1 Corporate Information
Commercial Syn Bags Limited (the "Company") is a public limited company domiciled in India with its registered office located at 'Commercial House', 3-4 Jaora Compound, MYH Road, Indore [M.P.] The company was incorporated on 10th December, 1984. The company is listed on BSE SME Exchange. The company is the manufacturer and exporters of FIBC, Bulk Bags, Poly Tarpaulin, Woven Sacks/Bags, Box Bags, PP/HDPE Fabric, Liner and Flexible Packaging. The company has installed the solar power generating system at Village Galihara, Dharakhedi, Tehsil Sitamau and Dist Mandsaur for generation of electricity for captive consumption in its own manufacturing units. The company has undertaken trading of granules (DCA cum consignment stockiest) of ONGC Petro additions Limited (OPaL).
(f) Terms/rights attached to equity shares :
The company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.
(g) Bonus Shares
The company has allotted 64,69,050 fully paid up Equity Shares of face value of Rs.10/ each during the financial year 2015-2016 pursuant to the bonus issue approved by the shareholders at their Extraordinary General Meeting held on 15th March, 2016 in the ratio of 3 equity shares for every 1 Equity Share held on record date. The record date fixed by the Board of Directors for issue of Bonus Shares was 15th March, 2016. Except this the Company has not made any allottment of shares as Bonus Shares during the period of five years immediately preceding the date as at which the Balance Sheet is prepared.
Term loans from Bank of India (balance v 10,69,82,649) and working capital loan is secured by exclusive charge by way of hypothecation of entire stock of inventory, receivable, bills and other chargeable current assets of the company, both present and future, lying at business place at factory location or elsewhere and for cash credit SEZ Unit exclusive charge by way of hypothecation of entire stock of inventory, receivables, bills and other chargeable current assets of the Company, both present and future lying at business place at factory location or elsewhere. Also secured by first charge over fixed assets of the company including factory land and building situated at S-4/3, S-4/2 and S-4/3A Pithampur, Sector I, Dist. Dhar on unit No.I and also secured by first charge by way of hypothecation over (company's Unit - I) Plant and Machineries and other movable fixed assets of the company and also secured by exclusive charge by way of EQM over company's staff quarters situated at plot No. 40 to 45, Shalimar Residency, Mhow, Dist. Indore and exclusive charge by way of EQM over company's lease hold land (SEZ Unit) situated at Plot No. 15,16 and 17 Special Economic Zone, Pithampur, District Dhar (MP) and exclusive charge by way of EQM over company's factory building (SEZ Unit constructed on Plot No. 15, 16 and 17 Special Economic Zone, Pithampur, District Dhar (MP) and further secured by exclusive charge by way of hypothecation over company's SEZ Unit's Plant and Machineries proposed to be acquired by the company from Term Loan and exclusive charge by way of hypothecation over company's SEZ Unit's Furniture and Fixtures proposed to be acquired by the company from Term Loan and collaterally and exclusively secured by equitable mortgage of Block A and B of office premises situated at 3-4 Jaora Compound, Indore belonging to company and also collaterally secured by exclusive charge by way of EQM of leasehold plot no B-18 at Special Economic Zone, Phase-I, Pithampur, District Dhar (Indore) MP admeasuring 3825.70 square meter alloted by MP Audyogik Kendra Vikas Nigam (Indore) Limited (MPAKVN) to the company and colleterally secured by second charge over Fixed Assets of the company including Factory Land and Building situated at S-4/3, S-4/2 and S-4/3A, Pithampur, Sector - 1, District Dhar on Unit - I and exclusive second charge by way of hypothecation over (company's Unit - I) Plant and Machineries and other movable fixed assets of the company and also by exclusive second charge by way of EQM over company's staff quarters situated at Plot No. 40 to 45, Shalimar Residency, Mhow Dist Indore and exclusive charge by way of EQM over company's lease hold land (SEZ Unit) building and hypothecation on Plant and Machineries, Furniture and Fixtures situated at Plot No. 15, 16 and 17 Special Economic Zone, Pithampur Dist Dhar M.P. Term loans and working capital loans are also personally guaranteed by Shri Anil Choudhary (MD), Smt. Ranjana Choudhary, Director of the company, Shri Pradeep Kumar Agrawal, Shri Shambhu Dayal Garg and Shri Ashok Kumar Agrawal and Corporate Guarantee of Super Sack Private Limited.
Term loan from Bank of Baroda (balance Rs.4,35,97,074) and working capital is secured by exclusive first charge by way of equitable mortgage of leasehold factory land admeasuring about 2247.75 meters, situated at plot No. S-3/1, Sector 1 Industrial Area, Pithampur, Dist. Dhar Regd. A-1/1930 dated 17/09/09 standing in the name of company and hypothecation of entire machinery, electrical installation, furniture and fixtures, office equipments and other movable fixed assets of the company, situated at the above mentioned factories, present and future. It is further secured by exclusive first charge by way of equitable mortgage of leasehold factory land admeasuring about 929 sq mtrs & building thereon at Plot No. 309, Sector 1, Industrial Area, Pithampur, Dist. Dhar (M.P.) and Factory Building constructed thereon and standing in the name of the company and hypothecation of entire machineries, electrical installations, furniture & fixtures, office equipments and other movable fixed assets of the company, situated at the abovementioned factories present and future. The loan is further secured by Equitable Mortgage of the lease hold factory land admeasuring about 7,800 sq ft (724.91 sq m) and Building to be constructed thereon at Plot No. S-2/1, Sector - 1, Pithampur Dist Dhar and hypothecation of entire machineries, electric installations, furniture and fixtures, office equipments and other movable fixed assets of the Company, situated at the abovementioned factories, present and future. The loan is further secured by exclusive 1st Charge by way of hypothecation of entire machineries, electrical installtion, furniture and fixtures, office equipments and other movable fixed assets of the company situated at the above mentioned factories present and future. Exclusive 1st charge by way of hypothecation of entire machineries, electrical installations, furniture and fixtures, office equipments and other movable fixed assets of the company, situated at PH No. 36, village Galihara, Tehsil Sitamau, District Mandsaur present and future. The loan is further secured by exclusive 1st charge by way of hypothecation of entire raw materials, stock in process, stores and spares, packing materials, finished goods and book-debts of the company (Unit - II & Unit - III), both present and future. The term loan and working capital is guaranteed by Shri Anil Choudhary (MD), Smt. Ranjana Choudhary, Director of the company, Pradeep Kumar Agrawal and Ashok Kumar Agrawal and Corporate Guarantee of Super Sack Private Limited.
Bank of India Term Loan (Balance Rs.16,30,268) is secured by hypothecation of one Skoda Octavia car. The principal amount is repayable in 84 monthly installments of varying amounts from Rs.17,263 to Rs.34,667. Last installment is payable in Feb 2023. There is no continuing default in repayment of loan or interest.
Bank of India Term Loan (Balance Rs.2,18,247 ) is secured by hypothecation of one Maruti Omni Ambulance. The principal amount is repayable in 60 monthly installments of varying amounts from Rs.3,795 to Rs.6,212. Last installment is payable in August 2021. There is no continuing default in repayment of loan or interest.
Bank of India Term Loan (Balance Rs.3,45,152) is secured by hypothecation of one Mahindra Bolero Maxi Truck Plus. The principal amount is repayable in 84 monthly installments of varying amounts from Rs.3,436 to Rs.6,882. Last installment is payable in August 2023. There is no continuing default in repayment of loan or interest.
Bank of India Term Loan (Balance Rs.5,35,203 ) is secured by hypothecation of one Maruti Vitara Brezza car. The principal amount is repayable in 60 monthly installments of varying amounts from Rs.9,185 to Rs.14,487. Last installment is payable in November 2021. There is no continuing default in repayment of loan or interest.
There is no continuing default in repayment of any loan and interest of any bank.
Particulars of Term Loan from Bank of India (Balance Rs.10,69,82,649)
Term loan No. I from Bank of India (balance on 31-03-18 Rs.38,00,000 is repayable from Dec 13 comprising of first 6 installments of Rs.8.00 Lakhs each and remaining 16 installments of Rs. 9.50 Lakhs each. Term loan No. II from Bank of India (balance on 31-03-18 Rs.10,31,82,649) is repayable in quarterly installments comprising first 7 installments of Rs.60.00 Lakhs each, next 16 instalments of Rs.76.00 Lakhs each and the remaining 3 installments of Rs. 88.00 Lakhs each commencing from March, 2018
Particulars of Term Loan from Bank of Baroda (Balance Rs.4,35,97,074)
Term Loan I from Bank of Baroda (Balance on 31-03-18 Rs.24,99,610) is repayable in 22 quarterly installments being first 12 installment of Rs.1.75 Lakhs each, 9 installment of Rs. 9.90 Lakhs & Last installment of Rs.5.90 Lakhs each. Term Loan II from Bank of Baroda (Balance on 31-03-18 Rs.1,09,72,952) is repayable in 28 quarterly installments being first 5 installments of Rs. 4.50 Lakhs each, 8 installments of Rs. 6.75 Lakhs each, 8 installments of Rs. 9.00 Lakhs each, 4 installments of Rs. 10.125 Lakhs each and last 3 quaterely installments of Rs. 12.00 Lakhs each commencing from 28th Feb, 2015. Term Loan III from Bank of Baroda (Balance on 31-03-18 Rs. 1,89,84,039) is repayable in 7 years including 15 months moratorium period with 23 graded quarterly installments commencing after initial moratorium of 15 months from the date of 1st disbursement. The repayment will be in 4 quarterly installments of Rs. 4.06 Lakhs each, 4 quarterly installments of Rs. 8.13 Lakhs each, 4 quarterly installments of Rs. 12.19 Lakhs each, 4 quarterly installments of Rs. 20.31 Lakhs each, 4 quarterly installments of Rs. 20.31 Lakhs each and 3 quarterly installments of Rs. 21.67 Lakhs each commencing from 31st December 2016). Term Loan (Solar) from Bank of Baroda (Balance on 31-03-18 Rs. 1,11,40,473) is repayable in 10 years including 6 months moratorium period with 38 graded quarterly installments commencing from 31st July, 2017. The repayment will be in 3 quarterly installments of Rs. 5.60 Lakhs each, 4 quarterly installments of Rs. 6.30 Lakhs each, 4 quarterly installments of Rs. 7.35 Lakhs each, 4 quarterly installments of Rs. 8.93 Lakhs each, 4 quarterly installments of Rs. 10.50 Lakhs each, 4 quarterly installments of Rs. 12.08 Lakhs each, 4 quarterly installments of Rs. 13.65 Lakhs each, 4 quarterly installments of Rs. 14.70 Lakhs each, 4 quarterly installments of Rs. 14.70 Lakhs each and 3 quarterly installments of Rs. 16.80 Lakhs each, last installment is payable on 31st October, 2026.
In case of all unsecured loans, there is no repayment schedule. Therefore there is no continuing default in repayment of any loan or interest.
Working Capital Loan from Bank of India (balance Rs. 17,85,77,047) is also secured together with term loan (balance Rs. 10,69,82,649 as mentioned in Note No. 5) by exclusive charge by way of hypothecation of entire stock of inventory, receivable, bills and other chargeable current assets of the company, both present and future, lying at business place at factory location or elsewhere and for cash credit SEZ Unit exclusive charge by way of hypothecation of entire stock of inventory, receivables, bills and other chargeable current assets of the Company, both present and future lying at business place at factory location or elsewhere. Also secured by first charge over fixed assets of the company including factory land and building situated at S-4/3, S-4/2 and S-4/3A Pithampur, Sector I, Dist. Dhar on unit No.I and also secured by first charge by way of hypothecation over (company's Unit - I) Plant and Machineries and other movable fixed assets of the company and also secured by exclusive charge by way of EQM over company's staff quarters situated at plot No. 40 to 45, Shalimar Residency, Mhow, Dist. Indore and exclusive charge by way of EQM over company's lease hold land (SEZ Unit) situated at Plot No. 15,16 and 17 Special Economic Zone, Pithampur, District Dhar (MP) and exclusive charge by way of EQM over company's factory building (SEZ Unit constructed on Plot No. 15, 16 and 17 Special Economic Zone, Pithampur, District Dhar (MP) and further secured by exclusive charge by way of hypothecation over company's SEZ Unit's Plant and Machineries proposed to be acquired by the company from Term Loan and exclusive charge by way of hypothecation over company's SEZ Unit's Furniture and Fixtures proposed to be acquired by the company from Term Loan and collaterally and exclusively secured by equitable mortgage of Block A and B of office premises situated at 34 Jaora Compound, Indore belonging to company and also collaterally secured by exclusive charge by way of EQM of leasehold plot no B-18 at Special Economic Zone, Phase-I, Pithampur, District Dhar (Indore) MP admeasuring 3825.70 square meter alloted by MP Audyogik Kendra Vikas Nigam (Indore) Limited (MPAKVN) to the company and colleterally secured by second charge over Fixed Assets of the company including Factory Land and Building situated at S-4/3, S-4/2 and S-4/3A, Pithampur, Sector - 1, District Dhar on Unit - I and exclusive second charge by way of hypothecation over (company's Unit - I) Plant and Machineries and other movable fixed assets of the company and also by exclusive second charge by way of EQM over company's staff quarters situated at Plot No. 40 to 45, Shalimar Residency, Mhow Dist Indore and exclusive charge by way of EQM over company's lease hold land (SEZ Unit) building and hypothecation on Plant and Machineries, Furniture and Fixtures situated at Plot No. 15, 16 and 17 Special Economic Zone, Pithampur Dist Dhar M.P. Term loans and working capital loans are also personally guaranteed by Shri Anil Choudhary (MD), Smt. Ranjana Choudhary, Director of the company, Shri Pradeep Kumar Agrawal, Shri Shambhu Dayal Garg and Shri Ashok Kumar Agrawal and Corporate Guarantee of Super Sack Private Limited.
Working Capital from Bank of Baroda (balance Rs. 3,14,82,190) is also secured together with term loan (balance Rs. 4,35,97,074 as mentioned in Note. No. 5) by exclusive first charge by way of equitable mortgage of leasehold factory land admeasuring about 2247.75 meters, situated at plot No. S-3/1, Sector 1 Industrial Area, Pithampur, Dist. Dhar Regd. A-1/1930 dated 17/09/09 standing in the name of company and hypothecation of entire machinery, electrical installation, furniture and fixtures, office equipments and other movable fixed assets of the company, situated at the above mentioned factories, present and future. It is further secured by exclusive first charge by way of equitable mortgage of leasehold factory land admeasuring about 929 sq mtrs & building thereon at Plot No. 309, Sector 1, Industrial Area, Pithampur, Dist. Dhar (M.P.) and Factory Building constructed thereon and standing in the name of the company and hypothecation of entire machineries, electrical installations, furniture & fixtures, office equipments and other movable fixed assets of the company, situated at the abovementioned factories present and future. The loan is further secured by Equitable Mortgage of the lease hold factory land admeasuring about 7800 sq ft (724.91 sq m) and Building to be constructed thereon at Plot No. S-2/1, Sector - 1, Pithampur Dist Dhar and hypothecation of entire machineries, electric installations, furniture and fixtures, office equipments and other movable fixed assets of the Company, situated at the abovementioned factories, present and future. The loan is further secured by exclusive 1st Charge by way of hypothecation of entire machineries, electrical installtion, furniture and fixtures, office equipments and other movable fixed assets of the company situated at the above mentioned factories present and future. Exclusive 1st charge by way of hypothecation of entire machineries, electrical installations, furniture and fixtures, office equipments and other movable fixed assets of the company, situated at PH No. 36, village Galihara, Tehsil Sitamau, District Mandsaur present and future. The loan is further secured by exclusive 1st charge by way of hypothecation of entire raw materials, stock in process, stores and spares, packing materials, finished goods and book-debts of the company (Unit - II & Unit - III), both present and future. The term loan and working capital is guaranteed by Shri Anil Choudhary (MD), Smt. Ranjana Choudhary, Director of the company, Pradeep Kumar Agrawal and Ashok Kumar Agrawal and Corporate Guarantee of Super Sack Private Limited.
Working Capital from HDFC Bank Limited (balance Rs. 1,16,97,985 is primarly secured by all the stock and book debts of Trading Division and collaterally secured by Equitable Mortgage of Plot No. S-4/1, Industrial Area, Pithampur, Sector - I, Dhar. The loan is further secured by personal guarantee of Mr. Anil Choudhary and Mrs. Ranjana Choudhary, Directors of the company
The company has provided performance guarantee for 3 years to The Mission Director UP Skill Development Society, Lucknow for R 62,50,000 from Bank of India. This performance guarantee is provided as per the condition of skill development project under DDU-GKY. This performance guarantee is issued against the lien of Fixed Deposit Receipt (Account No. 880045110012462) of Rs. 62,50,000 made with Bank of India.
The company makes provident fund Contributions, a defined contribution plan, for qualiying employees. It also contributes to Employees State Insurance Corporation, which is also defined contribution plan. The company recognised Rs. 57,22,197/- and Rs. 50,77,459/respectively for PF and ESI contributions in Statement of Profit and Loss.
The company makes annual contribution to the Employee's Group Gratuity Cum Life Assurance Scheme of the Life Insurance Corporation of India, a funded benefit plan for qualifying employees. The Scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.
The figures of present value of the defined benefit obligation and the related current service cost were as measured and provided to us by Life Insurance Corporation Of India.
2. Previous year figures have been regrouped or rearranged wherever necessary to confirm to current year's classification and make them comparable.
3. In the opinion of the board, all Current Assets, Loans & Advances have a value on realisation in the ordinary course of business at least equal to the amount at which these are stated.
4. The balances of Debtors, Creditors, Advances and Liabilities are subject to confirmation and consequential adjustment, if any.
5. Intimation have not been received form any "Supplier" regarding their status under the Micro, Small and Medium Enterprises Act 2006 and hence following information is treated as NIL
(a) the principal amount and the interest due thereon remaining unpaid to any supplier as at the end of each accounting year.
(b) the amount of interest paid by the buyer in terms of section 16 of The Micro, Small and Medium Enterprises Development Act, 2006, along with the amount of the payment made to the supplier beyond the appointed day during each accounting year.
(c) the amount of interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under the Micro, Small and Medium Enterpirses Development Act 2006
(d) the amount of interest accrued and remaining unpaid at the end of each accounting year; and
(e) the amount of further interest, remaining due and payable even in the succeding years, untill such date when the interest dues as above are actually paid to the small enterprise, for the purpose of disallowance as a deductible expenditure under section 23 of the Micro, Small and Medium Enterprises Development Act, 2006.
6. Segment Reporting
a) Primary Segment (by Business Segment):
Based on the guiding principles given in Accounting Standards on Segment Reporting (AS - 17) the company is primarily in the business of manufacture and sale of FIBC, Bulk Bags, Poly Tarpaulin, Woven Sacks/Bags, Box Bags, PP/HDPE Fabric, Liner and Flexible Packaging which mainly have similar risk and returns. The company has undertaken Trading of Granules (DCA cum Consignment Stockiest) segment during the year under review. The company has identified following segments as Reportable Business Segments:
01. Manufacture and sale of FIBC, Bulk Bags, Poly Tarpaulin, Woven Sacks/Bags, Box Bags, PP/HDPE Fabric, Liner and Flexible Packaging
b) Secondary Segment (by Geographical demarcation)
i) The secondary segment is based on geographical demarcation i.e. in India and outside India.
7. As regards gratuity, the Company is under the Employee Group Gratuity Scheme of the Life Insurance Corporation of India ("LIC") . However, the Company does not have a certificate either from "LIC" or any other source to the effect that the contribution so made has been worked out by a qualified actuary in accordance with AS-15 (Revised 2005). The acturial assumption in respect of discount rate for above working used at the balance sheet date is 8%. As regards compensated absences, the Company has policy for encashment of leaves (which is compulsorily paid within one year from the end of the financial year) standing to the credit of the employees on cash basis.
8. The Company has entered into Forward Exchange Contracts, being derivatives instruments for hedge purpose and not intended for trading or speculation purpose, to establish the amount of currency in Indian Rupees required or available at the settlement date of certain payables and receivables. The following are the outstanding Forward Exchange Contracts entered into by the Company:
9. Corporate Social Responsibility (CSR)
(a) CSR amount required to be spent as per Section 135 of the Companies Act, 2013 read with Schedule VII thereof by the company during the year is Rs. 15.40 Lakhs (Previous Year Rs. 13.86 Lakhs). The company is having unspent amount of Rs. 29.49 Lakhs upto Previous Year 2016-2017.
(b) Expenditure related to Corporate Social Responsibility is Rs. 2.89 Lakhs (Previous Year Rs. 2.07 Lakhs)
10. Research & Development
The company conducts its R&D initiatives within the broad framework of innovation initiatives. The company purchased technologically upgraded Circular Loom, Stitching Machine, Ultrasonic Cutting and Sealing Machine, for its units.
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