Mar 31, 2018
1. CORPORATE INFORMATION
Hitech Corporation Limited (formerly known as Hitech Plast Limited) (the Company) is engaged in manufacturing of rigid plastic containers specially catering to customers relating to Paints, Lube and Pharmacy product as well as export market. The Company is a public limited Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India, namely the Bombay Stock Exchange Limited (BSE) and the National Stock Exchange of India Limited (NSE). The Company''s registered office is at 201, Welspun House, 2nd floor, Kamala City, Lower Parel (W), Mumbai- 400 013.
2. BASIS OF PREPARATION, MEASUREMENT, KEY ACCOUNTING ESTIMATES AND JUDGEMENTS
2.1. Basis of preparation
The financial statements of the Company are prepared in accordance with Indian Accounting Standards (âInd AS'') as notified by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 (âAct'') read with the Companies (Indian Accounting Standards) Rules, 2015 as amended by the Companies (Indian Accounting Standards) Rules, 2016 and other relevant provisions of the Act.
The financial statements up to year ended March 31, 2017 were prepared in accordance with the accounting standards notified under the Companies (Accounting Standard) Rules 2006 and other relevant provisions of the Act, considered as the âPrevious GAAPâ.
These financial statements are the Company''s first Ind AS financial statements and are covered by Ind AS 101, First-time adoption of Indian Accounting Standards. An explanation of how the transition to Ind AS has affected the Company''s equity financial position, financial performance and its cash flows is provided in Note 45.
Current versus non-current classification
All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and the time taken between acquisition of assets for processing and their realization in cash and cash equivalent, the Company has ascertained its operating cycle as twelve months for the purpose of the classification of assets and liabilities into current and non-current.
2.2. Basis of Measurement
These financial statements have been prepared on a historical cost basis, except for the following assets and liabilities which have been measured at fair value or revalued amount:
- Certain financial assets and liabilities (including derivative instruments) measured at fair value (refer accounting policy regarding financial instruments),
- Defined benefit plans - plan assets measured at fair value.
The accounting policies have been applied consistently over all the periods presented in these financial statements.
Key estimates and assumptions
In preparing these financial statements, management has made judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses.
Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.
The areas involving critical estimates or judgements are:
i. Determination of the estimated useful lives of tangible assets and the assessment as to which components of the cost may be capitalized; (Note 3.1)
ii. Determination of the estimated useful lives of intangible assets (Note 3.2)
iii. Recognition and measurement of defined benefit obligations, key actuarial assumptions; (Note 39)
iv. Recognition and measurement of provisions and contingencies, key assumptions about the likelihood and magnitude of an outflow of resources; (Note 16)
v. Fair value of financial instruments (Note 30A)
vi. Significant judgements are involved in estimating budgeted profits for the purpose of paying advance tax, determining the provision for income taxes, including amount expected to be paid/recovered for uncertain tax positions
2.3. Measurement of Fair Value
The Company''s accounting policies and disclosures require financial instruments to be measured at fair values.
The Company has an established control framework with respect to the measurement of fair values. The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.
The management regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing services, is used to measure fair values, then the management assesses the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of Ind AS, including the level in the fair value hierarchy in which such valuations should be classified.
Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows. Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.
The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.
The Company is eligible for Industrial Promotion Subsidy under the Package Scheme of Incentive (PSI) 2007. Accordingly, in terms of the Indian Accounting Standard (Ind AS 20) âAccounting for Government Grants and Dislosure of Government Assistanceâ, the Company is eligible for an incentive of Rs. 61.91 Lakhs for the year ended March 31, 2018 (Previous Year : Rs.63.10 Lakhs) and the same is credited in the Statement of Profit and Loss under the head âOther operating incomeâ on accrual basis. The movement in the amount receivable is as as under:
Inventory hypothecated against secured borrowings (Refer Note 42)
The cost of inventories recognised as an expense during the year is disclosed in Note 24 & 25
The cost of inventories recognised as an expense includes Rs.134.98 lakhs (Previous year Rs.321.75 lakhs) in respect of write down of inventory to net realisable value. The reversal of such write down during the current year amounted to Rs.NIL.(Previous year Rs.NIL)
The carrying amounts of the trade receivables include receivables which are subject to invoice discounting facility as stated above. Under this facility, the Company has transferred the relevant receivables to the banks in exchange for cash and is prevented from selling or pledging the receivables. However, the Company has retained late payment and credit risk and therefore continues to recognise the transferred assets in their entirity in its Balance Sheet. The amount repayable under the invoice discounting facility is presented under unsecured borrowings.
Trade receivables hypothecated against secured borrowings (Refer Note 42)
Movement in Allowance for doubtful receivables
b. Terms/rights attached to equity shares
The Company has only one class of Equity Shares referred to as Equity Shares having a par value of Rs.10/- per share. Each holder of Equity Shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. Payment of dividend is also made in foreign currency to shareholders outside India. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
As per the Companies Act, 2013, the holders of Equity Shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts in the event of liquidation of the Company. The distribution will be in proportion to the number of Equity Shares held by the shareholders.
# As per the records of the Company, including its register of members.
d. Information regarding aggregate number of shares during the immediately preceeding five years
The Company has not issued any bonus shares or shares for consideration other than cash and has not bought back any shares during the past five years.
The Company has not allotted any shares pursuant to contract without payment being received in cash.
e. There are no calls unpaid on equity shares
f. No equity shares have been forfeited
During the financial year 2017-18 the Company redeemed 46,41,624 9% Non-Convertible Redeemable Cumulative Preference shares of Rs.10 each (by redeeming 15 Preference shares out of every 100 Preference shares held by the shareholders) aggregating to Rs.464.16 lakhs out of the accumulated profit available for dividend as per the provisions of Section 55 of the Companies Act, 2013. The Capital Redemption Reserve to the extent of the redemption of preference share capital has been created accordingly.
Description of nature and purpose of each reserve
1 Securities Premium
The amount received in excess of face value of equity shares is recognised in Securities Premium Reserve.The reserve is utilised in accordance with the provisions of the Companies Act, 2013
2. General Reserve
The Company has transferred a portion of net profit of the Company before declaring dividend to general reserves pursuant to the earlier provisions of Companies Act 1956. Mandatory transfer to general reserve is not required under the Companies Act 2013.
3. Capital Redemption Reserve
This reserve was created for redemption of preference shares in accordance with the provisions of the Companies Act, 2013.
4. Retained Earnings
This Reserve represents the cumulative profits of the Company and effects of remeasurement of defined benefit obligations. This Reserve can be utilised in accordance with the provisions of the Companies Act, 2013.
i) Term Loans:
a) Foreign Currency Loan
External Commercial Borrowings (ECB) loan from Standard Chartered bank carries interest @ LIBOR plus 350 basis points. The loan is secured by exclusive first charge on all the movable / immovable fixed assets, present & future (Land, Building, Plant & Machinery) located at the Khandala Plant. The principal repayment and coupon are both hedged for the entire period of loan. The loan is fully repaid as at March 31, 2018.
b) Rupee Term Loan from Bank balance outstanding Rs.4000 lakhs (March 31, 2017 Rs.1500 lakhs)
Term loan from HDFC Bank is repayable over a period of five years including a moratorium of one year commencing from the date of draw down. The loan has been fully availed and is repayable in 16 quarterly installments based on draw downs. The loan carries interest based on One year Marginal Cost of Lending Rate (MCLR) plus NIL Spread (adjustable annually).The present effective rate of interest is 8.15% p.a. The loan is secured by exclusive first charge on Plant & Machinery at Rohtak unit and charge on immovable fixed assets comprising of Land and Building at Rohtak.
c) Rupee Term Loan from Bank balance outstanding Rs.2300 lakhs (March 31, 2017 Nil)
Term loan from Kotak Bank is repayable over a period of six years including a moratorium of two years commencing from the date of draw down.The loan is repayable in 16 quarterly installments based on draw down. The loan carries fixed interest @ 8.35% p.a.for the amount drawn upto April 30,2018. The loan is secured by exclusive first charge on present and future movable fixed assets at Mysuru and Mortgage of Land and Building situated at Mysuru Plant. The execution of mortgage is under process.
ii) Deposits
Deposits from Director & Shareholders carry interest @ 9% to 10.50% p.a. and are repayable after 1-3 years from the date of deposit. The deposits are repayable by September 2018.
iii) 9% Non Convertible Redeemable Cumulative Preference Shares of Rs.10/- each
Preference Shares issued under the Scheme of Arrangement approved by the Honâble Bombay High Court on terms as under:
The Preference Shares carry preferential (cumulative) right to dividend, at the above said coupon rate, when declared. The Preference Shares do not carry any voting rights except in case of any Resolution placed before the Company which directly affects the rights attached to such shares or otherwise provided in the Companies Act, 2013 (the Act).The Preference Shares have the maximum redemption period of 20 years. However, the same may be redeemed fully or in such tranches, before the aforesaid period, by the express mutual consent of the holders of such Preference Shares and Company as may be allowed under the Act. The Preference Shares will be redeemed at face value out of profits of the Company which would otherwise be available for dividend or out of the proceeds of a fresh issue of capital made for the purposes of the redemption.
During the F.Y .2017-18 the Company has redeemed 46,41,624 preference shares at face value of Rs.10 each.
iv) Other Borrowings
a) Working capital facilities including cash credit from Banks are secured on first charge basis by way of hypothecation of inventories and book debts of specific units and collaterally secured by hypothecation of specific plant and machinery and equitable mortgage on land and building of specific units. The borrowings carries interest @ 8.00% to 11.05 % p.a.(P.Y. 8.20 % to 11.05 % p.a.).
b) The packing credit is granted by bank for purchase of trade mechandise against confirmed orders upto 90% of its value for a maximum tenure of 90 days .The average rate of interest is 8% p.a.
v) Invoice Discounting
Invoice discounting relate to customer sales invoices discounted by banks for a period not exceeding 90 days and carries interest @ 7.85% p.a. to 8.15% p.a (March 17: 8.15% p.a.to 8.90% p.a.)(April 1,2016: 9.50% p.a.)
vi) There is no default in repayment of principal and interest
vii) For carrying amount of assets offered as collateral against the above borrowings (Refer Note 42)
The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.
Significant management judgement is required in determining provision for income tax, deferred income tax assets and liabilities and recoverability of deferred income tax assets. The recoverability of deferred income tax assets is based on estimates of taxable income in which the relevant entity operates and the period over which deferred income tax assets will be recovered.
The Government of India introduced the Goods and Services Tax (GST) with effect from July 1, 2017. Consequently, revenue from operations thereafter is net of GST. However, revenue till June 30 ,2017 of the current financial year and the previous financial year is inclusive of excise duty amounting to Rs.923.32 lakhs and Rs.3,630.80 lakhs, the sales net of excise duty is Rs.38,548.22 lakhs and Rs.36,505.75.lakhs respectively.
ii) Corporate Social Responsibility expenses
The Company has spent Rs.12.45 lakhs during the financial year (March 31, 2017 Rs.54.99 lakhs) as per the provisions of section 135 of the Companies Act 2013, towards Corporate Social Responsibility (CSR) activities.
a) Gross Amount required to be spent by the Company during the year 2017-18 Rs.31.25 lakhs (March 31, 2017 Rs.55.23 lakhs).
b) Details of amount spent during the year
Note 3A : Financial Risk Management Objectives and Policies
The Company''s overall policy with respect to managing risks associated with Financial Instruments is to minimise potential adverse effects of Financial Performance of the Company. The policies of managing specific risks are summarised below:
a Foreign Currency Risk Management
The Company undertakes transactions denominated in foreign currencies; consequently exposures to exchange rate fluctuations arise. Exchange rate fluctuations are managed within approved policy parameters.
The carrying amounts of the Company''s foreign currency denominated assets and liabilities as at the end of the reporting periods are as follows:
Foreign Currency Sensitivity Analysis
The company is mainly exposed to changes in USD. The below table demonstrates the sensitivity to a 10 % increase or decrease in the USD against INR with all other variants held constant. The sensitivity analysis is prepared under net un-hedged exposure of the company as at the reporting date.
b Credit Risk Management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The credit risk arising from Trade Receivables is managed in accordance to the Company''s established policy and control relating to customer credit risk management. The credit quality of the customer is assessed based on the credit worthiness and past experience. The expected credit is based on the ageing of the days of receivables.
c Interest Rate Risk Management
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Management is responsible for monitoring of the Company''s interest rate position. Various variables are considered by management in structuring the company''s borrowing to achieve a reasonable competitive cost of funding.
Since the company has insignificant variable interest bearing borrowings the exposure to the risk of change in the market interest rates is minimal.
Exposure to interest rate risk
The interest rate profile of the company''s interest bearing financial instruments as reported to the management of the company is as follows
Fair Value Sensitivity Analysis for fixed rate instruments
The company does not account for any fixed rate financial assets and liabilities at fair value to profit or loss. Therefore, a change in interest rates at the reporting date would not affect Profit or Loss.
Cash flow sensitivity Analysis for variable rate instruments
A reasonable possible change of 100 BPS in interest rates would result in variation in interest expenses for the company by the amounts indicated in the table below. This calculation also assumes that the changes occur at the Balance Sheet date and has been calculated based on its exposure outstanding as at that date. The year end balances are not necessarily representative of the average debt outstanding during the period
d Liquidity Rate Risk Management
Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value. The company''s exposure to liquidity risk arises primarily from mis-matches of the maturities of financial assets and liabilities. The company manages the liquidity risk by maintaining adequate funds in cash and cash equivalents. The company also has adequate credit facilities arranged with banks to ensure there is sufficient cash to meet all its normal operating commitments on a timely and cost effective manner. The following are the remaining contractual maturities of financial liabilities at the reporting dates
Note 3B : Capital Management
For the purpose of the Company''s capital management, capital includes issued capital and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder value. As at March 31,2018 the Company had equity shares and prefence shares. Inorder to maintain and achieve optimal capital stucture the Company redeploys the earnings into the business based on its long term financial plans
Proposed Dividend
The Board of Directors at its meeting held on 14th May, 2018 have recommended payment of dividend of Rs.0.90 (Paise Ninety only) per Equity Share of Rs.each for the financial year ended March 31, 2018. The same amounts to Rs.186.05 lakhs including corporate dividend tax of Rs.31.47 lakhs. The above is subject to the approval by the shareholders at the ensuing Annual General Meeting of the company and hence is not recognised as a liability.
The Company has recognition for its In-house R & D unit situated at 28/9, D-2 Block, MIDC, Chinchwad, Pune (Unit- Technology Centre) upto March 31, 2020, issued by Government of India, Ministry of Science and Technology, Department of Scientific and Industrial Research, New Delhi. During the year the Company has incurred following expenditure on Research and Development :
Note 4 : Change in accounting policy for Inventories
In the current financial year, the Company has voluntarily changed its accounting policy on valuation of inventory of raw material from weighted average cost to First in First Out (FIFO) cost method as the Management is of the opinion that FIFO is more reflective of the consumption pattern of the Company.
As required by IND AS 8 âAccounting Policies, Changes in Accounting Estimates and Errors'' the said change in accounting policy has been applied retrospectively and the figures of the previous period have been restated to that extent.
The profits for the year ended March 31, 2018 and March 31, 2017 are higher by Rs.76.93 lakhs and by Rs.39.21 lakhs respectively. Accordingly the EPS for the year ended March 31, 2018 and March 31, 2017 is higher by Rs.0.29 and Rs.0.15 respectively.
Note 5 : Insurance claim
The manufacturing operations of Company''s plant at Rohtak (Haryana) were disrupted in February 2016 owing to fire which resulted in extensive damage to properties. Thereafter the Company rebuilt the factory building and plant and resumed operations in March 2017. The production and the level of operations has since increased gradually during the current financial year and reached normalcy.
The Company had lodged a property damage claim on reinstatement basis, against which an on account payment of Rs.1,905.71 lakhs was received from the insurance company in 2016-17. Final settlement of the Company''s claim towards the property damage is under assessment with the Insurance Company.
During the current year the Company has received a sum of Rs.567.32 lakhs towards the business interruption claim i.e. Loss of profit and standing charges during the indemnity period and the same has been duly reflected in the financials under the head âOther Incomeâ.
The Company enters into forward exchange contracts to hedge against its foreign currency exposures relating to the underlying transactions and firm commitments. The Company does not enter into any derivative instruments for trading or speculative purposes. During the year, Company has not entered into any forward exchange contract.
Note 6 : Disclosure pursuant to Indian Accounting Standard (IndAS - 17) Leases Assets given on operating lease
The Company does not have any asset given on operating lease during the reporting period.
Assets taken on operating lease
a. The Company has taken certain assets such as cars and premises on an operating lease basis, the lease rentals are payable by the Company on monthly basis.
b. Future minimum lease rentals payable as at March 31, 2018 as per the lease agreements:
Note 7 : Employee benefits
(1) Post employment benefits:
a Defined Contribution plan
Provident Fund and Employee State Insurance Scheme
Defined contribution plans are Provident Fund Scheme and Employee State Insurance Scheme. The Company contributes to the Government administered provident funds on behalf of its employees.
b Defined Benefit plan
Gratuity scheme
The Company operates a defined benefit gratuity plan for employees. The liability for the Defined Benefit Plan is provided on the basis of a valuation, using the Projected Unit Credit Method, as at the Balance Sheet date, carried out by an independent actuary. The Company has a gratuity trust. However, the Company funds its gratuity payouts to the trust from its cash flows. Accordingly, the Company creates adequate provision in its books every year based on actuarial valuation. These benefit plans expose the Company to actuarial risks, such as longevity risk, interest rate risk and investment risk.
c Amounts Recognised as Expense
i Defined Contribution Plan
Employer''s Contribution to Provident Fund including contribution to Family Pension Fund amounting to Rs.129.30 lakhs (previous year Rs.119.81 lakhs) has been included under Contribution to Provident and Other Funds in Note 26 âEmployee Benefit Expenses''.
ii Defined Benefit Plan
Gratuity cost amounting to Rs.43.48 Lakhs (previous year Rs.33.29 lakhs) has been included in Note 26 âEmployee Benefit Expenses''.
(2) Long Term Employee Benefits:
The liability towards compensated absences (annual leave) as at March 31, 2018, based on actuarial valuation carried out by using the Projected Unit Credit Method amounting to Rs.95.09 lakhs (March 31, 2017 : Rs.47.38 lakhs ) has been recognised in the Statement of Profit and Loss.
Effective April 1, 2017 the Company adopted the amendment to Ind AS 7, which requires the Company to provide disclosure that will enable users of financial statements to evaluate changes in liabilities from financing activities, including changes arising from cash flow and non cash changes. In order to meet this disclosure requirement, the reconciliation between the opening and closing balances for liabilities arising from financing activities in the Balance Sheet, is as stated below:
The Company''s Chief Operating Decision Maker, examines the Company''s performance on an entity level. The Company has only one reportable segment i.e.'' Plastic Containers''.
The Company''s revenue from external customer attributed to country other than India are not material.
Revenue aggregating to Rs.27,074.74 lakhs (March 31, 2017 Rs.27,904.90 lakhs) are derived from two external customers.
Note 8 : First Time Adoption of IndAS
As stated in Note 2, the Company''s financial statements for the year ended March 31, 2018 are the first annual financial statements prepared in compliance with Ind AS. The adoption of Ind AS was carried out in accordance with Ind AS 101, using April 1, 2016 as the transition date. Ind AS 101 requires that all Ind AS standards that are effective for the first Ind AS financial statements for the year ended March 31, 2018, be applied consistently and retrospectively for all fiscal years presented.
All applicable Ind AS have been applied consistently and retrospectively wherever required. The resulting difference between the carrying amounts of the assets and liabilities in the financial statements under both Ind AS and Previous GAAP as of the transition date have been recognized directly in equity at the transition date.
In preparing these financial statements, the Company has availed itself of certain exemptions and exceptions in accordance with Ind AS 101 as explained below:
a) Optional Exemptions from retrospective application availed:
(i) Business combination exemption: The Company has applied the exemption as provided in Ind AS 101 on non- application of Ind AS 103, âBusiness Combinationsâ to business combinations consummated prior to the date of transition (April 1, 2016).
(ii) Property, plant and equipment exemption: The Company has elected to apply the exemption available under Ind AS 101 to continue the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition (April 1, 2016).
b) Mandatory exceptions from retrospective application:
(i) Estimates: On assessment of the estimates made under the Previous GAAP financial statements, the Company has concluded that there is no necessity to revise the estimates under Ind AS, as there is no objective evidence of an error in those estimates. However, estimates that were required under Ind AS but not required under Previous GAAP are made by the Company for the relevant reporting dates reflecting conditions existing as at that date.
(ii) Classification 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.
(iiii) Derecognition of financial assets and financial liabilities: The Company has opted to apply the exemption available under Ind AS 101 to apply the derecognition criteria of Ind AS 109 prospectively for the transactions occurring on or after the date of transition to Ind AS.
c) Transition to Ind AS Reconciliations:
The following reconciliations provide the explanations and quantifications of the differences arising from the transition from previous GAAP to Ind AS in accordance with Ind AS 101:
I. Reconciliation of Total Equity as at March 31, 2017 and April 1, 2016
II. Reconciliation of Total Comprehensive income for the year ended March 31, 2017
III. Adjustments to Statement of Cash Flows for the year ended March 31, 2017
Notes to the reconciliation:
a Non Convertible Redeemable Cumulative Preference Shares re-classified as Financial Liabilities
Under IndAS 109 âFinancial Instruments'' Non Convertible Redeemable Cumulative Preference Shares have been classified as Financial Liabilities and disclosed under Borrowings, since the distribution of dividend is at the discretion of the issuer but a contractual obligation. Accordingly the liablity for dividend and dividend distribution tax thereon is treated as Finance Cost.
b Proposed Equity Dividend
In the financial statements prepared under Indian GAAP, dividend on equity shares recommended by the Board of Directors after the end of reporting period but before the financial statements were approved for issue, was recognised as a liability in the financial statements in the reporting period relating to which dividend was proposed. Under Ind AS, such dividend is recognised in the reporting period in which the same is approved by the members in a general meeting.
c Change in valuation of stock from weighted average to FIFO basis
As per IND AS 8 âAccounting Policies, Changes in Accounting Estimates and Errors'' when an entity changes its accounting policy voluntarily the said change is applied retrospectively to that extent. During the current financial year, the Company has voluntarily changed its accounting policy on valuation of inventories from weighted average cost to First in First out (FIFO) basis as the management is of the opinion that FIFO method is more reflective of the consumption pattern of the Company and accordingly figures for the previous years have been restated.
d Mark to Market Loss on Derivatives
The Company enters into forward exchange contracts to hedge against its foreign currency exposures relating to the underlying transactions and firm commitments. The Company does not enter into any derivative instruments for trading or speculative purposes. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently Marked to Market at the end of each reporting period. Exchange differences on such contracts are recognised in the Statement of Profit or Loss in the period in which exchange rate changes.
e Re-measurement cost of net defined benefit liability (net of tax)
In the financial statements prepared under Previous GAAP, remeasurement benefit of defined plans (gratuity), arising primarily due to change in actuarial assumptions was recognised as employee benefits expense in the Statement of Profit and Loss. Under Ind AS, such remeasurement benefits relating to defined benefit plans is recognised in OCI as per the requirements of Ind AS 19 Employee benefits. Consequently, the related tax effect of the same has also been recognised in Other Comprehensive Income.
Under previous GAAP, the interest cost on defined benefit liability was recognised as employee benefit expenses in the Statement of Profit and Loss. Under Ind AS the Company has recognised the net interest cost on defined benefit plans as finance cost.
f Invoice Discounting
Under the previous GAAP, on discounting of bills receivables, such receivables were derecognised and shown as contingent liability. Under Ind AS, as such bill discounting arrangement does not comply the derecognition criteria stated in Ind AS 109 Financial Instruments, such receivables are not derecognised and liability in the form of bill discounted has been recognised as borrowings.
g Cash credits from banks
Under Ind AS, cash credits from banks repayable on demand, which form an integral part of the cash management process are included in cash and cash equivalents for the purpose of presentation of statement of cash flows. Under previous GAAP, such cash credits were considered as part of borrowings and movements in cash credits were shown as part of financing activities.
Note 9 : Approval of financial statements
The financial statements are approved for issue by the Board of Directors in their meeting dated May 14, 2018.
Note 10 : Other Notes
The financial statements of the Company for the year ended March 31, 2017 were audited by another firm of Chartered Accountants vide their unqualified opinion dated May 9, 2017 and have been relied upon in respect of the Indian GAAP figures for the previous year by the auditors. Previous year''s figures have been regrouped / reclassified where necessary to confirm with financial statements prepared under Ind AS.
Mar 31, 2017
1. Deferred Tax Liabilities (Net)
The Company has recognized deferred tax arising on account of timing differences, being the difference between the taxable income and accounting income, that originates in one period and is capable of reversal in one or more subsequent period(s) in compliance with Accounting Standard (AS 22) - Accounting for Taxes on income.
A-Default in terms of repayment of principal and interest - NIL
Working capital facilities from Banks are secured on first charge basis by way of hypothecation of inventories and book debts of specific units and collaterally secured by hypothecation of plant and machinery and equitable mortgage on land and building of specific units.
The above borrowings carries interest @ 8.20 % to 11.05 % p.a.(P.Y. @ 9.25 % to 13.50% p.a.). © Bank Deposits & Margin Money Deposit given as security
Bank deposits and Margin money deposits, with a carrying amount of Rs. 7.50 Lakhs ( 31st March, 2016 Rs. 7.50 Lakhs) are kept for providing bank guarantee to secure payments to Government Authorities including Electricity Boards.
- The Company can utilise these balances only towards settlement of unclaimed dividend.
2. Research and Development
The Company has recognition for its In-house R & D unit situated at 28/9, D-2 Block, MIDC, Chinchwad, Pune (Unit- Technology Centre) upto 31st March,2017, issued by Government of India, Ministry of Science and Technology, Department of Scientific and Industrial Research, New Delhi. During the year the Company has incurred following expenditure on Research and Development:-
3. During the year 2015-16 manufacturing operations of the plant at Rohtak Haryana were disrupted from February 20, 2016 due to fire resulting into extensive damage to properties. The assets were fully insured and the Company received payment of Rs 1,905.71 lakhs on account from the Insurance company/salvage value. The final claim is being assessed by the Surveyors.
The Company had initiated rebuilding of the Building and Plant and have resumed operations in March 2017.
4. Pursuant to Accounting Standard (AS - 19) Lease, the following information is given Assets taken on operating lease
a. The Company has taken certain assets such as cars and premises on an operating lease basis, the lease rentals are payable by the Company on a monthly basis.
b. Future minimum lease rentals payable as at 31st March, 2017 as per the lease agreements:
c. Lease payments recognized in the Statement of Profit and Loss for the year are Rs. 290.93 Lakhs (31st March, 2016: Rs. 217.66 Lakhs).
5. Employee benefits
(1) Short term employee benefits:
The liability towards short term employee benefits for the year ended 31st March, 2017 has been recognized in the Statement of Profit and Loss.
(2) Post employment benefits:
The following disclosure are made in accordance with AS 15 (Revised) pertaining to Defined benefit Plans :
Notes:-
a) The estimates of future salary increases, considered in actuarial valuation, takes into account the inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.
b) The Company estimates that the amount to be contributed to the Gratuity fund upto the financial Year 2016-17 will be Rs. 101.89 Lakhs.
c) The Company regularly deposits employee and employers contribution of provident funds to Government managed fund i.e (EPFO) and hence the guidance on implementing AS - 15 (Revised) issued by Accounting Standards Board (ASB) of the Institute of Chartered Accountants of India, relating to employer established provident funds, is not applicable.
(3) Long Term Employee Benefits:
The liability towards compensated absences (annual leave and sick leave) as at 31st March, 2017, based on actuarial valuation carried out by using the Projected Unit Credit Method amounting to Rs. 47.38 Lakhs (31st March, 2016: Rs. 19.81 Lakhs ) has been recognized in the Statement of Profit and Loss.
6. Information on related party transactions as required by Accounting Standard (AS - 18) for the year ended 31st March, 2017.
1 Relationship:
(i) Holding Company
Geetanjali Trading and Investments Private Limited
(ii) Fellow Subsidiaries
Hitech Specialities Solutions Ltd Hitech Insurance Broking Services Ltd Haish Holding and Trading Company Pvt. Ltd.
Rituh Holding and Trading Company Pvt. Ltd.
Hitech Skills Development Pvt. Ltd.
(iii) Key Management Person:
Mr. Malav A. Dani (Managing Director)
Mr. Mehernosh A. Mehta (Whole Time Director)
Mr. Bharat Gosalia (Chief Financial officer)
Mrs. Namita R. Tiwari (Company Secretary)
(iv) Relatives of promoters
Mrs. Ina A. Dani Mrs. Vita J. Dani
(v) Promoter Directors
Mr. Ashwin S. Dani Mr. Jalaj A. Dani
(vi) Companies controlled by Directors/Relatives of Directors:
Dani Finlease Ltd.
Gujarat Organics Ltd.
Rayirth Holding and Trading Company Pvt. Ltd.
S C Dani Research Foundation Pvt. Ltd.
Pragati Chemicals Ltd.
Resins and Plastics Ltd.
Asian Paints Ltd.
Vijal Holding and Trading Co. Pvt. Ltd.
Smiti Holding and Trading Pvt. Ltd.
Isis Holding and Trading Company Pvt. Ltd
(vii) Employee Benefit funds where control exists :
Hitech Plast Employees'' Gratuity Trust
Mipak Industries Employees'' Group Gratuity Assurance Scheme Plast-Kul Industries Employees'' Group Gratuity Assurance Scheme Clear Plastics Employees'' Gratuity Trust
Mipak Polymers Ltd Employees'' Group Gratuity Assurance Scheme
7 Key management person who is under the employment of the Company is entitled to post employment benefits and other long term employee benefits recognized as per AS - 15 (Revised) Employee benefits in the Financial Statements. As these employee benefits are lumpsum amount provided on the basis of actuarial valuation, the same is not included above.
8. Disclosure in respect of transactions which are more than 10% of the total transactions of the same type with related parties during the year.
9. Segment Reporting.
As the Company business activity falls within a single primary business segment viz., "Plastic Containers", the disclosure requirements of Accounting Standard (AS-17) "Segment Reporting", as prescribed in the Companies (Accounting Standards) Rules, 2006, is not applicable. As on 31st March 2017, the capital employed in the reportable segment was '' 21,601.40 Lakhs (31st March, 2016 Rs. 20,337.97 Lakhs).
10. The Company is eligible for Industrial Promotion Subsidy under the Package Scheme of Incentive (PSI) 2007. Accordingly, in terms of the Accounting Standard (AS 12) "Accounting for Government Grants" as specified under section 133 of the Companies Act,2013, read with Rule 7 of the Companies (Accounts) Rules 2014, the Company is eligible for an incentive of Rs. 63.10 Lakhs (Previous Year : Rs. 56.65 Lakhs) and the same is accounted on accrual basis.
11. Pursuant to the Accounting Standard (AS-29)- Provisions, Contingent Liabilities and Contingent Assets, the disclosure relating to provisions made in the accounts for the year ended 31st March, 2017 is as follows:
12. Corporate Social Responsibility (CSR) Expenses
A) Gross Amount required to be spend by the company during the year 2016-17 Rs. 55.00 Lakhs (Previous Year Rs. 36.95 Lakhs)
Review and evaluation of the performance of the Chairman of the Company, taking into account the view of the Executive and Non-Executive Directors.
- Review and evaluation of the quality, content and timeliness of flow of information between the Management and the Board that is necessary for the Board to effectively and reasonably perform its duties.
All the members were present at the Meeting except Mr. Rajnikant B. Desai who was granted leave of absence. They expressed satisfaction
Mar 31, 2016
Note:
* The Company had issued 20 Lakhs Convertible Warrants on preferential basis as per SEBI guidelines and shareholders'' approval . The captioned shareholders have since exercised the conversion option and paid to the Company the requisite amount payable on conversion and the allotment Committee of the Board in its meeting held on 1st February,2016 has allotted 20 Lakhs Equity Shares of '' 10/- each to the allottees.
** Pursuant to the scheme of amalgamation of Clear Mipak Packaging Solutions Limited(CMPSL) with the Company under section 391 to 394 of the Companies Act 1956, sanctioned by the Hon''ble Bombay High Court on 20th November, 2015, the Company has on January 7th 2016, issued and allotted 309,44,164 9% Non Convertible Redeemable Cumulative Preference Shares of '' 10/- each fully paid up to the shareholders of CMPSL in the ratio of 173 (one hundred seventy three) Preference Shares for every 10 (ten) Equity Shares of face value of '' 10/- of CMPSL.
# As per the records of the Company, including its register of members.
F. Terms/rights attached to shares
(i) Equity Share
The Company has only one class of Equity shares referred to as Equity Shares having a par value of '' 10/- per share. Each holder of Equity Shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. Payment of dividend is also made in foreign currency to shareholders outside India. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
A dividend of '' 0.90 ( Paise Ninety only) per Equity Share of Rs, 10/- each has been recommended by the Board of Directors at its meeting held on 23rd May, 2016, subject to the approval by the shareholders at the ensuing Annual General Meeting. If approved, the dividend for the Financial Year 2015-16 will be Rs, 0.90 per Equity Share (Previous Year : Rs, 0.90 per Equity Share) of face value Rs, 10/- each. The total dividend appropriation for the year ended 31st March, 2016 amounted to Rs, 186.05 Lakhs including corporate dividend tax of Rs, 31.47 Lakhs (Previous Year : Rs, 164.38 Lakhs including corporate dividend tax of Rs, 27.80 Lakhs).
As per the Companies Act, 2013, the holders of Equity Shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts in the event of liquidation of the Company. The distribution will be in proportion to the number of Equity Shares held by the shareholders.
(ii) Preference Share issued under the Scheme of Arrangement approved by the Hon''ble Bombay High Court on terms as under:
1. Preference Shares issued at par of Rs, 10/- each.
2. The coupon rate (i.e. the rate of dividend) is 9%.
3. The Preference Shares are classified as â9% Non Convertible Redeemable Cumulative Preference Sharesâ.
4. Preference Shares carry preferential (cumulative) right to dividend, at the above said coupon rate, when declared.
5. The dividend will be calculated on pro rata i.e. from the date of allotment of such Preference Shares.
6. The Preference Shares do not carry any voting rights except in case of any Resolution placed before the Company which directly affects the rights attached to such shares or otherwise provided in the Companies Act.
7. The Preference Shares have the maximum redemption period of 20 years. However, the same may be redeemed fully or in such tranche, before the aforesaid period, by the express mutual consent of the holders of such Preference Shares and Company as may be allowed under the Act.
8. Only fully paid up Preference Shares can be redeemed.
9. The Preference Shares will be redeemed at par of Rs, 10/- each
10. The Preference Shares will be redeemed out of profits of the Company which would otherwise be available for dividend or out of the proceeds of a fresh issue of shares made for the purposes of the redemption.
11. In the previous financial year the Company received an amount of Rs, 285 Lakhs towards issue and allotment of 20 Lakhs Convertible Warrants on a preferential basis to the Promoter Group as approved by the shareholders at the Extra-Ordinary General Meeting held on 7th July, 2014 and after obtaining requisite regulatory approval.
The captioned shareholders have since exercised the conversion option and paid to the Company the requisite amount payable on conversion and the allotment Committee of the Board in its meeting held on 1st February, 2016 has allotted 20 Lakhs Equity Shares of Rs, 10/- each to the allottees.
12 Deferred Tax Liabilities (Net)
The Company has recognized deferred tax arising on account of timing differences, being the difference between the taxable income and accounting income, that originates in one period and is capable of reversal in one or more subsequent period(s) in compliance with Accounting Standard (AS 22) - Accounting for Taxes on income.
A Default in terms of repayment of principal and interest - NIL
Working capital facilities from Banks are secured on first charge basis by way of hypothecation of inventories and book debts of specific units and collaterally secured by hypothecation of plant and machinery and equitable mortgage on land and building of specific units.
The above borrowings carries interest @ 9.25 % to 13.50%p.a.(Previous Year @ 10.00% to 13.50% p.a.).
13 Information on related party transactions as required by Accounting Standard (AS-18) for the year ended 31st March, 2016. 1. Relationship:
(i) Holding Company
Geetanjali Trading and Investments Private Limited
(ii) Fellow Subsidiaries
Hitech Specialities Solutions Ltd Hitech Insurance Broking Services Ltd Vijal Holding and Trading Co. Pvt. Ltd.
Smiti Holding and Trading Pvt. Ltd.
Isis Holding and Trading Company Pvt. Ltd Rayirth Holding and Trading Company Pvt. Ltd.
Hitech Skills Development Pvt. Ltd.
(iii) Key Management Person:
Malav A. Dani (Managing Director)
Mr. Mehernosh A. Mehta (Whole Time Director Appointed on 17/3/2016)
Mr. Bharat Gosalia (Chief Financial officer)
Mrs. Namita R. Tiwari (Company Secretary)
(iv) Companies controlled by Directors/Relatives of Directors :
Dani Finlease Ltd.
Gujarat Organics Ltd.
Haish Holding and Trading Company Pvt. Ltd.
S C Dani Research Foundation Pvt. Ltd.
Pragati Chemicals Ltd.
Resins and Plastics Ltd.
Asian Paints Ltd.
(v) Promoter Directors
Mr. Ashwin S. Dani Mr. Jalaj A. Dani
Mrs. Ina A. Dani (Resigned on 30/6/2015)
(vi) Relatives of promoters
Mrs. Ina A. Dani Mrs. Vita J. Dani
(vii) Employee Benefit funds where control exists:
Hitech Plast Employees'' Gratuity Trust
Mipak Industries Employees'' Group Gratuity Assurance Scheme Plast-Kul Industries Employees'' Group Gratuity Assurance Scheme Clear Plastics Employees'' Gratuity Trust
Mipak Polymers Ltd Employees'' Group Gratuity Assurance Scheme
14 Segment Reporting
As the Company business activity falls within a single primary business segment viz., âPlastic Containersâ, the disclosure requirements of Accounting Standard (âAS-17â) âSegment Reportingâ, as prescribed in the Companies (Accounting Standards) Rules, 2006, is not applicable. As on 31st March, 2016, the capital employed in the reportable segment was Rs, 20,337.97 Lakhs (31st March, 2015: Rs, 21,500.86 Lakhs).
15 The Company is eligible for Industrial Promotion Subsidy under the Package Scheme of Incentive (PSI) 2007. Accordingly, in terms of the Accounting Standard (âAS 12â) âAccounting for Government Grantsâ as specified under section 133 of the Companies Act,2013, read with Rule
16 of the Companies (Accounts) Rules 2014, the Company is eligible for an incentive of Rs, 56.65 Lakhs (Previous Year - Rs, 61.51 Lakhs) and the same is accounted on accrual basis.
17 Dividend on 9% Non Convertible Redeemable Cumulative Preference shares have been provided on prorate basis from 7th January,2016 being date of allotment.
18 Corporate Social Responsibility (CSR) Expenses
The Company has identified the area and initiated CSR activities during the year. The Company was required to spend Rs, 20.23 Lakhs in FY 2014-15 & Rs, 16.72 Lakhs in FY 2015-16 of which a sum of Rs, 5.70 Lakhs have been spent during the year.
19. The previous year''s figures have been re-grouped / re-classified wherever necessary to correspond with the current year''s classification/ disclosure.
Mar 31, 2015
Note:
a. On 8th August, 2014 the Company issued and allotted 20,00,000
equity shares of Rs, 10/- each and 20,00,000 Convertible warrants to
Promoter Group on a preferential basis as approved by shareholders at
the Extra-Ordinary General Meeting held on 7th July, 2014 and after
obtaining requisite regulatory approval.
b. Pursuant to the scheme of amalgamation of CMPSL with the Company
under section 391 to 394 of the Companies Act 1956, sanctioned by the
Hon'ble Bombay High Court on 20th November, 2015, the Company will
issue and allot 3,09,44,164 9% Non-Convertible Redeemable Cumulative
Preference shares of Rs, 10/- each fully paid up to the shareholders of
CMPSL in the ratio of 173 (one hundred seventy three) Preference shares
for every 10 (ten) equity shares of the face value of Rs, 10/- of
CMPSL.
# As per the records of the Company, including its register of members.
a. Terms/rights attached to shares (i) Equity Shares
The Company has only one class of Equity shares referred to as equity
shares having a par value of Rs, 10/- per share. Each holder of equity
shares is entitled to one vote per share. The Company declares and pays
dividends in Indian Rupees. Payment of dividend is also made in foreign
currency to shareholders outside India. The dividend proposed by the
Board of Directors is subject to the approval of the shareholders in
the ensuing Annual General Meeting.
A dividend of Rs, 0.90 (paise Ninety only) per equity share of Rs, 10/-
each has been recommended by the Board of Directors at its meeting held
on 29th May, 2015, subject to the approval by the shareholders at the
ensuing Annual General Meeting. If approved, the dividend for the
Financial Year 2014-15 will be Rs, 0.90 per equity share (Previous
year:Rs, 0.90 per equity share) of face value Rs, 10 each. The total
dividend appropriation for the year ended 31st March, 2015 amounted to
Rs, 164.38 Lacs including corporate dividend tax of Rs, 27.80 Lacs
(Previous year Rs, 138.72 Lacs including corporate dividend tax of Rs,
20.15 Lacs).
As per the Companies Act, 2013, the holders of equity shares will be
entitled to receive remaining assets of the Company, after distribution
of all preferential amounts in the event of liquidation of the Company.
The distribution will be in proportion to the number of equity shares
held by the shareholders.
(ii) Preference Shares to be issued under the Scheme of Amalgamation
approved by the Hon'ble Bombay High Court on terms as under:
1. Preference Shares issued at par of Rs,10/- each.
2. The coupon rate (i.e. the rate of dividend) is 9%.
3. The Preference Shares are classified as " 9% Non-Convertible
Redeemable Cumulative Preference Shares".
4. Preference Shares carry preferential (cumulative) right to
dividend, at the above said coupon rate, when declared.
5. The dividend will be calculated on pro rata i.e. from the date of
allotment of such Preference Shares.
6. The Preference Shares do not carry any voting rights except in case
of any Resolution placed before the Company which directly affects the
rights attached to such shares or otherwise provided in the Companies
Act.
7. The Preference Shares have the maximum redemption period of 20
years. However, the same may be redeemed fully or in such tranches,
before the aforesaid period, by the express mutual consent of the
holders of such Preference Shares and Company as may be allowed under
the Act.
8. Only fully paid up Preference Shares can be redeemed.
9. The Preference Shares will be redeemed at par of Rs,10/- each.
10. The Preference Shares will be redeemed out of Profits of the
Company which would otherwise be available for dividend or out of the
proceeds of a fresh issue of shares made for the purposes of the
redemption.
4A Money received against Convertible Warrant :
The Company received an amount of Rs, 285 Lacs (Previous Year Rs, Nil)
being 25% of the amount towards issue and allotment of 20,00,000
(Twenty Lacs) Convertible Warrants on a preferential basis to the
Promoter Group as approved by the shareholders at the Extra-Ordinary
General Meeting held on 7th July, 2014 and after obtaining requisite
regulatory approval.
In accordance with Chapter VII of SEBI ICDR Regulations, 2009, the
holder of each warrant will be entitled to apply for and obtain
allotment of one equity share of the face value of Rs, 10/- each of the
Company against each warrant at any time after the date of allotment
but on or before the expiry of eighteen months from the date of
allotment, in one or more tranches. At the time of exercise of
entitlement, the warrant holder(s) shall pay the balance 75% of the
consideration payable in respect of warrants being so exercised to the
Company simultaneously with the allotment of equity shares by the
Company pursuant to such exercise. If the entitlement against the
warrants to apply for the equity shares is not exercised within the
aforesaid period, the entitlement of the warrant holders to apply for
the equity shares of the Company along with rights attached thereto
shall expire and any amount paid on such warrant shall stand forfeited.
@ Default in terms of repayment of principal and interest  NIL.
# In compliance of the provision of Section 74 of the Companies Act
2013, the deposits accepted by the Company and outstanding have been
repaid on March 31, 2015. The deposits carried interest @ 9.50% to 11%
p.a. Consequently, the outstanding deposits stand reduced to Rs, Nil as
at March 31, 2015 (Rs, 1,506.35 Lacs as at March 31, 2014).
Dues to Micro and Small Enterprises have been determined to the extent
such parties have been identified on the basis of information collected
by the Management. This has been relied upon by the auditors.
1. The Company enters into forward exchange contracts to hedge against
its foreign currency exposures relating to the underlying transactions
and frm commitments. The Company does not enter into any derivative
instruments for trading or speculative purposes. During the year,
Company has not entered into any forward exchange contract.
2. Legal and Professional expenses include Rs, 8.61 Lacs towards merger
of Clear Mipak Packaging Solutions Limited into the Company.
3. Pursuant to Accounting Standard (AS Â 19)- Lease, the following
information is given Assets taken on operating lease
a. The Company has taken certain assets such as cars and premises on
an operating lease basis, the lease rentals are payable by the Company
on a monthly basis.
4. Research and Development
During the year the Company has received extension of recognition for
its In-house R & D unit situated at 28/9, D-2 Block, MIDC, Chinchwad,
Pune (Unit- Technology Centre) for further 3 years up to 31st March,
2017, vide letter dated 1st May, 2014 issued by Government of India,
Ministry of Science and Technology, Department of Scientifc and
Industrial Research, Technology Bhavan, New Mehrauli Road, New Delhi-
110 016. The Company has incurred following expenditure on Research and
Development :
c. Lease payments recognized in the Statement of Profit and Loss for
the year are Rs, 221.99 Lacs (31st March, 2014: Rs, 180.57 Lacs).
5. Employee benefits
(1) Short term employee benefits:
The liability towards short term employee benefits for the year ended
31st March, 2015 has been recognized in the Statement of Profit and
Loss.
(2) Post employment benefits:
The following disclosure is made in accordance with AS 15 (Revised)
pertaining to Defined Benefit Plans :
Notes:
a) The estimates of future salary increases, considered in actuarial
valuation, takes into account the inflation, seniority, promotion and
other relevant factors such as supply and demand in the employment
market.
b) The Company estimates that the amount to be contributed to the
Gratuity fund up to the financial Year 2014-15 will be Rs, 133.00 Lacs.
c) The Company regularly deposits employee and employers contribution
of provident funds to Government managed fund i.e (EPFO) and hence the
guidance on implementing AS Â 15 (Revised) issued by Accounting
Standards Board (ASB) of the Institute of Chartered Accountants of
India, relating to employer established provident funds, is not
applicable.
(3) Long Term Employee Benefits:
The liability towards compensated absences (annual leave and sick
leave) as at 31st March, 2015, based on actuarial valuation carried out
by using the Projected Unit Credit Method amounting to Rs, 36.65 Lacs
(31st March, 2014: Rs, 4.79 Lacs) has been recognized in the Statement
of Profit and Loss.
6. Information on related party transactions as required by Accounting
Standard (AS)Â 18 for the year ended 31st March, 2015. 1.
Relationship:
(i) Holding Company
Geetanjali Trading and Investments Private Limited
(ii) Fellow Subsidiaries
Hi-tech Specialties (India) Limited
Hi-tech Insurance Broking Services Ltd.
Vijal Holding and Trading Co. Pvt. Ltd.
Smiti Holding and Trading Pvt. Ltd.
Isis Holding and Trading Company Pvt. Ltd
Rayirth Holding and Trading Company Pvt. Ltd.
Hi-tech Skills Development Pvt. Ltd.
(iii) Key Management Person:
Malav A. Dani (Managing Director)
Mr. Bharat I. Gosalia (Chief Financial officer) ( joined on 3/7/2014)
Mr. Satish S. Samant (Chief Financial officer) (resigned on 2/7/2014)
Mrs. Namita R. Tiwari (Company Secretary) (iv) Companies controlled by
Directors/Relatives of Directors :
Dani Finlease Ltd.
Gujarat Organics Ltd.
Haish Holding and Trading Company Pvt. Ltd.
S C Dani Research Foundation Pvt. Ltd.
Pragati Chemicals Ltd.
Resins and Plastics Ltd.
Suryakant Paint Accessories Pvt. Ltd.
Asian Paints Ltd. (v) Promoter Directors
Mr. Ashwin S. Dani
Mr. Jalaj A. Dani
Mrs. Ina A. Dani
(vi) Relatives of promoters Mrs. Vita J. Dani
(vii) Employee Benefit funds where control exists: Hi-tech Plast
Employees' Gratuity Trust
Mipak Industries Employees' Group Gratuity Assurance Scheme Plast-Kul
Industries Employees' Group Gratuity Assurance Scheme Clear Plastics
Employees' Gratuity Trust Mipak Polymers Ltd. Employees' Group Gratuity
Assurance Scheme
7. Segment Reporting.
As the Company business activity falls within a single primary business
segment viz. "Plastic Containers", the disclosure requirements of
Accounting Standard (AS-17) "Segment Reporting", as prescribed in the
Companies (Accounting Standards) Rules, 2006, is not applicable. As on
31st March, 2015 the capital employed in the reportable segment was Rs,
21,500.86 Lacs (31st March, 2014: Rs, 15,548.69 Lacs).
8. During the year the Company is eligible for Industrial Promotion
Subsidy under the Package Scheme of Incentive (PSI) 2007. Accordingly,
in terms of the Accounting Standard (AS 12) "Accounting for Government
Grants" as specified under section 133 of the Companies Act, 2013, read
with Rule 7 of the Companies (Accounts) Rules 2014, the Company is
eligible for an incentive of Rs, 61.51 Lacs (Previous Year - Rs, Nil)
and the same is accounted on accrual basis.
3 Key management person who is under the employment of the Company is
entitled to post employment benefits and other long term employee
benefits recognized as per AS Â 15 (Revised) Employee benefits in the
financial statements. As these employee benefits are lump sum amount
provided on the basis of actuarial valuation, the same is not included
above.
(a) Amount paid to Managing Director Mr. Malav A. Dani
(b) Amount paid to Chief Financial Officer- Mr. Bharat I. Gosalia & Mr
.Satish S. Samant
(c) Amount paid to Company Secretary - Mrs. Namita R. Tiwari
9. As a part of the strategy to consolidate the operations in line
with our core business, the Company has discontinued its tea packaging
business at Aurangabad in January, 2015.
10. As a part of consolidation initiatives, the Dadra plant of the
Company, has been shifted and merged with the plant situated at Naroli
(D&NH). This will help in improving operational efficiency.
11. Amalgamation of Subsidiary Company Clear Mipak Packaging Solutions
Ltd.
(a) Pursuant to the scheme of amalgamation ('the Scheme') of Clear
Mipak Packaging Solutions Ltd. (CMPSL) with the Company under Sections
391 to 394 of the Companies Act, 1956 sanctioned by Hon'ble Bombay High
Court on November 20, 2015 entire business and all assets and
liabilities of Clear Mipak Packaging Solutions Ltd. were transferred
and vested in the Company effective from April 1, 2014. Accordingly
the Scheme has been given effect to in these financial statements.
Clear Mipak Packaging Solutions Ltd. was also engaged in the business
of manufacturing and supplying plastic containers for different
industries, a business akin and germane to the business of the Company.
(b) The amalgamation has been accounted for under the "Pooling of
Interest" method as prescribed by the Accounting Standard 14
"Accounting for Amalgamations" notifed under the Companies Act, 2013.
Accordingly the accounting treatment has been given as under:
(i) The assets and liabilities as at April 1, 2014 were incorporated in
the financial statement of the Company at its book value.
(ii) The Reserves and Surplus including balance in the Profit & Loss
account of the transferor Company have been recorded in the same form
and at the same value in the financial statement and adjusted as
prescribed in the Scheme approved by the Court as per (v) below.
(iii) The Company will issue and allot 3,09,44,164 9% Non-Convertible,
Redeemable, Cumulative Preference shares of face value of Rs, 10/- each
to the shareholders of CMPSL on the record date.
(iv) 26,83,020 Equity shares of Rs,10/- each fully paid in CMPSL held
as investment by the Company stands cancelled.
(v) In accordance with Clause 13 of the Scheme of Amalgamation and
special resolution under section 52 of the Companies Act, 2013 read
with Section 100 to 104 of the Companies Act, 1956, the difference
between the amount recorded as share capital issued by the Company and
the amount of share capital of the transferor Company CMPSL has been
adjusted first against Capital Reserve Account, then to Securities
Premium Account and remaining balance against General Reserve of the
Company.
Accordingly Capital Reserve Account of Rs, 237.33 Lacs, Securities
Premium Account of Rs, 4,532.09 Lacs and General Reserve Account Rs,
249.91 Lacs of the transferor Company CMPSL and Securities Premium
Account of the Company of Rs, 737.21 Lacs and General Reserve of
Company Rs, 299.62 Lacs both as on appointed date have been
utilized/adjusted towards the difference between the amount recorded as
Preference capital to be issued by the Company and the amount of share
capital of the transferor Company CMPSL together with cancellation of
Investment in the CMPSL held by the Company of Rs, 3,408.89 Lacs upon
giving effect of amalgamation of CMPSL.
12. The Utilization of Securities Premium Account as stated in Note 46
above would not involve either a diminution of liability in respect of
unpaid share capital or payment of paid up share capital and the
provisions of Section 101 of the Act will not be applicable.
13. In view of amalgamation the figures for the year ended March 31,
2015 are not comparable to the previous year.
14. The previous year's figures have been re-grouped / re-classified
wherever necessary to correspond with the current year's
classification/ disclosure.
Mar 31, 2014
1. Company Information:
Hitech Plast Limited (the Company) is a Public Limited Company
domiciled in India and incorporated under the provisions of the
Companies Act, 1956. Its shares are listed on two stock exchanges in
India, namely the Bombay Stock Exchange Limited, and the NSE Limited.
The Company is engaged in the manufacturing of rigid plastic containers
specially catering to customers relating to Paints, Lube and other
industrial chemicals. The Company caters to only local domestic market.
(Rs. in Lacs)
2. CONTINGENT LIABILITIES AND COMMITMENTS
As at As at
a) Contingent Liabilities: 31.03.2014 31.03.2013
1) Claims against the Company
not acknowledged as debts
- Tax and other matters in
dispute under appeal 717.73 358.92
2) Corporate guarantee issued
by the Company to certain
bank on behalf of its subsidiary - 4,803.00
3) Bills of exchange discounted
with banks (since realized
Rs. 3,794.63 Lacs, (31st
March 2013: Rs. 2,743.43 Lacs)) 5,138.85 5,382.68
The claims against the Company comprise:
The tax demands are mainly on account of disallowance of a portion of
the tax holiday claimed by the Company under the Income tax Act. The
matters are pending before the Commissioner of Income tax (Appeals).
The Company is contesting the demands and the management, including its
tax advisors, believe that its position would likely be upheld in the
appellate process. No tax expense has been accrued in the financial
statements for the tax demand raised. The management believes that the
ultimate outcome of this proceeding will not have a material adverse
effect on the Company''s financial position and results of operations.
2) The Company enters into forward exchange contracts to hedge against
its foreign currency exposures relating to the underlying transactions
and firm commitments. The Company does not enter into any derivative
instruments for trading or speculative purposes.
3. RESEARCH AND DEVELOPMENT
The Company has received recognition of its In-house R & D unit
situated at 28/9, D-2 Block, MIDC, Chinchwad, Pune(Unit- Technology
Centre) upto 31st March,2014, vide letter dated 25th October, 2011
issued by Government of India, Ministry of Science and Technology,
Department of Scientifc and Industrial Research, Technology Bhavan, New
Mehrauli Road, New Delhi- 110 016. The Company has incurred following
expenditure on Research and Development :-
4. The Company enters into forward exchange contracts to hedge against
its foreign currency exposures relating to the underlying transactions
and firm commitments. The Company does not enter into any derivative
instruments for trading or speculative purposes.
5. Disclosure as per clause 32 of the Listing Agreement entered into
with the Stock Exchange.
Loans and advances in the nature of loans given to subsidiary - Clear
Mipak Packaging Solutions Limited Balance as at 31st March, 2014 Rs. Nil
(31st March, 2013: Rs. Nil)
Maximum amount outstanding during the year Rs. 18.81 Lacs (31st March,
2013: Rs. 19.83 Lacs) Repayment schedule  on demand.
6. Pursuant to Accounting Standard (AS Â 19)- Lease, the following
information is given: Assets taken on operating lease
(a) The Company has taken certain assets such as cars on an operating
lease basis. The lease rentals are payable by the Company on a monthly
basis.
(b) Future minimum lease rentals payable as at 31st March, 2014 as per
the lease agreements:
(c) Lease payments recognised in the Statement of profit and Loss for
the year are Rs. 28.91 Lacs (31st March, 2013: Rs. 26.29 Lacs).
7. Employee benefits :-
(1) Short term employee benefits:
The liability towards short term employee benefits for the year ended
31st March, 2014 has been recognised in the Statement of profit and
Loss.
(2) Post employment benefits:
The following disclosures are made in accordance with AS 15 (Revised)
pertaining to Defined benefit Plans :
i. Discount Rate : The discount rate is based on the prevailing market
yields of Indian Government securities as at the balance sheet date for
the estimated term of the obligation.
ii. Expected Rate of Return on Plan Assets : This is based on the
expectation of the average long-term rate of return expected on
investments of the fund during the estimated term of the obligations.
iii. Salary Escalation Rate : The estimates of future salary
increases, considered in acturial valuation, takes into account the
infation, seniority, promotion and other relevant factors such as
supply and demand in the employment market.
Notes:-
a) The gratuity fund assets and liabilities are managed by Hitech Plast
Employees'' Gratuity Trust.
b) The Company estimates that the amount to be contributed to the
Gratuity fund for the financial year 2013-14 will be Rs. 13.40 lacs.
c) The Company regularly deposits employee and employers contribution
of provident funds to Government managed fund i.e (EPFO) and hence the
guidance on implementing AS 15 (revised 2005) issued by Accounting
Standards Board (ASB) of the Institute of Chartered Accountants of
India, relating to employer established provident funds, is not
applicable.
(3) Long Term Employee benefits:
The liability towards compensated absences (annual leave and sick
leave) for the year ended 31st March, 2014 based on actuarial valuation
carried out by using the Projected Accrued benefit Method amounting to Rs.
(4.79) Lacs (31st March, 2013: Rs. 45.59 Lacs ) has been recognised in
the Statement of profit and Loss.
8. Information on related party transactions as required by
Accounting Standard  18 on Related Party Disclosures for the year
ended 31st March 2014.
1. Relationship:
(i) Holding Company
Geetanjali Trading and Investments Private Limited
(ii) Fellow Subsidiaries
Coatings Specialities (India) Limited Rangudyan Insurance Broking
Services Ltd Vijal Holding and Trading Company Pvt. Ltd. Smiti Holding
and Trading Company Pvt. Ltd. Isis Holding and Trading Company Pvt.
Ltd Isis Skills Development Pvt. Ltd.
(iii) Subsidiary of the Company
Clear Mipak Packaging Solutions Limited
(iv) Key Management Person: Malav A. Dani
(v) Promoter Directors
Mr. Ashwin S. Dani
Mr. Jalaj A. Dani
Mrs. Ina A. Dani
(vi) Employee benefit funds where control exists:
Hitech Plast Employee''s Gratuity Trust
(vii) Companies controlled by Directors/Relatives of Directors :
Dani Finlease Ltd.
Gujarat Organics Ltd.
Haish Holding And Trading Company Pvt. Ltd.
S C Dani Research Foundation P. Ltd.
Pragati Chemicals Ltd.
Resins and Plastics Ltd.
Raytirth Holding and Trading Company Pvt. Ltd. Suryakant Paint
Accessories Pvt. Ltd. Asian Paints Ltd.
9. Segment Reporting.
As the Company''s business activity falls within a single primary
business segment viz., "Plastic Containers", the disclosure
requirements of Accounting Standard (AS-17) "Segment Reporting", as
prescribed in the Companies (Accounting Standards) Rules, 2006, is not
applicable. As on 31st March 2014, the capital employed in the
reportable segment was Rs. 15,548.69 Lacs (31st March 2013: Rs. 15,015.98
Lacs).
10. During the year, the manufacturing unit of the Company situated at
Masat in Silvassa was shifted and merged with Company''s existing unit
at Galonda in Silvassa and the manufacturing unit of the Company
situated at Pondicherry was shifted and merged with Company''s existing
unit at Sriperumbudur as part of restructuring plan.
11. The previous year''s figures have been re-grouped / re-classified
wherever necessary to correspond with the current year''s
classification/disclosure .
Mar 31, 2013
1. Company Information:
Hitech Plast Limited (the Company) is a Public Limited Company
domiciled in India and incorporated under the provisions of the
Companies Act, 1956. Its shares are listed on two stock exchanges in
India, namely the Bombay Stock Exchange Limited, and the NSE Limited.
The Company is engaged in the manufacturing of rigid plastic containers
specially catering to customers relating to paints, lube and other
industrial chemicals. The Company caters to only local domestic market.
(Rs. in Lacs)
2. CONTINGENT LIABILITIES AND
COMMITMENTS As at As at
a) Contingent Liabilities: 31.03.2013 31.03.2012
1) Claims against the Company not
acknowledged as debts
- Tax matters in dispute under appeal 358.92 183.82
2) Corporate guarantee issued by the
Company to certain bank on behalf
of its subsidiary 4,803.00 4,803.00
3) Bills of exchange discounted
with banks (since realized Rs.
2,743.43 lacs, (31st March, 2012:
Rs. 3,138.31 lacs)) 5,382.68 3,514.86
The claims against the Company comprise:
The tax demands are mainly on account of disallowance of a portion of
the tax holiday claimed by the Company under the Income tax Act. The
matters are pending before the Commissioner of Income tax (Appeals).
The Company is contesting the demands and the management, including its
tax advisors, believe that its position would likely be upheld in the
appellate process. No tax expense has been accrued in the Financial
Statements for the tax demand raised. The management believes that the
ultimate outcome of this proceeding will not have a material adverse
effect on the Company''s fnancial position and results of operations.
3. RESEARCH AND DEVELOPMENT
The Company has received recognition for its In-house R&D unit situated
at 28/9, D-2 Block, MIDC, Chinchwad, Pune (Unit- Technology Centre)
upto 31st March, 2014, vide letter dated 25th October, 2011 issued by
Government of India, Ministry of Science and Technology, Department of
Scientifc and Industrial Research, Technology Bhavan, New Mehrauli
Road, New Delhi-110 016. The Company has incurred following expenditure
on Research and Development.
4. The Company uses forward exchange contracts to hedge against its
foreign currency exposures relating to the underlying transactions and
frm commitments. The Company does not enter into any derivative
instruments for trading or speculative purposes.
5. Disclosure as per clause 32 of the Listing Agreement entered into
with the Stock Exchange:-
Loans and advances in the nature of loans given to subsidiary - Clear
Mipak Packaging Solutions Limited Balance as at 31st March, 2013 Rs. Nil
(31st March, 2012: Rs. Nil)
Maximum amount outstanding during the year Rs. 19.83 lacs (31st March,
2012: Rs. 1,285.84 lacs) Repayment Schedule - on call loan
6. Pursuant to Accounting Standard (AS - 19)- Lease, the following
information is given:
a. The Company has taken certain assets such as cars on an operating
lease basis. The lease rentals are payable by the Company on a monthly
basis.
b. Future minimum lease rentals payable as at 31st March, 2013 as per
the lease agreements:
7. Employee benefts :-
(1) Short term employee benefts:
The liability towards short term employee benefts for the year ended
31st March, 2013 has been recognised in the Statement of Proft and
Loss.
(2) Post employment benefts:
The following disclosures are made in accordance with AS 15 (Revised)
pertaining to Defned Beneft Plans :
8. Related Party Disclosures
Information on related party transactions as required by Accounting
Standard  18 on Related Party Disclosures for the year ended 31st
March, 2013.
1. Relationship:
(i) Holding Company
Geetanjali Trading and Investments Private Limited
(ii) Fellow Subsidiaries
Coatings Specialities (India) Limited Rangudyan Insurance Broking
Services Ltd
(iii) Subsidiary of the Company
Clear Mipak Packaging Solutions Limited
(iv) Key Management Person:
Mr. Malav A. Dani (Promoter Director) (Redesignated as Managing
Director from Joint Managing Director w.e.f. 3/11/2012) Mr.Ashok K.
Goyal (Managing Director) (Up to 15/08/2012)
(v) Promoter Directors Mr. Ashwin S. Dani Mr. Jalaj A. Dani Mrs. Ina A.
Dani Mr. Hasit Dani( Upto 16/4/2012)
(vi) Employee Beneft fund where control exists : Hitech Plast
Employee''s Gratuity Trust
(vii) Companies controlled by Directors/ Relatives of Directors :
Dani Finlease Ltd.
Gujarat Organics Ltd.
Haish Holding and Trading Company Pvt. Ltd.
S C Dani Research Foundation P. Ltd.
Vijal Holding and Trading Co. Pvt. Ltd.
Smiti Holding and Trading Pvt. Ltd
Pragati Chemicals Ltd.
Resins and Plastics Ltd.
Raytirth Holding & Trading Company Pvt. Ltd. Isis Holding & Trading
Company Pvt. Ltd
Suryakant Paint Accessories Pvt. Ltd
Asian Paints Ltd.
Isis Skills Development Pvt. Ltd.
9. Segment information
As the Company''s business activity falls within a single primary
business segment viz., "Plastic Containers", the disclosure
requirements of Accounting Standard (AS-17) "Segment Reporting", as
prescribed in the Companies (Accounting Standards) Rules, 2006, is not
applicable. As on 31st March, 2013, the capital employed in the
reportable segment was Rs. 15,015.98 lacs (31st March, 2012: Rs. 14,708.34
lacs).
10. The previous year''s fgures have been re-grouped / re-classifed
wherever necessary to correspond with the current year''s
classifciation/disclosure .
Mar 31, 2012
1. Company Information:
Hitech Plast Limited (the Company) is a public limited company
domiciled in India and incorporated under the provisions of the
Companies Act, 1956. Its shares are listed on two stock exchanges in
India, namely the BSE Limited (BSE) and the National Stock Exchange of
India Limited (NSE). The Company is engaged in the manufacturing of
rigid plastic containers specially catering to customers relating to
Paints, Lube and other industrial chemicals. The Company caters to
only local domestic market.
a. Terms/rights attached to equity shares :
The Company has only one class of shares referred to as equity shares
having a par value of Rs 10/- per share. Each holder of equity shares is
entitled to one vote per share. The Company declares and pays dividends
in Indian Rupees. Payment of dividend is also made in foreign currency
to shareholders outside India. The dividend proposed by the Board of
Directors is subject to the approval of the shareholders in the ensuing
Annual General Meeting.
A dividend of Rs 1.60 (Rupees one and paise sixty only) per share has
been recommended by the Board of Directors at its meeting held on 18th
June 2012, subject to the approval by the shareholders at the ensuing
Annual General Meeting. If approved, the dividend for the financial
year 2011-12 will be Rs 1.60 per equity share; Rs 1.60 per equity share
was paid as dividend for the previous year. The total dividend
appropriation for the year ended 31st March, 2012 amounted to Rs 245.01
lakhs including corporate dividend tax of Rs 34.20 lakhs. (Previous year
Rs 245.01 lakhs including corporate dividend tax of Rs 34.20 lakhs).
As per the Companies Act, 1956, the holders of equity shares will be
entitled to receive remaining assets of the Company, after distribution
of all preferential amounts in the event of liquidation of the Company.
However no such preferential amounts exist currently. The distribution
will be in proportion to the number of equity shares held by the
shareholders.
2. DEFERRED TAX LIABILITIES (NET)
The Company has recognized deferred tax arising on account of timing
differences, being the difference between the taxable income and
accounting income, that originates in one period and is capable of
reversal in one or more subsequent period(s) in compliance with
Accounting Standard (AS 22) - Accounting for Taxes on income.
A Default in terms of repayment of principal and interest - NIL.
Short Term Loan borrowings from banks and Cash Credit Accounts are
secured by hypothecation of inventories, book debts and other current
assets. Cash Credit is repayable on demand and carries interest @14% to
15% p.a.
Capitalized borrowing costs
The borrowing cost capitalized during the year ended 31st March 2012
was Rs 18.22 lakhs (31st March 2011 : Rs Nil). The Company capitalized
this borrowing cost in the capital work-in-progress (CWIP). The amount
of borrowing cost as other adjustments in the above note reflects the
amount of borrowing cost transferred to CWIP.
Land includes land held on leasehold basis:
Gross block Rs 14.50 lakhs (31st March 2011: Rs 14.50 lakhs) Depreciation
charge for the year Rs 0.15 lakhs (31st March 2011:Rs 0.15 lakhs)
Accumulated depreciation Rs 1.04 lakhs (31st March 2011: Rs 0.89 lakhs)
Net book value Rs 13.47 lakhs (31st March 2011: Rs 13.62 lakhs).
Notes:-
a) The estimates of future salary increases, considered in actuarial
valuation, takes into account the inflation, seniority, promotion and
other relevant factors such as supply and demand in the employment
market.
b) The Company estimates that the amount to be contributed to the
Gratuity fund for the financial year 2011-2012 will be Rs Nil.
c) The Company regularly deposits employee and employers contribution
of provident funds to Government managed fund i.e (EPFO) and hence the
guidance on implementing AS - 15 (Revised) issued by Accounting
Standards Board (ASB) of the Institute of Chartered Accountants of
India, relating to employer established provident funds, is not
applicable.
(3) Long Term Employee Benefits:
The liability towards compensated absences (annual leave and sick
leave) as at 31st March 2012, based on actuarial valuation carried out
using the Projected Accrued Benefit Method amounting to Rs 21.85 lakhs
(31st March 2011: Rs 17.85 lakhs) has been recognized in the statement
of Profit and Loss.
3. Pursuant to Accounting Standard (AS - 19) - Lease, the following
information is given:
a. The Company has taken certain assets such as cars on an operating
lease basis, the lease rentals are payable by the Company on a monthly
basis.
b. Future minimum lease rentals payable as at 31st March 2012 as per
the lease agreements:
4. Segment information:
As the Company's business activity falls within a single primary
business segment viz., "Plastic Containers", the disclosure
requirements of Accounting Standard (AS-17) "Segment Reporting", as
prescribed in the Companies (Accounting Standards) Rules, 2006, is not
applicable. As on 31st March 2012, the capital employed in the
reportable segment was Rs 14,708.34 lakhs (31st March 2011: Rs 13,112.22
lakhs).
5. Related Party disclosures:
Information on related party transactions as required by Accounting
Standard - 18 on Related Party Disclosures for the year ended 31st
March 2012.
1. Key manager person who is under the employment of the Company is
entitled to post employment benefits and other long term employee
benefits recognized as per AS - 15 (Revised) Employee benefits in the
financial statements. As this employee benefits are lumpsum amount
provided on the basis of actuarial valuation, the same is not included
above.
2. As at 31 st March 2012, corporate guarantee issued by the Company
on behalf of its subsidiary amounting to Rs 4,803 lakhs (31st March
2011: Rs 4,803.00 lakhs).
6. Contingent Liabilities art Commitments
(Rs in lakhs)
As st As st
a) Contingent Liabilities: 31.03.2012 31.03.2011
1) Claims against the Company
not acknowledged as debts:
- Tax matters in dispute
under appeal 117.80 66.02
2) Corporate guarantee issued by
the Company to certain bank on
behalf of its subsidiary 4,803.00 4,803.00
3) Bills of exchange discounted
with banks 3,514.86 3,694.21
(since realized Rs 3,138.31
lakhs, (31st March 2011: Rs
2,260.77 lakhs))
The claims against the Company comprise:
Income tax demand comprises of demand from the tax authorities for
payment of additional tax of Rs 117.80 lakhs (31 March 2011: Rs 66.02
lakhs), upon completion of their tax review for the financial years
2007-08 and 2008-09. The tax demands are mainly on account of
disallowance of a portion of the tax holiday claimed by the Company
under the Income tax Act. The matters are pending before the
Commissioner of Income tax (Appeals).
The Company is contesting the demands and the management, including its
tax advisors, believe that its position would likely be upheld in the
appellate process. No tax expense has been accrued in the financial
statements for the tax demand raised. The management believes that the
ultimate outcome of this proceeding will not have a material adverse
effect on the Company's financial position and results of operations.
3) For commitments relating to lease arrangements, please refer to Note
28.
4) The Company uses forward exchange contracts to hedge against its
foreign currency exposures relating to the underlying transactions and
firm commitments. The Company does not enter into any derivative
instruments for trading or speculative purposes. The following is the
position on foreign currency exposure:
7. Disclosure as per Clause 32 of the Listing Agreement entered into
with the Stock Exchanges
Loans and advances in the nature of loans given to subsidiary - Clear
Mipak Packaging Solutions Limited Balance as at 31st March 2012 Rs Nil
(31st March 2011: Rs Nil)
Maximum amount outstanding during the year Rs 1,285.84 lakhs (31 st
March 2011: Rs 824.00 lakhs) Repayment schedule - on call loan
8. Details of dues to Micro and Small Enterprises as defined under
the MSMED Act, 2006:
There are no Micro and Small Enterprises, to whom the Company owes
dues, which are outstanding for more than 45 days as at 31st March,
2012. This information as required to be disclosed under the Micro,
Small and Medium Enterprises Development Act, 2006 has been determined
to the extent such parties have been identified on the basis of
information available with the Company.
i) Figures in brackets are for the previous year.
ii) Pursuant to notification no S:0 301 (E) dated 8th February 2011
issued by the Ministry of Company Affairs, disclosure of stock and
turnover is provided for item which are greater than 10% of the total
value of turnover.
9. RESEARCH AND DEVELOPMENT
The Company has received recognition of its In-house R & D unit
situated at 28/9, D-2 Block, MIDC, Chinchwad, Pune(Unit-Technology
Centre) up to 31st March,2014, vide letter dated 25th October, 2011
issued by Government of India, Ministry of Science and Technology,
Department of Scientific and Industrial Research, Technology Bhavan,
New Mehrauli Road, New Delhi-110 016. The Company has incurred
following expenditure on Research and Development.
10. The previous year's figures have been re-grouped / re-classified
to conform to this year's classification which is as per Revised
Schedule VI. This adoption does not impact recognition and measurement
principles followed for preparation of financial statements as at 31st
March 2011.
Mar 31, 2011
1. Provisions and Contingencies:
The Company creates a provision when there exists a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation. A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not require an outflow of resources. When there is a possible
obligation or a present obligation in respect of which likelihood of
outflow of resources is remote, no provision or disclosure is made.
2. Earnings Per Share:
The Basic and Diluted Earnings Per Share ("EPS") is computed by
dividing the net profit after tax for the year by weighted average
number of equity shares outstanding during the year.
3. Proposed Dividend:
Dividend recommended by the Board of directors is provided for in the
accounts, pending approval at the Annual General Meeting.
4. There are no Micro and small Enterprises, to whom the company owes
dues, which are outstanding for more than 45 days as at 31st March,
2011. This information as required to be disclosed under the Micro,
Small and Medium Enterprises Development Act, 2006 has been determined
to the extent such parties have been identified on the basis of
information available with the Company. Disclosures under the Micro and
small Enterprises Development Act, 2006 are provided as under for the
year 2010-11, to the extent the company has received intimations from
the suppliers regarding their status under Act as on 31st March, 2011.
5. The Company uses forward exchange contracts to hedge against its
foreign currency exposures relating to the underlying transactions and
firm commitments. The Company does not enter into any derivative
instruments for trading or speculative purposes.
6. The Company has recognized deferred tax arising on account of
timing differences, being the difference between the taxable income and
accounting income, that originates in one period and is capable of
reversal in one or more subsequent period(s) in compliance with
Accounting Standard (AS-22) - Accounting for Taxes on income.
7. Pursuant to Accounting Standard (AS-19) Lease, the following
information is given:
a) The Company has taken certain assets such as cars on an operating
lease basis, the lease rentals are payable by the company on a monthly
basis.
c) Lease payments recognised in the Profit and Loss account for the
period are Rs. 29.58 Lacs (previous year Rs 26.17 Lacs).
8. Employee Benefits:
(1) Short term employee benefits:
The liability towards short term employee benefits for the year ended
31st March, 2011 has been recognised in the Profit and Loss Account.
Notes:-
a) The estimates of future salary increases, considered in actuarial
valuation, takes into account the inflation, seniority, promotion and
other relevant factors such as supply and demand in the employment
market.
b) The Company estimates that the amount to be contributed to the
Gratuity fund for the financial year 2010-2011 will be Rs Nil.
c) The guidance on implementing AS-15 (Revised) issued by Accounting
Standards Board (ASB) of the Institute of Chartered Accountants of
India states benefit involving employer established provident funds,
which require interest shortfalls to be recompensed are to be
considered as defined benefits plans. Pending the issuance of the
guidance note from Actuarial Society of India, the Companys actuary
has expressed an inability to reliably measure provident fund
liabilities. Accordingly the company is unable to exhibit the related
information.
(3) Long Term Employee Benefits:
The liability towards compensated absences (annual leave and sick
leave) as at 31st March 2011, based on actuarial valuation carried out
using the Projected Accrued Benefit Method amounting to Rs 17.85 Lacs
(Previous year - Rs 18.65 Lacs ) has been recognised in the Profit &
Loss statement.
9. Information on related party transactions as required by
Accounting Standard - 18 on Related Party Disclosures for the year
ended 31st March, 2011.
1. Key manager person who is under the employment of the company is
entitled to post employment benefits and other long term employee
benefits recognised as per AS-15 (Revised) Employee benefits in the
financial statements. As this employee benefits are lumpsum amount
provided on the basis of actuarial valuation, the same is not included
above.
2. Corporate guarantee issued by the Company on behalf of its
subsidiary amounting to Rs 4803.00 Lacs as at 31st March, 2011
(Previous year Rs 1260.00 Lacs)
1. Relationship:
(i) Holding Company (vi) Companies controlled by
Directors/ Relatives
of Directors:
Geetanjali Trading
and Investments Pvt Ltd. Asian Paints Ltd.
(ii) Fellow Subsidiaries: Gujarat Organics Limited
Coatings Specialities (India) Ltd. Pragati Chemicals Ltd.
Rangudyan Insurance
Broking Services Ltd. Resins & Plastics Ltd.
SC Dani Research Foundation
Pvt. Ltd.
(iii) Subsidiary of the
Company: Suryakant Paint Accessories
Pvt. Ltd.
Clear Mipak Packaging
Solutions Ltd.
(iv) Key Management Person: (vii) Employee Benefit Fund
where control exists:
Mr. Ashok K. Goyal
(Managing Director) Hitech Plast Employees
Gratuity Trust
(v) Promoter Director:
Mr. Ashwin S. Dani
Mr. Hasit A. Dani
Mr. Jalaj A. Dani
Mr. Malav A. Dani
Mrs. Ina A, Dani
10. The Company had filed for compounding of offences under Section
621A of the Companies Act, 1956 to the Central Government post
inspection carried out under Section 209A of the Companies Act, 1956,
and compounding fees of Rs. 10,500/- were paid by the Company and Rs
27,000/- were paid in aggregate by the Managing Director and the
Company Secretary, in their personal capacities, for following
provisions of the Companies Act, 1956: (a) Section 211 (Part I) read
with Schedule IV, (b) Section 211 (Part II) read with Schedule IV, (c)
Section 257, (d) Section 301(1) read with 302(2), (e) Section 301(3)
and (f) Section 305.
11. As the Companys business activity fails within a single primary
business segment viz., "Plastic Containers", the disclosure
requirements of Account- ing Standard (AS-17) "Segment Reporting", as
prescribed in the Companies (Accounting Standards) Rules, 2006, is not
applicable. The capital employed in the reportable segment was X
13,368.37 lacs as on 31st March, 2011 (Rs 10,203.64 lacs as on 31st
March, 2010).
12. Previous years figures have been regrouped, wherever necessary.
Mar 31, 2010
1. The Company uses forward exchange contracts to hedge against its
foreign currency exposures relating to the underlying transactions and
firm commitments. The Company does not enter into any derivative
instruments for trading or speculative purposes. There are no forward
exchange contracts outstanding as at 31st March 2010.
The foreign currency exposure not hedged as at 31st March 2010 for
payables is USD NIL [Previous year USD Nil (Rs. Nil)] and for receivables
is NIL (Previous year NIL).
2. Employee Benefits:
(1) Short Term Employee Benefits:
The liability towards short term employee benefits for the year ended
31st March 2010 has been recognised in the Profit & Loss Account.
Note :-
a) The estimates of future salary increases, considered in actuarial
valuation, takes into account the inflation, seniority, promotion and
other relevant factors.
b) The Company estimates that the amount to be contributed to the
Gratuity fund in the financial year 2009-2010 will be Rs. 1.02 Lacs.
c) Comparative values of defined benefit plans (Gratuity and Pension)
for the past one year instead of four financial years, as required by
AS-15 (Revised) are provided, this being the third year of adoption of
the standard.
As per the Government Amendment vide Notification No.15 dated
24.05.2010 monetary ceiling for gratuity as per the Payment of Gratuity
Act, 1972 has been increased from Rs. 3.5 Lacs to Rs. 10 Lacs. Company has
not made provision for gratuity based on increased limit of Rs. 10 Lacs.
(3) Long Term Employee Benefits :
The liability towards compensated absences (annual leave and sick
leave) as at 31st March 2010, based on actuarial valuation carried out
using the Projected Accrued Benefit Method amounting to Rs. 18.65 Lacs
(Previous year à Rs. 12.13 Lacs) has been recognised in the Profit & Loss
Account.
4. During the year 2008-09, the Company had changed the method of
charging depreciation on plant & machinery retrospectively from the 1st
April 2003, from written down value (WDV) method to straight line
method as per the rates laid down in Schedule XIV to the Companies Act,
1956. The assets purchased prior to 31st March 2003 are continued to be
depreciated on written down value as per the rates laid down in
Schedule XIV to the Companies Act, 1956. The impact on account of this
resulted in lower depreciation and higher profits of Rs. 217.87 Lacs for
that year.
5. During the year 2008-09, the Company had changed the method of
charging depreciation on Moulds retrospectively from the 1st April
2003, from written down value (WDV) method to straight line
depreciation rates, considering the useful life of 4 years. The assets
purchased prior to 31st March 2003 are continued to be depreciated on
written down value as per the rates laid down in Schedule XIV to the
Companies Act, 1956. The impact on account of this resulted in lower
depreciation and higher profits of Rs. 6.23 Lacs for that year.
6. During the year 2008-09, the Company had changed the method of
charging depreciation on Furniture & Fixtures, computers, office
equipments and vehicles from the 1st April 2008, from written down
value (WDV) method to straight line depreciation rates, considering the
useful life as per details given below. The assets purchased prior to
31st March 2008 are continued to be depreciated on written down value
as per the rates laid down in Schedule XIV to the Companies Act, 1956.
Furniture & Fixture : 10 years
Computer : 5 years
Office Equipment : 10 years
Vehicle : 5 years
The impact on account of this resulted in lower depreciation and higher
profits of Rs. 110.87 Lacs for that year.
7. There are no Micro and Small Enterprises, to whom the Company owes
dues, which are outstanding for more than 45 days as at 31st March
2010. This information as required to be disclosed under the Micro,
Small and Medium Enterprises Development Act, 2006 has been determined
to the extent such parties have been identified on the basis of
information available with the Company.
(a) Principal amount and separately the interest due thereon remaining
unpaid to any supplier at the end of the financial yearÃNil
(b) The amount of interest paid u/s 16 of this Act, along with the
amounts of payments made to the supplier beyond the appointed day
during each accounting yearÃNil
(c) The amount of interest due and payable for the period of delay in
making payment which have been paid but, beyond the appointed day
during the yearÃNil
(d) The amount accrued and remaining unpaid at the end of each
accounting period; i.e., principal is paid but interest has remained
unpaidÃNil
(e) The amount of further interest remaining due and payable even in
the succeeding years, until such date when the interest dues as above
are actually paid to small enterprise, this is required for the purpose
of disallowance as a deductible expenditureÃNil
8. Related Party Disclosures, as required by AS-18, ÃRelated Party
Disclosures are given below:
1. Relationship :
(ii) Holding Company (iv) Key Management Personnel :
Geetanjali Trading and
Investments Private Limited Name of the Director
Mr. Ashok K. Goyal
(ii) Fellow Subsidiaries (v) Promoter Directors
Coatings Specialities
(India) Limited Mr. Ashwin S. Dani
Rangudyan Insurance Broking
Services Limited Mr. Jalaj A. Dani
Mr. Hasit A. Dani
Mr. Malav A. Dani
Mrs. Ina A. Dani
(iii) Subsidiaries of
the Company (vi) Companies over which the
Directors have controlling
interest Clear Mipak
Packaging Solutions
Limited Gujarat Organics Limited
(erstwhile Clear Plastics
Limited) S C Dani Research Foundation Private
Limited
Mipak Polymers Limited Suryakant Paint Accessories
Private Limited
(ceased to be subsidiary
from 1st October 2009)
9. During the year, the Company subscribed to 11,17,305 Equity Shares
(partly paid) issued as Rights Shares by Clear Mipak Packaging
Solutions Ltd. (CMPS), erstwhile Clear Plastics Ltd., Subsidiary of the
Company @ Rs. 80/- per share, including premium of Rs. 75/- per share.
Further, on amalgamation of erstwhile Mipak Polymers Ltd. (MPL) another
subsidiary of the Company with CMPS, the Company is being allotted
5,69,715 Equity Shares of CMPS, in the exchange ratio of one share for
every three shares held i.e. against its existing holding of 17,09,145
Equity Shares in MPL. Hence, total holding of Equity Shares in CMPS was
21,13,305 Equity Shares from earlier holding of 9,96,000 Equity Shares
as at 31st March 2009. On call an amount of Rs. 603.34 Lacs (including
premium of Rs. 547.48 Lacs) is payable.
10. Vide Order of Honourable High Court of Bombay dated 7th May 2010,
the Scheme of Amalgamation of both subsidiaries of the company i.e
Mipak Polymers Limited with Clear Plastics Limited got approved. As per
the Scheme, the name of the transferee company also got changed to
Clear Mipak Packaging Solutions Limited.
11. Since the Companys business activity falls within a single
primary business segment, viz., "Plastic Containers" the above results
apply to the same for the purpose of Accounting Standard - 17 (AS-17)
on segment reporting. The capital employed in the reportable segment
was Rs. 10,203.64 Lacs as on 31st March 2010 (Rs. 6,840.48 Lacs as on 31st
March 2009).
12. Previous years figures have been regrouped wherever necessary.
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