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Notes to Accounts of Hitech Plast Ltd.

Mar 31, 2015

Note:

a. On 8th August, 2014 the Company issued and allotted 20,00,000 equity shares of Rs, 10/- each and 20,00,000 Convertible warrants to Promoter Group on a preferential basis as approved by shareholders at the Extra-Ordinary General Meeting held on 7th July, 2014 and after obtaining requisite regulatory approval.

b. Pursuant to the scheme of amalgamation of CMPSL with the Company under section 391 to 394 of the Companies Act 1956, sanctioned by the Hon'ble Bombay High Court on 20th November, 2015, the Company will issue and allot 3,09,44,164 9% Non-Convertible Redeemable Cumulative Preference shares of Rs, 10/- each fully paid up to the shareholders of CMPSL in the ratio of 173 (one hundred seventy three) Preference shares for every 10 (ten) equity shares of the face value of Rs, 10/- of CMPSL.

# As per the records of the Company, including its register of members.

a. Terms/rights attached to shares (i) Equity Shares

The Company has only one class of Equity shares referred to as equity shares having a par value of Rs, 10/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. Payment of dividend is also made in foreign currency to shareholders outside India. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

A dividend of Rs, 0.90 (paise Ninety only) per equity share of Rs, 10/- each has been recommended by the Board of Directors at its meeting held on 29th May, 2015, subject to the approval by the shareholders at the ensuing Annual General Meeting. If approved, the dividend for the Financial Year 2014-15 will be Rs, 0.90 per equity share (Previous year:Rs, 0.90 per equity share) of face value Rs, 10 each. The total dividend appropriation for the year ended 31st March, 2015 amounted to Rs, 164.38 Lacs including corporate dividend tax of Rs, 27.80 Lacs (Previous year Rs, 138.72 Lacs including corporate dividend tax of Rs, 20.15 Lacs).

As per the Companies Act, 2013, 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 shareholders.

(ii) Preference Shares to be issued under the Scheme of Amalgamation approved by the Hon'ble Bombay High Court on terms as under:

1. Preference Shares issued at par of Rs,10/- each.

2. The coupon rate (i.e. the rate of dividend) is 9%.

3. The Preference Shares are classified as " 9% Non-Convertible Redeemable Cumulative Preference Shares".

4. Preference Shares carry preferential (cumulative) right to dividend, at the above said coupon rate, when declared.

5. The dividend will be calculated on pro rata i.e. from the date of allotment of such Preference Shares.

6. The Preference Shares do not carry any voting rights except in case of any Resolution placed before the Company which directly affects the rights attached to such shares or otherwise provided in the Companies Act.

7. The Preference Shares have the maximum redemption period of 20 years. However, the same may be redeemed fully or in such tranches, before the aforesaid period, by the express mutual consent of the holders of such Preference Shares and Company as may be allowed under the Act.

8. Only fully paid up Preference Shares can be redeemed.

9. The Preference Shares will be redeemed at par of Rs,10/- each.

10. The Preference Shares will be redeemed out of Profits of the Company which would otherwise be available for dividend or out of the proceeds of a fresh issue of shares made for the purposes of the redemption.

4A Money received against Convertible Warrant :

The Company received an amount of Rs, 285 Lacs (Previous Year Rs, Nil) being 25% of the amount towards issue and allotment of 20,00,000 (Twenty Lacs) Convertible Warrants on a preferential basis to the Promoter Group as approved by the shareholders at the Extra-Ordinary General Meeting held on 7th July, 2014 and after obtaining requisite regulatory approval.

In accordance with Chapter VII of SEBI ICDR Regulations, 2009, the holder of each warrant will be entitled to apply for and obtain allotment of one equity share of the face value of Rs, 10/- each of the Company against each warrant at any time after the date of allotment but on or before the expiry of eighteen months from the date of allotment, in one or more tranches. At the time of exercise of entitlement, the warrant holder(s) shall pay the balance 75% of the consideration payable in respect of warrants being so exercised to the Company simultaneously with the allotment of equity shares by the Company pursuant to such exercise. If the entitlement against the warrants to apply for the equity shares is not exercised within the aforesaid period, the entitlement of the warrant holders to apply for the equity shares of the Company along with rights attached thereto shall expire and any amount paid on such warrant shall stand forfeited.

@ Default in terms of repayment of principal and interest – NIL.

# In compliance of the provision of Section 74 of the Companies Act 2013, the deposits accepted by the Company and outstanding have been repaid on March 31, 2015. The deposits carried interest @ 9.50% to 11% p.a. Consequently, the outstanding deposits stand reduced to Rs, Nil as at March 31, 2015 (Rs, 1,506.35 Lacs as at March 31, 2014).

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors.

1. The Company enters into forward exchange contracts to hedge against its foreign currency exposures relating to the underlying transactions and frm commitments. The Company does not enter into any derivative instruments for trading or speculative purposes. During the year, Company has not entered into any forward exchange contract.

2. Legal and Professional expenses include Rs, 8.61 Lacs towards merger of Clear Mipak Packaging Solutions Limited into the Company.

3. Pursuant to Accounting Standard (AS – 19)- Lease, the following information is given Assets taken on operating lease

a. The Company has taken certain assets such as cars and premises on an operating lease basis, the lease rentals are payable by the Company on a monthly basis.

4. Research and Development

During the year the Company has received extension of recognition for its In-house R & D unit situated at 28/9, D-2 Block, MIDC, Chinchwad, Pune (Unit- Technology Centre) for further 3 years up to 31st March, 2017, vide letter dated 1st May, 2014 issued by Government of India, Ministry of Science and Technology, Department of Scientifc and Industrial Research, Technology Bhavan, New Mehrauli Road, New Delhi- 110 016. The Company has incurred following expenditure on Research and Development :

c. Lease payments recognized in the Statement of Profit and Loss for the year are Rs, 221.99 Lacs (31st March, 2014: Rs, 180.57 Lacs).

5. Employee benefits

(1) Short term employee benefits:

The liability towards short term employee benefits for the year ended 31st March, 2015 has been recognized in the Statement of Profit and Loss.

(2) Post employment benefits:

The following disclosure is made in accordance with AS 15 (Revised) pertaining to Defined Benefit Plans :

Notes:

a) The estimates of future salary increases, considered in actuarial valuation, takes into account the inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

b) The Company estimates that the amount to be contributed to the Gratuity fund up to the financial Year 2014-15 will be Rs, 133.00 Lacs.

c) The Company regularly deposits employee and employers contribution of provident funds to Government managed fund i.e (EPFO) and hence the guidance on implementing AS – 15 (Revised) issued by Accounting Standards Board (ASB) of the Institute of Chartered Accountants of India, relating to employer established provident funds, is not applicable.

(3) Long Term Employee Benefits:

The liability towards compensated absences (annual leave and sick leave) as at 31st March, 2015, based on actuarial valuation carried out by using the Projected Unit Credit Method amounting to Rs, 36.65 Lacs (31st March, 2014: Rs, 4.79 Lacs) has been recognized in the Statement of Profit and Loss.

6. Information on related party transactions as required by Accounting Standard (AS)– 18 for the year ended 31st March, 2015. 1. Relationship:

(i) Holding Company

Geetanjali Trading and Investments Private Limited

(ii) Fellow Subsidiaries

Hi-tech Specialties (India) Limited

Hi-tech Insurance Broking Services Ltd.

Vijal Holding and Trading Co. Pvt. Ltd.

Smiti Holding and Trading Pvt. Ltd.

Isis Holding and Trading Company Pvt. Ltd

Rayirth Holding and Trading Company Pvt. Ltd.

Hi-tech Skills Development Pvt. Ltd.

(iii) Key Management Person:

Malav A. Dani (Managing Director)

Mr. Bharat I. Gosalia (Chief Financial officer) ( joined on 3/7/2014)

Mr. Satish S. Samant (Chief Financial officer) (resigned on 2/7/2014)

Mrs. Namita R. Tiwari (Company Secretary) (iv) Companies controlled by Directors/Relatives of Directors :

Dani Finlease Ltd.

Gujarat Organics Ltd.

Haish Holding and Trading Company Pvt. Ltd.

S C Dani Research Foundation Pvt. Ltd.

Pragati Chemicals Ltd.

Resins and Plastics Ltd.

Suryakant Paint Accessories Pvt. Ltd.

Asian Paints Ltd. (v) Promoter Directors

Mr. Ashwin S. Dani

Mr. Jalaj A. Dani

Mrs. Ina A. Dani

(vi) Relatives of promoters Mrs. Vita J. Dani

(vii) Employee Benefit funds where control exists: Hi-tech Plast Employees' Gratuity Trust

Mipak Industries Employees' Group Gratuity Assurance Scheme Plast-Kul Industries Employees' Group Gratuity Assurance Scheme Clear Plastics Employees' Gratuity Trust Mipak Polymers Ltd. Employees' Group Gratuity Assurance Scheme

7. Segment Reporting.

As the Company business activity falls within a single primary business segment viz. "Plastic Containers", the disclosure requirements of Accounting Standard (AS-17) "Segment Reporting", as prescribed in the Companies (Accounting Standards) Rules, 2006, is not applicable. As on 31st March, 2015 the capital employed in the reportable segment was Rs, 21,500.86 Lacs (31st March, 2014: Rs, 15,548.69 Lacs).

8. During the year the Company is eligible for Industrial Promotion Subsidy under the Package Scheme of Incentive (PSI) 2007. Accordingly, in terms of the Accounting Standard (AS 12) "Accounting for Government Grants" as specified under section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules 2014, the Company is eligible for an incentive of Rs, 61.51 Lacs (Previous Year - Rs, Nil) and the same is accounted on accrual basis.

3 Key management person who is under the employment of the Company is entitled to post employment benefits and other long term employee benefits recognized as per AS – 15 (Revised) Employee benefits in the financial statements. As these employee benefits are lump sum amount provided on the basis of actuarial valuation, the same is not included above.

(a) Amount paid to Managing Director Mr. Malav A. Dani

(b) Amount paid to Chief Financial Officer- Mr. Bharat I. Gosalia & Mr .Satish S. Samant

(c) Amount paid to Company Secretary - Mrs. Namita R. Tiwari

9. As a part of the strategy to consolidate the operations in line with our core business, the Company has discontinued its tea packaging business at Aurangabad in January, 2015.

10. As a part of consolidation initiatives, the Dadra plant of the Company, has been shifted and merged with the plant situated at Naroli (D&NH). This will help in improving operational efficiency.

11. Amalgamation of Subsidiary Company Clear Mipak Packaging Solutions Ltd.

(a) Pursuant to the scheme of amalgamation ('the Scheme') of Clear Mipak Packaging Solutions Ltd. (CMPSL) with the Company under Sections 391 to 394 of the Companies Act, 1956 sanctioned by Hon'ble Bombay High Court on November 20, 2015 entire business and all assets and liabilities of Clear Mipak Packaging Solutions Ltd. were transferred and vested in the Company effective from April 1, 2014. Accordingly the Scheme has been given effect to in these financial statements.

Clear Mipak Packaging Solutions Ltd. was also engaged in the business of manufacturing and supplying plastic containers for different industries, a business akin and germane to the business of the Company.

(b) The amalgamation has been accounted for under the "Pooling of Interest" method as prescribed by the Accounting Standard 14 "Accounting for Amalgamations" notifed under the Companies Act, 2013. Accordingly the accounting treatment has been given as under:

(i) The assets and liabilities as at April 1, 2014 were incorporated in the financial statement of the Company at its book value.

(ii) The Reserves and Surplus including balance in the Profit & Loss account of the transferor Company have been recorded in the same form and at the same value in the financial statement and adjusted as prescribed in the Scheme approved by the Court as per (v) below.

(iii) The Company will issue and allot 3,09,44,164 9% Non-Convertible, Redeemable, Cumulative Preference shares of face value of Rs, 10/- each to the shareholders of CMPSL on the record date.

(iv) 26,83,020 Equity shares of Rs,10/- each fully paid in CMPSL held as investment by the Company stands cancelled.

(v) In accordance with Clause 13 of the Scheme of Amalgamation and special resolution under section 52 of the Companies Act, 2013 read with Section 100 to 104 of the Companies Act, 1956, the difference between the amount recorded as share capital issued by the Company and the amount of share capital of the transferor Company CMPSL has been adjusted first against Capital Reserve Account, then to Securities Premium Account and remaining balance against General Reserve of the Company.

Accordingly Capital Reserve Account of Rs, 237.33 Lacs, Securities Premium Account of Rs, 4,532.09 Lacs and General Reserve Account Rs, 249.91 Lacs of the transferor Company CMPSL and Securities Premium Account of the Company of Rs, 737.21 Lacs and General Reserve of Company Rs, 299.62 Lacs both as on appointed date have been utilized/adjusted towards the difference between the amount recorded as Preference capital to be issued by the Company and the amount of share capital of the transferor Company CMPSL together with cancellation of Investment in the CMPSL held by the Company of Rs, 3,408.89 Lacs upon giving effect of amalgamation of CMPSL.

12. The Utilization of Securities Premium Account as stated in Note 46 above would not involve either a diminution of liability in respect of unpaid share capital or payment of paid up share capital and the provisions of Section 101 of the Act will not be applicable.

13. In view of amalgamation the figures for the year ended March 31, 2015 are not comparable to the previous year.

14. The previous year's figures have been re-grouped / re-classified wherever necessary to correspond with the current year's classification/ disclosure.


Mar 31, 2014

1. Company Information:

Hitech Plast Limited (the Company) is a Public Limited Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India, namely the Bombay Stock Exchange Limited, and the NSE Limited. The Company is engaged in the manufacturing of rigid plastic containers specially catering to customers relating to Paints, Lube and other industrial chemicals. The Company caters to only local domestic market.

(Rs. in Lacs)

2. CONTINGENT LIABILITIES AND COMMITMENTS

As at As at a) Contingent Liabilities: 31.03.2014 31.03.2013

1) Claims against the Company not acknowledged as debts - Tax and other matters in dispute under appeal 717.73 358.92

2) Corporate guarantee issued by the Company to certain bank on behalf of its subsidiary - 4,803.00

3) Bills of exchange discounted with banks (since realized Rs. 3,794.63 Lacs, (31st March 2013: Rs. 2,743.43 Lacs)) 5,138.85 5,382.68

The claims against the Company comprise:

The tax demands are mainly on account of disallowance of a portion of the tax holiday claimed by the Company under the Income tax Act. The matters are pending before the Commissioner of Income tax (Appeals).

The Company is contesting the demands and the management, including its tax advisors, believe that its position would likely be upheld in the appellate process. No tax expense has been accrued in the financial statements for the tax demand raised. The management believes that the ultimate outcome of this proceeding will not have a material adverse effect on the Company''s financial position and results of operations.

2) The Company enters into forward exchange contracts to hedge against its foreign currency exposures relating to the underlying transactions and firm commitments. The Company does not enter into any derivative instruments for trading or speculative purposes.

3. RESEARCH AND DEVELOPMENT

The Company has received recognition of its In-house R & D unit situated at 28/9, D-2 Block, MIDC, Chinchwad, Pune(Unit- Technology Centre) upto 31st March,2014, vide letter dated 25th October, 2011 issued by Government of India, Ministry of Science and Technology, Department of Scientifc and Industrial Research, Technology Bhavan, New Mehrauli Road, New Delhi- 110 016. The Company has incurred following expenditure on Research and Development :-

4. The Company enters into forward exchange contracts to hedge against its foreign currency exposures relating to the underlying transactions and firm commitments. The Company does not enter into any derivative instruments for trading or speculative purposes.

5. Disclosure as per clause 32 of the Listing Agreement entered into with the Stock Exchange.

Loans and advances in the nature of loans given to subsidiary - Clear Mipak Packaging Solutions Limited Balance as at 31st March, 2014 Rs. Nil (31st March, 2013: Rs. Nil)

Maximum amount outstanding during the year Rs. 18.81 Lacs (31st March, 2013: Rs. 19.83 Lacs) Repayment schedule – on demand.

6. Pursuant to Accounting Standard (AS – 19)- Lease, the following information is given: Assets taken on operating lease

(a) The Company has taken certain assets such as cars on an operating lease basis. The lease rentals are payable by the Company on a monthly basis.

(b) Future minimum lease rentals payable as at 31st March, 2014 as per the lease agreements:

(c) Lease payments recognised in the Statement of profit and Loss for the year are Rs. 28.91 Lacs (31st March, 2013: Rs. 26.29 Lacs).

7. Employee benefits :-

(1) Short term employee benefits:

The liability towards short term employee benefits for the year ended 31st March, 2014 has been recognised in the Statement of profit and Loss.

(2) Post employment benefits:

The following disclosures are made in accordance with AS 15 (Revised) pertaining to Defined benefit Plans :

i. Discount Rate : The discount rate is based on the prevailing market yields of Indian Government securities as at the balance sheet date for the estimated term of the obligation.

ii. Expected Rate of Return on Plan Assets : This is based on the expectation of the average long-term rate of return expected on investments of the fund during the estimated term of the obligations.

iii. Salary Escalation Rate : The estimates of future salary increases, considered in acturial valuation, takes into account the infation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

Notes:-

a) The gratuity fund assets and liabilities are managed by Hitech Plast Employees'' Gratuity Trust.

b) The Company estimates that the amount to be contributed to the Gratuity fund for the financial year 2013-14 will be Rs. 13.40 lacs.

c) The Company regularly deposits employee and employers contribution of provident funds to Government managed fund i.e (EPFO) and hence the guidance on implementing AS 15 (revised 2005) issued by Accounting Standards Board (ASB) of the Institute of Chartered Accountants of India, relating to employer established provident funds, is not applicable.

(3) Long Term Employee benefits:

The liability towards compensated absences (annual leave and sick leave) for the year ended 31st March, 2014 based on actuarial valuation carried out by using the Projected Accrued benefit Method amounting to Rs. (4.79) Lacs (31st March, 2013: Rs. 45.59 Lacs ) has been recognised in the Statement of profit and Loss.

8. Information on related party transactions as required by Accounting Standard – 18 on Related Party Disclosures for the year ended 31st March 2014.

1. Relationship:

(i) Holding Company

Geetanjali Trading and Investments Private Limited

(ii) Fellow Subsidiaries

Coatings Specialities (India) Limited Rangudyan Insurance Broking Services Ltd Vijal Holding and Trading Company Pvt. Ltd. Smiti Holding and Trading Company Pvt. Ltd. Isis Holding and Trading Company Pvt. Ltd Isis Skills Development Pvt. Ltd.

(iii) Subsidiary of the Company

Clear Mipak Packaging Solutions Limited

(iv) Key Management Person: Malav A. Dani

(v) Promoter Directors

Mr. Ashwin S. Dani

Mr. Jalaj A. Dani

Mrs. Ina A. Dani

(vi) Employee benefit funds where control exists:

Hitech Plast Employee''s Gratuity Trust

(vii) Companies controlled by Directors/Relatives of Directors :

Dani Finlease Ltd.

Gujarat Organics Ltd.

Haish Holding And Trading Company Pvt. Ltd.

S C Dani Research Foundation P. Ltd.

Pragati Chemicals Ltd.

Resins and Plastics Ltd.

Raytirth Holding and Trading Company Pvt. Ltd. Suryakant Paint Accessories Pvt. Ltd. Asian Paints Ltd.

9. Segment Reporting.

As the Company''s business activity falls within a single primary business segment viz., "Plastic Containers", the disclosure requirements of Accounting Standard (AS-17) "Segment Reporting", as prescribed in the Companies (Accounting Standards) Rules, 2006, is not applicable. As on 31st March 2014, the capital employed in the reportable segment was Rs. 15,548.69 Lacs (31st March 2013: Rs. 15,015.98 Lacs).

10. During the year, the manufacturing unit of the Company situated at Masat in Silvassa was shifted and merged with Company''s existing unit at Galonda in Silvassa and the manufacturing unit of the Company situated at Pondicherry was shifted and merged with Company''s existing unit at Sriperumbudur as part of restructuring plan.

11. The previous year''s figures have been re-grouped / re-classified wherever necessary to correspond with the current year''s classification/disclosure .


Mar 31, 2013

1. Company Information:

Hitech Plast Limited (the Company) is a Public Limited Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India, namely the Bombay Stock Exchange Limited, and the NSE Limited. The Company is engaged in the manufacturing of rigid plastic containers specially catering to customers relating to paints, lube and other industrial chemicals. The Company caters to only local domestic market.

(Rs. in Lacs)

2. CONTINGENT LIABILITIES AND COMMITMENTS As at As at a) Contingent Liabilities: 31.03.2013 31.03.2012

1) Claims against the Company not acknowledged as debts

- Tax matters in dispute under appeal 358.92 183.82

2) Corporate guarantee issued by the Company to certain bank on behalf of its subsidiary 4,803.00 4,803.00

3) Bills of exchange discounted with banks (since realized Rs. 2,743.43 lacs, (31st March, 2012: Rs. 3,138.31 lacs)) 5,382.68 3,514.86

The claims against the Company comprise:

The tax demands are mainly on account of disallowance of a portion of the tax holiday claimed by the Company under the Income tax Act. The matters are pending before the Commissioner of Income tax (Appeals).

The Company is contesting the demands and the management, including its tax advisors, believe that its position would likely be upheld in the appellate process. No tax expense has been accrued in the Financial Statements for the tax demand raised. The management believes that the ultimate outcome of this proceeding will not have a material adverse effect on the Company''s fnancial position and results of operations.

3. RESEARCH AND DEVELOPMENT

The Company has received recognition for its In-house R&D unit situated at 28/9, D-2 Block, MIDC, Chinchwad, Pune (Unit- Technology Centre) upto 31st March, 2014, vide letter dated 25th October, 2011 issued by Government of India, Ministry of Science and Technology, Department of Scientifc and Industrial Research, Technology Bhavan, New Mehrauli Road, New Delhi-110 016. The Company has incurred following expenditure on Research and Development.

4. The Company uses forward exchange contracts to hedge against its foreign currency exposures relating to the underlying transactions and frm commitments. The Company does not enter into any derivative instruments for trading or speculative purposes.

5. Disclosure as per clause 32 of the Listing Agreement entered into with the Stock Exchange:-

Loans and advances in the nature of loans given to subsidiary - Clear Mipak Packaging Solutions Limited Balance as at 31st March, 2013 Rs. Nil (31st March, 2012: Rs. Nil)

Maximum amount outstanding during the year Rs. 19.83 lacs (31st March, 2012: Rs. 1,285.84 lacs) Repayment Schedule - on call loan

6. Pursuant to Accounting Standard (AS - 19)- Lease, the following information is given:

a. The Company has taken certain assets such as cars on an operating lease basis. The lease rentals are payable by the Company on a monthly basis.

b. Future minimum lease rentals payable as at 31st March, 2013 as per the lease agreements:

7. Employee benefts :-

(1) Short term employee benefts:

The liability towards short term employee benefts for the year ended 31st March, 2013 has been recognised in the Statement of Proft and Loss.

(2) Post employment benefts:

The following disclosures are made in accordance with AS 15 (Revised) pertaining to Defned Beneft Plans :

8. Related Party Disclosures

Information on related party transactions as required by Accounting Standard – 18 on Related Party Disclosures for the year ended 31st March, 2013.

1. Relationship:

(i) Holding Company

Geetanjali Trading and Investments Private Limited

(ii) Fellow Subsidiaries

Coatings Specialities (India) Limited Rangudyan Insurance Broking Services Ltd

(iii) Subsidiary of the Company

Clear Mipak Packaging Solutions Limited

(iv) Key Management Person:

Mr. Malav A. Dani (Promoter Director) (Redesignated as Managing Director from Joint Managing Director w.e.f. 3/11/2012) Mr.Ashok K. Goyal (Managing Director) (Up to 15/08/2012)

(v) Promoter Directors Mr. Ashwin S. Dani Mr. Jalaj A. Dani Mrs. Ina A. Dani Mr. Hasit Dani( Upto 16/4/2012)

(vi) Employee Beneft fund where control exists : Hitech Plast Employee''s Gratuity Trust

(vii) Companies controlled by Directors/ Relatives of Directors :

Dani Finlease Ltd.

Gujarat Organics Ltd.

Haish Holding and Trading Company Pvt. Ltd.

S C Dani Research Foundation P. Ltd.

Vijal Holding and Trading Co. Pvt. Ltd.

Smiti Holding and Trading Pvt. Ltd

Pragati Chemicals Ltd.

Resins and Plastics Ltd.

Raytirth Holding & Trading Company Pvt. Ltd. Isis Holding & Trading Company Pvt. Ltd

Suryakant Paint Accessories Pvt. Ltd

Asian Paints Ltd.

Isis Skills Development Pvt. Ltd.

9. Segment information

As the Company''s business activity falls within a single primary business segment viz., "Plastic Containers", the disclosure requirements of Accounting Standard (AS-17) "Segment Reporting", as prescribed in the Companies (Accounting Standards) Rules, 2006, is not applicable. As on 31st March, 2013, the capital employed in the reportable segment was Rs. 15,015.98 lacs (31st March, 2012: Rs. 14,708.34 lacs).

10. The previous year''s fgures have been re-grouped / re-classifed wherever necessary to correspond with the current year''s classifciation/disclosure .


Mar 31, 2012

1. Company Information:

Hitech Plast Limited (the Company) is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India, namely the BSE Limited (BSE) and the National Stock Exchange of India Limited (NSE). The Company is engaged in the manufacturing of rigid plastic containers specially catering to customers relating to Paints, Lube and other industrial chemicals. The Company caters to only local domestic market.

a. Terms/rights attached to equity shares :

The Company has only one class of shares referred to as equity shares having a par value of Rs 10/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. Payment of dividend is also made in foreign currency to shareholders outside India. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

A dividend of Rs 1.60 (Rupees one and paise sixty only) per share has been recommended by the Board of Directors at its meeting held on 18th June 2012, subject to the approval by the shareholders at the ensuing Annual General Meeting. If approved, the dividend for the financial year 2011-12 will be Rs 1.60 per equity share; Rs 1.60 per equity share was paid as dividend for the previous year. The total dividend appropriation for the year ended 31st March, 2012 amounted to Rs 245.01 lakhs including corporate dividend tax of Rs 34.20 lakhs. (Previous year Rs 245.01 lakhs including corporate dividend tax of Rs 34.20 lakhs).

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. However no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

2. DEFERRED TAX LIABILITIES (NET)

The Company has recognized deferred tax arising on account of timing differences, being the difference between the taxable income and accounting income, that originates in one period and is capable of reversal in one or more subsequent period(s) in compliance with Accounting Standard (AS 22) - Accounting for Taxes on income.

A Default in terms of repayment of principal and interest - NIL.

Short Term Loan borrowings from banks and Cash Credit Accounts are secured by hypothecation of inventories, book debts and other current assets. Cash Credit is repayable on demand and carries interest @14% to 15% p.a.

Capitalized borrowing costs

The borrowing cost capitalized during the year ended 31st March 2012 was Rs 18.22 lakhs (31st March 2011 : Rs Nil). The Company capitalized this borrowing cost in the capital work-in-progress (CWIP). The amount of borrowing cost as other adjustments in the above note reflects the amount of borrowing cost transferred to CWIP.

Land includes land held on leasehold basis:

Gross block Rs 14.50 lakhs (31st March 2011: Rs 14.50 lakhs) Depreciation charge for the year Rs 0.15 lakhs (31st March 2011:Rs 0.15 lakhs) Accumulated depreciation Rs 1.04 lakhs (31st March 2011: Rs 0.89 lakhs) Net book value Rs 13.47 lakhs (31st March 2011: Rs 13.62 lakhs).

Notes:-

a) The estimates of future salary increases, considered in actuarial valuation, takes into account the inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

b) The Company estimates that the amount to be contributed to the Gratuity fund for the financial year 2011-2012 will be Rs Nil.

c) The Company regularly deposits employee and employers contribution of provident funds to Government managed fund i.e (EPFO) and hence the guidance on implementing AS - 15 (Revised) issued by Accounting Standards Board (ASB) of the Institute of Chartered Accountants of India, relating to employer established provident funds, is not applicable.

(3) Long Term Employee Benefits:

The liability towards compensated absences (annual leave and sick leave) as at 31st March 2012, based on actuarial valuation carried out using the Projected Accrued Benefit Method amounting to Rs 21.85 lakhs (31st March 2011: Rs 17.85 lakhs) has been recognized in the statement of Profit and Loss.

3. Pursuant to Accounting Standard (AS - 19) - Lease, the following information is given:

a. The Company has taken certain assets such as cars on an operating lease basis, the lease rentals are payable by the Company on a monthly basis.

b. Future minimum lease rentals payable as at 31st March 2012 as per the lease agreements:

4. Segment information:

As the Company's business activity falls within a single primary business segment viz., "Plastic Containers", the disclosure requirements of Accounting Standard (AS-17) "Segment Reporting", as prescribed in the Companies (Accounting Standards) Rules, 2006, is not applicable. As on 31st March 2012, the capital employed in the reportable segment was Rs 14,708.34 lakhs (31st March 2011: Rs 13,112.22 lakhs).

5. Related Party disclosures:

Information on related party transactions as required by Accounting Standard - 18 on Related Party Disclosures for the year ended 31st March 2012.

1. Key manager person who is under the employment of the Company is entitled to post employment benefits and other long term employee benefits recognized as per AS - 15 (Revised) Employee benefits in the financial statements. As this employee benefits are lumpsum amount provided on the basis of actuarial valuation, the same is not included above.

2. As at 31 st March 2012, corporate guarantee issued by the Company on behalf of its subsidiary amounting to Rs 4,803 lakhs (31st March 2011: Rs 4,803.00 lakhs).

6. Contingent Liabilities art Commitments

(Rs in lakhs)

As st As st

a) Contingent Liabilities: 31.03.2012 31.03.2011

1) Claims against the Company not acknowledged as debts: - Tax matters in dispute under appeal 117.80 66.02

2) Corporate guarantee issued by the Company to certain bank on behalf of its subsidiary 4,803.00 4,803.00

3) Bills of exchange discounted with banks 3,514.86 3,694.21 (since realized Rs 3,138.31 lakhs, (31st March 2011: Rs 2,260.77 lakhs))

The claims against the Company comprise:

Income tax demand comprises of demand from the tax authorities for payment of additional tax of Rs 117.80 lakhs (31 March 2011: Rs 66.02 lakhs), upon completion of their tax review for the financial years 2007-08 and 2008-09. The tax demands are mainly on account of disallowance of a portion of the tax holiday claimed by the Company under the Income tax Act. The matters are pending before the Commissioner of Income tax (Appeals).

The Company is contesting the demands and the management, including its tax advisors, believe that its position would likely be upheld in the appellate process. No tax expense has been accrued in the financial statements for the tax demand raised. The management believes that the ultimate outcome of this proceeding will not have a material adverse effect on the Company's financial position and results of operations.

3) For commitments relating to lease arrangements, please refer to Note 28.

4) The Company uses forward exchange contracts to hedge against its foreign currency exposures relating to the underlying transactions and firm commitments. The Company does not enter into any derivative instruments for trading or speculative purposes. The following is the position on foreign currency exposure:

7. Disclosure as per Clause 32 of the Listing Agreement entered into with the Stock Exchanges

Loans and advances in the nature of loans given to subsidiary - Clear Mipak Packaging Solutions Limited Balance as at 31st March 2012 Rs Nil (31st March 2011: Rs Nil)

Maximum amount outstanding during the year Rs 1,285.84 lakhs (31 st March 2011: Rs 824.00 lakhs) Repayment schedule - on call loan

8. Details of dues to Micro and Small Enterprises as defined under the MSMED Act, 2006:

There are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March, 2012. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

i) Figures in brackets are for the previous year.

ii) Pursuant to notification no S:0 301 (E) dated 8th February 2011 issued by the Ministry of Company Affairs, disclosure of stock and turnover is provided for item which are greater than 10% of the total value of turnover.

9. RESEARCH AND DEVELOPMENT

The Company has received recognition of its In-house R & D unit situated at 28/9, D-2 Block, MIDC, Chinchwad, Pune(Unit-Technology Centre) up to 31st March,2014, vide letter dated 25th October, 2011 issued by Government of India, Ministry of Science and Technology, Department of Scientific and Industrial Research, Technology Bhavan, New Mehrauli Road, New Delhi-110 016. The Company has incurred following expenditure on Research and Development.

10. The previous year's figures have been re-grouped / re-classified to conform to this year's classification which is as per Revised Schedule VI. This adoption does not impact recognition and measurement principles followed for preparation of financial statements as at 31st March 2011.


Mar 31, 2011

1. Provisions and Contingencies:

The Company creates a provision when there exists a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources. When there is a possible obligation or a present obligation in respect of which likelihood of outflow of resources is remote, no provision or disclosure is made.

2. Earnings Per Share:

The Basic and Diluted Earnings Per Share ("EPS") is computed by dividing the net profit after tax for the year by weighted average number of equity shares outstanding during the year.

3. Proposed Dividend:

Dividend recommended by the Board of directors is provided for in the accounts, pending approval at the Annual General Meeting.

4. There are no Micro and small Enterprises, to whom the company owes dues, which are outstanding for more than 45 days as at 31st March, 2011. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company. Disclosures under the Micro and small Enterprises Development Act, 2006 are provided as under for the year 2010-11, to the extent the company has received intimations from the suppliers regarding their status under Act as on 31st March, 2011.

5. The Company uses forward exchange contracts to hedge against its foreign currency exposures relating to the underlying transactions and firm commitments. The Company does not enter into any derivative instruments for trading or speculative purposes.

6. The Company has recognized deferred tax arising on account of timing differences, being the difference between the taxable income and accounting income, that originates in one period and is capable of reversal in one or more subsequent period(s) in compliance with Accounting Standard (AS-22) - Accounting for Taxes on income.

7. Pursuant to Accounting Standard (AS-19) Lease, the following information is given:

a) The Company has taken certain assets such as cars on an operating lease basis, the lease rentals are payable by the company on a monthly basis.

c) Lease payments recognised in the Profit and Loss account for the period are Rs. 29.58 Lacs (previous year Rs 26.17 Lacs).

8. Employee Benefits:

(1) Short term employee benefits:

The liability towards short term employee benefits for the year ended 31st March, 2011 has been recognised in the Profit and Loss Account.

Notes:-

a) The estimates of future salary increases, considered in actuarial valuation, takes into account the inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

b) The Company estimates that the amount to be contributed to the Gratuity fund for the financial year 2010-2011 will be Rs Nil.

c) The guidance on implementing AS-15 (Revised) issued by Accounting Standards Board (ASB) of the Institute of Chartered Accountants of India states benefit involving employer established provident funds, which require interest shortfalls to be recompensed are to be considered as defined benefits plans. Pending the issuance of the guidance note from Actuarial Society of India, the Companys actuary has expressed an inability to reliably measure provident fund liabilities. Accordingly the company is unable to exhibit the related information.

(3) Long Term Employee Benefits:

The liability towards compensated absences (annual leave and sick leave) as at 31st March 2011, based on actuarial valuation carried out using the Projected Accrued Benefit Method amounting to Rs 17.85 Lacs (Previous year - Rs 18.65 Lacs ) has been recognised in the Profit & Loss statement.

9. Information on related party transactions as required by Accounting Standard - 18 on Related Party Disclosures for the year ended 31st March, 2011.

1. Key manager person who is under the employment of the company is entitled to post employment benefits and other long term employee benefits recognised as per AS-15 (Revised) Employee benefits in the financial statements. As this employee benefits are lumpsum amount provided on the basis of actuarial valuation, the same is not included above.

2. Corporate guarantee issued by the Company on behalf of its subsidiary amounting to Rs 4803.00 Lacs as at 31st March, 2011 (Previous year Rs 1260.00 Lacs)

1. Relationship:

(i) Holding Company (vi) Companies controlled by Directors/ Relatives of Directors:

Geetanjali Trading and Investments Pvt Ltd. Asian Paints Ltd.

(ii) Fellow Subsidiaries: Gujarat Organics Limited

Coatings Specialities (India) Ltd. Pragati Chemicals Ltd.

Rangudyan Insurance

Broking Services Ltd. Resins & Plastics Ltd.

SC Dani Research Foundation Pvt. Ltd.

(iii) Subsidiary of the Company: Suryakant Paint Accessories Pvt. Ltd.

Clear Mipak Packaging Solutions Ltd.

(iv) Key Management Person: (vii) Employee Benefit Fund where control exists:

Mr. Ashok K. Goyal (Managing Director) Hitech Plast Employees Gratuity Trust

(v) Promoter Director:

Mr. Ashwin S. Dani Mr. Hasit A. Dani Mr. Jalaj A. Dani Mr. Malav A. Dani Mrs. Ina A, Dani



10. The Company had filed for compounding of offences under Section 621A of the Companies Act, 1956 to the Central Government post inspection carried out under Section 209A of the Companies Act, 1956, and compounding fees of Rs. 10,500/- were paid by the Company and Rs 27,000/- were paid in aggregate by the Managing Director and the Company Secretary, in their personal capacities, for following provisions of the Companies Act, 1956: (a) Section 211 (Part I) read with Schedule IV, (b) Section 211 (Part II) read with Schedule IV, (c) Section 257, (d) Section 301(1) read with 302(2), (e) Section 301(3) and (f) Section 305.

11. As the Companys business activity fails within a single primary business segment viz., "Plastic Containers", the disclosure requirements of Account- ing Standard (AS-17) "Segment Reporting", as prescribed in the Companies (Accounting Standards) Rules, 2006, is not applicable. The capital employed in the reportable segment was X 13,368.37 lacs as on 31st March, 2011 (Rs 10,203.64 lacs as on 31st March, 2010).

12. Previous years figures have been regrouped, wherever necessary.

 
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