Mar 31, 2015
1. CORPORATE INFORMATION
Kunststoffe Industries Limited is a listed public limited Company,
incorporated under The Companies Act, 1956. The Company is engaged in
the business of "Job Works for Processing of HDPE/PP Pipes, etc."
2. Terms / rights attached to Equity Shares :
The Company has a single class of equity shares having a par value of
Rs. 10/- per share. Each holder of equity share is entitled to one vote
per share.
In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive the remaining assets of the Company
in proportion to the number of equity shares held by each shareholder,
after settlement of all preferential obligations.
3. Footnote:
(i) Secured Term Loan from Related Parties consists of loan bearing no
interest from Gayatri Pipes & Fittings Pvt Ltd. for a period as may be
agreed upon between the parties having first charge on all immovable
properties both present & future AND first charge on all movables
including Plant & Machinery, Spares, Tools, etc. present & future and
plot & land at Kadaiya village, Daman, Bearing S.No. 107/1 admeasuring
6,000 sq mtrs with Building theron and Plant & machinery, etc.
(ii) Unsecured Loans and advances from Related Party consists of loan
bearing no interest from Pravin V. Sheth for a period as may be agreed
upon between the parties.
(ii) Unsecured Loans and advances from other party consists of loan
bearing no interest from A.M. Reality Pvt. Ltd. for a period as may be
agreed upon between the parties.
4. Disclosures under AS 18
Related party transactions
Details of related parties:
Description of relationship Names of related parties
Key Management Personnel (KMP) Soniya Sheth
Relatives of KMP
Daughter Dhwani Sheth
Common Director - Soniya Sheth Stallion Breweries Ltd.
Common Director - Soniya Sheth Gayatri Pipes & Fittings Pvt. Ltd.
Note: Related parties have been identified by the management and relied
upon by the auditors.
5. Disclosure under AS 15
Employee benefit plans ( Defined contribution plans)
The Company makes Provident Fund and Superannuation Fund contributions
to defined contribution plans for qualifying employees. Under the
Schemes, the Company is required to contribute a specified percentage
of the payroll costs to fund the benefits. The Company recognised Rs.
3,70,546/- (Year ended 31 March, 2014 Rs. 2,95,490/-) for Provident
Fund contributions and N.A. (Year ended 31 March, 2015 N.A.) for
Superannuation Fund contributions in the Statement of Profit and Loss.
The contributions payable to these plans by the Company are at rates
specified in the rules of the schemes.
6. Pursuant to reference made by the company, The Hon. Bench of BIFR,
New Delhi by their order dated 18.01.2007 declared the Company as Sick
Industry. Rehabilitation Scheme has been approved by BIFR during the
year.
7. The Company has revalued Fixed Assets, Investments and Loans &
Advances for the year ended 31.12.2007; Fixed Assets & Investments for
the year ended 31.03.2009 and Fixed Assets for the year ended
31.03.2012. The Revaluation of the year ended 31.012.2007 has resulted
into a loss of Rs. 14,79,06,784/- and the same has been debited to
Profit & Loss Account and shown below the line as "Extra Ordinary
Items". Similarly, the Revaluation of the year ended 31.003.2009 has
resulted into a Profit of Rs. 2,89,66,113/- and the same has been
credited to Profit & Loss Account as "Profit on Revaluation of Assets"
and shown below the line. So also, the Revaluation of the year ended
31.03.2012 has resulted into a Profit of Rs. 12,15,19,764/- and the
same has been credited to the Revaluation Reserve Account and shown in
the Balance Sheet as at 31.03.2012 under the head, Reserves & Surplus.
At the time of earlier revaluations carried out as on 31.12.2007 &
31.03.2009, the Gross Block was shown at Revalued Figures instead of
Cost. Hence the same has been rectified in the year under consideration
i.e. as at 31.03.2012 by replacing the Gross Cost of the Assets
deducting the loss on revaluation and adding the profit on revaluation
carried out as at 31.12.2007 & 31.03.2009 respectively. The difference
of Rs. 4,48,55,306/- between the under depreciation provided on reduced
value of the said assets for the year commencing from 01.01.2008 to
31.03.2009 (i.e. for a period of 15 months) and the over depreciation
provided on the increased value of the said assets has been debited to
the Revaluation Reserve Account of the year under consideration viz.
31.03.2012.
8. "The liability of Rs. 46,98,30,496.00/- was created in favour of
Gayatri Pipes & Fittings Pvt. Ltd. As under:
1) Rs. 26,70,72,939.00/- by debiting IDBI A/c for taking over it's
liability on 31.03.2008.
2) Rs. 20,27,57,557.00/- by debiting P/L A/c as Prior year adjustment
on 20.03.2011.
In the year 2012-13, the Company has transferred Rs. 26,70,72,939.00/-
to General reserve as the said liability is waived by Gayatri Pipes &
Fittings Pvt. Ltd. as per their undertaking given to BIFR. Also, the
Company has transferred Rs. 20,27,57,557/- to P/L A/c and shown under
the head "Prior year Adjustment" as Gayatri Gayatri Pipes & Fittings
Pvt. Ltd. as per the same undertakings given to BIFR."
9. No Provision for Income Tax liability has been made in terms of
BIFR Order dated 08.03.2013 under which vide clause 10.3(iii) the
company is exempt form the applicability of minimum Alternate tax (MAT)
under section 115JB of the income Tax Act, 1961.
10 Debtors and Creditors balances are subject to confirmations from
the parties.
11. In the opinion of the Board of Directors the Current Assets, Loans
& Advances except those shown as doubtful have a value on realization
in the ordinary course of business at least equal to the amount at
which items are stated in the Balance Sheet.
12. Figures of the previous year have been re-grouped / rearranged
/reclassified wherever necessary.
Mar 31, 2014
Note 1: Share Capital
(i) Capital reduction has taken place during the year as per BIFR order
dtd. 08.03.2013, details provided are as under:
As on 01.04.2013, 14,960 Equity Share holders were holding 1,18,50,000
shares. During the year, number of shares are reduced by 60% i.e.
71,10,000 shares wide BIFR Order dtd. 08.03.2013. Also during the year
further allotment of 21,50,000 shares were made. Hence, Balance as at
the end of the year is 14,965 share holders holding 68,90,000 shares at
Rs. 10/- per share.
(ii) Terms/rights attached to Equity Shares:
The Company has a single class of equity shares having a par value of
Rs. 10/- per share. Each holder of equity share is entitled to one vote
per share. In the event of liquidation of the Company, the holders of
equity shares will be entitled to receive the remaining assets of the
Company in proportion to the number of equity shares held by each
Note 2: Long-term borrowings
Footnote:
(i) Secured Term Loan from Related Parties consists of loan bearing no
interest from Gayatri Pipes & Fittings Pvt Ltd. for a period as may be
agreed upon between the parties having first charge on all immovable
properties both present & future AND first charge on all movables
including Plant & Machinery, Spares, Tools, etc. present & future and
plot & land at Kadaiya village, Daman, Bearing S.No. 107/1 admeasuring
6,000 sq mtrs with Building theron and Plant & machinery, etc.
(ii) Unsecured Loans and advances from Related Party consists of loan
bearing no interest from Pravin V. Sheth for a period as may be agreed
upon between the parties.
(ii) Unsecured Loans and advances from other party consists of loan
bearing no interest from A.M. Reality Pvt. Ltd. for a period as may be
agreed upon between the parties.
** Trade payables in above Note includes Rs. NIL (P.Y. Rs. NIL) due to
micro, small and medium enterprises registered under the Micro, Small
and Medium Enterprises Development Act, 2006 (MSMED).
Note 3: Fixed Assets
** Plant and equipment wrongly added last year now rectified, also
depreciation charged thereon reversed during the year.
Note 4: Other Income
Disclosure under AS 15
Employee benefit plans( Defined contribution plans)
The Company makes Provident Fund and Superannuation Fund contributions
to defined contribution plans for qualifying employees. Under the
Schemes, the Company is required to contribute a specified percentage
of the payroll costs to fund the benefits. The Company recognised Rs.
2,95,490/- (Year ended 31 March, 2013 Rs. 2,75,700/-) for Provident
Fund contributions and N.A. (Year ended 31 March, 2011 N.A.) for
Superannuation Fund contributions in the Statement of Profit and Loss.
The contributions payable to these plans by the Company are at rates
specified in the rules of the schemes.
NOTE ''5'': CORPORATE INFORMATION
Kunststoffe Industries Limited is a listed public limited Company,
incorporated under The Companies Act, 1956. The Company is engaged in
the business of "Job Works for Processing of HDPE/PP Pipes, etc."
NOTE ''6'': OTHER NOTES ON ACCOUNTS
I. Pursuant to reference made by the company, The Hon. Bench of BIFR,
New Delhi by their order dated 18.01.2007 declared the Company as Sick
Industry. Rehabilitation Scheme has been approved by BIFR during the
year.
II. The Company has revalued Fixed Assets, Investments and Loans &
Advances for the year ended 31.12.2007; Fixed Assets & Investments for
the year ended 31.03.2009 and Fixed Assets for the year ended
31.03.2012. The Revaluation of the year ended 31.12.2007 has resulted
into a loss of Rs. 14,79,06,784/- and the same has been debited to
Profit & Loss Account and shown below the line as "Extra Ordinary
Items". Similarly, the Revaluation of the year ended 31.03.2009 has
resulted into a Profit of Rs. 2,89,66,113/- and the same has been
credited to Profit & Loss Account as "Profit on Revaluation of Assets"
and shown below the line. So also, the Revaluation of the year ended
31.03.2012 has resulted into a Profit of Rs. 12,15,19,764/- and the
same has been credited to the Revaluation Reserve Account and shown in
the Balance Sheet as at 31.03.2012 under the head, Reserves & Surplus.
At the time of earlier revaluations carried out as on 31.12.2007 &
31.03.2009, the Gross Block was shown at Revalued Figures instead of
Cost. Hence the same has been rectified in the year under consideration
i.e. as at 31.03.2012 by replacing the Gross Cost of the Assets
deducting the loss on revaluation and adding the profit on revaluation
carried out as at 31.12.2007 & 31.03.2009 respectively. The difference
of Rs. 4,48,55,306/- between the under depreciation provided on reduced
value of the said assets for the year commencing from 01.01.2008 to
31.03.2009 (i.e. for a period of 15 months) and the over depreciation
provided on the increased value of the said assets has been debited to
the Revaluation Reserve Account of the year under consideration viz.
31.03.2012.
III. "The liability of Rs. 46,98,30,496.00/- was created in favour of
Gayatri Pipes & Fittings Pvt. Ltd. As under:
1) Rs. 26,70,72,939.00/- by debiting IDBI A/c for taking over it''s
liability on 31.03.2008.
2) Rs. 20,27,57,557.00/- by debiting P/L A/c as Prior year adjustment
on 20.03.2011.
In the year 2012-13, the Company has transferred Rs. 26,70,72,939.00/-
to General reserve as the said liability is waived by Gayatri Pipes &
Fittings Pvt. Ltd. as per their undertaking given to BIFR. Also, the
Company has transferred Rs. 20,27,57,557/- to P/L A/c and shown under
the head "Prior year Adjustment" as Gayatri Gayatri Pipes & Fittings
Pvt. Ltd. as per the same undertakings given to BIFR."
IV. No Provision for Income Tax liability has been made in terms of
BIFR Order dated 08.03.2013 under which vide clause 10.3(iii) the
company is exempt form the applicability of minimum Alternate tax (MAT)
under section 115JB of the income Tax Act, 1961.
V. Debtors and Creditors balances are subject to confirmations from the
parties.
VI. In the opinion of the Board of Directors the Current Assets, Loans
& Advances except those shown as doubtful have a value on realization
in the ordinary course of business at least equal to the amount at
which items are stated in the Balance Sheet.
VII. Figures of the previous year have been
re-grouped/rearranged/reclassified wherever necessary.
Mar 31, 2013
1. Pursuant to reference made by the company, The Hon. Bench of BIFR,
New Delhi by their order dated 18.01.2007 declared your Company as Sick
Industry. Rehabilitation Scheme is under fnal stage of acceptance and
it is hoped to be approved soon.
2. The Company has revalued Fixed Assets, Investments and Loans &
Advances for the year ended 31.12.2007; Fixed Assets & Investments for
the year ended 31.03.2009 and Fixed Assets for the year ended
31.03.2012. The Revaluation of the year ended 31.012.2007 has resulted
into a loss of Rs. 14,79,06,784/- and the same has been debited to
Proft & Loss Account and shown below the line as "Extra Ordinary
Items". Similarly, the Revaluation of the year ended 31.03.2009 has
resulted into a Proft of Rs.2,89,66,113/- and the same has been
credited to Proft & Loss Account as "Proft on Revaluation of Assets"
and shown below the line. So also, the Revaluation of the year ended
31.03.2012 has resulted into a Proft of Rs.12,15,19,764/- and the same
has been credited to the Revaluation Reserve Account and shown in the
Balance Sheet as at 31.03.2012 under the head, Reserves & Surplus. At
the time of earlier revaluations carried out as on 31.12.2007 &
31.03.2009, the Gross Block was shown at Revalued Figures instead of
Cost. Hence the same has been rectifed in the year under consideration
i.e. as at 31.03.2012 by replacing the Gross Cost of the Assets
deducting the loss on revaluation and adding the proft on revaluation
carried out as at 31.12.2007 & 31.03.2009 respectively. The difference
of Rs.4,48,55,306/- between the under depreciation provided on reduced
value of the said assets for the year commencing from 01.01.2008 to
31.03.2009 (i.e. for a period of 15 months) and the over depreciation
provided on the increased value of the said assets has been debited to
the Revaluation Reserve Account of the year under consideration viz.
31.03.2012.
3. The company has not ascertained liability towards payment of
gratuity and hence no provision has been made in the accounts.
4. Debtors and Creditors balances are subject to confrmations from the
parties.
5. In the opinion of the Board of Directors the Current Assets, Loans
& Advances except those shown as doubtful have a value on realisation
in the ordinary course of business at least equal to the amount at
which items are stated in the Balance Sheet.
6. The liability of Rs. 46,98,30,496.00/- was created in favour of
Gayatri Pipes & Fittings Pvt. Ltd. As under:
1). Rs. 26,70,72,939.00/- by debiting IDBI A/c for taking over itÂs
liability on 31.03.2008.
2). Rs. 20,27,57,557.00/- by debiting P/L A/c as Prior year adjustment
on 20.03.2011.
During the Current year, the Company has transferred Rs.
26,70,72,939.00/- to General reserve as the said liability is waived by
Gayatri Pipes & Fittings Pvt. Ltd. As per their Undertaking given to
BIFR.
During the year, the Company has transferred Rs. 20,27,57,557/- to P/L
A/c and shown under the head "Prior year Adjustment" as Gayatri Gayatri
Pipes & Fittings Pvt. Ltd. Has waived it as per their Undertakings
given to BIFR.
7. Modvat credit of Excise duty taken on purchase of Raw Materials is
not included in the value of inventory of Raw Material. Also value of
inventory of fnished goods does not include excise duty payable on
manufacture. This has no effect on the proft of the Company.
8. Figures of the previous year have been re-grouped / rearranged
/reclassifed wherever necessary.
Mar 31, 2012
At the time of earlier revaluations carried out as on 31.12.2007 &
31.03.2009, the Gross Block was shown at Revalued Figures instead of
Cost. Hence the same has been rectified in the year under consideration
i.e. as at 31.03.2012 by replacing the Gross Cost of the Assets
deducting the loss on revaluation and adding the profit on revaluation
carried out as at 31.12.2007 & 31.03.2009 respectively. The difference
of Rs.4,48,55,306/- between the under depreciation provided on reduced
value of the said assets for the year commencing from 01.01.2008 to
31.03.2009 (i.e. for a period of 15 months) and the over depreciation
provided on the increased value of the said assets has been debited to
the Revaluation Reserve Account of the year under consideration viz.
31.03.2012.
1. The company has not ascertained liability towards payment of
gratuity and hence no provision has been made in the accounts.
2. Debtors and Creditors balances are subject to confirmations from
the parties.
3. In the opinion of the Board of Directors the Current Assets, Loans
& Advances except those shown as doubtful have a value on realisation
in the ordinary course of business at least equal to the amount at
which items are stated in the Balance Sheet.
4. Modvat credit of Excise duty taken on purchase of Raw Materials is
not included in the value of inventory of Raw Material. Also value of
inventory of finished goods does not include excise duty payable on
manufacture. This has no effect on the profit of the Company.
5. Figures of the previous year have been re-grouped / rearranged
/reclassified wherever necessary.
6.1 Share application money pending allotment
As at 31 March 2012, the Company has received an amount of Rs.
13,800,000 towards share application money towards 1,380,000 equity
shares of the Company. (As at 31 March, 2011 Rs. 4,800,000 towards
480,000 equity shares) at a premium of Rs. 0 (As at 31 March, 2011 Rs.
0). The share application money was received pursuant to the B1FR
direction in its hearing dated 15/10/2010. The Company has sufficient
authorised capital to cover the allotment of these shares.
7.1 Employee benefit plans
7.1.a Defined contribution plans
The Company makes Provident Fund and Superannuation Fund contributions
to defined contribution plans for qualifying employees. Under the
Schemes, the Company is required to contribute a specified percentage
of the payroll costs to fund the benefits. The Company recognised Rs.
266,885 (Year ended 31 March, 2011 Rs. 175,597) for Provident Fund
contributions and N.A. (Year . ended 31 March, 2011 N.A.) for
Superannuation Fund contributions in the Statement of Profit and Loss.
The contributions payable to these plans by the Company are at rates
specified in the rules of the schemes.
7.1.b Defined benefit plans
The Company offers the following employee benefit schemes to its
employees: i. Gratuity Refer accounting note A 5 of Auditors report.
Mar 31, 2010
1. Bank of Baroda had agreed with other creditors for settlement under
OTS, however it transferred the Debt to International Asset
Reconstruction Co.(India) Pvt.Ltd. without any reference or prior
intimation. The matter is taken up with B.I.F.R while finalizing the
rehabilitation scheme. No adjustments are made in accounts pending
decision of B.I.F.R.
2. The company has not ascertained liability towards payment of
gratuity and hence no provision has been made in the accounts.
3. Debtors and Creditors balances are subject to confirmations from
the parties.
4. In the opinion of the Board of Directors the Current Assets, Loans
& Advances except those shown as doubtful have a value on realisation
in the ordinary course of business at least equal to the amount at
which items are stated in the Balance Sheet.
5. Modvat credit of Excise duty taken on purchase of Raw Materials is
not included in the value of inventory of Raw Material. Also value of
inventory of finished goods does not include excise duty payable on
manufacture. This has no effect on the profit of the Company.
6. Figures of the previous year have been re-grouped / rearranged
/reclassified wherever necessary.