Home  »  Company  »  Sukhjit Starch &  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Sukhjit Starch & Chemicals Ltd.

Mar 31, 2018

1. CORPORATE INFORMATION

The Sukhjit Starch & Chemicals Limited (‘The Company’) is Public Limited Company incorporated and domiciled in India. The address of its registered office is Sarai Road, Phagwara - 144401.

The company is an Agro-Processing Industry manufacturing starch & its derivatives i.e Liquid Glucose, Dextrose Monohydrate, Dextrose Anhydrous, Sorbitol, Modified Starches and by-products. The company has emerged as one of the largest manufacturers of the Starch and its derivatives in India having multi-locational manufacturing units at Phagwara (Punjab), Nizamabad (Telangana), Malda (West Bengal) and Gurplah (Himachal Pradesh).

The Company is listed on Bombay Stock Exchange Ltd. (BSE). The standalone financial statements for the year ended March 31, 2018 were approved by the Board of Directors on 30.05.2018.

(*) There was Nil amount outstanding for more than 45 days & no overdue amount to the Micro, Small & Medium Enterprise, so no interest was payable/paid during the year (P.Y. Nil) (31.03.2016 - Nil)

(**) Include Rs. 164.78 lacs (P.Y. Rs. 218.92 lacs) (31.03.2016 - 278.48) as advance from Sundry Customers for supply of Goods.

Defined Benefit Plan

Defined benefit plans include Gratuity which is determined on the basis of actuarial valuation at the end of the year and contributions are deposited with SBI Life Insurance Company Ltd. under a separate trust, and charged to the Profit & Loss Account of the relevant year. The required disclosures are given hereunder :

1. Figures for the previous year have been recasted/regrouped wherever necessary.

2. Contingent Liabilities not provided for include :

(i) LCs / Bank Guarantees / Corporate Guarantee issued for t 314.33 lacs (Previous Year t 331.38 lacs) in favour of West Bengal State Electricity Board & Himachal Pradesh State Electricity Board for power connection of Malda unit & Gurplah unit, Assistant Excise & Taxation Commissioner for VAT rebate, Commissioner of Customs / Jt. Director of Foreign Trade for the import of machinery under EPCG licence etc. The Company has given a Corporate Guarantee of Rs. 40 crores to Yes Bank Ltd for availing the Term Loan by its wholly owned subsidiary ‘M/s Sukhjit Mega Food Park & Infra Ltd.’ for setting up the Mega Food Park.

(ii) Central Excise Duty : Disputed Liabilities, not provided as expense in the accounts, comprise of Rs. 32.34 Crores. The amount mainly includes Rs. 28.93 Crores as disputed Central Excise Duty (excluding penalty and interest) demand raised by the Central Excise Department since 01/04/1997 alleging the sale of Maize Starch as that of Modified Starch. Since the matter is subjudice, the Department has continuously been issuing the show cause notices against the differential duty. However, pertinent to mention that the product has been repeatedly got tested by the Department from its Central Revenue Laboratory where it has been clearly held to be Maize Starch. So the demand is totally baseless and without any substance. The company has been manufacturing Maize Starch by following the standard Wet Milling Process for the last many decades and the product is sold and accepted by the market as Maize Starch, so the company does not foresee any liability to crystallize on this account. Other items related to a demand of Rs. 1.18 crores raised on sale made through the consignment agents of the Company which is pending before the Assistant Commissioner, Rs. 2.22 Crores wrongly levied for R&C measures by A.P. Northern Power Distribution Company Ltd., Nizamabad against exemption enjoyed by the unit, the matter is pending before the Hon’ble High Court of Andhra Pradesh and balance on account of other Misc. service tax demands due to difference of opinion.

(iii) Estimated value of contracts remaining to be executed on capital account and not provided for (net of Advances) : Rs. 3.25 Crores (Previous year Rs. 2.75 Crores)

(iv) Export obligation pending to be fulfilled is US$ 4.90 lacs (Previous year US$ 11.32 lacs) in next 6 years under EPCG scheme of the Central Government against import of capital goods at concessional rates. The company has achieved an export turnover of US$ 25.21 lacs during the year under reference (Previous year US$ 10.94 lacs).

2. National saving certificates of Rs. 0.08 lacs (Previous year Rs. 0.08 lacs) are pledged to the Govt. authorities as security.

3. Short term loans & advances include Rs. 235.16 lacs (Previous year Rs. 316.42 lacs) due from the subsidiary companies.


Mar 31, 2017

1. Figures for the previous year have been recasted/regrouped wherever necessary.

2. Contingent Liabilities not provided for include :

3. LCs / Bank Guarantees issued for Rs. 331.38 lacs (Previous Year Rs. 350.33 lacs) in favour of West Bengal State Electricity Board & Himachal Pradesh State Electricity Board for power connection of Malda unit & Gurplah unit, Assistant Excise & Taxation Commissioner for VAT rebate, Commissioner of Customs / Jt. Director of Foreign Trade for the import of machinery under EPCG licence etc.

4. Central Excise Duty : Disputed Liabilities, not provided as expense in the accounts, comprise of Rs. 28.62 Crores. The amount mainly includes Rs.25.98 Crores as disputed Central Excise Duty (excluding penalty and interest) demand raised by the Central Excise Department since 01/04/1997 alleging the sale of Maize Starch as that of Modified Starch. Since the matter is subjudice, the Department has continuously been issuing the show cause notices against the differential duty. However, pertinent to mention that the product has been repeatedly got tested by the Department from its Central Revenue Laboratory where it has been clearly held to be Maize Starch. So the demand is totally baseless and without any substance. The company has been manufacturing Maize Starch by following the standard Wet Milling Process for the last many decades and the product is sold and accepted by the market as Maize Starch, so the company does not foresee any liability to crystallize on this account. Other items related to a demand of Rs. 1.31 crores raised on sale made through the consignment agents of the Company which is pending before the Assistant Commissioner, Rs. 1.25 Crores wrongly levied for R&C measures by A.P. Northern Power Distribution Company Ltd., Nizamabad against exemption enjoyed by the unit, the matter is pending before the Hon''ble High Court of Andhra Pradesh and balance on account of other Misc. service tax demands due to difference of opinion.

5. Estimated value of contracts remaining to be executed on capital account and not provided for (net of Advances) : Rs. 2.75 Crores (Previous year Rs. 3.00 Crores)

6. Export obligation pending to be fulfilled is US$ 11.32 lacs (Previous year US$ 8.61 lacs) in next 6 years under EPCG scheme of the Central Government against import of capital goods at concessional rates. The company has achieved an export turnover of US$ 10.94 lacs during the year under reference (Previous year US$ 13.00 lacs).

7. National saving certificates of Rs. 0.08 lacs (Previous year Rs. 0.08 lacs) are pledged to the Govt. authorities as security.

8. Short term loans & advances include Rs. 316.42 lacs (Previous year Rs. 283.34 lacs) due from the subsidiary companies.


Mar 31, 2016

-Note: This form of proxy in order to be effected should be duly completed and deposited at the Registered Office of the Company, not less than 48 hours before the commencement of the Meeting.


Mar 31, 2014

1. Figures for the previous year have been recasted/regrouped wherever necessary.

2. Contingent Liabilities not provided for include :

(i) LCs/ Bank Guarantees issued for Rs. 251.51 lacs (Prev. Year Rs. 285.14 lacs) in favour of West Bengal State Electricity Board & Himachal Pradesh State Electricity Board for power connection of Malda unit & Gurplah unit. Commissioner of Customs / Jt. Director of Foreign Trade for import of machinery under EPCG licence etc.

(ii) Central Excise Duty : Disputed liabilities, not provided as expenses in the accounts, comprise Rs. 22.15 crores mainly Rs. 20.90 crores on account of disputed Central Excise Duty on Maize Starch excluding penalty and interest since 01/04/1997 alleging the sale of Maize Starch as that of Modified Starch. The product has been repeatedly got tested by the Department from its Central Revenue Laboratory where it has been clearly held to be Maize Starch. So the demand is totally baseless and without any substance and the matter is subjudice. The Company has been manufacturing Maize Starch by following the standard Wet Milling Process for the last many decades and the product is sold and accepted by the market as Maize Starch, so the company does not foresee any liability to crystallize on this account. Other items include Show Cause Notice concerning demand of Rs. 1.19 crores on exempted goods and the case is pending before The Commissioner, Central Excise. In other cases, for Rs. 0.06 crores, the decisions are in favour of the Company and the department is in appeal before the Tribunal.

(iii) Estimated value of contracts remaining to be executed on capital account and not provided for (net of advances) : Rs. 5.50 crores (Prev. year Rs. 6.75 crores)

(iv) Export obligation pending to be fulfiled is US$ 0.21 lacs (Prev. year US$ 19.08 lacs) in next 6 years under EPCG scheme of the Central Government against import of capital goods at concessional rates. The company has achieved an export turnover of US$ 15.89 lacs during the year under reference (Prev. Year US$ 13.73 lacs).

3. National Saving Certificates of Rs. 0.08 lacs (Prev. year Rs. 0.08 lacs) are pledged to the Govt, authorities as security.

4. Short term loans & advances includeRs. 293.30 lacs (Prev. yearRs. 658.12 lacs) due from the subsidiary companies.


Mar 31, 2013

1. Figures for the previous year have been recasted/regrouped wherever necessary.

2. Contingent Liabilities not provided for include :

(i) LCs / Bank Guarantees issued for Rs. 285.14 lacs (Prev. Year Rs. 173.04 lacs) in favour of West Bengal State Electricity Board & Himachal Pradesh State Electricity Board for power connection of Malda unit & Gurplah unit. Commissioner of Customs / Jt. Director of Foreign Trade for import of machinery under EPCG licence etc.

(ii) Central Excise Duty : Disputed liabilities, not provided as expenses in the accounts, comprise Rs. 20.38 crores mainly Rs. 19.12 crores on account of disputed Central Excise Duty excluding penalty and interest. The amount is on account of demand raised by Central Excise Department since 01/04/1997 alleging the sale of Maize Starch as that of Modified Starch. The product has been repeatedly got tested by the Department from its Central Revenue Laboratory where it has been clearly held to be Maize Starch. So the demand is totally baseless and without any substance and the matter is subjudice. The Company has been manufacturing Maize Starch by following the standard Wet Milling Process for the last many decades and the product is sold and accepted by the market as Maize Starch, so the company does not foresee any liability to crystallize on this account. Other items include Show Cause Notice concerning demand of Rs. 1.19 crores on exempted goods and the case is pending before The Commissioner, Central Excise. In other cases, the decisions are in favour of the Company and the department is in appeal before the Tribunal.

(iii) Estimated value of contracts remaining to be executed on capital account and not provided for (net of advances) : Rs. 6.75 crores (Prev. year Rs. 9.38 crores)

(iv) Export obligation pending to be fulfiled is US$ 19.08 lacs (Prev. year US$ 32.81 lacs) in next 7 years under EPCG scheme of the Central Government against import of capital goods at concessional rates. The company has achieved an export turnover of US$ 13.73 lacs during the year under reference (Prev. Year US$ 14.36 lacs).

3. National Saving Certificates of Rs. 0.08 lacs (Prev. year Rs. 0.08 lacs) are pledged to the Govt, authorities as security.

4. Short term loans & advances include Rs. 658.12 lacs (Prev. year Rs. 817.95 lacs) due from the subsidiary companies and Long term loans & advances include Nil (Previous year Rs. 107 lacs) as fixed deposit with subsidiarie(s).

5. Related Party Disclosures :

(a) List of related parties / Relationships :

SUBSIDIARY COMPANIES

(i) The Vijoy Steel & General Mills Co. Ltd. Subsidiary

(ii) Sukhjit Finance Ltd. Subsidiary

(iii) Scott Industries Ltd. Subsidiary

KEY MANAGEMENT PERSONNEL (i) Mr. I.K. Sardana (ii) Mr. K.K. Sardana (iii) Mr. S.M. Jindal


Mar 31, 2012

(*) There was no amount outstanding for more than 45 days to any of the above Micro, Small & Medium Enterprise. Since, No amount was overdue to these enterprises, so no interest was payable/paid during the year (Prev. year NIL)

(**) Include Rs. 189.46 lacs (Prev. Year Rs. 262.04 lacs) as advance from Sundry Customers for supply of Goods.

Aggregate Amount of Unquoted Investments - Rs. 825.06 lacs (P.Y. Rs. 825.16) Aggregate Amount of Quoted Investements - Rs. 200 lacs (P.Y. 100) Market Value of Quoted Investments - Rs. 204.12 lacs (P.Y. Rs. 102.83 lacs)

Aggregate Amount of Unquoted Investments - Rs. 374.84 lacs (P.Y. Rs. 924 lacs) Aggregate Amount of Quoted Investements - Rs. 688.08 lacs (P.Y. Rs. 350 lacs) Market Value of Quoted Investments - Rs. 711.27 lacs (P.Y. Rs. 356.76 lacs)

(*) Include Rs. 157.20 lacs (P.Y. Rs. 48.89 lacs) as Unutilised Cenvat on Capital Goods & Rs. 54.62 lacs (P.Y. Rs. 57.39 lacs) as Advances to Sundry Suppliers for purchase of material(s).

1. Figures for the previous year have been recasted/regrouped wherever necessary.

2. Contingent Liabilities not provided for include :

(i) Bank Guarantees issued for Rs. 173.04 lacs (Prev. Year Rs. 126.30 lacs) in favour of West Bengal State Electricity Board & Himachal Pradesh State Electricity Board for power connection of Malda unit & Gurplah unit. Commissioner of Customs / Jt. Director of Foreign Trade for import of machinery under EPCG licence etc.

(ii) Central Excise Duty : Disputed liabilities not adjusted as expenses in the accounts include Rs. 18.80 crores (Prev. year Rs. 17.24 crores) on account of Central Excise Duty in dispute. The major item consists of Rs. 17.54 crores (Prev. year 17.06 crores) excluding penalty & interest on account of the demands raised by the Central Excise Department since 1.4.1997 against sale of maize starch disputing the classification thereof. The company has challenged the demand before the Hon'ble High Court which has since been stayed by the Hon'ble High Court and the matter is subjudice. Other items include Show Cause Notice concerning demand of Rs. 1.19 crores (Previous Year Nil) on exempted goods and the case is pending before The Commissioner, Central Excise. In other cases, the decisions are in favour of the Company and the department is in appeal before the Tribunal.

(iii) Estimated value of contracts remaining to be executed on capital account and not provided for (net of advances) : Rs. 937.62 lacs (Prev. year Rs. 962.91 lacs)

(iv) Export obligation pending to be fulfiled is US$ 32.81 lacs (Prev. year US$ 21.81 lacs) under the EPCG scheme of the Central Government against import of capital goods at concessional rates. The average export obligation to be maintained every year is US$ 3.42 lacs (Prev. year US$ 1.80 lacs). The company has achieved an export turnover of US$ 14.36 lacs during the year under reference (Prev. Year US$ 3.98 lacs).

3. National Saving Certificates of Rs. 0.08 lacs (Prev. year Rs. 0.08 lacs) are pledged to the Govt, authorities as security.

4. Short term loans & advances include Rs. 817.95 lacs (Prev. year Rs. 628.02 lacs) due from the subsidiary companies and Long term loans & advances include Rs. 107 lacs (Prev. year Rs. 107 lacs) as fixed deposit with subsidiary.


Mar 31, 2011

1. Figures for the previous year have been recasted/regrouped wherever necessary.

2. Contingent Liabilities not provided for include :

(i) Bank Guarantees issued for Rs. 126.30 lacs (Prev. Year Rs. 113.80 lacs) in favour of West Bengal State Electricity Board and Himachal Pradesh State Electricity Board for power connection of Malda Unit and Gurplah unit. Commissioner of Customs / Jt. Director of Foreign Trade for import of machinery under EPCG licence and Excise & Taxation Officer for sale tax subsidy of Gurplah unit.

(ii) Central Excise Duty : Disputed liabilities not adjusted as expenses in the accounts include Rs. 17.24 crores (Prev. year Rs. 15.93 crores) on account of Central Excise Duty in appeals. The major item consists of Rs. 17.06 crores (Prev. year 15.90 crores) excluding penalty & interest on account of the demands raised by the Central Excise Department since 1.4.1997 against sale of maize starch disputing the classification thereof. The company has challenged the demand before the Honble High Court which has since been stayed by the Honble High Courth and the matter is subjdice.

(iii) Estimated value of contracts remaining to be executed on capital account and not provided for (net of advances) : Rs. 962.91 lacs (Prev. year Rs. 50.31 lacs)

(iv) Export obligation pending to be fulfiled is US$ 21,80,796.71 (Prev. year US$ 76,203.20) under the EPCG scheme of the Central Government on account of custom duty saved against import of capital goods at concessional rates. The average export obligation to be maintained every year is U$ 1,80,471 (Prev. year Nil).

3. Buildings of the company at Malda and partly at Phagwara are built on a leased land.

4. National Saving Certificates of Rs. 7,750/- (Prev. year Rs. 7,750/-) are pledged to the Govt, authorities as security.

5. Loans and advances includes Rs. 735.02 lacs (Prev. year Rs. 645.11 lacs) due from the subsidiary companies.

6. Deffered tax has been provided in accordance with the Accounting Standard 22-Accounting for Taxes on Income issued by The Institute of Chartered Accountants of India.

7. An amount of Rs. 22.96 lacs had been due to Micro, Small and Medium Enterprises, as defined in the Micro.. Small and medium Enterprises Development Act, 2006 as at March 31, 2011 (Previous year Nil) and there was no outstanding for more than 45 days to those enterprises as on that date.

8. Related Party Disclosures :

(a) List of related parties / Relationships :

SUBSIDIARY COMPANIES

(i) The Vijoy Steel & General Mills Co. Ltd. : Subsidiary

(ii) Sukhjit Finance Ltd. : Subsidiary

(iii) Scott Industries Ltd. : Subsidiary

KEY MANAGEMENT PERSONNEL

(i) Mr. I.K. Sardana

(ii) Mr. K.K. Sardana

(iii) Mr. S.M. Jindal


Mar 31, 2010

1. Figures for the previous year have been recasted/regrouped wherever necessary.

2. Contingent Liabilities not provided for include :

(i) Bank Guarantees issued for Rs. 113.80 lacs (Prev. Year Rs. 93.32 lacs) in favour of West Bengal State Electricity Board for power connection of Malda Unit, Himachal Pradesh State Electricity Board for power connection of Gurplah unit. Commissioner of Customs / Jt. Director of Foreign Trade for import of machinery under EPCG licence and Excise & Taxation Officer for sale tax subsidy of Gurplah unit.

(ii) Central Excise Duty : Disputed liabilities not adjusted as expenses in the accounts include Rs. 15.93 crores (Prev. year Rs. 14.85 crores) on account of Central Excise Duty in appeals. The major item consists of Rs. 15.90 crores (Prev. year 14.80 crores) excluding penalty & interest on account of the demands raised by the Central Excise Department since 1.4.1997 against sale of maize starch disputing the classification thereof. The company has challenged the demand before the Honble High Court which has since been stayed by the Honble High Courth and the matter is subjdice.

(iii) Estimated value of contracts remaining to be executed on capital account and not provided for (net of advances): Rs. 50.31 lacs (Prev. year Rs. 289 lacs)

(iv) Export obligation pending to be fulfiled is US$ 76,203.20 (Prev. year US$ 66,332) under the EPCG scheme of the Central Government on account of custom duty saved on import of capital goods at concessional rates.

3. Buildings of the company at Malda and partly at Phagwara are built on leased land.

4. National Saving Certificates of Rs. 7,750/- (Prev. year Rs. 7,750/-) are pledged to the Govt, authorities as security.

5. Loans and advances includes Rs. 645.11 lacs (Prev. year Rs. 575.57 lacs) due from the subsidiary companies.

6. Deffered tax has been provided in accordance with the Accounting Standard 22-Accounting for Taxes on Income issued by The Institute of Chartered Accountants of India.

7. Based on information available with the Company, there are no dues to Micro, Small and Medium Enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006 and there are no dues to Small scale Industrial Undertakings for more than 30 days as at March 31, 2010.

Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X