| 1. Corporate Information
Shentracon Chemicals Limited ('the Company') was incorporated on July
14, 1993 under the Companies Act, 1956. The Company's equity shares are
Listed at BSE Limited, Calcutta Stock Exchange Limited and Ahmedabad
Stock Exchange Limited.
2. Share holders have equal rights: Each Share holder is entitled to
one vote per share.
3. There had been no allotment of shares either by way of Bonus
allotment or allotment for consideration other than cash during last 5
years. There is no scheme of preference share allotment to employees
under ESOP.
4. DISCLOSURE AND OTHER NOTES ON ACCOUNTS
i) There is no production in the chemical plant since 18.09.1996 and
the work suspension has been notified and declared since 10th October
1999. The management has resolved to close the chemical plant during
the year 2010-11. Company have prepare there accounts under going
concern basis. The managnment seriously considering revival of the
company with many alternate business plans including enhancement of net
worth. During the year the company has started the business of hiring
out its fixed assets to generate income therefrom.
ii) The accounts have been prepared on the basis of a going concern and
hence, erosion/diminution in values, if any, as may be possible for a
closed chemical plant has not been considered.
iii) CONTINGENT LIABILITIES :
5. Electricity Bills for Minimum Guarantee off take which relates to
period before the date of closure and disputed by the Company is Rs.
21,60,000/-.
6. A recovery suit filed by a creditor Kesoram Rayon Limited has been
decreed ex-parte by city civil court for Rs. 433766/- on application
the court has stayed the decree and the matter is still subjudice.
Against this demand a sum of Rs. 200634/- is standing under creditors
in the books of the company.
7. Since the company has been running under loss the dividend
liabilities on account of 10% Cum. Redeemable Preference Shares from
the date of allotment on 28.6.95 & 31.03.06 and on 13.5% preference
share from the date of allotment i.e. on 31.12.1998, till the end of
the year has not been declared and paid.
8. The assets held for disposal under current assets include the
balances (net of disposal) transferred in earlier years from tangible
fixed assets (including capital work in progress) due to the closure of
chemical plant as mentioned in note no. 17(I) above. Being the items of
close chemical plant, its current realisable value is not asertainable.
However the same has been valued at cost and in view of the managnment,
its net realisable value is not lower than its cost.
9. As there is no production since 18.09.1996 and that the plant is
closed since 10.10.1999, the inventory has been shown in the accounts
as taken ,valued and certified by an independent valuer on 21.07.1998
in terms of their appointment by the State Bank of India (secured loan
creditor at that time). It is certified by the management that there
had been no movement in inventory after the date of verification by the
independent valuer. Being a Chemical plant erosion in potential value
is possible which will be taken care on its further evaluation.
10. Fixed Assets
a) In view of uneconomical condition and technical unavailability ,the
production in chemical plant was shut down since 18.09.1996.The Board
of Directors resolved to close the company's main business of chemicals
effective from 1st April 2010.The Directors also resolved to explore
other avenues and line of production or business by utilizing the
existing site of Factory, Land & Building. In view of the fact that the
existing chemical plant (with its all allied accessories) will not be
of any use in any other probable line of production , it was resolved
by the management in 2010-11 to dispose off the existing chemical Plant
& Machineries and Electrical appurtenant thereto on block basis, and
transfer the same from Fixed Assets to Current Assets, as the same are
now meant for dispose off.
b) Based on facts stated in (i) above ,Transfer of Plant & Machinery
and Electrical appurtenant from Fixed Assets to current Assets on block
basis has been done on the basis of Written Down Value or expected
realisable value whichever is lower in accordance with the guidelines
contained in Accounting Standard AS-10 of Institute of Chartered
Accountants of India. As per valuation report of an authorised valuer,
the realizable value is greater than Written Down Value in the Books as
on 1.04.2010, hence the management decided to transfer the same to
Current Assets at its Written Down Value on block basis following the
guidelines of AS-10.
11. Depreciation on existing Fixed Assets was been provided in the
earlier years on Straight line method at the rates specified in
Schedule xiv of The Companies Act ,1956. Consequent to the change
mandated by Companies Act, 2013, the depreciation on SLM basis has been
calculated on the basis of remaining usefull life as specified in
Schedule II of the Companies Act, 2013 after taking into account 5% of
the original cost as residual value had the company continued with the
previously prescribed rates of depreciation as per scheduel XIV of
Companies Act, 1956, charges for depreciation for the year ended 31st
March 2015 woule have been lower by Rs. 32252.00 for the assets held at
01st April 2014 with corresponding effect on net block and accumulated
depreciation of the company.
12. Provision for all known liabilities are adequate in the opinion of
the Management.
13. Related Party Disclosures pursuant to Accounting Standard AS-18:
a) List of related parties and relationship
Sr. Name of Related Parties Relationship
No.
1 Mr. Jagdish Prasad Sureka
2 Mr. Gobind Prasad Sureka Director's
3 Mr. Piyush Mondal
4 Mr. Tarun Mandal
5 Mr. Raj Kumar Sureka Relative of Director's
6 Prismo (India) Ltd.
Others: (Enterprise in which
7 Shentracon Holdings Pvt. Ltd. director's are substantial
8 Satya Leasing Co Ltd. interested)
9 Shentracon Finalease Pvt. Ltd.
14. During the year the company has paid Rs. 2818600.00 towards
retirement benefit in the nature of gratuity and compensation on its
settlement and the same is shown under the head employees benefit
expenses.
15. a) Since there was no production and/or dealing hence segment wise
disclosure is not applicable.
b) The deferred tax assets/liabilities and or its implication on
deferred tax arising on account of unabsorbed losses & depreciation has
not been accounted for on due principle of prudence and uncertainty of
future taxable profit.
16. Previous year's figures have been regrouped/reclassified wherever
necessary, to confirm to current year's classification/disclosure.
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