Note no.1 Company Overview & Significant Accounting Policies
Company Overview
Kanpur Plastipack Limited (‘KPL’ or ‘The Company’) is a Public Limited company, domiciled in India and incorporated on July 26th, 1971 under the provisions of the Companies Act, 1956 and having its registered office at D-19-20, Panki Industrial Area Kanpur, Uttar Pradesh-208022, India.
The company is a star export house, engaged in manufacturing of HDPE/PP Woven Sacks , PP Box Bags, Flexible Intermediate Bulk Containers (FIBC’s), Fabrics and High Tenacity PP. The company is also a Consignment Stockiest of M/s Indian Oil Corporation Limited. and owns and operates solar power generation facility at A1-A2 Unit of the Company. The company is in the process of expanding its manufacturing capacity and has also raised capital through a Rights Issue during the year.
These Financial Statements were authorized by the Board of Directors for issue in accordance with the Resolution passed on May 14th, 2018.
A. Terms and Rights attached to equity shares
The Company has only one class of equity shares having a par value of RS. 10/- per share (March 31, 2016 : RS. 10/- per share) (April 1, 2015: RS. 10/- per share). Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees in proportion to the paid up value of the equity shares. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders
Note:
a. In accordance with the consent of Shareholders dated 15/09/2016 and in- principle approval of the Bombay Stock Exchange dated 19/09/2016, the Company has capitalised its profit of RS. 397.96 (in Lacs) on 27/09/2016 and allotted 39.79 (in Lacs ) Equity Shares as Bonus Shares to its existing Equity Shareholders.
b. In terms of Section 62 of the Companies Act, 2013, and the authorisation of the Board vide resolution passed on May, 19th, 2017, the company offerd a Rights’ Issue to its existing shareholders in the ratio of 1:5. The issue price per share was RS.75/- (including premium of RS.65/- per share) of which only 50% was called at the time of subscription while the balance 50% is yet to be called.
Note - 2 Dividend
The Company recognizes a liability to make payment of dividend to owners of equity when the distribution is authorized and is no longer at the discretion of the Company and is declared by the shareholders . A corresponding amount is recognised directly in equity.
Under the previous GAAP, proposed dividend including corporate dividend tax (CDT), were recognised as liability in the period to which they related, irrespective of date/year of declaration of dividend.
Under Ind AS, proposed dividend is recognised as liability in the period in which it is declared by the Company, usually when approved by the shareholders in a general meeting, or paid.
Proposed Dividend, including corporate dividend (CDT) tax liability as on April 1, 2016 amounting to RS.52.59 lakhs was derecognised on the transition date with corresponding increase in retained earning.
The same has been recognised in retained earnings during the year ended March 31, 2017 as declared and paid. Proposed dividend including corporate dividend tax (CDT) liability as on March 31, 2017 amounting to RS.258.65 lakhs is also derecognised on that date with the corresponding increase in the retained earnings.
The dividends paid in the years reported in these financial statements are duly disclosed in the Statement of changes in Equity of the year in which payment has been made, irrespective of the year in which the same were proposed.
Note 3 Segment Reporting
The segment reporting of the Company has been prepared in accordance with Ind AS-108, “Operating Segment” (specified under section 133 of the Companies Act, 2013, read with Rule 7 of Companies (Accounts) Rules, 2015). For management purposes, the company is organized into business segment based on its products and services and has three reportable segments as follows:
a) Operating Segments
Plastic Division : Domestic and Export sale of manufactured and traded plastic products
Consignmnet Stockiest : Consignment Stockiest for Indian Oil Corporation Ltd.
Solar Power Division : Generation and supply of power. The same is consumed by the company in is manufacturing operations.
b) Summary of Segmental Information
Note 4 Earning Per Share
Earning per Share (EPS) is computed in accordance with Ind-AS - 33- “Earning Per share” (specified under section 133 of the Companies Act, 2013, read with Rule 7 of Companies (Accounts) Rules, 2015).
Note 5 Related Party Disclosures L. Disclosure of transactions with related parties as required by Accounting Standard 18 (As identified by the management)
The company’s related party transactions during the year and outstanding balances as on 31.03.2018 are as under:
(A) Details of Associate Companies
1. KSM Exports Ltd. - Associate Company
2. MSA Investment & Trading Co. Pvt. Ltd. - Associate Company
3. KPL Packaging Pvt. Ltd. - Associate Company
(B) Details of Key Management Personnel & their relatives
1. Mahesh Swarup Agarwal - Chairman Emeritus
2. Manoj Agarwal - Managing Director
3. Shashank Agarwal - Deputy Managing Director
4. Sunil Mehta - Executive Director
5. Usha Agarwal - Director
6. Manjari Agarwal - Relative of Director
Note: the company has disclosed financial instruments such as cash & cash equivalents, other bank balances, trade receivables, trade payables, bank overdrafts and other current liabilties at carrying amount value because their carrying amounts are a reasonable approximation of the fair values due to the short term maturities of these instruments.
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