extension of first charge by equitable mortgage ranking pari-pasu on immovable properties situated at Chhata, District. Mathura in the state of Uttar Pradesh. They are further secured on all the movable asssets of the Company both present and future (excluding current assets and specific assets charged to others) ranking on a pari-pasu first charge basis with others and are also further secured by personal guarantee of a Promoter Director.

e. Term Loan from Banks amounting to Rs.16409.64 lacs (Rs. 16,409.64 lacs) (including the loan representing devolved amount of DPG given against long term foreign currency loan) are secured / to be secured by way of Equitable Mortgage of immovable properties situated at Chhata, District. Mathura in the state of Uttar Pradesh and are further secured by way of hypothecation of the movable properties of the Company both present and future (other than current assets and specific assets charged to others) ranking on a pari pasu basis which are further secured by a personal guarantee of a Promoter Director. Further loans amounting to Rs. 207.14 lacs (Rs.207.14 lacs) is exclusively secured by way of hypothecation of the specific fixed assets of the company and are further secured by a personal guarantee of a promoter director.

f. Advance given by a Financial Institutions of Rs.407.90 lacs to Equipment Vendor for the supply of specific Plants at Companys site and to be leased on commissioning along with arrear of lease rental up to March 2001 provided by Company amounting to Rs. 122.69 lacs are included in the capital work in progress. The above outstanding is included in the Term Loan in view of earlier CDR proposal and based on in principle confirmation from the said Financial Institution received earlier for converting the above lease finance into term loan as per then restructuring scheme.

g. Interest accrued and due amounting to Rs. 5971.53 lacs (Rs.5971.53 lacs) on all the above borrowings provided in the Books of accounts by the Company upto September, 1999 together with further interest thereon and not provided by the Company since then read with Note No.B-16, is secured ranking on a pari- pasu basis with respective Secured loans.

h. The Promoter Director of the Company, his family members and investment companies, have also pledged Rs. 228.32 lac shares owned by them to Banks and Financial Institutions as collateral security.

2. Most of lenders have approached DRT for recovery. However, certain bankers and Financial Institutions have assigned their claims to certain Asset reconstruction Company, Foreign bank and other Investment Companies. Company has not replaced those lenders in its books of accounts due to ongoing disputes. Bombay High Court has allowed ASREC to take appropriate action under securitization act. PICUP being one of the Secured Creditors has issued notice for taking possession of assets of company however company has got stay order from honourable Allahabad High court against the PICUP notice of possession.

3. Due to non-servicing of debt and consequential debt restructuring/OTS proposal and also due to pendency of DRT proceedings, various Banks and institutions have not provided in their books of accounts full Interest/Bank charges and therefore outstanding of such Banks and Financial Institutions is un-reconciled. Neither Interest is provided nor ascertained on the unpaid amounts payable to creditors due to delay in project commissioning and disputes with such parties.

3. Companys Plant under construction has been under shut down since September, 2000 and with the passage of time, inspite of time to time maintenance by the Company and in the absence of any operation since then, the corrosion is taking place in the Plant due to climatic and cyclonic conditions in the area. It is difficult to express the opinion about the health of the Plant on going concern basis or about the losses due to impairment of the assets of the Project, as required under Accounting Standard 28 (AS- 28), since the project and its plant & machinery are one of the highly technologically oriented projects whose valuation or its capabilities and conditions are technical subject, and in the absence of independent technical evaluation and health check up of the Plant at present, one can not determine losses if any, for making any provision for impairment of the assets of the project or about its status as ongoing project.

4. Amount of Rs.61.93 lac (Rs.61.93 lac) payable to certain financer on account of Equipments / Machineries acquired under the Hire Purchase Agreement having lien on those equipment and machineries are included in the creditors for capital assets.

5. Since commercial production has not commenced during the year, no profit and loss account has been prepared. The necessary details as per Part II of Schedule VI of the Companies Act, 1956 have been disclosed in Note No.B-18 hereinafter. All the expenses incurred during the year have been capitalized as per said Note B-18.

6. Calls in arrears include unpaid Allotment Money related to Debentures which have been converted into Equity Shares as per the terms of issue but in respect of which the Company, in exercise of its lien on such shares, has not issued the share certificates to the defaulting Debenture holders. The Companys lien on such shares will extend to the forfeiture of such shares if considered necessary by the Company.

7. Contingent Liabilities not provided for in the Accounts are as follows :

a) Claims against the Company not acknowledged as debt as certified by the management including matter under litigation as on 31st March, 2010 Rs. 872.11 lacs (P.Y.Rs.1042.48 lacs).

b) Un-provided aggregate Interest is un-ascertainable due to various Debt restructuring proposals as per Note No.B-16 hereinafter and matter being un- reconciled and sub-judice due to arbitrary assignment of debts by certain lenders as per Note No. B-2 and B-3 hereinabove.

8. Income Tax Assessment of the company have been completed up to Assessment Year 2007-2008. There is no disputed demand outstanding and payable. During the year company has received refund of Income Tax along with interest for the assessment year 1993-1994 of Rs. 52.49 lacs.

9. The Company had received show cause notice in the year 2003-04 from the Government authorities for demand of duty on imported spares kept beyond permissible time and still lying in Govt, approved Bonded warehouse amounting to Rs.95-57 lacs. Company has responded to said show cause notice and has also made provision of Rs. 69.11 lacs for the above show cause liability net of CVD credit. The matter is still pending.

10. Excise Department has preferred Appeal before the CESAT Delhi against the order of its Appellant Authorities favouring Company by setting aside their demand notices issued against the Company earlier regarding Cenvat Credit refusal of Rs.141.93 lacs by the assessing authority. The appeals are still pending for hearing and Company is confident that those departmental appeals will also be set aside. Company has received another show cause notice during the year from the Excise authorities that why Cenvat Credit Rs. 217.60 lacs alongwith interest and penalty should not be recovered from the Company. Company has filed reply seeking relief under the Central Excise Act. The company is confident that the relief will be granted by the department. The matter is pending before the authorities.

11. Fixed assets taken on lease amounting to Rs.907.26 lac (Rs.907.26 lac) being lease value net of margin deposit. There is no future obligations pertaining to lease rentals becoming due after the date of Balance Sheet. Outstanding dues pertaining to lease rental payable on the documented rates, excluding late payment charges, are included in sundry creditors amounting to Rs.608.76 lacs {Rs. 608.76 lacs) who have exclusive charge on the said leased assets along with other as per Note No.B-1-f hereinabove. No provision has been made by the Company for any lease rental or for late payment charges on above arrears as the plant is closed since 2000.

12. As there is no commercial operation or fresh purchases and there are only old creditors, the company is not able to identify creditors covered by Micro, small and medium Enterprises Development Act, 2006 and as such amount payable to them, if any, could not also be ascertained.

13. In view of the various Debt Re-structuring proposals submitted earlier before the lenders and now matter being pending before the Debt Recovery Tribunal and also due to non- commencement of commercial operation of the unit for almost a decade causing non-servicing of its debt to the lender, company has not provided any interest since September, 1999. The Interest at the documented rates not provided by the Company amounted to Rs. 543.93 crores (Rs.457.29 crores) for the year ended on 3rMarch, 2010 on its secured borrowings.

14. As per Accounting Standard (AS-18) on "Related Party Disclosures" the disclosure of transactions with related parties as defined therein are given below:

A List of related party with whom transactions have taken place and relationship :-

Associate Companies

I. SVC Growth Fund Pvt. Ltd.

II. Krishna Suppliers Pvt. Ltd.

III. Krishna Advisors Pvt. Ltd.

IV. Akhil Marketing Pvt. Ltd.

Key Management Personnel

I. Shri G. S. Tiwari

II. Shri Jaffar Iman

15. Pre-operative expenses subject to Note No.B-14 and fi- le hereinabove in respect of ongoing project up to 31st March 2010 are included under the head Capital Work-in- Progress :-

16. During the year the Company has received credit rebates and raised Debit Notes on certain suppliers / contractors / creditors on account of settlement of their claims on OTS basis / deficiency in the quality of material supplied / work executed by them in earlier years amounting to Rs. 570.28 lacs (Rs. 84.12 lacs). The above has been reduced from the Capital work-in- progress.

17. In the opinion of the Board, Current Assets, Loans and Advances and other receivable excluding Fixed Assets and Capital-work-Progress have a value on realization, at least equal to the amount at which they are stated in the books of accounts and provision for all known liabilities, except as mentioned otherwise, has been made.

18. Previous year figures have been regrouped, reworked, rearranged and reclassified wherever necessary. Figures in brackets indicate the corresponding figures for the previous year.

 
Subscribe now to get personal finance updates in your inbox!