| 1) (a) Term loans availed from IDBI Bank Ltd are payable in 25 monthly
installments commenced from July 1, 2014 and ending on July 1, 2016 and
carrying interest rate BBR 650 basic points.
(b) The term loans are secured by way of first charge on the entire
fixed assets of the Company, both present and future, ranking pari
passu with the charges already created in favour of existing term
lender and second charge on all the current assets of the Company, both
present and future, and further secured by the guarantees of the
Promoter Directors, namely Y S Chowdary and G Srinivasa Raju, in their
personal capacities and corporate guarantee of M/s Sujana Metal
Products Ltd.
(c) The term loans installments which are falling due within next 12
months are classified as current liability.
2) Vehicle loans availed from various banks and secured by way of
charge of respective vehicles financed. Vehicles loan installments
which are fallen due within 12 months are classified as current
liability. There are no overdues;
3) Un-secured loans represents loans availed in the year 2011-12 from
the Tejdeep Engineering Enterprises Pvt. Ltd and Tejeswini Engineering
Pvt. Ltd to meet the working capital requirements.
4. Depreciation
Depreciation is provided on Straight Line Basis applying the rates
specified in the Schedule II to the Companies Act, 2013. Depreciation
on the revalued fixed assets charged to revaluation reserve.
5. Dues from Directors : Nil
6. Key Managerial Personnel
Shri G. Srinivasa Raju Managing Director
Shri B Manoharan Chief Financial Officer
Shri M Naresh Kumar Company Secretary
7. The discount rate of 7.80% per annum has been used as at 31-03-2015
for the purposes of the AS15 (Revised 2005) calculations. It has been
chosen by reference to market yields on government bonds as at the same
date.
a) In the case of Gratuity, the expected rate of return was assumed to
be 9% per annum since the fund has earned interest at this rate as per
the certificate issued by Insurance Companies.
b) In the case of Leave Encashment, the expected rate of return assumed
to be 0% since there is no fund except provision.
8. Salary increase rate of 6% per annum has been assumed keeping in
view of the inflation rate on long term basis.
9. Segment Reporting
The Company has identified three reportable segments viz. LEC Division,
Appliance Division, Steel Division. Segments have been identified and
reported taking into account the nature of products and services, the
differing risks and returns and the internal business reporting
systems. The accounting policies adopted for segment reporting are in
line with the accounting policy of the Company with following
additional policies for segment reporting.
a) Revenue and expenses have been identified to a segment on the basis
of relationship to operating activities of the segment. Revenue and
expenses which relate to enterprise as a whole and are not allocable to
a segment on reasonable basis have been disclosed as "Un-allocable".
b) Segment assets and liabilities represent net assets and liabilities
in respective segments. Investments, tax related assets and other
assets and liabilities that cannot be allocated to a segment on
reasonable basis have been disclosed as "Un-allocable".
10. Secondary Segments Information : Geographical
Revenue from geographical segment is based on location of its customers
and total carrying amount of assets. The total cost incurred during the
year to acquire fixed assets is based on geographical locations of the
assets.
11. Balances under Sundry Debtors, Sundry creditors and Loans &
Advances and other receivables and payables include long outstanding
amounts are subject to confirmations to be received from most of the
parties.
12. The Company has not received information / memorandum as required
to be filed by the supplier with the notified authority under the MSMED
Act, 2006 claiming their status as Micro or Small or Medium
Enterprises. Hence, disclosure relating to amounts unpaid as at the
yearend together with interest paid or payable under this act has not
been given.
13. Contingent Liabilities
Particulars 2014-15 2013-14
1. Bank Guarantees
a) Bank of Baroda: Guarantee executed
in favour of Commissioner
Central Excise Rs. 8.00 Rs. 8.00
lakhs lakhs
b) Corporate Guarantee provided by
the Company to Mauritius Commercial
Bank, Mauritius, US $ 20.00 US $ 20.00
on behalf of Hestia Holdings Millions Millions
Ltd, Mauritius, wholly owned
subsidiary to SUIL.#
c) Corporate Guarantee provided
by the Company to Standard
Bank (Mauritius) Limited on US $ 23.00 US $ 23.00
behalf of Selene Holdings Ltd, Millions Millions
Mauritius, step down subsidiary
to SUIL.#
d) Corporate Guarantee provided
by the Company to Afrasia Bank
Limited, Mauritius, on US $ 2.50 US $ 2.50
behalf of Selene Holdings Ltd, Millions Millions
Mauritius, step down subsidiary
to SUIL
e) Corporate Guarantee provided by
the Company to Intra Asia Trading
Pte. Ltd, Singapore, US $ 10.00 US $ 10.00
on behalf of Nuance Holdings Ltd, Millions Millions
Hong Kong, wholly owned
subsidiary to SUIL
f) Corporate Guarantee provided by
the Company to Intra Asia Trading
Pte. Ltd, Singapore, US $ 3.00 US $ 3.00
on behalf of Pac Ventures Pte. Millions Millions
Ltd, Singapore, wholly owned
subsidiary to SUIL
g) Corporate Guarantee provided
by the Company to Rhodium
Resources Pte. Ltd, Singapore, US $ 17.55 US $ 8.17
on behalf of Pac Ventures Pte. Millions Millions
Ltd, Singapore, wholly owned
subsidiary to SUIL
2. Standby Letter of Credit (SBLC)
a) Indian Overseas Bank: SBLC issued
in favour of Apies Ventures US $ 12.20 US $ 12.20
Pte. Ltd Millions Millions
b) Indian Overseas Bank: SBLC
issued in favour of United
Industrial Group (Asia) Ltd US $ 10.03 US $ 10.03
Millions Millions
c) Oriental Bank of Commerce:
SBLC issued in favour of Pan
Arabian International FZE. Nil US $ 9.00
However the said SBLC stands Millions
discharged in month of May 2014.
d) Exim Bank of India: SBLC issued
in favour of Exim Bank of India,
London Branch, on behalf US $ 13.00 US $ 13.00
of Pac ventures Pte. Ltd, Millions Millions
Singapore, wholly owned
subsidiary to SUIL
3. Claims against the Company not
acknowledged as debt
a) Sales Tax Rs. 64697.57lakhs Rs. 70064.41 lakhs
b) Customs & Central Excise Rs. 721.75 lakhs Rs. 721.75 lakhs
c) Income Tax Rs. 2648.45 lakhs Rs. 3585.56 lakhs
d) Workmen Compensation Rs.4.65 lakhs Rs.4.65 lakhs
* Company petition (C.P. 174/2013) filed by Standard Bank (Mauritius)
Limited (SBML) against the Company u/s 433 of the Companies Act, 1956,
in connection with the corporate guarantee furnished by the Company on
behalf of its step down subsidiary Selene Holdings Ltd, Mauritius and
Company petition (C.P 169/2013) filed by Mauritius Commercial Bank
(MCB) against the Company u/s 433 of the Companies Act, 1956, in
connection with the corporate guarantee furnished by the Company on
behalf of its subsidiary Hestia Holdings Ltd, Mauritius was admitted by
the High Court of Judicature of Hyderabad for the State of Telangana
and the State of Andhra Pradesh, (High Court). However the Company has
filed appeals before the appropriate judicial authority and also
exploring the process of settlement.
Except the above, there are no significant and material orders passed
by the regulators or courts or tribunals impacting the going concern
status of the Company and the Company's operations in future.
14. Previous year's figures have been regrouped and reclassified
wherever necessary for comparability and to conform to current period's
classification and comparison.
15. Figures have been rounded off to nearest rupee.
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