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Notes to Accounts of Kriti Industries (India) Ltd.

Mar 31, 2018

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 12.03.1990 and having its Registered office in Indore (MP). The company’s shares are listed in the Bombay Stock Exchange (BSE).

2.1. Critical accounting Judgment and key sources of estimation uncertainty

The preparation of the financial statements in conformity with the Ind AS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities and disclosures as at date of the financial statements and the reported amounts of the revenues and expenses for the years presented. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates under different assumptions and conditions. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

2.1.1. Depreciation / amortisation and useful lives of property plant and equipment / intangible assets

Property, plant and equipment / intangible assets are depreciated / amortised over their estimated useful lives, after taking into account estimated residual value. Management reviews the estimated useful lives and residual values of the assets annually in order to determine the amount of depreciation / amortisation to be recorded during any reporting period. The useful lives and residual values are based on the Company’s historical experience with similar assets and take into account anticipated technological changes. The depreciation / amortisation for future periods is revised if there are significant changes from previous estimates.

2.1.2. Recoverability of trade receivable

Judgements are required in assessing the recoverability of overdue trade receivables and determining whether a provision against those receivables is required. Factors considered include the credit rating of the counterparty, the amount and timing of anticipated future payments and any possible actions that can be taken to mitigate the risk of non-payment.

2.1.3. Provisions

Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and quantification of the liability requires the application of judgment to existing facts and circumstances, which can be subject to change. The carrying amounts of provisions and liabilities are reviewed regularly and revised to take account of changing facts and circumstances.

2.1.4. Impairment of non-financial assets

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or Cash Generating Units (CGU’s) fair value less costs of disposal and its value in use. It is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or a groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account, if no such transactions can be identified, an appropriate valuation model is used.

2.1.5. Impairment of financial assets

The impairment provisions for financial assets are based on assumptions about risk of default and expected cash loss rates. The Company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on Company’s past history, existing market conditions as well as forward looking estimates at the end of each reporting period.

2.2. First Time Adoption of Ind AS

The Company has adopted Ind AS with effect from 1st April 2017 with comparatives being restated. Accordingly the impact of transition has been provided in the Opening Reserves as at 1st April 2016. The figures for the previous period have been restated, regrouped and reclassified wherever required to comply with the requirement of Ind AS and Schedule III.

Exemptions from retrospective application :

2.2.1. Business combination exemption

The Company has applied the exemption as provided in Ind AS 101 on non-application of Ind AS 103, “Business Combinations” to business combinations consummated prior to April 1, 2016 (the “Transition Date”), pursuant to which goodwill/capital reserve arising from a business combination has been stated at the carrying amount prior to the date of transition under Indian GAAP. The Company has also applied the exemption for past business combinations to acquisitions of investments in subsidiaries / associates / joint ventures consummated prior to the Transition Date

2.2.2. Fair value as deemed cost exemption

The Company has elected to measure items of property, plant and equipment and intangible assets at its carrying value at the transition date.

2.2.3. Cumulative translation differences

The Company has elected to apply Ind AS 21 - The Effects of changes in Foreign Exchange Rate prospectively. Accordingly all cumulative gains and losses recognised are reset to zero by transferring it to retained earnings.

2.2.4. Investments in subsidiaries, joint ventures and associates

The Company has elected to measure investment in subsidiaries, joint venture and associate at cost.

3.1 Property, Plant & Equipment

As per the requirements of Ind AS 17 “Leases” the lease premium paid for the acquisition of land has been amortised over the lease tenure. Accordingly there is an decrease in value of Leasehold land and increase in Depreciation and Amortisation expenses.

3.2 Other non current assets

Under Indian GAAP, the Company classified all its long term Fixed Deposits & deposit to wholly owned subsidiary company as non current assets, in the absence of distinction between financial and non-financial assets. Under Ind AS, financial and non financial assets have to be classified and measured separately, hence, long term Fixed Deposits forming part of other noncurrent assets in Indian GAAP have been regrouped to other financial assets under Ind AS.

3.3 Financial liabilities at amortised cost

Under Indian GAAP, the Company recognised the liability at cost and the issue expenses were recognised as an expense in the period in which they were incurred. Under Ind AS, the liability is measured at amortised cost following effective interest rate method.

The issue expenses are factored in the computation of effective interest rate and hence will get amortised over the period and not in the year in which they are incurred. On the date of transition to Ind AS, adjustment arising on account measuring financial liability at amortised cost has been recognised as an adjustment against the retained earnings.

3.4 Other current financial liabilities

Under Indian GAAP, the Company classified all its liabilities such as current portion of long term borrowings, outstanding liabilities, statutory liabilities & unpaid dividend, as part of other current liabilities, in the absence of distinction between financial and non-financial liabilities. Under Ind AS, financial and non-financial liabilities have to be classified and measured separately. Hence, such items forming part of other current liabilities ie current portion of long term borrowings and unpaid dividend have been regrouped to ‘other current financial liabilities’ in Ind AS.

3.5 Provisions

Under Indian GAAP, the Company classified all the provisions under the same head. Under Ind AS, income tax provisions & other provisions are to classified and measured separately, hence, provision for income tax forming part of provisions in Indian GAAP have been regrouped to current tax liabilities under Ind AS.

3.6 Sale of Goods

Under Indian GAAP, sale of goods was presented as net of excise duty. However, under Ind AS, sale of goods includes excise duty. Thus sale of goods under Ind AS has increased with a corresponding increase in separate expense head “Excise Duty”.

3.7 Defined Benefit obligation

Both under Indian GAAP and Ind AS, the Company recognised costs related to its post-employment defined benefit plan on an actuarial basis. Under Indian GAAP, the entire cost, including actuarial gains and losses, are charged to profit or loss. Under Ind-AS, re-measurements comprising of actuarial gains and losses arising from experience adjustments and changes in acturial assumptions, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets excluding amounts included in net interest on the net defined benefit liability are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through Other Comprehensive Income.

3.8 Other comprehensive income

Under Indian GAAP, there were no requirements to separately disclose Other Comprehensive Income (‘OCI’) and hence, the Company had not presented other comprehensive income (OCI) separately. Further the items presented in Other Comprehensive Income are classified as items that will be re-classified to profit or loss and items which will not be classified to profit or loss. The actuarial gains and losses on defined benefit obligations have been classified in other comprehensive income as items that will not be re-classified to profit or loss.

The company has issued only one class of shares referred to as equity shares having a par value of Rs. 1 each. Holder of the equity share as referred in the records of the company as of date of the shareholder’s meeting is referred to one vote in respect of each share held for all matters submitted to vote in the shareholder’s meeting.

The company declares and pays dividends in Indian rupees. In the event of liquidation of the company the holders of equity shares will be entitled to receive any of the remaining assets of the company after distribution of all preferential amounts.

Pursuant to the Hon’ble High Court of M.P. order dated 1.11.2011 approving the scheme of amalgamation of promoter group companies viz Kriti Corporate Services Pvt.Ltd., Kriti Auto Accessories Private Ltd., Kasta Pipes Pvt.Ltd. and Shipra Pipes Pvt Ltd. with Sakam Trading Pvt.Ltd., the Shareholding of the above transferor companies are vested in Sakam Trading Pvt.Ltd. Thus Sakam Trading Pvt.Ltd. becomes holding company w.e.f.27.02.12 of Kriti Industries (I) Ltd.

4. 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.

5. Contingent liabilities

5.1 Estimated amount of contracts remaining to be executed on Capital Account Rs.229.55 Lakhs net of advance given (Previous Year Rs. 136.19 Lakhs)

5.2 Bank has given guarantee on behalf of the Company to various parties to the extent of Rs. 258.68 Lakhs (Previous Year Rs. 694.99 Lakhs.)

5.3 Claims not acknowledge by the company on Commercial tax matters Rs 243.50 Lakhs (total demand Rs. 348.57 Lakhs less demand deposited Rs. 150.08 Lakhs) (Previous Year 241.58 Lakhs).

6. The Company had filed an appeal before Customs Excise and Service Tax Appellate Tribunal against the order of Commissioner (Appeals). The appeal was filed to claim refund of Rs. 317.98 Lakhs, being the reversal of Cenvat credit under rule 6(3) (b) of Cenvat Credit Rules, 2004 towards the goods sold to government undertakings in the earlier years. The amount claimed as refund was classified as Excise Duty Receivable. However the Customs, Excise & Service Tax Appellate Tribunal has dismissed the appeal. Consequently this amount of Rs. 317.98 Lakhs has been charged off to the Statement of Profit and Loss under Other Expenses as Statutory Levies.

7. Unpaid overdue amount due on March 31, 2018 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.

8. The amount of Foreign Exchange gain/ (loss) included in the profit & loss account is Rs.(44.14) Lakhs (Previous Year gain/ (loss) Rs. (5.10) Lakhs).

9. The disclosure required as per Indian Accounting Standard (IndAS) 19 “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) is as under (a) The company has taken Group Gratuity and Cash Accumulation Policy issued by the LIC, which is a defined benefit plan.

10. Since the company has presented Consolidated Financial Statements, it is not required to present segment information in the standalone financial statements as per Ind AS 108- Operating Segments.

11. EARNING PER SHARE

The Company’s share capital consists of equity share. The basic and diluted earnings per share is calculated as under:

12. In accordance with the Indian Accounting Standard (IndAS) 24 “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 Shiv Singh Mehta, Managing Director Smt. Purnima Mehta, Executive Director Shri V. K. Mittal, Chief Financial Officer Smt. Priyanka Gupta, 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 Plastics 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. (Fellow Subsidiary)

3) Chetak Builders Pvt. Ltd. (Fellow Subsidiary)

4) Sakam Charitable Trust, Indore

13. A. Capital Management

For the purpose of Company’s Capital Management, capital includes Issued Equity Capital, Securities Premium, and all other Equity Reserves attributable to the Equity Holders of the Company. The primary objective of the Company’s Capital Management is to maximise the Share Holder Value.

The Company monitors using a gearing ratio which is net debts divided by total capital plus net debt. The company includes within net debt, interest bearing loans and borrowings, less cash and short term deposit.

B. Financial Risk Management

The Company’s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the operations of the Company. The principal financial assets include trade and other receivables and cash and short term deposits.

The Company has assessed market risk, credit risk and liquidity risk to its financial liabilities.

i. Market Risk

Is the risk of loss of future earnings, fair values or cash flows that may result from change of interest rates, foreign exchange rates and other price risks. Financial instruments affected by market risks, primarily include loans & borrowings and foreign currency payables.

Company’s Term Loans & Working Capital interest rates are linked to 1 year MCLR rate, reset annually. Short Term

Borrowings as and when taken are governed by prevailing rates at the time of disbursement.

If the interest rates had been 1% higher / lower and all other variables held constant, the company’s profit for the year ended 31st March, 2018 would have been decreased/ increased by Rs. 98.96 Lakhs.

The Company is exposed to risk with regard to foreign currency payables.

The Company is affected by the price volatility of Polymer prices. The Company enters into purchase contracts on a short term and forward foreign exchange contracts(matching the purchase contracts) are entered into to minimise price fluctuations.

ii. Credit Risk

Is the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Company. It arises from cash and cash equivalents as well as credit exposure to customers.

The Company holds cash and cash equivalents with banks which are having highest safety rankings and hence has a low credit risk.

Company’s marketing policies & credit period is determined on the basis of segments sales history and credit worthiness of the customers. The sales affected through dealer network is normally 7-10 days credit period & in institutional sales some customers open Letters of Credit and some large corporate enjoys the credit facilities ranging 30-90 days.

iii. Liquidity Risk

The Company manages liquidity risk by maintaining adequate surplus, banking facilities and reserve borrowings facilities by continuously monitoring forecasts and actual cash flows.

The Company has a system of forecasting next month cash inflow and outflow and all liquidity requirements are planned.

All Long term borrowings are for a fixed tenor and generally these cannot be foreclosed.

The Company has access to various source of Short term funding and debit maturing within 12 months can be rolled over with existing lenders/new lenders, or repaid based on short term requirements. Trade and other payables are plugged as per credit terms and paid accordingly.

All payments are made along due dates and requests for early payments are entertained after due approval and availing early payment discounts

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


Mar 31, 2016

1. Company''s Income tax assessments have been completed up to Assessment year 2013-14. Income Tax Dept. has raised a demand ofRs. 28.28 LacsforA.Y2013-14,176.41 lacsforA.Y.2012-13and Rs.133.07 lacsforA.Y.2011-12 respectively against which company has filed appeal before Higher Authorities. 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.

2. Unpaid overdue amount due on March 31, 2016 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.

3. The amount of Foreign Exchange Gain/ (Loss) included in the statement of profit & loss is Rs.88.71 Lacs as gain (Previous Year Gain Rs. 129.73 Lacs). Current year gain included in Other Income & Previous Year Gain amount is included in Other Income.

4. The amount of Foreign Exchange gain/(loss) included in the profit & loss account is Rs.(15.18) lacs (Previous Year gain/ (loss) Rs. (32.03) lacs).

5. During the year ended 31.03.2016 excise duty on closing stock amounting to Rs. (-) 0.12 Lacs is net off excise duty on opening stock (Rs.390.51 Lacs minus Rs.390.63 ).Consequently the change in Inventories of finished goods, work-in-progress and stock-in-trade & other expenses are reduced to that extent, instead of grossing of stocks & Expenses. There is no impact on year ended results due to this change.

6. During the year Company paid Rs. 75 Lacs towards Excise Duty which includes Rs. 15.09 Lacs for earlier years on account of rate difference between fixed rate contract and dispatch value to depots/dealers due to observations made by DGCEI in its inspection to avoid any litigation on this account.

7. 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) is as under

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

b) The Company has only one business segment to be reported namely Plastics, as per Accounting Standard-17.

9. 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 Shiv Singh Mehta, Managing Director Smt. Purnima Mehta, Executive Director Shri V.K. Mittal, Chief Financial Officer Smt. Priyanka Gupta, 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

10) Kriti Auto & Engineering Plastics Pvt. Ltd (Wholly owned Subsidiary Company) iv Companies/entities under the control of Key Management Personnel

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

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

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

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


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.

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