NOTE NO. 1: HISTORY:
Apt Packaging limited established in 1980 (earlier known as Anil
Chemicals and Industries Limited till 19.06.2008) engaged in
manufacturing of co extruded plastic tubes used for packaging. The
facility was set up in the Aurangabad, Maharashtra in the year 1996 and
a new unit has been put up in the state of Uttarakhand in the year
2010. The new unit is eligible for various incentives of excise, income
tax and other for a period of 10 years. The chemical division of the
Company was de-merged into a new Company in the year 2008.
NOTE NO. 2: SHARE CAPITAL
1) *25,00,000 paid up shares issued to promoters during the financial
year 2010-2011 at par are not transferable up to 25.10.2013
2) The Company has only one class of equity shares having a par value
of Rs. 10/- per share. Each equity share carries one vote and is
entitled to dividend that may be declared by the Board of Directors,
which is subject to the approval of the shareholders in the Annual
NOTE NO. 3: LONG TERM BORROWINGS
a) Primarily secured by hypothecation of some of the fixed assets of
the company situated at Aurangabad unit and is repayable in equated
monthly installments, due up to October 2013.
b) Primarily secured by hypothecation of one machine at Laksar unit of
the company and is repayable in equated monthly installments, due up to
c) Primarily secured by hypothecation of some of the fixed assets at
Laksar unit of the company and is repayable in equated monthly
installments, due up to August, 2015.
d) Primarily secured by hypothecation of some of the machines at
Laksar- unit of the company and is repayable in installment of Rs. 3
Lacs from April 2012 to June 2012 and of Rs. 7.80 Lacs from July 2012
to March 2016. Part disbursement of this loan is pending.
e) Primarily secured by hypothecation of some of the machines at Laksar
unit of the company and is repayable in equated monthly installments,
due up to December 2017. Part disbursement of this loan is pending.
All the five term loans from PNB as mentioned above as a, b, c, d & e
are personally guaranteed by chairman cum managing director and one
director of the company. All of these are collaterally secured by all
the fixed assets of the Company situated at Pharoia, Chikalthana and
Laksar plants. The loan as mentioned in a above carries interest at
BPLR of the bank which is presently at 14% p.a. and other term loans as
mentioned in b, c, d, e above carries the interest rate depending upon
the BPLR & base rate of the bank which presently works out from 16 to
f) Secured by hypothecation of the vehicles acquired by utilising the
said loan in the name of chairman cum managing director of the company
and is repayable in equated monthly installments, due upto October
2015, the loan carries the interest @ 7% p.a.
g) Secured by hypothecation of the vehicles acquired by utilising the
said loans in the name of chairman cum managing director of the company
and is repayable in equated monthly installments, due upto October
2013, the loan carries the interest @ 9 to 11 p.a.
h) Secured by hypothecation of the vehicles acquired by utilising the
said loans and is repayable in equated monthly installments, due upto
August 2013, the loan carries the interest @ 16 % p.a.
i) Secured by FLC issued by PNB and was repayable in equated quarterly
installments, due upto January 2012, without any interest.
The loan is in Euro currency
j) Secured against the machine purchased from the machine supplier and
is repayable up to the year 2012-2013 without any interest. The loan is
in CHF currency. Rs. 58.78 Lacs repayment is to be made during the year
2012-2013 from disbursement from the term loan as mentioned in d above
hence shown under long term liability
k) Repayable up to the year June 2014 without any interest. The loan
is in CHF currency. The amount of Rs. 126.19 shown as long term
liability includes Rs. 31.89 Lacs repayables during the year 2012-2013
which are to be financed from fresh disbursement from term loan as
mentioned in d above.
l) This is as per incentive scheme of government of Maharashtra for the
tube unit of the company situated at Pharola. The repayment of each
year of the deferred sales tax amount is to be made in five equal
installments in 11th to 15th year, without any interest.
m) Carry interest @ 9% to 15% p.a.
n) Carry interest @ 12% p.a.
o) Interest free.
p) Carry interest @ 9% p.a.
NOTE NO. 4: DEFERRED TAX LIABILITY
1) Cash credit, packing credit and working capital demand loan from
bank are secured by hypothecation of all tangible movable assets both
present and future including stock of raw materials, finished goods,
goods in process, stores and trade receivables etc and is further
secured by a second Charge on the fixed assets at Laksar, Pharola and
Chikalthana. The cash credit, packing credit post shipment credit and
inland letter of credit acceptance is repayable on demand and carries
interest rates © 11% to 16% p.a.
2) Outstanding foreign currency buyer''s credit loans are unsecured and
cany an interest rate ranging from libor plus 350 bps.
NOTE NO. 5: TRADE PAYABLES 31.03.2012 31.03.2011
There are no dues to any creditors constituting Suppliers within the
meaning of Section 2 (n) of the Micro, Small and Medium Enterprises
Development Act, 2006. The identification of Micro, Small and Medium
enterprises is based on the management''s knowledge of their status. The
Company has not received. any intimation from suppliers regarding their
status under The Micro, Small and Medium Enterprises Development Act,
NOTE NO. 6 EXTRA-ORDINARY ITEMS
1) During the year the company has sold fixed assets of the Emulsion
and WPC units situated at Nandrabad, Aurangabad and plant & machineries
as scrap of the PAN unit situated at Chikalthana, Aurangabad. The
operations of these units were suspended for more than 12 years. The
business activity pertains to these divisions were discontinued due to
obsolete macheneries and overall market conditions. The disposal of
assets is in compliance to sanctioned scheme dated 23.10.2007 ordered
by Hon''ble Board for Industrial and Financial Reconstruction. Therefore
this disposal does not affect the going concern status of company.
2) The profit of extraordinary nature as mentioned in the financial
statements of Rs. 130.12 is from these sales net of loss of Rs. 4.01
3) The provision for capital gain tax (income tax) on sale of business
assets has not been made in the books of accounts as the same is to be
set off from unabsorbed brought forward business losses and unabsorbed
depreciation as well as current business loss and depreciation. This
view is also upheld by the Hon''ble Delhi High Court in case of
Assistant Commissioner of Income Tax v/s Lavish Apartments Private
Limited and the management has relied on the same.
4) During the year depreciation of all above divisions is charged
amounting to Rs. 7.05 Lac (Rs. 8.07Lacs)
NOTE NO. 7: SEGMENT REPORTING
Broadly by all criteria the activities of the company falls in the
segments as detailed below.
Product base 1) Co-extruded Tube, 2) Garments
Customer base Domestic market/overseas market
Geographical Area of Operation Domestic market/overseas market
Geographical area of assets
location Maharashtra, Uttarakhand
NOTE NO. 8: As on 31.03.2012 as per the financial statement, the net
worth of the company has reduced to below 50% from the peak net worth
in preceding 4 years. The company is in process for complying with the
Board for Financial and industrial Reconstruction as per the provisions
of Section 23 of Sick Industrial Companies Act.
NOTE NO. 9: The provision for capital gain tax (income tax) on sale of
business assets has not been made in the books of accounts as the same
is to be set off from unabsorbed brought forward business losses and
unabsorbed depreciation as well as current business loss and
depreciation. This view is also upheld by the Hon''ble Delhi High Court
in case of Assistant Commissioner of Income Tax v/s Lavish Apartments
Private Limited and the management has relied on the same.
NOTE NO. 10: During the year the company has disposed off all of the
shares held in the erstwhile subsidiary company M/S Nawneet Machine
Manufacturing Company Private Limited at par and the company ceases to
be subsidiary. Therefore the consolidated balance sheet is not
prepared. Hence the previous year financials of M/S Nawneet Machine
Manufacturing Company Private Limited is as under:
NOTE NO. 11: CONTINGENT LIABILITIES:
a. Claims not acknowledged as debts are on account of a suit filed
against the company by M/s Food Fats and Fertilizers Ltd. on behalf of
Apte Organic Chemicals Pvt. Ltd. in Mumbai High Court for the recovery
of Rs. 2.67 Lacs (Rs. 2.67 Lacs). The company is contesting the same.
The BIFR have ordered for repayment subject to withdrawal of suit.
b. Guarantee given by the Company for sales tax deferment dues of the
resulting Company Machhar Industries Limited as per the sanctioned
scheme ordered by BIFR Rs. 399.36 Lacs (Rs. 399.36 Lacs).
c. Bonds executed by the company in favour of Commissioner, Central
Excise and Customs, Government of India for import of capital goods
under the Export Promotion Capital Goods Scheme of the Government of
India for import of capital goods Rs. 669.83Lacs (Rs. 609.84 Lacs),
for export obligations to that extent to be completed.
d. In respect of demand raised by Sales Tax authority, Aurangabad for
Rs. 1.52 lacs for the FY 2004-2005 on assessment for which the company
have made appropriate representation for withdrawal of the demand to
e. In respect of notices issued by Sales Tax Authority. Hardwar with
respect to various compliances for Rs. 1.61 Lacs
f. In respect of fiscal liabilities that may arise on account of
non-observance of provisions of various fiscal statues, Companies Act
and other related laws and interest chargeable on demands raised and
not paid if any, amount is not ascertainable.
g. Estimated amount of contract remaining to be executed net of
advances on capital account and not provided for Rs. 148.53 Lacs (Rs.
NOTE NO. 12: Certain statutory requirements and records are in the
process of their compilation/updation.
NOTE NO. 13: The outstanding balances of Debtors, Creditors and Loans &
Advances (taken and given), balances with various statutory/fiscal
authorities (assets & Liabilities) i.e. excise deposits/balances,
VAT/Sales Tax dues, TDS/TCS are subject to confirmation, reconciliation
and consequent adjustments, if any. The difference as may be noticed on
reconciliation will be duly accounted for on completion thereof. In the
opinion of the Management the ultimate difference will not be material.
NOTE NO. 14: EMPLOYEE BENEFITS
Defined Benefit Plans
The company has neither created fund nor contributed to Scheme framed
by the Insurance Company for the defined benefit plans for the
qualifying employees. The present value of the defined benefit
obligation and the related current service cost were measured using the
Projected Unit credit method with actuarial valuations being carried
out at each balance sheet date.