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Notes to Accounts of Kriti Industries (India) Ltd.

Mar 31, 2015

1.1 Corporate Information

Kriti Industries (India) Ltd., a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956 on 09.11.1995 and having its Registered office in Indore (MP). The company's shares are listed in the Bombay Stock Exchange (BSE).

2. In the opinion of the Board of Directors of the Company, the Current Assets, Loans and Advances have a value realizable in the ordinary course of business at least equal to the amount at which they are stated and provisions for all known liabilities are adequate and notin excess of the amount reasonably necessary.

3. Contingent liabilities

3.1 Estimated amount of contracts remaining to be executed on Capital Account Rs. 23.62 lacs net of advance given (Previous Year Rs. 0.41 lacs)

3.2 Bank has given guarantee on behalf of the Company to various parties to the extent of Rs.2149.61 lacs (Previous Year Rs. 1610.80 lacs.)

3.3 Claims not acknowledge by the company on Commercial tax matters Rs 255.89 Lacs (Previous Year 214.40Lacs).

4. Company's Income tax assessments have been completed up to Assessment year 2012-13. IncomeTax Dept. has raised a demand of Rs.176.41 lacs for A.Y.2012-13 and Rs.133.07 lacs for A.Y.2011-12 respectively against which company has filed appeal before CIT (A). Company has not made any provision against such demand and shall be dealt with in books when crystallized finally. In the opinion of Board of Director's provision made for the year for Income Tax is adequate.

5. Unpaid overdue amount due on March 31, 2015 to Micro Small and Medium Enterprises and/or ancillary industrial suppliers on account of principal together with interest aggregate to Rs. Nil.

This disclosure is on the basis of the information available with the company regarding the status of the suppliers as defined under the Micro, Small and Medium Enterprises Development Act, 2006.

6. The amount of Foreign Exchange gain/(loss) included in the profit & loss account is Rs. (32.03) lacs (Previous Year gain/ (loss) Rs. (71.42) lacs).

7. There was fire in factory premises of the company in F.Y.2012-13in which finished goods were destroyed. Company had filed claim with Insurance Company for Rs. 275 lacs, During the year company received Rs. 191.48 lacs towards final claim from Insurance Company and thus company has suffered loss of Rs. 83.52 lacs, which has been accounted for in the year end and grouped under other expenses.

8. The disclosure required as per Accounting Standard (AS) 15 "Employees Benefit" issued by the Institute of Chartered Accountants of India (ICAI) and as specified under section 133 of the Companies Act, 2013 (The Act) read with rule 7 of the Companies (Accounts) Rules, 2014., and based on the report generated by Life Insurance Corporation of India (LIC) isasunder

(a) The company has taken Group Gratuity and Cash Accumulation Policy issued by the LIC, which is a defined benefit plan.

9. The Company has taken various commercial premises under cancellable operating leases. These lease agreements are normally renewed on expiry.

10. During the current year the Company has implemented Schedule II of the Companies Act, 2013 and accordingly computed the depreciation based on revised useful life of the fixed assets as prescribed under schedule II of the Act. The carrying value of the Fixed Assets which have completed their useful life as on 1st April 2014, have been charged off againstthe General Reserve at Rs.37.15 lacs.

Had there not been any change in useful life of the Fixed Assets, the depreciation would have been higher by Rs.55.22 lacs and therefore the profit would have been lower by Rs.55.22 lacs.

11. In accordance with the Accounting Standard (AS) 18 "Related Party Disclosures" issued by The Institute of Chartered Accountants of India (ICAI) and as specified under section 133 of the Companies Act, 2013 (The Act) read with rule 7 of the Companies (Accounts) Rules, 2014.The names of the related parties and the relevant disclosure is as under:-

(a) Name of the related party and description of relationship:

i. Key Management Personnel:

Shri ShivSingh Mehta, Managing Director Smt. Purnima Mehta, Executive Director Shri V.K. Mittal, Chief Financial Officer Shri Satish Patel, Company Secretary

ii. Relatives of Key Management Personnel

Shri Saurabh Singh Mehta (Son of Managing Director/ Executive Director)

Smt. Devki Hirawat (Daughter of Managing Director/ Executive Director)

iii. Subsidiary Company

1) Kriti Auto & Engineering Plastic Pvt. Ltd (Wholly owned Subsidiary Company)

iv. Companies/entities under the control of Key Management Personnel

1) Sakam Trading Pvt. Ltd. (Holding Company)

2) Kriti Nutrients Ltd. (Subsidiary company of Sakam Trading Pvt. Ltd.)

3) Chetak Builders Pvt. Ltd. (Subsidiary company of Sakam Trading Pvt. Ltd.)

12. Previous year figures have been reclassified / regrouped wherever necessary.


Mar 31, 2014

1. Corporate Information

Kriti Industries (india) Ltd., a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956 on 09/11/1995 and having its Registered office in Indore (MP). The companies shares are listed in the Bombay Stock Exchange (BSE) and Madhya Pradesh Stock Exchange (MPSE).

2. In the opinion of the Board of Directors of the Company, the Current Assets, Loans and Advances have a value realizable in the ordinary course of business at least equal to the amount at which they are stated and provisions for all known liabilities are adequate and not in excess of the amount reasonably necessary.

3. Contingent liabilities

3.1 Estimated amount of contracts remaining to be executed on Capital Account Rs. 0.41 lacs net of advance given (PreviousYear Rs. 4.24 lacs)

3.2 Bank has given guarantee on behalf of the Company to various parties to the extent of Rs.1610.80 lacs (PreviousYear Rs. 418.56 lacs.)

4. Installments of term loans from financial institutions falling due within one year are Rs 571.90 lacs (Previous year Rs. 636.36 lacs).

5. Company''s Income tax assessments have been completed up to Assessment year 2011-12. In which Income Tax Dept. has raised a demand of Rs.133.07 lacs against which company has filed appeal before CIT ( A). Company has not made any provision against such demand and shall be dealt with in books when crystlised finally. In the opinion of Board of Director''s provision made for Income Tax is adequate.

6. Unpaid overdue amount due on March 31,2014 to Micro Small and Medium Enterprises and/or ancillary industrial suppliers on account of principal together with interest aggregate to Rs. Nil.

This disclosure is on the basis of the information available with the company regarding the status of the supplier as defined under the Micro, Small and Medium Enterprises Development Act, 2006.

7. The amount of Foreign Exchange gain/(loss) included in the profit & loss account is Rs.( 71.42 ) lacs (Previous Year gain/ (loss) Rs. (130.86) lacs).

8. A fire broke in the factory premises at Pithampur on 13th January 2013 midnight destroying finished goods inventory lying in the yard to the tune of Rs.280 Lacs for which company has filed claim with insurance company for Rs. 275 Lacs (Net of excess clause). As on date final settlement of claim is pending with insurance company, shown as receivable at Rs. 275.00 Lacs under the head Other Current Assets.Income / loss shall be dealt in books in the year of final settlement / receipt.

9.The disclosure required as per Accounting Standard (AS) 15 "Employees Benefit" issued by the Institute of Chartered Accountants of India (ICAI) and notified under the Companies Accounting Standards Rules, 2006 and based on the report generated by Life Insurance Corporation of India (LIC) is as under

10. The Company has entered into leasing agreement with Sakam Trading Pvt. Ltd. for the lease of Commercial Premises. The disclosure as per Para 25 of Accounting Standard - 19"LEASES"

11. In accordance with the Accounting Standard (AS) 18 "Related Party Disclosures" issued by The Institute of Chartered Accountants of India (ICAI) and notified under the Companies Accounting Standards Rules, 2006 the names of the related parties and the relevant disclosure is as under:- (a) Name of the related party and description of relationship:

i. Key Management Personnel:

Shri Shiv Singh Mehta, Managing Director Smt. Purnima Mehta, Executive Director

ii. Relatives of Key Management Personnel

Shri Saurabh Singh Mehta (Son of Managing Director/ Executive Director)

Smt. Devki Hirawat (Daughter of Managing Director/ Executive Director)

iii. Subsidiary Company

1) Kriti Auto & Engineering Plastic Pvt. Ltd (Wholly owned Subsidiary Company)

iv Companies/entities under the control of Key Management Personnel

1) Sakam Trading Pvt. Ltd. (Holding Company)

2) Kriti Nutrients Ltd. (Subsidiary company of Sakam Trading Pvt. Ltd.)

3) Chetak Builders Pvt. Ltd. (Subsidiary company of SakamTrading Pvt. Ltd.)


Mar 31, 2013

1. Corporate Information

Kriti Industries (India) Ltd., a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956 on 09/11/1995 and having its Registered office in Indore (MP). The companies shares are listed in the Bombay Stock Exchange (BSE) and Madhya Pradesh Stock Exchange (MPSE).

2. Contingent Liabilities

2.1 Estimated amount of contracts remaining to be executed on Capital Account Rs. 4.24 lacs net of advance given (Previous Year Rs.19.04 lacs)

2.2 Bank has given guarantee on behalf of the Company to various parties to the extent of Rs.418.56 lacs (Previous Year Rs. 364.88 lacs.)

3. Installments of term loans from financial institutions falling due within one year are Rs 636.36 lacs (Previous year Rs. 625.68 lacs).

4. Company''s Income tax assessments have been completed up to Assessment year 2010-2011. In the opinion of Board of Director''s provision made for Income Tax is adequate.

5. Unpaid overdue amount due on March 31, 2013 to Micro Small and Medium Enterprises and/or ancillary industrial suppliers on account of principal together with interest aggregate to Rs. Nil.

This disclosure is on the basis of the information available with the company regarding the status of the suppliers as defined under the Micro, Small and Medium Enterprises Development Act, 2006.

6. The amount of Foreign Exchange gain/(loss) included in the profit & loss account is Rs.(130.86) lacs (Previous Year gain/ (loss) Rs. (169.70) lacs).

7. A fire broke in the factory premises at Pithampur on 13th January 2013 midnight destroying finished goods inventory lying in the yard to the tune of Rs.280 Lacs for which company has filed claim with insurance company for Rs. 275 Lacs (Net of excess clause). As on date final settlement of claim is pending with insurance company, shown as receivable at Rs. 275.00 Lacs under the head Other Current Assets.

8. The disclosure required as per Accounting Standard (AS) 15 "Employees Benefit" issued by the Institute of Chartered Accountants of India (ICAI) and notified under the Companies Accounting Standards Rules, 2006 and based on the report generated by Life Insurance Corporation of India (LIC) is as under

(a) The company has taken Group Gratuity and Cash Accumulation Policy issued by the LIC, which is a defined benefit plan.

(b) Table showing changes in present value of obligations as on

9. The Company has entered into leasing agreement with Sakam Trading Pvt. Ltd. for the lease of Commercial Premises. The disclosure as per Para 25 of Accounting Standard - 19 "LEASES"

10. In accordance with the Accounting Standard (AS) 18 "Related Party Disclosures" issued by The Institute of Chartered Accountants of India (ICAI) and notified under the Companies Accounting Standards Rules, 2006 the names of the related parties and the relevant disclosure is as under:-

(a) Name of the related party and description of relationship: i. Key Management Personnel:

Shri Shiv Singh Mehta, Managing Director Smt. Purnima Mehta, Executive Director

ii. Relatives of Key Management Personnel

Shri Saurabh Singh Mehta (Son of Managing Director/ Executive Director) Smt. Devki Hirawat (Daughter of Managing Director/ Executive Director)

iii. Subsidiary Company

1) Kriti Auto & Engineering Plastic Pvt. Ltd (Wholly owned Subsidiary Company)

iv Companies/entities under the control of Key Management Personnel

1) Sakam Trading Pvt. Ltd. (Holding Company)

2) Kriti Nutrients Ltd. (Subsidiary company of Sakam Trading Pvt. Ltd.)

3) Chetak Builders Pvt. Ltd. (Subsidiary company of Sakam Trading Pvt. Ltd.)

The following transaction were carried out with the related parties in the ordinary course of business

11. Previous year figures have been reclassified/regrouped wherever necessary.


Mar 31, 2012

1. In the opinion of the Board of Directors of the Company, the Current Assets, Loans and Advances have a value realizable in the ordinary course of business at least equal to the amount at which they are stated and provisions for all known liabilities are adequate and not in excess of the amount reasonably necessary.

2. Contingent liabilities

2.1 Estimated amount of contracts remaining to be executed on Capital Account Rs. 19.04 lacs net of advance given (Previous Year Rs. 292.37 lacs)

2.2 Bank has given guarantee on behalf of the Company to various parties to the extent of Rs.364.88 lacs (Previous Year Rs. 169.85 lacs.)

3. Installments of term loans from financial institutions falling due within one year are Rs 625.68 lacs (Previous year Rs. 494.00 lacs).

4. Company's Income tax assessments have been completed up to Assessment year 2009-2010. In the opinion of Board of Director's provision made for Income Tax is adequate.

5. Unpaid overdue amount due on March 31, 2012 to Micro Small and Medium Enterprises and/or ancillary industrial suppliers on account of principal together with interest aggregate to Rs. Nil.

This disclosure is on the basis of the information available with the company regarding the status of the suppliers as defined under the Micro, Small and Medium Enterprises Development Act, 2006.

6. The amount of Foreign Exchange gain/(loss) included in the profit & loss account is Rs.(169.70) lacs (Previous Year gain Rs. 44.74 lacs). Above amount is included in Finance Cost.

7. The disclosure required as per Accounting Standard (AS) 15 "Employees Benefit" issued by the Institute of Chartered Accountants of India (ICAI) and notified under the Companies Accounting Standards Rules, 2006 and based on the report generated by Life Insurance Corporation of India (LIC) is as under

(a) The company has taken Group Gratuity and Cash Accumulation Policy issued by the LIC, which is a defined benefit plan.

8. In accordance with the Accounting Standard (AS) 18 "Related Party Disclosures" issued by The Institute of Chartered Accountants of India (ICAI) and notified under the Companies Accounting Standards Rules, 2006 the names of the related parties and the relevant disclosure is as under:-

(a) Name of the related party and description of relationship:

i. Key Management Personnel:

Shri Shiv Singh Mehta, Managing Director Smt. Purnima Mehta, Executive Director

ii Relatives of Key Managerial Personnel

Late Shri Sajjan Singh Mehta (Father of Managing Director)

Shri Saurabh Singh Mehta (Son of Managing Director/Executive Director)

Miss Devki Mehta (Daughter of Managing Director/Executive Director)

iii Subsidiary Company

Kriti Auto & Engineering Plastic Pvt. Ltd (Wholly owned Subsidiary Company)

iv Companies/entities under the control of Key Management personnel

1) Sakam Trading Pvt. Ltd. (Holding Company)

2) Kriti Nutrients Ltd. (Subsidiary company of Sakam Trading Pvt. Ltd.)

3) Chetak Builders Pvt. Ltd. (Subsidiary company of Sakam Trading Pvt. Ltd.)

9. Previous year figures have been reclassified/regrouped wherever necessary.


Mar 31, 2011

1. In the opinion of the Board of Directors of the Company, the Current Assets, Loans and Advances have a value realizable in the ordinary course of business at least equal to the amount at which they are stated and provisions for all known liabilities are adequate and not in excess of the amount reasonably necessary.

2. Contingent liabilities

2.1 Estimated amount of contracts remaining to be executed on Capital Account Rs. 292.37 lacs net of advance given (Previous Year Rs. 23.30 lacs)

2.2 Bank has given guarantee on behalf of the Company to various parties to the extent of Rs. 169.85 lacs (Previous Year Rs. 64.58 lacs.)

3. Installments of term loans from financial institutions falling due within one year are Rs 494 lacs (Previous Year Rs. 414.60 lacs).

4. Company's Income tax assessments have been completed up to Assessment year 2008-2009. In the opinion of Board of Director's provision made for Income Tax is adequate.

5. Unpaid overdue amount due on March 31, 2011 to Micro Small and Medium Enterprises and/or ancillary industrial suppliers on account of principal together with interest aggregate to Rs. Nil.

This disclosure is on the basis of the information available with the company regarding the status of the suppliers as defined under the Micro, Small and Medium Enterprises Development Act, 2006.

6. The amount of Foreign Exchange gain included in the profit & loss account is Rs. 44.74 lacs (Previous Year gain Rs. 44.32 lacs). Above amount is included in other income.

7. The disclosure required as per Accounting Standard (AS) 15 "Employees Benefit" issued by the Institute of Chartered Accountants of India (ICAI) and notified under the Companies Accounting Standards Rules, 2006 and based on the report generated by Life Insurance Corporation of India (LIC) is as under

(a) The company has taken Group Gratuity and Cash Accumulation Policy issued by the LIC, which is a defined benefit plan.

8. The amount of borrowing cost capitalized during the year Rs. 10.92 lacs (Previous Year Nil).

9. In accordance with the Accounting Standard (AS) 18 "Related Party Disclosures" issued by The Institute of Chartered Accountants of India (ICAI) and notified under the Companies Accounting Standards Rules, 2006 the names of the related parties and the relevant disclosure is as under:-

(a) Name of the related party and description of relationship:

i. Key Management Personnel: Shri Shiv Singh Mehta, Managing Director Smt. Purnima Mehta, Executive Director

ii Relatives of Key Managerial Personnel Shri Sajjan Singh Mehta (Father of Managing Director) Miss Devki Mehta (Daughter of Managing Director/ Executive Director)

iii Subsidiary Company Kriti Auto & Engineering Plastic Pvt. Ltd (Wholly owned Subsidiary Company)

iv Companies/entities under the control of Key Management personnel

1) Chetak Builders Pvt. Ltd.

2) Kriti Corporate Services Pvt. Ltd.

3) Shipra pipes Pvt. Ltd.

4) Sakam Trading pvt. Ltd.

5) Kriti Nutrients Ltd.

10. Previous figures have been reclassified/regrouped wherever necessary, however same are not Comparable as figures for previous year includes results of solvent and moulding division for 9 months which were separated on 01.01.2010 due to demerger.


Mar 31, 2010

1.1 Pursuant to the order of the Honble High Court of M.P. Bench at Indore solvent division of the Company was demerged with Kriti Nutrients Limited (KNL) and engineering moulding division of the company was hived-off with Kriti Auto & Engineering Plastics Private Limited (KAEPPL) w.e.f.lst January 2010. Thus, the financial statements for the year are inclusive of nine months results (31.12.09) of solvent and engineering moulding division.

1.2 Documentation for Bank facilities with various banks are pending for execution due to demerger Scheme implemented during the year.

2. In the opinion of the Board of Directors of the Company, the Current Assets, Loans and Advances have a value realizable in the ordinary course of business at least equal to the amount at which they are stated and provisions for all known liabilities are adequate and not in excess of the amount reasonably necessary.

3. Contingent liabilities

3.1 Estimated amount of contracts remaining to be executed on Capital Account Rs. 23.30 lacs (Previous Year Rs.l81.43Lacs)

3.2 Bank has given guarantee on behalf of the Company to various parties to the extent of Rs.64.58 lacs (Previous Year Rs.333.54lacs.)

4. Installments of term loans from financial institutions falling due within one year are Rs 414.60.1acs (Previous year Rs.744.45lacs).

5. Companys Income tax assessments have been completed up to Assessment year 2007-2008. In the opinion of Board of Directors provision made for Income Tax is adequate.

6. Micro, Small and Medium Enterprises Development Act, 2006:

Under the Micro, Small and Medium Enterprises Development Act, 2006 which came into force from 2nd October 2006, certain disclosures are required to be made relating to Micro, Small and Medium Enterprises. The Company is in the process of compiling relative information from its suppliers about their coverage under the said act since the relevant information is not readily available; no disclosures have been made in the accounts. However the Management is of the view that, the impact of interest, if any, that may be payable in accordance with the provisions of this act is not expected to be material.

7. The amount of Foreign Exchange gain included in the profit & loss account is Rs.44.32 lacs (Previous Year loss Rs.418.42lacs).

8. The disclosure required as per Accounting Standard (AS) 15 "Employees Benefit" issued by the Institute of Chartered Accountants of India (ICAI) and notified under the Companies Accounting Standards Rules, 2006 and based on the report generated by Life Insurance Corporation of India (LIC) is as under

9. In accordance with the Accounting Standard (AS) 18 "Related Party Disclosures" issued by The Institute of Chartered Accountants of India (ICAI) and notified under the Companies Accounting Standards Rules, 2006 the names of the related parties and the relevant disclosure is as under:-

(a) Name of the related party and description of relationship:

i. Key Management Personnel:

Shri Shiv Singh Mehta, Managing Director Smt. Purnima Mehta, Executive Director ii. Relatives of Key Managerial Personnel

Shri Sajjan Singh Mehta (Father of Managing Director)

Miss Devki Mehta (daughter of Managing Director/ Executive Director)

Shri Saurabh Singh Mehta (son of Managing Director/ Executive Director)

iii. Subsidiary Company

Kriti Auto & Engineering Plastics Pvt. Ltd. (Wholly owned Subsidiary Company)

iv. Companies/entities under the control of Key Management personnel

1) M/s. Chetak Builders Pvt. Ltd.

2) M/s. Kriti Corporate Services Pvt. Ltd.

3) M/s. Shipra pipes Pvt. Ltd.

4) M/s. Sakam Trading pvt. Ltd.

5) M/s. Kriti Nutrients Ltd.

10. In accordance with the Accounting Standard (AS) 22 "Accounting for Taxation" issued by The Institute of Chartered Accountants of India (ICAI) and notified under the Companies Accounting Standards Rules, 2006 the details of Deferred Tax items are as under:

11. Pursuant to the order of the Honble High Court of M.P. Bench at Indore solvent division of the Company was demerged with Kriti Nutrients Limited (KNL) and engineering moulding division of the company was hived-off with Kriti Auto & Engineering Plastics Private Limited (KAEPPL) w.e.f.lst January 2010. Thus, the financial statements for the year are inclusive of nine months results (31.12.09) of solvent and engineering moulding division.

a) Segments are: Plastics Solvent Moulding

b) The Company has completed the Scheme of Arrangement on 1st January 2010.

c) The amount of total assets and liabilities as of balance sheet date and amount of revenue and expenses in respect of continuing operation (Plastics Division) and discontinuing operations (Solvent Division & engineering moulding division) are as under:

12 Additional information as required under Part II of Schedule VI to the Companies Act, 1956 is as under (Figures of solvent division and engineering moulding division given upto 31/12/2009, since after that date these division have been demerged/hived off under scheme of arrangement)

13. Previous figures have been reclassified/regrouped wherever necessary, however due to the effect of scheme of arrangement in the current year, previous figures are not comparable.