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Notes to Accounts of Kaira Can Company Ltd.

Mar 31, 2015

1 Background:

Kaira Can Company Limited is a company incorporated in India under Companies Act, 1956 on March 1st, 1962. The company started its manufacturing activity as a Private Limited Company at Anand in the state of Gujarat, which later became a public limited company on August 24th, 1964 and is listed on Bombay Stock Exchange (BSE). The Company is engaged in the manufacture of Open Top Sanitary Cans, Lithographed and Plain Metal Containers and Special Containers. The company is also in the business of manufacturing of Ice Cream Cones since financial year 2000-2001 and processing and packing of Amul milk at Vashi (Discontinued w.e.f. 01.07.2013) . The head office of the Company is situated at Mahalaxmi, Mumbai in the state of Maharastra. The factories are located at Anand, Kanjari, Vithal Udyog Nagar in the State of Gujarat.

2 (i) LEASE

Operating Lease

The Company has taken various Residential / Commercial premises and plant and machinery under other than non cancellable operating leases. These lease agreements are normally renewed on expiry. The lease payments recognised in Statement of Profit & Loss Account is Rs. 4,67,136/-, (Previous year Rs. 27,71,977/-).

Note : The above particulars of consumption of imported and indigenous materials have been ascertained by the Management on the basis of information available with them.

3 (i) The Company does not have any parent company and subsidiary company, hence, the disclosures under clause 32 of listing agreement is not applicable.

3 SEGMENT INFORMATION

3.1 RELATED PARTY DISCLOSURES

Related party Disclosures as required by Accounting Standard 18 "Related Party Disclosures" notified in the Companies (Accounting Standard ) Rules, 2006, the disclosure of transactions with the related parties are given below:

4 CONTINGENT LIABILITIES AND COMMITMENTS (Figures in Rs.)

As at As at 31-Mar-15 31-Mar-14

4.1 (i) Contingent Liabilities

- Claims against the Company / disputed liabilities not acknowledged as debts excluding interest payment on such liabilities.

Central Excise Duty 15,29,95,961 13,53,28,694

Service Tax 2,90,27,769 2,90,27,769

Income Tax 2,74,39,479 2,83,81,600

Sales Tax 2,50,320 2,50,320

Civil Court 5,27,119 -

21,02,40,648 19,29,88,383

4.2 (ii) Commitments

- Estimated amount of contracts remaining to be executed on capital account and provided - 3,26,65,472 for

Refer Note no. 29 for segment wise details for discontinued operations.

5 Previous year figures have been regrouped wherever necessary to conform to current year's classification.


Mar 31, 2014

1 Background:

Kaira Can Company Limited is a company incorporated in India under Companies Act, 1956 on March 1st, 1962. The Company started its manufacturing activity as a Private Limited Company at Anand in the state of Gujarat, which later became a public limited company on August 24th, 1964. The Company is engaged in the manufacture of Open Top Sanitary Cans, Lithographed and Plain Metal Containers and Special Containers. The Company is also in the business of manufacturing of Ice Cream Cones since financial year 2000-2001 and processing and packing of Amul milk at Vashi (Discontinued w.e.f. 01.07.2013) . The head office of the Company is situated at Mahalaxmi, Mumbai in the state of Maharastra. The factories are located at Anand, Kanjari, Vithal Udyog Nagar in the State of Gujarat.

2 (i) Nil of the above Nil (Previous Year Nil) shares have been issued for consideration other than cash in five years immediately preceeding the current financial year.

(Nil)

3 (ii) Equity Shares: The Company has issued only 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 proposed by the Board of Directors is subject to the approval of the shareholders, except in case of interim dividend. 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.

4 (i) Working Capital Loans from Bank of Baroda Rs. 10,93,27,191/- (Previous year Rs 11,85,20,632/-) are Secured by Hypothecation of and/or pledge of stock-in-trade, stores, spare parts, other materials and book debts. The cash credit accounts are further secured by the frst charge by way of equitable mortgage on the Company''s immovable properties, both present and future, situated at village Kanjari & Anand office in the state of Gujarat.

(ii) Applicable Rate of Interest is 15.25% p.a. (Previous Year 15.25% p.a.).

5 (i) As per Accounting Standard 15 "Employee benefits", the disclosures as Defined in the Accounting Standard are given below:

Gratuity :

The employees'' gratuity fund scheme managed by Trust is a defined benefit plan. 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 seprately to build up the final obligation.

The Expected rate of return on plan assets is determined considering several applicable factors, mainly the composition of plan assets held, assessed risks, historical results of return on plan assets and the Company''s policy for plan assets management.

The estimates of rate of escalation in salary considered in acturial valuation, take in account inflation, seniority promotion and other relevant factors including supply and demand in the employment market.

The above information is certified by the actuary and relied upon by the auditors.

Provident Fund:

In addition to the above, in accordance with indian regulations, employees of the Company are entitled to receive benefits under the provident fund, a defined contribution plan, in which, both the employee and the company contribute monthly at a determined rate. These contributions are made to the Government Provident Fund.

6 (iv) LEASE

Operating Lease

The Company has taken various residential / Commercial premises and plant and machinery under other than non cancellable operating leases. These lease agreements are normally renewed on expiry. The lease payments recognised in Statement of profit & Loss Account is Rs. 27,71,977/- (Previous year Rs. 89,67,742/-).

7 Exceptional item includes profit on disposal of 100% shares of Subsidiary Company Puma Properties Limited during previous year.

8 (v) The Company does not have any parent company and subsidiary company, hence, the disclosures under clause 32 of listing agreement is not applicable.

9 RELATED PARTY DISCLOSURES

Related party Disclosures as required by Accounting Standard 18 "Related Party Disclosures" notifed in the Companies (Accounting Standard ) Rules, 2006, the disclosure of transactions with the related parties are given below:.

10 DERIVATIVES & HEDGED INSTRUMENTS

31 (i) The Company used forward contracts / currency futures to mitigate its risk associated with foreign currency fluctuations associated with underlying transactions and firm comitments or highly probable forecasted transactions. The Company does not enter into any forward contract which is intended for trading or speculative purposes. However, the Company has entered into Currency Futures which are rolled over till the maturity of the underlying. Futures contracts essentially being short term in nature and are settled without delivery of the underlying, the gains / (losses) on such transactions are accounted under "Gain/(Losses) on currency futures contracts". The details of Currency Futures Contracts outstanding at the year-end is as follows :

11 CONTINGENT LIABILITIES AND COMMITMENTS (Figures in Rs.) As at As at 31-Mar-14 31-Mar-13

12 (i) Contingent Liabilities

- Claims against the Company / disputed liabilities not acknowledged as debts excluding interest payment on such liabilities.

Central Excise Duty 13,53,28,694 8,66,96,608 Service Tax 2,90,27,769 2,90,27,769 Income Tax 2,83,81,600 2,83,81,600 Sales Tax 2,50,320 2,50,320 19,29,88,383 14,43,56,297

13 On 23rd May 2013, the Board Of Directors announced a plan to discontinue MMPD Division , Which is also a separate segment as per AS 17, segment reporting.

The company has already disposed off its all Fixed assets and settled all liabilities as at 31 March, 2014. The carrying amount of assets of the MMPD Division as at 31st March 2014 is Rs. Nil. (Previous year Rs.156.29 lakhs) and its liabilities were Rs.Nil (previous year Rs.103.54 lakhs ). The following statement shows the revenue and expenses of continuing and discontinued Operations.


Mar 31, 2013

1 Background:

Kaira Can Company Limited is a company incorporated in India under Companies Act, 1956 on March 1st, 1962. The Company started its manufacturing activity as a Private Limited Company at Anand in the state of Gujarat, which later became a public limited company on August 24th, 1964. The Company is engaged in the manufacture of Open Top Sanitary Cans, Lithographed and Plain Metal Containers and Special Containers. The Company is also in the business of manufacturing of Ice Cream Cones since financial year 2000-2001 and processing and packing of Amul milk. The head office of the Company is situated at Mahalaxmi, Mumbai in the state of Maharastra. The factories are located at Anand, Kanjari, Vithal Udyog Nagar in the State of Gujarat and Vashi in the state of Maharashtra.

2 (i) Nil Of the above Nil (Previous Year Nil ) shares have been issued for consideration other than cash in five years immediately preceeding the current financial year. (Nil)

2 (ii)Equity Shares: The Company has issued only 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 proposed by the Board of Directors is subject to the approval of the shareholders, except in case of interim dividend. 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.

3 (i) Working Capital Loans from Bank of Baroda Rs. 11,85,20,632/- (Previous year Rs. 6,22,75,066/-) are Secured by Hypothecation of and/or pledge of stock-in-trade, stores, spare parts, other materials and book debts. The cash credit accounts are further secured by the first charge by way of equitable mortgage on the Company''s immovable properties, both present and future, situated at village Kanjari & Anand office in the state of Gujarat.

# There are no Micro, Small and Medium Enterprises, to whom the Company owes dues,which are outstanding for more than 45 days as at 31st March 2013. 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. The auditors have relied on the information provided by the management.

* Some of the Trade Payables balance are subject to confirmation.

# There are no amounts due for payment to the Investor Education and Protection Fund under Section 205C of the Companies Act, 1956 as at the year end.

* Other payables include Statutory dues, Employees contribution, Security / Earnest money deposits, Outstanding liabilities for expenses, Bonus payable, Salaries payable, Employee welfare expenses payable, Rent payable etc.

4 (i) As per Accounting Standard 15 "Employee Benefits", the disclosures as defined in the Accounting Standard are given below:

Gratuity:

The employees'' gratuity fund scheme managed by Trust is a defined benefit plan. 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 separately to build up the final obligation.

Accumulated Compensated absences :

The employees of the Company are also entitled to compensated absence as per the Company''s policy.

The Expected rate of return on plan assets is determined considering several applicable factors, mainly the composition of plan assets held, assessed risks, historical results of return on plan assets and the Company''s policy for plan assets management.

The estimates of rate of escalation in salary considered in acturial valuation, take in account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market.

The above information is certified by the actuary and relied upon by the auditors.

Provident Fund:

In addition to the above, in accordance with indian regulations, employees of the Company are entitled to receive benefits under the provident fund, a defined contribution plan, in which, both the employee and the company contribute monthly at a determined rate. These contributions are made to the Government Provident Fund.

5 (iv) LEASE Operating Lease

The Company has taken various residential / Commercial premises and plant and machinery under other than non cancellable operating leases. These lease agreements are normally renewed on expiry. The lease payments recognised in Profit & Loss Account is Rs. 89,82,942/- (Previous year Rs. 90,19,280/-). Future minimum lease payable under Cancellable Operating Leases are as follows :

6 Exceptional item includes Profit on disposal of 100% shares of Subsidiary Company Puma Properties Limited.

7 DERIVATIVES & HEDGED INSTRUMENTS

The Company uses forward contracts to mitigate its risk associated with foreign currency fluctuations having underlying transactions and relating to firm commitments or highly probable forecasted transactions. The Company does not enter into any forward contract which is intended for trading or speculative purposes.

(Figures in Rs.)

As at As at 31-Mar-13 31-Mar-12

8 (i) Contingent Liabilities

- Claims against the Company / disputed liabilities not acknowledged as 12,94,74,073 6,60,00,091 debts excluding interest payment on such liabilities.

9 The Company has been processing and packing Amul milk at its unit located at Vashi in the state of Maharastra for M/s Kaira District Co-operative Milk Producers'' Union Ltd (Amul Dairy) and the Amul milk is being marketed by M/s Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF). Amul Dairy has established a new state of art milk processing and packing plant at Virar, Maharastra with huge capacity. Amul Dairy and GCMMF have indicated that in view of the new milk processing and packing plant at Virar they will gradually shift the processing and packing of milk from the Company to the new plant at Virar and they will not be able to supply any milk to the Company in future for processing and packing once the new Virar plant is fully operational. In view of these developments the Company''s MMPD division is likely to become uneconomical and unviable in future. Subsequent to closure of financial year 2012-13, it has been decided to close the MMPD division once the operations become uneconomical permanently. Due to complexity of operations, uncertainty of future events, many variable factors and pending negotitaions with other stake holders, financial impact is not quantified.

10 Comparative financial information (i.e. the amounts and other disclosures for the preceding year presented above), is included as an integral part of the current years'' financial statements, and is to be read in relation to the amounts and other disclosures relating to the current year. Figures of the previous year have been regrouped / reclassified wherever necessary to correspond to figures of the current year.


Mar 31, 2012

1 Background:

Kaira Can Company Limited is a company incorporated in India under Companies Act, 1956 in the year 1962. The Company started its manufacturing activity as a Private Limited Company at Anand in the state of Gujarat, which later became a public limited company in 1971. The Company is a prominent player in the business of Metal packaging. The head office of the Company is situated at Mahalaxmi, Mumbai in the state of Maharastra. The factories are located at Anand, Kanjari, Vithal Udyog Nagar in the State of Gujarat and Vashi in the state of Maharashtra.

2 (i) Nil Shares out of the issued, subscribed and paid up share capital were allotted as Bonus Shares in the last five years by capitalisation of reserves.

(Nil)

2 (ii) Equity Shares: The Company has issued only 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 proposed by the Board of Directors is subject to the approval of the shareholders, except in case of interim dividend. 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.

3 (i) As per Accounting Standard 15 "Employee Benefits", the disclosures as defined in the Accounting Standard are given below: Gratuity:

The employees' gratuity fund scheme managed by Trust is a defined benefit plan. 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 separately to build up the final obligation.

4 DERIVATIVES & HEDGED INSTRUMENTS

The Company uses forward contracts to mitigate its risk associated with foreign currency fluctuations having underlying transactions and relating to firm commitments or highly probable forecasted transactions. The Company does not enter into any forward contract which is intended for trading or speculative purposes.

5 CONTINGENT LIABILITIES AND COMMITMENTS (Figures in Rs.)

As at As at 31-Mar-2012 31-Mar-2011

5(i) Contingent Liabilities

- Claims against the Company / disputed liabilities not acknowledged as debts 4,50,78,910 3,29,80,085

5(ii) Commitments

- Estimated amount of contracts remaining to be executed on capital account and provided for 3,64,45,354 7,17,16,047

6 During the year ended 31st March 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the Company, for preparation and presentation of its financial statements. The adoption of Revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

7 Comparative financial information (i.e. the amounts and other disclosures for the preceding year presented above), is included as an integral part of the current years' financial statements, and is to be read in relation to the amounts and other disclosures relating to the current year. Figures of the previous year have been regrouped / reclassified wherever necessary to correspond to figures of the current year.


Mar 31, 2011

Current year Previous year

Rupees Rupees

Segment Information:

(A) Primary Segment Reporting (by Business Segment)

(i) Composition of Business Segments

The Companys business segments based on product lines are as under:

Tin Containers

Segment manufactures Open Top Sanitary Cans, General Line Metal Containers and Components for Metal Containers.

Ice Cream Cones

Segment manufactures Rolled Sugar Cones for flling Ice cream.

Milk & Milk Products Division

Segment processes Milk for the brand name of Amul.

10. Leases

Operating Lease

The Company has taken various residential / Commercial premises and plant and machinery under other than non cancellable operating leases. These lease agreements are normally renewed on expiry. The lease payments recognised in Profit & Loss Account is Rs. 90,92,598/- (Previous year Rs. 84,14,861/-).

The Company has given residential / Commercial premises under other than non cancellable operating leases. These lease agreements are normally renewed on expiry. The lease receipts recognised in Profit & Loss Account is Rs. Nil/- (Previous year Rs. 4,50,968/-).

11. There are no Micro, Small and Medium 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 identifed on the basis of information available with the company. The auditors have relied on the information provided by the management.

13. The Company uses forward contracts to mitigate its risk associated with foreign currency fuctuations having underlying transactions and relating to frm commitments or highly probable forecasted transactions. The Company does not enter into any forward contract which is intended for trading or speculative purposes.

14. Excise Duty shown under expenditure represents the aggregate of excise duty borne by the Company and difference between excise duty on opening and closing stock of fnished goods.

15. Disclosures as per Accounting Standard 15 (Revised)

Gratuity:

The employees gratuity fund scheme managed by Trust is a defned benefit plan. 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 separately to build up the fnal obligation.

The expected rate of return on plan assets is determined considering several applicable factors, mainly the composition of plan assets held, assessed risks, historical results of return on plan assets and the Companys policy for plan assets management.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account infation, seniority, promotion and other relevant factors including supply and demand in the employment market.

The above information is certifed by the actuary and relied upon by the auditors.

Provident fund:

In addition to the above, in accordance with Indian regulations, employees of the Company are entitled to receive benefits under the provident fund, a defned contribution plan, in which, both the employee and the Company contribute monthly at a determined rate. These contributions are made to the Government Provident Fund.

16. Comparative financial information (i.e. the amounts and other disclosures for the preceding year presented above), is included as an integral part of the current years financial statements, and is to be read in relation to the amounts and other disclosures relating to the current year. Figures of the previous year have been regrouped / reclassifed wherever necessary to correspond to fgures of the current year.



 
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