Mar 31, 2015
A) CORPORATE INFORMATION
Shreyas Intermediates Limited (The Company) was incorporated in the
year 1992 and is engaged in the business of manufacturing of Pigments
and Pigment Intermediates.
B) OTHER NOTES TO ACCOUNTS: -
1. The company has incurred Cash Losses during the year as well as in
the earlier year and accordingly has been covered under the definition
and provisions of The Sick Industrial Companies (Special Provisions)
Act, 1985. The company had made an application with the Board of
Industrial & Financial Restructuring under the provisions of the Act
which was declined due to technical issues. The company has made a
fresh reference to the Board of Industrial & Financial restructuring
which is pending before the Secretariat. The notice was issued by the
Secretariat for personal hearing on a date however the notice was
received upon the lapse of the above date. The company has represented
its case and is awaiting further instruction and intimations from the
respective authority and forums.
2. The company had availed secured loans from the bankers which had
been defaulted. The company had approached the financial institutions
with a settlement scheme which has been duly approved by both the
lending bankers. Bank of Baroda had approved a One Time Settlement
option in respect of its dues by assigning its entire dues to Invent
ARC. Furthermore State Bank of India had also assigned their dues on
Security Realization basis to Invent ARC. The company remains committed
to settle the dues according to the above scheme on specified terms.
According to the specified terms under the scheme, the company has not
made any provision towards the above and thus we remain unable to
quantify the implication of the above scheme of restructuring in our
report.
3. During the year, the company has reduced the carrying cost of its
Plant & Machinery by the quantum of interest and principal which had
been capitalized by the Company. An additional amount which represents
the value of Capital Repairs undertaken in respect of the said plant &
machineries during the production trial run period, has been reduced
and reclassified under Other Non-Current Assets, pursuant to the advice
of the technical evaluation team. Accordingly, during the year the
cost of Plant & Machinery have been decreased to account for the above
reduction of carrying cost of the plant as also Capital Repairs to
bring the value of the Plant at its reasonable realistic value as per
the technical evaluation team. The company has claimed a rebate on the
Interest during the year which represents cessation of the interest
liability in respect of its Secured Loans availed during the earlier
years.
4. The Directors of the Company have certified that Current Assets,
Loans, Advances and Deposits have a realizable value at least equal to
the amount at which they are stated in the Balance Sheet. Directors are
of the opinion that provision for all known liabilities has been made
during the year and not in excess of the amount reasonably necessary.
5. The Company has not yet been able to completely identify the
suppliers covered under Interest on Delayed Payments to Small Scale and
Ancillary Industrial Undertakings Act, 1993. However, the Company does
not have any claim for interest outstanding at the dose of the year
from any said party.
6. Balances of Sundry Creditors, Debtors and advances are subject to
reconciliation and confirmation.
7. The financial statements have been prepared covering for the period
of six months from 1 st of October 2014 to 31 st of March 2015 whereas
the previous year cover a period of year ended 30thSeptember, 2014. The
figures pertaining to previous year have been regrouped/reclassified
wherever required.
Sep 30, 2014
1. Contingent Liabilities
As at 30th September
2014 2013
Rupees in Rupees in
Lacs Lacs
a. Guarantee given by the company''s Bankers 26.00 26.00
and Counter guaranteed by the company
b. Claims against the company not acknowledged 1600.00 1600.00
as Debts*
c. Liability towards Sales Tax Assessment 382.00 382.00
d. Liability towards Central Excise Dues 540.00 540.00
* A claim has been filed during the earlier year by a creditor for Rs.
1600.00 Lacs which is over & above its claims.
2. The company has incurred Cash Losses during the year as well as in
the earlier year and accordingly has been covered under the definition
and provisions of The Sick Industrial Companies (Special Provisions)
Act, 1985. The company has made an application with the Board of
Industrial & Financial Restructuring under the provisions of the Act.
The application remains under process during the year and the company
is awaiting further instruction and intimations from the respective
authority and forums.
3. During the earlier year, the company had approached the bank
consortium with a scheme of restructuring, detailing the causes and
reasons of its defaults and the bankers had approved the restructuring
proposal, thereby sanctioning and approving a scheme of financial
restructuring. However the said scheme of restructuring could not be
implemented by the bankers during the earlier year and the company has
been pursuing its case with the respective bankers. However the
bankers, Bank of Baroda & State Bank of India have transferred their
respective assets to an Assets Reconstruction Company. The company
remains committed to settle the issue amicably and has approached the
Financial Institutions with a proposal for settlement of the dues on
reasonable terms, the same remains under consideration and process with
the concerned authority. No provision towards the above has been
considered in the preparation of the Financial Statements and thus we
remain unable to quantify the implication of the above scheme of
restructuring in our report.
4. The company had been availing the benefit of exemption under the
erstwhile Bombay Sales Tax Act, 1959 which was converted into deferment
of taxes under the package scheme of incentives under the Maharashtra
Value Added Tax Act, 2002 from August 2006. Further the company shall
be liable to repay the taxes collected under the deferment scheme
within 10 years from the date of such collection and deferment in 5
equal annual installments. The Management has not made any provision
for the same in the accounts during the year under consideration as in
its opinion the company is eligible for adequate refunds due on account
with the Maharashtra Value Added Tax Department which shall be adjusted
off against the above dues upon its assessment. However the company has
classified the total liability of Rs. 382.00 Lacs as Contingent
Liability in Schedule 25 A (12) above.
5. The Company has not provided for liability towards its Gratuity and
Leave Encashment payable to employees on retirement as the same are
accounted for on cash basis by the company. The same is not in
consonance with the provisions of AS-15 "Accounting for Retirement
Benefits in Financial Statements" issued by the Institute of Chartered
Accountants of India and the liabilities and the losses for the year
remain understated by the amount of such non provision of Employee
benefits.
6. The Directors of the Company have certified that Current Assets,
Loans, Advances and Deposits have a realizable value at least equal to
the amount at which they are stated in the Balance Sheet. Directors are
of the opinion that provision for all known liabilities has been made
during the year and not in excess of the amount reasonably necessary.
7. The Company has not yet been able to completely identify the
suppliers covered under Interest on Delayed Payments to Small Scale and
Ancillary Industrial Undertakings Act, 1993. However, the Company does
not have any claim for interest outstanding at the close of the year
from any said party.
8. Balances of Sundry Creditors, Debtors and advances are subject to
reconciliation and confirmation.
9. Figures pertaining to previous year have been regrouped /
reclassified wherever required.
Sep 30, 2013
1. The excise duty paid in respect of raw materials purchased and used
for manufacture does not form part of consumption of raw materials to
the extent of the CENVAT credit availed. Such duty is debited to
Central Excise Duty Account and adjusted against excise duty payable on
the finished goods.
The excise duty payable on stock of finished goods not cleared from
excise bonded warehouse is neither included in expenses nor in the
value of such stocks but ts accounted for on clearance of goods
However, non-provision of this liability will not affect the profit for
the year.
2. The company had been availing the benefit of exemption under the
erstwhile Bombay Sales Tax Act, 1959 which was converted into deferment
of taxes under the package scheme of incentives under the Maharashtra
Value Added Tax Act, 2002 from August 2006.
During the year the eligibility tenure of the said scheme has elapsed
and the company is- liable for payment of taxes collected as per the
stipulation of the said act. Further the company shall be liable to
repay the taxes collected under deferment scheme within 10 years from
the date of such collection and deferment in 5 equal annual
installments.
3. During the year, the company has approached the bank consortium
with a scheme of restructuring detailing the causes and reasons of such
defaults and during the year the bankers have approved the
restructuring proposal thereby sanctioning and approving a scheme of
financial restructuring. Accordingly the accumulated overdue interests
on the above loans have been sanctioned as a fresh Term Loan under the
said scheme of financial restructuring and the fresh tenure of
moratorium has been accorded to the company. During the year the
company is availing the sanctioned period of moratorium as per the
sanctioned restructuring scheme. -
4. The Sales Tax incentives Scheme 1993 of SICOM provides that the
unit should work for 35 years or during the currency of the Sales Tax
Benefits/other benefits drawn/availed of under the 1993 Scheme by way
of incentives there under, whichever longer. Accordingly, the Sales Tax
benefits availed by the company is subject to compliance of the terms
and conditions of the said scheme. The company has opted for Deferral
Scheme of Sales Tax liability. Accordingly the sales tax liability
shall be repayable after Ten years in five equal annual installments.
The Management has not made any provision for the same in the accounts
during the year under consideration. In our opinion the short term
liabilities and the losses for the year remain understated by the
amount of such pro-rata installment due on account of the repayment of
the Deferred Sales Tax benefit availed by the company in the earlier
years.
5. The Directors of the Company have certified that Current Assets,
Loans, Advances and Deposits have a realizable value at least equal to
the amount at which they are stated in the Balance Sheet. Directors are
of the opinion that provision for all known liabilities has been made
during the year and not in excess of the amount reasonably necessary.
6. The Company has not yet been able to completely identify the
suppliers covered under Interest on Delayed Payments to Small Scale and
Ancillary Industrial Undertakings Act, 1993. However, the Company does
not have any claim for interest outstanding at the close of the year
from any said party.
7. Balances of Sundry Creditors, Debtors and advances are subject to
reconciliation and confirmation.
8. Figures pertaining to previous year have been regrouped /
reclassified wherever required.
Sep 30, 2012
1. Contingent Liabilities
As at 30th September
2012 2011
Rupees in Lacs Rupees in Lacs
a. Guarantee given by the
company''s Bankers and
Counter guaranteed by the company 26.00 26.00
b. Claims against the company
not acknowledged as 69.30 148.51
Debts*
* A claim filed by a Creditor of the company in respect of Letter of
Credit Dues dishonored by the bank during the previous year has been
decided by the Honorable High Court. The above dues shall be payable
by the company in 15 equal monthly installments commencing from
01/2/2012.
1. The excise duty paid in respect of raw materials purchased and used
for manufacture does not form part of consumption of raw materials to
the extent of the CENVAT credit availed. Such duty is debited to
Central Excise Duty Account and adjusted against excise duty payable on
the finished goods.
The excise duty payable on stock of finished goods not cleared from
excise bonded warehouse is neither included in expenses nor in the
value of such stocks but is accounted for on clearance of goods.
However, non-provision of this liability will not affect the profit for
the year.
2. The company had been availing the benefit of exemption under the
erstwhile Bombay Sales Tax Act, 1959 which was converted into deferment
of taxes under the package scheme of incentives under the Maharashtra
Value Added Tax Act, 2002 from August 2006.
During the year the eligibility tenure of the said scheme has elapsed
and the company is liable for payment of taxes collected as per the
stipulation of the said act. Further the company shall be liable to
repay the taxes collected under deferment scheme within 10 years from
the date of such collection and deferment in 5 equal annual
installments.
3. During the year, the company has approached the bank consortium
with a scheme of restructuring detailing the causes and reasons of such
defaults and during the year the bankers have approved the
restructuring proposal thereby sanctioning and approving a scheme of
financial restructuring. Accordingly the accumulated overdue interests
on the above loans have been sanctioned as a fresh Term Loan under the
said scheme of financial restructuring and the fresh tenure of
moratorium has been accorded to the company. During the year the
company is availing the sanctioned period of moratorium as per the
sanctioned restructuring scheme.
4. The Sales Tax incentives Scheme 1993 of SICOM provides that the
unit should work for 35 years or during the currency of the Sales Tax
Benefits/other benefits drawn/availed of under the 1993 Scheme by way
of incentives there under, whichever longer. Accordingly, the Sales Tax
benefits availed by the company is subject to compliance of the terms
and conditions of the said scheme. The company has opted for Deferral
Scheme of Sales Tax liability. Accordingly the sales tax liability
shall be repayable after Ten years in five equal annual installments.
The Management has not made any provision for the same in the accounts
during the year under consideration. In our opinion the short term
liabilities and the losses for the year remain understated by the
amount of such pro-rata installment due on account of the repayment of
the Deferred Sales Tax benefit availed by the company in the earlier
years.
5. The Directors of the Company have certified that Current Assets,
Loans, Advances and Deposits have a realizable value at least equal to
the amount at which they are stated in the Balance Sheet. Directors are
of the opinion that provision for all known liabilities has been made
during the year and not in excess of the amount reasonably necessary.
6. The Company has not yet been able to completely identify the
suppliers covered under Interest on Delayed Payments to Small Scale and
Ancillary Industrial Undertakings Act, 1993. However, the Company does
not have any claim for interest outstanding at the close of the year
from any said party.
7. Balances of Sundry Creditors, Debtors'' and advances are subject to
reconciliation and confirmation.
8. Figures pertaining to previous year have been regrouped /
reclassified wherever required.
Sep 30, 2011
The excise duty paid in respect of raw materials purchased and used for
manufacture does not form part of consumption of raw materials to the
extent of the CENVAT credit availed. Such duty is debited to Central
Excise Duty Account and adjusted against excise duty payable on the
finished goods.
The excise duty payable on stock of finished goods not cleared from
excise bonded warehouse is neither included in expenses nor in the
value of such stocks but is accounted for on clearance of goods.
However, non- provision of this liability will not affect the profit
for the year.
The company had been availing the benefit of exemption under the
erstwhile Bombay Sales Tax Act, 1959 which was converted into deferment
of taxes under the package scheme of incentives under the Maharashtra
Value Added Tax Act, 2002 from August 2006.
During the year the eligibility tenure of the said scheme has elapsed
and the company is liable for payment of taxes collected as per the
stipulation of the said act. Further the company shall be liable to
repay the taxes collected under deferment scheme within 10 years from
the date of such collection and deferment in 5 equal annual
installments.
Contingent Liabilities
As at 31st March
2011 2010
Rupees in Lacs Rupees in Lacs
a. Guarantee given by the
company's Bankers and
Counter guaranteed by
the company 26.00 1.00
b. Claims against the
company not
acknowledged as Nil 148.51
Debts*
* A claim filed by a Creditor of the company in respect of Letter of
Credit Dues dishonoured by the bank during the previous year has been
decided by the Honourable High Court. The above dues shall be payable
by the company in 15 equal monthly installments commencing from
01/2/2012.
During the year, the company has approached the bank consortium with a
scheme of restructuring detailing the causes and reasons of such
defaults and during the year the bankers have approved the
restructuring proposal thereby sanctioning and approving a scheme of
financial restructuring. Accordingly the accumulated overdue interests
on the above loans have been sanctioned as a fresh Term Loan under the
said scheme of financial restructuring and the fresh tenure of
moratorium has been accorded to the company. During the year the
company is availing the sanctioned period of moratorium as per the
sanctioned restructuring scheme.
The Directors of the Company have certified that Current Assets, Loans,
Advances and Deposits have a realizable value at least equal to the
amount at which they are stated in the Balance Sheet. Directors are of
the opinion that provision for all known liabilities has been made
during the year and not in excess of the amount reasonably necessary.
The Company has not yet been able to completely identify the suppliers
covered under Interest on Delayed Payments to Small Scale and Ancillary
Industrial Undertakings Act, 1993. However, the Company does not have
any claim for interest outstanding at the close of the year from any
said party.
Figures pertaining to previous year have been regrouped / reclassified
wherever required.
Balances of Sundry Creditors, Debtors and advances are subject to
reconciliation and confirmation.
Sep 30, 2010
The excise duty paid in respect of raw materials purchased and used for
manufacture does not form part of consumption of raw materials to the
extent of the CENVAT credit availed. Such duty is debited to Central
Excise Duty Account and adjusted against excise duty payable on the
finished goods.
The excise duty payable on stock of finished goods not cleared from
excise bonded warehouse is neither included in expenses nor in the
value of such stocks but is accounted for on clearance of goods.
However, non- provision of this liability will not affect the profit
for the year.
Contingent Liabilities
As at 31- March 2010
Rupees in Lacs
a. Guarantee given by the companys Bankers and
Counter guaranteed by the company Nil
b. Claims against the company not acknowledged as 148.51 Debts*
* A claim filed by a Creditor of the company is pending in the. High
Court in respect of Letter of Credit Dues dishonoured by the bank. The
company has called for the honour of the dues citing adequate credits
claimed by the bank against the same to which the bank has certain
disputes. The company had credit balances remaining to its account in
the said bank which to date remains in the custody of the bank. The
company has appealed for relief against the above claim from the High
Court.
During the year, the company has defaulted in repayment of its Term
Loans and Cash Credit Loans. The company has not been able to service
its Loan from the quarter ended March 2010 and June 2010. The principal
as well as the interest component remain due from the above periods.
The total sums due in respect of the same is Rs. 614.70 Lacs. The
company has initiated a re-negotiation process with the banking
institutions with respect to the above loans. The terms and conditions
thereof still remain under consideration by the banks.
The Directors of the Company have certified that Current Assets, Loans,
Advances and Deposits have a realizable value at least equal to the
amount at which they are stated in the Balance Sheet Directors are of
the opinion that provision for al known liabilities has been made
during the year and not in excess of the amount reasonably necessary.
The Company has not yet been able to completely identify the suppliers
covered under Interest on Delayed Payments to Small Scale and Ancillary
Industrial Undertakings Act, 1993. However, the Company does not have
any Claim for interest outstanding at the close of the year from any
said party.
Figures pertaining to previous year have been regrouped/reclassified
wherever required.
Balances of Sundry Creditors, Debtors and advances are subject to
recontiliation and confirmation.
Sep 30, 2009
The excise duty paid in respect of raw materials purchased and used for
manufacture does not form part of consumption of raw materials to the
extent of the CENVAT credit availed. Such duty is debited to Central
Excise Duty Account and adjusted against excise duty payable on the
finished goods.
The excise duty payable on stock of finished goods not cleared from
excise bonded warehouse is neither included in expenses nor inthe value
of such stocks but is accounted for on clearance of goods. However,
non- provision of this liabjlity will not affect the profit for the
year.
The Directors of the Company have certified that Current Assets, Loans,
Advances and Deposits have a realizable value at least equal to the
amount at which they are stated in the Balance Sheet. Directors are of
the opinion that provision for all known liabilities has been made
during the year and not in excess of the amount reasonably necessary.
The Company has not yet been able to completely identify the suppliers
covered under Interest on Delayed Payments to Small Scale and Ancillary
Industrial Undertakings Act, 1993. However, the Company does not have
any claim for interest outstanding at the close of the year from any
said party.
Figures pertaining to previous year have been regrouped/redassified
wherever required.
Balances of Sundry Creditors, Debtors and advances are subject to
reconciliation and confirmation.
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