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Notes to Accounts of Kaira Can Company Ltd.

Mar 31, 2016

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

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.

* Deposit includes deposit received from Directors amounting to Rs. 10,50,000/- ( Previous Year Rs. Nil /- ) and from Shareholders Rs. 1,89,80,000/- (Previous Year Rs. 61,60,000/- ). Fixed Deposits having maturity of two years amounting to Rs. 67,85,000/- (Previous year Rs. Nil/-) and three years amounting to Rs. 1,32,45,000/- ( Previous year Rs. 61,35,000/- ) .

Nature of Security and terms of repayment for Secured Borrowings:

Nature of Security Terms of Repayment

Term Loan from Canara Bank amounting to Rs. Nil, Repayable in 54 monthly installments of Rs. 9.75 lacs

(Previous year Rs.1,44,75,000/- ) were secured by each (except last installment of Rs. 8.75 lacs) starting from

creating charge on Machines acquired by availing Jan. 2012 and pending on June 2016. Rate of interest -

Term Loan. 14.40% p.a.(Previous year 14.95% p.a.)( Note : fully repaid

during the year)

Term Loan from Kotak Mahindra Bank Ltd. amounting Repayable in 26 EMI* to Kotak Mahindra Bank Ltd. of

to Rs. 1,03,03,274/- , (Previous year Rs. 1,88,16,329/- Rs. 8.53 lacs each (except last EMI of Rs. 8.35 lacs)

) are secured Hypothecation of existing and future starting from Mar. 2015 and ending on April 2017. Rate

tangible and current assets & movable fixed assets of of interest 11.25% p.a. (Previous year 11.75% p.a. )

Ice Cream Cone Division at GIDC, Vitthal Udhyog * emi is inclusive of Interest components. nagar, Karamsad, Anand, in the state of Gujarat.

Auto Loans from Kotak Mahindra Prime Ltd. Repayable in 36 EMI to Kotak Mahindra Prime Ltd. from

Rs. 50,22,370/- (Previous year Rs. 19,91,412/-) . September 2013 - Mar 2016 and ending on Aug 2016 -

Auto Loans are Secured by Hypothecation of vehicles Feb 2019. Rate of interest to Kotak Mahindra Prime Ltd.

financed by the Auto Loan. 9.41% - 10.50% p.a. (Previous Year 10.25% - 11.00% p.a.)

Terms of repayments for unsecured borrowings:

Borrowing Terms of Repayment

Fixed Deposits Rs. 2,00,30,000/- Repayable within 2 - 3 years from the date of issue and

(Previous year Rs. 1,44,90,000/-) not on demand or notice exce^ at the discretion of the

'' '' '' Company. Rate of Interest 10.00% p.a. for 3 year deposit

and 9.50% p.a. for for 2 year deposit (Previous year for 3

year deposit 10.50% p.a. and for 2 year deposit 10.00%

_ pa.)_

3. Deferred tax of Rs. Nil (Previous year Rs. 4,03,229/- ) adjusted against general reserve, on account of assets whose useful life is already exhausted as on April 1, 2014. (Refer Note 4.1).

4. (i) Cash Credit from Bank of Baroda and DBS Bank Ltd. are Secured by way of a pari passu charge by Hypothecation of Stocks of raw material, Work-in-Progress, Finished Goods, Book Debts, Stores & Spares and Movable Machinery at Kanjari and Anand. The cash credit accounts are further secured by the first charge by way of equitable mortgage on the Company''s factory land and building of Metal Can Division situated at village Kanjari & Office premises situated at Anand, in the state of Gujarat.

Applicable Rate of Interest is ranging from 11.10% p.a. to 11.65% p.a. (Previous Year 13.00% p.a.).

(ii) Overdraft facility from Kotak Mahindra Bank Ltd. Rs. 2,20,17,237/- (Previous year Rs. 2,28,53,091/- ) are Secured by Hypothecation of existing and future tangible and current assets & movable fixed assets of Ice Cream Cone Division. The Overdraft facility is further secured by the equitable mortgage over factory / land and building situated at GIDC, Vitthal Udhyog nagar, Karamsad, Anand, in the state of Gujarat.

Applicable Rate of Interest is 11.25% p.a. (Previous Year 11.75% p.a. )

# There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at March 31, 2016. 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, Outstanding liabilities for expenses, Bonus payable, Salaries payable, Employee welfare expenses payable etc.

(i) Buildings include Rs. 42,02,801/- (as at 31-03-2011 Rs. 42,02,801/-) being the cost of ownership flats in a Co-operative Society.

(ii) In previous year, Consequent to Schedule II to the Companies Act, 2013 becoming applicable w.e.f. April 01, 2014, Depreciation of Rs. 8,39,579/- (net of deferred tax of Rs. 4,03,229/- ) on account of assets whose useful life is already exhausted as on 1st April, 2014 have been adjusted to General Reserve. (Refer Note 4.1 and 6.1).

(iii) In previous year, the Company revised the depreciation rate on certain fixed assets as per useful life specified in Schedule II of Companies Act, 2013 on account of which depreciation for the previous year is higher by Rs. 82,46,498/-

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 recognizes 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.

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 actuarial 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.

* Excludes Company''s Contribution to Gratuity Fund and Provision for Compensated Absences made on the basis of actuarial valuation for company as whole.

6. (iii) 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 recognized in Statement of Profit & Loss Account is Rs. 5,39,883/- (Previous year Rs. 4,67,136/-).

7. (iv) CSR EXPENSES

a Gross amount required to be spent by the Company during the year is Rs. 13,38,000/- (Previous Year Rs. 12,36,061/- )

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.

8 (v) The Company does not have any parent company and subsidiary company, hence, the disclosures under Regulation 34 of SEBI ( Listing obligations and Disclosure Requirements) Regulations, 2015 is not applicable.

* It includes Profit / Loss on sale of Fixed Assets.

# This does not include amount of Share capital and Reserves & Surplus.

Note - Segment revenue, results, assets and liabilities include amounts that are directly attributable to the respective segments. Amounts not directly attributable have been allocated to the segments on the best judgment of the management. Expenses not directly allocable to the segments are treated as "Unallowable Expenses".

9. 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:.

10 (i) List of related parties where control exists and related parties with whom transaction have taken place and relationship:

Sr. Name of Related party Relationship

No.___

A Key Management Personnel and their relatives:

i Mr. Ashok B. Kulkarni Managing Director

ii Mr. K. Jagannathan Executive director, Chief Financial Officer

iii Mrs. Nayana A. Kulkarni Relative of Managing Director

iv Mr. Bhaskar M. Kulkarni Relative of Managing Director

v Mrs. Saraswathi Jagannathan Relative of Executive director

vi Ms. Swetha Jagannathan Relative of Executive director B Other Related Parties:

i M/s. Gujarat Co-Op. Milk Marketing Federation Ltd. Enterprise having significant influence on the Company

_ (GCMMF)__

Note : Related party relationship is identified by the Company and relied upon by the auditor

11 DERIVATIVES & HEDGED INSTRUMENTS

12. (i) The Company used forward contracts / currency futures to mitigate its risk associated with foreign currency fluctuations associated with underlying transactions and firm commitments 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 :

13 Previous year figures have been regrouped wherever necessary to conform to current year’s classification.


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.


Mar 31, 2010

Current Year Previous Year Rupees Rupees

1. Estimated amount of Contracts remaining to be executed on Capital Account and not Provided for:

Intangible Assets 94,100 --

2. Contingent Liabilities in respect of:

(i) Disputed demands of Central Excise Department not provided for 1,64,16,184 1,51,58,543

Advance paid against said liability 7,00,000 7,00,000

Note :ln the opinion of the management, demand of Central Excise is not likely to materialise into the liability. However, even if the Company is called upon to pay the amount demanded by the Central Excise, the same is fully recoverable from customers concerned in terms of agreement / contract entered into with the respective customers.

(ii) Disputed demands of Sales Tax Authorities not provided for 2,50,320 2,50,320

Advance paid against said liability 1,00,000 1,00,000

(iii) Disputed demands of Income - tax department not provided for 1,91,41,461 1,76,52,035

Amount adjusted by Income - tax department out of refunds of subsequent assessment years. 77,87,387 77,87,387

In respect of items mentioned above, till the matters are finally decided the financial effect cannot be ascertained.

3. Export Benefits/Incentives are accounted on accrual basis. Accordingly, estimated import duty benefit aggregating to Rs. Nil (Previous year Rs. 13,02,543/-) against Exports effected during the year has been taken into account for the year as incentive accruing in respect of duty free imports of Raw Materials. (Previous year The Company has imported Raw Materials and availed the balance import duty benefit to the extent of Rs. 13,02,543/- has been received till 31-03-2010)

4. Loans and Advances (Schedule 10) include an amount of Rs. Nil (Previous Year Rs.43,43,683/-) being insurance claims recoverable from an Insurance Company in respect of loss/damage to raw materials and finished goods during transit and remaining outstanding since the financial year ended 31st March, 1991. Since the said insurance claims involving substantial amounts remained to be settled by the Insurance Company for a long time, the Company has filed a suit against the Insurance Company in Honble Mumbai High Court for recovering the claims which is pending disposal by the High Court. In view of the above, the realisable amount cannot be ascertained with reasonable accuracy. Under the circumstances, the pending claims are written off during the year in the accounts.

5. Debtors and Creditors balances are subject to balance confirmation

6. 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 filling Ice cream.

• Milk & Milk Products Division

Segment processes Milk for the brand name of Amur.

7. Related Party disclosures

Related party disclosures as required by (AS 18) Related Party Disclosures notified in the Companies (Accounting Standard) Rules, 2006.

1. Subsidiary : Puma Properties Ltd.

2. Key management personnel & relatives of such personnel:

Mr. Ashok B. Kulkarni Managing Director

Mrs. Nayana A. Kulkarni Relative of Managing Director

Mr. Atul B. Kulkarni Relative of Managing Director

Mrs. Smita B. Kulkarni Relative of Managing Director

Mr. K. Jagannathan Executive Director

Mrs. Saraswathi Jagannathan Relative of Executive Director

3. Other related party where there have been transactions :

Enterprise which has significant influence on the Company: Gujarat Co-op. Milk Marketing Federation Ltd. (GCMMF)

8. 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.84,14,861/- (Previous year Rs. 86,67,887/-).

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. 4,50,968/- (Previous year Rs. 6,30,000/-).

9. There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at 31s March 2010. 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.

10. 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.

11. 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 finished goods.

12. Disclosures as per Accounting Standard 15 (Revised)

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.

13. 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.

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