(q) Provision, Contingent Liabilities and Contingent Assets
Provisions are recognized when there is a present obligation as a result of past events and it is probable
that there will be an outflow of resources. Contingent liabilities are not recognised but disclosed in the
notes.
(r ) Segment Reporting
As per Accounting Standard 17 on Segment reporting issued by the institute of Chartered Accountants of
India, the company operates under two reportable business segments. The accounting principles were
consistently used in preparation of financial statements and are also applied to record income and
expenditure in individual segments. There is no inter-segment transaction during the year. The Primary
and Secondary business segments of the Company consist of Plastic product and Water Coconut.
(s) Earnings per Share (EPS)
Basic and diluted earnings per share are computed in accordance with Accounting Standard 20 "Earnings
per Share".
Basic earnings per share is calculated by dividing the net profit or loss after tax for the year attributable to
equity shareholders by the weighted average number of equity shares outstanding during the year.
Diluted earnings per share are computed using the weighted average number of equity shares and dilutive
potential equity shares outstanding during the year except where the results are anti-dilutive.
(t) Cash and Cash Equivalents
The Company considers all highly liquid financial instruments which are readily convertible in to cash and
have original maturities of three months or less from the date of purchase, to be cash equivalents.
3.4 Note on Issued, Subscribed and Paid up Equity Share Capital:
(a) During the year 2022-23, the company issued 50,64,705 equity shares of Rs.10/- each as Bonus Shares in
the ratio of 102:100.
(b) During last 5 years the company has not bought back any equity shares.
3.5 Terms/rights attached to equity shares
The company has one class of equity shares having a par value of Rs.10/- per share. Each shareholder is eligible for one
vote per share held. The dividend if any 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.
(a) Term Loan from Standard Chartered Bank is secured by way of first charge on entire plant and machinery except on the
plant & machinery procured through finance from Tata Capital Financial Services Ltd. and other fixed assets and
second charge on current assets of the Company. The Term Loan carries interest @ MIBOR 3.29% at monthly rest and
principal is repayable in 45 equal monthly installments. Amount payable in next 12 months amounting to Rs. 143.15
laths has been shown under current maturity of long term debts. The Charge is created under pari-passu arrangement,
where Standard Chartered Bank and Axis Bank shares Security in proportion to their sanctioned limit. The plant and
machinery against which loan is secured has been destroyed by fire which broke out at the factory premises of the
company on 29.07.2023. The loan has been considered secured since the assets are fully covered against the insurance
policy taken by the comapany. Please also refer note 34 to the financial statements for detailed information.
(b) Term Loan from Axis Bank Limited is an ECLGS Loan (Emergency Credit Line Guarantee Scheme) and is secured by
way of first charge on entire plant & machinery except plant & machinery procured through finance from Tata Capital
Financial Services Limited and other fixed assets and second charge on current assets of the Company. The ECLGS Loan
carries interest @ Repo 3.50% at monthly rest. Principal amount is repayable in 60 monthly installment after moratorium
period of 24 months begining from September, 2024 i.e. in 35 monthly equal instalments of Rs. 7,08,333/- and one
instalment of Rs. 7,08,345/- by the year 2027-28. Amount payable in financial year 2025-26 of Rs. 92.08 lakhs has been
shown under current maturity of long term debts. The Charge is created under pari-passu arrangement, where Standard
Chartered Bank and Axis Bank shares Security in proportion to their sanctioned limit. The plant and machinery against
which loan is secured has been destroyed by fire which broke out at the factory premises of the company on 29.07.2023.
The loan has been considered secured since the assets are fully covered against the insurance policy taken by the
comapany. Please also refer note 34 to the financial statements for detailed information.
7.1 Working Capital loan from Standard Chartered Bank is primarily secured against sundry debtors and stocks and
collaterally secured against immovable property owned by the company. The loan carries interest @ Repo Rate 4.50%.
The loan is also secured by personal guarantee of the directors. The Charge is created under pari-passu arrangement,
where Standard Chartered Bank and Axis Bank shares Security in proportion to their sanctioned limit. The stocks
against which loan is secured has been destroyed by fire which broke out at the factory premises of the company on
29.07.2023. The loan has been considered secured since the stock is fully covered against the insurance policy taken by
the comapany. Please also refer note 34 to the financial statements for detailed information.
7.2 Working Capital loan from Axis Bank Limited is primarily secured against sundry debtors and stocks and collaterally
secured against immovable property owned by the company. The loan carries interest @ Repo Rate 3.30%. The Loan is
also secured by personal guarantee of the directors. The Charge is created under pari-passu arrangement, where
Standard Chartered Bank and Axis Bank shares Security in proportion to their sanctioned limit. The stocks against
which loan is secured has been destroyed by fire which broke out at the factory premises of the company on 29.07.2023.
The loan has been considered secured since the stock is fully covered against the insurance policy taken by the
comapany. Please also refer note 34 to the financial statements for detailed information.
7.3 Working Capital loan from Tata Capital Financial Services Ltd. carries floating interest @ 12.20%. Loan is secured against
all movable assets/machineries funded by Tata Capital Financial Services Ltd. Loan is further secured against
hypothecation of Investments in mutual funds to the extent of Rs.36.00 lakhs and personal guarantee of the directors of
the company. The stocks and machineries against which loan is secured has been destroyed by fire which broke out at
the factory premises of the company on 29.07.2023. The loan has been considered secured since the assets are fully
covered against the insurance policy taken by the comapany. Please also refer note 34 to the financial statements for
detailed information.
30 Capital and Other Commitments
Estimated amount of contracts remaining to be executed on capital account net of advances is Rs. Nil (Previous
year Rs. Nil)
31 Contingent Liabilities
Contingent liabilities not provided for Rs. NIL (Previous Year Rs. NIL).
32 A massive fire broke out at the factory premises of the company situated at Champahati Station Road, P.S.
Baruipur, Srirampore, 24 Parganas South, PIN - 700145, West Bengal on 29.07.2023 which has destroyed the
entire factory of the company. Company's assets consisting of stock and property, plant and equipment were
burnt in fire. This matter was immediately informed by the Company to Baruipur Fire Station, Baruipur Police
Station and Insurance Company. The information about the incident was given to the National Stock Excange of
India Limited on 30.07.2023. The company estimated the loss of stock of Rs.2381.60 lakhs and loss of property,
plant and equipment of Rs.2120.60 lakhs excluding the salvage value of materials of Stock of Rs.5.07 lakhs and
Property, Plant and Equipment of Rs.119.78 lakhs lying in hand due to fire as at the end of the year. This amount
of loss has been recognised as an exceptional item and was charged to profit and loss account for the year ended
on 31.03.2025. The company has lodged the claim with insurance company namely The Oriental Insurance
Company Limited against the policy number 311400/11/2023/715 dated 13.03.2023 for the loss suffered by the
company. The company's insurance policy is fully covered against the loss of stock and property, plant and
equipment by fire. The amount of loss suffered due to fire is yet to be assessed by the insurance company and
during the year ended the insurance company has released Rs 1600.00 Lakhs as "on account" payment for the
claim lodged by the company.
33 The Accumulated losses of the company has exceeded the share capital and net worth has been fully eroded. As
of that date, the Company's liabilities has exceeded its total assets by Rs.1,956.12 lakhs. The management of the
company has the plans and projects in hand to set up new plant in the state of Odisha and has got the
provisional land allotment letter from Odisha State Government for setting up of new project. The managment
expects to get the plant commissioned within a period of 13 months from the date of commencement of the
project and this situation is dependent on the full realisation of insurance claim. Looking to the projects in hand,
future cash flow projections and pending full realisation of insurance claim from the insurance company, the
accounts have been prepared under going concern basis.
34 The company has given a detailed intimation of fire which broke out at the factory premises of the company on
29.07.2023 to the bankers of the Company. Appropriate disclosure was being given in the monthly stock
statement given to bank containing the Insurance Claim Receivable of Rs. 3000.00 lakhs for which the stock
insurance policy was taken by the Company. Further, the company has been regular in serving the principal and
interest of the term loans during the year except in one case, where Company defaulted in payment of principal
of Rs.15.91 lakhs and interest of Rs. 1.13 Lakhs which was due for payment on 25th March, 2025. The insurance
policy "Standard Fire & Special Perils Policy Schedule" taken by the company from The Oriental Insurance
Company Limited is fully covered against the loss sufferd by the company and included agreed bank clause and
contains the name of two bankers of the Company namely Standard Chartered Bank and Axis Bank.
Accordingly, insurance claim receivable will be credited to these bank accounts as per agreed terms and
conditions of the policy. In view of the above loan is fully secured though the securities against which loan was
obtained has been destroyed by fire.
35 During the period under audit the management of the company has decided to opt for the New Tax regime u/ s
115BAA of The Income Tax Act, 1961. In view thereof the MAT Credit entitlement has been charged to Profit &
Loss Account under "Tax Expenses"
36 Advances receoverable in cash or kind includes Rs.77.63 lakhs (previous year Rs.77.63 lakhs) (excluding GST of
Rs.13.97 lakhs) which has been deducted by South Indian Bank as pre-closure charges in the financial year 2020¬
21. The Compnay had disputed the matter and applied to the Bank Ombudsman who resolved the matter in
favour of bank without stating any reasons. Accordingly a writ perition has been filed by the company on 25th
March, 2022 before the Hon'ble Calcultta High Court bearing writ petition application no. W.P.A. No. 5564 of
2022, this has been further substituted by application no W.P.A. 7080 of 2025 dated 19th May, 2025 and the
matter is pending before Hon'ble Calcutta High Court. The management is hopeful of the realisation of the
above deduction and therefore no adjustment has been made in the books of accounts.
(i) Borrowing secured against current assets
The Company has borrowings from banks on the basis of security of current assets. The quarterly
returns/statements of current assets filed by the Company with Banks for borrowings are in agreement with
the books of accounts. except in the cases of statements furnished for the quarters ended June 2024, September,
2024 December, 2024 and March, 2025 where statements contained the amount of Insurance Claim Receivable
of the sum of Rs. 3000.00 lakhs, whereas the amount of claim was not ascertained by the insurance company.
(ii) Wilful Defaulter
The Company has not been declared wilful defaulter by any bank of financial institution or any other lender.
(iii) Relationship with struck off companies
The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies
Act, 1956.
(iv) Compliance with number of layers of companies
There is no non-compliance with regard to the number of layers of companies prescribed under clause (87) of
section 2 of the Act read with Companies (Registration on number of Layers) Rules, 2017.
(v) Compliance with approved scheme(s) of arrangements
The Company has not eneterd into any scheme of arrangement which has an accounting impact on current or
previous financial year.
(vi) Utilisation of borrowed funds and share premium
(I) The Company has not advanced or loaned or invested funds (either from borrowed funds or share premium
or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entity
("Intermediaries") with the understanding (whether recorded in writing or otherwise) that the Intermediary
shall:
a) directly or indirectly lend or invest in other person or entity identified in any manner whatsoever by or on
behalf of the company ("Ultimate Beneficiaries") or
b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(II) The Company has not received any fund from any other person(s) or entity(ies), including foreign entity
("Funding Parties") with the understanding (whether recorded in writing or otherwise) that the Company
shall:
a) directly or indirectly lend or invest in other person or entity identified in any manner whatsoever by or on
behalf of the Funding Parties ("Ultimate Beneficiaries") or
b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(vii) Undisclosed Income
The Company has not surrendered or disclosed any income during the current or previous year in the tax
assessments under the Income Tax Act, 1961 that has not been recorded in the books of accounts.
(viii) Details of Crypto Currency or Virtual Currency
The Company has not traded on invested in crypto currency or virtual currency during the current or
previous year.
(ix) Registration of charges or satifaction with Registrar of Companies
There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the
statutory period.
(x) Utilisation of borrowings availed from banks
The borrowings obtained by the company from banks have been applied for the purposes for which such
loans were taken.
(xi) Details of Benami Property held
The Company does not have any Benami Property, where any proceeding has been initiated or pending
against the Company under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the Rules made
thereunder.
(xii) Corporate Social Responsibility
The Company is not covered under section 135 of the Companies Act, 2013 and the rules made thereunder.
Reasons for variance exceeding 25% in the above mentioned financial ratios:
(@) variance in ratios is due to the repayment in short term boorwings availed form the banks.
(A) variance in ratios is due to the reason that the company was inoperative throughout the year since the
company's production was discontinued because of fire at the factory premises of the company on 29.07.2023
which destroyed the entire property, plant and equipment and stocks of the company.
43 In keeping with the Company's gratuity scheme employees are entitled to gratuity benefit on retirement
/ death/ incapacitation/ termination. The present value of obligation is determined based on actuarial
valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to
additional unit of employee benefit entitlement and measures each unit seperately to bulit up the final
obligation. Following are the further particulars with respect to gratuity liability which is unfunded :
45 The Company has done an assessment to identify Core Investment Company (CIC) [ including CIC's in the
Group ] as per the necessary guidelines of Reserve Bank of India ( including Core Investment Companies
(Reserve Bank) Directions, 2016). There are no Companies identified as CIC's at Group level.
46 There are no amounts which were required to be transferred to the Investor Education and Protection Fund by
the Company.
47 Figures of current year are not comparable with previous year, since the company has been inoperative during
the current year and had operated only for a part of the previous year due to the fire at the factory premises of
the company which led to dis-continuance of production process and business operation of the Company.
48 Previous years figures have been regrouped/rearranged wherever considered necessary.
49 Last Year figures were audited by a firm of Chartered Accountants other than M/s Seksaria Tibrewal & Co.
In terms of our report of even date attached
For Seksaria Tibrewal & Co. For and on behalf of the Board of Directors of
Chartered Accountants SMVD Poly Pack Limited
Firm Registration. No: 329660E
Sd/- Sd/-
Sd/- Pramod Kumar Agarwal Sangita Agarwal
(Harsh Seksaria) Chairman & Managing Director Director
Partner DIN-00324999 DIN-02860390
Membership No: 300249
Place: Kolkata Sd/- Sd/- Sd/-
Date: 30th May, 2025 Nirmal Parakh Shikha Agarwal Pawan Kumar Agarwal
Chief Financial Officer Company Secretary Director
DIN-00325033
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