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
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 :
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
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
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.
a] Prior period adjustments include expenses Rs. 8.09 Lacs, (Previous
year NIL) and income Rs. NIL (Previous year Rs. 6.63 Lacs).
Trade Receivables/ Trade payables balances are subject to confirmation.
Previous year''s figures have been reworked, regrouped, rearranged and
reclassified, wherever necessary, consequent to Revised Schedule VI
under the Companies Act, 1956.