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Notes to Accounts of Nilkamal Ltd.

Mar 31, 2017

1. Share capital

a) Rights, preferences and restrictions attached to Equity Shares: The Company has 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 in the ensuing Annual General Meeting, 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.

2. Borrowings:

(A) Secured loans:

a) Working Capital loans :

Working capital facilities of Rs, 8,280.56 lakhs (31st March, 2016 Rs, 7,444.72 lakhs, 1st April, 2015 Rs, 12,523.90 lakhs) from banks are secured on first pari passu basis by way of hypothecation of current assets of the Company, second pari passu charge by way of equitable mortgage on the Company''s immovable property and personal guarantee of Director/s. Working Capital Loans are repayable on Demand having Interest Rate from 9.30% p.a to 10.50% p.a (Previous Year 9.30% p.a to 10.50% p.a).

b) Term Loans:

Term loans of Nil (31st March, 2016 Rs, 3,055.64 lakhs, 1st April, 2015 Rs, 8,178.90 lakhs) from the Banks are secured on first pari passu basis by way of Equitable mortgage created on Company''s immovable properties situated at Sinnar (Maharashtra), Barjora (West Bengal), Noida (Uttar Pradesh), Vasona (UT of D & NH), Puducherry (UT), Kharadpada (UT of D & NH), Jammu (Jammu & Kashmir), Hosur (Tamil Nadu) together with all building and structures thereon and all Plant and Machinery, second pari passu charge by way of hypothecation of current assets of the Company. Also personal guarantee of a Director has been provided for the Term loans, except for a foreign currency loan of Nil (31st March, 2016 Rs, 3,055.64 lakhs, 1st April, 2015 Rs, 5,625.45 lakhs).

c) Term of Repayment

Forein currency loan are repayable in equal quaterly/ half yearly installments last installment due on March, 2018 as per repayment schedules, having interst rate from 3 moths Libor 1.50% p.a to 2.50% p.a which are reset periodicaly. These laons have been repaid and prepaid during the current year and hence balance assets 31st March, 2017 is Rs, Nil.

(B) Commercial Paper balance outstanding at year end Rs, Nil (Previous Year Rs, Nil). Maximum balance outstanding during the year Rs, 5,000 Lakhs (Previous Year Rs, 5,000 Lakhs).

3. Cross Currency Interest Rate Swap:

Derivative Instruments outstanding at the Balance Sheet date:

1(a) Forward Contracts against imports:

Forward contracts to buy USD 21.00 lakhs (31st March, 2016 USD 25.75 lakhs, 1st April, 2015 USD 11.50 lakhs) amounting to Rs, 1,401.94 lakhs (31st March, 2016 Rs, 1,756.52 lakhs, 1st April, 2015 Rs, 727.47 lakhs). Forward contracts to buy EURO Nil (31st March, 2016 EURO 1.59 lakhs, 1st April, 2015 EURO 1.40 lakhs)) amounting to Nil (31st March, 2016 Rs, 118.99 lakhs, 1st April, 2015 Rs, 108.48 lakhs).

The above contracts have been undertaken to hedge against the foreign exchange exposures arising from transactions like import of goods.

1(b) USD Floating rate/INR Fix rate cross-currency interest rate swap (CCIRS):

Outstanding USD/INR Floating rate cross-currency interest rate swap Nil USD (31st March, 2016 USD 46.12 lakhs, 1st April, 2015 USD 72.67 lakhs)) amounting to Nil Rupees (31st March, 2016 Rs, 3,055.64 lakhs, 1st April, 2015 Rs, 4,542.03 lakhs).

The above contracts had been undertaken to hedge against the foreign exchange exposure arising from foreign currency loan and interest thereon.

4. Dues to micro and small suppliers

Under the Micro, Small and Medium Enterprises Development Act, 2006, (MSMED) which came into force from 2nd October, 2006, certain disclosures are required to be made relating to Micro, Small and Medium enterprises. On the basis of the information and records available with the management, there are no outstanding dues to the Micro and Small enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006.

5. Related Party Disclosures:

Names of related parties and description of relationship

I Subsidiaries where control exists Nilkamal Eswaran Plastics Pvt. Ltd.

Nilkamal Eswaran Marketing Pvt. Ltd.

Nilkamal Crates and Bins, FZE.

II Joint Ventures Nilkamal Bito Storage Systems Pvt. Ltd.

Cambro Nilkamal Pvt. Ltd.

III Key Management Personnel Mr. Vamanrai V. Parekh, Chairman

Mr. Sharad V. Parekh, Managing Director

Mr. Hiten V. Parekh, Joint Managing Director

Mr. Manish V. Parekh, President and Executive Director - Furniture

Mr. Nayan S. Parekh, President and Executive Director - Material Handling

Independent Director:

Mr. K. R. Ramamoorthy Mr. Mahendra V. Doshi Mr. Mufazzal S. Federal Mr. S. K. Palekar Ms. Hiroo Mirchandani

Mr. Krishnamurthi Venkataraman (w.e.f. November 5, 2016)

Mr. Dadi B. Engineer (ceased w.e.f. May 30, 2016)

IV Relatives of Key Management Mrs. Dhruvi Nakul Kumar Personnel Mr. Mihir H. Parekh

Ms. Priyanka H. Parekh

V Enterprise owned or significantly Nilkamal Crates & Containers influenced by key Management M. Tech Industries Personnel or their relatives, where

transactions have taken place

6. (a) (i) Operating Lease in respect of Properties taken on Lease:

The Company has taken warehouses, showrooms, offices under operating leases. The agreements are executed for the period of 36 to 240 months with a non cancellable period upto 60 months. For certain properties taken on lease, contingent rent payable as a percentage of revenue from the respective stores, subject to a minimum rent.

The agreement is executed with a non cancelable period upto 60 months (Previous Year 48 months).

(b) Assets given on Operating Lease:

The Company has leased out some of its Material Handling equipments. The lease term is in the range of 36-60 months. There is no escalation or renewal clause in the lease agreements and sub-letting is not permitted. Rent Income during the year Rs, 152.70 lakhs (31st March, 2016 Rs, 228.24 lakhs) The carrying amounts of equipments given on operating leases and depreciation thereon for the period are:

7. In accordance with IND AS 108 - Operating Segment, segment information has been given in the Consolidated Financial Statement of Nilkamal Limited and therefore no separate disclosure on segment information is given in these financial statements.

8. Subsequent Events :

There are no significant subsequent events that would require adjustments or disclosures in the financial statements as on the balance sheet date.

* These amounts include Rs, 228.67 lakhs which have been directly deposited in the bank by the customers of the Company.

9. Corporate Social Responsibility

As required by Section 135 of Companies Act, 2013 and rules therein, a Corporate social responsibility committee has been formed by the Company, The Company has spent the following amount during the year towards corporate social responsibility (CSR) for activities listed under schedule VII of the Companies Act, 2013

(a) Gross amount required to be spent by the Company during the year 2016-17 Rs, 183.80 lakhs (Previous year Rs, 109.85 lakhs).

10. Proposed Dividend:

The Board of Directors at its meeting held on 11th May, 2017 have recommended a payment of final dividend of Rs, 7 (Rupees seven only) per equity share of face value of Rs, 10 each for the financial year ended 31st March, 2017. The same amounts to Rs, 10,445.75 lakhs excluding dividend distribution tax of Rs, 119.85 lakhs.Same is subject to approval at the ensuing Annual General Meeting of the Company and hence is not recognized as a liability.

* The fair value in respect of the unquoted equity investments is equal to the cost of the investments as per the contractual aggrements.

B. Measurement of fair values

Valuation techniques and significant unobservable inputs

The following tables show the valuation techniques used in measuring Level 2 and Level 3 fair values, as well as the significant unobservable inputs used.

Financial instruments measured at fair value_

Type Valuation technique

Fixed rates long term borrowings The valuation model considers present value of expected

__payments discounted using an appropriate discounting rate.

Forward contracts The fair value is determined using forward exchange rates at

_the reporting date._

Security Deposits The valuation model considers present value of expected

__payments discounted using an appropriate discounting rate.

Interest rate swaps Present value of the estimated future cash flows based on

observable yield curves

11. Financial instruments - Fair values and risk management (Continued)

C. Financial risk management

The Company has exposure to the following risks arising from financial instruments:

- Credit risk ;

- Liquidity risk ; and

- Market risk

i. Risk management framework

The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s Risk Management framework. The Board of Directors have adopted an Enterprise Risk Management Policy framed by the Company, which identifies the risk and lays down the risk minimization procedures. The Management reviews the Risk management policies and systems on a regular basis to reflect changes in market conditions and the Company''s activities, and the same is reported to the Board of Directors periodically. Further, the Company, in order to deal with the future risks, has in place various methods / processes which have been imbibed in its organizational structure and proper internal controls are in place to keep a check on lapses, and the same area been modified in accordance with the regular requirements.

The Audit Committee oversees how Management monitors compliance with the Company''s Risk Management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Audit Committee is assisted in its oversight role by the internal auditors.

ii. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers and loans and advances.

The carrying amount of following financial assets represents the maximum credit exposure:

Trade receivables and loans and advances.

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer in which it operates. 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 Risk Management Committee has established a credit policy under which each new customer is analyzed individually for creditworthiness before the Company''s standard payment and delivery terms and conditions are offered. Further for domestic sales, the company segments the customers into Distributors and Others for credit monitoring.

The Company maintains security deposits for sales made to its distributors. For other trade receivables, the company individually monitors the sanctioned credit limits as against the outstanding balances. Accordingly, the Company makes specific provisions against such trade receivables wherever required and monitors the same at periodic intervals.

The Company monitors each loans and advances given and makes any specific provision wherever required.

The Company establishes an allowance for impairment that represents its estimate of expected losses in respect of trade receivables and loans and advances.

Cash and cash equivalents and other Bank balances

The Company held cash and cash equivalents and other bank balances of Rs, 604.26 lakhs as on 31st March, 2017 (31st March, 2016 : Rs, 951.88 lakhs and 1st April, 2015 : Rs, 743.34 lakhs). The cash and cash equivalents are held with bank counterparties with good credit ratings.

Derivatives

The derivatives are entered into with bank counterparties with good credit ratings.

Loans and Advances:

The Company held Loans and advances of Rs, 3,198.80 lakhs as on 31st March, 2017 (31st March, 2016 : Rs, 3,429.37 lakhs and 1st April, 2015 : Rs, 3,364.39 lakhs). The loans and advances are in nature of rent deposit paid to landlords and are fully recoverable.

iii. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

As of 31st March, 2017, 31st March, 2016 and 1st April, 2015 the Company had unutilized credit limits from banks of Rs, 12,819 lakhs, Rs, 17,655 lakhs and Rs, 17,776 lakhs respectively.

Maturity profile of financial liabilities

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.

The gross inflows/(outflows) disclosed in the above tables represent the contractual undiscounted cash flows relating to the financial liabilities which are not usually closed out before contractual maturity. The disclosure shows net cash flow amounts for derivatives that are net cash-settled and gross cash inflow and outflow amounts for derivatives that have simultaneous gross cash settlement

iv. Market 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. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt. We are exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of our investments. Thus, our exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities in foreign currency. The objective of market risk management is to avoid excessive exposure in our foreign currency revenues and costs.

The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period.

Expected future cash flows

The expected future cash flows in respect of gratuity as at 31st March, 2017 were as follows Expected contribution

The expected contributions for defined benefit plan for the next financial year will be in line with the contribution for the year ended March 31, 2017, i.e. Rs, 150 lakhs

Compensated Absences:

The Compensated Absences is payable to all eligible employees for each day of accumulated leave on death or on resignation. Compensated Absences debited to Statement of Profit and Loss during the year amounts to Rs, 220.48 lakhs (31st March, 2016 Rs, 259.23 lakhs) and is included in Note 23 - ''Employee benefits expenses''. Accumulated non-current provision for leave encashment aggregates Rs, 512.47 lakhs (31st March, 2016 Rs, 416.22 lakhs and 1 April,2015 Rs, 375.31 lakhs) and current provision aggregates Rs, 282.13 lakhs (31st March, 2016 Rs, 312.39 lakhs and 1st April, 2015 Rs, 248.15 lakhs).

12. Hedge accounting

The Company''s risk management policy is to hedge its estimated foreign currency exposure in respect of highly probable forecast purchases and foreign currency borrowings. The Company uses forward exchange contracts to hedge its currency risk and cross currency interest rate swap to hedge its interest rate and currency risk related to foreign currency borrowings. Such contracts are generally designated as cash flow hedges.

The Company determines the existence of an economic relationship between the hedging instrument and hedged item based on the currency, amount and timing of their respective cash flows. The Company assesses whether the derivative designated in each hedging relationship is expected to be and has been effective in offsetting changes in the cash flows of the hedged item using the hypothetical derivative method.

13. Earnings per share (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of Equity shares outstanding during the year. Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.

14. First-time adoption of Ind AS

A. Transition to Ind AS

For the purposes of reporting as set out in Note 33, the Company has transitioned the basis of accounting from Indian generally accepted accounting principles ("IGAaP") to Ind AS. The accounting policies set out in note 33 have been applied in preparing the financial statements for the year ended 31st March, 2017, the comparative information presented in these financial statements for the year ended 31st March, 2016 and in the preparation of an opening Ind AS balance sheet at 1st April, 2015 (the "transition date").

In preparing the opening Ind AS balance sheet as at 1st April, 2015 and in presenting the comparative information for the year ended 31st March, 2016, the Company has adjusted amounts reported in financial statements prepared in accordance with IGAAP. An explanation of how the transition from IGAAP to Ind AS has affected the financial performance, cash flows and financial position is set out in the following tables and the notes that accompany the tables. On transition, the Company did not revise estimates previously made under IGAAP except where required by Ind AS.

B. Exemptions and exceptions availed B.1 Ind AS mandatory exceptions B.1.1 Estimates

The estimates at 1st April 2015 and 31st march 2016 are consistent with those made for the same dates in accordance with the Indian GAAP (after adjustments to reflect any differences if any, in accounting policies). The Company has made estimates for following items in accordance with Ind AS at the date of transition as these were not required under IGAAP:

1. Investment in equity instruments carried at FVTPL;

B.1.2Classification and measurement of financial assets

The Company has classified and measured the financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

B.2 Ind AS optional exemptions

B.2.1 Deemed cost

The Company has elected to continue with the carrying value for all of its property, plant and equipment, intangible assets recognized in the financial statements as the deemed cost at the date of transition to Ind AS, measured as per the IGAAP

B.2.2Deemed cost for investments in subsidiaries and Joint Ventures

The Company has elected to continue with the carrying value of its investments in subsidiaries and Joint Ventures as recognized in the financial statements as at the date of transition to Ind AS.

Accordingly, the Company has measured all its investments in subsidiaries and Joint Ventures at their IGAAP carrying value.

15.. First-time adoption of Ind AS (Continued)

16. Proposed dividend

Under the IGAAP, dividends proposed by the Board of Directors after the reporting date but before the approval of the financial statements were considered to be an adjusting event and accordingly recognized (along with related dividend distribution tax) as liabilities at the reporting date. Under Ind AS dividends so proposed by the Board are considered to be non adjusting event. Accordingly, provision for proposed dividend and dividend distribution tax recognized under IGAAP has been reversed.

17. Excise duty

Under IGAAP, revenue from sale of goods was presented net of excise duty on sales. Under Ind AS, revenue from sale of goods is presented inclusive of excise duty. Excise duty is presented in Statement of Profit and Loss as an expense. This has resulted in an increase in the revenue from operations and expenses for the year ended 31 March 2016. The total comprehensive income for the year ended and equity as at 31 March 2016 has remained unchanged.

18. Actuarial gain and loss

Under Ind AS, all actuarial gains and losses are recognized in other comprehensive income. Under IGAAP the Company recognized actuarial gains and losses in profit and loss. However this has no impact on the total comprehensive income and total equity as on 1 April 2015 or as on 31 March 2016.

19. Property Plant and Equipment

Under Ind AS, Items such as stores and spares and standby equipment are recognized as property, plant and equipment when it is held for use in production or supply of goods or services, or for administrative purpose and are expected to be used for more than one year. Under IGAAP the Company classified all such items as inventory.

20. Revenue recognition

Under IGAAP, revenue is recognized net of trade discounts, rebates, sales taxes and excise duties. Under Ind AS, revenue is recognized at the fair value of the consideration received or receivable, after the deduction of any discounts, rebates and any taxes or duties collected on behalf of the government such as sales tax and value added tax except excise duty. Discounts given include rebates, price reductions and incentives given to customers, cash discount, promotional couponing and trade communication costs which have been reclassified from ''Advertising and sales promotion'' within other expenses under IGAAP and netted from revenue under Ind AS.

21. Security deposit

Under IGAAP, the security deposits for leases are accounted at an undiscounted value. Under Ind AS, the security deposits for leases have been recognized at discounted value and the difference between undiscounted and discounted value has been recognized as ''Deferred lease rent'' which has been amortized over respective lease term as rent expense under ''other expenses''. The discounted value of the security deposits is increased over the period of lease term by recognizing the notional interest income under ''other income''. Under IGAAP, lease payments are required to be recognized on a straight-line basis over the term of the lease. Under Ind AS, lease payments which are structured to increase in line with expected general inflation to compensate for the lessor''s expected inflationary cost increases, are required to be recognized as an expense in line with its contractual term. Accordingly, the provision for scheduled increases on operating lease recognized under IGAAP has been written back under Ind AS.

22. Previous year figures have been re-group / reclassified wherever necessary.


Mar 31, 2016

1 Share capital

(a) Rights, preferences and restrictions attached to Equity Shares: The Company has 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 in the ensuing Annual General Meeting, 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.

2 Borrowings:

(A) Secured loans:

(a) Working Capital loans :

Working capital facilities of Rs. 7,444.72 lacs (Previous Year Rs. 12,523.90 lacs) from banks are secured on first pari passu basis by way of hypothecation of current assets of the Company, second pari passu charge by way of equitable mortgage on the Company''s immovable property and personal guarantee of Director/s. Working Capital Loans are repayable on Demand having Interest Rate from 9.30% p.a to 10.50% p.a (Previous Year 9.95% p.a to 12.50% p.a)

(b) Term Loans:

Term loans of Rs. 3,055.64 lacs (Previous Year Rs. 8,178.90 lacs) from the Banks are secured on first pari passu basis by way of Equitable mortgage created on Company''s immovable properties situated at Sinnar (Maharashtra), Barjora (West Bengal), Noida (Uttar Pradesh), Vasona (UT of D & NH), Puducherry (UT), Kharadpada (UT of D & NH), Jammu (Jammu & Kashmir), Hosur (Tamil Nadu) together with all building and structures thereon and all Plant and Machinery, second pari passu charge by way of hypothecation of current assets of the Company. Also personal guarantee of a Director had been provided for the Term loans, except for a foreign currency loan of Rs. 3,055.64 lacs (Previous Year Rs. 5,625.45 lacs).

(c) Terms of Repayment

(i) Rupee Term loans

Rupee Term Loans were repayable in equal quarterly Installments, last installments due for various draw downs from October 2015 to March 2016 as per repayment schedules, having Interest rate from 11.60% p.a to 12.25% p.a (Previous Year 11.50% p.a to 14.00% p.a) which are reset periodically.

(ii) Foreign Currency loans

Foreign Currency loans are repayable in equal quarterly/half yearly installments, last installments due on March, 2018 as per repayment schedules, having interest rate from 3 month LIBOR 1.50% p.a to 2.50% p.a which are reset periodically.

(B) Commercial Paper balance outstanding at year end Rs. Nil (Previous Year Rs. Nil). Maximum balance outstanding during the year Rs. 5,000 Lacs (Previous Year Rs. 3,000 Lacs).

3 Cross Currency Interest Rate Swap:

The Company has adopted the principles of hedge accounting as set out in Accounting Standard (AS 30) on ''Financial Instruments: Recognition and Measurement'', in respect of Cross Currency Interest Rate Swap (CCIRS) to hedge its foreign currency risk and interest rate risk, which are not covered by the requirements of Accounting Standard (AS 11) ''The Effects of Changes in Foreign Exchange Rates''. Accordingly Rs. 13.18 Lacs (Previous Year Rs. 20.05 Lacs) being difference arising on fair valuation of outstanding derivatives as on 31st March, 2016 is disclosed in Cash Flow Hedge Reserve in the balance sheet.

4 Dues to micro and small suppliers

Under the Micro, Small and Medium Enterprises Development Act, 2006, (MSMED) which came into force from 2 October 2006, certain disclosures are required to be made relating to Micro, Small and Medium enterprises. On the basis of the information and records available with the management, there are no outstanding dues to the Micro and Small enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006.

(5 Earnings in Foreign Currency :-

(i) FOB Value of exports Rs. 5,168.37 lacs (Previous year Rs. 5,145.12 lacs).

(ii) Technical and Management Fees from Subsidiaries Rs. 36.34 lacs (Previous Year Rs. 31.83 lacs).

(iii) Income earned from export of services Rs. 44.07 lacs (Previous Year Rs. 49.04 lacs).

(iv) Dividend Received from Subsidiaries Rs. 571.54 lacs (Previous Year Rs. 177.25 lacs).

(v) Lease Rent Received from Subsidiary Rs. 5.64 lacs (Previous Year Rs. 13.08 lacs).

(vi) Sale of Fixed Assets to Subsidiary Rs. 10.46 lacs (Previous Year Rs. 51.37 lacs)

6.(a) (i) Operating Lease in respect of Properties taken on Lease:

The Company has taken warehouses, showrooms, offices under operating leases. The agreements are executed for the period of 36 to 240 months with a non cancellable period upto 60 months. For certain properties taken on lease, contingent rent payable as a percentage of revenue from the respective stores, subject to a minimum rent.

7 In accordance with Accounting Standard 17 "Segment Reporting", segment information has been given in the Consolidated Financial Statement of Nilkamal Limited and therefore no separate disclosure on segment information is given in these financial statements.

8 Corporate Social Responsibility

As required by As required by Section 135 of Companies Act, 2013 and rules therein, a Corporate social responsibility committee has been formed by the Company, The Company has spent the following amount during the year towards corporate social responsibility (CSR) for activities listed under schedule VII of the Companies Act, 2013

(a) Gross amount required to be spent by the Company during the year 2015-16 Rs. 109.85 lacs (Previous year Rs. 115.22 lacs).

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


Mar 31, 2015

1. Contingent Liabilities and commitments to the extent not provided for in respect of:

(a) Contingent liabilities :-

('' in lacs)

Particulars 31st March, 2015 31st March, 2014

i) Excise and Service Tax matters 190.88 341.44

ii) Sales Tax matters * 1,616.48 1,132.60

iii) Income Tax matters 4.16 3.39

iv) a) On account of surety given on behalf of Joint - 10.00 Venture for claiming exemption from the payment of Central Excise Duty for export of excisable goods to foreign country or to Special Economic Zone / Export Oriented Unit without payment of Central Excise Duty

b) On account of Cross Subsidy Surcharge on electricity 9.38 9.38

* Includes Rs. 972.61 lacs (Previous Year Rs. 972.61 lacs) paid in full against the disputed Sales Tax liability under the Kerala General Sales Tax Act, 1963. The matter is pending for hearing in the Honorable Supreme Court of India.

Note: The Excise and Service Tax, Sales Tax and Income Tax demands are being contested by the Company at various levels. The Company has been legally advised that it has a good case and the demands by the authorities are not tenable. Future cash flows in respect of these are determinable only on receipt of judgements / decisions pending with various forums/ authorities.

(b) Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. 292.33 lacs (Previous Year Rs. 207.64 lacs).

2. Share capital

(a) Rights, preferences and restrictions attached to Equity Shares: The Company has only one class of equity shares having a par value of 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 in the ensuing Annual General Meeting, 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. Borrowings:

(A) Secured loans:

(a) Working Capital loans :

Working capital facilities of Rs. 12,523.90 lacs (Previous Year Rs. 17,599.17 lacs) from Banks are secured on first pari passu basis by way of hypothecation of current assets of the Company, second pari passu charge by way of equitable mortgage on the Company''s immovable property and personal guarantee of Director/s. Working Capital Loans are repayable on Demand having Interest Rate from 9.95% to 12.50%.

(b) Term Loans:

Term loans of Rs. 8,178.90 lacs (Previous Year: Rs. 14,388.53 lacs) from the Banks are secured on first pari passu basis by way of Equitable mortgage created on Company''s immovable properties situated at Sinnar (Maharashtra), Barjora (West Bengal), Noida (Uttar Pradesh), Vasona (UT of D & NH), Puducherry (UT), Kharadpada (UT of D & NH), Jammu (Jammu & Kashmir) , Hosur (Tamil Nadu) together with all building and structures thereon and all Plant and Machinery, second pari passu charge by way of hypothecation of current assets of the Company. Also personal guarantee of a Director has been provided for the Term loans, except for a foreign currency loan of Rs. 5,625.45 lacs (Previous Year Rs. 7,190.40 lacs).

(c) Terms of Repayment

(i) Rupee Term loan

Term Loans are repayable in equal quarterly Installments, last installments due for various draw downs from October 2015 to December 2018 as per repayment schedules, having Interest rate from 11.50% to 14.00% which are reset periodically

(ii) Foreign Currency loan

Foreign Currency loan is repayable in equal quarterly/half yearly installments, last installments due on March, 2018 as per repayment schedules, having interest rate from 3 /6 month LIBOR 1.50% to 2.50 % which are reset periodically.

(B) Commercial Paper balance outstanding at year end Rs. Nil (Previous Year Rs. Nil). Maximum balance outstanding during the year Rs. 3,000 Lacs (Previous Year Rs. 3,000 Lacs).

4. Cross Currency Interest Rate Swap:

The Company has adopted the principles of hedge accounting as set out in Accounting Standard (AS 30) on ''Financial Instruments: Recognition and Measurement'', in respect of Cross Currency Interest Rate Swap (CCIRS) to hedge its foreign currency risk and interest rate risk, which are not covered by the requirements of Accounting Standard (AS 11) ''The Effects of Changes in Foreign Exchange Rates''. Accordingly '' 20.05 Lacs being difference arising on fair valuation of outstanding derivatives as on 31 March, 2015 disclosed in Cash Flow Hedge Reserve in the balance sheet.

5. Dues to micro and small suppliers

Under the Micro, Small and Medium Enterprises Development Act, 2006, (MSMED) which came into force from 2 October 2006, certain disclosures are required to be made relating to Micro, Small and Medium enterprises. On the basis of the information and records available with the management, there are no outstanding dues to the Micro and Small enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006.

6. Related Party Disclosures:

Names of related parties and description of relationship

I Foreign Subsidiaries where control exists

Nilkamal Eswaran Plastics Pvt. Ltd.

Nilkamal Eswaran Marketing Pvt. Ltd.

Nilkamal Crates and Bins, FZE.

II Joint Venture

Nilkamal Bito Storage Systems Pvt. Ltd.

Cambro Nilkamal Pvt. Ltd.

III Key Management Personnel

Mr. Vamanrai V. Parekh, Chairman Mr. Sharad V. Parekh, Managing Director Mr. Hiten V. Parekh, Executive Director Mr. Manish V. Parekh, Executive Director Mr. Nayan S. Parekh, Executive Director

IV Relatives of Key Management Personnel

Mrs. Dhruvi Nakul Kumar Miss Priyanka H. Parekh

V Enterprise owned or significantly influenced by key Management Personnel or their relatives, where transactions have taken place Nilkamal Crates & Containers

M. Tech Industries

7. (a) (i) Operating Lease in respect of Property taken on Lease:

The Company has taken warehouses, showrooms, offices under operating leases. The agreements are executed for the period of 36 to 240 months with a non cancelable period upto 60 months. For certain properties taken on Lease, contingent rent payable as a percentage of revenue from the respective stores, subject to a minimum rent.

(b) Asset given on Operating Lease:

The Company has leased out some of its Material Handling equipments. The lease term is in the range of 36-60 months. There is no escalation or renewal clause in the lease agreements and sub-letting is not permitted. The carrying amounts of equipments given on operating leases and depreciation thereon for the period are:

8. Disclosure pursuant to Accounting Standard - 15 "Employee Benefits":

(a) The Company recognised Rs. 356.72 lacs (Previous Year Rs. 282.89 lacs) for provident fund contribution in the Statement of Profit and Loss.

(c) Compensated Absences:

The Compensated Absences is payable to all eligible employees for each day of accumulated leave on death or on resignation. Compensated Absences debited to Statement of Profit and Loss during the year amounts to Rs. 207.42 lacs (Previous Year Rs. 125.07 lacs) and is included in Note 23 - ''Employee benefits expenses''. Accumulated non-current provision for leave encashment aggregates Rs. 375.31 lacs (Previous Year Rs. 321.73 lacs) and current provision aggregates Rs. 248.15 lacs (Previous Year Rs. 219.90 lacs).

(b) Contingent Liability in respect of the Jointly Controlled Entities: (`Rs. in lacs)

Particulars 2014-15 2013-14

(a) Directly incurred by the Company - 10.00

(b) Share of the Company in contingent liabilities which have been incurred - -

jointly with other ventures 85.29 -

(c) ShareoftheCompany in contingent liabilities incurred by jointly controlled entity - - (to the extent ascertainable)

(d) Share of other ventures in contingent liabilities incurred by jointly controlled entity.

9. In accordance with Accounting Standard 17 "Segment Reporting", segment information has been given in the Consolidated Financial Statement of Nilkamal Limited and therefore no separate disclosure on segment information is given in these financial statements.

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


Mar 31, 2014

1. Contingent Liabilities and commitments to the extent not provided for in respect of:

a) Contingent liabilities :-

(Rs. in lacs)

Particulars 31st March, 31st March, 2014 2013

(i) Excise and Service Tax matters 341.44 366.26

(ii) Sales Tax matters * 1,132.60 1,192.11

(iii) Income Tax matters 3.39 3.39

(iv) (a) On account of corporate guarantee given to the - 59.50

Department of Customs for availing custom duty benefits under Export Promotion Capital Goods Scheme on behalf of Joint venture for facilities availed by them (amount outstanding at close of the year)

(b) On account of surety given on behalf of Joint Venture for 10.00 10.00 claiming exemption from the payment of Central Excise

Duty for export of excisable goods to foreign country or to SEZ/EOU unit without payment of Central Excise Duty

(c) On account of Cross Subsidy Surcharge on electricity 9.38 9.38

* Includes Rs. 972.61 lacs (Previous Year 972.61 lacs) paid in full against the disputed Sales Tax liability under the Kerala General Sales Tax Act, 1963. The matter is pending for hearing in the Honorable Supreme Court of India.

Note: The Excise, Service Tax, Sales Tax and Income Tax demands are being contested by the Company at various levels. The Company has been legally advised that it has a good case and the demands by the authorities are not tenable. Future cash flows in respect of these are determinable only on receipt of judgements / decisions pending with various forums / authorities.

b) Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs.207.64 lacs (Previous Year Rs.504.52 lacs).

Provision is estimated for expected warranty claim in respect of products sold during the year based on past experience regarding defective claim of products and cost of rectifcation or replacement. It is expected that most of this cost will be incurred over next 12 months which is as per warranty terms.

2. Share capital

(a) Rights, preferences and restrictions attached to Equity Shares: The Company has 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 in the ensuing Annual General Meeting, 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. Borrowings : (A) Secured loans :

(a) Working Capital loans :

Working capital facilities of Rs. 17,599.17 lacs (Previous year Rs. 24,254.51 lacs) from Banks are secured on first pari passu basis by way of hypothecation of current assets of the Company, second pari passu charge by way of equitable mortgage on the Company''s immoveable property and personal guarantee of Director/s. Working capital loans repayable on demand having interest rate from 9.95% to 12.50%.

(b) Term Loans:

(i) Term loans of Rs. 14,388.53 lacs (previous year Rs. 15,085.91 lacs) from the Banks are secured on first pari passu basis by way of Equitable mortgage created on Company''s immoveable properties situated at Sinnar (Maharashtra), Barjora (West Bengal), Noida (Uttar Pradesh), Vasona (UT of D & NH), Puducherry (UT), Kharadpada (UT of D & NH), Jammu (Jammu & Kashmir), Hosur (Tamil nadu) together with all building and structures thereon and all Plant & Machinery, second pari passu charge by way of hypothecation of current assets of the Company. Also personal guarantee of a Director has been provided for the Term loans, except for a foreign currency loan of Rs. 5,392.80 lacs (Previous Year Rs. 4,887.66 lacs).

(ii) Vehicle loan of Rs. Nil (Previous Year Rs. 4.81 lacs) was secured against respective assets.

(c) Terms of Repayment

(i) Rupee Term loan

Term loans are repayable in equal quarterly installments, last installments due for various draw downs from December, 2014 to December, 2017 as per repayment schedules, having interest rate from 11.50% to 14.00% which are reset periodically.

(ii) Foreign Currency loan

Foreign Currency loan is repayable in equal quarterly/half yearly installments, last installments due on March, 2018 as per repayment schedules, having interest rate from 3 / 6 month LIBOR 1.50% to 2.50 % which are reset periodically.

(B) Maximum balance outstanding during the year by way of issue of Commercial Papers Rs. 3,000 lacs (Previous Year Rs. 5,000 lacs)

4. Cross Currency Interest Rate Swap:

The Company has transacted a cross currency interest rate swap (CCIRS) agreement with banks to hedge the principal and interest of the ECB Loan of USD 9.40 Million (Previous year USD 5.10 Million). The Company has designated this ECB loan and the CCIRS in a cash fow hedge accounting relationship. The change in the fair value of the CCIRS, to the extent considered effective, is taken to the ''Cash fow hedge reserve account'' under Reserves & Surplus under Note 2. Of this, during current year Rs. 322.22 Lacs has been debited to statement of profit and loss to offset the loss on restatement of this ECB (previous year, credit of Rs. 77.21 lacs). The net effect on restatement of ECB amounts to Rs. 245.01 lacs (previous year, credit of Rs. 45.59 lacs). The net balance amounting to Rs. 94.81 lacs (previous year Rs. 45.59 lacs) represents the balance effective portion of cash fow hedge. Had the Company not exercised such option, the net profit after tax for the year ended on 31st March, 2014 would have been higher by Rs.49.22 lacs (Previous Year Rs. 45.59 lacs ).

5. Dues to micro and small suppliers

Under the Micro, Small and Medium Enterprises Development Act, 2006, (MSMED) which came into force from 2 October, 2006, certain disclosures are required to be made relating to Micro, Small and Medium enterprises. On the basis of the information and records available with the management, there are no outstanding dues to the Micro and Small enterprises as Defined in the Micro, Small and Medium Enterprises Development Act, 2006.

6. The foreign exchange fuctuation on outstanding foreign currency loan has been accounted for as per Accounting Standard (AS 11) as amended wide Notifcation dated 29th December, 2011 with further clarifcation note dated 9th August, 2012 issued by the Ministry of Corporate Affairs Government of India. Consequently, an amount of Rs. 474.84 lacs (Previous year Rs. 327.06 lacs) is capitalised as cost of fixed assets. The Company has provided additional amount of depreciation of Rs. 197.01 lacs (Previous year Rs. 97.90 lacs) on such costs. Had the Company not exercised the said option, the net profit after tax for the year ended on 31st March, 2014 would have been lower by Rs.183.40 lacs (Previous year Rs. 154.81 lacs).

(g) Earnings in Foreign Currency :- (i) FOB Value of exports Rs. 4,443.36 lacs (Previous year Rs. 3,827.88 lacs).

(ii) Technical and Management Fees from Subsidiaries Rs. 28.96 lacs (Previous year Rs. 115.60 lacs). (iii) Income earned from export of services Rs. 81.07 lacs (Previous Year Rs. 37.93 lacs). (iv) Dividend Received from Subsidiaries Rs. 11.72 lacs (Previous Year Rs. 54.97 lacs). (v) Lease Rent Received from Subsidiary Rs. 6.76 lacs (Previous Year Rs. 5.37 lacs).

Names of related parties and description of relationship

(i) Foreign Subsidiaries where control exists

Nilkamal Eswaran Plastics Pvt. Ltd. Nilkamal Eswaran Marketing Pvt. Ltd. Nilkamal Crates & Bins, FZE.

(ii) Joint Venture

Nilkamal Bito Storage Systems Pvt. Ltd. Cambro Nilkamal Pvt. Limited.

(iii) Key Management Personnel

Shri Vamanrai V. Parekh, Chairman Shri Sharad V. Parekh, Managing Director Shri Hiten V. Parekh, Executive Director Shri Manish V. Parekh, Executive Director Shri Nayan S. Parekh, Executive Director

(iv) Enterprise owned or significantly influenced by key Management Personnel or their relatives, where transactions have taken place

Nilkamal Crates & Containers Mrs. Dhruvi Nakul Kumar Miss Priyanka H. Parekh

(c) Compensated Absances:

The Compensated Absences is payable to all eligible employees for each day of accumulated leave on death or on resignation. Compensated Absences debited to Statement of profit and Loss during the year amounts to Rs. 125.07 lacs (Previous Year Rs. 185.63 lacs) and is included in Note 23 - ''Employee benefits expenses''. Accumulated non-current provision for leave encashment aggregates Rs. 321.73 lacs (Previous Year Rs. 266.13 lacs) and current provision aggregates Rs. 219.90 lacs (Previous Year Rs. 245.49 lacs).

7. In accordance with Accounting Standard 17 "Segment Reporting", segment information has been given in the Consolidated Financial Statement of Nilkamal Limited and therefore no separate disclosure on segment information is given in these financial statements.

8. Previous year figures have been regrouped / recast wherever necessary.


Mar 31, 2013

1. Contingent Liabilities and commitments to the extent not provided for in respect of :

a) Contingent liabilities :- (Rs. in Lacs)

Particulars 31st March, 31st March, 2013 2012

i) Excise and Service Tax matters 366.26 339.09

ii) Sales Tax matters * 1,192.11 1,260.93

iii) Income Tax matters 3.39 -

iv) a) On account of corporate guarantee given to the Department of Customs for availing custom duty benefits under Export Promotion 59.50 59.50 Capital Goods Scheme on behalf of Joint venture for facilities availed by them (amount outstanding at close of the year)

b) On account of surety given on behalf of Joint Venture for claiming exemption from the payment of Central Excise Duty for export 10.00 10.00 of excisable goods to foreign country or to SEZ/EOU unit without '' Rs. payment of Central Excise Duty

c) On account of Cross Subsidy Surcharge on electricity 9.38 -

* Includes Rs. 972.61 Lacs (Previous Year Rs. 972.61 Lacs) paid in full against the disputed Sales Tax liability under the Kerala General Sales Tax Act, 1963. The matter is pending for hearing in the Honorable Supreme Court of India.

Note: The Excise, Service Tax, Sales Tax and Income Tax demands are being contested by the Company at various levels. The Company has been legally advised that it has a good case and the demands by the authorities are not tenable. Future cash flows in respect of these are determinable only on receipt of judgements / decisions pending with various forums/ authorities.

b) Commitments

i) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. 504.52 Lacs (Previous Year Rs. 694.81 Lacs).

ii) Export commitment on EPCG license utilisation remaining to be executed Rs. Nil (Previous Year Rs. 375.20 Lacs )

2. Share Capital

a) Rights, preferences and restrictions attached to Equity Shares: The Company has 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 in the ensuing Annual General Meeting, 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. Borrowings :

(A) SECURED LOANS :

a) Working capital facilities from Banks are secured on first pari passu basis by way of hypothecation of current assets of the Company, second pari passu charge by way of equitable mortgage on the Company''s immoveable property and personal guarantee of Director/s.

b) Term loans of Rs. 11,174.07 lacs (Previous Year: Rs. 10,983.75 lacs) from the Banks are secured on first pari passu basis by way of Equitable mortgage created on Company''s immoveable properties situated at Sinnar (Maharashtra), Barjora (West Bengal), Noida (Uttar Pradesh), Vasona (UT of D & NH), Puducherry (UT), Kharadpada (UT of D & NH), Jammu (Jammu & Kashmir) , Hosur (Tamil nadu) together with all building and structures thereon and all Plant & Machinery, second pari passu charge by way of hypothecation of current assets of the Company. Also personal guarantee of a Director has been provided for the Term loans, except for a foreign currency loan of Rs. 4,887.66 lacs (Previous Year Rs. 1,272 lacs ).

c) Term loan of Rs. 4.81 lacs (Previous Year Rs. 13.31 lacs) is secured against respective assets.

d) Terms of Repayment Rupee Term Loan

Terms of Repayment of Rupee term loans having interest rate from 11.50% to 14.00%, which are reset periodically are given below:

i) Term loan amounting to Rs. Nil lacs (March 31, 2012: Rs. 249.94 lacs) repayable in equal quarterly installments, last installment due in December 2013.

ii) Term loan amounting to Rs. 208.31 lacs (March 31, 2012: Rs. 333.32 lacs) repayable in equal quarterly installments, last installment due in May 2015.

iii) Term loan amounting to Rs. 666.64 lacs (March 31, 2012: Rs. 1000.00 lacs) repayable in equal quarterly installments, last installment due in June 2016.

iv) Term loan amounting to Rs. 1,312.50 lacs (March 31, 2012: Rs. 2,062.50 lacs) repayable in equal quarterly installments, last installment due in January 2016.

v) Term loan amounting to Rs. 366.67 lacs (March 31, 2012: Rs. 400.00 lacs) repayable in equal quarterly installments, last installment due in December 2016.

vi) Term loan amounting to Rs. Nil (March 31, 2012: Rs.500.00 lacs) repayable in equal quarterly installments, last installment due in March 2014.

vii) Term loan amounting to Rs. 252.77 lacs (March 31, 2012: Rs. 585.00 lacs) repayable in equal quarterly installments, last installment due in December 2014.

viii) Term loan amounting to Rs. Nil (March 31, 2012: Rs. 344.00 lacs) repayable in equal quarterly installments, last installment due in March 2014.

ix) Term loan amounting to Rs. 574.00 lacs (March 31, 2012: Rs. 929.00 lacs) repayable in equal quarterly installments, last installment due in January 2016.

x) Term loan amounting to Rs. 400.00 lacs (March 31, 2012: Rs. 400.00 lacs) repayable in equal quarterly installments, last installment due in March 2017.

xi) Term loan amounting to Rs. 747.77 lacs (March 31, 2012: Rs. 999.99 lacs) repayable in equal quarterly installments, last installment due in July 2016.

xii) Term Loan amounting to Rs. 4.81 Lacs (March 31, 2012 Rs. 13.31 Lacs) repayable in equal monthly installments, last installment due in December 2014.

xiii) Term Loan amounting to Rs. 400.00 lacs (March 31, 2012 Rs. Nil) repayable in equal quarterly installments, last installment due in June 2017.

Foreign Currency Loan

Terms of Repayment of Foreign Currency loans having interest rate from 2.50% to 4.00% are given below:

i) Term loan amounting to Rs. 1,357.75 lacs (March 31, 2012: Rs.1,908.00 lacs) repayable in equal half yearly installments, last installment due in March 2016.

ii) Term loan amounting to Rs. 4,887.66 lacs (March 31, 2012: Rs. 1,272.00 lacs) repayable in equal quarterly installments, last installment due in March 2017.

(B) Terms of repayment for Long Term unsecured borrowings:

Term loan amounting to Rs. Nil (March 31, 2012: Rs.45.42 Lacs) repayable in equal quarterly installments, last installment due in November 2013. Rate of interest as at year end Nil p.a. (Previous year 10.69 % p.a.).

Installments falling due within twelve months from the year end have been classified as "Current maturities of long term debts" in Note 8.

(C) Maximum balance outstanding during the year by way of issue of Commercial Papers Rs. 5,000 Lacs (Previous Year Rs. 2,000 Lacs)

4. Cross Currency Interest Rate Swap:

The Company has transacted a cross currency interest rate swap (CCIRS) agreement with a bank to hedge the principal and interest of the ECB Loan of USD 5.10 Million (Previous year Nil). The Company has designated this ECB loan and the CCIRS in a cash flow hedge accounting relationship. The change in the fair value of the CCIRS, to the extent considered effective, is taken to the ''Cash flow hedge reserve account'' under Reserves & Surplus under Note 2. Of this, Rs. 77.21 Lacs (previous year Nil) has been transferred to statement of profit and loss to offset the profit on restatement of this ECB. The net balance amounting to Rs. 45.59 Lacs (previous year Nil) represents the balance effective portion of cash flow hedge. Had the Company not exercised such option, the net profit after tax for the year ended on 31st March, 2013 would have been higher by Rs.45.59 lacs (Previous Year Rs. Nil).

5. i) Principal outstanding of amount payable as on 31st March 2013, relating to Supplier registered as Micro, Small and Medium Enterprises Development Act, 2006 is Rs. Nil (Previous Year Rs. Nil) interest due thereon is Rs. Nil (Previous Year Rs. Nil).

ii) Amount of interest paid along with the amount of payments made beyond the amount due is Rs. Nil (Previous Year Rs. Nil).

iii) Amount of interest due and payable where the principal is already due is Rs. Nil (Previous Year Rs. Nil).

iv) The amount of interest accrued and remaining unpaid at the end of each accounting year Rs. Nil (Previous Year Rs. Nil).

6. The foreign exchange fluctuation on outstanding foreign currency loan has been accounted for as per Accounting Standard (AS 11) as amended wide Notification dated 29th December, 2011 with further clarification note dated 9th August, 2012 issued by the Ministry of Corporate Affairs Government of India. Consequently, an amount of Rs.327.06 lacs (Previous year Rs. 208.68 lacs) is capitalized as cost of fixed assets. The Company has provided additional amount of depreciation of Rs.97.90 lacs (Previous year Rs. 28.27 lacs) on such costs. Had the Company not exercised the said option, the net profit after tax for the year ended on 31st March, 2013 would have been lower by Rs.154.81 lacs (Previous year Rs. 121.88 lacs).

7. ''Nilkamal'' brand used by Nilkamal Limited, is owned by Nilkamal Crates & Containers against interest free deposit of Rs. 370 Lacs.

8. In accordance with Accounting Standard 17 "Segment Reporting", segment information has been given in the Consolidated Financial Statement of Nilkamal Limited and therefore no separate disclosure on segment information is given in these financial statements.

9. Previous year''s figures have been regrouped/recast wherever necessary.


Mar 31, 2012

1. Contingent Liabilities and Commitments to the extent not provided for in respect of :

a) Contingent Liabilities :-

(Rs.in Lacs)

As At As At 31st March, 2012 31st March, 2011

i) Excise matters 339.09 10.94

ii) Sales Tax matters * 1260.93 1048.12

iii) a) On account of corporate guarantee given to the 59.50 -

Department of Customs for availing custom duty benefits under Export Promotion Capital Goods Scheme on behalf of Joint venture for facilities availed by them (amount outstanding at close of the year)

b) On account of surety to Cambro Nilkamal Private Limited 10.00 - for claiming exemption from the payment of Central Excise Duty for export of excisable goods to foreign country or to SEZ/EOU unit without payment of Central Excise Duty

* Includes Rs. 972.61 Lacs (Previous Year Rs. 972.61 Lacs) paid in full against the disputed Sales Tax liability under the Kerala General Sales Tax Act, 1963 The matter is pending for hearing in the Honorable Supreme Court of India.

Note: The Excise and Sales Tax demands are being contested by the Company at various levels. The Company has been legally advised that it has a good case and the demands are not tenable. Future cash flows in respect of these are determinable only on receipt of judgements / decisions pending with various forums/ authorities.

b) Commitments

i) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. 694.81 Lacs (Previous Year Rs. 1,747.28 Lacs).

ii) Export commitment on EPCG license utilisation remaining to be executed Rs. 375.20 Lacs (Previous Year Rs. 1814.57 Lacs )

2. The Company being eligible for Incentives from the Government of Jammu & Kashmir / Central Government has accounted for interest subsidy receivable on its working capital loan Rs. 70 lacs (Previous year Rs. 58.28 lacs).

3. Share Capital

a) Rights, preferences and restrictions attached to equity Shares:

The Company has 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 in the ensuing Annual General Meeting, 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.

c) During the year 2007-08, 4,207,644 Equity Shares of Rs. 10/- each were issued pursuant to the scheme of amalgamation for consideration other than cash.

4. Borrowings :

(A) Secured Loans :

a) Working capital facilities from Banks are secured on first pari passu basis by way of hypothecation of current assets of the Company, second pari passu charge by way of equitable mortgage on the Company's immoveable property and personal guarantee of Director/s.

b) Term loans of Rs. 10,983.75 lacs (Previous Year: Rs. 6,967.92 lacs) from the Banks are secured on first pari passu basis by way of Equitable mortgage created on Company's immoveable properties situated at Sinnar (Maharashtra), Barjora (West Bengal), Noida (Uttar Pradesh), Vasona (UT of D & NH), Puducherry (UT), Kharadpada (UT of D & NH), Jammu (Jammu & Kashmir) , Hosur (Tamilnadu) together with all building and structures thereon and all Plant & Machinery, second pari passu charge by way of hypothecation of current assets of the Company. Also personal guarantee of a Director has been provided for the Term loans, except for a foreign currency loan of Rs. 1,272 lacs (Previous Year Rs. Nil ).

c) Term loan of Rs. 13.31 lacs (Previous Year Rs. Nil) are secured against respective assets.

d) terms of Repayment

Rupee term Loan

i) Term loan amounting to Rs. 249.94 lacs (March 31, 2011: Rs. 583.30 lacs) Repayable in equal quarterly installments, last installment due in December, 2013. Rate of interest as at year end 14.50 % p.a. (Previous year 13.00% p.a.).

ii) Term loan amounting to Rs. 333.32 lacs (March 31, 2011: Rs. 500.00 lacs) Repayable in equal quarterly installments, last installment due in May, 2015. Rate of interest as at year end 14.25% p.a. (Previous year 12.75% p.a.)

iii) Term loan amounting to Rs. 1,000.00 lacs (March 31, 2011: Rs. 1,000.00 lacs) Repayable in equal quarterly installments, last installment due in June, 2016. Rate of interest as at year end 12.75% p.a. (Previous year 11.50% p.a.).

iv) Term loan amounting to Rs. 2,062.50 lacs (March 31, 2011: Rs. Nil) Repayable in equal quarterly installments, last installment due in January, 2016. Rate of interest as at year end 12.75% p.a. (Previous year Nil p.a.).

v) Term loan amounting to Rs. 400.00 lacs (March 31, 2011: Rs. Nil) Repayable in equal quarterly installments, last installment due in March, 2017. Rate of interest as at year end 13.75% p.a. (Previous year Nil p.a.).

vi) Term loan amounting to Rs. 500.00 lacs (March 31, 2011: Rs. 1,000.00 lacs) Repayable in equal quarterly installments, last installment due in March, 2014. Rate of interest as at year end 13.75 % p.a. (Previous year 13.00% p.a.).

vii) Term loan amounting to Rs. 585.00 lacs (March 31, 2011: Rs. 917.00 lacs) Repayable in equal quarterly installments, last installment due in December, 2014. Rate of interest as at year end 13.75 % p.a. (Previous year 12.50 % p.a.).

viii) Term loan amounting to Rs. 344.00 lacs (March 31, 2011: Rs. 672.00 lacs) Repayable in equal quarterly installments, last installment due in March, 2014. Rate of interest as at year end 14.50% p.a.. (Previous year 12.25% p.a.)

ix) Term loan amounting to Rs. 929.00 lacs (March 31, 2011: Rs. Nil) Repayable in equal quarterly installments , last installment due in January, 2016. Rate of interest as at year end 14.50% p.a. (Previous year Nil p.a.).

x) Term loan amounting to Rs. 400.00 lacs (March 31, 2011: Rs. Nil ) Repayable in equal quarterly installments, last installment due in March, 2017. Rate of interest as at year end 14.00% p.a. (Previous year Nil p.a.).

xi) Term loan amounting to Rs. 999.99 lacs (March 31, 2011: Rs. Nil) Repayable in equal quarterly installments, last installment due in July, 2016. Rate of interest as at year end 13.50% p.a. (Previous year Nil p.a.).

xii) Term Loan amounting to Rs. 13.31 Lacs (March 31, 2011 Rs. Nil). Repayable in equal monthly installments, last installment due in December, 2014. Rate of interest as at year end 11.50 % p.a. (Previous year nil p.a.).

xiii) Term Loan amounting to Rs. Nil (March 31, 2011 Rs. 166.66 lacs). Repayable in equal quarterly installments, last installment due in September, 2012. Rate of interest as at year end Nil % p.a. (Previous year 11.25 % p.a.).

xiv) Term Loan amounting to Rs. Nil (March 31, 2011 Rs. 114.58 lacs). Repayable in equal quarterly installments, last installment due in February, 2013. Rate of interest as at year end Nil % p.a. (Previous year 11.00 % p.a.).

xv) Term Loan amounting to Rs. Nil (March 31, 2011 Rs. 420.00 lacs). Repayable in equal quarterly installments, last installment due in September, 2012. Rate of interest as at year end Nil % p.a. (Previous year 13.00 % p.a.).

xvi) Term Loan amounting to Rs. Nil (March 31, 2011 Rs. 250.00 lacs). Repayable in equal quarterly installments, last installment due in January, 2013. Rate of interest as at year end Nil % p.a. (Previous year 12.25 % p.a.).

Foreign Currency Loan

i) Term loan amounting to Rs. 1,908.00 lacs (March 31, 2011: Rs. 1344.38 lacs) Repayable in equal half yearly installments, last installment due in March, 2016. Rate of interest as at year end 2.89 % p.a. (March 31, 2011 2.81% p.a.).

ii) Term loan amounting to Rs. 1,272.00 lacs (March 31, 2011: Rs. Nil) Repayable in equal quarterly installments, last installment due in March, 2017. Rate of interest as at year end 2.97 % p.a. (March 31, 2011 Nil p.a.).

(B) terms of repayment for Long term unsecured borrowings:

Term loan amounting to Rs. 45.42 lacs (March 31, 2011: Rs. 100.65 Lacs) Repayable in equal quarterly installments, last installment due in November, 2013. Rate of interest as at year end 10.69 % p.a. (March 31, 2011 10.69 % p.a.).

Installments falling due within twelve months from the year end have been classified as "Current maturities of long term debts" in Note 7.

33. Pursuant to the Notification dated 29th December, 2011 issued by the Ministry of Corporate Affairs amending the Accounting Standard 11, the Company has exercised the option as per Para 46A inserted in the Standard for all long term monitary assets and liabilities. Consequently, an amount of Rs. 208.68 lacs is capitalized as cost of fixed assets. The Company has provided additional amount of depreciation of Rs. 28.27 lacs. Had the Company not exercised the said option, the net profit after tax for the year ended on 31st March, 2012 would have been lower by Rs. 121.88 lacs.

(*) Maximum balance of Loan outstanding during the Year Rs. Nil (Previous Year Rs. 3,178.24 lacs)

Certain Key Management Personnel have extended personal guarantees as security towards the borrowings of the Company.

NOTES:

Names of related parties and description of relationship

i Subsidiaries a) Foreign

Nilkamal Eswaran Plastics Pvt Ltd.

Nilkamal Eswaran Marketing Pvt.Ltd.

Nilkamal Crates & Bins, FZE.

ii Joint Venture

Nilkamal Bito Storage Systems Pvt Ltd.

Cambro Nilkamal Private Limited.

iii Key Management Personnel

Shri Vamanrai V. Parekh

Shri Sharad V. Parekh

Shri Hiten V. Parekh

Shri Manish V. Parekh

Shri Nayan S. Parekh

iv Enterprise owned or significantly influenced by key Management Personnel or their relatives, where transactions have taken place

Nilkamal Crates & Containers

Starshine Land Developers Pvt.Ltd.

Mrs. Dhruvi Nakul Kumar

Note:

Following individuals and entities taken together with persons and entities shown above under 'Related Party Transactions' disclosure will constitute to form a 'Group'.

Mrs. Nalini V. Parekh, Mrs. Maya S. Parekh, Mrs. Smriti H. Parekh, Mrs. Manju M. Parekh, Mrs. Purvi N. Parekh, Mrs. Rajul M Gandhi, Mrs. Dhruvi Nakul Kumar, Miss Priyanka H. Parekh, Mr. Mihir H. Parekh, Master Eashan M. Parekh, Master Dhanay N. Parekh, Miss Dhaniti N. Parekh, Mr. Manoj K. Gandhi, Mr. Nakul Kumar ,Vamanrai V. Parekh (HUF), Sharad V. Parekh (HUF), Hiten V. Parekh (HUF), Manish V. Parekh (HUF), Nayan S. Parekh (HUF), Parekh Plasto Industries Pvt. Ltd., Shrimant Holding Pvt. Ltd., Heirloom Finance Pvt. Ltd, Nilkamal Builders Pvt. Ltd.

5. 'Nilkamal' brand used by Nilkamal Limited, is owned by Nilkamal Crates & Containers against interest free deposit of Rs. 370 Lacs.

The agreements are executed for the period of 36 to 240 months with a non cancelable period from 0 to 60 months having a Renewable Clause.

For certain properties taken on Lease, contingent rent payable as a percentage of revenue from the respective stores, subject to a minimum rent.

The agreement is executed with a non cancelable period from 0 to 48 months.

6. The Company has an investment of Rs. 2,215.50 lacs in Nilkamal Bito Storage Systems Private Limited (NBSSPL), a Joint Venture Company. NBSSPL has incurred losses over the years, however, it has earned profit during the year. The Company has, at the close of the year, assessed the carrying value of investment in NBSSPL and no provision there against is considered necessary at present for diminution in the carrying value of the investment.

7. Disclosure pursuant to Accounting Standard – 15 "employee Benefits":

a) Amount of Rs. 236.72 lacs (Previous Year Rs. 191.92 lacs) towards defend contribution plans is recognised as expense in the Statement of Profit and Loss.

The estimates of future salary increases considered takes into account the inflation, seniority, promotion and other relevant factors.

8. In accordance with Accounting Standard 17 "Segment Reporting", segment information has been given in the Consolidated Financial Statement of Nilkamal Limited and therefore no separate disclosure on segment information is given in these financial statements.

9. The financial statements for the year ended 31st March, 2011 had been prepared as per the then applicable, pre- revised Schedule VI to the Companies Act, 1956. Consequent to the notification under the Companies Act, 1956, the financial statements for the year ended 31st March, 2012 are prepared under revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification.


Mar 31, 2011

1. Contingent Liabilities not provided for in respect of:

(Rs.in Lacs)

31st March, 2011 31st March, 2010

i) Excise matters 10.94 10.94

ii) Sales Tax matters 1048.12 923.23

Includes Rs. 972.61 Lacs paid in full against the disputed Sales Tax liability (Previous Year contingent liability Rs. 844 Lacs, paid there against Rs. 600 Lacs) under the Kerala General Sales Tax Act, 1963 The matter is pending for hearing in the Honorable Supreme Court of India.

Note : The Excise and Sales Tax demands are being contested by the Company at various levels. The Company has been legally advised that it has a good case and the demands are not tenable.

2. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. 1,747.28 Lacs (Previous Year Rs.653.24 Lacs).

3. Remuneration to Directors comprise of (a) Salary, allowances, etc. Rs. 313.16 Lacs (Previous Year Rs. 315.51 Lacs) and (b) Other Perquisites Rs.1.58 Lacs (Previous year Rs.1.58 Lacs)

4. Sundry Expenses include net effect of changes in the foreign currency rates :

Loss / (Gain) on revenue items included in Profit and Loss account for the year Rs. 58.43 Lacs. (Previous Year Rs. (294.80) Lacs)

5(A) Secured Loans :

a) The Working Capital Facilities amounting to Rs. 17,897.98 Lacs. (Previous Year 17,514.14 Lacs.) and a Term Loan amounting to Rs. 375 Lacs (Previous Year Rs. 1,125 Lacs) from Banks are secured on first pari passu basis by way of hypothecation of current assets of the Company, second pari passu charge by way of equitable mortgage on the Companys immoveable property and personal guarantees of Director/s.

b) Other Term Loans from Banks amounting to Rs. 7,968.39 Lacs (Previous Year Rs. 9,408.59 Lacs) are secured on first pari passu basis by way of Equitable mortgage created on Companys immoveable properties situated at Sinnar (Maharashtra), Barjora (West Bengal), Noida (Uttar Pradesh), Vasona (UT of D & NH), Puducherry, Kharadpada (UT of D & NH), Jammu (Jammu & Kashmir) together with all building and structures thereon and all Plant & Machinery, second pari passu charge by way of hypothecation of current assets of the Company and personal guarantee of a Director and Rs.2,344.37 lacs (Previous Year Rs.Nil) are secured on first pari passu basis by way of Equitable mortgage for which charge has since been created.

c) Vehicle Loans amounting to Rs. 10.10 Lacs (Previous Year Rs. 55.68 Lacs) are secured against respective assets.

(B) Unsecured Loans :

Maximum balance outstanding during the year by way of issue of Commercial Papers Rs. 5,000 Lacs (Previous Year Rs. 2,000 Lacs)

6. The Company has an investment of Rs. 2,215.50 Lacs in Nilkamal Bito Storage Systems Private Limited (NBSSPL), a Joint Venture Company. NBSSPL has incurred losses over the years, however, it has earned cash profit during the year. The Company has, at the close of the year, assessed the carrying value of investment in NBSSPL and no provision there against is considered necessary at present for diminution in the carrying value of the investment.

7. Sundry Debtors:

(a) Outstanding for more than six months includes Secured debts Rs. 0.51 Lacs (Previous Year Rs. 3.93 Lacs).

(b) Other Debts includes Secured debts Rs. 1,835.86 Lacs (Previous Year Rs. 1,544.97 Lacs).

(c) Includes Rs. 23.44 Lacs (Previous Year Rs. 78.77 Lacs), outstanding from Nilkamal Bito Storage Systems Pvt. Ltd., a joint venture company.

8. Advance recoverable in Cash or in Kind includes

i) Rs.10.84 Lacs (Previous Year Rs. 442.11 Lacs) being Interest Receivable on Loans and other Deposits.

ii) Rs.29.97 lacs (Previous Year Rs.Nil) being claims lodged with Insurance Company on account of three employee related frauds by way of embezzlement of funds during the year, estimated at Rs. 29.97 lacs (Previous Year Rs.Nil). Appropriate steps and Legal proceeding against the concerned employees have been taken.

9. Deposits include Security Deposit for premises, etc., of Rs. 720 Lacs (Previous Year Rs. 720 Lacs), Maximum balance during the year Rs. 720 Lacs (Previous Year Rs.720 Lacs) being amounts paid to a firm in which the Directors of the Company are interested and Rs. Nil (Previous Year Rs. 10 Lacs) to the Directors of the Company, Maximum balance during the year Rs. 10 Lacs (Previous Year Rs. 10 Lacs)

10. i) Principal outstanding of amount payable as on 31st March 2011, relating to Supplier registered as Micro, Small and Medium Enterprises Development Act, 2006 is Rs. Nil (Previous Year Rs. Nil) interest due thereon is Rs. Nil (Previous Year Rs. Nil).

ii) Amount of interest paid along with the amount of payments made beyond the amount due is Rs. Nil (Previous Year Rs. Nil).

iii) Amount of interest due and payable where the principal is already due is Rs. Nil (Previous Year Rs. Nil).

iv) The amount of interest accrued and remaining unpaid at the end of each accounting year Rs. Nil (Previous Year Rs. Nil).

g) Earnings in Foreign Currency :-

i) FOB Value of exports Rs. 2,354.44 Lacs (Previous year Rs. 1,507.83 lacs).

ii) Technical and Management Fees Rs. 126.94 Lacs (Previous year Rs. 84.79 Lacs).

iii) Income earned from export of services Rs. 78.98 Lacs (Previous Year Rs. 96.79 Lacs).

iv) Dividend Received from a Subsidary Company Rs. 60.64 Lacs (Previous Year Rs. 86.87 Lacs).

Note:

Following individuals and entities taken together with persons and entities shown above under Related

Party Transactions disclosure will constitute to form a Group.

Mrs. Nalini V. Parekh, Mrs. Maya S. Parekh, Mrs. Smriti H. Parekh, Mrs. Manju M. Parekh, Mrs. Purvi N. Parekh, Mrs. Rajul M Gandhi, Mrs. Dhruvi Nakul Kumar, Miss Priyanka H. Parekh, Mr. Mihir H. Parekh, Master Eashan M. Parekh, Master Dhanay N. Parekh, Miss Dhaniti N. Parekh, Mr. Manoj K. Gandhi, Mr. Nakul Kumar, Vamanrai V. Parekh (HUF), Sharad V. Parekh (HUF), Hiten V. Parekh (HUF), Manish V. Parekh (HUF), Nayan S. Parekh (HUF), Parekh Plasto Industries Pvt. Ltd., Shrimant Holding Pvt. Ltd., Heirloom Finance Pvt. Ltd., Nilkamal Builders Pvt. Ltd.

Related Parties is as identified by the Management and relied upon by the auditors.

11. Nilkamal brand used by Nilkamal Limited, is owned by Nilkamal Crates & Containers against interest free deposit of Rs. 370 Lacs.

12. Interest Expense in Schedule O represents Interest on Fixed Loans and Debentures Rs. 1,123.79 Lacs (Previous Year Rs. 1,416.42 Lacs); Discount on issue of Commercial Papers Rs. 172.54 Lacs (Previous Year Rs. 59.86 Lacs) and Other Interest Rs. 1,465.56 Lacs (Previous Year Rs. 1,228.18 Lacs)

The agreements are executed for the period of 36 to 240 months with a non cancelable period from 0 to 60 months having a Renewable Clause.

For certain properties taken on Lease, contingent rent payable as a percentage of revenue from the respective stores, subject to a minimum rent.

13. In accordance with Accounting Standard 17 "Segment Reporting", segment information has been given in the Consolidated Financial Statement of Nilkamal Limited and therefore no separate disclosure on segment information is given in these financial statements.

14. Previous years figures have been regrouped/rearranged wherever necessary.


Mar 31, 2010

1. Contingent Liabilities not provided for in respect of:

(Rs. in Lacs)

31st March, 2010 31st March, 2009

i) Excise matters 10.94 101.32

ii) Sales Tax matters * 923.23 132.58

iii) Corporate Guarantees given on behalf of Subsidiary Company, Bangladesh Taka (BDT) Nil. (Previous year (BDT) 888.99 Lacs), (amount outstanding at the close of the year) Refer Note 9(a) 646.80

* Includes Rs. 844 Lacs towards disputed Sales Tax liability under the Kerala General Sales Tax Act, 1963 against which the Company has received conditional stay from Honble Supreme Court of India.

Note : The Excise and Sales Tax demands are being contested by the Company at various levels. The Company has been legally advised that it has a good case and the demands are not tenable.

2. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. 653.24 Lacs (Previous Year Rs. 487.91 Lacs).

3. Remuneration to Directors comprise of (a) Salary, allowances, etc. Rs. 315.51 Lacs (Previous Year Rs. 155.82 Lacs) and (b) Other Perquisites Rs. 1.58 Lacs (Previous Year Rs.Nil).

4. Sundry Expenses include net effect of changes in the foreign currency rates:

Loss / (Gain) on revenue items included in Profit and Loss Account for the year Rs. (294.80) Lacs. (Previous Year Rs. 342.29 Lacs).

6. The Company, divested its entire stake in Starshine Land Developers Private Limited (a Subsidiary Company) (SLDPL) at cost, on 23rd July, 2009. In terms of the Share Purchase Agreement, loan given to SLDPL is to be repaid over a period of time. Advance recoverable in cash or in kind or for the value to be received in Schedule G, includes loan to SLDPL as at 31st March, 2010 Rs. 3,178.24 Lacs. ((Maximum balance of loan outstanding to SLDPL upto 23rd July, 2009 is Rs. 6,005.74 Lacs and Rs. 3,178.24 Lacs thereafter (Previous year Rs. 5,705.46 Lacs).

7. (A) Secured Loans :

a) The Working Capital Facilities amounting to Rs. 17,284.12 Lacs. (Previous Year Rs. 11,601.75 Lacs.) and a Term Loan amounting to Rs. 1,125 Lacs (Previous Year Rs. 1,500 Lacs) from Banks are secured on first pari passu basis by way of hypothecation of current assets of the Company, second pari passu charge by way of equitable mortgage on the Companys immoveable property and personal guarantees of Director/s.

b) Other Term Loans from Banks amounting to Rs. 9,408.59 Lacs (Previous Year Rs. 12,321.80 Lacs) are secured on first pari passu basis by way of Equitable mortgage created on Companys immoveable properties situated at Sinnar (Maharashtra), Barjora (West Bengal), Noida (Uttar Pradesh), Vasona (UT of D & NH), Puducherry, Kharadpada (UT of D & NH), Jammu (Jammu & Kashmir) together with all building and structures thereon and all Plant & Machinery, second pari passu charge by way of hypothecation of current assets of the Company and personal guarantees of Director/s.

c) Vehicle Loans amounting to Rs. 55.68 Lacs (Previous Year Rs. 96.91 Lacs) are secured against respective assets.

(B) Unsecured Loans:

Maximum balance outstanding during the year by way of issue of Commercial Papers Rs. 2,000 Lacs (Previous Year Rs. 2,000 Lacs).

8. Capital Work in Progress includes advances for Capital Expenditure Rs. 565.21 Lacs (Previous Year Rs. 223.33 Lacs).

9. a) The Company, during the year, sold its entire stake in Nilkamal Padma Plastics Private Limited (Bangladesh) (NPPPL) for an aggregate consideration of BDT 1. The carrying value of investments in NPPPL amounting to Rs. 438 Lacs has been charged to Profit and Loss Account during the Current Year. Further, a sum of Rs. 143.00 Lacs (included in Sundry Expenses in Schedule N) has been incurred to release the Corporate Guarantee given by the Company to the lenders of NPPPL, which has since been discharged after the close of the year.

b) The Company has an investment of Rs. 2,215.50 Lacs (including Rs. 390 Lacs made during the year) in Nilkamal Bito Storage Systems Private Limited (NBSSPL), a Joint Venture Company. NBSSPL has incurred losses over the years. Considering the efforts taken by the Management of NBSSPL to improve its performance, the Company has at the close of the year assessed the carrying value of investment in NBSSPL and no provision thereagainst is considered necessary at present for diminution in the carrying value of the investment.

10. Sundry Debtors :

a) Outstanding for more than six months includes Secured debts Rs. 3.93 Lacs (Previous Year Rs. 29.34 Lacs).

b) Other Debts includes Secured debts Rs. 1,544.97 Lacs (Previous Year Rs. 1,298.24 Lacs).

c) Includes Rs. 78.77 Lacs (Previous Year Rs. 51.24 Lacs), outstanding from Nilkamal Bito Storage Systems Pvt. Ltd., a Joint Venture Company.

11. Advance recoverable in Cash or in Kind includes Rs. 442.11 Lacs (Previous Year Rs. 336.91 Lacs) being Interest Receivable on Loans and other Deposits.

12. Deposits include Security Deposit for premises, etc., of Rs. 720.00 Lacs (Previous Year Rs. 645.25 Lacs), Maximum balance during the year Rs. 720 Lacs (Previous Year Rs. 645.25 Lacs) being amounts paid to a firm in which the Directors of the Company are interested and Rs. 10.00 Lacs (Previous Year Rs. 10.00 Lacs) to the Directors of the Company, Maximum balance during the year Rs. 10.00 Lacs (Previous Year Rs. 10.00 Lacs).

13. i) Principal outstanding of amount payable as on 31st March, 2010, relating to supplier registered as Micro, Small and Medium Enterprises Development Act, 2006 is Rs. Nif. Interest due thereon is Rs. Nil.

ii) Amount of interest paid along with the amount of payments made beyond the amount due is Rs. Nil.

iii) Amount of interest due and payable where the principal is already due is Rs. Nil.

iv) The amount of interest accrued and remaining unpaid at the end of each accounting year Rs. Nil.

g) Earnings in Foreign Currency :-

i) FOB Value of exports Rs. 1,507.83 Lacs (Previous year Rs. 1,502.92 Lacs).

ii) Technical and Management Fees Rs. 84.79 Lacs (Previous year Rs. 76.30 Lacs).

iii) Income earned from export of services Rs. 96.79 Lacs (Previous Year Rs. 34.95 Lacs).

iv) Dividend Received from a Subsidary Company Rs. 86.87 Lacs (Previous Year Rs. 12.71 Lacs).

Names of related parties and description of relationship

i Subsidiaries

a) Foreign

Nilkamal Eswaran Plastics Pvt Ltd.

Nilkamal Eswaran Marketing Pvt.Ltd.

Nilkamal Padma Plastics Pvt. Ltd. (ceased to be a Subsidiary w.e.f 1st January, 2010)

Nilkamal Crates & Bins, FZE.

b) Indian

Starshine Land Developers Pvt. Ltd. (ceased to be a Subsidiary w.e.f. 23rd July, 2009)

ii Joint Venture

Nilkamal Bito Storage Systems Pvt Ltd.

iii Key Management Personnel

Shri Vamanrai V. Parekh Shri Sharad V. Parekh Shri Hiten V. Parekh Shri Manish V. Parekh Shri Nayan S. Parekh

iv Enterprise owned or significantly influenced by key Management personnel or their relatives, where transactions have taken place Nilkamal Crates & Containers Starshine Land Developers Pvt. Ltd. (w.e.f. 23rd July, 2009)

Note:

Following individuals and entities taken together with persons and entities shown above under Related Party Transactions disclosure will constitute to form a Group.

Mrs. Nalini V. Parekh, Mrs. Maya S. Parekh, Mrs. Smriti H. Parekh, Mrs. Manju M. Parekh, Mrs. Purvi N. Parekh, Mrs. Rajul M. Gandhi, Mrs. Dhruvi Nakul Kumar, Miss Priyanka H. Parekh, Master Mihir H. Parekh, Master Eashan M. Parekh, Master Dhanay N. Parekh, Miss Dhaniti N. Parekh, Mr. Manoj K. Gandhi, Vamanrai V Parekh (HUF), Sharad V. Parekh (HUF), Hiten V. Parekh (HUF), Manish V Parekh (HUF), Nayan S. Parekh (HUF), Parekh Plasto Industries Pvt. Ltd., Shrimant Holding Pvt. Ltd., Heirloom Finance Pvt. Ltd, Nilkamal Builders Pvt. Ltd.

Related Parties is as identified by the Management and relied upon by the auditors.

14. Nilkamal brand used by Nilkamal Limited, is owned by Nilkamal Crates & Containers against interest free deposit of Rs. 370 Lacs.

15. Interest Expense in Schedule O represents Interest on Fixed Loans and Debentures Rs. 1,416.42 Lacs (Previous Year Rs. 1,347.41 Lacs); Discount on issue of Commercial Papers Rs. 59.86 Lacs (Previous Year Rs. 54.97 Lacs) and Other Interest Rs. 1,228.18 Lacs (Previous Year Rs. 2,783.12 Lacs).

16. In accordance with Accounting Standard 17 "Segment Reporting", segment information has been given in the Consolidated Financial Statement of Nilkamal Limited and therefore no separate disclosure on segment information is given in these financial statements.

17. Previous years figures have been regrouped / rearranged wherever necessary.

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