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Notes to Accounts of Kaira Can Company Ltd.

Mar 31, 2018

1 Background:

Kaira Can Company Limited is a company incorporated in India on March 1, 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 20002001 and processing and packing of Amul milk at Vashi (Discontinued w.e.f. July 1,2013) . The head office of the Company is situated at Mahalaxmi, Mumbai in the state of Maharashtra. The factories are located at Kanjari and Vithal Udyog Nagar in the State of Gujarat.

The above property is valued at deemed Cost, as per Ind AS 101 whereas the market value of the investment property is As at March 31, 2018, March 31, 2017 and April 1, 2016 the fair value of the property are Rs. 308.04 lakhs, Rs. 280.04 lakhs and Rs. 254.58 lakhs respectively. These fair value of the investment property are categorised as level 2 in the fair valuation hierarchy and has been determined by external, independent valuer, having approprate recognised professional qualifications and recent experience in the location and the category of the property being valued.

These valuations are based on valuation performed by Anmol Sekhri Consultants Pvt. Ltd. on accredited independent valuer and has been worked out the value of the property based on the information’s and study of Micro market in discussion with industry experts, local brokers and regional developers.

2. No shares have been issued for consideration other than cash in five years immediately preceeding the current financial year, financial year 2016-17 and financial year 2015-16.

3. 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 recommended 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. The Board of Directors has recommended a dividend of Rs. 6.50 per share (March 31, 2017 : Rs. 5 per share, April 1, 2016: Rs. 5 per share) which is subject to approval of shareholders and subject to dividend distribution tax at applicable rate.

5. 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 10.15% p.a. to 11.85% p.a. (March 31, 2017: 10.35% p.a. to 10.40% p.a. , April 01, 2016: 11.00% p.a. to 11.65% p.a.).

6. Company has taken the Short term Working Capital Demand Loan of Rs. Nil (March 31, 2017: Rs. 400 lakhs, April 01, 2016: Rs. Nil) from DBS Bank at interest @ Nil (March 31, 2017: 8.90%, April 01, 2016: Nil). Refer 23.1 for security details.

7. Overdraft facility from Kotak Mahindra Bank Ltd. Rs. 125.06 lakhs (March 31, 2017: Rs. 1.21 lakhs, April 01, 2016: Rs. 220.17 lakhs) 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 9.75% (March 31, 2017: 11.05% p.a., April 01, 2016 : 11.25% p.a.)

8. Due to Micro and Small Enterprises

Micro and small enterprises as defined under the Micro Small and Medium Enterprises Development Act 2006 (MSMED Act) have been identified by the Company on the basis of the information available with the Company. The disclosures pursuant to MSMED Act based on the books of account are as under:

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, 2018. 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.

9A Disclosure as required under Ind AS 19 - Employee Benefits

[A] Defined contribution plans:

The Company makes contributions towards provident fund and superannuation fund to defined contribution retirement benefit plan for qualifying employees. The provident fund contributions are made to Government administered Employees Provident Fund. Both the employees and the Company make monthly contributions to the Provident Fund Plan equal to a specified percentage of the covered employee''s salary.

The superannuation fund is administered by the Life Insurance Corporation of India. Under the plan, the Company is required to contribute a specified percentage of the covered employee''s salary to the retirement benefit plan to fund the benefits.

The Company recognised Rs.55.02 lakhs (March 31, 2017: Rs. 56.80 lakhs, April 1, 2016: Rs.59.21 lakhs) for provident fund contributions in the Statement of Profit and Loss.

[B] Defined benefit plan:

The Company makes annual contributions to "Kaira Can Employees Gratuity Fund", a funded defined benefit plan for qualifying employees. The scheme provides for payment to vested employees as under:

i) On normal retirement / early retirement / withdrawal / resignation: As per the provisions of Payment of Gratuity Act, 1972 with vesting period of 5 years of service.

ii) On death in service: As per the provisions of Payment of Gratuity Act, 1972 without any vesting period.

The following table sets out the status of the gratuity plan and the amounts recognised in the Company''s financial statements as at March 31, 2018.

10. The Company was required to spend an amount of Rs. 8.20 lakhs (Previous Year Rs. 11.00 lakhs) being 2% of the average net profits of the three immediately preceding financial years on CSR as per the provisions of section 135 of the Companies Act, 2013. The Company has during the year spent Rs. 8.50 lakhs (Previous Year Rs. 11.00 lakhs) only. The Concerned Expenditure has been paid and debited to the following heads as below :

11. SEGMENT INFORMATION

(1) Primary Segment Reporting (by Business Segment)

- Composition of Business Segments - Based on product lines are as under:

Business Segment Product Line

(i) Tin Containers Segment manufactures Open Top Sanitary Cans, General Line Metal

Containers and Components for Metal Containers.

(ii) Ice Cream Cones Segment manufactures Rolled Sugar Cones for filling Ice cream.

12. Related party transactions as per Ind AS 24

The disclosure of related party transactions is presented as per "Indian Accounting Standard (Ind AS) 24 Related Party Disclosures" on an aggregate basis for shareholders, their relatives and companies controlled by shareholders. In addition, there may be additional disclosures of certain significant transactions (balances and turnover) with certain related parties.

13. Financial instruments - Fair values and risk management

A. Accounting classification and fair values

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.

FVTPL - Fair Value Through Profit and Loss

FVTOCI - Fair Value Through Other Comprehensive Income

The carrying amounts of trade receivables, electricity deposit, cash and cash equivalents and other short term receivables, trade payables, unclaimed dividend, borrowings, capital creditors and other current financial liabilities are considered to be the same as their fair values, due to their short-term nature.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

B Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments.

- the fair value of forward foreign exchange contracts is determined using forward exchange rate as at the balance sheet date.

14. Financial risk management and policies

The company''s activities expose it to market risk, liquidity risk and credit risk. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk.

The company''s risk management is carried out by finance department of the Company. The Finance department identifies, evaluates and hedges financial risks in close co-operation with the Company''s operating units. The Board provides written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.

(a) Credit Risk

Credit risk is the risk of incurring a loss that may arise from a borrower or debtor failing to make required payments. Credit risk arises mainly from outstanding receivables from debtors, cash and cash equivalents, employee advances and security deposits. The Company manages and analyses the credit risk for each of its new clients before standard payment and delivery terms and conditions are offered.

(i) Credit risk management

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer and including the default risk of the industry, also has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of default occurring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding-looking information such as:

i) Actual or expected significant adverse changes in business;

ii) Actual or expected significant changes in the operating results of the counterparty;

iii) Financial or economic conditions that are expected to cause a significant change to the counterparty''s ability to meet its obligations;

iv) Significant increase in credit risk on other financial instruments of the same counterparty;

v) Significant changes in the value of the collateral supporting the obligation or in the quality of the third-party guarantees or credit enhancements.

Financial assests are written off when there is no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized as income in the statement of profit and loss.

The Company measures the expected credit loss of trade receivables based on historical trend, industry practices and the business environment in which the entity operates. We have evaluated percentage of allowance for doubtful debts with the trade receivables over the years:

(b) Liquidity Risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company ensures sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the dynamic nature of the underlying businesses, the Treasury maintains flexibility in funding by maintaining availability under committed credit lines. Management monitors rolling forecasts of the Company''s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows.

(ii) Maturities of financial liabilities

The tables herewith analyse the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities for: The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

(c) Market risk

(i) Foreign currency risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect the Company''s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. The risk is measured through a forecast of foreign currency for the Company''s operations. The Company’s exposure to foreign currency risk at the end of the reporting period expressed in INR, are as follows:

(d) Capital Management Risk Management

The Company''s objectives when managing capital are to

- safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

- maintain an optimal capital structure to reduce the cost of capital.

Currently, there are no borrowings ; and operations are being funded through internal accruals.

15. Disclosure as required by Ind AS 101 first time adoption of Indian Accounting Standards Transition to Ind AS

These are the Company''s first Financial Statements prepared in accordance with Ind AS.

The accounting standards notified u/s 133 of the Companies Act, 2013 and the Accounting policies set out in note 2 have been applied in preparing the financial statements for the year ended March 31, 2018, the comparative information presented in these financial statements for the year ended March 31, 2017 and in the preparation of an opening Ind AS balance sheet at April 1, 2016 (The Company''s date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP).

An explanation of how the transition from previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows is set out in the following tables and notes.

A. Exemptions and exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied by the Company in the transition from previous GAAP to Ind AS.

A.1.1 Ind AS optional exemptions

Ind AS 101 permits a first time adopter to elect to continue with the carrying value for all of its Property, Plant and Equipment (PPE) as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for decommissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets and for Investment property covered by Ind AS 40 Investment Property. Accordingly, the Company as elected to measure all of its PPE, Intangible assets and Investment Property at their previous GAAP carrying value.

A.1.2 Designation of previously recognized financial instruments

Ind AS 101 allows an entity to designate investments in equity instruments at Fair Value through Other Comprehensive Income (FVOCI) on the basis of the facts and circumstances at the date of transition to Ind AS. The Company has elected to apply this exemption for its investment in equity investments.

A.2 Ind AS Mandatory Exceptions

A.2.1 Estimates

An entity''s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error. Ind AS estimates as at April 1, 2015 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:

- Investment in equity instruments carried at FVOCI and

- Investment in mutual funds carried at Fair Value through Profit and Loss (FVPL).

A.2.2 De-recognition of financial assets and liabilities

Ind AS 101 requires a first time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first time adopter to apply the de-recognition requirements in Ind AS 109 retrospectively from a date of the entity''s choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognized as a result of past transactions was obtained at the time of initially accounting for those transactions.

The Company has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.

A.2.3 Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

B. Reconcliations between previous GAAP and Ind AS

The following tables represent the reconciliations of Balance Sheet, Total Equity, Total Comprehensive Income and Cash Flows from previous GAAP to Ind AS.

C. Notes to First time adoption

1 Fair valuation of investments

Under the previous GAAP, investments in equity instruments and mutual funds were classified as long-term investments or current investments based on the intended holding period and realisability. Long-term investments were carried at cost less provision for other than temporary decline in the value of such investments. Current investments were carried at lower of cost and fair value. Under Ind AS, these investments are required to be measured at fair value. The resulting fair value changes of these investments (other than equity instruments designated as at FVOCI) have been recognized in retained earnings as at the date of transition and subsequently in the profit and loss for the year ended March 31, 2017. This increased the retained earnings by Rs. 0.60 lakhs as at March 31, 2017 (April 1, 2016 -Rs. 2.69 lakhs).

Fair value changes with respect to investments in equity instruments designated as at FVOCI have been recognized in FVOCI Equity Investments reserved as at the date of transition and subsequently in the other comprehensive income for the year ended March 31, 2017. This increased other reserves by Rs. 0.71 lakhs as at March 31, 2017 (April 1, 2016 - Rs.2.03 lakhs).

2 Expected Credit Loss provisioning

Under previous IGAAP, provision for bad and doubtful debts has been made as per Company''s policy. Under Ind AS, trade receivables are required to be tested for expected credit loss, if any. Accordingly an impairment allowance has been determined based on Expected Credit Loss model (ECL). A provision of Rs. 5.25 Lakhs is credited as at March 31, 2017. Accodingly there is decrease in total retained earning by Rs. 3.51 lakhs as at March 31, 2017.

3 Other Income: Recognition of MEIS

MEIS Income recognised in current year is amounting to Rs. 32.13 lakh (net of tax) but as per Ind AS 101 read with Ind AS 8, it has been reclassified on accrual basis to the year it pertains i.e.amounting to Rs. 8.96 lakh (net of tax) for March 31, 2017 and Rs. 7.63 lakh (net of tax) for April 1, 2016.

4 Proposed Dividend and Corporate Dividend Tax

Under Previous GAAP, Proposed Dividend was recorded as a liability in the period to which it relates. Under Ind AS, dividend to holders of equity instruments is recognized as a liability in the period in which the obligation to pay is established (post approval of shareholders in the AGM). As a result, the Proposed Dividend of Rs. 46.11 Lakh and CDT of Rs. 9.39 Lakh has been added back to "Other Equity". and deducted from "Provisions".

5 Excise Duty

Under the previous GAAP, revenue from sale of products was presented exclusive of excise duty. Under Ind AS, revenue from sale of goods is presented inclusive of excise duty. The excise duty paid is presented on the face of the Statement of Profit and Loss as part of expenses. This change has resulted in an increase in total revenue and total expenses for the year ended March 31, 2017 by Rs.1,316.63 lakhs. There is no impact on the total equity and profit.

6 Remeasurements of post-employment benefit obligations

Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognized in other comprehensive income instead of profit and loss. Under the previous GAAP, these remeasurements were forming part of the profit and loss for the year. As a result of this change, the profit for the year ended March 31, 2017 decreased by Rs. 6.15 lakhs . There is no impact on the total equity as at March 31, 2016.

7 Deferred tax

Deferred tax have been recognized on the adjustments made on transition to Ind AS.

8 Retained Earnings

Retained earnings as at April 1, 2016 has been adjusted consequent to the above Ind AS adjustments.

9 Other Comprehensive Income

Under Ind AS, all items of income and expense recognized in a period should be included in Statement of Profit and Loss for the period, unless a standard requires or permits otherwise. Items of income and expenes that are not recognized in Statement of Profit and Loss but are shown in the Statement of Profit and Loss as “Other Comprehensive Income”, includes remeasurement of Employee Benefit obligation and fair valuation of Equity Instruments through OCI and Income tax relating to these items. The concept did not exist under the previous GAAP.

16. Standards Issued but not yet effective.

The standard issued, but not yet effective up to the date of issuance of the company financial statement is disclosed below. The Company intends to adopt the standard when it becomes effective.

Ind AS 115 Revenue from Contracts with Customers

Ind AS 115 was issued in February 2015 and establishes a five step model to account for revenue arising from contracts with customers. Under Ind AS 115 revenue is recognized at an amount that reflects the consideration to which an entity expects to be entitled for transferring goods or services to a customer. The new revenue standard will supersede the current revenue recognition requirements under Ind AS. The standard comes into force from accounting period commencing on or after 1st April, 2018. The Company will adopt the new standard on the required effective date. The Company is in process of examining the applicability of the standard.

17. For all periods upto and including the year March 31, 2017 the company prepared its financial statements in accordance with the accounting standard prescribed under Section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP).

18. The financial statements were authorized for issue in accordance with a resolution passed by the Board of Directors on May 28, 2018.

19. The figures as on the transition date and previous year have been re-arranged and regrouped wherever necessary and/ or practicable to make them comparable with those of the current year.


Mar 31, 2017

1 SHARE CAPITAL

(i) 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.

(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.

(iii) The Details of Shareholders holding more than 5% of total no. of shares in the Company

(iv) Reconciliation of No. of shares outstanding at the beginning and end of the reporting period.

Note : For Financial Year 2016-17, the Board of Directors have recommended a dividend of Rs. 5/- per share, which is subject to approval of the shareholders. Further, the same is subject to Dividend distribution tax at the applicable rate which works out to Rs. 9,38,732/- .

2 LONG TERM BORROWINGS

*Deposit from Shareholders includes deposit received from Directors amounting to Rs. 10,50,000/- (Previous Year Rs. 10,50,000/-) and from other Shareholders Rs. 2,26,25,000/- (Previous Year Rs. 1,89,80,000/-). Fixed Deposits maturing between one to two years amounting to Rs. 1,32,45,000/- (Previous year Rs. 67,85,000/-) and maturing between two to three years amounting to Rs. 36,45,000/- (Previous year Rs. 1,32,45,000/-)

3 (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 10.35% p.a. to 10.40% p.a. (Previous Year 11.10% p.a. to 11.65% p.a.).

(ii) Company has taken the Short term Working Capital Demand Loan of Rs. 4,00,00,000/- (Previous Year Nil/- ) from DBS Bank for 2 months & 3 days at interest @ 8.90% p.a. (Previous Year Nil/- ). Refer 8 (i) for security details.

(iii) Overdraft facility from Kotak Mahindra Bank Ltd. Rs. 1,21,063/- (Previous year Rs. 2,20,17,237/- ) 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 11.05% p.a. (Previous Year 11.25% 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, 2017. 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.

4 OTHER CURRENT LIABILITIES

# There are no amounts due for payment to the Investor Education and Protection Fund 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.

NOTE:

(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.

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.

6 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. 3,32,975/- (Previous year Rs. 5,39,883/-).

7 CSR EXPENSES

a Gross amount required to be spent by the Company during the year is Rs. 10,91,000/- (Previous Year Rs. 13,38,000/- )

b Amount spent ( included in donations) during the year on :

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 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.

9 SEGMENT INFORMATION

Primary Segment Reporting (by Business Segment)

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 "Unallocable Expenses".

10 DERIVATIVES & HEDGED INSTRUMENTS

11 (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 / (Loses) on currency futures contracts". The details of Currency Futures Contracts outstanding at the year-end is as follows :

Note: For the purposes of this note, the term ''Specified Bank Notes'' shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E), dated the 8th November, 2016.

* This includes Rs. 250/- towards Misc. receipts and balance amount of Rs.12,82,000/- towards amount withdrawan from the Bank''s.

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


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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