STOVE KRAFT PRIVATE LIMITED
Note No.	Notes forming part of the financial statements
1	Corporation information
	Stove Kraft Private Limited (the ‘Company’ / ‘SKPL’) is a leading manufacturer of brssure cookers, LPG stoves, non-stick cookware, wick stoves and trader of other kitchen and electrical appliances under the brand name “Pigeon” and “Gilma”.
2	Significant accounting policies
2.1	Basis of accounting and brparation of financial statements
	The financial statements of the Company have been brpared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013 and the relevant provisions of the Companies Act, 2013 (“the 2013 Act”). The financial statements have been brpared on accrual basis under the historical cost convention. The accounting policies adopted in the brparation of the financial statements are consistent with those followed in the brvious year
2.2	Use of estimates
	The brparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in brparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.
2.3	Inventories
	Inventories are valued at the lower of cost (cost is ascertained on weighted average basis) and the net realisable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of sale, including octroi and other levies, transit insurance and receiving charges. Work-in-progress and finished goods include appropriate proportion of overheads and, where applicable, excise duty.
2.4	Cash flow statement
	Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.
2.5	Cash and cash equivalents (for purposes of Cash flow statement)
	Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.
2.6	Debrciation and amortisation
	Debrciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value. Debrciation on tangible fixed assets has been provided on the straight-line method as per the useful life brscribed in Schedule II to the Companies Act, 2013 except in respect of the following categories of assets, in whose case the life of the assets has been assessed as under based on technical advice, taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturers warranties and maintenance support, etc. Individual assets costing less than Rs.5,000/- are debrciated in full in the year of purchase.
	Asset				Useful life in years
	Lease Hold Improvements		Over the lease period
	Intangible assets are amortised over their estimated useful life on straight line method as follows:
	Asset				Useful life in years
	Technical know how		5
	Computer Software		6
2.7	Revenue recognition
(a)	Sales are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales include excise duty but exclude sales tax and value added tax. Excise duty on sale of products is reduced from such sale. Excise duty relating to the difference between opening stock and closing stock of finished goods is recognised as income/ expense as the case may be, separately in the Statement of Profit and Loss.
(b)	Interest income on deposits with banks is accounted on accrual basis.
(c)	Export incentives / benefits are accounted for in the year of exports based on eligibility and when there is no uncertainty in receiving the same.
2.8	Fixed Assets (Tangible / Intangible)
	Fixed assets, are carried at cost less accumulated debrciation / amortisation and impairment losses, if any. The cost of fixed assets comprises its purchase price net of any trade discounts and rebates, any import duties and other taxes (other than those subsequently recoverable from the tax authorities), any directly attributable expenditure on making the asset ready for its intended use, other incidental expenses and interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intended use. Machinery spares which can be used only in connection with an item of fixed asset and whose use is expected to be irregular are capitalised and debrciated over the useful life of the principal item of the relevant assets. Subsequent expenditure on fixed assets after its purchase / completion is capitalised only if such expenditure results in an increase in the future benefits from such asset beyond its brviously assessed standard of performance. Fixed assets acquired and put to use for project purpose are capitalised and debrciation thereon is included in the project cost till the project is ready for its intended use.  Capital work-in-progress Projects under which assets are not ready for their intended use and other capital work-in-progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.
2.9	Foreign currency transactions
	Initial recognition: Transactions in foreign currencies entered into by the Company are accounted at the exchange rates brvailing on the date of the transaction or at rates that closely approximate the rate at the date of the transaction. Measurement of foreign currency monetary items at the Balance Sheet date: Foreign currency monetary items (other than derivative contracts) of the Company, outstanding at the balance sheet date are restated at the year-end rates. Non-monetary items of the Company are carried at historical cost. Exchange differences arising on settlement / restatement of short-term foreign currency monetary assets and liabilities of the Company are recognised as income or expense in the Statement of Profit and Loss. Foreign currency transactions are recorded at the rates of exchange brvailing on the date of the transactions. Monetary assets and liabilities outstanding at the yearend are translated at the rate of exchange brvailing at the year end and the gain or loss is recognized in the Statement of Profit and Loss. Exchange differences arising on actual payments / realizations and year end restatements are also recognised in the Statement of Profit and Loss.
2.10	Investments
	Long-term investments are carried individually at cost less provision for diminution, other than temporary, in the value of such investments. Current investments are carried individually, at the lower of cost and fair value. Cost of investments include acquisition charges such as brokerage, fees and duties. Investment in the fixed capital of a partnership firm is accounted at cost in Partner’s capital account and the share of profit / losses in the partnership firm is credited / debited to Partner’s current account.
2.11	Employee benefits
(a)	Employee benefits include provident fund, gratuity fund, and compensated absences.
(b)	Defined contribution plans:
	The Company's contribution to provident fund is considered as defined contribution plans and are charged as an expense based on the amount of contribution required to be made and when services are rendered by the employees.
(c)	Defined benefit plans:
	For defined benefit plans in the form of gratuity fund, the cost of providing benefits is determined using the Projected Unit Credit method, with actuarial valuations being carried out at each balance sheet date. Actuarial gains and losses are recognised in the Statement of Profit and Loss in the period in which they occur. Past service cost is recognised immediately to the extent that the benefits are already vested and otherwise is amortised on a straight-line basis over the average period until the benefits become vested. The retirement benefit obligation recognised in the Balance Sheet rebrsents the brsent value of the defined benefit obligation as adjusted for unrecognised past service cost, as reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited to past service cost, plus the brsent value of available refunds and reductions in future contributions to the schemes.
(d)	Short-term employee benefits:
	The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised during the year when the employees render the service. These benefits include performance incentive and compensated absences which are expected to occur within twelve months after the end of the period in which the employee renders the related service. The cost of short-term compensated absences is accounted as under : (a) in case of accumulated compensated absences, when employees render the services that increase their entitlement of future compensated absences; and (b) in case of non-accumulating compensated absences, when the absences occur.
2.12	Borrowing costs
	Borrowing costs include interest, amortisation of ancillary costs incurred and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan. Borrowing costs, allocated to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to construction / development of the qualifying asset upto the date of capitalisation of such asset are added to the cost of the assets. Capitalisation of borrowing costs is suspended and charged to the Statement of Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted.
2.13	Segment reporting
	The Company identifies primary segments based on the dominant source, nature of risks and returns and the internal organization and management structure. The operating segments are the segments for which separate financial information is available and for which operating profit / loss amounts are evaluated regularly by the executive Management in deciding how to allocate resources and in assessing performance. 'The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment. Inter-segment revenue is accounted on the basis of transactions which are primarily determined based on market / fair value factors. Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis have been included under “unallocated revenue / expenses / assets / liabilities.
2.14	Leases
	Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor are recognised as operating leases. Lease rentals under operating leases are recognised in the Statement of Profit and Loss on a straight-line basis over the lease term.
2.15	Earnings per share
	Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive potential equity shares are determined independently for each period brsented. The number of equity shares and potentially dilutive equity shares are adjusted for share splits / reverse share splits and bonus shares, as appropriate.
2.16	Taxes on income
	Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the applicable tax rates and the provisions of the Income Tax Act, 1961 and other applicable tax laws. Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is highly probable that future economic benefit associated with it will flow to the Company. 'Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted as at the reporting date.  Deferred tax liabilities are recognised for all timing differences. Deferred tax assets are recognised for timing differences of items other than unabsorbed debrciation and carry forward losses only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. However, if there are unabsorbed debrciation and carry forward of losses and items relating to capital losses, deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that there will be sufficient future taxable income available to realise the assets. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each balance sheet date for their realisability. 'Current and deferred tax relating to items directly recognised in reserves are recognised in reserves and not in the Statement of Profit and Loss.
2.17	Impairment of assets
	The carrying values of assets / cash generating units at each balance sheet date are reviewed for impairment if any indication of impairment exists. The following intangible assets are tested for impairment each financial year even if there is no indication that the asset is impaired: (a) an intangible asset that is not yet available for use; and (b) an intangible asset that is amortised over a period exceeding ten years from the date when the asset is available for use. If the carrying amount of the assets exceed the estimated recoverable amount, an impairment is recognised for such excess amount. The impairment loss is recognised as an expense in the Statement of Profit and Loss, unless the asset is carried at revalued amount, in which case any impairment loss of the revalued asset is treated as a revaluation decrease to the extent a revaluation reserve is available for that asset. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their brsent value based on an appropriate discount factor. When there is indication that an impairment loss recognised for an asset (other than a revalued asset) in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in the Statement of Profit and Loss, to the extent the amount was brviously charged to the Statement of Profit and Loss. In case of revalued assets such reversal is not recognised.
2.18	Provisions and contingencies
	A provision is recognised when the Company has a brsent obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their brsent value and are determined based on the best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes. Contingent assets are not recognised in the financial statements.
2.19	Provision for warranty
	The estimated liability for product warranties is recorded when products are sold. These estimates are established using historical information on the nature, frequency and average cost of warranty claims and management estimates regarding possible future incidence based on corrective actions on product failures. The timing of outflows will vary as and when warranty claim will arise - being typically upto seven years. As per the terms of the contracts, the Company provides post-contract services / warranty support to some of its customers. The Company accounts for the post-contract support / provision for warranty on the basis of the information available with the Management duly taking into account the current and past technical estimates.
2.20	Derivative contracts
	The Company enters into derivative contracts in the nature of foreign currency swaps, currency options, forward contracts with an intention to hedge its existing assets and liabilities, firm commitments and highly probable transactions in foreign currency. Derivative contracts which are closely linked to the existing assets and liabilities are accounted as per the policy stated for Foreign currency transactions and translations. All other derivative contracts are marked-to-market and losses are recognised in the Statement of Profit and Loss. Gains arising on the same are not recognised, until realised, on grounds of prudence.
2.21	Operating Cycle
	Based on the nature of products / activities of the Company and the normal time between acquisition of assets and their realisation in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

	STOVE KRAFT PRIVATE LIMITED
Note No.	Notes forming part of the financial statements
29	Derivative instruments
	The company has entered into forward exchange contracts, which are not intended for trading or speculative purposes, but for hedge purposes, to establish the amount of reporting currency required or available at the settlement date of certain payables and receivables.
	(a) Outstanding forward exchange contracts as at 31st March, 2016 entered by the Company for the purpose of hedging its foreign currency exposures are as under:
	Foreign Currency			Amount In Foreign Currency (USD)	Buy/Sell	Amount in Rs
	USD					6,32,121		Sell	4,19,28,586
	(b) Foreign currency exposures recognised by the Company that have not been hedged by a derivative instrument or otherwise as at 31st March, 2016 are as under:
	Particulars				31-Mar-16		31-Mar-15
						Foreign Currency	Rs.	Foreign Currency	Rs.
	Trade receivable			USD 463,473	3,07,43,514	USD 2,96,550	1,85,58,080
	Advance paid to suppliers		USD 269,530	1,78,78,716	USD 1,83,677	1,14,96,527
						EURO 169,950	1,27,62,465	EURO 34,123	23,03,647
	Trade payable			USD 593,558	3,93,72,440	USD 2,51,616	1,57,48,966
						EUR 143,624	1,07,85,524	EUR 6,166	4,16,282
	Short term borrowings		USD 2,330,197	15,45,68,728	USD 1,476,563	9,27,70,362
	(c) Refer note 5(i) for details on Cross currency swap.
30	Employee benefit plans
30.1	Defined contribution plans
	The Company makes Provident Fund contributions to defined contribution plans for qualifying employees. Under the Scheme, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs.19,002,255 /- (Previous Year Rs.17,424,937/-) for Provident fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.
30.2	Defined benefit plans
	The Company offers a gratuity benefit plan to its employees. The following tables sets out the un-funded status of the defined benefit plan and amount recognised in the financial statements, as per the actuarial valuation report as of March 31, 2016:
		Particulars					31-Mar-16	31-Mar-15
								Rs.	Rs.
	I	Components of employer expense
	1	Current Service cost				52,29,255	53,29,023
	2	Interest cost					14,71,267	12,27,163
	3	Expected return on plan assets			-	-
	4	Curtailment cost/(credit)				-	-
	5	Settlement cost/(credit)				-	-
	6	Past service cost				-	-
	7	Actuarial losses/(gains)				(66,59,281)	(15,16,228)
	8	Total expense recognised in the Statement of Profit & Loss		41,241	50,39,958
	II	Actual Contribution and Benefits Payments
	1	Actual benefit payments			-	-
	2	Actual Contributions				-	-
	III	Net asset/(liability) recognised in balance sheet
	1	Present value of Defined Benefit Obligation (DBO)		(2,09,85,317)	(1,84,36,930)
	2	Fair value of plan assets				-	-
	3	Funded status [Surplus/(Deficit)]			(2,09,85,317)	(1,84,36,930)
	4	Unrecognized Past Service Costs			-	-
	5	Net asset/(liability) recognised in balance sheet		(2,09,85,317)	(1,84,36,930)
		Current					(9,12,983)	(6,28,191)
		Non-current					(2,00,72,334)	(1,78,08,739)
		Total asset / (liability) recognised in the balance sheet		(2,09,85,317)	(1,84,36,930)
	IV	Change in Defined Benefit Obligations
	1	Present Value of DBO at beginning of period		1,84,36,930	1,33,96,972
	2	Current Service cost				52,29,255	53,29,023
	3	Interest cost					14,71,267	12,27,163
	4	Curtailment cost/(credit)				-	-
	5	Settlement cost/(credit)				-	-
	6	Plan amendments				-	-
	7	Acquisitions					25,07,146	-
	8	Actuarial (gains)/ losses				(66,59,281)	(15,16,228)
	9	Benefits paid					-	-
	10	Present Value of DBO at the end of period			2,09,85,317	1,84,36,930
	V	Change in Fair Value of Assets			Not applicable
	Actuarial assumptions
	Discount rate					7.98%	7.74%
	Salary escalation					7.00%	7.00%
	Attrition rate					5.00%	5.00%
	Mortality						India Assured Lives (2006-08) Ultimate Mortality Table
	Five year data: (Amount in Rs.)
	Particulars			31-Mar-16	31-Mar-15	31-Mar-14	31-Mar-13	31-Mar-12
	Defined Benefit Obligation	(2,09,85,317)	(1,84,36,930)	(1,33,96,972)	(1,35,43,467)	(1,35,43,467)
	Plan Assets			-	-	-	-	-
	Surplus / (Deficit)		(2,09,85,317)	(1,84,36,930)	(1,33,96,972)	(1,35,43,467)	(1,35,43,467)
	Experience Adjustment on Plan Liabilities	(66,59,281)	(15,16,228)	(54,79,303)	(2,15,908)	(2,48,317)
	Experience Adjustment on Plan Assets	-	-	-	-	-
	Note:
	Future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.
31	Segment reporting
	The Company is primarily engaged in the manufacturing and trading of kitchen appliances. In the opinion of the Management, the same rebrsents a single business segment and no separate product wise reporting is considered necessary. Further, as the major concentration of the market is India and the brsence in the rest of the world, in the opinion of the Management, is not significant for the year under reporting and hence no separate geographical segment disclosure has been made.
33	Lease
	The Company has entered into operating lease arrangements for office brmises and showrooms, which are cancellable at the option of the either party after giving prior notice. Lease payment recognized in the Statement of Profit and Loss against such operating lease arrangements is Rs.2,276,231 (Previous year Rs. 3,190,797).
34	Earnings per share
	Particulars						31-Mar-16	31-Mar-15
	Basic
	Weighted average no. of equity shares outstanding		1,89,00,110	1,89,00,110
	Par value per share (Rs.)				10.00	10.00
	Net profit						(25,24,72,884)	3,37,05,770
	Basic earning per shares (Rs.)				(13.36)	1.78
	Diluted
	Weighted average no. of equity shares outstanding for Basic EPS		1,89,00,110	1,89,00,110
	Add: Effect of Compulsory Convertible Debentures (CCD's) (Refer note 5 (i))	1,30,96,158	1,30,96,158
	Weighted average number of equity shares - for Diluted EPS		3,19,96,268	3,19,96,268
	Par value per share (Rs.)				10.00	10.00
	Net profit attributable to the equity shareholders			(25,24,72,884)	3,37,05,770
	Add: Interest on CCD's (Refer note 5 (i))			-	-
	Profit attributable to equity shareholders (on dilution)		(25,24,72,884)	3,37,05,770
	Diluted earning per shares (Rs.)			(13.36)	1.05
	Note: The Company had incurred losses in the current year. The Basic and Diluted Earnings Per Share for the year ending 31 March 2016 are the same as the effect of potential equity share are anti dilutive due to the such losses.
35	Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006
	Particulars						31-Mar-16	31-Mar-15
	(i) Principal amount remaining unpaid to any supplier as at the end of the accounting year	1,17,47,726	1,00,01,243
	(ii) Interest due thereon remaining unpaid to any supplier as at the end of the accounting year	12,94,254	29,80,819
	(iii) The amount of interest paid along with the amounts of the payment made to the supplier beyond the appointed day	-
	(iv) The amount of interest due and payable for the year		12,94,254	29,80,819
	(v) The amount of interest accrued and remaining unpaid at the end of the accounting year	12,94,254	29,80,819
	(vi) The amount of further interest due and payable even in the succeeding year, until such date when the interest dues as above are actually paid	2,97,196	1,70,350
	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.
36	Provisions
	The Company has made provision for various contractual obligations based on its assessment of the amount it estimates to incur to meet such obligations against the sales made by the Company in the current and brvious year, the details of which are given below:
	Particulars						31-Mar-16	31-Mar-15
	Warranty Provision				Rs.	Rs.
	Opening balance					69,63,999	64,43,764
	Additions during the year				20,95,885	11,24,064
	Reversed / utilisation during the year			(7,28,007)	(6,03,829)
	Closing balance					83,31,877	69,63,999
	Of the above the amounts expected to be incurred within a year amounts to Rs. 3,239,819 (Previous Year Rs. 2,709,856). The warranty expenditure is expected to be incurred over the warranty life of the products, as contracted, which varies from 6 months to 7 years
37	Contingent liabilities
	Particulars						31-Mar-16	31-Mar-15
								Rs.	Rs.
	Premium payable on redemption of CCDs (Refer note 5 (ii))		49,99,99,691	49,99,99,691
	Indirect tax matters under appeal			3,88,51,982	3,88,51,982
	Other disputed claims				19,75,000	19,75,000
	Provident fund claims				93,86,961	93,86,961
	Bank guarantee					75,98,708	61,49,980
	Total							55,78,12,342	55,63,63,614
38	Earnings in foreign currency
	Particulars						31-Mar-16	31-Mar-15
								Rs.	Rs.
	Exports at F.O.B. value				30,93,53,783	8,51,72,603
	Total							30,93,53,783	8,51,72,603
39	Expenditure in foreign currency
	Particulars						31-Mar-16	31-Mar-15
								Rs.	Rs.
	Travelling and conveyance				38,14,721	23,35,777
	Salaries and wages					26,75,150	28,14,547
	Testing Charges					1,60,800	-
	Professional Fees					2,21,361	-
	Reimbursement of freight charges			6,82,462	-
	Miscellaneous Expenses				52,915	-
	Total							76,07,409	51,50,324
40	Value of imports calculated on CIF basis
	Particulars						31-Mar-16	31-Mar-15
								Rs.	Rs.
	Raw materials					9,90,85,330	9,20,55,230
	Finished goods - trading				43,50,66,722	21,41,96,552
	Capital goods					1,67,84,240	2,86,28,128
	Total							55,09,36,292	33,48,79,910
41	Details of consumption of imported and indigenous items
	Particulars				31-Mar-16		31-Mar-15
	Imported				Rs.	%	Rs.	%
	Raw materials, components and packing materials	9,90,85,330	5%	9,20,55,230	6%
	Indigenous
	Raw materials, components and packing materials	1,82,32,04,293	95%	1,50,23,44,945	94%
	Total					1,92,22,89,623	100%	1,59,44,00,175	100%
42	Commitments
	Particulars						31-Mar-16	31-Mar-15
								Rs.	Rs.
	Estimated amount of contracts remaining to be executed on capital account and not provided for tangible assets (Net of advances)	1,27,25,999	2,26,39,930
	Total							1,27,25,999	2,26,39,930
43	During 2007, the Company (SKPL) had entered into an agreement to take over the business of M/s Vardhaman Enterprises (“VE”) a sole proprietorship firm owned by the Mr. Rajendra J. Gandhi, the Promoter and Managing Director of the Company.
	The Directorate General of Central Excise Intelligence (DGCEI) had issued show cause notice(s) to SKPL and M/s VE on January 16, 2009 and February 24, 2009 respectively, for alleged removal of goods without payment of proper excise duty and wrongful availment of Cenvat credit for the period 2004 to 2007. The Commissioner of Central Excise Bangalore, vide order No.’s 20/2010 and 21/2010 dated March 31, 2010 confirmed demands for non-payment of excise duty amounting to Rs 26,879,258, and Rs 67,837,438 on VE and SKPL respectively (including interest and penalty). Further, in the order no. 21/2010 the Commissioner has also disallowed Cenvat credit reversal of Rs 7,500,000 and imposed a penalty of an equivalent amount to be recovered from the said Promoter.
	The Company, is contesting the order no. 21/2010 on SKPL and certain provision (net of amounts recoverable from the Promoter) has been made which will be reviewed pursuant to final outcome of the matter. The Promoter of the Company, has given an undertaking that any other consequential or related implications arising out of the said matter will be borne by the said Promoter.
44	The Company, enters into “domestic transactions” with specified parties that are subject to the Transfer Pricing regulations under the Income Tax Act, 1961 (“regulations”). The pricing of such domestic transactions will need to comply with the arm’s length principle under the regulations. These regulations, inter alia, also require the maintenance of brscribed documents and information including furnishing a report from an Accountant which is to be filed with the Income Tax authorities. The company, has undertaken necessary steps to comply with the regulations. The Management is of the opinion that the domestic transactions are at arm’s length and hence the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.
45	Deferred taxes: The Company has not recognised deferred tax asset on unabsorbed debrciation and brought forward business losses to the extent of the corresponding deferred tax liability on the difference between the book balance and the written down value of fixed assets under Income Tax Act, 1961.
46	In the current year, the Company has entered into a Slump Sale Agreement dated March 31, 2016 with Saya Industries (the “Firm” or the “Saya”), a partnership firm in which the Company is a majority partner, for transfer all assets and liabilities of the Firm as a going concern and as is where is basis with effect from close of business hour on March 31, 2016 for a total consideration of Rs.75,000,000. As per the agreement with Saya, the mentioned purchase consideration has been adjusted against the balances in Partner's Capital Account and Current Account of Saya. Details of assets and liabilities taken over:
	Particulars						Amount in Rs.
	Liabilities:
	- Long-term provisions				23,22,871
	- Short-term borrowings				7,07,76,569
	- Trade payables					18,39,60,648
	- Other current liabilities				50,04,524
	- Short term Provisions				15,54,587
	Total Liabilities (A)						26,36,19,199
	Assets:
	- Fixed assets					2,72,18,797
	- Long-term loans and advances			2,68,700
	- Inventories					16,80,59,663
	- Trade receivables					12,02,35,634
	- Cash and cash equivalents				1,71,15,977
	- Short-term loans and advances			55,47,440
	- Other current assets				1,72,988
	Total Assets (B)						33,86,19,199
	Net asset transferred (C) = [(B) - (A)]				7,50,00,000
	Purchase consideration adjusted against investment in partnership firm		7,50,00,000
47	Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.