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Notes to Accounts of Hitech Corporation Ltd.

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 “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 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., “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, 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 (“AS 12”) “Accounting for Government Grants” 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 – 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 – 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)– 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 – 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 – 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 – 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 year—Nil

(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 year—Nil

(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 year—Nil

(d) The amount accrued and remaining unpaid at the end of each accounting period; i.e., principal is paid but interest has remained unpaid—Nil

(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 expenditure—Nil

8. Related Party Disclosures, as required by AS-18, ‘Related 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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