€¦ · ecoplast limited annual report 2017 -2018 board of directors jaymin b. desai - managing...
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Ecoplast LtdThirty Sith Annual Report and Statement of Accounts for the year ended 31st March 2018
36
Ecoplast LimitedAnnual Report 2017 -2018
Board of Directors
Jaymin B. Desai - Managing Director
Jehangir A. Moos - Director
Dhananjay T. Desai - Director
Bhupendra M. Desai - Director
Compliance Officer
Bankers Bank of Baroda
Main Branch,
Nani Khatriwad,
Valsad - 396 001,
Auditors Y. B. Desai & Associates
Chartered Accountants
1/573, Gajanand Chambers,
Besides Anand Hospital,
Por Mahollo, Nanpura, Surat - 395001.
Share Registrars & TSR DARASHAW PRIVATE LTD.
6-10, Haji Moosa Patrawala Industrial estate,
20, Dr. E. Moses Road, Mahalaxmi,
Mumbai - 400 011.
Registered Office National Highway No.8,
Water Works Cross Road,
Abrama, Valsad - 396 002. Gujarat.
email : [email protected]
Sales Office 4, Magan Mahal,
215, Sir M. V. Road, Andheri (East),
Mumbai : 400 069.
Website www.ecoplastindia.com
CIN L25200GJ1981PLC004375
Mukul B. Desai - Chairman
Gujarat.
Charulata N. Patel - Director
Company Secretary & Antony Alapat
Chief Financial Officer M . D. Desai
Ecoplast Limited
2
Notice.............................................................................................. 3-12
Financial Highlights....................................................................... 13
Disclosure of Directors Attendance............................................. 14
Directors’ Report............................................................................ 15-18
Annexure to the Directors’ Report................................................19-40
Management Discussion and Analysis Report........................... 41
Auditors’ Report ............................................................................ 42-48
Balance sheet................................................................................. 49
Statement of Profit & Loss Account............................................. 50
Cash Flow Statement..................................................................... 51-52
Notes to Financial Statements...................................................... 53-93
Auditors Report on the Consolidated Financial Statement....... 94-98
Consolidated Balance Sheet ........................................................ 99
Consolidated Statement of Profit & Loss Account .................... 100
Consolidated Cash Flow Statement ............................................101-102
Notes to the Consolidated Financial Statement ......................... 103-145
Attendance Slip.............................................................................. 146
Proxy form...................................................................................... 147-148
C O N T E N T S
NOTICE
Notice is hereby given that the Thirty Sixth Annual General
Meeting of the members of Ecoplast Limited will be held at The
Club Resort, At & P.O.Vashier, Valsad - 396 001 on Friday,
14th September 2018 at 12.00 p.m. noon to transact the
following business :
ORDINARY BUSINESS :
1. To receive, consider and adopt:
a. the Audited Financial Statements of the Company for the
financial year ended 31st March, 2018, together with the
Reports of the Board of Directors and the Auditors thereon;
and
b. the Audited Consolidated Financial Statements of the
Company for the financial year ended 31st March,2018,
together with the Report of the Auditors thereon.
2. To declare Dividend on Equity Shares for the financial year
ended 31st March, 2018.
3. To appoint a Director in place of Ms. Charulata Patel
(holding DIN 00233935) who retires by rotation and, being
eligible, offers herself for re-appointment
SPECIAL BUSINESS
4. Re-appointment of Mr. Jaymin Desai ( DIN 00156221) as
Managing Director of the Company and payment of
remuneration to him.
To consider and if thought fit to pass the following resolution as
a Special Resolution:
“RESOLVED THAT pursuant to the provisions of Sections
196,197,203 and any other applicable provisions of the
Companies Act, 2013 and Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014
(including any statutory modification(s) or re-enactment
thereof for the time being in force), read with Schedule V to the
Companies Act, 2013, SEBI (Listing Obligations and
Disclosures Requirement) (Amendment) Regulation, 2018
notified by SEBI by way of Notification No. SEBI/ LAD-NRO/
GN/ 2018/ 10 dated May 09, 2018 and subject to such other
approval as may be necessary, the Company hereby accords
its consent and approval to the re-appointment of Mr. Jaymin
Desai (DIN 00156221) as Managing Director of the Company
for a period of three years with effect from 1st October,2018 to
30th September 2021 on the terms and conditions including
remuneration as set out in the Statement setting out material
facts annexed to the notice convening this meeting, with
liberty and power to the Board of Directors (hereinafter
referred to as 'the Board' which expression shall also include
the Nomination and Remuneration Committee of the Board),
in the exercise of its discretion, to grant increments and to alter
and vary from time to time the terms and conditions of the said
appointment, subject to the same not exceeding the limits
specified under Schedule V to the Companies Act, 2013 or
any statutory modification(s) or re-enactment thereof.
RESOLVED FURTHER THAT the Board be and is hereby
authorised to do all such acts, deeds, matters and things as
may be necessary, proper, expedient or desirable to give
effect to this resolution and/or to make any modification as
may be deemed to be in the best interest of the Company.”
5. Approval of shareholders for continuing the Directorship of
Mr. Dhananjay T. Desai (holding DIN:00049574) who has
attained the age of seventy five year till his original tenure upto
September 11, 2020 under SEBI (Listing Obligations and
Disclosures Requirement) (Amendment) Regulation, 2018.
To consider and if thought fit to pass the following resolution as
a Special Resolution:
Annual Report 2017 - 2018
3
Ecoplast Limited
4
“RESOLVED THAT pursuant to the SEBI (Listing Obligations
and Disclosures Requirement) (Amendment) Regulation,
2018 notified by SEBI by way of Notification No. SEBI/ LAD-
NRO/ GN/ 2018/ 10 dated May 09, 2018 and all other
applicable provisions of Listing Regulations, the Companies
Act, 2013 and Rules framed there under, and such other
applicable laws, rules, regulations, guidelines ("other
applicable laws") (including any statutory amendment(s) or
modification(s) or re-enactment(s) thereof, for the time being
in force) and subject to the Memorandum and Articles of
Association of the Company, the Company do hereby approve
continuation of Directorship of the Company of Mr. Dhananjay
T. Desai (DIN:00049574) , who has attained the age of
seventy five years, till his Original Term up to September 11,
2020.”
6. Approval of shareholders for continuing the Directorship of
Mr. Jehangir A. Moos (holding DIN:00020609) who will attain
the age of seventy five years till his original tenure up to
September 19, 2019 under SEBI (Listing Obligations and
Disclosures Requirement) (Amendment) Regulation, 2018.
To consider and if thought fit to pass the following resolution as
a Special Resolution:
“RESOLVED THAT pursuant to the SEBI (Listing Obligations
and Disclosures Requirement) (Amendment) Regulation,
2018 notified by SEBI by way of Notification No. SEBI/ LAD-
NRO/ GN/ 2018/ 10 dated May 09, 2018 and all other
applicable provisions of Listing Regulations, the Companies
Act, 2013 and Rules framed there under, and such other
applicable laws, rules, regulations, guidelines ("other
applicable laws") (including any statutory amendment(s) or
modification(s) or re-enactment(s) thereof, for the time being
in force) and subject to the Memorandum and Articles of
Association of the Company, the Company do hereby approve
continuation of Directorship of the Company of Mr. Jehangir
A.Moos (DIN:00020609) , who will attain the age of seventy
five years on 21st May 2019, till his Original Term up to
September 19, 2019.”
By Order of the Board
For Ecoplast Limited
Registered Office:
National Highway No. 8,
Water Works Cross Road,
Abrama, Valsad - 396002,
Gujarat
CIN: L25200GJ1981PLC004375
Tel: (02632) 226157
E-mail : [email protected],
Website : www.ecoplastindia.com
Mumbai, 28th May, 2018
Antony Alapat
Company Secretary
Annual Report 2017 - 2018
Mahalaxmi, Mumbai - 400 011.
f) In terms of Section 124 of the Companies Act, 2013
dividends remaining unpaid or unclaimed for a period of seven
years from the date of transfer to the unpaid dividend account
of the Company shall be transferred by the Company to the
Investor Education and Protection Fund established by the
Central Government pursuant to sub-section (1) of Section
125 of the Companies Act, 2013. In terms of Section 124(6) of
the Companies Act,2013, all shares in respect of which
dividend has not been claimed for seven consecutive years or
more shall also be transferred by the company to the demat
account of Investor Education and Protection Fund Authority.
Any claimant of shares transferred as above shall be entitled
to claim the transfer of shares from Investor Education and
Protection Fund Authority in accordance with the Investor
Education and Protection Fund Authority (Accounting, Audit,
Transfer and Refund) Rules, 2017. The Members, whose
unclaimed dividends/shares have been transferred to IEPF,
may claim the same by making an application to the IEPF
Authority in Form No.IEPF-5(available on www.iepf.gov.in).
g) The Securities and Exchange Board of India (SEBI) has
mandated the submission of Permanent Account Number
(PAN) by every participant in security market. Shareholders
holding shares in electronic form are, therefore requested to
submit the PAN to their Depository Participant with whom they
are maintaining their demat accounts. Shareholders holding
share in physical form can submit their PAN details to the
Company.
h) The Notice of the AGM along with the Annual Report for the
FY 2017-18 is being sent by electronic mode to those
Members whose e-mail addresses are registered with the
Company/Depositories, unless the Member has requested for
a physical copy of the same. For Members who have not
registered their e-mail addresses, physical copies are being
sent by the permitted mode. To support the 'Green Initiative'
the Members who have not registered their e-mail addresses
are requested to register the same with TSRDL/Depositories.
i) Members may also note that this Notice of the 36thAnnual
General meeting and the Annual report for the year 2017-
2018 will be also available on the Company's Website:
www.ecoplastindia.com for download.
j) All documents referred to in the notice of the Meeting and
other statutory registers shall be available for inspection by
the Members atthe registered office of the Company during
officehours on all working days between 11.00 a.m. and1.00
5
Notes:
a) The relative Explanatory Statement pursuant to Section
102 of the Companies Act, 2013 ("Act") setting out material
facts concerning the business under Item Nos. 4 to 6 of the
Notice, is annexed hereto. The relevant details, pursuant to
Regulation 36(3) of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 ("SEBI Listing
Regulations") and Secretarial Standard on General Meetings
issued by the Institute of Company Secretaries of India, in
respect of Directors seeking appointment/re-appointment at
this Annual General Meeting are also annexed.
b) A MEMBER ENTITLED TO ATTEND AND VOTE AT THE
MEETING IS ENTITLED TO APPOINT PROXY/PROXIES TO
ATTEND AND VOTE INSTEAD OF HIMSELF/HERSELF.
PROXY/PROXIES NEED NOT BE A MEMBER OF THE
COMPANY. A PERSON CAN ACT AS PROXY ON BEHALF
OF MEMBERS NOT EXCEEDING FIFTY (50) AND IN
HOLDING NOT MORE THAN TEN PERCENT (10%) OF THE
TOTAL SHARE CAPITAL OF THE COMPANY. IN CASE A
PROXY IS PROPOSED TO BE APPOINTED BY A MEMBER
HOLDING MORE THAN 10% OF THE TOTAL SHARE
CAPITAL OF THE COMPANY CARRYING VOTING RIGHTS,
THEN SUCH PROXY SHALL NOT ACT AS A PROXY FOR
ANY OTHER PERSON OR SHAREHOLDER. PROXIES IN
ORDER TO BE EFFECTIVE MUST BE RECEIVED BY THE
COMPANY AT ITS REGISTERED OFFICE NOT LATER
THAN FORTY E IGHT HOURS BEFORE THE
COMMENCEMENT OF THE MEETING. A PROXY FORM IS
SENT HEREWITH. PROXIES SUBMITTED ON BEHALF OF
THE COMPANIES, SOCIETIES ETC., MUST BE
S U P P O R T E D B Y A N A P P R O P R I A T E
RESOLUTION/AUTHORITY, AS APPLICABLE.
c) The Register of Members and the Share Transfer books of
the Company will remain closed from Friday, 7th September,
2018 to Friday, 14th September, 2018 (both days inclusive).
d) Members seeking any information with regard to the
Accounts are requested to write to the Company at least
seven days prior to the meeting, so as to enable the
Management to keep the information ready at the Meeting.
e) All correspondence relating to transfer of shares, change
of address, dividend mandates etc. should be sent to the
Registrar & Share Transfer agents quoting their folio numbers
only at the following address:
M/s TSR Darashaw Ltd. ("TSRDL"), 6-10, Haji Moosa
Patrawala Industrial Estate, 20, Dr. E.Moses Road,
p.m. except Saturdays, Sundays andpublic holidays, from the
date hereof up to the dateof the annual general meeting.
k) A route map giving directions to reach the venue of the 36th
Annual General Meeting is given at the end of the Notice.
l) Voting through electronic means:
In compliance with provisions of Section 108 of the
Companies Act, 2013 read with Rule 20 of the Companies
(Management and Administration) Rules, 2014,as amended
by the Companies (Management and Administration)
Amendment Rules, 2015and Regulation 44 of the SEBI
(Listing Obligations and Disclosure Requirements)
Regulations, 2015 (' Listing Regulations') as amended .the
Company is pleased to provide members facility to exercise
their right to vote at the 36thAnnual General Meeting (AGM)
by electronic means and the business may be transacted
through remote e-voting.
The facility of casting the votes by the Members using an
electronic voting system from a place other than venue of the
AGM ("remote e-voting") will be provided by National
Securities Depository Limited (NSDL).As the voting would be
through electronic means, the Members who do not have
access to remote e-voting,may send their assent or dissent in
writing on the Ballot Form enclosed with the Annual Report.
You are required to complete and sign the Ballot Form and
send it so as to reach the Scrutinizer appointed by the Board of
Directors of the Company, at the Registered Office of the
Company not later than Thursday, 13th September, 2018
(5.00 p.m. IST). Ballot Form received after this date will be
treated as invalid.
A Member can opt for only one mode of voting, i.e., either
through remote e-voting or by Ballot. If a Member casts votes
by both modes, then voting done through remote e-voting
shall prevail and Ballot shall be treated as invalid.
I. The facility for voting through Ballot shall also be made
available at the AGM and Members attending the meeting
who have not cast their vote by remote e-voting/physical ballot
shall be able to exercise their right to vote at the meeting.
II. The process and manner for remote e-voting are as under:
A. In case a Member receives an email from NSDL [for
members whose email IDs are registered with the
Company/Depository Participants(s)]:
(i) Open email and open PDF file viz; "Ecoplast e-Voting.pdf"
with your Client ID or Folio No. as password. The said PDF file
contains your user ID and password/PIN for e-voting. Please
note that the password is an initial password.
(ii)Launch internet browser by typing the following URL:
https://www.evoting.nsdl.com/
(iii) Click on Shareholder - Login
(iv)Put user ID and password as initial password/PIN noted in
step (i) above. Click Login.
(v) Password change menu appears. Change the
password/PIN with new password of your choice with
minimum 8 digits/characters or combination thereof. Note
new password. It is strongly recommended not to share your
password with any other person and take utmost care to keep
your password confidential.
(vi) Home page of e-voting opens. Click on e-Voting: Active
Voting Cycles.
(vii) Select "EVEN" of Ecoplast Limited.
(viii) Now you are ready for e-voting as Cast Vote page opens.
(ix) Cast your vote by selecting appropriate option and click on
"Submit" and also "Confirm" when prompted.
(x) Upon confirmation, the message "Vote cast successfully"
will be displayed
(xi) Once you have voted on the resolution, you will not be
allowed to modify your vote
(xii) Institutional shareholders (i.e. other than individuals,
HUF, NRI etc.) are required to send scanned copy (PDF/JPG
Format) of the relevant Board Resolution/ Authority letter etc.
together with attested specimen signature of the duly
authorized signatory(ies) who are authorized to vote, to the
Scrutinizer through e-mail to [email protected] with
a copy marked to [email protected]
B. In case a Member receives physical copy of the Notice of
AGM [for members whose email IDs are not registered with
the Company/Depository Participants(s) or requesting
physical copy]:
(i) Initial password will be provided separately: EVEN (e-
Voting Event Number) USER ID PASSWORD/PIN
(ii) Please follow all steps from Sl. No. (ii) to Sl. No. (xii) above,
to cast vote.
III. In case of any queries, you may refer the Frequently Asked
Questions (FAQs) for Shareholders and e-Voting user manual
for Shareholders available at the Downloads section of
Ecoplast Limited
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Annual Report 2017 - 2018
7
cast through Ballot at the AGM in a fair and transparent
manner.
XI.The Scrutinizer shall after the conclusion of voting at the
Annual General meeting, will first count the votes cast at the
meeting and thereafter unblock the votes cast through remote
e-voting/physical ballots in the presence of at least two
witnesses not in the employment of the Company and shall
make, not later than three days of the conclusion of the Annual
General Meeting, a consolidated Scrutinizer's Report of the
total votes cast in favour or against, if any, to the Chairman or
director authorized by him in writing, who shall countersign the
same and declare the result of the voting forthwith.
XII. The Results declared along with the Scrutinizer's Report
s h a l l b e p l a c e d o n t h e C o m p a n y ' s w e b s i t e
www.ecoplastindia.com and on the website of NSDL within
two(2) days of passing of the resolutions at the AGM of the
Company and communicated to BSE Limited. The results
shall also be placed on the notice board at the Registered
Office of the Company.
By Order of the Board
For Ecoplast Limited
Registered Office:
National Highway No. 8,
Water Works Cross Road,
Abrama, Valsad - 396002,
Gujarat
CIN: L25200GJ1981PLC004375
Tel: (02632) 226157
E-mail : [email protected],
Website : www.ecoplastindia.com
Mumbai, 28th May, 2018
www.evoting.nsdl.com
IV. If you are already registered with NSDL for e-voting then
you can use your existing user ID and password/PIN for
casting your vote.
V. You can also update your mobile number and email id in
the user profile details of the folio which may be used for
sending future communication(s).
VI.The remote e-voting period commences on Tuesday,11th
September, 2018 (9:00 am) and ends on Thursday, 13th
September, 2018 (5:00pm). During this period shareholders'
of the Company, holding shares either in physical form or in
dematerialized form, as on the cut-off date of 7th September,
2018, may cast their votes electronically. The remote e-voting
module shall be disabled by NSDL for voting thereafter. Once
the vote on a resolution is cast by the shareholder, the
shareholder shall not be allowed to change it subsequently.
VII. The voting rights of shareholders shall be in proportion to
their shares of the paid up equity share capital of the Company
as on the cut-off date of 7th September, 2018.
VIII. If a Member casts votes by remote e-voting/Physical
Ballot and at the AGM through Ballot, then vote cast through
remote e-voting/Physical Ballot shall prevail and vote cast
through Ballot at the AGM shall be treated as invalid. The
members who have cast their vote by remote e-voting or by
ballot form prior to the meeting may also attend the meeting
but shall not be entitled to cast their vote again.
IX.Any person, who acquires shares of the Company and
becomes member of the Company after dispatch of the notice
and holding shares as of the cut-off date, may obtain the login
ID and password by sending a request at [email protected].
However, if you are already registered with NSDL for remote
e-voting then you can use your existing user ID and password
for casting your vote. If you forgot your password, you can
reset your password by using "Forgot User Details/Password"
optionavailable on www.evoting.nsdl.com.
X. Mr. P.N. Parikh (Membership No FCS: 327 CP: 1228) and
failing him Mr. Mitesh Dhabliwala (Membership No FCS :
8331, CP: 9511) of Parikh & Associates., Practicing Company
Secretaries, (Address : 111, 11th Floor, Sai Dwar CHS Ltd.,
Sab TV Lane, Opp. Laxmi Indl Estate, Off Link Road, Andheri
(West), Mumbai-400053.) has been appointed as the
Scrutinizer to scrutinize the remote e-voting process
(including the physical ballots received from members who
don't have access to the remote e-voting process)and votes
Antony Alapat
Company Secretary
ANNEXURE TO NOTICE
STATEMENT PURUSANT TO SECTION 102(1) OF THE
COMPANIES ACT, 2013 ("Act")
The following Statement sets out the material facts
relating to the Special Business mentioned in the
accompanying Notice:
Item No. 4:
At the 33rd Annual General Meeting of the Company held on
12th September 2015 the members had approved the re-
appointment and terms of remuneration of Mr. Jaymin Desai
as Managing Director of the Company for a period of 3 years
from 1st October, 2015 to 30th September, 2018.
The term of appointment of Mr. Jaymin Desai would expire on
30th September, 2018.Considering the significant growth
achieved by the Company and the ambitious growth plan for
immediate future, the responsibilities borne by the Managing
Director and the industry standards, the Board of Directors of
the Company at its Meeting held on 28th May, 2018 has upon
the recommendation of the Nomination and Remuneration
Committee and subject to the approval of members, approved
the re-appointment and terms of remuneration of Mr. Jaymin
Desai, as the Managing Director of the Company, for a term of
3 (Three) years w.e.f. from 1st October, 2018 to 30th
September, 2021.
The terms of remuneration payable to Mr. Jaymin Desai,
Managing Director are set out below:
a) SALARY: Rs. 5,25,000/- per month with such increments,
effective 1st October every year, as may be decided by the
Board of Directors of the Company within the scale of
Rs.5,25,000/- to Rs.6,00,000/- per month during the tenure of
his appointment.
b) Perquisites: In addition to the aforesaid Salary and
commission the Managing Director shall be entitled to the
following perquisites:
i) House Rent Allowance of Rs.1,57,500/- per month with
such increments, effective 1st October every year, as may be
decided by the Board of Directors of the Company within the
scale of Rs. 1,57,500/- to Rs.2,00,000/- per month during the
tenure of his appointment.
ii) Medical Allowance of Rs.20,833 per month.
ii) Reimbursement of Medical Insurance premium not
exceeding Rs. 25,000/- per annum.
iii) Personal Accident Insurance policy to cover the risk up to
an annual premium not exceeding a sum of Rs. 10,000/-
iv) Reimbursement of Leave Travel expenses as per rules of
the Company for self and family not exceeding Rs 1,50,000/-
per annum.
The above perquisites shall be evaluated as per the Income
tax Rules wherever applicable. In the absence of such rules,
perquisites will be evaluated at actual costs.
Notwithstanding anything to the contrary here in contained,
where, in any financial year during the currency of the tenure
of Mr. Jaymin B Desai as the Managing Director, the Company
has made no profits or its profits are inadequate, the Company
shall pay to the Managing Director, the above Salary and
perquisites, as Minimum Remuneration subject to the limits
provided in Schedule V of the Companies Act, 2013.
c) The Managing Director shall also be entitled to the
following perquisites which shall not be included in the
computation of the ceiling on remuneration specified herein
above :
i. Contribution to Provident Fund, Superannuation Fund or
Annuity Fund to the extent these either singly or put together
are not taxable under the Income tax Act, 1961.
ii. Gratuity payable at the rate not exceeding half a month's
Salary for each completed year of service.
iii. Earned privilege leave at the rate of one month's leave for
every eleven months of service. The Managing Director shall
be entitled to encash leave at the end of his tenure as
Managing Director.
iv. Provision for Car including driver's salary and Telephone at
the residence of the Managing Director and mobile phone for
the business of the Company shall not be treated as
perquisites.
v. All income tax and other impositions, if any, in respect of
Mr. Jaymin B. Desai's remuneration shall be calculated by the
Company and deducted in accordance with the applicable
provisions of the Income tax law for the time being in force.
d) Mr. Jaymin B. Desai shall perform such duties and exercise
such powers as may be from time to time delegated to him by
the Board of Directors of the Company.
e) Mr. Jaymin B. Desai shall devote all the time required for
the business of the Company and do his utmost to advance its
Ecoplast Limited
8
4) Financial performance based on given indicators:interest and shall exercise all his powers subject to the
superintendence and control of the Board of Directors of the
Company.
f) Mr. Jaymin B. Desai during the currency of the Agreement
shall not disclose or give information regarding the affairs of
the Company to any other person.
g) Mr. Jaymin B. Desai shall not after the termination of this
agreement represent himself as being in any way connected
with or interested in the business of the Company.
h) The Company shall be entitled to terminate the Agreement
in the event of Mr. Jaymin B. Desai found guilty of misconduct
or negligence in the discharge of his duties.
i) Mr. Jaymin B. Desai shall cease to be a Managing Director
of the Company if he ceases, for whatever reason, to be a
Director of the Company.
j) Either party shall be entitled to terminate the Agreement by
giving the other party not less than three calendar months
notice in writing without showing any cause.
k) This agreement supersedes all prior agreements,
arrangements or understandings whether oral or in writing.
The Board recommends Resolution at Item No.4 as a Special
Resolution for approval of the members.
None of the Directors or Key Managerial Personnel or
relatives of directors and KMP except Mr. Jaymin Desai is
concerned or interested in the Resolution at Item No.4 of the
Notice relating to his own appointment.
Further following additional information as required under
Section II of Part II of Schedule V to the Companies Act, 2013
is given below.
I. General Information:
1) Nature of Industry: Manufacturing Industry - Plastics
2) Date or expected date of Commencement of
Commercial production:
The Company has been in the business for many years
3) In case of new companies, expected date of
commencement of activities as per project approved
by financial institutions appearing in the prospectus:
Not Applicable
5) Foreign investments or collaborations, if any :
The Company has not entered into any foreign collaborations.
The Company has not made any foreign investments.
II. Information about the appointee:
1) Background details:Name: Mr. Jaymin B. Desai
Designation: Managing Director
Father's name: Balwantrai Desai
Nationality: Indian
Date of Birth: 30.09.1960
Qualifications: B.E (Chemical)
2) Experience: Over 30 years
3) Past remuneration: The gross remuneration paid to him
in the year 2017-2018 was Rs.75.63 lacs per annum.
4) Recognition or awards : Nil
5) Job profile and his suitability: The Managing Director
shall be responsible for the management of the whole of
the affairs of the Company and to do all acts and things,
which in the ordinary course of business, he considers
necessary or proper or in the interest of the Company.
Considering the above and having regard to age,
qualifications, ability and experience and looking to the
business requirement the proposed remuneration is in the
interest of the Company.
6) Remuneration proposed: As mentioned above.
7) Comparative remuneration profile with respect to
industry, size of the company, profile of the position
and person (in case of expatriates the relevant details
would be with respect to the country of his origin) :
Taking into consideration the size of the Company, the
profile of Mr. Jaymin Desai, his Responsibilities and the
industry benchmarks, the remuneration proposed to be
paid is commensurate with the remuneration packages
2015-2016 2016-2017 2017-2018
Turnover 93,08,27,218 96,14,05,650 99,04,97,480
Net profit (as per profit
& loss account) 2,32,74,132 1,96,74,985 2,97,37,813
Amount of Dividend paid 45,00,000 36,00,000 45,00,000
Rate of Dividend declared 15% 12% 15%
Annual Report 2017 - 2018
9
Ecoplast Limited
10
paid to similar senior level counterpart(s) in other
companies.
8) Pecuniary relationship directly or indirectly with the
company or relationship with the managerial
personnel, if any :
Besides the remuneration proposed to be paid to him, Ms.
Jaymin Desai or any of his relatives do not have any other
pecuniary relationship with the Company or relationship
with the managerial personnel.
III. Other Information:
1) Reasons of loss or Inadequate profits:
Volatility in raw material prices and shrinkages in margins
due to cut throat competition.
2) Steps taken or proposed to be taken for improvement:
Modification in the existing plants will help to increase the
production which will help to achieve higher volume.
3) Expected increase in productivity and profits in
measurable terms etc: With above steps profitability is
expected to increase by 7 %.
IV. Disclosures:
The information and disclosures of the remuneration
package of the managerial personnel have been
mentioned in the "Corporate Governance Section" of
Directors Report under the heading "Remuneration paid /
payable to Managing Director for the year ended 31st
March, 2018.
Item Nos. 5 & 6:
Securities and Exchange Board of India (SEBI) has vide its
Notification No. SEBI/LAD-NRO/GN/2018/10 dated May 09,
2018 issued the SEBI (Listing Obligations and Disclosures
Requirement) (Amendment) Regulation, 2018 ("the
Amendment Regulations") which brought amendment in the
SEBI (Listing Obligations and Disclosures Requirement)
Regulation, 2015 ("the Listing Regulations") to be made
effective from April 01, 2019, save as otherwise specifically
provided for in the Amendment Regulations. One of the said
amendments requires the listed entities to avail approval of
shareholders by way of Special Resolution to appoint or
continue the directorship of non-executive Directors who have
attained the age of seventy-five years. This amendment is
going to be effective from April 01, 2019.
Mr. D.T. Desai, Non-Executive Director of the Company, has
already attained the age of seventy five years. Further, Mr.
J.A. Moos, a Non-Executive Director of the Company would
be attaining age of seventy five years in the month of May,
2019. As per the original shareholders' approval, the
Appointment of Mr. D.T. Desai is valid till September 11, 2020,
whereas appointment of Mr. J.A. Moos is valid till September
19, 2019 ("Original Term") in terms of the provisions of the
Companies Act, 2013.
The Board feels that the skills, expertise and vast experience
of Mr. D.T. Desai and Mr. J.A. Moos, would continue to help the
Company in its growth path. The Board upon the
recommendation of Nomination and Remuneration
Committee decided to seek the approval of shareholders at
the ensuing Annual General Meeting in terms of the provisions
of the Amendment Regulations for continuation of the
directorships of above said Directors post March 31, 2019 till
their respective Original Term of appointment.
Accordingly, The Board recommends the Special
Resolutions, as set out at Item No. 5& 6 of the accompanying
Notice, for approval by the Members.
None of the Directors and Key Managerial Personnel of the
Company and their relatives, except Mr. D.T. Desai and Mr.
J.A. Moos and their relative(s), is in any way concerned or
interested (financially or otherwise), in the proposed
respective Special Resolutions set out at Item No. 5&6 of the
Notice.
By Order of the Board
For Ecoplast Limited
Registered Office:
National Highway No. 8,
Water Works Cross Road,
Abrama, Valsad - 396002,
Gujarat
CIN: L25200GJ1981PLC004375
Tel: (02632) 226157
E-mail : [email protected],
Website : www.ecoplastindia.com
Mumbai, 28th May 2018
Antony Alapat
Company Secretary
Details of Director Seeking Appointment/Re-appointment at the Annual General Meeting
Particulars
DIN
Date of Birth
Age
Date of First Appointment on the Board
Qualifications
Expertise in specific functional areas
Directorships held in other public companies (excluding foreign
companies and Section 8 companies)
Memberships / Chairmanships of committees of other public
companies (includes only Audit Committee and Stakeholders'
Relationship Committee.)
Number of shares held in the Company as on 31st March 2018.
Number of meetings of the board attended during the year
Remuneration drawn and relationship with other directors and key
managerial personnel
Ms. Charulata Patel Mr. Jaymin Desai
00233935
13/07/1963
54
08/11/2014
MBBS
Hospital Administration,
Human Resource
Development and Public
Relations
Nil
Nil
3,83,911
4
Rs. 1.38 lacs in
FY 2017-18
No Relationship with
other directors and key
managerial personnel
00156221
30/09/1960
57
23/06/1990
B.E (Chemical)
Chemical Engineering,
Management
Nil
Nil
1,03,042
6
Rs.75.63 lacs in
FY 2017-18
No Relationship with
other directors and key
managerial personnel
Annual Report 2017 - 2018
11
Route Map of the Venue of AGM
The Club Resort is located on the bank of River Wanki,
Opposite Vashier Valley.
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Ecoplast Limited
12
(Rs.'000)
31-03-2018 31-03-2017 31-03-2016 31-03-2015 31-03-2014
OPERATION
Sales (Net) 9,59,348 9,61,406 9,30,827 9,41,018 8,19,840
Other Income 16,144 10,352 3,359 3,560 2,254
Operating Profit 65,179 50,522 53,530 41,116 41,576
[Before Depreciation)
Profit before tax 46,968 32,665 36,746 22,832 26,975
Profit after Tax (including prior period items) 30,084 21,191 23,274 15,090 18,557
Dividend and Corporate Tax thereon 4,333 - 5,416 4,320 4,184
Retained earnings 25,751 21,191 17,858 10,770 14,373
Earnings per Share (Rs..) 9.91 7.69 7.76 5.03 6.19
[On Face Value of Rs.10/-]
ASSETS
Gross Block 3,42,293 3,31,717 2,92,319 2,77,648 2,86,475
Net Block 1,23,869 1,26,635 1,05,418 1,07,531 1,14,833
Net Current Assets 1,10,484 94,904 1,75,149 87,735 61,019
Non Current Investments 23,025 22,923 8,176 8,176 8,176
Long Term Loans & Advances 42,653 36,966 47,793 43,238 46,397
Total Assets 3,00,031 2,81,429 3,36,536 2,46,680 2,30,425
NET WORTH
Equity Capital 30,000 30,000 30,000 30,000 30,000
Reserves and Surplus 2,37,096 2,11,345 1,90,019 1,72,161 1,63,365
Net worth 2,67,096 2,41,345 2,20,019 2,02,161 1,93,365
Book value per share (Rs..) 89.03 80.45 73.34 67.39 64.46
[On Face Value of Rs.10/-]
BORROWINGS
Long Term 18,706 30,573 22,608 32,262 21,961
Short Term 74,117 98,267 72,555 84,517 1,23,422
92,823 1,28,839 95,163 1,16,780 1,45,383
RATIOS
Profit before tax to
Sales and other Income % 4.81 3.36 3.93 2.42 3.28
Profit before tax to
Net Worth % 17.58 13.53 16.70 11.29 13.95
Dividend to Equity Capital % 15 12 15 12 12
Dividend to Net Worth [Yield] % 2 - 2 2 2
Return on Capital Employed % 26 26 26 21 25
Dividend cover Times 6.94 - 4.30 3.49 4.44
Current Ratio Ratio 1.61:1 1.45:1 1.54:1 1.45:1 1.25:1
Long Term Debt:Equity Ratio 0.07:1 0.13:1 0.10:1 0.16:1 0.11:1
F I N A N C I A L H I G H L I G H T S
Annual Report 2017 - 2018
13
Sr.No.
DISCLOSURE OF DETAILS OF MEETINGS OF BOARD OF DIRECTORS HELDAND ATTENDED BY DIRECTORS AS REQUIRED UNDER SECRETARIAL STANDARD 1(SS-1).
MEETING OF THE BOARD OF DIRECTORSth thThe dates of the meeting were 08th April 2017, 22nd May 2017,29th June 2017, 27 August 2017, 27 November 2017,
th th13 February 2018, 17 March 2018
Name of Director No. of Board Meetings attended
1. Pheroze P. Kharas 4
2. Bhupendra M. Desai 7
3. Charulata N.Patel 4
4. Dhananjay T. Desai 4
5. Jehangir A. Moos 6
6. Jaymin B. Desai 6
7. Mukul B. Desai 7
AUDIT COMMITTEE MEETINGth thThe dates of the meeting were 08th April 2017, 22nd May 2017,29th June 2017, 27 August 2017, 27 November 2017,
th13 February 2018
Sr.No. Name of Director No. of Board Meetings attended
1. Mukul B. Desai 6
2. Bhupendra M. Desai 6
3. Jehangir A. Moos 5
4. Pheroze P. Kharas 4
NOMINATION & REMUNERATION COMMITTEE MEETING
The dates of the meeting were 22nd May 2017
Sr.No. Name of Director No. of Board Meetings attended
1. Mukul B. Desai 1
2. Bhupendra M. Desai 1
3. Jehangir A. Moos 1
4. Pheroze P. Kharas 1
STAKEHOLDERS RELATIONSHIP COMMITTEE MEETING
The date of the meeting was 22nd May 2017
Sr.No. Name of Director No. of Board Meetings attended
1. Pheroze P. Kharas 1
2. Jehangir A. Moos 1
3. Mukul B. Desai 1
INDEPENDENT DIRECTORS MEETING
The date of the meeting was 13th February 2018
Sr.No. Name of Director No. of Board Meetings attended
1. Mukul B. Desai 1
2. Jehangir A. Moos 1
3. Bhupendra M. Desai 1
4. Dhananjay T. Desai 1
Ecoplast Limited
14
BOARD'S REPORTToThe Members,
.
1. FINANCIAL SUMMARY (in Rs.)
31-03-2018 31-03-2017
Net Sales 99,04,97,480 106,91,91,166
Other Income 1,61,43,679 10,351,958
Sales and Other Income 100,66,41,159 1,079,543,124
Operating Profit(before Depreciation and Tax) 65,178,974 50,522,060
Less : Depreciation 18,210,873 17,857,267
Profit before tax 4,69,68,101 46,968,101
Less :Provision for tax
Current Tax 1,67,57,000 89,33,000
Deferred tax Credit 473,288 605,456
Profit after Tax 2,97,37,813 2,30,04,755
Short Provision of Taxfor Prior Years 60,791
Net Profit after priorperiod items 2,97,37,813 2,30,65,546
Add : Balance broughtforward 212133393 193054428
Profit available forAppropriation 24,18,71,206 212,133,393
The Directors are pleased to present their Thirty-Sixth Annual Report and Audited Financial Statements for the year ended
st31 March, 2018
the year ended 31 March 2018 and in particular, Sales, absolute expenses, elements of Working Capital (Inventories, Trade payable, other current assets/current liabilities etc.) and ratios in percentage of sales, are not comparable with the figures of the previous year.
3. Operations/State of Company's Affairs
During the year under review, sales volume has increased by marginally 0.45% while sales value has been reduced by 8% to Rs 99,04,97,480/- from Rs 106,91,91,166/- in the previous year.
The profit before tax has increased by 43.79% to Rs. 4,69,68,101/- from Rs. 3,26,64,793/- in the previous year.
During the year under review availability of raw materials was comfortable however volatility in Exchange rate and upward phase in crude price will reflect in Raw Material Price which may put pressure on margins during current year however with more domestic capacity commissioned, Raw Material availability is expected to be stable during current year.
No Material Changes have occurred from the end of the Financial Year till the date of this report affecting the Financial Position of the Company.
There is no Change in the nature of business during the year under review.
No significant and material orders have been passed by the regulators or Courts or Tribunals impacting the going concern status and the company's operations in future during the year under review.
4. DIVIDEND
The Board of Directors have recommended a dividend of Rs.1.5 per equity share (15%) for the year 2017-18.(Previous year Rs.1.2 per equity share 12 %) for approval at the Annual General Meeting. The dividend if approved, will result in a cash outflow of Rs54.16 lacs (including dividend distribution tax of Rs. 9.16 ) as compared to Rs. 43.33 lacs including dividend distribution tax of 7.33 lacs in previous year.
5. BOARD MEETINGS:
The Board of Directors met Seven times during the Financial Year 2017-18.
6. DIRECTORS AND KEY MANANGERIAL PERSONNEL :
Mr. Pheroze Kharas, Director / Chairman, retired by rotation at the last Annual General Meeting held on 20th September 2017. The Board places on record its sincere appreciation for the assistance and guidance provided by him during his tenure as Director of the Company.
The Board at its meeting held on 27th November, 2017 has appointed Mr. Mukul B. Desai, Director as Chairman of the Company with effect from 27th November 2017.
Mrs. Charulata Patel, Director of the Company, would retire by rotation, at the ensuing Annual General Meeting and being eligible offers herself for re-appointment
The members at the 33rd Annual General Meeting held on 12th September 2015 had approved the appointment of Mr.
2. Adoption of Indian Accounting Standards (Ind AS)
The Company has adopted Indian Accounting Standards (Ind AS) notified by the Ministry of Corporate Affairs with effect from 1st April, 2017, with a transition date of 1st April, 2016. Ind AS 101 - First time adoption of Indian Accounting Standards requires that all Ind AS's and interpretations that are issued an effective be applied retrospectively and consistently for all financial years presented.
The adoption of Ind AS and introduction of GST with effect from 1st, July 2017 has resulted in lower reporting of sales in the current year in comparison to the sales reported under the pre-GST/pre Ind AS structure of indirect taxes. With the change in structure of indirect taxes, expenses are also being reported net of taxes. Accordingly, Financial statements for
Annual Report 2017 - 2018
15
Jaymin Desai as Managing Director of the Company for a period of 3 years from 1st October, 2015 to 30th September, 2018. The Board Proposes to re-appoint him as the Managing Director for a further period of 3 years i.e from 1st October, 2018 to 30th September, 2021 at the ensuing Annual General Meeting.
SEBI vide its Notification No. SEBI/ LAD-NRO/ GN/ 2018/ 10 dated May 09, 2018 has notified SEBI (Listing Obligations and Disclosures Requirement) (Amendment) Regulation, 2018,In which there is a provision that Non Executive Director above the age of 75 years will be appointed or continued only after passing special resolution.
Considering their vast expertise and knowledge, The Board proposes continuation of Mr. Dhananjay T Desai , age 75 and Mr. Jehangir A. Moos, age 74 till their original tenure of directorship i.e 11th September, 2020 and 19th September, 2019.
7. DECLARATION FROM INDEPENDENT DIRECTORS
The Company has received necessary declarations from each Independent Director of the Company under Section 149(7) of the Companies Act, 2013 that the Independent Directors of the Company meet the criteria of their Independence laid down in Section 149(6) of the Act and there has been no change in the circumstances which may affect their status as independent director during the year. In the opinion of the Board, the Independent directors possess appropriate balance of skills, experience and knowledge, as required.
8. AUDIT COMMITTEE
The Audit Committee of the company consists of following members.
I. Mr. Mukul Desai-Chairman
II. Mr. Jehangir Moos
III. Mr. Bhupendra Desai
9. POLICY ON DIRECTORS' APPOINTMENT AND REMUNERATION AND CRITERIA FOR INDEPENDENT DIRECTORS
The Remuneration Policy for directors and senior management and the Criteria for selection of candidates for appointment as directors, independent directors, senior management are placed on the website of the Company weblink < http://www.ecoplastindia.com/ Remuneration Policy for directors and senior management.html>
There has been no change in the policies since the last fiscal year.
We affirm that the remuneration paid to the directors is as per the terms laid out in the remuneration policy of the Company
10. VIGIL MECHANISM
The Company is committed to adhere to the highest standards of ethical, moral and legal conduct of business operations. To maintain these standards, the Company encourages its employees who have concerns about suspected misconduct to come forward and express these
concerns without fear of punishment or unfair treatment. A Vigil (Whistle Blower) mechanism formulated by the Company provides a channel to the employees and Directors to report to the management concerns about unethical behaviour, actual or suspected fraud or violation of the Codes of conduct or policy. The mechanism provides for adequate safeguards against victimization of employees and Directors to avail of the mechanism and also provide for direct access to the Managing Director/ Chairman of the Audit Committee in exceptional cases.
11. DIRECTOR'S RESPONSIBILITY STATEMENT:
In pursuance of section 134 (5) of the Companies Act, 2013, the Directors hereby confirm that:
(a) in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;
(b) the directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit and loss of the company for that period;
(c) the directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;
(d) the directors have prepared the annual accounts on a going concern basis; and
(e) the directors, have laid down internal financial controls to be followed by the company in consultation with the experts and that such internal financial controls are adequate and were operating effectively.
(f) the directors have devised proper systems in consultation with the experts to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
12. DETAILS OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS
The Company has a proper and adequate system of internal financial controls commensurate with its nature and size of business and meets the following objectives:
v Providing assurance regarding the effectiveness and efficiency of operations;
v Efficient use and safeguarding of resources;
v Compliance with policies, procedures and applicable laws and regulations; and
v Transactions being accurately recorded and reported timely.
v The Company has a budgetary control system to monitor expenditures and operations against budgets on an ongoing basis.
Ecoplast Limited
16
i. Guarantees: Rs.4,06,50,497 /- to Bank & Financial Institution for the Loans advanced to Synergy Films Private Limited Wholly Owned Subsidiary.
ii. Investments; Rs.2,30,25,048/-(Before Ind As Adjustment it was Rs.81,76,257) for 11,95,360 Equity Shares of Rs.10 each fully paid up in Synergy Films Private Limited Wholly Owned Subsidiary
21. RISK MANAGEMENT POLICY :
The Company has adopted a Risk Management Policy which is implemented throughout the Organisation; Special Emphasis on Risk Management is given during the Annual Budgeting Process and Periodical Monthly Meetings.
22. CORPORATE SOCIAL RESPONSIBILTY POLICY :
The Provisions of Corporate Social Responsibility under section 135 of the Companies Act, 2013 are not applicable to the company. However as a part of CSR initiative, The Company has adopted 15 Mentally Challenged Children who are under rehabilitation in Jaina anupam N.Parmar Charitable Trust, Valsad.
23. RELATED PARTY TRANSACTIONS
Particulars of Contracts or Arrangements with Related parties referred to in Section 188(1) in Form AOC- 2 are annexed as Annexure - V to this Report.
24. FORMAL ANNUAL EVALUATION:
An annual evaluation of the Board's own performance, Board committees and individual directors was carried out pursuant to the provisions of the Act in the following manner:
v The Internal Auditor also regularly reviews the adequacy of internal financial control system.
13. SUBSIDIARY COMPANY
A Statement Containing the Salient features of the Financial Statements of the subsidiary Company is annexed as Annexure- I as a part of this Report.
During the year under review, No Company has become or ceased to be Company's subsidiary, joint venture or associate company.
Further, pursuant to the provisions of Section 136 of the Act, the financial statements of the Company along with relevant documents and separate audited accounts in respect of the subsidiary are available on the website of the Company.
14. EXTRACT OF ANNUAL RETURN:
As provided under sub Section (3) of Section 92 of the Act, the extract of annual return in Form MGT-9 is enclosed, which forms part of the directors' report as Annexure II
15. AUDITORS:
At the 35th Annual General Meeting of the Company held on 20th day of September, 2017, M/s. Y.B. Desai & Associates, Chartered Accountants, Surat, (ICAI Registration No. 102368W) were appointed as the Auditors of the Company from the conclusion of 35th AGM till the conclusion of the 40th AGM of the Company to be held in the year 2022.
16. SECRETARIAL AUDIT:
Pursuant to the provisions of Section 204 and other applicable provisions, if any, of the Companies Act, 2013, M/s Parikh & Associates,Practising Company Secretaries were appointed as the Secretarial Auditors for auditing the secretarial records of the Company for the financial year 2017-2018.
Secretarial audit report as provided by M/s Parikh & Associates, Practising Company Secretaries is annexed to this Report as Annexure- III.
17. AUDITORS' REPORT AND SECRETARIAL AUDITORS' REPORT:
The Auditors' Report and Secretarial Auditors' Report do not contain any qualifications, reservations or adverse remarks.
18. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO:
Information in accordance with Clause (m) of Sub-section (3) of Section 134 of the Companies Act, 2013, read with the Companies (Accounts) Rules, 2014 is annexed to this Report as Annexure -IV.
19. DEPOSITS:
The Company has not accepted any deposits during the year under report.
20. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS:
As on 31st March 2018 the Company has provided the following Loans, Guarantees and Investments under section 186 of the Companies Act, 2013.
i. Loans :Rs.3,51,00,00/- to Synergy Films Private Limited Wholly Owned Subsidiary
1.
Performanceevaluation
performed by
Sr.No.
Performanceevaluation of
Criteria
Each Individualdirectors
Nomination andRemunerationCommittee
Attendance, Contribution to the Board and committee meetings like preparedness on the issues to be discussed, meaningful and constructive contribution and g u i d a n c e p r o v i d e d , k e y performance aspects in case of executive directors etc.
2. Independentdirectors;
Entire Board ofDirectorsexcluding thedirector who isbeing evaluated
A
.
ttendance, Contribution to the Board and committee meetings like preparedness on the issues to be discussed, meaningful and constructive contribution, and guidance provided etc
3. Board, and itscommittees
All directors B o a r d c o m p o s i t i o n a n d structure; effectiveness of Board processes, information and functioning, fulfillment of key responsibilities, performance of specific duties and obligations, timely flow of information etc.
The assessment of committees based on the terms of reference o f t h e c o m m i t t e e s a n d effectiveness of the meetings
Annual Report 2017 - 2018
17
30. MANAGEMENT DISCUSSION ANALYSIS
In terms of the provisions of Regulation 34 of the Securities
and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2017, the
Management's discussion and analysis is set out in this
Annual Report.
31. SECRETARIAL STANDARDS
The Directors have devised proper systems to ensure
compliance with the provisions of all applicable Secretarial
Standards issued by the Institute of Company Secretaries of
India and that such systems are adequate and operating
effectively.
32. ACKNOWLEDGMENT
The Directors wish to convey their appreciation to Customers,
Suppliers, Bankers, other Stakeholders and specially the
employees for their co-operation. The Directors also
appreciate the confidence reposed in the Management of the
Company by its shareholders.
For and on behalf of the Board of Directors
Mukul B. Desai
CHAIRMAN
DIN:00015126
Mumbai, 28th May 2018
25. PARTICULARS OF EMPLOYEES
Pursuant to Section 197 of the Act read with rule 5(1) of the
Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014 the particulars of employees are
annexed as Annexure - VI to this Report.
26. DISCLOSURE AS PER SEXUAL HARRASSMENT OF
WOMEN AT WORKPLACE (PREVENTION,PROHIBITION
AND REDRESSAL) ACT, 2013:
The Company has zero tolerance for sexual harassment at
workplace and has adopted a policy on prevention, prohibition
and Redressal of sexual harassment at workplace in line with
the provisions of Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013 and the
rules framed there under. During the financial year 2017-18,
the Company has not received any complaints on sexual
harassment.
27. LISTING WITH STOCK EXCHANGE:
The Company confirms that it has paid the Annual Listing
Fees for the year 2018-2019 to BSE where the Company's
Shares are listed.
28. INSIDER TRADING REGULATIONS AND CODE OF
DISCLOSURE
The Board of Directors has adopted the Code of Practices and
Procedures for Fair Disclosure of Unpublished Price Sensitive
Information and Code of Internal Procedures and Conduct for
Regulating, Monitoring and Reporting of Trading by Insiders in
accordance with the requirements of the SEBI (Prohibition of
Insider Trading) Regulation, 2015 and is available on our
website http://www.ecoplastindia.com/code-of-practices-
and-procedures.html
29. CORPORATE GOVERNANCE:
In terms of the Regulation 15(2) of Securities and Exchange
Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2017, The Company is not
required to comply with corporate governance provisions of
Securities and Exchange Board of India (Listing Obligations
and Disclosure Requirements) Regulations, 2017 during the
financial year 2017-18.
Details of Directors Remuneration as required under
Schedule V Part II, Section II (A) (IV) of Companies Act 2013 is
annexed as Annexure - VII to this Report.
Ecoplast Limited
18
Salient features of the Financial Statement of the Subsidiary Company
As at 31 March,2018
As at 31 March,2017
1) Name of Subsidiary Company : Synergy Films Private Limited
2) Reporting Currency : INR
3) Capital : Rs. 1,19,53,600 1,19,53,600
4) Reserves : Rs. 2,608,019 (4,549,595)
5) Total Assets : Rs. 47,239,931 57,599,749
6) Total Liabilities : Rs. 47,239,931 57,599,749
7) Investments : Rs. - -
8) Turnover / Total Income : Rs. 113,363,644 132,165,455
9) Profit Before Tax : Rs. 6,566,225 5,751,161
10) Provision for Taxation : Rs. (591,390)
11) Profit After Tax : Rs. 7,157,615 5,751,161
12) Proposed Dividend : Rs. Nil Nil
13) Country : INDIA
ANNEXURE – I
Annual Report 2017 - 2018
19
I. REGISTRATION AND OTHER DETAILS:
i) CIN:- L25200GJ1981PLC004375
ii) Registration Date:7th May 1981
iii) Name of the Company: ECOPLAST LIMITED
iv) Category / Sub-Category of the Company:
a) Category: Public Company
b) Sub Category: Limited by Shares
Company having Share Capital
v) Address of the Registered office and contact details:
Registered Office Address: National Highway No 8, Water Work Cross Road,
Abrama, Valsad-396001, Gujarat.
Tel. : 02632-226157 / 226560,
Fax. : 02632-253633
Email : [email protected]
Website : www.ecoplastindia.com
vi) Whether listed company Yes
vii) Name, Address and Contact details of Registrar and Transfer Agent:
Name : TSR Darashaw Ltd
Address: 6-10, Haji Moosa Patrawala Industrial Estate, 20 Dr. E Moses Road,
Mahalaxmi, Mumbai-400011, Maharashtra.
Sr.No.
Name and Descriptionofmain products / services
NIC Code of theProduct/ service
% to total turnoverof the company
Manufacture of semi-finished of plastic products(plastic plates, sheets, blocks, film, foil, strip etc.)
Manufacturing, Processing and Selling ofCo extruded Multilayer Polyethylene films
1. 22201 100%
III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES
Sr.No.
Name and Addressof the Company
1.Subsidiary 100% 2(87)(ii)
CIN/GLNHolding/ Subsidiary /
Associate% of shares
heldApplicable
Section
Synergy FilmsPrivate Limited
U25206AS2007PTC008292
ANNEXURE –II
Annual Return Extracts in MGT 9
Form No. MGT-9
EXTRACT OF ANNUAL RETURNstas on the financial year ended on 31 March 2018
[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the
Companies (Management and Administration) Rules, 2017]
II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
All the business activities contributing 10 % or more of the total turnover of the company shall be stated:-
Ecoplast Limited
20
IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)
i) Category-wise Share Holding
Category ofShareholders
No. of Shares held at the beginningof the year 01.04.2017
No. of Shares held at the endof the year 31.03.2018
Demat Physical Total
%Changeduring
the yearDemat Physical Total% of Total
Shares% of Total
Shares
(A) Promoters
(1) Indian
(a) Individuals / HUF 1,473,175 0 1,473,175 49.11% 1,489,924 0 1,489,924 49.66% 0.56%
(b) Cental Government 0 0 0 0.00% 0 0 0 0.00% 0.00%
(c) State Governments(s) 0 0 0 0.00% 0 0 0 0.00% 0.00%
(d) Bodies Corporate 513,267 0 513,267 17.11% 513,267 0 513,267 17.11% 0.00%
(e) Financial Institutions / Banks 0 0 0 0.00% 0 0 0 0.00% 0.00%
(f) Any other (specify) 0 0 0 0.00% 0 0 0 0.00% 0.00%
Sub-Total (A) (1) 1,986,442 0 1,986,442 66.21% 2,003,191 0 2,003,191 66.77% 0.56%
(2) Foreign 0 0.00% 0 0.00% 0.00%
(a) Non-Resident Individuals 0 0 0 0.00% 0 0 0 0.00% 0.00%
(b) Other Individuals 0 0 0 0.00% 0 0 0 0.00% 0.00%
(c) Bodies Corporate 0 0 0 0.00% 0 0 0 0.00% 0.00%
(d) Banks / FI 0 0 0 0.00% 0 0 0 0.00% 0.00%
(e) Any Other (specify) 0 0 0 0.00% 0 0 0 0.00% 0.00%
Sub-Total (A) (2) 0 0.00% 0 0.00% 0.00%
Total Shareholding of
Promoter (A) = (A)(1)+(A)(2) 1,986,442 0 1,986,442 66.21% 2,003,191 0 2,003,191 66.77% 0.56%
(B) Public Shareholding
(1) Institutions
(a) Mutual Funds 0 0 0 0.00% 0 0 0 0.00% 0.00%
(b) Financial Institutions / Banks 0 0 0 0.00% 0 0 0 0.00% 0.00%
(c) Cental Government 0 0 0 0.00% 0 0 0 0.00% 0.00%
(d) State Governments(s) 0 0 0 0.00% 0 0 0 0.00% 0.00%
(e) Venture Capital Funds 0 0 0 0.00% 0 0 0 0.00% 0.00%
Annual Report 2017 - 2018
21
Category ofShareholders
No. of Shares held at the beginningof the year 01.04.2017
No. of Shares held at the endof the year 31.03.2018
Demat Physical Total
%Changeduring
the yearDemat Physical Total% of Total
Shares% of Total
Shares
(f) Insurance Companies 0 0 0 0.00% 0 0 0 0.00% 0.00%
(g) Foreign Institutional Investors 3090 0 3090 0.10% 0 0 0 0.00% -0.10%
(h) Foreign Venture Capital Funds 0 0 0 0.00% 0 0 0 0.00% 0.00%
(i) Any Other (Specify) 0 0 0 0.00% 0 0 0 0.00% 0.00%
Sub-Total (B) (1) 3090 0 3090 0.10% 0 0 0 0.00% -0.10%
(2) Non-Institutions 0.00%
(a) Bodies Corporate
i) Indian 73,817 7,201 81,018 2.70% 59,966 5,800 65,766 2.19% -0.51%
ii) Overseas 0 0 0 0.00% 0 0 0 0.00% 0.00%
(b) Individuals
(i) Individual Shareholders
holding nominal Share
Capital upto Rs.1 Lakh 578,038 122,200 700,238 23.35% 553,195 85,500 638,695 21.29% -2.06%
(ii) Individual Shareholders holding
nominal Share Capital in
excess of Rs.1 Lakh 215,780 0 215,780 7.19% 246,772 0 246,772 8.23% 1.03%
(c) Any Other : Bodies Corp -NBFC 3,282 0 3,282 0.11% 0 0 0 0.00% -0.11%
(i) Directors & their relatives 0 0 0 0.00% 35,326 0 35,326 1.18% 1.18%
Sub-total (B) (2) 10,150 0 10,150 0.34% 10,250 0 10,250 0.34% 0.00%
Total Public Shareholding
(B) = (B)(1)+(B)(2) 881,067 129,401 1,010,468 33.68% 905,509 91,300 996,809 33.23% -0.45%
TOTAL (A)+(B) 884,157 129,401 1,013,558 33.79% 905,509 91,300 996,809 33.23% -0.56%
(C) Shares held by Custodians
Custodian for GDRs & ADRs 2,870,599 129,401 3,000,000 100.00% 2,908,700 91,300 3,000,000 100.00% 0.00%
GRAND TOTAL (A)+(B)+(C) 0 0 0 0.00% 0 0 0 0.00% 0.00%
Ecoplast Limited
22
ii) Shareholding of Promoters
Shareholding at the beginningof the year 01.04.2017
Shareholding at the endof the year 31.03.2018
No. ofShares
1 Bhupendra Bhikhubhai Desai 8,640 0.29 8,640 0.29 0.00
2 Nilay Nitinkumar Patel 11,565 0.39 11,565 0.39 0.00
3 Pheroze Pestonji Kharas 81,980 2.73 61,980 2.07 -0.67
4 Kunal Plastics Private Limited 36,440 1.21 36,440 1.21 0.00
5 Silver Stream Properties
Private Limited 476,827 15.89 476,827 15.89 0.00
6 Amita Jaymin Desai 541,846 18.06 542,146 18.07 0.01
7 Charulata Nitinbhai Patel 383,911 12.80 383,911 12.80 0.00
8 Indumati Balvantrai Desai 128,137 4.27 128,137 4.27 0.00
9 Jankee J Desai 34,320 1.14 47,116 1.57 0.43
10 Jaymin Balvantrai Desai 103,042 3.43 103,042 3.43 0.00
11 Jaymin Balvantrai Desai ( Huf ) 6,176 0.21 6,176 0.21 0.00
12 Naheed Rushad Divecha 0 0.00 0 0.00 0.00
13 Nargis Pheroze Kharas 23,400 0.78 23,400 0.78 0.00
14 Nitinkumar Manubhai Patel 96,461 3.22 118,061 3.94 0.72
15 Stuti J Desai 42,412 1.41 47,116 1.57 0.16
16 Yasmin Karl Divecha 5,423 0.18 0 0.00 -0.18
17 Aditya Nitinkumar Patel 5,862 0.20 8,634 0.29 0.09
Total 1,986,442 66.21 2,003,191 66.77 0.56
Sr. No. Shareholder's Name
% changein shareholdingduring
the year
% of totalSharesof the
company
No. ofShares
% of SharesPledged /
encumberedto totalshares
% of totalSharesof the
company
% of SharesPledged /
encumberedto totalshares
Annual Report 2017 - 2018
23
iii) Change in Promoter's Shareholding (please specify, if there is no change)
Shareholding at the beginningof the year 01.04.2017
No. ofShares
1 Amita Jaymin Desai 01-Apr-2017 At the beginning of the year 5,41,846 18.06% 5,41,846 18.06%
21-Jul-2017 Increase 300 0.01% 542,146 18.07%
31-Mar-2018 At the end of the year 542,146 18.07% 542,146 18.07%
2 Silver Stream Properties LLP 01-Apr-2017 At the beginning of the year 4,76,827 15.89% 4,76,827 15.89%
No Change in Shareholding
31-Mar-2018 At the end of the year 4,76,827 15.89% 4,76,827 15.89%
3 Charulata Nitin Patel 01-Apr-2017 At the beginning of the year 3,83,911 12.80% 3,83,911 12.80%
No Change in Shareholding
31-Mar-2018 At the end of the year 3,83,911 12.80% 3,83,911 12.80%
4 Indumati Balvantrai Desai 01-Apr-2017 At the beginning of the year 1,28,137 4.27% 1,28,137 4.27%
No Change in Shareholding
31-Mar-2018 At the end of the year 1,28,137 4.27% 1,28,137 4.27%
5 Jaymin Balvantrai Desai 01-Apr-2017 At the beginning of the year 1,03,042 3.43% 1,03,042 3.43%
No Change in Shareholding
31-Mar-2018 At the end of the year 1,03,042 3.43% 1,03,042 3.43%
6 Pheroze Pestonji Kharas 01-Apr-2017 At the beginning of the year 81,980 2.73% 81,980 2.73%
30-Mar-2018 Decrease -20,000 -0.67% 61,980 2.07%
31-Mar-2018 At the end of the year 61,980 2.07% 61,980 2.07%
7 Nitinkumar Manubhai Patel 01-Apr-2017 At the beginning of the year 96,461 3.22% 96,461 3.22%
21-Apr-2017 Increase 5,000 0.17% 101,461 3.39%
10-Nov-2017 Increase 500 0.02% 101,961 3.41%
17-Nov-2017 Increase 1,100 0.04% 103,061 3.44%
30-Mar-2018 Increase 15,000 0.50% 118,061 3.94%
31-Mar-2018 At the end of the year 118,061 3.94% 118,061 3.94%
8 Kunal Plastics Private Limited 01-Apr-2017 At the beginning of the year 36,440 1.21% 36,440 1.21%
No Change in Shareholding
Sr. No.
Name of theShare Holder Date Reason
Cumulative Shareholdingduring the year
No. ofShares
% of totalShares of the
company
% of totalShares of the
company
Ecoplast Limited
24
31-Mar-2018 At the end of the year 36,440 1.21% 36,440 1.21%
9 Nargis Pheroze Kharas 01-Apr-2017 At the beginning of the year 23,400 0.78% 23,400 0.78%
No Change in Shareholding
31-Mar-2018 At the end of the year 23,400 0.78% 23,400 0.78%
10 Stuti J Desai 01-Apr-2017 At the beginning of the year 42,412 1.41% 42,412 1.41%
12-Jan-2018 Increase 4,704 0.16% 47,116 1.57%
31-Mar-2018 At the end of the year 47,116 1.57% 47,116 1.57%
11 Nilay Nitinkumar Patel 01-Apr-2017 At the beginning of the year 11,565 0.39% 11,565 0.39%
No Change in Shareholding
31-Mar-2018 At the end of the year 11,565 0.39% 11,565 0.39%
12 Jankee J Desai 01-Apr-2017 At the beginning of the year 34,320 1.14% 34,320 1.14%
10-Nov-2017 Increase 12,796 0.43% 47,116 1.57%
31-Mar-2018 At the end of the year 47,116 1.57% 47,116 1.57%
13 Bhupendra B. Desai 01-Apr-2017 At the beginning of the year 8,640 0.29% 8,640 0.29%
31-Mar-2018 At the end of the year 8,640 0.29% 8,640 0.29%
14 Jaymin Balvantrai Desai (HUF) 01-Apr-2017 At the beginning of the year 6,176 0.21% 6,176 0.21%
No Change in Shareholding
31-Mar-2018 At the end of the year 6,176 0.21% 6,176 0.21%
15 Aditya Nitinkumar Patel 01-Apr-2017 At the beginning of the year 5,862 0.20% 5,862 0.20%
17-Nov-2017 Increase 1,100 0.04% 6,962 0.24%
30-Mar-2018 Increase 1,672 0.06% 8,634 0.29%
31-Mar-2018 At the end of the year 8,634 0.29% 8,634 0.29%
16 Yasmin Karl Divecha 01-Apr-2017 At the beginning of the year 5,423 0.18% 5,423 0.18%
06-Oct-2017 Increase 250 0.01% 5,673 0.19%
10-Nov-2017 Decrease -5,673 -0.19% 0 0.00%
31-Mar-2018 At the end of the year 0 0.00% 0 0.00%
Shareholding at the beginningof the year 01.04.2017
No. ofShares
Sr. No.
Name of theShare Holder Date Reason
Cumulative Shareholdingduring the year
No. ofShares
% of totalShares of the
company
% of totalShares of the
company
Annual Report 2017 - 2018
25
Shareholding at the beginningof the year 01.04.2017
No. ofShares
1 Vinay Rungta 01-Apr-2017 At the beginning of the year 60,901 2.03% 60,901 2.03%
07-Apr-2017 Increase 800 0.03% 61,701 2.06%
14-Apr-2017 Increase 300 0.01% 62,001 2.07%
21-Apr-2017 Increase 1,750 0.06% 63,751 2.13%
05-May-2017 Increase 700 0.02% 64,451 2.15%
12-May-2017 Increase 550 0.02% 65,001 2.17%
26-May-2017 Increase 8,000 0.27% 73,001 2.43%
02-Jun-2017 Increase 500 0.02% 73,501 2.45%
09-Jun-2017 Increase 84 0.00% 73,585 2.45%
16-Jun-2017 Increase 1,716 0.06% 75,301 2.51%
23-Jun-2017 Increase 950 0.03% 76,251 2.54%
30-Jun-2017 Increase 2,250 0.08% 78,501 2.62%
07-Jul-2017 Increase 3,116 0.10% 81,617 2.72%
14-Jul-2017 Increase 2,284 0.08% 83,901 2.80%
21-Jul-2017 Increase 600 0.02% 84,501 2.82%
28-Jul-2017 Increase 500 0.02% 85,001 2.83%
04-Aug-2017 Increase 3,000 0.10% 88,001 2.93%
25-Aug-2017 Increase 2,111 0.07% 90,112 3.00%
01-Sep-2017 Increase 289 0.01% 90,401 3.01%
29-Sep-2017 Increase 600 0.02% 91,001 3.03%
06-Oct-2017 Increase 1,427 0.05% 92,428 3.08%
27-Oct-2017 Increase 200 0.01% 92,628 3.09%
05-Jan-2018 Decrease -1,627 -0.05% 91,001 3.03%
12-Jan-2018 Decrease -1,000 -0.03% 90,001 3.00%
16-Feb-2018 Decrease -410 -0.01% 89,591 2.99%
23-Feb-2018 Increase 410 0.01% 90,001 3.00%
31-Mar-2018 At the end of the year 90,001 3.00% 90,001 3.00%
2 Investor Education And 01-Apr-2017 At the beginning of the year 0 0.00 0 0.00
Protection Fund Authority 01-Dec-2017 Increase 35,201 1.17% 35,201 1.17%
Sr. No.
Name of theShare Holder Date Reason
Cumulative Shareholdingduring the year
No. ofShares
% of totalShares of the
company
% of totalShares of the
company
iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs):
Ecoplast Limited
26
Ministry Of Corporate Affairs 22-Dec-2017 Increase 125 0.01% 35,326 1.18%
31-Mar-2018 At the end of the year 35,326 1.18% 35,326 1.18%
3 Byna Murali 01-Apr-2017 At the beginning of the year 0 0.00 0 0.00
23-Feb-2018 Increase 28,068 0.94% 28,068 0.94%
02-Mar-2018 Increase 3,932 0.13% 32,000 1.07%
31-Mar-2018 At the end of the year 32,000 1.07% 32,000 1.07%
4 Kalpesh Bhupendra Vora 01-Apr-2017 At the beginning of the year 30,843 1.03% 30,843 1.03%
04-Aug-2017 Decrease -301 -0.01% 30,542 1.02%
31-Mar-2018 At the end of the year 30,542 1.02% 30,542 1.02%
5 Mitesh Vora 01-Apr-2017 At the beginning of the year 25,532 0.85% 25,532 0.85%
31-Mar-2018 At the end of the year 25,532 0.85% 25,532 0.85%
6 M K Shroff 01-Apr-2017 At the beginning of the year 24,256 0.81% 24,256 0.81%
11-Aug-2017 Decrease -256 -0.01% 24,000 0.80%
18-Aug-2017 Decrease -500 -0.02% 23,500 0.78%
01-Sep-2017 Decrease -1,440 -0.05% 22,060 0.74%
29-Dec-2017 Increase 9,140 0.30% 31,200 1.04%
23-Feb-2018 Decrease -140 0.00% 31,060 1.04%
02-Mar-2018 Decrease -4,164 -0.14% 26,896 0.90%
09-Mar-2018 Decrease -2,660 -0.09% 24,236 0.81%
16-Mar-2018 Decrease -2,950 -0.10% 21,286 0.71%
31-Mar-2018 At the end of the year 21,286 0.71% 21,286 0.71%
7 Kalpana Prakash Pandey 01-Apr-2017 At the beginning of the year 0 0.00 0 0.00
10-Nov-2017 Increase 4,586 0.15% 4,586 0.15%
17-Nov-2017 Increase 6,725 0.22% 11,311 0.38%
24-Nov-2017 Increase 3,722 0.12% 15,033 0.50%
01-Dec-2017 Increase 3,852 0.13% 18,885 0.63%
31-Mar-2018 At the end of the year 18,885 0.63% 18,885 0.63%
8 Abhay Ratilal Jasani 01-Apr-2017 At the beginning of the year 18,416 0.61% 18,416 0.61%
31-Mar-2018 At the end of the year 18,416 0.61% 18,416 0.61%
9 Qamar Afroz Shaikh 01-Apr-2017 At the beginning of the year 18,000 0.60% 18,000 0.60%
Shareholding at the beginningof the year 01.04.2017
No. ofShares
Sr. No.
Name of theShare Holder Date Reason
Cumulative Shareholdingduring the year
No. ofShares
% of totalShares of the
company
% of totalShares of the
company
Annual Report 2017 - 2018
27
31-Mar-2018 At the end of the year 18,000 0.60% 18,000 0.60%
10 Saguna Finstock Pvt Ltd 01-Apr-2017 At the beginning of the year 12,500 0.42% 12,500 0.42%
31-Mar-2018 At the end of the year 12,500 0.42% 12,500 0.42%
11 Mmd Securities Pvt. Ltd. 01-Apr-2017 At the beginning of the year 20,000 0.67% 20,000 0.67%
07-Apr-2017 Decrease -150 -0.01% 19,850 0.66%
14-Apr-2017 Decrease -650 -0.02% 19,200 0.64%
21-Apr-2017 Decrease -1,015 -0.03% 18,185 0.61%
28-Apr-2017 Decrease -325 -0.01% 17,860 0.60%
19-May-2017 Decrease -775 -0.03% 17,085 0.57%
26-May-2017 Decrease -9,100 -0.30% 7,985 0.27%
16-Jun-2017 Decrease -50 0.00% 7,935 0.26%
23-Jun-2017 Decrease -500 -0.02% 7,435 0.25%
07-Jul-2017 Decrease -290 -0.01% 7,145 0.24%
21-Jul-2017 Increase 3 0.00% 7,148 0.24%
04-Aug-2017 Decrease -1,000 -0.03% 6,148 0.20%
08-Sep-2017 Increase 25,935 0.86% 32,083 1.07%
13-Oct-2017 Decrease -11,750 -0.39% 20,333 0.68%
17-Nov-2017 Decrease -1,275 -0.04% 19,058 0.64%
01-Dec-2017 Increase 401 0.01% 19,459 0.65%
09-Feb-2018 Decrease -445 -0.01% 19,014 0.63%
16-Feb-2018 Decrease -4,311 -0.14% 14,703 0.49%
23-Feb-2018 Decrease -400 -0.01% 14,303 0.48%
16-Mar-2018 Decrease -1,930 -0.06% 12,373 0.41%
31-Mar-2018 At the end of the year 12,373 0.41% 12,373 0.41%
12 Varghese Daniel 01-Apr-2017 At the beginning of the year 4,944 0.16% 4,944 0.16%
14-Apr-2017 Increase 251 0.01% 5,195 0.17%
05-Jan-2018 Increase 805 0.03% 6,000 0.20%
12-Jan-2018 Increase 3,542 0.12% 9,542 0.32%
26-Jan-2018 Increase 1,168 0.04% 10,710 0.36%
31-Mar-2018 At the end of the year 10,710 0.36% 10,710 0.36%
Shareholding at the beginningof the year 01.04.2017
No. ofShares
Sr. No.
Name of theShare Holder Date Reason
Cumulative Shareholdingduring the year
No. ofShares
% of totalShares of the
company
% of totalShares of the
company
Ecoplast Limited
28
Shareholding at the beginningof the year 01.04.2017
No. ofShares
1. Jaymin Balvantrai Desai 01-Apr-2017 At the beginning of the year 1,03,042 3.43% 1,03,042 3.43%
No Change in Shareholding
31-Mar-2018 At the end of the year 1,03,042 3.43% 1,03,042 3.43%
2. Charulata Nitin Patel 01-Apr-2017 At the beginning of the year 3,83,901 12.80% 3,83,901 12.80%
No Change in Shareholding
31-Mar-2018 At the end of the year 3,83,901 12.80% 3,83,911 12.80%
3. Mukul B Desai 01-Apr-2017 At the beginning of year 9650 0.32% 9650 0.32%
No Change in Shareholding
31-Mar-2018 At the end of the year 9650 0.32% 9650 0.32%
4. Jehangir Adi Moos 01-Apr-2017 At the beginning of the year 500 0.02% 500 0.025
No Change in Shareholding
31-Mar-2018 At the end of the year 500 0.02% 500 0.02%
5. Bhupendra M. Desai 01-Apr-2017 At the beginning of the year 100 0.003% 100 0.003%
No Change in Shareholding
31-Mar-2018 At the end of the year 100 0.003% 100 0.003%
6. Pheroze Pestonji* Kharas 01-Apr-2017 At the beginning of the year 81,980 2.73% 81,980 2.73%
30-Mar-2018 Decrease -20,000 -0.67% 61,980 2.07%
31-Mar-2018 At the end of the year 61,980 2.07% 61,980 2.07%
7. Dhananjay Thakorbhai Desai 01-Apr-2017 At the beginning of the year 0 0.00 0 0.00
No Change in Shareholding
31-Mar-2018 At the end of the year 0 0.00 0 0.00
8. Mahadev Dhirubhai Desai 01-Apr-2017 At the beginning of the year 0 0.00 0 0.00
No Change in Shareholding
31-Mar-2018 At the end of the year 0 0.00 0 0.00
9. Antony Pius Alapat 01-Apr-2017 At the beginning of the year 0 0.00 0 0.00
No Change in Shareholding
31-Mar-2018 At the end of the year 0 0.00 0 0.00
Sr. No.
Name of theShare Holder Date Reason
Cumulative Shareholdingduring the year
No. ofShares
% of totalShares of the
company
% of totalShares of the
company
v) Shareholding of Directors and Key Managerial Personnel:
*Retired as a Director of the Company on 20th September 2017.
Annual Report 2017 - 2018
29
Indebtedness at the beginning of the financial year
i. Principal Amount 13,24,07,571 83,59,819 0 14,07,67,390
ii. Interest due but not paid
iii. Interest accrued but not due
Total (i+ii+iii) 13,24,07,571 83,59,819 0 14,07,67,390
Change in Indebtedness during the financial year
Addition 0 0 0 0
Reduction (3,56,56,580) (3,59,819) 0 (3,60,16,399)
Net Change (3,56,56,580) (3,59,819) 0 (3,60,16,399)
Indebtedness at the end of the financial year
i. Principal Amount 9,67,50,990 80,00,000 0 10,47,50,990
ii. Interest due but not paid 0 0 0 0
iii. Interest accrued but not due 0 0 0 0
Total (i+ii+iii) 9,67,50,990 80,00,000 0 10,47,50,990
Secured Loansexcludingdeposits
UnsecuredLoans Deposits
TotalIndebtedness
V. INDEBTEDNESS
Indebtedness of the Company including interest outstanding/accrued but not due for payment (in Rs.)
Ecoplast Limited
30
VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
A. Remuneration to Managing Director, Whole-time Directors and/or Manager:
1. Gross salary
(a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961 73,12,800
(b) Value of perquisites u/s 17(2) Income-tax Act, 1961 9,67,596
(c) Profits in lieu of salary under section 17(3) Income-tax Act, 1961 Nil
2. Stock Option Nil
3. Sweat Equity Nil
4. Commission -as of Profit- Nil
5. Others, please specify Nil
Total (A) 82,80,396
Ceiling as per the Act 1,06,68,000
Sr.No. Particulars of Remuneration
Managing Director
Jaymin Desai
Ÿ The Company doesn't have any Whole-time Director or Manager.
B. Remuneration to other directors:
Name of DirectorsTotal
Amount
3. Independent Directors Mukul Jehangir Bhupendra
Desai Moos Desai
Fee for attending board committee meetings 2,40,000 2,10,000 2,30,000 6,80,000
Commission 58,077 58,077 58,077 1,74,231
Others, please specify
Total (1) 2,98,077 2,68,077 2,88,077 8,54,231
4. Other Non-Executive Directors Pheroze Charulata
Kharas Patel
Fee for attending board committee meetings 1,40,000 80,000 2,20,000
Commission 58,077 58,077 1,16,154
Others, please specify
Total (2) 1,98,077 1,38,077 3,36,154
Total (B)=(1+2) 11,90,385
Total Managerial Remuneration 2,90,385
Overall Ceiling as per the Act 2,90,385
Sr.No. Particulars of Remuneration
Annual Report 2017 - 2018
31
C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGER/WTD
Sr.No. Particulars of Remuneration Key Managerial Personnel
Company SecretaryAntony. P. Alapat
CFOMahadev D. Desai Total
1. Gross salary
(a) Salary as per provisions contained in
section 17(1) of the Income-tax Act,1961 5,07,335 28,18,807 33,26,142
(b) Value of perquisites u/s
17(2) Income-tax Act,1961 Nil 2,32,844 2,32,844
(c) Profits in lieu of salary under section 17
(3) Income-tax Act, 1961 Nil Nil Nil
2. Stock Option Nil Nil Nil
3. Sweat Equity Nil Nil Nil
4. Commission as % of profit - others, specify... Nil Nil Nil
5. Others, please Specify Nil Nil Nil
Total 5,07,335 30,51,651 35,58,986
VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:
Type
Section of
the
Companie
Act
Brief
Description
Details of
Penalty /
Punishment/
Compounding fees
imposed
Authority
[RD / NCLT /
COURT]
Appea
lmade, if
any
(give
Details)
A. COMPANY
Penalty None
Punishment None
Compounding None
B. DIRECTORS
Penalty None
Punishment None
Compounding None
C. OTHER OFFICERS IN DEFAULT
Penalty None
Punishment None
Compounding None
Ecoplast Limited
32
ANNEXURE -III
FORM No. MR-3
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2018
(Pursuant to Section 204 (1) of the Companies Act, 2013 and
rule No. 9 of the Companies (Appointment and Remuneration
of Managerial Personnel) Rules, 2014)
To,
The Members,
Ecoplast Limited
We have conducted the secretarial audit of the compliance of
applicable statutory provisions and the adherence to good
corporate practices by Ecoplast Limited (hereinafter called
the Company). Secretarial Audit was conducted in a manner
that provided us a reasonable basis for evaluating the
corporate conducts/statutory compliances and expressing
our opinion thereon.
Based on our verification of the Company's books, papers,
minute books, forms and returns filed and other records
maintained by the Company, the information provided by the
Company, its officers, agents and authorised representatives
during the conduct of secretarial audit, the explanations and
clarifications given to us and the representations made by the
Management, we hereby report that in our opinion, the
Company has, during the audit period covering the financial
year ended on 31st March, 2018 generally complied with the
statutory provisions listed hereunder and also that the
Company has proper Board processes and compliance
mechanism in place to the extent, in the manner and subject to
the reporting made hereinafter:
We have examined the books, papers, minute books, forms
and returns filed and other records made available to us and
maintained by the Company for the financial year ended on
31st March, 2018 according to the provisions of:
(i) The Companies Act, 2013 (the Act) and the rules made
there under;
(ii) The Securities Contract (Regulation) Act, 1956 ('SCRA')
and the rules made there under;
(iii) The Depositories Act, 1996 and the Regulations and Bye-
laws framed there under;
(iv) Foreign Exchange Management Act, 1999 and the rules
and regulations made there under to the extent of Foreign
Direct Investment, Overseas Direct Investment and
External Commercial Borrowings;
(v) The following Regulations and Guidelines prescribed
under the Securities and Exchange Board of India Act,
1992 ('SEBI Act')
(a) The Securities and Exchange Board of India (Substantial
Acquisition of Shares and Takeovers) Regulations, 2011;
(b) Securities and Exchange Board of India (Prohibition of
Insider Trading) Regulations, 2015;
(c) The Securities and Exchange Board of India (Issue of
Capital and Disclosure Requirements) Regulations, 2009
(Not applicable to the Company during the audit period)
(d) The Securities and Exchange Board of India (Employee
Stock Option Scheme and Employee Stock Purchase
Scheme) Guidelines, 1999 and The Securities and
Exchange Board of India ( Share Based Employee
Benefits) Regulations, 2014;(Not applicable to the
Company during the audit period)
(e) The Securities and Exchange Board of India (Issue and
Listing of Debt Securities) Regulations,2008;(Not
applicable to the Company during the audit period)
(f) The Securities and Exchange Board of India (Registrars
to an Issue and Share Transfer Agents)Regulations, 1993
regarding the Companies Act and dealing with client; (Not
applicable to the Company during the audit period)
Annual Report 2017 - 2018
33
(g) The Securities and Exchange Board of India (Delisting of
Equity Shares) Regulations, 2009; (Not applicable to the
Company during the audit period)and
(h) The Securities and Exchange Board of India (Buyback of
Securities) Regulations, 1998; (Not applicable to the
Company during the audit period)
(vi) Other laws specifically applicable to the Company namely
(a) The Air (Prevention & Control of Pollution) Act, 1981
(b) Hazardous Waste (Management and Handling) Rules,
1989
(c) Plastic Waste Management Rules, 2017
We have also examined compliance with the applicable
clauses of the following:
(i) Secretarial Standards issued by The Institute of Company
Secretaries of India with respect to board and general
meetings.
(ii) The Listing Agreement entered into by the Company with
BSE Limited read with the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015.
During the period under review, the Company has complied
with the provisions of the Act, Rules, Regulations, Guidelines,
standards etc. mentioned above.
We further report that:
The Board of Directors of the Company is duly constituted with
proper balance of Executive Directors, Non-Executive
Directors and Independent Directors. No changes in the
composition of the Board of Directors that took place during
the period under review.
Adequate notice was given to all directors to schedule the
Board Meetings, agenda and detailed notes on agenda were
sent at least seven days in advance, and a system exists for
seeking and obtaining further information and clarifications on
the agenda items before the meeting and for meaningful
participation at the meeting.
Decisions at the Board Meetings were taken unanimously.
We further report that there are adequate systems and
processes in the Company commensurate with the size and
operations of the Company to monitor and ensure compliance
with applicable laws, rules, regulations and guidelines.
We further report that during the audit period no events
occurred which had bearing on the Company's affairs in
pursuance of the above referred laws, rules, regulations,
guidelines etc.
For Parikh & Associates
Company Secretaries
Place: Mumbai
Date: 28.05.2018
Signature:
Mitesh Dhabliwala
Partner
FCS No: 8331 CP No: 9511
This Report is to be read with our letter of even date which is
annexed as Annexure A and Forms an integral part of this
report.
Ecoplast Limited
34
‘Annexure A’
To,
The Members
Ecoplast Limited
Our report of even date is to be read along with this letter.
1. Maintenance of Secretarial record is the responsibility of the management of the Company. Our responsibility is to express an
opinion on these secretarial records based on our audit.
2. We have followed the audit practices and process as were appropriate to obtain reasonable assurance about the correctness
of the contents of the Secretarial records. The verification was done on test basis to ensure that correct facts are reflected in
Secretarial records. We believe that the process and practices, we followed provide a reasonable basis for our opinion.
3. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the Company.
4. Where ever required, we have obtained the Management representation about the Compliance of laws, rules and regulations
and happening of events etc.
5. The Compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility of
management. Our examination was limited to the verification of procedure on test basis.
6. The Secretarial Audit report is neither an assurance as to the future viability of the Company nor of the efficacy or effectiveness
with which the management has conducted the affairs of the Company.
For Parikh & Associates
Company Secretaries
Place: Mumbai
Date: 28.05.2018
Signature:
Mitesh Dhabliwala
Partner
FCS No: 8331 CP No: 9511
Annual Report 2017 - 2018
35
ANNEXURE -IV
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION,
FOREIGN EXCHANGE EARNINGS AND OUTGO
A. CONSERVATION OF ENERGY
i. Steps taken / impact on conservation of energy Energy conservation continues to receive priority
ii. Steps taken by the company for utilizing alternate attention at all levels. All efforts are made to conserve
sources of energy including waste generated: and optimize use of energy with continuous monitoring,
iii. Capital investment on energy conservation improvement in maintenance and distribution
equipment: systems and through improved operational techniques.
B. TECHNOLOGY ABSORPTION
i. Efforts, in brief, made towards technology absorption The Company continues to use latest technologies for
ii. Benefits derived as a result of the above efforts, improving the productivity & quality of its products.
e.g., product improvement, cost reduction, product
development, import substitution, etc.:
iii.In case of imported technology (imported during the last 3 years reckoned from the beginning of the
financial year), following information may be furnished:
a) Details of technology imported.: The Company has not imported any technology
b) Year of import.: Not Applicable
c) Whether the technology been fully absorbed: Not Applicable
d) If not fully absorbed, areas where absorption has not taken place, and the reasons therefore.: Not Applicable
iv. Expenditure incurred on Research and Development
( in Rs. 000's )
31.03.18 31.03.17
a) Capital Expenditure --- ---
b) Recurring Expenditure 20,99,800 12,55,558
c) Total Expenditure 20,99,800 12,55,558
d) Total R & D Expenditure as a percentage of total turnover. 0.21 0.13
C. FOREIGN EXCHANGE EARNINGS AND OUTGO 31.03.18
a) Foreign Exchange Earnings : Rs.8,51,47,509/-
b) Foreign Exchange Outgo : Rs.37,83,85,174/-
Ecoplast Limited
36
ANNEXURE -V
FORM NO. AOC 2
Related Party Transactions disclosure
Form for disclosure of particulars of contracts/arrangements entered into by the company with related parties referred to in sub-
section (1) of section 188 of the Companies Act, 2013 including certain arms length transactions under third proviso thereto
(Pursuant to clause (h) of sub-section (3)of section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2017)
1. Details of contracts or arrangements or transactions not at arm's length basis:
The Company has not entered into contracts or arrangements or transactions with Related Party which are not at arm's
length basis hence not required to make any disclosure under this heading.
2. Details of material contracts or arrangement or transactions at arm's length basis:
The Company has not entered into any material contract or material arrangement or material transactions with related
party on arm's length basis. Hence not required to make any disclosure under this heading.
For and on behalf of the Board of Directors
Mukul B. Desai
CHAIRMAN
DIN:00015126
Mumbai, 28th May 2018
Annual Report 2017 - 2018
37
ANNEXURE -VI
PARTICULARS OF EMPLOYEES
TManagerial Personnel) Rules, 2017 is given hereunder.
1. The ratio of the remuneration of each director to the median remuneration of the employees of the company for the financial year;
he information as required under Section 197 of the Act read with rule 5(1) of the Companies (Appointment and Remuneration of
Sr. No. Name of Director/KMP Ratio to Remuneration of Median Remuneration
i. Jaymin B.Desai 34.52
ii. Pheroze P. Kharas 0.83
iii. Charulata N. Patel 0.58
iv. Jehangir A. Moos 1.12
v. Dhananjay T. Desai 0
vi. Mukul B. Desai 1.24
vii. Bhupendra M. Desai 1.20
2. The percentage increase in remuneration of each director, Chief Financial Officer, Chief Executive Officer, Company Secretary or Manager, if any, in the financial year;
Sr. No. Name of Director/KMP
i. Jaymin B.Desai 21.76%
ii. Pheroze P. Kharas -8.89%
iii. Charulata N. Patel -22.17%
iv. Jehangir A. Moos 4.15%
v. Dhananjay T. Desai 0*
vi. Mukul B. Desai 15.80%
vii. Bhupendra M. Desai 45.93%
viii. Mahadev D.Desai-CFO 7.95%
ix. Antony P.Alapat-CS 10.38%
Percentage Increase in Remuneration
Note: Mr. Dhananjay T. Desai, Director had waived his right to receive any kind of remuneration, as precondition for his
appointment as the member of Board of Director and its Committees.
3. The percentage increase in the median remuneration of employees in the financial year; 2.5%
4. the number of permanent employees on the rolls of company; 100
5. the explanation on the relationship between average increase in remuneration and company performance:
The Companies Average Remuneration increased by 2.25 % as compared to previous financial year and Companies profit before
tax has been increased by 43.79%. Considering the above average performance achieved by the Company the average increase
in remuneration is justified.
6. Comparison of the remuneration of the Key Managerial Personnel against the performance of the company;
Total Remuneration of KMP 1,18,39,382
Turnover 99,04,97,480
Remuneration of KMP as of Turnover 1.20%
Ecoplast Limited
38
7. Variations in the market capitalisation of the company, price earnings ratio as at the closing date of the current financial year and
previous financial year and percentage increase over decrease in the market quotations of the shares of the company in
comparison to the rate at which the company came out with the last public offer in case of listed companies:
MarketCapitalisation
PriceEarnings Ratio
Change in market quotationsof the shares as Compared
to last Public offer
Closing date of the previous Financial year Rs. 26.86 Crores 14.56 +124 %
Closing date of the current Financial year Rs.40.59 Crores 14.37 +238.24%
8. Average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial
year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if
there are any exceptional circumstances for increase in the managerial remuneration:
Average Increase in Salaries excluding Managerial Remuneration 5.74
Average Increase in Managerial Remuneration 21.76
9. Comparison of the each remuneration of the Key Managerial Personnel against the performance of the company:
Remuneration 82,80,396 30,51,651 5,07,335
Turnover 99,04,97,480
Remuneration as % of Turnover 0.84 0.31 0.05
Mr. Antony AlapatCompany Secretary
Mr. Jaymin DesaiManaging Director
Mr. Mahadev DesaiCFO
10. The key parameters for any variable component of remuneration availed by the directors:
The Non Executive Directors of the Company are entitled to 1 % commission on the Net Profits of the Company calculated as per section 198 of the Companies Act 2013.
11. The ratio of the remuneration of the highest paid director to that of the employees who are not directors but receive remuneration in excess of the highest paid director during the year:
The Company doesn't have any employee who is receiving remuneration in excess of highest paid director.
12. Affirmation that the remuneration is as per the remuneration policy of the company:
The Directors hereby confirm that the Company is paying remuneration to Directors & Employees as per the remuneration policy of the Company.
13. Statement showing details of employees of the company who is drawing remuneration more than Rs.60, Lakhs Per Annum or Rs.5 Lakhs per Month.
(i) Name of the employee: Mr. Jaymin B. Desai
(ii) designation of the employee; Managing Director
(iii) remuneration received; Rs. 82,80,396
(iv) nature of employment, whether contractual or otherwise; Contractual
(v) qualifications ; B.E (Chemical)
(vi) experience of the employee; Over 33 years
(vii) date of commencement of employment;1985
(viii)the age of such employee; 56 years
(ix) the last employment held by such employee before joining the company; Not Applicable
(x) the percentage of equity shares held by the employee in the company within the meaning of clause (iii) of sub-rule (2) above;28
(xi) whether any such employee is a relative of any director or manager of the company and if so, name of such director or manager: No
Annual Report 2017 - 2018
39
ANNEXURE -VII
DETAILS OF DIRECTORS REMUNERATION
I. Remuneration of Managing Director:
a) SALARY: Rs. 5,00,000/- per month with such increments,
effective 1st October every year, as may be decided by the
Board of Directors of the Company within the scale of
Rs.5,00,000/- to Rs.8,00,000/- per month during the
tenure of his appointment.
b) Perquisites: In addition to the aforesaid salary, The
Managing Director shall be entitled to the following
perquisites:
i) Medical Allowance of Rs.20,800 per month.
ii) Reimbursement of Medical Insurance premium not
exceeding Rs. 25,000/- per annum.
iii) Personal Accident Insurance policy to cover the risk up
to an annual premium not exceeding a sum of Rs.
10,000/-
iv) Reimbursement of Leave Travel expenses as per rules
of the Company for self and family not exceeding Rs
1,50,000/- per annum
The above perquisites shall be evaluated as per the
Income tax Rules wherever applicable. In the absence of
such rules, perquisites will be evaluated at actual costs.
Notwithstanding anything to the contrary here in
contained, where, in any financial year during the currency
of the tenure of Mr. J B Desai as the Managing Director, the
Company has made no profits or its profits are inadequate,
the Company shall pay to the Managing Director, the
above Salary and perquisites, as Minimum Remuneration.
c) The Managing Director shall also be entitled to the
following perquisites which shall not be included in the
computation of the ceiling on remuneration specified
herein above :
i. Contribution to Provident Fund, Superannuation Fund
or Annuity Fund to the extent these either singly or put
together are not taxable under theIncome tax Act, 1961.
ii. Gratuity payable at the rate not exceeding half a month's
Salary for each completed year of service.
iii. Earned privilege leave at the rate of one month's leave
for every eleven months of service. The Managing
Director shall be entitled to encash leave at the end of
his tenure as Managing Director.
iv. Provision for Car including driver's salary and Telephone
at the residence of the Managing Director and mobile
phone for the business of the Company shall not be
treated as perquisites
All income tax and other impositions, if any, in respect of
Mr.Jaymin B. Desai's remuneration shall be calculated by
the Company and deducted in accordance with the
applicable provisions of the Income tax law for the time
being in force.
d) Either party shall be entitled to terminate the Agreement by
giving the other party not less than three calendar months
notice in writing without showing any cause.
e) Depending upon the Increase in profits & turnover of the
Company, The Nomination & Remuneration Committee
shall decide the performance incentives and revision in
remuneration of the Managing Director.
II. Remuneration of Nonexecutive Director:
The Non Executive Directors of the Company are entitled to 1
% commission on the Net Profits of the Company calculated
as per section 198 of the Companies Act 2013.
Ecoplast Limited
40
MANAGEMENT DISCUSSION AND ANALYSIS
1. Industry Outlook
Plastics have played a vital role in transforming the quality of life, and will progressively continue to do so over the years. The per-
capita consumption of plastics in India is at around 11 to 12 kgs, as against 30 to 35 kgs in developed countries.
Normally, the tendency is to judge a product or item in terms of its waste disposal problem. The scientific approach is to make a
comparative study of products or applications, based on measurements of energy input and the pollution discharged to land, water
and air at every stage, from the time that basic raw materials are extracted from the earth to the time a product is produced,
transported, used and disposed; this is called a Life Cycle Analysis (LCA). - or more simply the "cradle to grave approach".
LCA studies conducted the world over (including the Centre for Polymer Science and Engineering, the Indian Institute of
Technology, Delhi) have shown beyond any reasonable doubt, that plastics are the most eco-friendly materials; they have a pivotal
role in reducing green house gas emissions.
Global automobile, foods processing packing and health care companies have established large manufacturing bases in India.
Industry is expected to grow at the rate of 12% per annum in time to come.
Environmental concern for use of plastic and collection of waste material for recycling and reuse is a major concern for the
Industry.
2. Opportunities and Threats:
There are good opportunities in the specialty application film business - mostly industrial applications, with relatively high
technology content and which are generally import substitutes. The risk of backward integration is less in these applications.
Plastics packaging adds value to agricultural produce by increasing its shelf- life and fortifying its nutritive value. The film
performance for each item has to be tailored to meet specific requirements and is technology related.
Over the last three years, the industry has encountered volatility and uncertainty on price movements of Poly Ethylene, exchange
rate volatility. Major policy decisions of the Government like Demonetisation, Protectionist movements in world.
3. Risks and Concern.
While risk is an inherent aspect of any business, the Company is conscious of the need to have an effective monitoring mechanism
and has put in place appropriate measures for its mitigation including business portfolio risk, financial risk, legal risk and internal
process risk.
4. Internal Financial Control Systems:
The Company's internal financial control systems are commensurate with the nature of its business and the size and complexities
of its operations. These systems are designed to ensure that all assets of the Company are safeguarded and protected against any
loss and that all transactions are properly authorized, recorded and reported.
5. Human Resources
It is your Company's belief that people are at the heart of corporate purpose and constitute the primary source of sustainable
competitive advantage. Your Company's belief in trust, transparency and teamwork improved employee productivity at all levels
6. Disclosures
During the year the Company has not entered into any transaction of material nature with its promoters, the directors or the
management, their subsidiaries or relatives etc that may have potential conflict with the interest of the Company at large.
All details of transaction covered under related party transaction are given in the notes to account.
7. Cautionary Statement :
Certain statements made in the Management Discussion and Analysis Report relating to the Company's objectives, projections,
outlook, expectations, estimates and others may constitute 'forward looking statements' within the meaning of applicable laws and
regulations. Actual results may differ from such expectations, projections and so on whether express or implied. Several factors
could make significant difference to the Company's operations. These include climatic conditions and economic conditions
affecting demand and supply, government regulations and taxation, natural calamities and so on over which the Company does
not have any direct control.
Annual Report 2017 - 2018
41
Independent Auditor's Report
To The Members of
ECOPLAST LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial
statements of Ecoplast Limited ('the Company'), which
comprise the Balance Sheet as at 31 March 2018, the
Statement of Profit and Loss (including other comprehensive
income), the Cash Flow Statement and statement of changes
in equity for the year then ended and a summary of the
significant accounting policies and other explanatory
information.
Management's Responsibility for the Standalone
Financial Statements
The Company's Board of Directors is responsible for the
matters stated in Section 134(5) of the Companies Act, 2013
('the Act') with respect to the preparation of these standalone
financial statements that give a true and fair view of the state
of affairs (financial position), profit or loss (financial
performance), cash flowsand changes in equity of the
companyin accordance with the accounting principles
generally accepted in India, including the Indian Accounting
Standards ('Ind AS') specified under Section 133 of the Act.
This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the
Act for safeguarding the assets of the Company and for
preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies;
making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of
adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and
presentation of the standalone financial statements that give a
true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these
standalone financial statements based on our audit.
We have taken into account the provisions of the Act, the
accounting and auditing standards and matters which are
required to be included in the audit report under the provisions
of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on
Auditing specified under Section 143(10) of the Act. Those
Standards require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable
assurance about whether these standalone financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit
evidence about the amounts and the disclosures in the
financial statements. The procedures selected depend on the
auditor's judgment, including the assessment of the risks of
material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the
auditor considers internal financial controls relevant to the
Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit also includes
evaluating the appropriateness of the accounting policies
used and the reasonableness of the accounting estimates
made by the Company's Directors, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit
opinion on these standalone financial statements.
Opinion
In our opinion and to the best of our information and according
to the explanations given to us, the aforesaid standalone
financial statements give the information required by the Act in
the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted
in India:
a) in the case of the Balance Sheet, of the state of
affairs(financial position)of the Company as at 31st
March 2018;
b) in the case of the Statement of Profit and Loss, of the
profit(f inancial performance including other
comprehensive income),for the year ended on that
date;
Ecoplast Limited
42
c) in the case of the Cash Flow Statement, of the cash
flows for the year ended on that date, and Changes in
equity for the year ended on that date.
d) Changes in equity for the ended on that date.
Other matters
The audited standalone financial statements for the year
ended 31 March 2017, was carried out and reported by Akkad ndMehta & Co., vide their unmodified audit report dated 22
May, 2017, whose report has been furnished to us by the
management and which has been relied upon by us for the
purpose of our audit of the standalone financial statements.
Our audit report is not qualified in respect of this matter.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order,
2016 ('the Order') issued by the Central Government of India
in terms of Section 143(11) of the Act, we give in the Annexure
A, a statement on the matters specified in paragraphs 3 and 4
of the Order, to the extent applicable.
2. As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and
explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit.
b) In our opinion proper books of account as required by
law have been kept by the Company so far as appears
from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement dealt with by this Report
are in agreement with the books of account
d) In our opinion, the aforesaid Standalone financial
statements comply with Ind AS specified under Section
133 of the Act;
e) On the basis of written representations received from
the directors as on March 31, 2018 taken on record by
the Board of Directors, none of the directors is
disqualified as on March 31, 2018 from being appointed
as a director in terms of Section 164 (2) of the Act.
f) we have also audited the internal financial controls over
financial reporting (IFCoFR) of the Company as on 31
March 2018 in conjunction with our audit of the
standalone financial statements of the Company for the
year ended on that date and our report as per Annexure
B expressed Unmodified opinion;
g) With respect to the other matters included in the
Auditor's Report in accordance with Rule 11 of the
Companies (Audit and Auditors') Rules, 2014 (as
amended), in our opinion and to our best of our
information and according to the explanations given to
us:-
I. The pending litigation as disclosed in notes to the
Standalone Financial Statements would not impact
Financial Position of the Company.
II. The Company did not have any long-term contracts
including derivatives contracts for which there were any
material foreseeable losses.
III. There has been no delay in transferring amounts,
required to be transferred, to the Investor Education
and Protection Fund by the Company.
IV. The disclosure requirements relating to holdings as well
as dealings in specified bank notes were applicable for
the period from 8 November 2016 to 30 December 2016
which are not relevant to these standalone financial
statements. Hence, reporting under this clause is not
applicable.
For Y. B. Desai and Associates
Chartered Accountants
Firm Registration No. 102368W
Name :- CA Mayank Y. Desai
Partner
Membership No. :- 108310
thDate :- 28 May, 2018
Place :- Mumbai.
Annual Report 2017 - 2018
43
Matters specified in paragraph 3 of Order
1) In respect of its fixed assets:
a) On the basis of available information, the Company has
maintained proper records showing full particulars
including quantitative details and situations of fixed
assets.
b) According to the information and explanation given to
us, the Company has formulated a regular program of
verification by which all the assets of the Company shall
be verified in a phased manner over a period of once in
every three years, which, in our opinion is reasonable
having regard to the size of the Company and nature of
assets and no material discrepancies were noticed on
verification conducted during the year as compared
with the book records.
c) According to the information and explanation given to
us and on the basis of our examination of the record of
the company, the title deeds of the immovable
properties are held in the name of the company.
2) In respect of its inventories:
a) The inventories, except goods-in-transit have been
physically verified during the year by the management.
In our opinion, the frequency of verification is
reasonable. As per the information and explanation
given to us, no material discrepancies were noticed on
physical verification.
3) The Company has not granted loans, secured or
unsecured, to companies, firms, and limited liability
partnerships or other parties listed in the register
maintained U/s 189 of the Companies Act, 2013.
Therefore, the provisions of sub clause 3(a), 3(b) & 3(c) are
not applicable to the company.
4) According to the information and explanations given to us,
the Company has not given any loan, security or guarantee
to directors of any other body corporate as referred to in
section 185 and 186 of the Companies Act, 2013.
However, the Company had granted Loans to wholly
owned subsidiary company under the erstwhile provision
of Section 372A of the Companies Act, 2013. As per Rule
11 of the Companies (Meeting of Board and its power)
Rules, 2014, Loans, Investments and guarantees given to
wholly owned subsidiary is exempted from complying the
provision of Section 186(3) of the Act.
5) The Company has not accepted any deposits from the
public and hence the directives issued by the Reserve
Bank of India and the provisions of Sections 73 to 76 or any
other relevant provisions of the Act and the Companies
(Acceptance of Deposit) Rules, 2015 with regard to the
deposits accepted from the public are not applicable.
6) We have broadly reviewed the books of account
maintained by the Company in respect of products where,
pursuant to the Rules made by the Central Government of
India, the maintenance of cost records has been
prescribed under subsection (1) of Section 148 of the Act,
and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained.
We have not, however, made a detailed examination of the
records with a view to determine whether they are accurate
or complete.
7) In respect of statutory dues:
a) According to the records of the Company, undisputed
statutory dues including Provident Fund, Employees'
State Insurance, Income Tax, Sales Tax, Wealth Tax,
Service Tax, duty of Customs, Duty of Excise, Value
Added Tax, Cess and other material statutory dues
have been generally regularly deposited with the
appropriate authorities. According to the information
and explanations given to us, no undisputed amounts
payable in respect of the aforesaid dues were
outstanding as at 31st March 2018 for a period of more
than six months from the date of becoming payable.
b) According to the information and explanation given to
us, there are no dues of income tax, sales tax, wealth
tax, service tax, custom duty, excise duty and Cess
which have not been deposited on account of dispute.
However, according to information and explanation
given to us dues of Service Tax have not been deposited
by the Company on account of disputes are as follows :-
Annexure -A to the Auditors' ReportReferred to in paragraph 1 of our Report of even date:
Ecoplast Limited
44
Nature of the dues Amount in (Rs.) F. Y. to which theamount relates
Forum wheredispute is pending
Name of the Statute
Finance Act, 1994Superintendent,C.Ex. Valsad
Service Tax CreditOn The Service OfCustom Housing Agent
F.Y.2010-11
Superintendent,C.Ex.ValsadF.Y.2012-13
Superintendent,C.Ex.ValsadF.Y.2013-14
Superintendent,C.Ex.ValsadF.Y.2014-15
F.Y.2014-15
TOTAL
Service Tax CreditOn The Service OfCustom Housing Agent
Service Tax CreditOn The Service OfCustom Housing Agent
Service Tax CreditOn The Service OfCustom Housing Agent
Service Tax CreditOn The Service OfCustom Housing Agent
Superintendent,C.Ex.Valsad
F.Y.2015-16
Service Tax CreditOn The Service OfCustom Housing Agent
Superintendent,C.Ex.Valsad
F.Y.2015-16Service Tax CreditOn The Service OfCustom Housing Agent
Superintendent,C.Ex.Valsad
F.Y.2010-11to F.Y.2013-14
Cenvat Credit OfService Tax Paid ToCommission Agent
DeputyCommissioner,C.Ex. Valsad
F.Y.2014-15Cenvat Credit OfService Tax Paid ToCommission Agent
Superintendent,C.Ex.Valsad
F.Y.2015-16Cenvat Credit OfService Tax Paid ToCommission Agent
Superintendent,C.Ex.Valsad
3,17,688.00
51,560.00
74,376.00
31,164.00
55,725.00
7,58,857.00
67,507.00
71,358.00
54,075.00
12,400.00
16,769.00
6,235.00 F.Y.2016-17Cenvat Credit OfService Tax Paid ToCommission Agent
Superintendent,C.Ex.Valsad
Finance Act, 1994
Finance Act, 1994
Finance Act, 1994
Finance Act, 1994
Finance Act, 1994
Finance Act, 1994
Finance Act, 1994
Finance Act, 1994
Finance Act, 1994
Finance Act, 1994
Annual Report 2017 - 2018
45
8) In our opinion and according to the information and
explanations given to us, the Company has not defaulted in
the repayment of dues to banks. The Company has not taken
any loan either from financial institutions or from the
government and has not issued any debentures.
9) The company has not raised any funds by public offer
during the year. The company has also not raised any term
loan during the year, therefore, this clause is not applicable.
10) In our opinion and according to the information and
explanations given to us, no fraud by the Company and no
material fraud on the Company has been noticed or reported
during the year.
11) According to the information and explanation give to us
and based on our examination of the records of the Company,
the Managerial remuneration has been paid and provided by
the Company in accordance with the requisite approvals
mandated by the provisions of Section 197 of the Act read with
Schedule V to the Act.
12) In our opinion, the Company is not a Nidhi Company.
Therefore, the provisions of clause 12 of the Order are not
applicable to the Company.
13) According to the information and explanation given to
us and based on our examination of the records the company,
transaction with the related parties are in compliance with
Section 177 and 188 of the Companies Act, 2013 where
applicable and details of such transaction have been
disclosed in the Note No. 31 of financial statement as required
by the applicable accounting standards.
14) Based upon the audit procedures performed and the
information and explanations given by the management, the
company has not made any preferential allotment or private
placement of shares or fully or partly convertible debentures
during the year under review. Accordingly, the provisions of
clause 14 of the Order are not applicable to the Company and
hence not commented upon.
15) Based upon the audit procedures performed and the
information and explanations given by the management, the
company has not entered into any non-cash transactions with
directors or persons connected with him. Accordingly, the
provisions of clause 15 of the Order are not applicable to the
Company and hence not commented upon.
16) In our opinion, the company is not required to be
registered under section 45 IA of the Reserve Bank of India
Act, 1934 and accordingly, the provisions of clause 16 of the
Order are not applicable to the Company and hence not
commented upon.
Matters specified in paragraph 4 of Order
…Nil…
For Y. B. Desai and Associates
Chartered Accountants
Firm Registration No. 102368W
Name :- CA Mayank Y. Desai
Partner
Membership No. :- 108310
thDate :- 28 May, 2018
Place :- Mumbai
Ecoplast Limited
46
Annexure - B to the Independent Auditors' Report of even date to the members ofEcoplast Limited, on the standalone financial statements for the year ended 31 March 2018
on Auditing, issued by ICAI and deemed to be prescribed
under section 143(10) of the Companies Act, 2013, to the
extent applicable to an audit of internal financial controls, both
applicable to an audit of Internal Financial Controls and, both
issued by the Institute of Chartered Accountants of India.
Those Standards and the Guidance Note require that we
comply with ethical requirements and plan and perform the
audit to obtain reasonable assurance about whether
adequate internal financial controls over financial reporting
was established and maintained and if such controls operated
effectively in all material respects.
Our audit involves performing procedures to obtain audit
evidence about the adequacy of the internal financial controls
system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over
financial reporting included obtaining an understanding of
internal financial controls over financial reporting, assessing
the risk that a material weakness exists, and testing and
evaluating the design and operating effectiveness of internal
control based on the assessed risk. The procedures selected
depend on the auditor's judgment, including the assessment
of the risks of material misstatement of the financial
statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit
opinion on the Company's internal financial controls system
over financial reporting.
Meaning of Internal Financial Controls over Financial
Reporting
A company's internal financial control over financial reporting
is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the
Independent Auditor's report on the Internal Financial
Controls under Clause (i) of sub-section 3 of Section 143
of the Companies Act, 2013 (the “Act”)
We have audited the internal financial controls over financial
reporting of ECOPLAST LIMITED (“the Company”) as of 31st
March 2018 in conjunction with our audit of the financial
statements of the Company for the year ended on that date.
Management's Responsibility for the Internal Financial
Controls
The Company's management is responsible for establishing
and maintaining internal financial controls based on the
internal control over financial reporting criteria established by
the Company considering the essential components of
internal control stated in the Guidance Note on Audit of
Internal Financial Controls over Financial Reporting issued by
the Institute of Chartered Accountants of India ('ICAI'). These
responsibilities include the design, implementation and
maintenance of adequate internal financial controls that were
operating effectively for ensuring the orderly and efficient
conduct of its business, including adherence to company's
policies, the safeguarding of its assets, the prevention and
detection of frauds and errors, the accuracy and
completeness of the accounting records, and the timely
preparation of reliable financial information, as required under
the Companies Act, 2013.
Auditors' Responsibility
Our responsibility is to express an opinion on the Company's
internal financial controls over financial reporting based on
our audit. We conducted our audit in accordance with the
Guidance Note on Audit of Internal Financial Controls over
Financial Reporting (the “Guidance Note”) and the Standards
Annual Report 2017 - 2018
47
preparation of financial statements for external purposes in
accordance with generally accepted accounting principles. A
company's internal financial control over financial reporting
includes those policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail, accurately
and fairly reflect the transactions and dispositions of the
assets of the company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit preparation
of financial statements in accordance with generally accepted
accounting principles, and that receipts and expenditures of
the company are being made only in accordance with
authorisations of management and directors of the company;
and (3) provide reasonable assurance regarding prevention
or timely detection of unauthorised acquisition, use, or
disposition of the company's assets that could have a material
effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over
Financial Reporting
Because of the inherent limitations of internal financial
controls over financial reporting, including the possibility of
collusion or improper management override of controls,
material misstatements due to error or fraud may occur and
not be detected. Also, projections of any evaluation of the
internal financial controls over financial reporting to future
periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of
changes in conditions, or that the degree of compliance with
the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an
adequate internal financial controls system over financial
reporting and such internal financial controls over financial
reporting were operating effectively as at 31st March 2018
based on the internal control over financial reporting criteria
established by the Company considering the essential
components of internal control stated in the Guidance Note on
Audit of Internal Financial Controls Over Financial Reporting
issued by the Institute of Chartered Accountants of India.
For Y. B. Desai and Associates
Chartered Accountants
Firm Registration No. 102368W
Name :- CA Mayank Y. Desai
Partner
Membership No. :- 108310
thDate :- 28 May, 2018
Place :- Mumbai
Ecoplast Limited
48
BALANCE SHEET AS AT 31ST MARCH, 2018
Note No As at 31.03.2017 As at 01.04.2016As at 31.03.2018
ASSETSNON CURRENT ASSETS(a) Property, Plant and Equipment 2 12,38,68,753 12,66,35,192 10,47,76,758(b) Capital work-in-progress 2 - 38,47,366 6,40,959(c) Investment in Subsidiaries 3 2,30,25,048 2,29,23,422 2,28,21,998(d) Financial Assets (i) Loans 4 3,41,30,390 3,31,83,771 2,80,71,898(e) Other non-current assets 5 85,22,939 37,82,439 50,92,414
Total non-current assets 18,95,47,130 19,03,72,190 16,14,04,027CURRENT ASSETS(a) Inventories 6 11,33,98,439 10,32,94,892 8,55,29,089(b) Financial Assets
(i) Trade Receivables 7.1 16,59,10,607 19,25,31,233 16,81,62,546(ii) Cash and cash equivalents 7.2 15,31,176 11,69,915 10,75,681(iii) Bank balances other than (ii) above 7.3 27,13,904 32,96,658 28,19,086(iv) Loans 7.4 18,45,970 10,39,462 9,11,877(v) Other financial assets 7.5 8,50,242 19,40,918 13,36,643
(c) Other current assets 8 48,13,390 84,32,135 55,65,148Total current assets 29,10,63,728 31,17,05,213 26,54,00,070TOTAL ASSETS 48,06,10,858 50,20,77,403 42,68,04,097
EQUITY AND LIABILITIESEquity(a) Equity Share capital 9 3,00,00,000 3,00,00,000 3,00,00,000(b) Other Equity 10 23,70,96,439 21,13,45,206 19,01,54,424
Total equity 26,70,96,439 24,13,45,206 22,01,54,424LiabilitiesNon-current liabilities(a) Financial Liabilities (i) Borrowings 11 1,87,06,045 3,05,72,815 2,23,61,018(b) Provisions 12 47,82,952 43,00,200 34,75,187(c) Deferred tax liabilities (Net) 13 94,45,684 90,58,442 79,87,152
Total non current liabilities 3,29,34,681 4,39,31,457 3,38,23,357Current liabilities(a) Financial Liabilities
(i) Borrowings 14.1 7,41,16,945 9,82,66,575 7,25,54,762(ii) Trade payables 14.2 8,51,47,897 9,50,20,550 8,24,12,848(iii) Other financial liabilities 14.3 1,29,13,683 1,28,92,976 90,33,548
(b) Other current liabilities 15 49,30,328 60,47,441 51,36,578(c) Provisions 16 34,70,885 45,73,198 36,88,580
Total current liabilities 18,05,79,738 21,68,00,740 17,28,26,316TOTAL EQUITY AND LIABILITIES 48,06,10,858 50,20,77,403 42,68,04,097
As per our Report of even date. For and on behalf of the Board of Directors
Chartered Accountants
JAYMIN B.DESAIPartner Chairman Managing Director
M. D. DESAIC.F.O.
For Y.B.Desai & Associates
Firm ICAI Registration No. 102368W
MAYANK Y. DESAI MUKUL DESAI
Membership No : 108310ANTONY ALAPATCompany Secretary
Place: Mumbai Place : MumbaiDate : 28th May,2018 Date : 28th May,2018
The accompanying notes from 1 to 39 are an integral part of the financial statements
Annual Report 2017 - 2018
49
STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH, 2018
Particulars Note No 31.03.2018 31.03.2017
I Revenue from Operations 17 99,04,97,480 1,06,91,91,166
II Other Income 18 1,61,43,679 1,03,51,957
III TOTAL INCOME (I+II) 1,00,66,41,159 1,07,95,43,123
IV Expenses
Cost of materials consumed 19 70,43,43,235 72,41,38,529
Changes in inventories of finished goods, 20 (60,38,514) (24,70,839)
stock in trade and work-in-progress
Excise Duty 21 3,11,49,764 10,77,85,516
Employee benefits expense 22 7,26,40,296 6,63,07,408
Finance costs 23 1,53,87,047 1,85,15,994
Depreciation and amortization expense 2 1,82,10,873 1,78,57,267
Other expenses 24 12,39,80,355 11,47,44,456
TOTAL EXPENSES (IV) 95,96,73,056 1,04,68,78,331
V Profit/(loss) before tax (III-IV) 4,69,68,103 3,26,64,792
VI Tax expense:
(1) Current tax 1,67,57,000 89,33,000
(2) Deferred tax 4,73,288 6,05,456
(3) Tax in respect of Earlier Years - 60,791
1,72,30,288 95,99,247
VII Profit for the year (V-VI) 2,97,37,815 2,30,65,545
VIIIOther Comprehensive Income
(i) Items that will not be reclassified to profit or loss
- Remeasurement of Defined benefit plans 2,60,248 (14,08,930)
(ii) Income tax relating to items that will
not be reclassified to profit or loss
- Remeasurement of Defined benefit plans 86,046 (4,65,835)
IX Total comprehensive income for the year (VII+VIII) 3,00,84,109 2,11,90,780
X Earnings per equity share:
Basic and Diluted 9.91 7.69
As per our Report of even date. For and on behalf of the Board of Directors
Chartered Accountants
JAYMIN B.DESAIPartner Chairman Managing Director
M. D. DESAIC.F.O.
For Y.B.Desai & Associates
Firm ICAI Registration No. 102368W
MAYANK Y. DESAI MUKUL DESAI
Membership No : 108310ANTONY ALAPATCompany Secretary
Place: Mumbai Place : MumbaiDate : 28th May,2018 Date : 28th May,2018
The accompanying notes from 1 to 39 are an integral part of the financial statements
Ecoplast Limited
50
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2018
Particulars For the year ended 31 Mar,2018 For the year ended 31 Mar,2017
A. Cash flow from operating activities
Net Profit before Tax as per Statement of Profit and Loss
Adjustments for:
Depreciation and amortization and impairment 1,82,10,873 1,78,57,267
(Profit) / loss on sale / write off of assets (net) (66,733) (1,20,187)
Finance costs 1,52,85,421 1,85,15,994
Interest income (34,59,629) (33,21,831)
Other Comprehensive Income 2,60,248 (14,08,930)
Liabilities / provisions no longer required written back (2,49,140) (1,13,191)
2,99,81,040 3,14,09,122
Operating profit before working capital changes 7,69,49,143 6,40,73,914
Changes in working capital:
Adjustments for (increase)/decrease in operating assets:
Inventories (1,01,03,547) (1,77,65,803)
Trade receivables 2,66,20,626 (2,43,68,687)
Short-term loans and advances (8,06,508) (1,27,585)
Long-term loans and advances (4,18,474) (25,73,018)
Other current financial assets 10,90,676 (6,04,275)
Other non current assets (47,40,499) 13,09,975
Other current assets 36,18,745 (28,66,987)
Adjustments for increase/(decrease) in operating liabilities:
Trade payables (96,23,513) 1,27,20,893
Other current liabilities (11,17,113) 9,10,862
Other current financial liabilities 20,706 38,59,428
Short-term provisions (11,02,313) 8,84,618
Long-term provisions 4,82,752 8,25,013
39,21,538 (2,77,95,565)
8,08,70,681 3,62,78,349
Cash generated from operations 8,08,70,681 3,62,78,349
Net income tax (paid) / refunds (1,67,57,000) (89,93,791)
Net cash flow from/(used in)operating activities(A) 6,41,13,681 2,72,84,558
B. Cash flow from investing activities
Payment for property, plant and equipment,
including capital advances (1,17,80,333) (4,29,31,452)
Proceeds from sale of fixed assets 2,50,000 1,29,531
Investments made (1,01,424)
Loans given
- Subsidiaries (5,28,146) (25,38,855)
Interest received
- Subsidiaries 26,46,917 25,38,855
- Others 8,12,712 7,82,976
(85,98,851) (4,21,20,369)
(85,98,851) (4,21,20,369)
Net cash flow from/(used in) investing activities(B) (85,98,851) (4,21,20,369)
4,69,68,103 3,26,64,792
Annual Report 2017 - 2018
51
As per our Report of even date. For and on behalf of the Board of Directors
Chartered Accountants
JAYMIN B.DESAIPartner Chairman Managing Director
M. D. DESAIC.F.O.
For Y.B.Desai & Associates
Firm ICAI Registration No. 102368W
MAYANK Y. DESAI MUKUL DESAI
Membership No : 108310ANTONY ALAPATCompany Secretary
Place: Mumbai Place : MumbaiDate : 28th May,2018 Date : 28th May,2018
The accompanying notes from 1 to 39 are an integral part of the financial statements
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2018
Particulars For the year ended 31 Mar,2018 For the year ended 31 Mar,2017
C. Cash flow from financing activities
Proceeds / (Repayment) of long-term borrowings (1,18,66,771) 82,11,797
Net increase / (decrease) in Short term borrowings (2,41,49,630) 2,57,11,813
Finance cost (1,53,87,047) (1,85,15,994)
Dividends paid (36,00,000) -
Tax on dividend (7,32,875) -
(5,57,36,324) 1,54,07,617
Net cash flow from/(used in) financing activities(C) (5,57,36,323) 1,54,07,617
Net increase/(decrease) in Cash and cash equivalents(A+B+C) (2,21,493) 5,71,806
Cash and cash equivalents at the beginning ofthe year
Balances with banks in current accounts,
earmarked balances and deposit accounts 32,96,658 28,19,086
Cash on hand 11,69,915 10,75,681
Cash and cash equivalents at the end of the year 42,45,080 44,66,573
Cash and cash equivalents at the end of the year Comprises :
(a) Cash on hand 5,80,264 3,39,476
(b) Balances with banks in current accounts and deposit accounts 9,50,912 8,30,439
(c) Balances with banks in earmarked balances
and deposit accounts 27,13,904 32,96,658
CASH AND CASH EQUIVALENTS. 42,45,080 44,66,573
Notes:
1) The above Cash Flow Statement has been prepared under the "Indirect Method " as set out in Indian Accounting Standard (Ind AS - 7) on statement of Cash Flow.
2 The previous year's figures have been regrouped/ restated wherever necessary to confirm to this year's classification.
3 Earmarked account balances with banks can be utilized only for the specific identified purposes.
Ecoplast Limited
52
Notes to Financial Statements for the year ended 31st March 2018
Corporate Information
Ecoplast Limited is Public Company domiciled in India and incorporated under the provisions of the Companies Act, 1956 having
Corporate Identity Number L25200GJ1981PLC004375. Its shares are listed on Bombay Stock Exchange in India. The Company
is engaged in the business of manufacturing, processing and selling of Co-extruded Plastic Film for packaging and industrial
applications. The principal place of business of the company is at Abrama-Valsad. The Company caters to both domestic and
international markets. It has various certifications like ISO 9001, ISO 14001 and ISO 22000 registration for products thereby
complying with globally accepted quality standards.
1. Statement of Significant Accounting Policies
Basis of Preparation:
The Financial Statements are prepared in accordance with Indian Accounting Standards (Ind AS) notified under Section 133 of
the Companies Act, 2013 (“Act”) read with Companies (Indian Accounting Standards) Rules, 2015; and the other relevant
provisions of the Act and Rules thereunder.
The Financial Statements have been prepared under historical cost convention basis, except for certain assets and liabilities
measured at fair value.
The Company has adopted all the Ind AS and the adoption was carried out in accordance with Ind AS 101 ‘First time adoption of
Indian Accounting Standards’. The transition was carried out from Generally Accepted Accounting Principles in India (Indian
GAAP) as prescribed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014, as amended
which was the “Previous GAAP”.
The Company’s presentation and functional currency is Indian Rupees (Rs.). All figures appearing the financial statements are
rounded off to the Rupee, except where otherwise indicated.
1.1. Use of Judgment and Estimates:
The preparation of Company’s financial statements requires management to make judgments, estimates and assumptions that
affect the reported amounts of revenue, expenses, assets, liabilities and the accompanying disclosures along with contingent
liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require material adjustments to the
carrying amounts of the assets or liabilities affected in future periods. The Company continually evaluates these estimates and
assumptions based on the most recently available information.
Æ Financial instruments;
Æ Estimates of useful lives and residual value of Property, Plant and Equipment and Intangible assets;
Æ Valuation of Inventories
Æ Measurement of Defined Benefit Obligations and actuarial assumptions;
Æ Provisions;
Æ Contingencies.
Revisions to accounting estimates are recognised prospectively in the Statement of Profit and Loss in the period in which the
estimates are revised and in any future periods affected.
1.2.Property, Plant and Equipment
1.2.1. Property, Plant and Equipment are stated at cost net of accumulated depreciation and accumulated impairment losses,
if any.
1.2.2. The initial costs of an asset comprises its purchase price or construction costs (including import duties and non-
refundable taxes), any costs directly attributable to bringing the asset into the location and condition necessary for it to
be capable of operating in the manner intended by management, the initial estimate of any decommissioning obligation,
if any, and borrowing cost for qualifying assets (i.e. assets that necessarily take a substantial period of time to get ready
for their intended use).
Annual Report 2017 - 2018
53
1.2.3. Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the
expenditure will flow to the Company.
1.2.4. Expenditure on assets not exceeding threshold limit are charged to revenue.
1.2.5. Spare parts which meet the definition of Property, Plant and Equipment are capitalised as Property, Plant and
Equipment in case the unit value of the spare part is above the threshold limit. In other cases, the spare part is
inventorised on procurement and charged to Statement of Profit and Loss on consumption.
1.2.6. An item of Property, Plant and Equipment and any significant part initially recognized separately as part of Property,
Plant and Equipment is de-recognised upon disposal; or when no future economic benefits are expected from its use or
disposal. Any gain or loss arising on de-recognition of the asset is included in the Statement of Profit and Loss when the
asset is de-recognised.
1.2.7. The residual values and useful lives of Property, Plant and Equipment are reviewed at each financial year end and
changes, if any are accounted in line with revisions to accounting estimates.
1.2.8. The Company has elected to use exemption available under Ind AS 101 to continue the carrying value for all its Property,
Plant and Equipment as recognised in the financial statements as at the date of transition to Ind ASs, measured as per
previous GAAP and use that as its deemed cost as at the date of transition (1st April, 2016).
1.3. Depreciation
Depreciation on Property, Plant and Equipment are provided on straight line basis, over the estimated useful lives of assets
(after retaining the estimated residual value of 5%). These useful lives determined are in line with the useful lives as prescribed
in the Schedule II of the Act.
1.3.1. Items of Property, Plant and Equipment costing not more than the threshold limit are depreciated 100% in the year of
acquisition.
1.3.2. Components of the main asset that are significant in value and have different useful lives as compared to the main asset
are depreciated over their estimated useful life. Useful life of such components has been assessed based on historical
experience and internal technical assessment.
1.3.3. Depreciation on spare parts specific to an item of Property, Plant and Equipment is based on life of the related Property,
Plant and Equipment. In other cases, the spare parts are depreciated over their estimated useful life based on the
technical assessment.
1.3.4. Depreciation is charged on additions/ deletions on pro-rata monthly basis including the month of addition/ deletion.
1.4. Intangible Assets
1.4.1. Intangible assets are carried at cost net of accumulated amortization and accumulated impairment losses, if any.
1.5. Investment Property
1.5.1. Investment property is property (land or a building – or part of building – or both) held either to earn rental income or a
capital appreciation or for both, but not for sale in the ordinary course of business, use in production or supply of goods or
services or for administrative purposes.
1.5.2. Any gain or loss on disposal of investment property calculated as the difference between the net proceeds and the
carrying amount of the Investment Property is recognised in Statement of Profit and Loss.
1.6. Borrowing Costs
1.6.1. Borrowing costs consist of interest and other costs incurred in connection with the borrowing of funds. Borrowing costs
also include exchange differences to the extent regarded as an adjustment to the borrowing costs.
1.6.2. Borrowing costs that are attributable to the acquisition or construction of qualifying assets (i.e. an asset that necessarily
takes a substantial period of time to get ready for its intended use) are capitalized as a part of the cost of such assets. All
other borrowing costs are charged to the Statement of Profit and Loss.
Ecoplast Limited
54
1.7. Non current asset held for sale
1.7.1. Non-current assets are classified as held for sale if their carrying amounts will be recovered through a sale transaction
rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset
is available for immediate sale in its present condition subject only to terms that are usual and customary for sale of such
assets.
1.7.2. Non-current assets classified as held for sale are measured at the lower of carrying amount and fair value less costs to
sell.
1.7.3. Property, Plant and Equipment and intangible assets classified as held for sale are not depreciated or amortized.
1.8. Leases
1.8.1. Finance Leases
A lease agreement that transfers substantially all the risks and rewards irrespective of whether title is transferred is classified as
a finance lease.
Finance lease are capitalized at the commencement of the lease at fair value of the leased property or, if lower, at present value
of minimum lease payment.
Leases of land where, the company assumes substantially all the risks and rewards of ownership are classified as finance
lease. Finance lease of land are capitalized at the lease’s inception at upfront lease payments.
A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the company will
obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the useful estimated life of the asset
and the lease term.
Finance charges are recognised as finance charges in the Statement of Profit and Loss. Lease management fees, legal
charges and other initial direct costs of lease are capitalized.
1.8.2. Operating Leases
Lease Agreements which are not classified as finance leases are considered as Operating Leases.
Payments made under operating leases are recognised in Statement of Profit and Loss with reference to lease terms and other
relevant considerations. Lease incentives received/ lease premium paid (if any) are recognised as an integral part of the total
lease expense, over the term of the lease. Payments made under Operating Leases are generally recognised in Statement of
Profit and Loss on a straight line basis over the term of the lease, unless such payment is structured to increase in line with
expected general inflation.
1.8.3. Determining whether an arrangement contains a lease
At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease. At inception or on
reassessment of an arrangement that contains a lease, the Company separates payments and other consideration required by
the arrangement into those for the lease and those for other elements on the basis of their relative fair values. In case of a
finance lease, if the Company concludes that it is impracticable to separate the payments reliably, then an asset and a liability
are recognised at an amount equal to the fair value of the underlying assets; subsequently, the liability is reduced as payments
are made and an imputed finance cost on the liability is recognised using the Company’s incremental borrowing rate.
1.9. Impairment of Non-financial Assets
1.9.1. Non-financial assets other than inventories, deferred tax assets and non-current assets classified as held for sale are
reviewed at each Balance Sheet date to determine whether there is any indication of impairment. If any such indication
exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s recoverable
amount. The recoverable amount is higher of the assets or Cash-Generating Units (CGU’s) fair value less costs of
disposal and its value in use. Recoverable amount is determined for an individual asset, unless the asset does not
generate cash inflows that are largely independent of those from other assets or group of assets.
Annual Report 2017 - 2018
55
1.9.2. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is
written down to its recoverable amount.
1.10. Inventories
1.10.1.The cost for the purpose of valuation of Finished and Semi - Finished goods is arrived at on FIFO basis and includes
Cost of conversion and other cost incurred in bringing the inventories to their present location and condition. Due
allowance is estimated and made for defective and obsolete items, wherever necessary, based on the past experience
of the company.
The mode of valuing closing stock is as under:
Æ Raw Materials, Packing Materials, Machinery Spares, Ink and Fuel - at Cost or Net Realizable Value
Æ Finished and Semi - Finished goods – at lower of cost or net realizable value
Æ Scrap - net realizable value
1.10.2. Customs duty/GST on Raw materials/ finished goods lying in bonded warehouse is provided for at the applicable rates
except where liability to pay duty is transferred to consignee.
1.10.3. Excise duty on finished stocks lying at manufacturing locations is provided for at the assessable value applicable at
each of the locations based on end use.
1.10.4." Raw materials held for use in production of Finished Goods are written down below Cost , only if, the estimated Cost
or Net Realizable Value of Finished Goods will not exceed Net Realizable Value of such Raw Materials."
1.10.5.Obsolete, slow moving, surplus and defective stocks are identified at the time of physical verification of stocks and
where necessary, provision is made for such stocks.
1.11. Revenue Recognition
1.11.1. Sale of Goods
Revenue from the sale of goods is recognized when the significant risks and rewards of the ownership of the goods have
passed to the buyer, the Company retains neither continuing managerial involvement to the degree usually associated
with ownership nor effective control over the goods sold, revenue and the associated costs can be estimated reliably
and it is probable that economic benefits associated with the transaction will flow to the Company.
Revenue from sale of goods includes excise duty and is measured at the fair value of the consideration received or
receivable (after including fair value allocations related to multiple deliverable and/or linked arrangements), after the
deduction of any trade discounts, volume rebates, net of returns, taxes or duties collected on behalf of the government.
When the Company acts as an agent on behalf of a third party, the associated income is recognized on net basis.
Export Sales are accounted for on the basis of the date of Bill of Lading.
1.11.2. Claims are recognized on settlement. Export incentives are accounted where there is reasonable assurance that the
incentive income will be received and all attached conditions will be complied with.
1.11.3. Interest income is recognized using Effective Interest Rate (EIR) method.
1.11.4. Dividend is recognized when right to receive the income is established, it is probable that the economic benefits
associated with the dividend will flow to the entity and the amount of dividend can be measured reliably.
1.12. Classification of Income/ Expenses
1.12.1.Income/ expenditure (net) in aggregate pertaining to prior year(s) above the threshold limit are corrected retrospectively
in the first set of financial statements approved for issue after their discovery by restating the comparative amounts and /
or restating the opening Balance Sheet for the earliest prior period presented.
1.12.2.Prepaid expenses up to threshold limit in each case, are charged to revenue as and when incurred.
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56
1.13. Employee benefits
1.13.1.Short term employment benefits
Short term employee benefits such as salaries, wages, short-term compensated absences, performance incentives etc.,
and the expected cost of bonus, ex-gratia are recognized as an expense at an undiscounted amount in the Statement of
Profit and Loss of the year in which the related services are rendered.
1.13.2. Defined Contribution Plans
Æ Superannuation :
The Company has Defined Contribution Plan for Post employment benefits in the form of Superannuation Fund for certain
class of employees as per the scheme, administered through Life Insurance Corporation (LIC) and Trust which is
administered by the Trustees and is charged to revenue every year. Company has no further obligation beyond its
contributions
Æ Employee's Family Pension :
The Company has Defined Contribution Plan for Post-employment benefits in the form of family pension for all eligible
employees, which is administered by the Regional Provident Fund Commissioner and is charged to revenue every year.
Company has no further obligation beyond its monthly contributions.
Æ Provident Fund:
The Company has Defined Contribution Plan for Post-employment benefits in the form of Provident Fund for all eligible
employees; which is administered by the Regional Provident Fund Commissioner and is charged to revenue every year.
Company has no further obligations beyond its monthly contributions.
1.13.3. Defined Benefit Plans
Æ Gratuity :
The Company has a Defined Benefit Plan for Post-employment benefit in the form of gratuity for all eligible employees
which is administered through Life Insurance Corporation (LIC) and a trust which is administered by the trustees. Liability
for above defined benefit plan is provided on the basis of actuarial valuation as at the Balance Sheet date, carried out by an
independent actuary. The actuarial method used for measuring the liability is the Projected Unit Credit method.
Æ Compensated Absences :
Liability for Compensated Absences is provided on the basis of valuation, as at the Balance Sheet date, carried out by an
independent actuary. The Actuarial valuation method used for measuring the liability is the Projected Unit Credit method.
Under this method, the Defined Benefit Obligation is calculated taking into account pattern of availment of leave whilst in
service and qualifying salary on the date of availment of leave. In respect of encashment of leave, the Defined Benefit
obligation is calculated taking into account all types of the increment, salary growth, attrition rate and qualifying salary
projected up to the assumed date of encashment.
1.13.4.Termination Benefits:
Termination benefits are recognised as an expense as and when incurred.
1.13.5. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by
reference to market yields at the end of the reporting period on Government bonds that have terms approximating to the
terms of the related obligation.
1.13.6.The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and
the fair value of plan assets. This cost is included in employee benefit expense in the Statement of Profit and Loss.
1.13.7.Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are
recognised in the period in which they occur directly in Other Comprehensive Income. They are included in retained
earnings in the Statement of changes in equity and in the Balance Sheet.
Annual Report 2017 - 2018
57
1.13.8.Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are
recognised immediately in profit or loss as past service cost.
1.14. Foreign Currency Transactions
1.14.1. Monetary Items
Transactions in foreign currencies are initially recorded at their respective exchange rates at the date the transaction
first qualifies for recognition.
Monetary assets and liabilities denominated in foreign currencies are translated at exchange rates prevailing on the
reporting date.
Exchange differences arising on settlement or translation of monetary items (except for long term foreign currency
monetary items outstanding as of 31st March 2016) are recognised in Statement of Profit and Loss either as profit or
loss on foreign currency transaction and translation or as borrowing costs to the extent regarded as an adjustment to
borrowing costs.
1.14.2. Non – Monetary items:
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the
exchange rates at the dates of the initial transactions.
1.15. Investment in Subsidiaries
Investments in subsidiary company carried at cost less accumulated impairment losses, if any. Where an indication of
impairment exists, the carrying amount of the investment is assessed and written down immediately to its recoverable amount.
On disposal of investments in subsidiary company, the difference between net disposal proceeds and the carrying amounts are
recognised in the Statement of Profit and Loss.
1.16. Government Grants
1.16.1.Government grants are recognized at fair value where there is reasonable assurance that the grant will be received and
all attached conditions will be complied with.
1.16.2.When the grant relates to an expense item, it is recognized in Statement of Profit and Loss on a systematic basis over
the periods that the related costs, for which it is intended to compensate, are expensed.
1.16.3.Government grants relating to Property, Plant and Equipment are presented as deferred income and are credited to the
Statement of Profit and Loss on a systematic and rational basis over the useful life of the asset.
1.17. Provisions, Contingent Liabilities and Capital Commitments
1.17.1.Provisions are recognized when there is a present obligation (legal or constructive) as a result of a past event, it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a
reliable estimate can be made of the amount of the obligation.
1.17.2.The expenses relating to a provision is presented in the Statement of Profit and Loss net of reimbursements, if any.
1.17.3.If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects,
when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the
passage of time is recognized as a finance cost.
1.17.4.Contingent liabilities are possible obligations whose existence will only be confirmed by future events not wholly within
the control of the Company, or present obligations where it is not probable that an outflow of resources will be required or
the amount of the obligation cannot be measured with sufficient reliability.
1.17.5.Contingent liabilities are not recognized in the financial statements but are disclosed unless the possibility of an outflow
of economic resources is considered remote.
1.17.6.Contingent liabilities and Capital Commitments disclosed are in respect of items which in each case are above the
threshold limit.
Ecoplast Limited
58
1.18. Fair Value measurement
1.18.1. The Company measures certain financial instruments at fair value at each reporting date.
1.18.2. Certain accounting policies and disclosures require the measurement of fair values, for both financial and non- financial
assets and liabilities.
1.18.3. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date in the principal or, in its absence, the most advantageous market
to which the Company has access at that date. The fair value of a liability also reflects its non-performance risk.
1.18.4. The best estimate of the fair value of a financial instrument on initial recognition is normally the transaction price – i.e. the
fair value of the consideration given or received. If the Company determines that the fair value on initial recognition
differs from the transaction price and the fair value is evidenced neither by a quoted price in an active market for an
identical asset or liability nor based on a valuation technique that uses only data from observable markets, then the
financial instrument is initially measured at fair value, adjusted to defer the difference between the fair value on initial
recognition and the transaction price. Subsequently that difference is recognised in Statement of Profit and Loss on an
appropriate basis over the life of the instrument but no later than when the valuation is wholly supported by observable
market data or the transaction is closed out.
1.18.5.While measuring the fair value of an asset or liability, the Company uses observable market data as far as possible. Fair
values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation technique
as follows:
Æ Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
Æ Level 2: inputs other than quoted prices included in Level 1 that are observable for the assets or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices)
Æ Level 3: inputs for the assets or liability that are not based on observable market data (unobservable inputs)
1.18.6.When quoted price in active market for an instrument is available, the Company measures the fair value of the
instrument using that price. A market is regarded as active if transactions for the asset or liability take place with
sufficient frequency and volume to provide pricing information on an ongoing basis.
1.18.7.If there is no quoted price in an active market, then the Company uses a valuation techniques that maximise the use of
relevant observable inputs and minimise the use of unobservable inputs. The chosen valuation technique incorporates
all of the factors that market participants would take into account in pricing a transaction.
1.18.8.The Company regularly reviews significant unobservable inputs and valuation adjustments. If the third party
information, such as broker quotes or pricing services, is used to measure fair values, then the Company assesses the
evidence obtained from the third parties to support the conclusion that these valuations meet the requirements of Ind
AS, including the level in the fair value hierarchy in which the valuations should be classified.
1.19. Financial Assets
1.19.1. Initial recognition and measurement
Trade Receivables and debt securities issued are initially recognised when they are originated. All other financial assets
are initially recognised when the Company becomes a party to the contractual provisions of the instrument. All financial
assets other than those measured subsequently at fair value through profit and loss, are recognised initially at fair value
plus transaction costs that are attributable to the acquisition of the financial asset.
1.19.2.Subsequent measurement
Subsequent measurement is determined with reference to the classification of the respective financial assets. Based on
the business model for managing the financial assets and the contractual cash flow characteristics of the financial
asset, the Company classifies financial assets as subsequently measured at amortised cost, fair value through other
comprehensive income or fair value through profit and loss.
Annual Report 2017 - 2018
59
Debt instruments at amortised cost
A 'debt instrument' is measured at the amortised cost if both the following conditions are met:
The asset is held within a business model whose objective is
- To hold assets for collecting contractual cash flows, and
- Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and
interest (SPPI) on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortised cost using the effective
interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium and fees or
costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the Statement of Profit
and Loss. The losses arising from impairment are recognised in the Statement of Profit and Loss.
Debt instruments at Fair value through Other Comprehensive Income (FVOCI)
A 'debt instrument' is measured at the fair value through Other Comprehensive Income if both the following conditions
are met:
"The asset is held within a business model whose objective is achieved by both”
- collecting contractual cash flows and selling financial assets and
- contractual terms of the asset give rise on specified dates to cash flows that are SPPI on the principal amount
outstanding.
After initial measurement, these assets are subsequently measured at fair value. Interest income under effective
interest method, foreign exchange gains and losses and impairment losses are recognised in the Statement of Profit
and Loss. Other net gains and losses are recognised in other comprehensive Income.
Debt instruments at Fair value through Profit or Loss (FVTPL)
Fair Value through Profit or Loss is a residual category for debt instruments. Any debt instrument, which does not meet
the criteria for categorisation at amortised cost or as FVOCI, is classified as FVTPL.
After initial measurement, any fair value changes including any interest income, foreign exchange gain and losses,
impairment losses and other net gains and losses are recognised in the Statement of Profit and Loss.
Equity investments
All equity investments within the scope of Ind AS 109 are measured at fair value. Such equity instruments which are held
for trading are classified as FVTPL. For all other such equity instruments, the Company decides to classify the same
either as FVOCI or FVTPL. The Company makes such election on an instrument-by-instrument basis. The classification
is made on initial recognition and is irrevocable.
For equity instruments classified as FVOCI, all fair value changes on the instrument, excluding dividends, are
recognized in Other Comprehensive Income (OCI). Dividends on such equity instruments are recognised in the
Statement of Profit or Loss.
Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the
Statement of Profit and Loss.
1.19.3.De-recognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily
derecognised (i.e. removed from the Company's Balance Sheet) when
Æ The rights to receive cash flows from the asset have expired, or
Æ The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the
received cash flows in full without material delay to a third party under a 'pass-through' arrangement; and either:
Ecoplast Limited
60
- The Company has transferred substantially all the risks and rewards of the asset, or
- The Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has
transferred control of the asset.
On de-recognition, any gains or losses on all debt instruments (other than debt instruments measured at FVOCI) and
equity instruments (measured at FVTPL) are recognised in the Statement of Profit and Loss. Gains and losses in
respect of debt instruments measured at FVOCI and that are accumulated in OCI are reclassified to profit or loss on de-
recognition. Gains or losses on equity instruments measured at FVOCI that are recognised and accumulated in OCI are
not reclassified to profit or loss on de-recognition.
1.19.4.Impairment of financial assets
In accordance with Ind AS 109, the Company applies Expected Credit Loss (“ECL”) model for measurement and
recognition of impairment loss on the financial assets measured at amortised cost and debt instruments measured at
FVOCI.
Loss allowances on trade receivables are measured following the ‘simplified approach’ at an amount equal to the
lifetime ECL at each reporting date.The application of simplified approach does not require the Company to track
changes in credit risk. Based on the past history and track records the company has assessed the risk of default by the
customer and expects the credit loss to be insignificant. In respect of other financial assets such as debt securities and
bank balances, the loss allowance is measured at 12 month ECL only if there is no significant deterioration in the credit
risk since initial recognition of the asset or asset is determined to have a low credit risk at the reporting date.
1.20. Financial Liabilities
\ 1.20.1.Initial recognition and measurement
Financial liabilities are initially recognised when the Company becomes a party to the contractual provisions of the
instrument.
Financial liability is initially measured at fair value plus, for an item not at fair value through profit and loss, transaction
costs that are directly attributable to its acquisition or issue.
1.20.2.Subsequent measurement
Subsequent measurement is determined with reference to the classification of the respective financial liabilities.
Financial Liabilities at Fair Value through Profit or Loss (FVTPL)
A financial liability is classified as at Fair Value through Profit or Loss (FVTPL) if it is classified as held-for-trading or is
designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and changes therein,
including any interest expense, are recognised in Statement of Profit and Loss.
Financial Liabilities at amortised cost
After initial recognition, financial liabilities other than those which are classified as FVTPL are subsequently measured at
amortised cost using the effective interest rate (“EIR”) method.
Amortised cost is calculated by taking into account any discount or premium and fees or costs that are an integral part of
the EIR. The amortisation done using the EIR method is included as finance costs in the Statement of Profit and Loss.
1.21. Financial guarantees
Financial guarantee contracts issued by the Company are those contracts that require a payment to be made to reimburse the
holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of the
debt instrument. Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction costs
that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount
of loss allowance determined as per impairment requirements of Ind AS 109 and the fair value initially recognised less
cumulative amortisation.
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61
1.22. Embedded derivatives
If the hybrid contract contains a host that is a financial asset within the scope of Ind AS 109, the classification requirements
contained in Ind AS 109 are applied to the entire hybrid contract. Derivatives embedded in all other host contracts, including
financial liabilities are accounted for as separate derivatives and recorded at fair value if their economic characteristics and
risks are not closely related to those of the host contracts and the host contracts are not held for trading or designated at fair
value through profit and loss. These embedded derivatives are measured at fair value with changes in fair value recognised in
Statement of Profit and Loss, unless designated as effective hedging instruments. Reassessment only occurs if there is either a
change in the terms of the contract that significantly modifies the cash flows.
1.23. Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the Balance Sheet, if there is a currently
enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the assets
and settle the liabilities simultaneously.
1.24. Taxes on Income
1.24.1.Current Tax
Income-tax Assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation
authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted,
by the end of reporting period.
Current Tax items are recognised in correlation to the underlying transaction either in the Statement of Profit and Loss,
other comprehensive income or directly in equity.
1.24.2.Deferred tax
Deferred tax is provided using the Balance Sheet method on temporary differences between the tax bases of assets and
liabilities and their carrying amounts for financial reporting purposes at the reporting date.
"Deferred tax liabilities are recognised for all taxable temporary differences.Deferred tax assets are recognised for all
deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax
assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible
temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised.”
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no
longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised.
Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has
become probable that future taxable profits will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is
realised or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted at the
reporting date.
Deferred Tax items are recognised in correlation to the underlying transaction either in the Statement of Profit and Loss,
other comprehensive income or directly in equity.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets
against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.
Ecoplast Limited
62
1.25. Earnings per share
Basic earnings per share are calculated by dividing the profit or loss for the period attributable to equity shareholders (after
deducting preference dividends, if any, and attributable taxes) by the weighted average number of equity shares outstanding
during the period.
For the purpose of calculating diluted earnings per share, the profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are adjusted for the effect of all dilutive potential equity
shares.
1.26. Classification of Assets and Liabilities as Current and Non-Current:
All assets and liabilities are classified as current or non-current as per the Company’s normal operating cycle (determined at 12
months) and other criteria set out in Schedule III of the Act.
1.27. Cash and Cash equivalents
Cash and cash equivalents in the Balance Sheet include cash at bank, cash, cheque, draft on hand and demand deposits with
an original maturity of less than three months, which are subject to an insignificant risk of changes in value.
For the purpose of Statement of Cash Flows, Cash and cash equivalents include cash at bank, cash, cheque and draft on hand.
The Company considers all highly liquid investments with a remaining maturity at the date of purchase of three months or less
and that are readily convertible to known amounts of cash to be cash equivalents.
1.28. Cash Flows
Cash flows are reported using the indirect method, where by net profit before tax is adjusted for the effects of transactions of a
non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or
expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities
are segregated.
1.29. The Company has adopted the following materiality threshold limits in the preparation and presentation of
financials statements as given below:
Threshold ItemAccounting
PolicyReference
Unit ThresholdLimit Value
Capitalisation of spare parts meeting the definition of Property,
Equipment in each case
Depreciation at 100 percent in the year of acquisition
Income / expenditure (net) in aggregate pertaining to prior year(s)
Disclosure of Contingent liabilities and Capital Commitments
Prepaid expenses
Plant and
in each case
1.2.5.
1.3.1.
1.12.1.
1.17.6.
1.12.2
0.50
0.05
1.00
1.00
0.10
Lakhs
Lakhs
Lakhs
Lakhs
Lakhs
Annual Report 2017 - 2018
63
(i)
Gro
ss B
lock
incl
ude R
s.24,4
6,4
49
on r
eva
luatio
n o
f F
ixed A
ssets
as
on 3
1st
Marc
h,
1994 e
xcl
udin
g V
ehic
les,
Furn
iture
& F
ixtu
res
and O
ffic
e
Equip
ments
.
(ii)
Build
ings
incl
ude R
s.250 b
ein
g c
ost
of 5
share
s of R
s.50 e
ach
in R
iddhi P
rem
ises
Co-o
pera
tive H
ousin
g S
oci
ety
Ltd
.
(iii)
Ass
ets
are
morg
aged /
hyp
oth
eca
ted a
s se
curity
for b
orr
ow
ing.
(iv)
The C
om
pany
has
adopte
d c
arr
ying v
alu
e a
s re
cogniz
ed in t
he f
inanci
al st
ate
ment
as
at
31st
Marc
h,
2016,
measu
red a
s per
Pre
vious
GA
AP
as
its
deem
ed c
ost
.
No
te 2
: P
rop
ert
y, P
lan
t &
Eq
uip
men
t an
d In
tan
gib
le A
ssets
Part
icu
lars
Fre
eh
old
lan
dB
uild
ing
sP
lan
t &
Mach
inery
F
urn
itu
re&
Fix
ture
sV
eh
icle
sO
ffic
eE
qu
ipm
en
tTo
tal
Deem
ed
Co
st
as a
t 1st
Ap
ril, 2
016
Additi
ons
Dele
tions
Gro
ss C
arr
yin
g v
alu
e a
s o
n M
arc
h 3
1,2
017
Additi
ons
Dele
tions
Capita
lised / T
ransf
err
ed d
uring the Y
ear
Gro
ss C
arr
yin
g v
alu
e a
s o
n M
arc
h 3
1,2
018
Accu
mu
late
d d
ep
recia
tio
n a
s o
n A
pri
l 1,2
016
Depre
ciatio
n c
harg
e for
the y
ear
Depre
ciatio
n o
n d
ele
tion
Accu
mu
late
d d
ep
recia
tio
n a
s o
n M
arc
h 3
1,2
017
Depre
ciatio
n c
harg
e for
the y
ear
Depre
ciatio
n o
n d
ele
tion
Accu
mu
late
d d
ep
recia
tio
n a
s o
n M
arc
h 3
1,2
018
Net
bo
ok v
alu
e
At
01st
Ap
ril,
2016
At
31st
Marc
h, 2017
At
31st
Marc
h, 2018
50,9
6,1
85
-
-
50,9
6,1
85
-
-
50,9
6,1
85
-
-
-
-
-
-
-
50,9
6,1
85
50,9
6,1
85
50,9
6,1
85
2,5
1,3
7,7
59
67,3
5,9
03
-
3,1
8,7
3,6
62
4,0
0,7
94
-
3,2
2,7
4,4
56
-
13,7
3,2
96
-
13,7
3,2
96
15,1
0,6
50
-
28,8
3,9
46
2,5
1,3
7,7
59
3,0
5,0
0,3
66
2,9
3,9
0,5
10
6,8
5,4
2,6
36
3,2
1,0
2,4
46
-
10,0
6,4
5,0
82
1,3
4,3
2,9
04
-
11,4
0,7
7,9
86
-
1,4
9,8
1,1
60
-
1,4
9,8
1,1
60
1,5
0,9
8,1
82
-
3,0
0,7
9,3
42
6,8
5,4
2,6
36
8,5
6,6
3,9
22
8,3
9,9
8,6
44
3,6
2,3
12
1,8
9,5
48
10,1
20
5,4
1,7
40
7,0
0,8
96
-
12,4
2,6
36
-
80,0
63
776
79,2
87
92,7
80
-
1,7
2,0
67
3,6
2,3
12
4,6
2,4
53
10,7
0,5
69
36,7
1,2
01
70,2
01
-
37,4
1,4
02
-
11,5
3,9
68
25,8
7,4
34
-
7,6
6,2
07
-
7,6
6,2
07
7,5
8,9
23
9,7
3,2
47
5,5
1,8
83
36,7
1,2
01
29,7
5,1
95
20,3
5,5
51
19,6
6,6
64
6,2
6,9
47
-
25,9
3,6
11
10,9
3,1
06
50,9
10
36,3
5,8
07
-
6,5
6,5
41
-
6,5
6,5
41
7,5
0,3
38
48,3
65
13,5
8,5
14
19,6
6,6
64
19,3
7,0
70
22,7
7,2
93
10,4
7,7
6,7
58
3,9
7,2
5,0
45
10,1
20
14,4
4,9
1,6
83
1,5
6,2
7,7
00
12,0
4,8
78 -
15,8
9,1
4,5
05 -
1,7
8,5
7,2
67
776
1,7
8,5
6,4
91
1,8
2,1
0,8
73
10,2
1,6
12
3,5
0,4
5,7
52
10,4
7,7
6,7
58
12,6
6,3
5,1
92
12,3
8,6
8,7
53
No
tes t
o F
inan
cia
l S
tate
men
ts f
or
the y
ear
en
ded
31st
Marc
h,
2018
Am
ou
nt
+ (
Rs.)
Ecoplast Limited
64
Particulars Gross BlockAccumulatedDepreciation /Amortisation
Net Block as perIGAAP
Ind ASAdjustment
Net Block
As at1st April, 2016
Freehold Land
Building
Plant and Equipment
Furniture and Fixtures
Office Equipments
Vehicles
Total
50,96,185
4,44,10,418
21,44,49,289
38,96,647
1,46,53,761
91,71,626
29,16,77,926
-
1,92,72,659
14,59,06,653
35,34,335
1,26,87,097
55,00,424
18,69,01,169
50,96,185
2,51,37,759
6,85,42,636
3,62,312
19,66,664
36,71,201
10,47,76,758
50,96,185
2,51,37,759
6,85,42,636
3,62,312
19,66,664
36,71,201
10,47,76,758
-
-
-
-
-
-
-
2 CAPITAL WORK-IN-PROGRESS
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Capital work-in-progress 38,47,366 6,40,959-
3 INVESTMENTS IN SUBSIDIARY
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Investment in Equity Shares of a Subsidiary Company
" Unquoted 11,95,360 (As at 31 March 2017 :11,95,360) Equity
Shares of ` 10 each fully paid up in Synergy Films Pvt.Ltd. " 2,30,25,048 2,29,23,422 2,28,21,998
(includes Ind AS adjustment) - - -
Total 2,30,25,048 2,29,23,422 2,28,21,998
4 LOANS - NON CURRENT
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Security deposits ( Unsecured, considered good) 66,59,551 66,59,551 42,68,277
Loan and Interest due thereon from Subsidiary Company 2,58,44,346 2,53,16,201 2,27,77,346
Loans and advances to employees 16,26,493 12,08,019 10,26,275
Total 3,41,30,390 3,31,83,771 2,80,71,898
5 OTHER NON CURRENT ASSETS
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Prepaid Expenses 2,46,676 1,94,458 2,77,636
Capital Advances 44,64,324 - 38,61,500
Advance income tax net of provisions 36,21,975 34,12,202 8,42,078
CST & VAT receivable on Assessment 1,89,964 1,75,779 1,11,200
Total 85,22,939 37,82,439 50,92,414
Annual Report 2017 - 2018
65
Accordingly, its Net Block as on 31st March, 2016 is its Gross Block under Ind AS. Break up of the said Gross block as at1st April, 2016 is as under:
6 INVENTORIES
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Raw materials 5,42,36,031 4,13,23,246 3,68,45,708
Raw-Materials in-transit 2,53,16,066 3,41,98,105 2,15,01,313
Work-in-progress 97,91,314 1,26,60,043 1,11,71,075
Finished goods 1,79,21,609 97,87,821 1,08,73,108
Finished Goods in-transit 38,44,334 43,40,219 22,73,061
Packing Material , Stores and Spares 22,84,782 9,67,834 28,50,875
Others - Scrap 4,303 17,624 13,949
Total 11,33,98,439 10,32,94,892 8,55,29,089
(i) The mode of valuation has been stated in Note 1.10 (ii) Inventories have been hypothecated as security for borrowings
7.1 TRADE RECEIVABLES
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Unsecured
(i) Considered good 16,59,28,521 19,27,85,521 16,81,63,338
(ii) Considered doubtful 5,43,137 7,92,277 8,92,277
Less: Provision for doubtful trade receivables 5,61,051 10,46,565 8,93,069
Total 16,59,10,607 19,25,31,233 16,81,62,546
Includes Trade receivable from Related Parties : Rs. 17659/- (Previous Year Rs. 4030290/-) Refer Note No. 31
7.2 CASH AND CASH EQUIVALENTS
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
(i) Balances with banks
- In current accounts* 3,68,912 8,30,439 7,65,653
- In Fixed Deposit 5,82,000 - -
(ii) Cash in hand 5,80,264 3,39,476 3,10,028
Total 15,31,176 11,69,915 10,75,681
7.3 BANK BALANCES
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
“ In Fixed Deposit Accounts, held as margin money
against Letter of Credit " 18,48,497 24,55,468 10,26,568
Unpaid dividend accounts 8,65,407 8,41,190 17,92,518
Total 27,13,904 32,96,658 28,19,086
7.4 LOANS - CURRENT
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Loans and Advances to employees 18,45,970 10,39,462 9,11,877
Total 18,45,970 10,39,462 9,11,877
Ecoplast Limited
66
Authorised share capital: No. of shares AmountBalance as at 1st April,2016 1,00,00,000 10,00,00,000Add / (Less): Changes during the year - -Balance as at 31st March,2017 1,00,00,000 10,00,00,000Add / (Less): Changes during the year - -Balance as at 31st March,2018 1,00,00,000 10,00,00,000Issued, Subscribed and paid up share capital: No. of shares AmountBalance as at 1st April,2016 30,00,000 3,00,00,000Add / (Less): Changes during the year - -Balance as at 31st March,2017 30,00,000 3,00,00,000Add / (Less): Changes during the year - -Balance as at 31st March,2018 30,00,000 3,00,00,000
7.5 OTHER FINANCIAL ASSETS
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Interest accrued on Fixed Deposits with Banks &Other Deposits 5,90,842 5,32,545 3,93,797
Discount Receivable 2,59,400 14,08,373 9,42,846
Total 8,50,242 19,40,918 13,36,643
8 OTHER CURRENT ASSETS
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
TDS Refund Receivable 3,60,814 3,60,814 4,39,326
Cenvat credit receivable - 19,20,811 11,33,248
Service Tax credit receivable - 31,79,043 12,16,933
Prepaid expenses 29,86,308 24,65,562 26,66,709
Advance to Trade Payables 14,66,268 5,05,905 1,08,932
Total 48,13,390 84,32,135 55,65,148
9 EQUITY SHARE CAPITAL
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Authorised
1,00,00,000 Equity Shares of Rs.10/- each 10,00,00,000 10,00,00,000 10,00,00,000
Issued, Subscribed and Paid up
30,00,000 Equity Shares of Rs. 10/- each fully paid up 3,00,00,000 3,00,00,000 3,00,00,000
Total 3,00,00,000 3,00,00,000 3,00,00,000
Notes:(i) Reconciliation of number of shares outstanding at the beginning and end of the year:
(ii) The Company has only one class of equity shares having a par value of Rs. 10 per share. Each Shareholder is eligible for one vote per share
(iii) The Paid-up Capital includes 1,500,000 Equity Shares of Rs.10 each allotted as fully paid up Bonus shares by capitalising Rs.5,000,000 out of General Reserve and Rs.10,000,000 out of Revaluation Reserve prior to listing of Company's Equity Shares.
(iv) The holders of equity shares will be entitled to receive reamining 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.
(v) The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in case of interim dividend.
(vi) During the Year there are no Changes in Number of Shares outstanding at the end of the reporting period in comparison to number of Shares Outstanding at the beginning of the reporting period.
Annual Report 2017 - 2018
67
Mrs Amita J.Desai
As at 1st April 2016 5,41,846 18.06%
As at 31st March, 2017 5,41,846 18.06%
As at 31st March, 2018 5,42,146 18.07%
Mrs Charulata N.Patel
As at 1st April 2016 3,77,783 12.59%
As at 31st March, 2017 3,83,911 12.80%
As at 31st March, 2018 3,83,911 12.80%
Silver Stream Properties LLP
As at 1st April 2016 4,76,827 15.89%
As at 31st March, 2017 4,76,827 15.89%
As at 31st March, 2018 4,76,827 15.89%
(vii) Details of shares held by each shareholder holding more than 5% shares in the Company:
Equity share of Rs. 10 each fully paid up with voting rightsNumber of fully
paid equity shares% Holding
10 OTHER EQUITY
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
(a) Securities premium Reserve
Balance as per last Balance Sheet 3,00,00,000 3,00,00,000 3,00,00,000
Closing Balance 3,00,00,000 3,00,00,000 3,00,00,000
(b) General reserve
Balance as per last Balance Sheet 5,07,81,315 5,07,81,315 4,82,81,315
Add: Transferred from surplus in Statement of Profit and Loss - - 25,00,000
Closing Balance 5,07,81,315 5,07,81,315 5,07,81,315
(c) Retained Earnings
Balance as at beginning of the year 13,24,38,655 10,93,73,109 9,38,79,667
Add: Profit for the year 2,97,37,815 2,30,65,546 2,34,09,536
16,21,76,470 13,24,38,655 11,72,89,203
Less: Appropriations
Transferred to General reserve - - 25,00,000
Payment of final Dividend to equity shareholders(Rs1.20 per share) 36,00,000 - -
Payment of Dividend distribution tax on final dividend 7,32,875 - -
Payment of Interim dividend - - 45,00,000
Payment of Dividend distribution tax on interim dividend - - 9,16,094
Closing Balance 15,78,43,595 13,24,38,655 10,93,73,109
(d) Other Comprehensive income
Balance as at beginning of the year (18,74,765) -
Add: Remeasurement of Net defined benefit liability/(asset) (net of tax) 3,46,294 (18,74,764)
(15,28,471) (18,74,764) -
Total 23,70,96,439 21,13,45,206 19,01,54,424
Ecoplast Limited
68
Securities premiumSecurities reserve is used to record the Premium on issue of shares. This reserve is utilized in accordance with the provisions of the Act.General ReserveThe general reserve is used from time to time to transfer profits from retained earnings for appropriations purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.Retained earningsRetained earnings are the profits that the Company has earned till date, less any transfers to the general reserve, dividends or other distributions paid to shareholders.Other Comprehensive incomeThese are actuarial gains/ losses on employee benefit obligations.
11 NON CURRENT BORROWINGS
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Secured
Term Loans
Bank of Baroda Term Loan IV 7,14,430 24,78,282 42,40,698
Bank of Baroda Coporate Loan V 40,72,140 86,67,577 1,77,55,726
Bank of Baroda Term Loan VI 37,21,920 57,25,723
Bank of Baroda Term Loan VII 1,01,97,555 1,37,01,233
Unsecured
Car Loan 3,64,594
Total 1,87,06,045 3,05,72,815 2,23,61,018
Details:
(i) The above are valued at Amortized cost.
(ii) The above Loans are Secured by Equitable Mortgage of Land & Factory Building of the Company at Abrama-Valsad, Office Premises at Andheri (East) Mumbai & hypothecation of Plant and Machineries, Electrical Installations, Furniture & Fixtures, Office Equpments and Other Movable Fixed Assets of the Company, both present and future and hypothecation of raw materials ,stock in process, Stores & Spares, packing materials and finished goods and book debts of the Company both present and future and further secured by personal guarantee of Managing Director.
(iii) Interest Rate Profile of Term Loans & Deposits are set out as below:
Particulars Rate of Interest(p.a.) Amount in Rs.
Term Loan from Bank-IV 10.00% 24,79,000
Corporate Loan from Bank-V 10.00% 88,45,000
Term Loan from Bank-VI 10.00% 57,27,000
Term Loan from Bank-VII 10.00% 1,37,04,000
3,07,55,000
(iv) Maturity Profile of Term Loans & Deposits is set out below:
ParticularsMaturity Profile (Amount in `)
Term Loan from Bank-IV 24,79,000 - -
Corporate Loan from Bank-V 88,45,000 - -
Term Loan from Bank-VI 40,08,000 17,19,000 -
Term Loan from Bank-VII 70,08,000 66,96,000
Car Loan under Hire Purchase
1-2 years 3-4 years > 4 years
Annual Report 2017 - 2018
69
12 PROVISIONS
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Provision for employee benefits:
Provision for compensated absences 47,82,952 43,00,200 34,75,187
Total 47,82,952 43,00,200 34,75,187
13 DEFERRED TAX LIABILITIES (NET)
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Tax effect of items constituting deferred tax liability
On difference between book balance and tax balance of fixed assets 1,20,40,928 1,31,18,441 1,22,70,809
Loan to subsidiary 17,14,572 8,39,421
Financial Guarantee 176 243
Tax effect of items constituting deferred tax liability 1,37,55,676 1,39,58,105 1,22,70,809
Tax effect of items constituting deferred tax assets
Provision for compensated absences, gratuity and other employee benefits 25,04,666 29,33,812 23,68,556
Provision for doubtful debts / advances 1,85,500 3,46,026 2,95,275
Provision for diminution in the value of investments 15,86,049 15,86,049 15,86,049
Financial Guarantee 33,777 33,777 33,777
Tax effect of items constituting deferred tax assets 43,09,992 48,99,663 42,83,657
Net deferred tax (Liability) / Asset (94,45,684) (90,58,442) (79,87,152)
14.1 BORROWINGS (SHORT TERM)
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Loans repayable on demand
From banks
Secured (@10%pa) 6,61,16,945 8,99,06,756 6,35,23,334
From Others - Unsecured
Inter Corporate Deposits (@11.5%pa) 80,00,000 80,00,000 80,00,000
Car Finance under H.P. Agreement - 3,59,819 10,31,428
Total 7,41,16,945 9,82,66,575 7,25,54,762
(i) Details of Security for the secured short-term borrowings:
Secured by hypothecation of inventories, book debts of the Company both present & futures and collaterally secured by equitable mortgage of Company's Land and Factory Buildings at Abrama-Valsad and Office Premises at Andheri (East) Mumbai, hypothecation of Plant and Machineries and guaranteed by Managing Director
(ii) The above are valued at Amortized cost.
Ecoplast Limited
70
14.2 TRADE PAYABLES
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Trade payables:
Micro, Small and Medium Enterprises 2,99,989 6,71,965 4,93,582
Trade Payable to Related Party 5,22,911 9,47,908 0
Others 8,43,24,998 9,34,00,677 8,19,19,266
Total 8,51,47,898 9,50,20,550 8,24,12,848
(i) Disclosure under the Micro, Small and Medium Enterprises Development Act, 2006 :
Amount due to Micro, Small and Medium Enterprises as on 31st March, 2018 are disclosed on the basis of information available with the Company regarding status of the suppliers is as follows :
ParticularsAs at
31st March,2018As at
31st March,2017As at
1st April, 2016
Principal Amount due and remaining unpaid 36,551 6,71,165 4,93,582
Interest due on above and the unpaid interest 402 25,228 15,674
Interest paid during the year - -
Payment made beyond the appointed day during the year 2,22,421 1,27,147 7,86,092
Interest due and payable for the period of delay 365 361 419
Interest accrued and remaining unpaid 767 25,589 16,093
Amount of further interest remaining due and payable in succeeding years 26,356 25,589 22,856
This information has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.
14.3 OTHER FINANCIAL LIABILITIES
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Current maturities of long-term Secured Debts (Refer Note no.11) 1,19,28,000 1,19,28,000 77,64,000
Unclaimed dividends 8,65,347 8,40,530 10,25,907
Unclaimed matured deposits and interest accrued thereon 18,710 23,022 1,41,482
Financial guarantee obligation 1,01,626 1,01,424 1,02,158
Total 1,29,13,683 1,28,92,976 90,33,548
15 OTHER CURRENT LIABILITIES
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Statutory dues payable 21,89,214 30,52,069 34,40,340
Advances from customers 21,05,584 22,87,202 9,43,226
Others -Net Salaries & Wages Payable 6,35,530 7,08,170 7,53,012
Total 49,30,328 60,47,441 51,36,578
16 PROVISIONS
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Provision for employee benefits:
Provision for bonus 18,65,335 17,78,902 16,93,824
Provision for compensated absences 6,78,402 13,70,903 14,13,648
Provision for gratuity 9,27,148 14,23,393 5,81,108
Total 34,70,885 45,73,198 36,88,580
Annual Report 2017 - 2018
71
17 REVENUE FROM OPERATIONS
Particulars For the year ended31st March, 2017
Sale of products
Manufactured goods
Plastic Film 95,77,11,933 1,04,13,60,057
Others 40,91,050 46,02,000
Traded goods
Others 2,72,43,892 2,16,95,716
Other operating revenues
Sale of Scrap 14,50,605 15,33,393
Total 99,04,97,480 1,06,91,91,166
For the year ended31st March, 2018
Footnote:
Impact of implementation of Goods and Services Tax (GST) on the financial statements
In accordance with Ind AS 18 on “Revenue” and Schedule III to the Companies Act, 2013, Sales for the previous year ended 31
March 2017 and for the period 01 April to 30 June 2017 were reported gross of Excise Duty and net of Value Added Tax (VAT)/ Sales
Tax. Excise Duty was reported as a separate expense line item. Consequent to the introduction of Goods and Services Tax (GST)
with effect from 1 July 2017, VAT/Sales Tax, Excise Duty etc. have been subsumed into GST and accordingly the same is not
recognised as part of sales as per the requirements of Ind AS 18. This has resulted in lower reported sales in the current year in
comparison to the sales reported under the pre-GST structure of indirect taxes. With the change in structure of indirect taxes,
expenses are also being reported net of taxes. Accordingly, Financial statements for the year ended 31 March 2018 and in
particular, Sales, absolute expenses, elements of Working Capital (Inventories, Trade payable, other current assets/current
liabilities etc.) and ratios in percentage of sales, are not comparable with the figures of the previous year.
18 OTHER INCOME
Particulars For the year ended31st March, 2017
Interest income
Interest from banks on Fixed Deposits 1,55,410 2,33,112
Interest on Deposit with Dakshin Gujarat Vij Co Ltd. & Others 5,12,318 4,63,662
Interest on Employees Loan 1,44,984 86,202
Interest on loan to subsidiary 26,46,917 25,38,855
Other non-operating income
Profit on sale of fixed assets 66,733 1,20,187
Liabilities / provisions no longer required written back (net) 2,49,140 1,13,191
Insurance Claim Received 3,10,758 5,12,303
Gain on foreign currency transactions and translation (net) 58,41,812 51,25,412
Miscellaneous income 10,96,330 10,56,875
Sundry Creditors W.back/ W.off 97,671 -
Export Incentive - MEIS Duty Script 49,20,182 -
Fair Valuation of financial guarantee 1,01,424 1,02,158
Total 1,61,43,679 1,03,51,957
For the year ended31st March, 2018
Ecoplast Limited
72
19 COST OF MATERIALS CONSUMED
Particulars For the year ended31st March, 2017
Opening Stock 4,13,40,870 3,68,59,657
Add: Purchases 71,72,42,699 72,86,19,742
ess: Closing Stock 5,42,40,334 4,13,40,870
Purchases Includes Stock in Trade 2,63,55,529 2,16,95,716
Total Cost of materials consumed 70,43,43,235 72,41,38,529
For the year ended31st March, 2018
20 CHANGES IN INVENTORIES OF FINISHED GOODS AND WORK IN PROGRESS
Particulars For the year ended31st March, 2017
Inventories at the end of the year:
Finished goods 2,17,65,943 1,28,58,700
Work-in-progress 97,91,314 1,26,60,043
3,15,57,257 2,55,18,743
Inventories at the beginning of the year:
Finished goods 1,28,58,700 1,17,38,238
Work-in-progress 1,26,60,043 1,11,71,075
2,55,18,743 2,29,09,313
Add/(Less) :- Variation in excise duty on opening and closing
stock of finished goods - (1,38,591)
Net (increase) / decrease (60,38,514) (24,70,839)
For the year ended31st March, 2018
21 EXCISE DUTY
Particulars For the year ended31st March, 2017
Excise duty (Gross) 3,11,49,764 10,77,85,516
Total 3,11,49,764 10,77,85,516
For the year ended31st March, 2018
22 EMPLOYEE BENEFIT EXPENSES
Particulars For the year ended31st March, 2017
Salaries, Wages, Bonus and Other Allowances 6,37,47,241 5,88,46,190
Contributions to Provident and other funds 74,12,928 63,23,365
Staff Welfare expenses 14,80,127 11,37,853
Total 7,26,40,296 6,63,07,408
For the year ended31st March, 2018
Footnote:
Contribution to Provident and other funds includes contribution to Provident fund for directors Rs. 6,76,800 (For 31st March, 2017:
Rs. 6,04,800; For 1st April, 2016: Rs.5,40,000)
Annual Report 2017 - 2018
73
23 FINANCE COSTS
Particulars For the year ended31st March, 2017
Interest expense 1,32,14,204 1,59,06,832
Other Borrowing costs 21,72,843 26,09,162
Total 1,53,87,047 1,85,15,994
For the year ended31st March, 2018
24 OTHER EXPENSES
Particulars For the year ended31st March, 2017
Consumption of Stores and Spare parts 14,38,749 30,78,796
Consumption of Packing Materials 2,08,65,432 1,99,87,182
Consumption of Printing Cylinders 24,76,529 16,94,199
Power and fuel 4,30,35,733 4,30,44,473
Conversion Charges Paid 9,07,927 1,67,086
Rent Paid 32,000 -
Repairs and Maintenance - Buildings 22,22,045 14,66,789
Repairs and Maintenance - Machinery 74,90,682 60,51,850
Repairs and Maintenance - Others 7,89,706 6,33,338
Insurance 24,31,500 23,80,153
Rates and taxes 4,27,234 1,82,019
Communication 8,40,496 7,57,952
Travelling and Conveyance 65,58,689 42,54,056
Printing and Stationery 10,81,099 11,33,035
Freight and forwarding 1,18,61,959 1,10,12,948
Sales Commission 5,08,265 2,08,841
Sales discount - 3,00,648
Business promotion 64,399 87,013
Donations and contributions 3,45,000 3,00,000
Motor Car Expenses 8,34,686 7,91,851
Security Charges 18,17,909 16,80,668
Royalty Paid 44,92,543 53,80,400
Directors Sitting Fees 9,00,000 8,20,000
Commission to Non-Executive Directors 4,46,231 2,90,385
Legal and Professional 66,02,263 29,56,550
Payments to Auditors 7,28,722 10,82,141
Other Miscellaneous Expenses 47,80,558 50,02,083
Total 12,39,80,355 11,47,44,456
For the year ended31st March, 2018
Particulars For the year ended31st March, 2017
Payments to the auditors comprisesTo statutory auditorsAudit Fees 4,00,000 4,00,000Taxation Matters - 70,000Company Law Matters - 70,000Tax Audit Fees - 70,000Certification and Other Services 2,70,894 2,99,423Reimburesment of Expenses 57,828 1,72,718Total 7,28,722 10,82,141
For the year ended31st March, 2018
Ecoplast Limited
74
a. Equity Share Capital:
Particulars
Balance as at April, 2016 3,00,00,000
Changes in equity share capital during the year 2016-17 -
Balance as at the 31 March 2017 3,00,00,000
Changes in equity share capital during 2017-18 -
Balance as at the 31 March 2018 3,00,00,000
Amount
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31ST MARCH, 2018
Amount (Rs.)
b. Other Equity:
Particulars
As at 1st April, 2016 5,07,81,315 3,00,00,000 10,93,73,109 19,01,54,424
Profit for the year - - 2,30,65,546 2,30,65,546
Other comprehensive income for the year - - 0
Remeasurement of the Net Defined benefit
liability/asset, net of tax effect - - (18,74,764) (-18,74,764)
As at 31st March, 2017 5,07,81,315 3,00,00,000 13,24,38,655 (18,74,764) 21,13,45,206
Profit for the year 2,97,37,815 2,97,37,815
Corporate Dividend (36,00,000) (36,00,000)
Corporate Dividend Tax (7,32,875) (7,32,875)
-
Other comprehensive income for the year
Remeasurement of the Net Defined benefit
liability/asset, net of tax effect 3,46,294 3,46,294
As at 31st March, 2018 5,07,81,315 3,00,00,000 15,78,43,595 (15,28,470) 23,70,96,440
Reserves and Surplus
GeneralReserve
Total EquityOther
ComprehensiveIncome (OCI)
SecuritiesPremium
RetainedEarnings
25. FIRST-TIME ADOPTION OF IND AS:
These are the Company’s first financial statements prepared in accordance with Ind AS.
The Company has adopted Indian Accounting Standards (Ind AS) notified by the Ministry of Corporate Affairs with effect from
1st April, 2017, with a transition date of 1st April, 2016. Ind AS 101 - First time adoption of Indian Accounting Standards
requires that all Ind AS's and interpretations that are issued an effective for the first Ind AS financial statements which is for the
year ended 31st March, 2018 for the Company, be applied retrospectively and consistently for all financial years presented.
Set out below are the Ind AS 101 optional exemptions availed as applicable and mandatory exceptions applied in the transition
from previous GAAP to Ind AS.
A. Optional Exemptions availed:
(a) Deemed Cost
The Company has elected to continue with the carrying value for all of its property, plant and equipment and Intangible assets
as recognized in the financial statement as at 31.03.2016, measured as per the previous GAAP and use that as its deemed
cost as at the transition date.
Annual Report 2017 - 2018
75
(b) Investments in subsidiary
The Company has elected to continue with the carrying amount of investment as recognized in the financial statement as at
31.03.2016, measured as per the previous GAAP and used that as its deemed cost as at the transition date.
B. Applicable Mandatory Exceptions
(a) Estimates
An entity’s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for
the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies).
Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous
GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not
required under previous GAAP:
(i) Impairment of financial assets based on expected credit loss model.
(b) Derecognition of financial assets and financial liabilities
Ind AS 101 requires a first time adopter to apply the derecognition provisions of Ind AS 109 prospectively for transactions
occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows the first time adopter to apply the de-
recognition requirement in Ind AS 109 retrospectively from the date to the entities choosing, provided that the information
needed to apply Ind AS 109 to financial assets and financial liabilities to de-recognized as a result of past transactions was
obtained at the time of initially accounting for those transactions. The Company has elected to apply the de-recognition
provision of Ind AS 109 prospectively from the date of transition to Ind AS.
(c) Classification and measurement of financial assets
As required under Ind AS 101 the Company has assessed the classification and measurement of financial assets on the basis
of the facts and circumstances that exist at the date of transition to Ind AS. Where practicable, measurement of financial
assets accounted at amortized cost has been done retrospectively.
(d) Impairment of Financial Assets
Ind AS 101 requires an entity to apply the Ind AS requirements retrospectively if it is practicable without undue cost and effort to
determine the credit risk that debt financial instruments where initially recognized. The company has measured impairment
losses on financial assets as on the date of transition i.e. 1st April, 2016 in view of cost and effort.
C. Transition to Ind AS - Reconciliations
The following reconciliations provide a quantification of the effect of significant differences arising from the transition from
previous GAAP to Ind AS as required under Ind AS 101:
(i) Reconciliation of Balance sheet as at 1st April, 2016 (Transition Date);
(ii) Reconciliation of Balance sheet as at 31st March, 2017;
(iii) Reconciliation of Total Comprehensive Income for the year ended 31st March, 2017
(iv) Reconciliation of Total Equity as at 1st April, 2016 and as at 31st March, 2017;
(v) Adjustments to Cash Flow Statements as at 31st March, 2017
The presentation requirements under previous GAAP differs from Ind AS, and hence, previous GAAP information has been
regrouped for ease of reconciliation with Ind AS. The re-grouped previous GAAP information is derived from the Financial
Statements of the Company prepared in accordance with previous GAAP.
Ecoplast Limited
76
(i)
& (
ii)
Reco
ncilia
tio
n o
f B
ala
nce s
heet
as a
t 1st
Ap
ril, 2
016 (
Tra
nsit
ion
Date
) an
d 3
1st
Marc
h, 2017:
Pa
rtic
ula
rs
As
at 3
1st M
arch
, 201
7(E
nd o
f the
last
per
iod
pres
ente
d un
der
prev
ious
GA
AP
)N
ote
sP
rev
iou
sG
AA
P
Am
ou
nt
as
pe
r In
d A
Sb
ala
nc
e s
he
et
Effe
cts
of tr
ansi
tion
to In
d A
S (in
clud
ing
recl
assi
ficat
ions
)
As
at 1
st A
pri
l, 20
16 (
Dat
e o
f tr
ansi
tio
n)
Pre
vio
us
GA
AP
Am
ou
nt
asp
er In
d A
Sb
alan
ce s
hee
t
Effe
cts
of tr
ansi
tion
to In
d AS
(inc
ludi
ngre
clas
sific
atio
ns)
(1)
No
n-c
urr
en
t assets
(a)
Pro
pert
y, P
lant
and E
quip
ment
12
,66
,35
,19
2-
12
,66
,35,1
92
10,4
7,7
6,7
57
- 1
0,4
7,7
6,7
58
(b)
Capita
l work
-in-p
rogre
ss 3
8,4
7,3
66
-
38
,47,3
66
6,4
0,9
59
-
6,4
0,9
59
(c)
Inve
stm
ent
in S
ubsi
dia
ries
and J
oin
t V
en
ture
C 8
1,7
6,2
57
1
,47
,47
,16
5
2,2
9,2
3,4
22
81,7
6,2
57
1,4
6,4
5,7
41
2,2
8,2
1,9
98
(d)
Fin
ancia
l Ass
ets
-
-
(
i) L
oan
sC
4,9
0,0
0,0
30
(
1,5
8,1
6,2
60
) 3
,31
,83,7
71
4,2
5,1
3,3
23
(1,4
4,4
1,4
25)
2,8
0,7
1,8
98
(e)
Oth
er
non-c
urr
ent
ass
ets
-
37
,82
,43
9
37
,82,4
39
50,9
2,4
14
-
50,9
2,4
14
To
tal n
on
-cu
rren
t a
ssets
18
,76
,58
,84
5
27
,13
,34
4
19
,03
,72,1
90
16,1
1,9
9,7
10
2,0
4,3
16
16,1
4,0
4,0
27
(2)
Cu
rren
t assets
(a)
Inve
nto
ries
10
,32
,94
,89
2
-
10
,32
,94,8
92
8,5
5,2
9,0
89
-
8,5
5,2
9,0
89
(b)
Fin
ancia
l Ass
ets
-
-
(
i) T
rad
e R
ece
ivable
sB
19
,27
,85
,52
1
(2
,54
,28
8)
19
,25
,31,2
33
16,8
1,6
3,3
38
(792)
16,8
1,6
2,5
46
(
ii) C
ash
and c
ash
equiv
ale
nts
11
,69
,91
5
-
11
,69,9
15
10,7
5,6
81
-
10,7
5,6
81
(
iii)
Ban
k bala
nce
s oth
er
than (
iii)
abo
ve 3
2,9
6,6
58
-
32
,96,6
58
28,1
9,0
86
-
28,1
9,0
86
(
iv)
Loa
ns
91
,61
,71
8
(8
1,2
2,2
56
) 1
0,3
9,4
62
9,1
1,8
77
-
9,1
1,8
77
(
v) O
ther
financi
al a
ssets
-
19
,40
,91
8
19
,40,9
18
13,3
6,6
43
-
13,3
6,6
43
(c)
Oth
er
curr
ent
ass
ets
23
,01
,73
2
61
,30
,40
3
84
,32,1
35
55,6
5,1
48
-
55,6
5,1
48
To
tal cu
rren
t assets
31
,20
,10
,43
6
(3
,05
,22
3)
31
,17
,05,2
13
26,5
4,0
0,8
62
(792)
26,5
4,0
0,0
70
To
tal A
ss
ets
49
,96
,69
,28
1
24
,08
,12
1
50
,20
,77,4
03
42,6
6,0
0,5
72
2,0
3,5
24
42,6
8,0
4,0
97
EQ
UIT
Y A
ND
LIA
BIL
ITIE
S
Eq
uit
y
(a)
Equity
Share
capita
l 3
,00
,00
,00
0
-
3,0
0,0
0,0
00
3,0
0,0
0,0
00
-
3,0
0,0
0,0
00
(b)O
ther
Equity
20
,96
,94
,00
6
16
,51
,19
9
21
,13
,45,2
06
19,0
0,1
9,0
20
1,3
5,4
04
19,0
1,5
4,4
24
Tota
l equity
23
,96
,94
,00
6
16
,51
,19
9
24
,13
,45,2
06
22,0
0,1
9,0
20
1,3
5,4
04
22,0
1,5
4,4
24
Lia
bilit
ies
(1)
No
n-c
urr
en
t li
ab
ilit
ies
(a)
Fin
ancia
l Lia
bili
ties
(i)
Borr
ow
ings
3,0
7,5
5,0
00
(
1,8
2,1
85
) 3
,05
,72,8
15
2,2
3,6
1,0
18
-
2,2
3,6
1,0
18
(b)
Pro
visi
ons
43
,00
,20
0
-
43
,00,2
00
34,7
5,1
87
-
34,7
5,1
87
(c)
Defe
rre
d t
ax
liabili
ties
(Net)
82
,20
,75
9
8,3
7,6
83
9
0,5
8,4
42
80,2
1,1
90
(34,0
39)
79,8
7,1
52
To
tal n
on
cu
rren
t li
ab
ilit
ies
4,3
2,7
5,9
59
6
,55
,49
8
4,3
9,3
1,4
57
3,3
8,5
7,3
95
(34,0
39)
3,3
8,2
3,3
57
(2)
Cu
rren
t liab
ilit
ies
(a)
Fin
ancia
l Lia
bili
ties
(i)
Borr
ow
ings
9,8
2,6
6,5
75
-
9,8
2,6
6,5
75
7,2
5,5
4,7
62
-
7,2
5,5
4,7
62
(
ii) T
rad
e p
aya
ble
s 9
,50
,20
,55
0
-
9,5
0,2
0,5
50
8,2
4,1
2,8
48
-
8,2
4,1
2,8
48
(
iii)
Oth
er
financi
al l
iabili
ties
A -
1,2
8,9
2,9
76
1
,28
,92,9
76
89,3
1,3
90
1,0
2,1
58
90,3
3,5
48
(b)
Oth
er
curr
ent
liabili
ties
1,8
8,3
8,9
93
(
1,2
7,9
1,5
52
) 6
0,4
7,4
41
51,3
6,5
78
-
51,3
6,5
78
(c)
Pro
visi
ons
45
,73
,19
8
-
45
,73,1
98
36,8
8,5
80
-
36,8
8,5
80
To
tal cu
rren
t li
ab
ilit
ies
21
,66
,99
,31
6
1,0
1,4
24
2
1,6
8,0
0,7
40
17,2
7,2
4,1
58
1,0
2,1
58
17,2
8,2
6,3
16
TO
TA
L E
QU
ITY
AN
D L
IAB
ILIT
IES
49
,96
,69
,28
1
24
,08
,12
2
50
,20
,77,4
03
42,6
6,0
0,5
72
2,0
3,5
24
42,6
8,0
4,0
97
Annual Report 2017 - 2018
77
(iii) Reconciliation of Total Comprehensive Income for the year ended 31st March, 2017:
Particulars
I Revenue From Operations 96,14,05,650 10,77,85,516 1,06,91,91,166
II Other Income A, C 77,10,944 26,41,013 1,03,51,957
III Total Income (I+II) 96,91,16,594 11,04,26,529 1,07,95,43,123
IV EXPENSES
Cost of materials consumed 72,41,38,529 - 72,41,38,529
Changes in inventories of finished goods, stock in trade and
work-in-progress (24,70,839) - (24,70,839)
Excise Duty - 10,77,85,516 10,77,85,516
Employee benefits expense D 6,77,16,338 (14,08,930) 6,63,07,408
Finance costs 1,85,15,994 - 1,85,15,994
Depreciation and amortization expense 1,78,57,267 - 1,78,57,267
Other expenses B 11,44,90,961 2,53,496 11,47,44,457
Total expenses (IV) 94,02,48,249 10,66,30,082 1,04,68,78,331
V Profit/(loss) before tax (III-IV) 2,88,68,345 37,96,447 3,26,64,792
V Tax expense:
VI (1) Current tax 89,33,000 - 89,33,000
(2) Deferred tax E 1,99,569 4,05,887 6,05,456
(3) Tax in respect of Earlier Years 60,791 - 60,791
91,93,360 4,05,887 95,99,247
IX Profit for the year (V-VI) 1,96,74,985 33,90,560 2,30,65,545
X Other Comprehensive Income
XI (i) Items that will not be reclassified to profit or loss
XII - Remeasurement of Defined benefit plans D - (14,08,930) (14,08,930)
(ii) Income tax relating to items that will not be
reclassified to profit or loss -
XIII - Remeasurement of Defined benefit plans - (4,65,835) (4,65,835)
XIV Total comprehensive income for the year (VII+VIII) 1,96,74,985 15,15,795 2,11,90,780
PreviousGAAP
Effects oftransitionto Ind AS
Amountas per IndAS SOP&L
SrNo
Notes
Reconciliation of Total Comprehensive Income:
Particulars For the year ended31st March, 2017
Net Profit as per Previous GAAP 1,96,74,985
(i) Fair valuation of financial guarantee A 1,02,158
(ii) Actuarial (gain)/loss on employee defined benefit plans recognized in
Other Comprehensive Income D 14,08,930
(iii) Loss allowance of trade receivables as per expected credit loss model B (2,53,496)
(iv) Interest on loan to subsidiary C 25,38,855
(v) Deferred tax impact E (4,05,887)
Net profit after tax as per Ind AS 2,30,65,545
Other Comprehensive Income (net of taxes) (18,74,765)
Total Comprehensive income as per Ind AS 2,11,90,780
Note
Ecoplast Limited
78
(iv) Reconciliation of Total Equity as at 1st April, 2016 and as at 31st March, 2017:
Particulars NoteAs at
31st March,2017As at
1st April, 2016
Equity as per Previous GAAP 23,96,94,006 22,00,19,020
(i) Fair valuation of financial guarantee A 2,04,316 1,02,158
(ii) Loss allowance of trade receivables as per expected credit loss model B (2,54,288) (792)
(iii) Interest on loan to subsidiary C 25,38,855 -
(iv) Deferred tax impact E (8,37,683) 34,039
Total Impact 16,51,200 1,35,405
Total Equity as per Ind AS 24,13,45,206 22,01,54,424
(v) Adjustments to the Statement of Cash Flows as at 31st March, 2017
The Ind AS adjustments are non cash adjustments. Consequently, Ind AS adoption has no impact on the net cash flow for the
year ended 31st March, 2017 as compared with the previous GAAP
Notes to reconciliations:-
A Financial Guarantee
Under previous GAAP, financial guarantee obligation given to subsidiary was only disclosed and not recognised
Under Ind AS, the company recognises the same as income and obligation
B Trade receivables
"Under previous GAAP, the Company had recognized provision on trade receivables based on the expectation of the
Company.Under Ind AS the Company provides loss allowance on receivables based on the Expected Credit Loss (ECL)
model which is measured following the ""simplified approach"" at an amount equal to the lifetime ECL at each reporting date."
Particulars As at31st March,2017
As at1st April, 2016
Carrying value of Allowance for doubtful trade receivables using ECL model 792
Increase in the provision during the year 2,53,496 792
C Interest free loan to subsidiary
Under previous GAAP, there was no treatment of interest received on interest free loan given to subsidiary company
Under Ind AS, loan given to subsidiary has been fair valued and interest is recognised on EIR basis
D Remeasurement of defined benefit liabilities
"Under previous GAAP, actuarial gains and losses were recognized in profit or loss.Under Ind AS, the actuarial gains and
losses form part of remeasurement of the net defined benefit liability/asset which is recognized in other comprehensive
income. Consequently, the tax effect of the same has also been recognized in other comprehensive income under Ind AS
instead of profit or loss."
Particulars For the year ended31st March, 2017
Actuarial gains/(loss) (14,08,930)
Tax effect thereon (4,65,835)
Annual Report 2017 - 2018
79
E Deferred Tax
"Under previous GAAP, deferred tax accounting was done using the income statement approach, which focuses on
differences between taxable profits and accounting profits for the period. Under Ind AS, accounting of deferred taxes is done
using the Balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or
liability in the balance sheet and its tax base.”
For detailed working refer note 13 in the financial statement
F Other Comprehensive Income
"Under previous GAAP, there was no concept of other comprehensive income. Under Ind AS specified items of income,
expense, gains or losses are required to be presented in other comprehensive income. “
26 Earnings per share (EPS)
Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the
weighted average number of Equity shares outstanding during the year.
Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company by the weighted
average number of Equity shares outstanding during the year.
Particulars For the year ended31st March, 2018
Profit attributable to equity holders of the company for basic and diluted
earnings per share 2,97,37,815 2,30,65,545
For the year ended31st March, 2017
(i) Profit attributable to Equity holders of Company
Particulars For the year ended31st March, 2018
Number of issued equity shares 30,00,000 30,00,000
Nominal Value per share 10 10
Weighted average number of shares at 31st March for basic and diluted
earnings per share 30,00,000 30,00,000
Basic and Diluted earnings per share (in Rs) 9.91 7.69
For the year ended31st March, 2017
(ii) Weighted average number of ordinary shares
Particulars For the year ended31st March, 2018
Current tax expense
Current year 1,67,57,000 89,33,000
Short/(Excess) provision of earlier years - 60,791
Deferred tax expense
Origination and reversal of temporary differences 4,73,288 6,05,456
Tax expense recognised in the income statement 1,72,30,288 95,99,247
For the year ended31st March, 2017
27 Tax Expense
(a) Amounts recognised in profit and loss
Ecoplast Limited
80
Particulars For the year ended31st March, 2018
Items that will not be reclassified to profit or loss
Remeasurements of the defined benefit plans 2,60,248 86,046 3,46,294 (14,08,930) (4,65,835) (18,74,765)
2,60,248.00 86,045.80 3,46,293.80 (14,08,930) (4,65,835) (18,74,765)
For the year ended31st March, 2017
(b) Amounts recognised in other comprehensive income
Before TaxTax
(expense) Net of Tax Before TaxTax
(expense) Net of Tax
Particulars For the year ended31st March, 2018
Profit before tax 4,69,68,103 3,26,64,792
Tax using the Company’s domestic tax rate 33.06% 1,55,27,655 33.06% 1,07,99,960
Tax effect of:
Expenses not deductible for tax purposes 2.61% 12,27,929 -5.72% (18,67,025)
Tax due to change in tax rate
Others 1.01% 4,74,704 2.04% 6,66,311
Effective income tax rate 36.69% 1,72,30,288 29.39% 95,99,246
For the year ended31st March, 2017
(c) Reconciliation of effective tax rate
Amounts% Amounts%
(d) Movement in deferred tax
Particulars
As at 31st March, 2017
Tax effect of items constituting deferred tax liability
On difference between book balance and tax
balance of fixed assets 1,31,18,441 (10,77,512) 1,20,40,928 1,20,40,928
Loan to subsidiary 8,39,421 8,75,150 17,14,572 17,14,572
Financial Guarantee 243 (67) 176 176
Provision for compensated absences, gratuity
and other employee benefits (29,33,812) 5,15,191 (86,046) (25,04,666) 25,04,666
Provision for doubtful debts / advances (3,46,026) 1,60,526 (1,85,500) 1,85,500
Provision for diminution in the value of investments (15,86,049) - (15,86,049) 15,86,049
Loan to subsidiary - - - -
Financial Guarantee (33,777) - (33,777) 33,777
Tax assets (Liabilities) 90,58,442 4,73,288 (86,046) 94,45,684 43,09,992 1,37,55,676
Reversal of Opening DTL - - -
Tax assets (Liabilities) (Net) 90,58,442 4,73,288 (86,046) 94,45,684 43,09,992 1,37,55,676
Net balanceApril 1, 2016
As at 31st March, 2018
Recognizedin profitor loss
Recognizedin OCI
Net Deferredtax asset
Deferredtax liability
Annual Report 2017 - 2018
81
Particulars
As at 1st April, 2016
Net balanceApril 1, 2016
As at 31st March, 2017
Recognizedin profitor loss
Recognizedin OCI
Net Deferredtax asset
Deferredtax liability
Tax effect of items constituting deferred tax liability
On difference between book balance and
tax balance of fixed assets 1,22,70,809 8,47,632 - 1,31,18,441 - 1,31,18,441
Loan to subsidiary - 8,39,421 - 8,39,421 - 8,39,421
Financial Guarantee - 243 - 243 - 243
Provision for compensated absences, gratuity
and other employee benefits (23,68,556) (10,31,090) 4,65,835 (29,33,812) 29,33,812 -
Provision for doubtful debts / advances (2,95,275) (50,750) (3,46,026) 3,46,026 -
Provision for diminution in the value of investments (15,86,049) - (15,86,049) 15,86,049 -
Loan to subsidiary - - - - -
Financial Guarantee (33,777) - (33,777) 33,777 -
Tax assets (Liabilities) 79,87,152 6,05,456 4,65,835 90,58,442 48,99,663 1,39,58,105
Reversal of Opening DTL - - - - - -
Tax assets (Liabilities) (Net) 79,87,152 6,05,456 4,65,835 90,58,442 48,99,663 1,39,58,105
28 Financial instruments
A. Capital Management:
"The Company’s policy is to maintain a strong capital base so as to ensure that the Company is able to continue as going
concern to sustain future development of the business. The capital structure of the Company is based on management’s
judgement of its strategic and day-to-day needs with a focus on total equity so as to maintain investor, creditors and market
conditions.”
Its guiding principles:
i) Maintenance of financial strength to ensure the highest ratings;
ii) Ensure financial flexibility and diversify sources at financing;
iii) Manage Company exposure in forex to mitigate risks to earnings;
iv) Leverage optimally in order to maximum shareholders returns while maintaining strength and flexibility of the balance sheet.
The policy is also adjusted based on underlying macro-economic factors affecting business environment, financial and market
conditions.
The Company monitors capital on the basis of the following debt equity ratio:
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Borrowings 1,87,06,045 3,05,72,815 2,23,61,018
Less: Cash and bank balances 15,31,176 11,69,915 10,75,681
Net debt 1,71,74,869 2,94,02,900 2,12,85,337
Total equity 26,70,96,439 24,13,45,206 22,01,54,424
Net debt to equity ratio 6.43% 12.18% 9.67%
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B Fair value measurement hierarchy:
Particulars
As at 31st March, 2018 As at 1st April, 2016
Financial assets
At FVTPL - - - - - - - - - - -
At FVTOCI - - - - - - - - - - -
At Amortized cost
Trade Receivables 16,59,10,607 - - - 19,25,31,233 - - - 16,81,62,546 - - -
Cash and cash equivalents 15,31,176 - - - 11,69,915 - - - 10,75,681 - - -
Bank balances other
than above 27,13,904 - - - 32,96,658 - - - 28,19,086 - - -
Loans 18,45,970 - - - 3,42,23,233 - - - 2,89,83,775 - - -
Other financial assets 8,50,242 - - - 19,40,918 - - - 13,36,643 - - -
Financial liabilities
At FVTPL - - - - - - - - - - -
At Amortized cost
Borrowings 9,28,22,990 - - - 12,88,39,390 - - - 9,49,15,779 - - -
Trade payables 8,51,47,897 - - - 9,50,20,550 - - - 8,24,12,848 - - -
Other financial liabilities 1,29,13,683 - - - 1,28,92,976 - - - 90,33,548 - - -
As at 31st March, 2017
CarryingAmount
Level of input used in
Level 1 Level 2 Level 3
CarryingAmount
Level of input used in
Level 1 Level 2 Level 3
CarryingAmount
Level of input used in
Level 1 Level 2 Level 3
The fair values of the financial assets and liabilities are defined as the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants at the measurement date. Methods and assumptions
used to estimate the fair values are consistent with those used for the year ended 31st March, 2017.
The financial instruments are categorized into three levels based on the inputs used to arrive at fair value measurements as
described below:
i) Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.
ii) Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques
which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant
inputs required to fair value an instrument are observable, the instrument is included in level 2. In the case of Derivative
contracts, the Company has valued the same using the forward exchange rate as at the reporting date.
iii) Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
C Calculation of fair values:
Financial assets and liabilities measured at fair value as at Balance Sheet date:
Other financial assets and liabilities:-
- Cash and cash equivalents , trade receivables, other financial assets , trade payables, and other financial liabilities have fair
values that approximate to their carrying amounts due to their short-term nature.
- Loans have fair values that approximate to their carrying amounts as it is based on the net present value of the anticipated
future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities.
Annual Report 2017 - 2018
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29 Financial risk management
Risk management framework
The Company’s financial risk management is an integral part of how to plan and execute its business strategies. The Company’s business activities are exposed to a variety of financial risks, namely liquidity risk, market risks, commodity risk and credit risk. The Company’s senior management has the overall responsibility for establishing and governing the Company’s risk management framework. The Company’s risk management policies are established to identify and analyze the risks faced by the Company, to set and monitor appropriate risk limits and controls, periodically review the changes in market conditions and reflect the changes in the policy accordingly. The key risks and mitigating actions are also placed before the Audit Committee of the Company.
The Company has exposure to the following risks arising from financial instruments:
A) Credit risk;
B) Liquidity risk;
C) Market risk; and
D) Interest rate risk
E) Commodity Risk
A Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual obligations.
Trade and other receivables
The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer and including the default risk of the industry, also has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.
Other than trade and other receivables, the Company has no other financial assets that are past due but not impaired.
"The Company uses an allowance matrix to measure the expected credit losses of trade receivables. The loss rates are computed using a 'roll rate' method based on the probability of receivable progressing through successive stages of delinquency to write off. “
The following table provides information about the exposure to credit risk and ECLs for trade receivables:
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Not due 11,38,53,779 14,91,61,988 13,14,44,258
1 - 180 Days 5,17,45,133 3,91,85,442 3,67,15,911
181-360 Days 3,22,442 42,76,173 -
361-500 Days 7,168 1,61,919 3,169
More Than 500 days 5,43,137 7,92,277 8,92,277
Allowance for doubtful trade receivables
(Expected credit loss allowance) (5,61,051) (10,44,981) (8,91,485)
Total 16,59,10,608 19,25,32,818 16,81,64,130
Ageing of Trade receivables
Particulars As at31st March,2018
As at31st March,2017
Opening provision 10,46,565 8,93,069
Add: Additional provision made 1,53,496
Provision Reverse (4,85,514)
Closing provision 5,61,051 10,46,565
Movement in provisions of doubtful debts
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Cash and cash equivalents
The Company held cash and cash equivalents of Rs. 15,31,177 as at 31st March, 2018 (31st March, 2017: Rs. Rs.11,69,915, 1st April, 2016 : Rs.10,75,681). The cash and cash equivalents are held with banks.
B Liquidity risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time, or at a reasonable price.
Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has built an appropriate liquidity risk management framework for the management of the Company's short, medium and long term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities , by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.
Exposure to liquidity risk
The following table shows the maturity analysis of the Company's financial liabilities based on contractually agreed undiscounted cash flows as at the Balance Sheet date:
ParticularsAs at 1st April, 2016
Non-derivative financial liabilities
Borrowings 9,49,15,779 7,25,54,762 2,23,61,018
Trade and other payables 8,24,12,848 8,24,12,848 - -
Other financial liabilities 90,33,548 90,33,548 - -
Derivative financial liabilities - - - -
18,63,62,175 16,40,01,158 2,23,61,018 0
Carrying amount
Withinone year
Carryingamount
More thanfive years
One to fiveyears
ParticularsAs at 1st April, 2017
Non-derivative financial liabilities
Borrowings 12,88,39,390 9,82,66,575 3,05,72,815
Trade and other payables 9,50,20,550 9,50,20,550 - -
Other financial liabilities 1,28,92,976 1,28,92,976 - -
Derivative financial liabilities - - - -
23,67,52,916 20,61,80,101 3,05,72,815 -
Carrying amount
Withinone year
Carryingamount
More thanfive years
One to fiveyears
ParticularsAs at 1st April, 2018
Non-derivative financial liabilities
Borrowings 9,28,22,990 7,41,16,945 1,87,06,045
Trade and other payables 8,51,47,897 8,51,47,897 - -
Other financial liabilities 1,29,13,683 1,29,13,683 - -
Derivative financial liabilities -
19,08,84,570 17,21,78,525 1,87,06,045 -
Carrying amount
Withinone year
Carryingamount
More thanfive years
One to fiveyears
Annual Report 2017 - 2018
85
Guarantees issued by the Company on behalf of subsidiary are with respect to borrowings raised by the respective entity. These amounts will be payable on default by the concerned entity. As of the reporting date, the subsidiary has not defaulted and hence, the Company does not have any present obligation to third parties in relation to such guarantees.
C Market risk
"Market risk is the risk that changes in market prices – such as foreign exchange rates, interest rates and equity prices – will affect the Company’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return."
The Company operates internationally and portion of the business is transacted in several currencies. Consequently the Company is exposed to foreign exchange risk through its sales and services in overseas and purchases from overseas suppliers in various foreign currencies. Exports of the company are significantly lower in comparison to its imports.
The Company holds derivative financial instruments such as foreign exchange forward contract to mitigate the risk of changes in exchange rates on foreign currency exposure. The exchange rate between rupee and foreign currency has changed substantially in recent years and may fluctuate substantially in future. Consequently, the results of the Company's operation are adversely affected as the rupee appreciates/ depreciates against these currencies.
The carrying amounts of the Company’s foreign currency dominated monetary assets and monetary liabilities at the end of the reporting period are as follows:
Particulars Liabilities (INR)
In US Dollars (USD) 2,85,53,241 3,23,90,965 3,08,35,000 - 1,41,92,252 1,00,47,000
In Euro (EUR) - 12,85,931 21,34,324 - - -
As at31st March,
2018
Assets (INR)
As at31st March,
2017
As at1st April,
2016
As at31st March,
2018
As at31st March,
2017
As at1st April,
2016
Particulars Liabilities (Foreign currency)
In US Dollars (USD) 4,40,362 4,78,683 4,86,000 - 2,18,024 1,53,000
In Euro (EUR) - 18,036 28,176 - - -
As at31st March,
2018
Assets (Foreign currency)
As at31st March,
2017
As at1st April,
2016
As at31st March,
2018
As at31st March,
2017
As at1st April,
2016
Foreign currency sensitivity analysis
The Company is mainly exposed to the currency : USD, EUR
The following table details the Company’s sensitivity to a 5% increase and decrease in the Rupee against the relevant foreign currencies. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the reasonably possible change in foreign exchange rates. This is mainly attributable to the net exposure outstanding on receivables or payables in the Company at the end of the reporting period. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 5% charge in foreign currency rate. A positive number below indicates an increase in the profit or equity where the Rupee strengthens 5% against the relevant currency. For a 5% weakening of the Rupee against the relevant currency, there would be a comparable impact on the profit or equity, and the balances below would be negative.
Impact on profit or loss and total equity
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Increase in exchange rate by 5% (14,27,662) (9,09,936) (10,39,400)
Decrease in exchange rate by 5% 14,27,662 9,09,936 10,39,400
USD impact
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Increase in exchange rate by 5% - (64,297) (1,06,716)
Decrease in exchange rate by 5% - 64,297 1,06,716
Euro impact
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The Company, in accordance with its risk management policies and procedures, enters into foreign currency forward contracts to manage its exposure in foreign exchange rate variations. The counter party is generally a bank. These contracts are for a period between one day and one year. The above sensitivity does not include the impact of foreign currency forward contracts which largely mitigate the risk.
D Interest rate risk
There is no material interest risk relating to the Company’s financial liabilities which are detailed in note 11 and 14.1
E Commodity Risk
Principal Raw Material for Company’s products is variety of plastic polymers which are Derivatives of Crude Oil. Company sources its raw material requirement primarily from US and Europe. Domestic market prices are also generally remains in sync with international market price scenario.
Volatility in Crude Oil prices, Currency fluctuation of Rupee vis-à-vis other prominent currencies coupled with demand–supply scenario in the world market affect the effective price and availability of polymers for the Company. Company effectively manages with availability of material as well as price volatility through:
1. Widening its sourcing base
2. Appropriate contracts and commitments
3. Well planned procurement & inventory strategy
30 Employee Benefits
[A] Defined contribution plans:
The Company makes Provident Fund and Superannuation Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs.33,67,842 (As at 31st March, 2017: Rs.31,72,950 ; As at 1st April, 2016: Rs.29,37,815) for Provident Fund contributions and Rs.24,10,166 (As at 31st March, 2017: Rs. 22,57,061; As at 1st April, 2016: Rs.20,24,683) for Superannuation 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.
[B] Defined benefit plan:
The Employees' gratuity fund scheme managed by LIC of India . is a defined benefit plan. The present value of obligation for gratuity and leave encashment is determined on the basis of Actuarial Valuation Report made at the year end.
i) On normal retirement / early retirement / withdrawal / resignation: As per the provisions of Payment of Gratuity Act, 1972 with vesting period of 5 years of service.
ii) On death in service: As per the provisions of Payment of Gratuity Act, 1972 without any vesting period.
These plans typically expose the Company to acturial risks such as : investment risk , interest risk , longevity risk and salary risk.
Investment risk:
The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create plan deficit.
Interest risk:
A decrease in the bond interest rate will increase the plan liability; however, this will be partially off set by an increase in the plan assets.
Longevity risk:
The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan’s liability.
Salary risk:
The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan’s liability.
The following table sets out the status of the gratuity plan and the amounts recognized in the Company's financial statements as at 31st March, 2018.
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87
a) Changes in present value of obligations (PVO)31st March,2018 31st March,2017 1st April, 2016
Present Value of Benefit Obligation at the Beginning of the Period 1,69,96,022 1,37,84,401 1,11,03,052
Interest cost 12,35,611 11,15,158 8,82,693
Past Service Cost 5,38,615
Current service cost 7,77,838 6,61,406 4,72,661
Benefits paid from the fund (25,08,094) - (20,308)
Actuarial (Gains)/Losses on Obligations - Due to Change
in Financial Assumptions (10,04,719) 30,79,762 (1,31,859)
Actuarial (Gains)/Losses on Obligations - Due to Experience 8,18,783 (16,44,705) 14,78,162
PVO at the end of the year 1,68,54,056 1,69,96,022 1,37,84,401
Gratuity - Funded
b) Fair value of plan assets:31st March,2018 31st March,2017 1st April, 2016
Fair value of plan assets at the beginning of the year 1,55,72,629 1,32,03,293 1,06,45,001
Adjustment to opening fair value of plan assets - - -
Return on plan assets excl. interest income 74,312 26,127 58,547
Interest income 11,32,130 10,68,146 8,46,278
Contributions by the employer 16,55,931 12,75,063 16,73,775
Benefits paid from the fund (25,08,094) - (20,308)
Fair value of plan assets at the end of the year 1,59,26,908 1,55,72,629 1,32,03,293
Gratuity - Funded
c) Amount to be recognized in the balance sheet:31st March,2018 31st March,2017 1st April, 2016
PVO at the end of period 1,68,54,056 1,69,96,022 1,37,84,401
Fair value of plan assets at end of the period 1,59,26,908 1,55,72,629 1,32,03,293
Funded status (Surplus/(Deficit)) (9,27,148) (14,23,393) (5,81,108)
Net (Liability)/Asset Recognized in the Balance Sheet (9,27,148) (14,23,393) (5,81,108)
Gratuity - Funded
d) Expense recognized in the statement of profit or loss:31st March,2018 31st March,2017 1st April, 2016
Current service cost 7,77,838 6,61,406 4,72,661
Net interest Cost 1,03,481 47,012 36,415
Past Service Cost 5,38,615
Expense recognized in the statement of profit or loss 14,19,934 7,08,418 5,09,076
Gratuity - Funded
e) Other comprehensive income (OCI):31st March,2018 31st March,2017 1st April, 2016
Actuarial (Gain)/Loss on Obligation for the period (1,85,936) 14,35,057 13,46,303
Return on plan assets excluding Interest Income (74,312) (26,127) (58,547)
Net (Income)/Expense For the Period Recognized in OCI (2,60,248) 14,08,930 12,87,756
Gratuity - Funded
f) Actual return on the plan assets:31st March,2018 31st March,2017 1st April, 2016
12,06,442 10,94,273 9,04,825
Gratuity - Funded
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88
g) Category of Assets31st March,2018 31st March,2017 1st April, 2016
Insurance Fund 1,59,26,908 1,55,72,629 1,32,03,293
Gratuity - Funded
h) Assumption:31st March,2018 31st March,2017 1st April, 2016
Expected Rate on Plan Assets 7.85% 7.27% 8.09%
Rate of Discounting 7.85% 7.27% 8.09%
Rate of Salary Increase 8.00% 8.00% 8.00%
Rate of Employee Turnover 2.00% 2.00% 2.00%
Mortality Rate during employment IALM(2006-08) IALM(2006-08) IALM(2006-08)
Mortality Rate After employment N.A N.A N.A
Gratuity - Funded
Assumption:
1. Analysis of Defined Benefit Obligation
The number of members under the scheme have increased by 4.95%. Similarly the total salary increased by 7.69% during the accounting period. The resultant liability at the end of the period over the beginning of the period has decreased by 34.86%.
2. Expected rate of return basis
The scheme funds are invested with Trustee of the Company which is based on rate of return declared by fund managers.
3. Description of Plan Assets
100 % of the Plan Asset is entrusted to trustees of the Company under their Group Gratuity Scheme.
Year PVO Payouts31st March,2018
PVO Payouts31st March,2017
1st Following Year 14,00,101 45,27,895
2nd Following Year 4,76,950 5,30,122
3rd Following Year 22,96,740 5,64,533
4th Following Year 4,62,223 19,32,112
5th Following Year 4,92,934 3,22,565
Sum of years 6 to 10 58,89,247 60,83,911
Sum of years 11 and above 3,54,91,971 1,96,95,196
j) Sensitivity analysis
Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate and expected salary increase. The sensitivity analysis below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.
Particulars 31st March,2018 31st March,2017
Projected Benefit Obligation on Current Assumptions 1,68,54,056 1,69,96,022
Delta Effect of +1% Change in Rate of Discounting (15,22,245) (11,03,302)
Delta Effect of -1% Change in Rate of Discounting 17,96,415 12,79,138
Delta Effect of +1% Change in Rate of Salary Increase 14,59,688 12,57,276
Delta Effect of -1% Change in Rate of Salary Increase (13,13,941) (11,05,891)
Delta Effect of +1% Change in Rate of Employee Turnover 67,466 (67,948)
Delta Effect of -1% Change in Rate of Employee Turnover (74,879) 75,959
Annual Report 2017 - 2018
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i) Expected Payout:
Although the analysis does not take account of the full distribution of cash flows expected under the plan, it does provide an approximation of the sensitivity of the assumptions shown.
Based on the actuarial valuation obtained in this respect, the following table sets out the status of the gratuity plan and the amounts recognised in the Company’s financial statements as at balance sheet date:
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Total employee benefit liabilities
Other current liabilities 15 - (14,23,393) (5,81,108)
Other current assets 8 (9,27,148) - -
Note
k) General Assumptions
(i) Leave Policy:
Leave balance as at the valuation date and each subsequent year following the valuation date to the extent not availed by the employee accumulated up to 31 March 2018 is available for encashment on separation from the company upto a maximum of 90 days
(ii) The assumption of future salary increases, considered in actuarial valuations, takes account of inflation, seniority, promotion, supply and demand and other relevant factors.
(iii) Liability on account of long term absences has been actuarially valued as per Projected Unit Credit Method.
(iv) Short term compensated absences have been provided on actual basis.
31 Related Party Transactions
Disclosure of transactions with Related Parties, as required by Ind AS 24 "Relate Party Disclosures" is given below :
(I) Name of the related party and nature of relationship: -
Particulars
A) Subsidiary Company
Synergy Films Pvt.Ltd.
Sales of Goods 3,06,53,482 2,41,44,463
Purchase of Goods 17,21,250 33,15,780
Balance Receivable - 40,30,290
Balance Payable - -
Inter Corporate Deposit Paid Including Interest 3,51,00,000 3,72,18,771
Collaterals Gurantee to Bank 4,06,50,497 4,05,69,598
B) Key Managerial Personnel (KMP)
Mr.J.B.Desai : Managing Director
Remuneration Paid 75,62,796 68,00,796
Dividend Paid 1,23,650 -
Sale of Used Car 2,95,000 -
Mr. P. P. Kharas : Chairman
Sitting Fees Paid 1,40,000 1,60,000
Commission Paid on Profit 58,077 61,861
Dividend Paid 98,376 -
Mr. B. B. Desai : Non Executive Director
Sitting Fees Paid - -
Commission Paid on Profit - 61,861
Dividend Paid - -
2017-18 2016-17Sr No
Ecoplast Limited
90
Particulars
Mrs. C. N. Patel : Non Executive Director
Sitting Fees Paid 80,000 1,20,000
Commission Paid on Profit 58,077 61,861
Dividend Paid 4,60,693 -
Mr. B. M. Desai : Non Executive/Independent Director
Sitting Fees Paid 2,30,000 1,40,000
Commission Paid on Profit 58,077 61,861
Dividend Paid 120 -
Mr. M. B. Desai : Non Executive/Independent Director
Sitting Fees Paid 2,40,000 2,00,000
Commission Paid on Profit 58,077 61,861
Dividend Paid 11,580 -
Mr. D. T.Desai : Non Executive/Independent Director
Sitting Fees Paid - -
Commission Paid on Profit - -
Dividend Paid - -
Mr. J. A. Moos : Non Executive/Independent Director
Sitting Fees Paid 2,10,000 2,00,000
Commission Paid on Profit 58,077 61,861
Dividend Paid 600 -
C) Others :
Mr. M. D. Desai : Chief Finance Officer
Remunearation Paid 26,31,348 24,35,376
Mr. Antony Alapat : Company Secrectory
Remuneration Paid 5,04,120 4,55,580
D) Company in which KMP / Relatives of KMP can
exercise significant influence
Propack Industries ( Prop.Kunal Plastics Pvt.Ltd.)
Sales of Goods 72,33,652 37,78,481
Purchase of Goods 31,74,252 66,25,597
Render Services 1,85,379 -
Receiving Services 10,79,090 11,06,894
Balance Receivable 17,659 -
Balance Payable 5,22,911 9,47,908
2017-18 2016-17Sr No
*As the liabilities for defined benefit plans are provided on actuarial basis for the Group as a whole, the amounts pertaining to Key
Management Personnel are not included.
Footnotes:
(i) All Related party transactions entered during the year were on ordinary course of business and are on arm's length basis.
(ii) Key Managerial Personnel are entitled to post-employment benefits and other long term employee benefits recognised as per
Ind AS 19 - ‘Employee Benefits’ in the financial statements. As these employee benefits are lump sum amounts provided on
the basis of actuarial valuation, the same is not included above.
Annual Report 2017 - 2018
91
35 (i) Capital Commitments
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
On account of Capital Commitments ( Net of advances) 64,53,142 - 1,38,53,610
TOTAL 64,53,142 - 1,38,53,610
Year ended
Estimated amount of contracts remaining to be executed on capital account and not provided for Rs 1,09,17,466 /- (March 2017 : ̀ NIL /- , March 2016 :` 1,77,15,110/-).
(ii) Contingent liabilities
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
The Company has given irrevocable and unconditional
Corporate Guarantee/ Collateral Securities to Bank of
Baroda-Bulsar on behalf of Synergy Films Pvt. Ltd.,
a Subsidiary company in which the company is holding 100%
of the equity shares as on 31/03/2018 as a collateral security
for Working capital. 4,06,50,497 4,05,69,598 4,08,63,282
On account of Income Tax / Sales Tax and Service Tax
demand under contest 12,53,988 12,03,484 10,99,269
TOTAL 12,53,988 12,03,484 10,99,269
Year ended
33 Segment information :
The Company's sole business segment is Plastic Films and all activities are incidental to this sole business segment. Given
this fact and that the Company services its domestic and export markets from India only, the financial statements reflect the
information required by Ind AS 108 ‘Operating Segments’ for the sole business segment of Plastic Films. The whole of the
business assets are situated in India.
34 Disclosure As per Regulation 34(3) and 53(f) of the SEBI (Listing obligation and Disclosure requirements) Regulations,2015
Name of Subsidiary Company : Synergy Films Private Limited
Amount Outstanding Maximum Balance outstandingduring the year end
As at31st March,
2018
As at31st March,
2017
As at1st April,
2016
As at31st March,
2018
As at31st March,
2017
As at1st April,
2016
Investment by Subsidiary inShares of the Company
As at31st March,
2018
As at31st March,
2017
As at1st April,
2016
3,72,18,771 3,72,18,771 3,72,18,771 Nil Nil Nil3,51,00,000 3,72,18,771 3,72,18,771
35 The Company has imported Plant and Machineries under Export Promotion Capital Goods Scheme (EPCG) without payment
of Custom Duty. In the event of non-fulfilment of export obligations as specified, Company may be held liable to pay custom
duty of Rs.32.21 lacs (Previous year Rs.65.65 lacs) in terms of the said Scheme. As on 31st March 2018 Company is not in any
default under the Scheme.
Ecoplast Limited
92
36 The Company prior to it being listed had issued Bonus shares on 29th June, 1994 for Rs. 10 Million (10,00,000 equity shares of
Rs. 10/- each) by capitalising part of its revaluation reserve. Accordingly, the paid up equity share capital of the company
stands increased by Rs. 10 Million and the revaluation reserve stands reduced by that amount. The issue of bonus shares as
aforesaid is contrary to the circular issued by the Department of Company Affairs issued in September, 1994 and the
recommendations of the Institute of Chartered Accountants of India issued in November, 1994. However, the Hon'ble
Supreme Court in the recent decision in the case of Bhagwati Developers Vs Peerless General Finance & Investment Co. &
others (2005) Comp LJ 377 (SC) has held that there is no specific bar under the Companies Act for issue of Bonus Shares out
of Revaluation Reserve and that the Department's Communique was advisory in nature, without any mandatory effect. The
Management is therefore of the opinion that both according to the accounting principles and provisions of Company Law, the
Company was justified in capitalizing its Revaluation Reserve.
37 Leases
Operating lease:
The Company procures godown on lease under operating leases. These rentals recognized in the Statement of Profit and
Loss Account for the year is Rs.32,000 (31st March, 2017: Rs. Nil). The future minimum lease payments and payment profile of
non cancellable operating leases are as under:
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Not later than one year - - -
Later than one year but not later than five years - - -
More than five years - - -
Total - - -
As per our Report of even date. For and on behalf of the Board of Directors
Chartered Accountants
JAYMIN B.DESAIPartner Chairman Managing Director
M. D. DESAIC.F.O.
For Y.B.Desai & Associates
Firm ICAI Registration No. 102368W
MAYANK Y. DESAI MUKUL DESAI
Membership No : 108310ANTONY ALAPATCompany Secretary
Place: Mumbai Place : MumbaiDate : 28th May,2018 Date : 28th May,2018
38 Event occuring after Balance Sheet date:
The Board of Directors, at their meeting held on May 28, 2018, have proposed a dividend of Rs. 1.50 Per equity share for the
financial year ended March 31, 2018. The proposal is subject to the approval of shareholders at the ensuing Annual General
Meeting , and if approved, would result in a cash outflow of approximately Rs. 54,16,094/-, including Dividend Distribution Tax.
( Previous Year Rs.1.20 pre Equity Share resulting in to total Outgo of Rs. 43,32,874/- Including Dividend Distribution Tax)
39 Authorization of Financial Statements:
The Financial Statements were authorized for issue in accordance with a resolution of the Board of Directors in its meeting
held on 28th May, 2018.
Annual Report 2017 - 2018
93
Independent Auditor's Report
To The Members of
ECOPLAST LIMITED
Report on the Consolidated Financial Statements
We have audited the accompanying consolidated financial
statements of ECOPLAST LIMITED (the 'Holding Company')
and its subsidiary (the Holding Company and its subsidiary
together referred to as the 'Group'), which comprise the
Consolidated Balance Sheet as at 31 March 2018, the
Consolidated Statement of Profit and Loss (including Other
Comprehensive Income), the Consolidated Cash Flow
Statement and the Consolidated Statement of Changes in
Equity for the year then ended, and a summary of the
significant accounting policies and other explanatory
information (hereinafter referred to as "the consolidated
financial statements").
Management's Responsibility for the Consolidated
Financial Statements
The Holding Company's Board of Directors is responsible for
the preparation of these consolidated financial statements in
terms of the requirements of the Companies Act, 2013 (the
'Act') that give a true and fair view of the consolidated state of
affairs (the consolidated financial position), consolidated profit
or loss (consolidated financial performance), consolidated
cash flows and consolidated changes in equity of the group
company in accordance with the accounting principles
generally accepted in India, including the Indian Accounting
Standards ('Ind AS') specified under Section 133 of the Act.
The Holding Company's Board of Directors and the respective
Board of Directors / management of the subsidiary included in
the Group are responsible for the design, implementation and
maintenance of internal controls relevant to the preparation
and presentation of the financial statements that give a true
and fair view and are free from material misstatement,
whether due to fraud or error. Further, in terms of the
provisions of the Act, the respective Board of Directors /
management of the companies included in the Group covered
under the Act are responsible for maintenance of adequate
accounting records in accordance with the provisions of the
Act for safeguarding the assets and for preventing and
detecting frauds and other irregularities; selection and
application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent;
and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free
from material misstatement, whether due to fraud or error.
These financial statements have been used for the purpose of
preparation of the consolidated financial statements by the
Directors of the Holding Company, as aforesaid.
Auditors' Responsibility
Our responsibility is to express an opinion on these
consolidated financial statements based on our audit.
While conducting the audit, we have taken into account the
provisions of the Act, the accounting and auditing standards
and matters which are required to be included in the audit
report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on
Auditing specified under Section 143(10) of the Act. Those
Standards require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable
assurance about whether these consolidated financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit
evidence about the amounts and the disclosures in the
consolidated financial statements. The procedures selected
depend on the auditor's judgment, including the assessment
of the risks of material misstatement of the consolidated
financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal
financial controls relevant to the Holding Company's
preparation of the consolidated financial statements that give
a true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit also includes
evaluating the appropriateness of the accounting policies
used and the reasonableness of the accounting estimates
Ecoplast Limited
94
made by the Holding Company's Board of Directors, as well as
evaluating the overall presentation of the consolidated
financial statements.
We believe that the audit evidence obtained by us and the
audit evidence obtained by the other auditors in terms of their
reports referred to in sub paragraph (a) of the Other Matters
paragraph below, is sufficient and appropriate to provide a
basis for our audit opinion on these consolidated financial
statements.
Opinion
In our opinion and to the best of our information and according
to the explanations given to us and based on the
consideration of the reports of the other auditors on separate
financial statements / consolidated financial statements and
on the other financial information of the subsidiary, the
aforesaid consolidated financial statements give the
information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting
principles generally accepted in India, of the consolidated
state of affairs (consolidated financial position) of the Group,
as at 31 March 2018, and their consolidated profit
(Consolidated financial performance including Other
Comprehensive Income), their consolidated cash flows and
consolidated changes in equity for the year ended on that
date.
Other matters
a) We did not audit the financial statement of a subsidiary,
whose financial statements reflect total assets of Rs. 472
Lakhs and net assets of Rs. 145 Lakhs as at 31st March,
2018, total revenue of Rs. 1134 Lakhs and net cash flows
amounting to Rs. 80.15 Lakhs for the year ended on that
date, as considered in the consolidated financial
statements. The Consolidated financial statement also
include the Group's share of net profit of Rs. 71.57 Lakhs
for the year ended 31st March, 2018, as considered in the
consolidated financial statements, whose financial
statements have not been audited by us. These financial
statements have been audited by other auditors whose
reports have been furnished to us by the management and
our opinion on the consolidated financial statements, in so
far as it relates to the amounts and disclosures included in
respect of this subsidiary, and our report in terms of sub-
section (3) of Section 143 of the Act, in so far as it relates to
the aforesaid subsidiary, is based solely on the reports of
the other auditors.
Our opinion above on the consolidated financial
statements, and our report on other legal and regulatory
requirements below, are not modified in respect of the
above matters with respect to our reliance on the work
done by and the reports of the other auditors.
The audited consolidated financial statements for the year
ended 31 March 2017, was carried out and reported by
Akkad Mehta & Co., vide their unmodified audit report
dated 22nd May 2017, whose report has been furnished to
us by the management and which has been relied upon by
us for the purpose of our audit of the consolidated financial
statements. Our audit report is not qualified in respect of
this matter.
Report on other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our
audit and on the consideration of the reports of the other
auditors on separate financial statements and other
financial information of the subsidiary, as noted in the
"Other Matter" paragraph, we report, to the extent
applicable, that:
a) We have sought and obtained all the information and
explanations which to the best of our knowledge and belief
were necessary for the purpose of our audit of the
aforesaid consolidated financial statements;
b) In our opinion, proper books of account as required by law
relating to preparation of the aforesaid consolidated
financial statements have been kept so far as it appears
from our examination of those books and the reports of the
other auditors;
c) The consolidated financial statements dealt with by this
report are in agreement with the relevant books of account
maintained for the purpose of preparation of the
consolidated financial statements;
Annual Report 2017 - 2018
95
d) In our opinion, the aforesaid consolidated financial
statements comply with Ind AS specified under Section
133 of the Act;
e) On the basis of the written representations received from
the directors of the Holding Company as on 31st March,
2018 taken on record by the Board of Directors of the
Holding Company and the reports of the other statutory
auditors of its subsidiary company covered under the Act,
none of the directors of the Group company, covered
under the Act, are disqualified as on 31 March 2018 from
being appointed as a director in terms of Section 164(2) of
the Act;
f) With respect to the adequacy of the internal financial
controls over financial reporting of the Holding Company
and its subsidiary and the operating effectiveness of such
controls, refer to our separate Report in "Annexure-A";
and,
g) With respect to the other matters to be included in the
Auditor's Report in accordance with Rule 11 of the
Companies (Audit and Auditor's) Rules, 2014
(as amended), in our opinion and to the best of our
information and according to the explanations given to us
and based on the consideration of the report of the other
auditors on separate financial statements and on the other
financial information of the subsidiary as noted in the 'other
matter' paragraph:
I. The pending litigation as disclosed in notes to the
Consolidated Financial Statements would not impact
Financial Position of the Company.
II. The Company did not have any material foreseeable
losses on long-term contracts including derivatives
contracts.
III. There has been no delay in transferring amounts, required
to be transferred, to the Investor Education and Protection
Fund by the Holding Company and its subsidiary company
incorporated in India.
IV. The disclosure requirements relating to holdings as well as
dealings in specified bank notes were applicable for the
period from 8 November 2016 to 30 December 2016 which
are not relevant to these consolidated financial
statements. Hence, reporting under this clause is not
applicable.
For Y. B. Desai and Associates
Chartered Accountants
Firm Registration No. 102368W
Name :- CA Mayank Y. Desai
Partner
Membership No. :- 108310
Date :- 28th May, 2018
Place :- Mumbai.
Ecoplast Limited
96
Annexure A to the Independent Auditor's Report of even date to the members ofEcoplast Limited on the consolidated financial statements for the year ended 31 March 2018
Auditors' Responsibility
Our responsibility is to express an opinion on the IFCoFR of
the Holding Company and its subsidiary company, as
aforesaid, based on our audit. We conducted our audit in
accordance with the Standards on Auditing issued by the ICAI
and deemed to be prescribed under Section 143(10) of the
Act, to the extent applicable to an audit of IFCoFR, and the
Guidance Note issued by the ICAI. Those Standards and the
Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain
reasonable assurance about whether adequate IFCoFR were
established and maintained and if such controls operated
effectively in all material respects.
Our audit involves performing procedures to obtain audit
evidence about the adequacy of the internal financial controls
system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over
financial reporting included obtaining an understanding of
internal financial controls over financial reporting, assessing
the risk that a material weakness exists, and testing and
evaluating the design and operating effectiveness of internal
control based on the assessed risk. The procedures selected
depend on the auditor's judgment, including the assessment
of the risks of material misstatement of the financial
statements, whether due to fraud or error.
We believe that the audit evidence we have obtained and the
audit evidence obtained by the other auditors in terms of their
reports referred to in the Other Matter paragraph below, is
sufficient and appropriate to provide a basis for our audit
opinion on the IFCoFR of the Holding Company and its
subsidiary company as aforesaid.
Independent Auditor's report on the Internal Financial
Controls under Clause (i) of sub-section 3 of Section 143
of the Companies Act, 2013 (the "Act")
In conjunction with our audit of the consolidated financial
statements of Ecoplast Limited (the 'Holding Company') and
its subsidiaries (the Holding Company and its subsidiary
together referred to as the 'Group') as at and for the year
ended 31 March 2018, we have audited the internal financial
controls over financial reporting ('IFCoFR') of the Holding
Company, its subsidiary company which are companies
covered under the Act, as at that date.
Management's Responsibility for the Internal Financial
Controls
The respective Board of Directors of the Holding Company, its
subsidiary company which are companies covered under the
Act, are responsible for establishing and maintaining internal
financial controls based on the internal control over financial
reporting criteria established by the Company considering the
essential components of internal control stated in the
Guidance Note on Audit of Internal Financial Controls Over
Financial Reporting (the 'Guidance Note') issued by the
Institute of Chartered Accountants of India (the 'ICAI'). These
responsibilities include the design, implementation and
maintenance of adequate internal financial controls that were
operating effectively for ensuring the orderly and efficient
conduct of the company's business, including adherence to
the company's policies, the safeguarding of its assets, the
prevention and detection of frauds and errors, the accuracy
and completeness of the accounting records, and the timely
preparation of reliable financial information, as required under
the Act.
Annual Report 2017 - 2018
97
Meaning of Internal Financial Controls over Financial
Reporting
A company's internal financial control over financial reporting
is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in
accordance with generally accepted accounting principles. A
company's internal financial control over financial reporting
includes those policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail, accurately
and fairly reflect the transactions and dispositions of the
assets of the company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit preparation
of financial statements in accordance with generally accepted
accounting principles, and that receipts and expenditures of
the company are being made only in accordance with
authorisations of management and directors of the company;
and (3) provide reasonable assurance regarding prevention
or timely detection of unauthorised acquisition, use, or
disposition of the company's assets that could have a material
effect on the financial statements.
Inherent Limitations of Internal Financial Controls over
Financial Reporting
Because of the inherent limitations of internal financial
controls over financial reporting, including the possibility of
collusion or improper management override of controls,
material misstatements due to error or fraud may occur and
not be detected. Also, projections of any evaluation of the
internal financial controls over financial reporting to future
periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of
changes in conditions, or that the degree of compliance with
the policies or procedures may deteriorate.
Opinion
In our opinion and based on the consideration of the reports of
the other auditors on IFCoFR of the subsidiary company, the
Holding Company and its subsidiary company which are
companies covered under the Act, have in all material
respects, adequate internal financial controls over financial
reporting and such controls were operating effectively as at 31
March 2018, based on the internal control over financial
reporting criteria established by the Holding Company, its
subsidiary company as aforesaid, considering the essential
components of internal control stated in the Guidance Note on
Audit of Internal Financial Controls over Financial Reporting
issued by the Institute of Chartered Accountants of India.
Other Matters
Our aforesaid reports under Section 143(3)(i) of the Act on the
adequacy and operating effectiveness of the internal financial
controls over financial reporting insofar as it relates to one
subsidiary company, which is a company incorporated in
India, is based on the corresponding reports of the auditors of
subsidiary company.
For Y. B. Desai and Associates
Chartered Accountants
Firm Registration No. 102368W
Name :- CA Mayank Y. Desai
Partner
Membership No. :- 108310
Date :- 28th May, 2018
Place :- Mumbai.
Ecoplast Limited
98
CONSOLIDATED BALANCE SHEET AS ON 31ST MARCH 2018
Note No As at 31.03.2017 As at 01.04.2016As at 31.03.2018
ASSETSNON CURRENT ASSETS(a) Property, Plant and Equipment 2 13,73,24,709 14,47,38,171 12,62,33,524(b) Capital work-in-progress 2 - 38,47,366 6,40,959(c) Goodwill on consolidation 3 1,13,94,805 1,13,94,805 1,13,94,805(d) Financial Assets (i) Loans 4 92,96,031 85,87,120 60,16,502(e) Other non-current assets 5 85,22,939 38,77,645 53,32,910
16,65,38,484 17,24,45,107 14,96,18,700Current assets(a) Inventories 6 12,38,00,584 12,34,54,703 10,56,63,451(b) Financial Assets
(i) Trade Receivables 7.1 17,32,72,290 20,38,04,323 17,35,15,626(ii) Cash and cash equivalents 7.2 1,12,23,653 28,31,824 16,51,422(iii) Bank balances other than (iii) above 7.3 27,13,904 33,11,658 37,64,186(iv) Loans 7.4 19,68,385 10,58,262 9,62,377(v) Other financial assets 7.5 8,97,421 19,40,918 15,18,150
(c) Other current assets 8 99,42,211 99,21,078 82,56,788Total current assets 32,38,18,448 34,63,22,766 29,53,32,000TOTAL ASSETS 49,03,56,932 51,87,67,873 44,49,50,700EQUITY AND LIABILITIESEquity(a)Equity Share capital 9 3,00,00,000 3,00,00,000 3,00,00,000(b)Other Equity 10 23,92,02,728 20,80,93,474 18,03,71,307Total equity 26,92,02,728 23,80,93,474 21,03,71,307LiabilitiesNon-current liabilities(a) Financial Liabilities (i) Borrowings 11 1,87,06,045 3,67,68,655 2,82,66,311(b) Provisions 12 57,63,038 43,00,200 34,75,187(c) Deferred tax liabilities (Net) 13 96,60,115 82,52,817 80,21,190(d) Other non-current liabilities 14 28,49,201 31,60,023 34,70,845Total non current liabilities 3,69,78,399 5,24,81,695 4,32,33,533Current liabilities(a) Financial Liabilities (i) Borrowings 15.1 7,41,16,945 9,83,64,301 7,89,98,517
(ii) Trade payables 15.2 8,78,08,971 10,56,70,221 9,38,92,674(iii) Other financial liabilities 15.3 1,29,13,683 1,27,91,552 89,31,389
(b) Other current liabilities 16 55,72,829 67,93,433 58,34,701(c) Provisions 17 37,63,377 45,73,198 36,88,580Total current liabilities 18,41,75,805 22,81,92,705 19,13,45,861TOTAL EQUITY AND LIABILITIES 49,03,56,932 51,87,67,873 44,49,50,700
As per our Report of even date. For and on behalf of the Board of Directors
Chartered Accountants
JAYMIN B.DESAIPartner Chairman Managing Director
M. D. DESAIC.F.O.
For Y.B.Desai & Associates
Firm ICAI Registration No. 102368W
MAYANK Y. DESAI MUKUL DESAI
Membership No : 108310ANTONY ALAPATCompany Secretary
Place: Mumbai Place : MumbaiDate : 28th May,2018 Date : 28th May,2018
The accompanying notes from 1 to 39 are an integral part of the financial statements
Annual Report 2017 - 2018
99
CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE PERIOD ENDED 31st MARCH, 2018
Particulars Note No 31.03.2018 31.03.2017
I Revenue from Operations 18 1,07,26,98,184 1,17,52,84,379
II Other Income 19 1,98,83,777 90,64,288
III TOTAL INCOME (I+II) 1,09,25,81,961 1,18,43,48,667
IV Expenses
Cost of materials consumed 20 76,09,31,318 79,04,16,285
Changes in inventories of finished goods, stock in trade
and work-in-progress 21 (62,67,274) (39,37,144)
Excise Duty 22 3,54,27,148 12,33,82,698
Employee benefits expense 23 7,80,25,875 7,06,05,795
Finance costs 24 1,59,40,675 2,00,28,487
Depreciation and amortization expense 2 2,15,98,959 2,13,26,677
Other expenses 25 13,43,84,705 12,41,69,354
TOTAL EXPENSES (IV) 1,04,00,41,406 1,14,59,92,152
-
V Profit/(loss) before tax (III-IV) 5,25,40,555 3,83,56,515
VI Tax expense: -
(1) Current tax 1,67,57,000 89,33,000
(2) Deferred tax 6,87,719 (2,34,208)
(3) Tax in respect of Earlier Years - 60,791
VII Profit/(loss) for the year 3,50,95,836 2,95,96,932
VIIIOther Comprehensive Income
A (i) Items that will not be reclassified to profit or loss 2,60,248 (14,08,930)
(ii) Income tax relating to items that will not be
reclassified to profit or loss 86,046 (4,65,835)
IX Total Comprehensive Income for the period (XIII + XIV)
(Comprising Profit (Loss) and Other Comprehensive
Income for the year) 3,54,42,130 2,77,22,167
X Earnings per equity share [Nominal value per share Rs.10]
(1) Basic 11.70 9.87
(2) Diluted 11.70 9.87
As per our Report of even date. For and on behalf of the Board of Directors
Chartered Accountants
JAYMIN B.DESAIPartner Chairman Managing Director
M. D. DESAIC.F.O.
For Y.B.Desai & Associates
Firm ICAI Registration No. 102368W
MAYANK Y. DESAI MUKUL DESAI
Membership No : 108310ANTONY ALAPATCompany Secretary
Place: Mumbai Place : MumbaiDate : 28th May,2018 Date : 28th May,2018
The accompanying notes from 1 to 39 are an integral part of the financial statements
Ecoplast Limited
100
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH, 2018
Particulars For the year ended 31 Mar,2018 For the year ended 31 Mar,2017
A. Cash flow from operating activities
Net Profit before Tax as per Statement of Profit and Loss 5,25,40,555 3,83,56,515
Adjustments for:
Depreciation and amortization and impairment 2,21,66,099 2,13,26,677
(Profit) / loss on sale / write off of assets (net) (1,49,579) (1,20,187)
Finance costs 1,58,39,049 2,00,28,487
Interest income (52,05,402) (8,72,535)
Other Comprehensive Income 2,60,248 (14,08,930)
Liabilities / provisions no longer required written back (25,68,986) (3,31,135)
3,03,41,429 3,86,22,376
Operating profit before working capital changes 8,28,81,984 7,69,78,891
Changes in working capital:
Adjustments for (increase)/decrease in operating assets:
Inventories (3,17,017) (1,77,91,252)
Trade receivables 3,45,62,322 (3,02,88,697)
Short-term loans and advances (9,10,123) (95,885)
Long-term loans and advances (12,37,057) (25,70,618)
Other current financial assets (25,01,175) (4,22,768)
Other non current assets (47,40,499) 14,55,264
Other current assets 36,18,745 (16,64,290)
Adjustments for increase / (decrease) in operating liabilities:
Trade payables (2,16,42,400) 1,21,08,682
Other current liabilities (12,20,603) 9,58,732
Other current financial liabilities (77,021) 38,60,163
Other non current liabilities (3,10,822) (3,10,822)
Short-term provisions (8,09,822) 8,84,619
Long-term provisions 14,62,838 8,25,013
58,77,366 (3,30,51,857)
8,87,59,350 4,39,27,034
Cash generated from operations 8,87,59,350 4,39,27,034
Net income tax (paid) / refunds (1,67,57,000) (89,93,791)
Net cash flow from/(used in)operating activities(A) 7,20,02,350 3,49,33,243\
B. Cash flow from investing activities
Capital expenditure on fixed assets, including capital advances (1,18,94,133) (4,30,47,075)
Proceeds from sale of fixed assets 16,28,044 1,29,531
Loans given
- Subsidiaries 4,07,367 -
- Others 76,08,091 8,72,535
(22,50,632) (4,20,45,009)
(22,50,632) (4,20,45,009)
Net cash flow from/(used in) investing activities(B) (22,50,632) (4,20,45,009)
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As per our Report of even date. For and on behalf of the Board of Directors
Chartered Accountants
JAYMIN B.DESAIPartner Chairman Managing Director
M. D. DESAIC.F.O.
For Y.B.Desai & Associates
Firm ICAI Registration No. 102368W
MAYANK Y. DESAI MUKUL DESAI
Membership No : 108310ANTONY ALAPATCompany Secretary
Place: Mumbai Place : MumbaiDate : 28th May,2018 Date : 28th May,2018
The accompanying notes from 1 to 39 are an integral part of the financial statements
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH, 2018
Particulars For the year ended 31 Mar,2018 For the year ended 31 Mar,2017
C. Cash flow from financing activities
Proceeds / (Repayment) of long-term borrowings (1,75,34,464) 85,02,344
Net increase / (decrease) in Short term borrowings (2,41,49,630) 1,93,65,784
Finance cost (1,59,40,675) (2,00,28,487)
Interim Dividends paid - -
Tax on interim dividend - -
Dividends paid (36,00,000) -
Tax on dividend (7,32,875) -
(6,19,57,644) 78,39,642
Net cash flow from/(used in) financing activities(C) (6,19,57,644) 78,39,642
Net increase/(decrease) in Cash and cash equivalents (A+B+C) 77,94,074 7,27,876
Cash and cash equivalents at the beginning of the year 61,43,483 54,15,608
Cash and cash equivalents at the end of the year 1,39,37,557 61,43,484
Cash and cash equivalents at the end of the year Comprises :
(a) Cash on hand 5,86,046 3,39,764
(b) Balances with banks
(i) In current accounts 1,00,55,607 24,92,060
(ii) In earmarked accounts (Refer Note (2) below) 32,95,904 33,11,658
1,39,37,557 61,43,483
Notes:
1) The above Cash Flow Statement has been prepared under the "Indirect Method " as set out in Indian Accounting Standard (Ind AS - 7) on statement of Cash Flow.
2 The previous year's figures have been regrouped/ restated wherever necessary to confirm to this year's classification.
3 Earmarked account balances with banks can be utilized only for the specific identified purposes.
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Notes to Consolidated Financial Statements for the year ended 31st March, 2018
Corporate Information
Ecoplast Limited is Public Company domiciled in India and incorporated under the provisions of the Companies Act, 1956 having
Corporate Identity Number L25200GJ1981PLC004375. Its shares are listed on Bombay Stock Exchange in India. The Company
is engaged in the business of manufacturing, processing and selling of Co-extruded Plastic Film for packaging and industrial
applications. The principal place of business of the company is at Abrama-Valsad. The Company caters to both domestic and
international markets. It has various certifications like ISO 9001, ISO 14001 and ISO 22000 registration for products thereby
complying with globally accepted quality standards.
1. Principles of Consolidation
The consolidated financial statements incorporate the consolidated financial statements of the Company and entities controlled by
the Company and its subsidiaries. Control is achieved when the Company:
• has power over the investee;
• is exposed, or has rights, to variable returns from its involvement with the investee; and
• has the ability to use its power to affect its returns.
The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one
or more of the three elements of control listed above. When the Company has less than a majority of the voting rights of an
investee, it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant
activities of the investee unilaterally. The Company considers all relevant facts and circumstances in assessing whether or not the
Company’s voting rights in an investee are sufficient to give it power, including:
• the size of the Company’s holding of voting rights relative to the size and dispersion of holdings of the other vote holders;
• potential voting rights held by the Company, other vote holders or other parties;
• rights arising from other contractual arrangements; and
• any additional facts and circumstances that indicate that the Company has, or does not have, the current ability to direct the
relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders’ meetings.
Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses
control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in
the Consolidated Statement of Profit and Loss from the date the Company gains control until the date when the Company ceases
to control the subsidiary.
Profit or loss and each component of other comprehensive income are attributed to the owners of the Company and to the non-
controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Group and to the non-controlling
interests even if this results in the non-controlling interests having a deficit balance.
When necessary, adjustments are made to the consolidated financial statements of subsidiaries to bring their accounting policies
into line with the Group’s accounting policies.
All intragroup assets and liabilities, equity, income, expenses, and cash flows relating to transactions between members of the
Group are eliminated in full on consolidation
The Subsidiary Company in the consolidated financial statement is:
Name of the Company : Synergy Films Private Limited
Country of Incorporation : India
% Voting power held : 100
1. Statement of Significant Accounting Policies
Basis of Preparation:
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The consolidated financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) notified under
Section 133 of the Companies Act, 2013 (“Act”) read with Companies (Indian Accounting Standards) Rules, 2015; and the other
relevant provisions of the Act and Rules thereunder.
The consolidated financial statements have been prepared under historical cost convention basis, except for certain assets and
liabilities measured at fair value.
The Company has adopted all the Ind AS and the adoption was carried out in accordance with Ind AS 101 ‘First time adoption of
Indian Accounting Standards’. The transition was carried out from Generally Accepted Accounting Principles in India (Indian
GAAP) as prescribed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014, as amended
which was the “Previous GAAP”.
The Company’s presentation and functional currency is Indian Rupees (Rs.). All figures appearing the consolidated financial
statements are rounded off to the Rupee, except where otherwise indicated.
1.1. Use of Judgment and Estimates:
The preparation of Company’s consolidated financial statements requires management to make judgments, estimates and
assumptions that affect the reported amounts of revenue, expenses, assets, liabilities and the accompanying disclosures along
with contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require material
adjustments to the carrying amounts of the assets or liabilities affected in future periods. The Company continually evaluates
these estimates and assumptions based on the most recently available information.
v Financial instruments;
v Estimates of useful lives and residual value of Property, Plant and Equipment and Intangible assets;
v Valuation of Inventories
v Measurement of Defined Benefit Obligations and actuarial assumptions;
v Provisions;
v Contingencies.
Revisions to accounting estimates are recognised prospectively in the consolidated Statement of Profit and Loss in the period
in which the estimates are revised and in any future periods affected.
1.2. Property, Plant and Equipment
1.2.1. Property, Plant and Equipment are stated at cost net of accumulated depreciation and accumulated impairment losses,
if any.
1.2.2. The initial costs of an asset comprises its purchase price or construction costs (including import duties and non-
refundable taxes), any costs directly attributable to bringing the asset into the location and condition necessary for it to
be capable of operating in the manner intended by management, the initial estimate of any decommissioning obligation,
if any, and borrowing cost for qualifying assets (i.e. assets that necessarily take a substantial period of time to get ready
for their intended use).
1.2.3. Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the
expenditure will flow to the Company.
1.2.4. Expenditure on assets not exceeding threshold limit are charged to revenue.
1.2.5. Spare parts which meet the definition of Property, Plant and Equipment are capitalised as Property, Plant and
Equipment in case the unit value of the spare part is above the threshold limit. In other cases, the spare part is
inventorised on procurement and charged to consolidated Statement of Profit and Loss on consumption.
1.2.6. An item of Property, Plant and Equipment and any significant part initially recognized separately as part of Property,
Plant and Equipment is de-recognised upon disposal; or when no future economic benefits are expected from its use or
disposal. Any gain or loss arising on de-recognition of the asset is included in the consolidated Statement of Profit and
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Loss when the asset is de-recognised.
1.2.7. The residual values and useful lives of Property, Plant and Equipment are reviewed at each financial year end and
changes, if any are accounted in line with revisions to accounting estimates.
1.2.8. The Company has elected to use exemption available under Ind AS 101 to continue the carrying value for all its Property,
Plant and Equipment as recognised in the consolidated financial statements as at the date of transition to Ind ASs,
measured as per previous GAAP and use that as its deemed cost as at the date of transition (1st April, 2016).
1.3. Depreciation
Depreciation on Property, Plant and Equipment are provided on straight line basis, over the estimated useful lives of assets
(after retaining the estimated residual value of 5%). These useful lives determined are in line with the useful lives as prescribed
in the Schedule II of the Act.
1.3.1. Items of Property, Plant and Equipment costing not more than the threshold limit are depreciated 100% in the year of
acquisition.
1.3.2. Components of the main asset that are significant in value and have different useful lives as compared to the main asset
are depreciated over their estimated useful life. Useful life of such components has been assessed based on historical
experience and internal technical assessment.
1.3.3. Depreciation on spare parts specific to an item of Property, Plant and Equipment is based on life of the related Property,
Plant and Equipment. In other cases, the spare parts are depreciated over their estimated useful life based on the
technical assessment.
1.3.4. Depreciation is charged on additions/ deletions on pro-rata monthly basis including the month of addition/ deletion.
1.4. Intangible Assets
1.4.1. Intangible assets are carried at cost net of accumulated amortization and accumulated impairment losses, if any.
1.5. Investment Property
1.5.1. Investment property is property (land or a building – or part of building – or both) held either to earn rental income or a
capital appreciation or for both, but not for sale in the ordinary course of business, use in production or supply of goods or
services or for administrative purposes.
1.5.2. Any gain or loss on disposal of investment property calculated as the difference between the net proceeds and the
carrying amount of the Investment Property is recognised in consolidated Statement of Profit and Loss.
1.6. Borrowing Costs
1.6.1. Borrowing costs consist of interest and other costs incurred in connection with the borrowing of funds. Borrowing costs
also include exchange differences to the extent regarded as an adjustment to the borrowing costs.
1.6.2. Borrowing costs that are attributable to the acquisition or construction of qualifying assets (i.e. an asset that necessarily
takes a substantial period of time to get ready for its intended use) are capitalized as a part of the cost of such assets. All
other borrowing costs are charged to the consolidated Statement of Profit and Loss.
1.7. Non current asset held for sale
1.7.1. Non-current assets are classified as held for sale if their carrying amounts will be recovered through a sale transaction
rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset
is available for immediate sale in its present condition subject only to terms that are usual and customary for sale of such
assets.
1.7.2. Non-current assets classified as held for sale are measured at the lower of carrying amount and fair value less costs to
sell.
1.7.3. Property, Plant and Equipment and intangible assets classified as held for sale are not depreciated or amortized.
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1.8. Leases
1.8.1. Finance Leases
A lease agreement that transfers substantially all the risks and rewards irrespective of whether title is transferred is
classified as a finance lease.
Finance lease are capitalized at the commencement of the lease at fair value of the leased property or, if lower, at
present value of minimum lease payment.
Leases of land where, the company assumes substantially all the risks and rewards of ownership are classified as
finance lease. Finance lease of land are capitalized at the lease’s inception at upfront lease payments.
A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the
company will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the useful
estimated life of the asset and the lease term.
Finance charges are recognised as finance charges in the consolidated Statement of Profit and Loss. Lease
management fees, legal charges and other initial direct costs of lease are capitalized.
1.8.2. Operating Leases
Lease Agreements which are not classified as finance leases are considered as Operating Leases.
Payments made under operating leases are recognised in consolidated Statement of Profit and Loss with reference to
lease terms and other relevant considerations. Lease incentives received/ lease premium paid (if any) are recognised
as an integral part of the total lease expense, over the term of the lease. Payments made under Operating Leases are
generally recognised in consolidated Statement of Profit and Loss on a straight line basis over the term of the lease,
unless such payment is structured to increase in line with expected general inflation.
1.8.3. Determining whether an arrangement contains a lease
At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease. At
inception or on reassessment of an arrangement that contains a lease, the Company separates payments and other
consideration required by the arrangement into those for the lease and those for other elements on the basis of their
relative fair values. In case of a finance lease, if the Company concludes that it is impracticable to separate the
payments reliably, then an asset and a liability are recognised at an amount equal to the fair value of the underlying
assets; subsequently, the liability is reduced as payments are made and an imputed finance cost on the liability is
recognised using the Company’s incremental borrowing rate.
1.9. Impairment of Non-financial Assets
1.9.1. Non-financial assets other than inventories, deferred tax assets and non-current assets classified as held for sale are
reviewed at each Balance Sheet date to determine whether there is any indication of impairment. If any such indication
exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s recoverable
amount. The recoverable amount is higher of the assets or Cash-Generating Units (CGU’s) fair value less costs of
disposal and its value in use. Recoverable amount is determined for an individual asset, unless the asset does not
generate cash inflows that are largely independent of those from other assets or group of assets.
1.9.2. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is
written down to its recoverable amount.
1.10. Inventories
1.10.1.The cost for the purpose of valuation of Finished and Semi - Finished goods is arrived at on FIFO basis and includes
Cost of conversion and other cost incurred in bringing the inventories to their present location and condition. Due allowance is
estimated and made for defective and obsolete items, wherever necessary, based on the past experience of the company.
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The mode of valuing closing stock is as under:
v Raw Materials, Packing Materials, Machinery Spares, Ink and Fuel - at Cost or Net Realizable Value
v Finished and Semi - Finished goods – at lower of cost or net realizable value
v Scrap - net realizable value
1.10.2.Customs duty/GST on Raw materials/ finished goods lying in bonded warehouse is provided for at the applicable rates
except where liability to pay duty is transferred to consignee.
1.10.3.Excise duty on finished stocks lying at manufacturing locations is provided for at the assessable value applicable at each
of the locations based on end use.
1.10.4." Raw materials held for use in production of Finished Goods are written down below Cost , only if, the estimated Cost
or Net Realizable Value of Finished Goods will not exceed Net Realizable Value of such Raw Materials.”
1.10.5.Obsolete, slow moving, surplus and defective stocks are identified at the time of physical verification of stocks and
where necessary, provision is made for such stocks.
1.11. Revenue Recognition
1.11.1. Sale of Goods
Revenue from the sale of goods is recognized when the significant risks and rewards of the ownership of the goods have
passed to the buyer, the Company retains neither continuing managerial involvement to the degree usually associated
with ownership nor effective control over the goods sold, revenue and the associated costs can be estimated reliably
and it is probable that economic benefits associated with the transaction will flow to the Company.
Revenue from sale of goods includes excise duty and is measured at the fair value of the consideration received or
receivable (after including fair value allocations related to multiple deliverable and/or linked arrangements), after the
deduction of any trade discounts, volume rebates, net of returns, taxes or duties collected on behalf of the government.
When the Company acts as an agent on behalf of a third party, the associated income is recognized on net basis.
Export Sales are accounted for on the basis of the date of Bill of Lading.
1.11.2. Claims are recognized on settlement. Export incentives are accounted where there is reasonable assurance that the
incentive income will be received and all attached conditions will be complied with.
1.11.3. Interest income is recognized using Effective Interest Rate (EIR) method.
1.11.4. Dividend is recognized when right to receive the income is established, it is probable that the economic benefits
associated with the dividend will flow to the entity and the amount of dividend can be measured reliably.
1.12. Classification of Income/ Expenses
1.12.1.Income/ expenditure (net) in aggregate pertaining to prior year(s) above the threshold limit are corrected retrospectively
in the first set of consolidated financial statements approved for issue after their discovery by restating the comparative
amounts and / or restating the opening Balance Sheet for the earliest prior period presented.
1.12.2.Prepaid expenses up to threshold limit in each case, are charged to revenue as and when incurred.
1.13. Employee benefits
1.13.1.Short term employment benefits
Short term employee benefits such as salaries, wages, short-term compensated absences, performance incentives
etc., and the expected cost of bonus, ex-gratia are recognized as an expense at an undiscounted amount in the
consolidated Statement of Profit and Loss of the year in which the related services are rendered.
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1.13.2.Defined Contribution Plans
v Superannuation :
The Company has Defined Contribution Plan for Post employment benefits in the form of Superannuation Fund for
certain class of employees as per the scheme, administered through Life Insurance Corporation (LIC) and Trust which
is administered by the Trustees and is charged to revenue every year. Company has no further obligation beyond its
contributions.
v Employee's Family Pension :
The Company has Defined Contribution Plan for Post-employment benefits in the form of family pension for all eligible
employees, which is administered by the Regional Provident Fund Commissioner and is charged to revenue every year.
Company has no further obligation beyond its monthly contributions.
v Provident Fund:
The Company has Defined Contribution Plan for Post-employment benefits in the form of Provident Fund for all eligible
employees; which is administered by the Regional Provident Fund Commissioner and is charged to revenue every year.
Company has no further obligations beyond its monthly contributions.
1.13.3.Defined Benefit Plans
v Gratuity :
The Company has a Defined Benefit Plan for Post-employment benefit in the form of gratuity for all eligible employees
which is administered through Life Insurance Corporation (LIC) and a trust which is administered by the trustees.
Liability for above defined benefit plan is provided on the basis of actuarial valuation as at the Balance Sheet date,
carried out by an independent actuary. The actuarial method used for measuring the liability is the Projected Unit Credit
method.
v Compensated Absences :
Liability for Compensated Absences is provided on the basis of valuation, as at the Balance Sheet date, carried out by an
independent actuary. The Actuarial valuation method used for measuring the liability is the Projected Unit Credit
method. Under this method, the Defined Benefit Obligation is calculated taking into account pattern of availment of
leave whilst in service and qualifying salary on the date of availment of leave. In respect of encashment of leave, the
Defined Benefit obligation is calculated taking into account all types of the increment, salary growth, attrition rate and
qualifying salary projected up to the assumed date of encashment.
1.13.4.Termination Benefits:
Termination benefits are recognised as an expense as and when incurred.
1.13.5.The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by
reference to market yields at the end of the reporting period on Government bonds that have terms approximating to the
terms of the related obligation.
1.13.6.The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and
the fair value of plan assets. This cost is included in employee benefit expense in the consolidated Statement of Profit
and Loss.
1.13.7.Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are
recognised in the period in which they occur directly in Other Comprehensive Income. They are included in retained
earnings in the Statement of changes in equity and in the Balance Sheet.
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1.13.8.Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are
recognised immediately in profit or loss as past service cost.
1.14. Foreign Currency Transactions
1.14.1.Monetary Items
Transactions in foreign currencies are initially recorded at their respective exchange rates at the date the transaction
first qualifies for recognition.
Monetary assets and liabilities denominated in foreign currencies are translated at exchange rates prevailing on the
reporting date.
Exchange differences arising on settlement or translation of monetary items (except for long term foreign currency
monetary items outstanding as of 31st March 2016) are recognised in consolidated Statement of Profit and Loss either
as profit or loss on foreign currency transaction and translation or as borrowing costs to the extent regarded as an
adjustment to borrowing costs.
1.14.2.Non – Monetary items:
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the
exchange rates at the dates of the initial transactions.
1.15. Investment in Subsidiaries
Investments in subsidiary company carried at cost less accumulated impairment losses, if any. Where an indication of
impairment exists, the carrying amount of the investment is assessed and written down immediately to its recoverable amount.
On disposal of investments in subsidiary company, the difference between net disposal proceeds and the carrying amounts are
recognised in the consolidated Statement of Profit and Loss.
1.16. Government Grants
1.16.1.Government grants are recognized at fair value where there is reasonable assurance that the grant will be received and
all attached conditions will be complied with.
1.16.2.When the grant relates to an expense item, it is recognized in consolidated Statement of Profit and Loss on a systematic
basis over the periods that the related costs, for which it is intended to compensate, are expensed.
1.16.3.Government grants relating to Property, Plant and Equipment are presented as deferred income and are credited to the
consolidated Statement of Profit and Loss on a systematic and rational basis over the useful life of the asset.
1.17. Provisions, Contingent Liabilities and Capital Commitments
1.17.1.Provisions are recognized when there is a present obligation (legal or constructive) as a result of a past event, it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a
reliable estimate can be made of the amount of the obligation.
1.17.2.The expenses relating to a provision is presented in the consolidated Statement of Profit and Loss net of
reimbursements, if any.
1.17.3.If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects,
when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the
passage of time is recognized as a finance cost.
1.17.4.Contingent liabilities are possible obligations whose existence will only be confirmed by future events not wholly within
the control of the Company, or present obligations where it is not probable that an outflow of resources will be required or
the amount of the obligation cannot be measured with sufficient reliability.
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1.17.5.Contingent liabilities are not recognized in the consolidated financial statements but are disclosed unless the possibility
of an outflow of economic resources is considered remote.
1.17.6.Contingent liabilities and Capital Commitments disclosed are in respect of items which in each case are above the
threshold limit.
1.18. Fair Value measurement
1.18.1.The Company measures certain financial instruments at fair value at each reporting date.
1.18.2.Certain accounting policies and disclosures require the measurement of fair values, for both financial and non- financial
assets and liabilities.
1.18.3.Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date in the principal or, in its absence, the most advantageous market
to which the Company has access at that date. The fair value of a liability also reflects its non-performance risk.
1.18.4.The best estimate of the fair value of a financial instrument on initial recognition is normally the transaction price – i.e. the
fair value of the consideration given or received. If the Company determines that the fair value on initial recognition
differs from the transaction price and the fair value is evidenced neither by a quoted price in an active market for an
identical asset or liability nor based on a valuation technique that uses only data from observable markets, then the
financial instrument is initially measured at fair value, adjusted to defer the difference between the fair value on initial
recognition and the transaction price. Subsequently that difference is recognised in consolidated Statement of Profit
and Loss on an appropriate basis over the life of the instrument but no later than when the valuation is wholly supported
by observable market data or the transaction is closed out.
1.18.5.While measuring the fair value of an asset or liability, the Company uses observable market data as far as possible. Fair
values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation technique
as follows:
v Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
v Level 2: inputs other than quoted prices included in Level 1 that are observable for the assets or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices)
v Level 3: inputs for the assets or liability that are not based on observable market data (unobservable inputs)
1.18.6.When quoted price in active market for an instrument is available, the Company measures the fair value of the
instrument using that price. A market is regarded as active if transactions for the asset or liability take place with
sufficient frequency and volume to provide pricing information on an ongoing basis.
1.18.7.If there is no quoted price in an active market, then the Company uses a valuation techniques that maximise the use of
relevant observable inputs and minimise the use of unobservable inputs. The chosen valuation technique incorporates
all of the factors that market participants would take into account in pricing a transaction.
1.18.8.The Company regularly reviews significant unobservable inputs and valuation adjustments. If the third party
information, such as broker quotes or pricing services, is used to measure fair values, then the Company assesses the
evidence obtained from the third parties to support the conclusion that these valuations meet the requirements of Ind
AS, including the level in the fair value hierarchy in which the valuations should be classified.
1.19. Financial Assets
1.19.1. Initial recognition and measurement
Trade Receivables and debt securities issued are initially recognised when they are originated. All other financial assets
are initially recognised when the Company becomes a party to the contractual provisions of the instrument. All financial
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assets other than those measured subsequently at fair value through profit and loss, are recognised initially at fair value
plus transaction costs that are attributable to the acquisition of the financial asset.
1.19.2.Subsequent measurement
Subsequent measurement is determined with reference to the classification of the respective financial assets. Based on
the business model for managing the financial assets and the contractual cash flow characteristics of the financial asset,
the Company classifies financial assets as subsequently measured at amortised cost, fair value through other
comprehensive income or fair value through profit and loss.
Debt instruments at amortised cost
A 'debt instrument' is measured at the amortised cost if both the following conditions are met:
The asset is held within a business model whose objective is
- To hold assets for collecting contractual cash flows, and
- Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and
interest (SPPI) on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortised cost using the effective
interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium and fees or
costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the consolidated
Statement of Profit and Loss. The losses arising from impairment are recognised in the consolidated Statement of Profit
and Loss.
Debt instruments at Fair value through Other Comprehensive Income (FVOCI)
A 'debt instrument' is measured at the fair value through Other Comprehensive Income if both the following conditions
are met:
"The asset is held within a business model whose objective is achieved by both”
- collecting contractual cash flows and selling financial assets and
- contractual terms of the asset give rise on specified dates to cash flows that are SPPI on the principal amount
outstanding.
After initial measurement, these assets are subsequently measured at fair value. Interest income under effective
interest method, foreign exchange gains and losses and impairment losses are recognised in the consolidated
Statement of Profit and Loss. Other net gains and losses are recognised in other comprehensive Income.
Debt instruments at Fair value through Profit or Loss (FVTPL)
Fair Value through Profit or Loss is a residual category for debt instruments. Any debt instrument, which does not meet
the criteria for categorisation at amortised cost or as FVOCI, is classified as FVTPL.
After initial measurement, any fair value changes including any interest income, foreign exchange gain and losses,
impairment losses and other net gains and losses are recognised in the consolidated Statement of Profit and Loss.
Equity investments
All equity investments within the scope of Ind AS 109 are measured at fair value. Such equity instruments which are held
for trading are classified as FVTPL. For all other such equity instruments, the Company decides to classify the same
either as FVOCI or FVTPL. The Company makes such election on an instrument-by-instrument basis. The classification
is made on initial recognition and is irrevocale.
Annual Report 2017 - 2018
111
For equity instruments classified as FVOCI, all fair value changes on the instrument, excluding dividends, are
recognized in Other Comprehensive Income (OCI). Dividends on such equity instruments are recognised in the
Statement of Profit or Loss.
Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the
consolidated Statement of Profit and Loss.
1.19.3.De-recognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily
derecognised (i.e. removed from the Company's Balance Sheet) when
v The rights to receive cash flows from the asset have expired, or
v The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the
received cash flows in full without material delay to a third party under a 'pass-through' arrangement; and either:
- The Company has transferred substantially all the risks and rewards of the asset, or
- The Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has
transferred control of the asset.
On de-recognition, any gains or losses on all debt instruments (other than debt instruments measured at FVOCI) and
equity instruments (measured at FVTPL) are recognised in the consolidated Statement of Profit and Loss. Gains and
losses in respect of debt instruments measured at FVOCI and that are accumulated in OCI are reclassified to profit or
loss on de-recognition. Gains or losses on equity instruments measured at FVOCI that are recognised and accumulated
in OCI are not reclassified to profit or loss on de-recognition.
1.19.4. Impairment of financial assets
In accordance with Ind AS 109, the Company applies Expected Credit Loss (“ECL”) model for measurement and
recognition of impairment loss on the financial assets measured at amortised cost and debt instruments measured at
FVOCI.
Loss allowances on trade receivables are measured following the ‘simplified approach’ at an amount equal to the
lifetime ECL at each reporting date.The application of simplified approach does not require the Company to track
changes in credit risk. Based on the past history and track records the company has assessed the risk of default by the
customer and expects the credit loss to be insignificant. In respect of other financial assets such as debt securities and
bank balances, the loss allowance is measured at 12 month ECL only if there is no significant deterioration in the credit
risk since initial recognition of the asset or asset is determined to have a low credit risk at the reporting date.
1.20. Financial Liabilities
1.20.1. Initial recognition and measurement
Financial liabilities are initially recognised when the Company becomes a party to the contractual provisions of the
instrument.
Financial liability is initially measured at fair value plus, for an item not at fair value through profit and loss, transaction
costs that are directly attributable to its acquisition or issue.
1.20.2.Subsequent measurement
Subsequent measurement is determined with reference to the classification of the respective financial liabilities.
Financial Liabilities at Fair Value through Profit or Loss (FVTPL)
Ecoplast Limited
112
A financial liability is classified as at Fair Value through Profit or Loss (FVTPL) if it is classified as held-for-trading or is
designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and changes therein,
including any interest expense, are recognised in consolidated Statement of Profit and Loss.
Financial Liabilities at amortised cost
After initial recognition, financial liabilities other than those which are classified as FVTPL are subsequently measured at
amortised cost using the effective interest rate (“EIR”) method.
Amortised cost is calculated by taking into account any discount or premium and fees or costs that are an integral part of
the EIR. The amortisation done using the EIR method is included as finance costs in the consolidated Statement of
Profit and Loss.
1.21. Financial guarantees
Financial guarantee contracts issued by the Company are those contracts that require a payment to be made to reimburse the
holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of the
debt instrument. Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction costs
that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount
of loss allowance determined as per impairment requirements of Ind AS 109 and the fair value initially recognised less
cumulative amortisation.
1.22. Embedded derivatives
If the hybrid contract contains a host that is a financial asset within the scope of Ind AS 109, the classification requirements
contained in Ind AS 109 are applied to the entire hybrid contract. Derivatives embedded in all other host contracts, including
financial liabilities are accounted for as separate derivatives and recorded at fair value if their economic characteristics and
risks are not closely related to those of the host contracts and the host contracts are not held for trading or designated at fair
value through profit and loss. These embedded derivatives are measured at fair value with changes in fair value recognised in
consolidated Statement of Profit and Loss, unless designated as effective hedging instruments. Reassessment only occurs if
there is either a change in the terms of the contract that significantly modifies the cash flows.
1.23. Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the Balance Sheet, if there is a currently
enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the assets
and settle the liabilities simultaneously.
1.24. Taxes on Income
1.24.1.Current Tax
Income-tax Assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation
authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted,
by the end of reporting period.
Current Tax items are recognised in correlation to the underlying transaction either in the consolidated Statement of
Profit and Loss, other comprehensive income or directly in equity.
1.24.2.Deferred tax
Deferred tax is provided using the Balance Sheet method on temporary differences between the tax bases of assets and
liabilities and their carrying amounts for financial reporting purposes at the reporting date.
"Deferred tax liabilities are recognised for all taxable temporary differences.Deferred tax assets are recognised for all
deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax
assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible
temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised.”
Annual Report 2017 - 2018
113
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no
longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised.
Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has
become probable that future taxable profits will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is
realised or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted at the
reporting date.
Deferred Tax items are recognised in correlation to the underlying transaction either in the consolidated Statement of
Profit and Loss, other comprehensive income or directly in equity.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets
against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.
1.25. Earnings per share
Basic earnings per share are calculated by dividing the profit or loss for the period attributable to equity shareholders (after
deducting preference dividends, if any, and attributable taxes) by the weighted average number of equity shares outstanding
during the period.
For the purpose of calculating diluted earnings per share, the profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are adjusted for the effect of all dilutive potential equity
shares.
1.26. Classification of Assets and Liabilities as Current and Non-Current:
All assets and liabilities are classified as current or non-current as per the Company’s normal operating cycle (determined at 12
months) and other criteria set out in Schedule III of the Act.
1.27. Cash and Cash equivalents
Cash and cash equivalents in the Balance Sheet include cash at bank, cash, cheque, draft on hand and demand deposits with
an original maturity of less than three months, which are subject to an insignificant risk of changes in value.
For the purpose of Statement of Cash Flows, Cash and cash equivalents include cash at bank, cash, cheque and draft on hand.
The Company considers all highly liquid investments with a remaining maturity at the date of purchase of three months or less
and that are readily convertible to known amounts of cash to be cash equivalents.
1.28. Cash Flows
Cash flows are reported using the indirect method, where by net profit before tax is adjusted for the effects of transactions of a
non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or
expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities
are segregated.
1.29. The Company has adopted the following materiality threshold limits in the preparation and presentation of
financials statements as given below:
Threshold ItemAccounting
PolicyReference
Unit ThresholdLimit Value
Capitalisation of spare parts meeting the definition of Property,
Equipment in each case
Depreciation at 100 percent in the year of acquisition
Income / expenditure (net) in aggregate pertaining to prior year(s)
Disclosure of Contingent liabilities and Capital Commitments
Prepaid expenses
Plant and
in each case
1.2.5.
1.3.1.
1.12.1.
1.17.6.
1.12.2
0.50
0.05
1.00
1.00
0.10
Lakhs
Lakhs
Lakhs
Lakhs
Lakhs
Ecoplast Limited
114
No
te 2
: P
rop
ert
y, P
lan
t &
Eq
uip
men
t an
d In
tan
gib
le A
ssets
Part
icu
lars
Lan
d-
Fre
eh
old
Bu
ild
ing
sP
lan
t &
Eq
uip
men
tF
urn
itu
re&
Fix
ture
sV
eh
icle
sO
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qu
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en
tTo
tal
Co
st
as a
t 1
st
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016
Additi
ons
Dele
tions
Gro
ss C
arr
yin
g v
alu
e a
s o
n M
arc
h 3
1,2
017
Additi
ons
Dele
tions
Gro
ss C
arr
yin
g v
alu
e a
s o
n M
arc
h 3
1,2
018
Accu
mu
late
d d
ep
recia
tio
n a
s o
n A
pri
l 1,2
016
Depre
ciatio
n c
harg
e for
the y
ear
Depre
ciatio
n e
limin
ate
d u
pto
dis
posa
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Accu
mu
late
d d
ep
recia
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n a
s o
n M
arc
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1,2
017
Depre
ciatio
n c
harg
e for
the y
ear
Depre
ciatio
n c
harg
ed u
pto
dis
posa
l
Accu
mu
late
d d
ep
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tio
n a
s o
n M
arc
h 3
1,2
018
Net
bo
ok v
alu
e
At 31st
, 2016
At 31st
Marc
h, 2017
At
31st
Marc
h, 2018
Marc
h
50,9
6,1
85 - -
50,9
6,1
85 - -
50,9
6,1
85 - - - - -
-
-
50,9
6,1
85
50,9
6,1
85
50,9
6,1
85
67,3
5,9
03 -
4,0
0,7
94 - -
1
-
1
-
3,3
1,4
5,3
37
3,9
8,8
1,2
40
4,0
2,8
2,0
34
7,1
2,5
98
17,1
2,5
98
8,4
9,9
52
35,6
2,5
50
3,3
1,4
5,3
37
3,8
1,6
8,6
41
3,6
7,1
9,4
83
8,1
4,4
8,4
29
3,2
1,7
5,1
21 -
11,3
6,2
3,5
50
1,3
5,4
6,7
04
13,7
8,0
44
12,5
7,9
2,2
10 -
1,7
9,3
7,5
55 -
1,7
9,3
7,5
55
1,7
9,7
7,9
80 -
3,5
9,1
5,5
35
8,1
4,4
8,4
29
9,5
6,8
5,9
95
8,9
8,7
6,6
75
3,9
5,0
37
1,9
4,5
48
10,1
20
5,7
9,4
65
7,0
0,8
96 -
12,8
0,3
61 -
98,9
57
776
98,1
81
1,0
6,9
48 -
2,0
5,1
29
3,9
5,0
37
4,8
1,2
84
10,7
5,2
32
41,1
0,8
97
70,2
01 -
41,8
1,0
98 -
11,5
3,9
68
30,2
7,1
30 -
9,0
0,8
36 -
9,0
0,8
36
8,9
3,5
52
9,7
3,2
47
8,2
1,1
41
41,1
0,8
97
32,8
0,2
61
22,0
5,9
88
20,3
7,6
39
6,6
4,8
95 -
27,0
2,5
34
10,9
3,1
06
50,9
10
37,4
4,7
30 -
6,7
6,7
30 -
6,7
6,7
30
7,7
0,5
27
48,3
65
13,9
8,8
92
20,3
7,6
39
20,2
5,8
04
23,4
5,8
38
12,6
2,3
3,5
24
3,9
8,4
0,6
68
10,1
20
16,6
0,6
4,0
72
1,5
7,4
1,5
00
25,8
2,9
22
17,9
2,2
2,6
50 - -
2,1
3,2
6,6
77
776
2,1
3,2
5,9
01
2,1
5,9
8,9
59
10,2
1,6
12
4,1
9,0
3,2
48
12,6
2,3
3,5
24
14,4
7,3
8,1
71
13,7
3,2
4,7
09
(i)
Gro
ss B
lock
incl
ude R
s.24,4
6,4
49
on
reva
luatio
n o
f F
ixed A
ssets
as
on 3
1st
Marc
h,
1994 e
xcl
udin
g V
ehic
les,
Furn
iture
& F
ixtu
res
and O
ffic
e
Equip
ments
.
(ii)
Build
ings
incl
ude R
s.250 b
ein
g c
ost
of 5
share
s of R
s.50 e
ach
in R
iddhi P
rem
ises
Co-o
pera
tive H
ousi
ng S
oci
ety
Ltd
.
(iii)
Ass
ets
are
morg
aged /
hyp
oth
eca
ted a
s se
curity
for b
orr
ow
ing
(iv)
The C
om
pany
has
adopte
d c
arr
ying v
alu
e a
s re
cogniz
ed in t
he f
inanci
al st
ate
ment
as
at
31st
Ma
rch,
2016,
measu
red a
s per
Pre
vious
GA
AP
as
its
deem
ed c
ost
.
No
tes t
o C
on
so
lid
ate
d F
inan
cia
l S
tate
men
ts f
or
the y
ear
en
ded
31st
Marc
h,
2018
Annual Report 2017 - 2018
115
Particulars Gross BlockAccumulatedDepreciation /Amortisation
Net Block as perIGAAP
Ind ASReclassification
Net Block
As at1st April, 2016
Land -
Vehicles
Capital Work-in-progress
Freehold
Building
Plant and Equipment
Furniture and Fixtures
Office Equipments
Total
50,96,185
5,52,69,214
24,37,46,693
39,90,919
98,87,791
1,48,97,567
6,40,959
33,28,88,369
-
2,21,23,877
16,22,98,263
35,95,882
57,76,894
1,28,59,928
-
20,66,54,845
50,96,185
3,31,45,337
8,14,48,429
3,95,037
41,10,897
20,37,639
6,40,959
12,62,33,524
50,96,185
3,31,45,337
8,14,48,429
3,95,037
41,10,897
20,37,639
6,40,959
12,62,33,524
-
-
-
-
-
-
-
2 CAPITAL WORK-IN-PROGRESS
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Capital work-in-progress 38,47,366 6,40,959-
4 LOANS
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Security deposits ( Unsecured, considered good) 76,69,538 73,79,101 49,90,227
Loans and advances to employees 16,26,493 12,08,019 10,26,275
Total 92,96,031 85,87,120 60,16,502
5 OTHER NON CURRENT ASSETS
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Prepaid Expenses 2,46,676 1,94,458 2,77,636
Capital Advances 44,64,324 - 38,61,500
Advance income tax net of provisions 36,21,975 35,07,408 10,82,574
CST & VAT receivable on Assessment 1,89,964 1,75,779 1,11,200
Total 85,22,939 38,77,645 53,32,910
3 GOODWILL ON CONSOLIDATION
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Goodwill on consolidation 1,13,94,805 1,13,94,805 1,13,94,805
Total 1,13,94,805 1,13,94,805 1,13,94,805
Ecoplast Limited
116
Accordingly, its Net Block as on 31st March, 2016 is its Gross Block under Ind AS. Break up of the said Gross block asat 1st April, 2016 is as under:
6 INVENTORIES
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Raw materials 6,19,40,978 5,47,90,555 4,96,37,442
Raw-Materials in-transit 2,53,16,066 3,82,28,395 2,73,93,973
Semi Finished Goods 25,12,025
Work-in-progress 97,91,314 1,49,24,043 1,20,11,490
Finished goods 1,79,21,609 97,87,821 1,08,73,108
Finished Goods in-transit 38,44,334 43,40,219 22,73,061
Stores and Spares 3,200
Packing Materials. 24,66,755 13,66,046 34,57,228
Others - Scrap 4,303 17,624 17,149
Total 12,38,00,584 12,34,54,703 10,56,63,451
Footnote:(i) The mode of valuation has been stated in Note 1.10 .1(ii) Inventories have been hypothecated as security for borrowings
7.1 TRADE RECEIVABLES
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Unsecured
(i) Considered good 17,33,09,179 20,63,96,432 17,57,77,545
(ii) Considered doubtful 5,43,137 7,92,277 8,92,277
Less: Provision for doubtful trade receivables (5,80,025) (33,84,386) (31,54,196)
Total 17,32,72,290 20,38,04,323 17,35,15,626
7.2 CASH AND CASH EQUIVALENTS
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
(i) Balances with banks
In current accounts 1,00,55,607 24,92,060 8,88,641
In Fixed Deposit 5,82,000 - -
(ii) Cash in hand 5,86,046 3,39,764 7,62,781
Total 1,12,23,653 28,31,824 16,51,422
7.3 BANK BALANCES
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
“ In Fixed Deposit Accounts, held as margin money
against Letter of Credit " 18,48,497 24,70,468 27,37,618
Unpaid dividend accounts 8,65,407 8,41,190 10,26,568
Total 27,13,904 33,11,658 37,64,186
7.4 LOANS (CURRENT)
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Loans and Advances to employees 19,68,385 10,58,262 9,62,377
Total 19,68,385 10,58,262 9,62,377
Annual Report 2017 - 2018
117
Authorised share capital: No. of shares AmountBalance as at 1st April,2016 1,00,00,000 10,00,00,000Add / (Less): Changes during the year - -Balance as at 31st March,2017 1,00,00,000 10,00,00,000Add / (Less): Changes during the year - -Balance as at 31st March,2018 1,00,00,000 10,00,00,000Issued, Subscribed and paid up share capital: No. of shares AmountBalance as at 1st April,2016 30,00,000 3,00,00,000Add / (Less): Changes during the year - -Balance as at 31st March,2017 30,00,000 3,00,00,000Add / (Less): Changes during the year - -Balance as at 31st March,2018 30,00,000 3,00,00,000
7.5 OTHER FINANCIAL ASSETS
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Interest accrued on Fixed Deposits with Banks &Other Deposits 6,38,021 5,32,545 4,62,099
Discount Receivable 2,59,400 14,08,373 10,56,051
Total 8,97,421 19,40,918 15,18,150
8 OTHER CURRENT ASSETS
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
TDS Refund Receivable 3,60,814 3,60,814 4,39,326
Prepaid expenses 31,76,237 25,99,612 28,21,742
Advance to Trade Payables 15,81,511 15,76,361 10,96,071
Cenvat credit receivable 1,80,930 20,57,765 19,06,716
Interest Subsidy Receivable 39,04,316 - -
Income Tax Refunds Due 7,38,402 - -
Service Tax credit receivable - 33,26,526 19,92,933
Total 99,42,211 99,21,078 82,56,788
9 EQUITY SHARE CAPITAL
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Authorised
1,00,00,000 Equity Shares of Rs.10/- each 10,00,00,000 10,00,00,000 10,00,00,000
Issued, Subscribed and Paid up
30,00,000 Equity Shares of Rs. 10/- each fully paid up 3,00,00,000 3,00,00,000 3,00,00,000
Total 3,00,00,000 3,00,00,000 3,00,00,000
Notes:(i) Reconciliation of number of shares outstanding at the beginning and end of the year:
9.1 The Company has only one class of equity shares having a par value of Rs. 10 per share. Each Shareholder is eligible for one vote per share
9.2 The Paid-up Capital includes 1,500,000 Equity Shares of Rs.10 each allotted as fully paid up Bonus shares by capitalising Rs.5,000,000 out of General Reserve and Rs.10,000,000 out of Revaluation Reserve prior to listing of Company's Equity Shares.
9.3 The holders of equity shares will be entitled to receive reamining 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.
Ecoplast Limited
118
Mrs Amita J.DesaiAs at 1st April 2016 18.06% 5,41,846As at 31st March, 2017 18.06% 5,41,846As at 31st March, 2018 18.07% 5,42,146
Mrs Charulata N.PatelAs at 1st April 2016 12.59% 3,77,783As at 31st March, 2017 12.80% 3,83,911As at 31st March, 2018 12.80% 3,83,911
Silver Stream Properties LLPAs at 1st April 2016 15.89% 4,76,827As at 31st March, 2017 15.89% 4,76,827As at 31st March, 2018 15.89% 4,76,827
9.6 Details of shares held by each shareholder holding more than 5% shares in the Company:
Equity share of Rs. 10 each fully paid up with voting rightsNumber of fully
paid equity shares% Holding
10 OTHER EQUITY
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
(a) Securities premium Reserve
Balance as per last Balance Sheet 3,00,00,000 3,00,00,000 3,00,00,000
Closing Balance 3,00,00,000 3,00,00,000 3,00,00,000
(b) General reserve
Balance as per last Balance Sheet 5,07,81,315 5,07,81,315 4,82,81,315
Add: Transferred from surplus in Statement of Profit and Loss 25,00,000
Closing Balance 5,07,81,315 5,07,81,315 5,07,81,315
(c) Retained Earnings
Balance as per last Balance Sheet 12,91,86,923 9,95,89,992 8,15,04,320
Add: Profit for the year 3,50,95,835 2,95,96,932 2,60,01,766
16,42,82,759 12,91,86,923 10,75,06,086
Less: Appropriations
Transferred to General reserve - - 25,00,000
Payment of final Dividend to equity shareholders (Rs1.20 per share) 36,00,000 - -
Payment of Dividend distribution tax on final dividend 7,32,875 - -
Payment of Interim dividend - - 45,00,000
Payment of Dividend distribution tax on interim dividend - - 9,16,094
Closing Balance 15,99,49,884 12,91,86,923 9,95,89,992
(d) Other Comprehensive income
Balance as at beginning of the year (18,74,765)
Add:Remeasurement of Net defined benefit liability/(asset)(net of tax) 3,46,294 (18,74,765)
(15,28,471) (18,74,765) -
Total 23,92,02,728 20,80,93,474 18,03,71,307
9.4 The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in case of interim dividend.
9.5 During the Year there are no Changes in Number of Shares outstanding at the end of the reporting period in comparison to number of Shares Outstanding at the beginning of the reporting period.
Annual Report 2017 - 2018
119
10.1 Securities premiumSecurities reserve is used to record the Premium on issue of shares. This reserve is utilized in accordance with the provisions of the Act.
10.2 General ReserveThe general reserve is used from time to time to transfer profits from retained earnings for appropriations purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.
10.3 Retained earningsRetained earnings are the profits that the Company has earned till date, less any transfers to the general reserve, dividends or other distributions paid to shareholders
10.4 Other Comprehensive incomeThese are actuarial gains/ losses on employee benefit obligations.
11 NON CURRENT BORROWINGS
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Secured
Term Loans
Bank of Baroda Term Loan IV 7,14,430 24,78,282 42,40,698
Bank of Baroda Coporate Loan V 40,72,140 86,67,577 1,77,55,726
Bank of Baroda Term Loan VI 37,21,920 57,25,723
Bank of Baroda Term Loan VII 1,01,97,555 1,37,01,233
Unsecured
Car Loan 1,36,902 6,00,149
Inter Corporate Deposits 60,58,938 56,69,738
Total 1,87,06,045 3,67,68,655 2,82,66,311
Details:
11.1 The above are valued at Amortized cost.
11.2 The above Loans are Secured by Equitable Mortgage of Land & Factory Building of the Company at Abrama-Valsad, Office Premises at Andheri (East) Mumbai & hypothecation of Plant and Machineries, Electrical Installations, Furniture & Fixtures, Office Equpments and Other Movable Fixed Assets of the Company, both present and future and hypothecation of raw materials ,stock in process, Stores & Spares, packing materials and finished goods and book debts of the Company both present and future and further secured by personal guarantee of Managing Director.
11.3 Interest Rate Profile of Term Loans & Deposits are set out as below:
Particulars Rate of Interest(p.a.) Amount in Rs.
Term Loan from Bank-IV 10.00% 24,79,000
Corporate Loan from Bank-V 10.00% 88,45,000
Term Loan from Bank-VI 10.00% 57,27,000
Term Loan from Bank-VII 10.00% 1,37,04,000
3,07,55,000
11.4 Maturity Profile of Term Loans & Deposits is set out below:
ParticularsMaturity Profile (Amount in `)
Term Loan from Bank-IV 24,79,000 - -
Corporate Loan from Bank-V 88,45,000 - -
Term Loan from Bank-VI 40,08,000 17,19,000 -
Term Loan from Bank-VII 70,08,000 66,96,000
Car Loan under Hire Purchase
1-2 years 3-4 years > 4 years
Ecoplast Limited
120
12 PROVISIONS
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Provision for employee benefits:
Provision for compensated absences 48,40,592 43,00,200 34,75,187
Provision for gratuity 9,22,446
Total 57,63,038 43,00,200 34,75,187
13 DEFERRED TAX LIABILITIES (NET)
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Tax effect of items constituting deferred tax liability
On difference between book balance and tax balance of fixed assets 1,29,69,565 1,31,18,441 1,22,70,809
On Account of Retiring Gratuity -
Investments - -
Remeasurement of Defined benefit plans (OCI)
Loan to subsidiary -
Financial Guarantee -
Amortisation of government grant 1,02,767
-
Tax effect of items constituting deferred tax liability 1,30,72,332 1,31,18,441 1,22,70,809
-
Tax effect of items constituting deferred tax assets -
Provision for compensated absences, gratuity and other employee benefits 28,36,210 29,33,812 23,68,556
Provision for doubtful debts / advances (5,81,180) 3,45,764 2,95,014
Provision for diminution in the value of investments 15,86,049 15,86,049 15,86,049
Loan to subsidiary - - -
Fair valuation of Loan from holding Company (4,28,862)
Financial Guarantee - - -
Tax effect of items constituting deferred tax assets 34,12,217 48,65,624 42,49,619
-
Net deferred tax Liability / (Asset) (96,60,115) 82,52,817 80,21,190
14 OTHER NON-CURRENT LIABILITIES
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Deferred Grant income 28,49,201 31,60,023 34,70,845
Total 28,49,201 31,60,023 34,70,845
Annual Report 2017 - 2018
121
15.2 TRADE PAYABLES
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Trade payables:
Micro, Small and Medium Enterprises 2,99,989 6,71,965 4,93,582
Trade Payable to Related Party 5,22,911 9,47,908 -
Others 8,69,86,071 10,40,50,349 9,33,99,092
Total 8,78,08,971 10,56,70,222 9,38,92,674
(i) Disclosure under the Micro, Small and Medium Enterprises Development Act, 2006 :
Amount due to Micro, Small and Medium Enterprises as on 31st March, 2018 are disclosed on the basis of information
available with the Company regarding status of the suppliers is as follows :
ParticularsAs at
31st March,2018As at
31st March,2017As at
1st April, 2016
Principal Amount due and remaining unpaid 36,551 6,71,165 4,93,582
Interest due on above and the unpaid interest 402 25,228 15,674
Interest paid during the year - - -
Payment made beyond the appointed day during the year 2,22,421 1,27,147 7,86,092
Interest due and payable for the period of delay 365 361 419
Interest accrued and remaining unpaid 767 25,589 16,093
Amouont of further interest remaining due and payable in succeeding years 26,356 25,589 22,856
This information has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.
15.1 BORROWINGS (SHORT TERM)
Particulars As at
31st March,2018
As at
31st March,2017
As at1st April, 2016
Loans repayable on demand
From banks
Secured(10%) 6,61,16,945 8,99,06,756 6,98,69,363
From Others - Unsecured
Inter Corporate Deposits(11.5%) 80,00,000 80,00,000 80,00,000
Car Finance under H.P. Agreement - 4,57,546 11,29,155
Total 7,41,16,945 9,83,64,302 7,89,98,518
(i) "(Secured by hypothecation of inventories, book debts of the Company both present & futures and collaterally secured by
equitable mortgage of Company's Land and Factory Buildings at Abrama-Valsad and Office Premises at Andheri (East)
Mumbai, hypothecation of Plant and Machineries, Electrical Installations, Furniture & Fixtures, Office Equpments and
guaranteed by Managing Director)”
(ii) The above are valued at Amortized cost.
Ecoplast Limited
122
15.3 OTHER FINANCIAL LIABILITIES
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Current maturities of long-term Secured Debts (Refer Note No. 11) 1,19,28,000 1,19,28,000 77,64,000
Unclaimed dividends 8,65,347 8,40,530 10,25,907
Unclaimed matured deposits and interest accrued thereon 18,710 23,022 1,41,482
Financial guarantee obligation 1,01,626 - -
Current maturities of long-term Secured Debts-Car Loan Instalments - -
- -
Total 1,29,13,683 1,27,91,552 89,31,390
16 OTHER CURRENT LIABILITIES
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Deferred Grant income 3,10,822 3,10,822 3,10,822
Other payables
Statutory dues payable 25,09,502 32,11,019 36,17,066
Advances from customers 21,16,975 25,63,422 11,53,801
Others -Net Salaries & Wages Payable 6,35,530 7,08,170 7,53,012
Total 55,72,829 67,93,433 58,34,701
17 PROVISIONS
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Provision for employee benefits:
Provision for bonus 21,35,149 17,78,902 16,93,824
Provision for compensated absences 6,82,685 13,70,903 14,13,648
Provision for gratuity 9,45,542 14,23,393 5,81,108
Total 37,63,376 45,73,198 36,88,580
18 REVENUE FROM OPERATIONS
Particulars
Sale of products
Manufactured goods
Plastic Film 1,03,15,56,326 1,17,37,50,986
Others 60,23,177 -
Traded goods
Others 3,31,88,933 -
Other operating revenues
Sale of Scrap 19,29,748 15,33,393
Total 1,07,26,98,184 1,17,52,84,379
For the year ended31st March, 2017
For the year ended31st March, 2018
Annual Report 2017 - 2018
123
Footnote:
Impact of implementation of Goods and Services Tax (GST) on the financial statements
In accordance with Ind AS 18 on “Revenue” and Schedule III to the Companies Act, 2013, Sales for the previous year ended 31
March 2017 and for the period 01 April to 30 June 2017 were reported gross of Excise Duty and net of Value Added Tax (VAT)/ Sales
Tax. Excise Duty was reported as a separate expense line item. Consequent to the introduction of Goods and Services Tax (GST)
with effect from 1 July 2017, VAT/Sales Tax, Excise Duty etc. have been subsumed into GST and accordingly the same is not
recognised as part of sales as per the requirements of Ind AS 18. This has resulted in lower reported sales in the current year in
comparison to the sales reported under the pre-GST structure of indirect taxes. With the change in structure of indirect taxes,
expenses are also being reported net of taxes. Accordingly, Financial statements for the year ended 31 March 2018 and in
particular, Sales, absolute expenses, elements of Working Capital (Inventories, Trade payable, other current assets/current
liabilities etc.) and ratios in percentage of sales, are not comparable with the figures of the previous year.
19 OTHER INCOME
Particulars For the year ended31st March, 2017
Interest income
Interest from banks on Fixed Deposits 1,55,410 3,22,671
Interest Receiced-Security Deposit-APDCL 1,19,200
Interest on Deposit with Dakshin Gujarat Vij Co Ltd. & Others 5,12,318 4,63,662
Interest on Employees Loan 1,44,984 86,202
Interest on loan to subsidiary - -
Interest subsidy 39,04,316 -
Other non-operating income
Profit on sale of fixed assets 1,49,579 1,20,187
Liabilities / provisions no longer required written back (net) 25,67,986 3,31,135
Insurance Claim Received 3,10,758 5,12,303
Gain on foreign currency transactions and translation (net) 58,99,364 56,96,880
Miscellaneous income 11,02,009 12,20,425
Sundry Creditors W.back/ W.off 97,671 -
Export Incentive - MEIS Duty Script 49,20,182 -
Capital subsidy - -
Fair Valuation of financial guarantee - -
Amortisation of government grant - 3,10,822
Total 1,98,83,777 90,64,288
For the year ended31st March, 2018
20 COST OF MATERIALS CONSUMED
Particulars For the year ended31st March, 2017
Opening Stock 5,52,32,055 5,03,29,329
Add: Purchases 76,78,45,782 79,53,19,011
Less: Closing Stock (6,21,46,519) (5,52,32,055)
Purchases Includes Stock in Trade 2,63,55,529 2,16,95,716
Total Cost of materials consumed 76,09,31,318 79,04,16,285
For the year ended31st March, 2018
Ecoplast Limited
124
21 CHANGES IN INVENTORIES OF FINISHED GOODS AND WORK IN PROGRESS
Particulars For the year ended31st March, 2017
Inventories at the end of the year:
Finished goods 2,17,46,678 1,29,01,420
Work-in-progress 1,23,03,339 1,49,24,043
3,40,50,017 2,78,25,463
Inventories at the beginning of the year: -
Finished goods 1,28,58,700 1,17,38,238
Work-in-progress 1,49,24,043 1,20,11,490
2,77,82,743 2,37,49,728
Add/(Less):- Variation in excise duty on opening and closing stock of finished goods - (1,38,591)
-
Net (increase) / decrease (62,67,274) (39,37,144)
For the year ended31st March, 2018
22 EXCISE DUTY
Particulars For the year ended31st March, 2017
Excise duty (Gross) 3,54,27,148 12,33,82,698
Total 3,54,27,148 12,33,82,698
For the year ended31st March, 2018
23 EMPLOYEE BENEFIT EXPENSES
Particulars For the year ended31st March, 2017
Salaries, Wages, Bonus and Other Allowances 6,73,33,929 6,24,02,815
Contributions to Provident and other funds 88,46,030 67,20,079
Staff Welfare expenses 18,45,916 14,82,901
Total 7,80,25,875 7,06,05,795
For the year ended31st March, 2018
Footnote:
Contribution to Provident and other funds includes contribution to Provident fund for directors Rs. 6,76,800 (For 31st March, 2017:
Rs. 6,04,800; For 1st April, 2016: Rs.5,40,000)
24 FINANCE COSTS
Particulars For the year ended31st March, 2017
Interest expense 1,34,95,829 1,70,28,055
Other Borrowing costs 24,44,846 30,00,432
Total 1,59,40,675 2,00,28,487
For the year ended31st March, 2018
Annual Report 2017 - 2018
125
25 OTHER EXPENSES
Particulars For the year ended31st March, 2017
Consumption of Stores and Spare parts 14,38,749 31,04,823
Consumption of Packing Materials 2,08,65,432 1,99,87,182
Consumption of Printing Cylinders 24,76,529 16,94,199
Power and fuel 4,79,90,704 4,77,63,811
Conversion Charges Paid 9,07,927 1,67,086
Repairs and Maintenance - Buildings 22,22,045 14,66,789
Repairs and Maintenance - Machinery 77,78,535 65,55,768
Repairs and Maintenance - Others 8,73,634 8,62,821
Insurance 25,90,699 25,69,925
Rates and taxes 5,56,429 21,67,057
Communication 8,91,313 8,28,682
Travelling and Conveyance 65,23,276 43,34,048
Printing and Stationery 10,81,099 11,33,035
Freight and forwarding 1,26,78,054 1,16,00,732
Sales Commission 5,08,265 2,08,841
Sales discount - 3,00,648
Business promotion 64,399 87,013
Donations and contributions 3,50,600 3,01,100
Motor Car Expenses 8,34,686 7,91,851
Security Charges 18,17,909 16,80,668
Royalty Paid 44,92,543 53,80,400
Directors Sitting Fees 9,00,000 8,20,000
Commission to Non-Executive Directors 4,46,231 2,90,385
Legal and Professional 69,01,008 31,34,250
Payments to Auditors 8,08,722 11,02,141
Rent including lease rentals 99,788 69,678
Other Miscellaneous Expenses 82,86,130 57,66,422
Total 13,43,84,705 12,41,69,354
For the year ended31st March, 2018
Particulars For the year ended31st March, 2017
Payments to the auditors comprises
(a) To statutory auditors
Audit Fees 4,20,000 4,20,000
Taxation Matters 60,000 70,000
Company Law Matters - 70,000
Tax Audit Fees - 70,000
Certification and Other Services 2,70,894 2,99,423
Reimburesment of Expenses 57,828 1,72,718
Total 8,08,722 11,02,141
For the year ended31st March, 2018
Ecoplast Limited
126
a. Equity Share Capital:
Particulars
Balance as at April, 2016 3,00,00,000
Changes in equity share capital during the year 2016-17 -
Balance as at the 31 March 2017 3,00,00,000
Changes in equity share capital during 2017-18 -
Balance as at the 31 March 2018 3,00,00,000
Amount
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31ST MARCH, 2018
Amount (Rs.)
b. Other Equity:
Particulars
As at 1st April, 2016 5,07,81,315 3,00,00,000 9,95,89,992 18,03,71,307
Profit for the year - - 2,95,96,932 2,95,96,932
Other comprehensive income for the year - - -
Remeasurement of the Net Defined benefit
liability/asset, net of tax effect - - (18,74,765) (18,74,765)
Additions/deletions during the year - -
-
As at 31st March, 2017 5,07,81,315 3,00,00,000 12,91,86,923 (18,74,765) 20,80,93,474
Profit for the year 3,50,95,835 3,50,95,835
Other comprehensive income for the year -
Remeasurement of the Net Defined benefit
liability/asset, net of tax effect 3,46,294 3,46,294
-
Corporate Dividend (36,00,000) (36,00,000)
Corporate Dividend Tax (7,32,875) (7,32,875)
-
As at 31st March, 2018 5,07,81,315 3,00,00,000 15,99,49,884 (15,28,471) 23,92,02,728
Reserves and Surplus
GeneralReserve
Total EquityOther
ComprehensiveIncome (OCI)
SecuritiesPremium
RetainedEarnings
26. FIRST-TIME ADOPTION OF Ind AS:
These are the Company’s first financial statements prepared in accordance with Ind AS.
The Company has adopted Indian Accounting Standards (Ind AS) notified by the Ministry of Corporate Affairs with effect from
1st April, 2017, with a transition date of 1st April, 2016. Ind AS 101 - First time adoption of Indian Accounting Standards
requires that all Ind AS's and interpretations that are issued an effective for the first Ind AS financial statements which is for the
year ended 31st March, 2018 for the Company, be applied retrospectively and consistently for all financial years presented.
Set out below are the Ind AS 101 optional exemptions availed as applicable and mandatory exceptions applied in the transition
from previous GAAP to Ind AS.
A. Optional Exemptions availed:
(a) Deemed Cost
The Company has elected to continue with the carrying value for all of its property, plant and equipment and Intangible assets
as recognized in the financial statement as at 31.03.2016, measured as per the previous GAAP and use that as its deemed
cost as at the transition date.
Annual Report 2017 - 2018
127
(b) Investments in subsidiaries and joint ventures
The Company has elected to continue with the carrying amount of investment as recognized in the financial statement as at
31.03.2016, measured as per the previous GAAP and used that as its deemed cost as at the transition date.
B. Applicable Mandatory Exceptions
(a) Estimates
An entity’s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for
the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies).
Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous
GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not
required under previous GAAP:
(i) Impairment of financial assets based on expected credit loss model.
(b) Derecognition of financial assets and financial liabilities
Ind AS 101 requires a first time adopter to apply the derecognition provisions of Ind AS 109 prospectively for transactions
occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows the first time adopter to apply the de-
recognition requirement in Ind AS 109 retrospectively from the date to the entities choosing, provided that the information
needed to apply Ind AS 109 to financial assets and financial liabilities to de-recognized as a result of past transactions was
obtained at the time of initially accounting for those transactions. The Company has elected to apply the de-recognition
provision of Ind AS 109 prospectively from the date of transition to Ind AS.
(c) Classification and measurement of financial assets
As required under Ind AS 101 the Company has assessed the classification and measurement of financial assets on the basis
of the facts and circumstances that exist at the date of transition to Ind AS. Where practicable, measurement of financial
assets accounted at amortized cost has been done retrospectively.
(d) Impairment of Financial Assets
Ind AS 101 requires an entity to apply the Ind AS requirements retrospectively if it is practicable without undue cost and effort to
determine the credit risk that debt financial instruments where initially recognized. The company has measured impairment
losses on financial assets as on the date of transition i.e. 1st April, 2016 in view of cost and effort.
C. Transition to Ind AS - Reconciliations
The following reconciliations provide a quantification of the effect of significant differences arising from the transition from
previous GAAP to Ind AS as required under Ind AS 101:
(i) Reconciliation of Balance sheet as at 1st April, 2016 (Transition Date);
(ii) Reconciliation of Balance sheet as at 31st March, 2017;
(iii) Reconciliation of Total Comprehensive Income for the year ended 31st March, 2017;
(iv) Reconciliation of Total Equity as at 1st April, 2016 and as at 31st March, 2017;
(v) Adjustments to Cash Flow Statements as at 31st March, 2017
The presentation requirements under previous GAAP differs from Ind AS, and hence, previous GAAP information has been
regrouped for ease of reconciliation with Ind AS. The re-grouped previous GAAP information is derived from the Financial
Statements of the Company prepared in accordance with previous GAAP.
Ecoplast Limited
128
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,87
5
(2
5,9
2,1
09
) 3
4,6
3,2
2,7
66
29,7
5,9
3,9
19
(22,6
1,9
19)
29,5
3,3
2,0
01
TO
TA
L A
SS
ET
S5
1,9
4,6
0,8
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(
6,9
2,9
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) 5
1,8
7,6
7,8
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44,7
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2,6
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(22,6
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19)
44,4
9,5
0,7
00
EQ
UIT
Y A
ND
LIA
BIL
ITIE
SE
qu
ity
(a)
Equity
Share
capita
l 3
,00
,00
,00
0
-
3,0
0,0
0,0
00
3,0
0,0
0,0
00
-
3,0
0,0
0,0
00
(b)
Oth
er
Equity
21
,22
,89
,35
1
(4
1,9
5,8
77
) 2
0,8
0,9
3,4
74
18,6
4,1
4,8
92
(60,4
3,5
85)
18,0
3,7
1,3
07
Tota
l equity
24
,22
,89
,35
1
(4
1,9
5,8
77
) 2
3,8
0,9
3,4
74
21,6
4,1
4,8
92
(60,4
3,5
85)
21,0
3,7
1,3
07
Lia
bilit
ies
(1)
No
n-c
urr
en
t li
ab
ilit
ies
(a)
Fin
anci
al L
iabili
ties
(i) B
orr
ow
ings
3,6
7,6
8,6
55
-
3,6
7,6
8,6
55
2,8
2,6
6,3
11
-
2,8
2,6
6,3
11(b
) P
rovi
sions
43
,00
,20
0
-
43
,00,2
00
34,7
5,1
87
-
34,7
5,1
87
(c)
Defe
rre
d t
ax
liabili
ties
(Net)
82
,20
,75
9
32
,05
8
82
,52,8
17
80,2
1,1
90
-
80,2
1,1
90
(d)
Oth
er
non-c
urr
ent
liabili
ties
-
31
,60
,02
3
31
,60,0
23
-
34,7
0,8
45
34,7
0,8
45
To
tal n
on
cu
rren
t li
ab
ilit
ies
4,9
2,8
9,6
14
3
1,9
2,0
81
5
,24
,81,6
95
3,9
7,6
2,6
88
34,7
0,8
45
4,3
2,3
3,5
33
(2)
Cu
rren
t liab
ilit
ies
(a)
Fin
ancia
l Lia
bili
ties
(i)
Borr
ow
ings
9,8
3,6
4,3
02
-
9,8
3,6
4,3
01
7,8
9,9
8,5
18
-
7,8
9,9
8,5
17
(ii) T
rade p
aya
ble
s 1
0,5
6,7
0,2
22
-
10
,56
,70,2
21
9,3
8,9
2,6
74
-
9,3
8,9
2,6
74
(iii)
Oth
er
financi
al l
iabili
ties
1,2
7,9
1,5
52
-
1,2
7,9
1,5
52
89,3
1,3
90
-
89,3
1,3
89
(b)
Oth
er
curr
ent
liabili
ties
64
,82
,611
3
,10
,82
2
67
,93,4
33
55,2
3,8
79
3,1
0,8
22
58,3
4,7
01
(c)
Pro
visi
ons
45
,73
,19
8
-
45
,73,1
98
36,8
8,5
80
-
36,8
8,5
80
(d)
Curr
ent Ta
x Lia
bili
ties
(Net)
-
-
-
-
-
-To
tal cu
rren
t li
ab
ilit
ies
22
,78
,81
,88
4
3,1
0,8
22
2
2,8
1,9
2,7
06
19,1
0,3
5,0
41
3,1
0,8
22
19,1
3,4
5,8
61
TO
TA
L E
QU
ITY
AN
D L
IAB
ILIT
IES
51
,94
,60
,85
0
(6
,92
,97
5)
51
,87
,67,8
74
44,7
2,1
2,6
21
(22,6
1,9
19)
44,4
9,5
0,7
00
Annual Report 2017 - 2018
129
(iii) Reconciliation of Total Comprehensive Income for the year ended 31st March, 2017:
Particulars
I Revenue From Operations 1,17,52,84,379 - 1,17,52,84,379
II Other Income D 87,53,466 3,10,822 90,64,288
III Total Income (I+II) 1,18,40,37,845 3,10,822 1,18,43,48,667
IV EXPENSES
Cost of materials consumed 79,04,16,285 - 79,04,16,285
Changes in inventories of finished goods,
stock in trade and work-in-progress (39,37,144) - (39,37,144)
Excise Duty 12,33,82,698 - 12,33,82,698
Employee benefits expense 7,06,05,795 - 7,06,05,795
Finance costs 2,00,28,487 - 2,00,28,487
Depreciation and amortization expense 2,13,26,677 - 2,13,26,677
Other expenses A, E 12,57,38,298 (15,68,944) 12,41,69,354
Total expenses (IV) 1,14,75,61,096 (15,68,944) 1,14,59,92,152
V Profit before tax (III-IV) 3,64,76,749 18,79,766 3,83,56,515
VI Tax expense:
(1) Current tax 89,33,000 - 89,33,000
(2) Deferred tax (2,66,266) 32,058 (2,34,208)
(3) Tax in respect of Earlier Years 60,791 - 60,791
VII Profit for the year (V-VI) 2,77,49,224 18,47,708 2,95,96,932
VIII Other Comprehensive Income
A (i) Items that will not be reclassified to profit or loss B, F (14,08,930) - (14,08,930)
(ii) Income tax relating to items that will not be reclassified to profit or loss (4,65,835) - (4,65,835)
IX Total Comprehensive Income for the period (XIII + XIV)
(Comprising Profit (Loss) and Other Comprehensive Income for the period) 2,58,74,459 18,47,708 2,77,22,167
X Earnings per equity share (Nominal value per share Rs.10 each)
(1)Basic 8.62 0.00 9.87
(2)Diluted 8.62 0.00 9.87
PreviousGAAP
Effects oftransitionto Ind AS
Amountas per IndAS SOP&L
SrNo
Notes
Reconciliation of Total Comprehensive Income:
Particulars For the year ended31st March, 2017
Net Profit as per Previous GAAP 2,58,74,459
(i) Actuarial (gain)/loss on employee defined benefit plans recognized
in Other Comprehensive Income B 14,08,930
(ii) Loss allowance of trade receivables as per expected credit loss model A (3,30,190)
(iii) Amortisation of government grant D 3,10,822
(iv) Deferred tax impact C 4,33,777
(v) Reversal of impairment on goodwill E 18,99,134
Net profit after tax as per Ind AS 2,95,96,932
Other Comprehensive Income (net of taxes) (18,74,765)
Total Comprehensive income as per Ind AS 2,77,22,167
Note
Ecoplast Limited
130
(iv) Reconciliation of Total Equity as at 1st April, 2016 and as at 31st March, 2017:
Particulars NoteAs at
31st March,2017As at
1st April, 2016
Equity as per Previous GAAP 24,22,89,351 21,64,14,892
(i) Loss allowance of trade receivables as per expected credit loss model A (25,92,109) (22,61,919)
(ii) Deferred tax impact C (32,058) 0
(iii) Amortisation of government grant D (34,70,845) (37,81,667)
(iv) Reversal of goodwill impairment/amortisation E 18,99,134
Total Impact (41,95,877) (60,43,586)
Total Equity as per Ind AS 23,80,93,474 21,03,71,306
(v) Adjustments to the Statement of Cash Flows as at 31st March, 2017
The Ind AS adjustments are non cash adjustments. Consequently, Ind AS adoption has no impact on the net cash flow for the
year ended 31st March, 2017 as compared with the previous GAAP
Notes to reconciliations:-
A Trade receivables
Under previous GAAP, the Company had recognized provision on trade receivables based on the expectation of the Company.
Under Ind AS the Company provides loss allowance on receivables based on the Expected Credit Loss (ECL) model which is
measured following the "simplified approach" at an amount equal to the lifetime ECL at each reporting date.
Particulars As at31st March,2017
As at1st April, 2016
Carrying value of Allowance for doubtful trade receivables using ECL model (22,61,919) -
Increase in the provision during the year (3,30,190) (22,61,919)
C Deferred Tax
"Under previous GAAP, deferred tax accounting was done using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Under Ind AS, accounting of deferred taxes is done using the Balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base.”
For detailed working refer note 13 in the financial statement
D Government Grant
"The Company had received Government grant against a capital asset in the year 2013-14. Under previous GAAP the same was accounted for in Capital Reserve. Under Ind AS, the grant needs to be recognized as deferred income over the useful life of the capital asset.”
Particulars For the year ended31st March, 2017
Actuarial gains/(loss) (14,08,930)
Tax effect thereon (4,65,835)
B Remeasurement of defined benefit liabilities
Under previous GAAP, actuarial gains and losses were recognized in profit or loss.
Under Ind AS, the actuarial gains and losses form part of remeasurement of the net defined benefit liability/asset which is
recognized in other comprehensive income. Consequently, the tax effect of the same has also been recognized in other
comprehensive income under Ind AS instead of profit or loss.
Annual Report 2017 - 2018
131
E Impairment/ Amortisation of Goodwill on consolidation
"Under previous GAAP, goodwill used to be impaired/amortisedUnder Ind AS, Company has elected to continue with the
carrying value for all of its property, plant and equipment and Intangible assets as recognized in the financial statement as at
31.03.2016, measured as per the previous GAAP and use that as its deemed cost as at the transition date.
Accordingly,impairment provided as on 31.03.17 has been reversed”
F Other Comprehensive Income
"Under previous GAAP, there was no concept of other comprehensive income. Under Ind AS specified items of income,
expense, gains or losses are required to be presented in other comprehensive income. “
27 Earnings per share (EPS)
Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the
weighted average number of Equity shares outstanding during the year.
Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company by the weighted
average number of Equity shares outstanding during the year.
Particulars For the year ended31st March, 2018
Profit attributable to equity holders of the company for basic and
diluted earnings per share 3,50,95,836 2,95,96,932
For the year ended31st March, 2017
(i) Profit attributable to Equity holders of Company
Particulars For the year ended31st March, 2018
Number of issued equity shares 30,00,000 30,00,000
Nominal Value per share 10.00 10
Weighted average number of shares at 31st March for basic and diluted
earnings per share 30,00,000 30,00,000
Basic and Diluted earnings per share (in Rs) 11.70 9.87
For the year ended31st March, 2017
(ii) Weighted average number of ordinary shares
Particulars For the year ended31st March, 2018
Current tax expense
Current year 1,67,57,000 89,33,000
Short/(Excess) provision of earlier years - 60,791
Deferred tax expense
Origination and reversal of temporary differences 6,87,719 (2,34,208)
Tax expense recognised in the income statement 1,74,44,719 87,59,583
For the year ended31st March, 2017
28 Tax Expense
(a) Amounts recognised in profit and loss
Ecoplast Limited
132
Particulars For the year ended31st March, 2018
Items that will not be reclassified to profit or loss
Remeasurements of the defined benefit plans 2,60,248 86,046 3,46,294 (14,08,930) (4,65,835) (18,74,765)
Equity Instruments through Other Comprehensive Income - -
2,60,248 86,046 3,46,294 (14,08,930) (4,65,835) (18,74,765)
For the year ended31st March, 2017
(b) Amounts recognised in other comprehensive income
Before TaxTax
(expense) Net of Tax Before TaxTax
(expense) Net of Tax
Particulars For the year ended31st March, 2018
Profit before tax 5,25,40,555 3,83,56,515
Less: Profit of subsidiary on which tax is not payable (55,72,453) (56,91,721)
Net profit on which tax is payable 4,69,68,102 3,26,64,793
Tax using the Company’s domestic tax rate 33.06% 1,55,27,654 33.06% 1,07,98,981
Tax effect of:
Expenses not deductible for tax purposes 2.61% 12,27,929 -5.72% (18,66,855)
Income exempt from Income taxes
Tax due to change in tax rate
Others 1.47% 6,89,135 -0.53% -1,72,542
Effective income tax rate 37.1% 1,74,44,719 26.8% 87,59,583
For the year ended31st March, 2017
(c) Reconciliation of effective tax rate
Amounts% Amounts%
(d) Movement in deferred tax
Particulars
As at 31st March, 2017
On difference between book balance and
tax balance of fixed assets 1,31,18,441 (1,48,876) 1,29,69,565 1,29,69,565
Amortisation of government grant 1,02,767 1,02,767
Provision for compensated absences, gratuity and
other employee benefits (29,33,812) 1,83,648 (86,046) (28,36,210) 28,36,210
Provision for doubtful debts / advances (3,45,764) 9,26,944 5,81,180 (5,81,180)
Provision for diminution in the value of investments (15,86,049) - (15,86,049) 15,86,049
Tax assets (Liabilities) 82,52,817 10,64,482 (86,046) 92,31,253 38,41,079 1,29,69,565
Reversal of Opening DTL - - - -
Tax assets (Liabilities) (Net) 82,52,817 10,64,482 (86,046) 92,31,253 38,41,079 1,29,69,565
Net balanceApril 1, 2017
As at 31st March, 2018
Recognizedin profitor loss
Recognizedin OCI
Net Deferredtax asset
Deferredtax liability
Recognizeddirectlyin equity
Annual Report 2017 - 2018
133
Particulars
As at 1st April, 2016
Tax effect of items constituting deferred tax liability
On difference between book balance and
tax balance of fixed assets 1,22,70,809 8,47,632 - 1,31,18,441 1,31,18,441
Provision for compensated absences, gratuity and
other employee benefits (23,68,556) (10,31,090) 4,65,835 (29,33,812) 29,33,812
Provision for doubtful debts / advances (2,95,014) (50,750) - (3,45,764) 3,45,764
Provision for diminution in the value of investments (15,86,049) - - (15,86,049) 15,86,049
Tax assets (Liabilities) 80,21,190.03 (2,34,208) 4,65,835 82,52,817 48,65,624 1,31,18,441
Reversal of Opening DTL - - - -
Tax assets (Liabilities) (Net) 80,21,190.03 (2,34,208) 4,65,834.53 82,52,817 48,65,624.43 1,31,18,441
Net balanceApril 1, 2016
As at 31st March, 2017
Recognizedin profitor loss
Recognizedin OCI
Net Deferredtax asset
Deferredtax liability
Recognizeddirectlyin equity
29 Financial instruments
A. Capital Management:
The Company’s policy is to maintain a strong capital base so as to ensure that the Company is able to continue as going
concern to sustain future development of the business. The capital structure of the Company is based on management’s
judgement of its strategic and day-to-day needs with a focus on total equity so as to maintain investor, creditors and market
conditions.
Its guiding principles
i) Maintenance of financial strength to ensure the highest ratings;
ii) Ensure financial flexibility and diversify sources at financing;
iii) Manage Company exposure in forex to mitigate risks to earnings;
iv) Leverage optimally in order to maximum shareholders returns while maintaining strength and flexibility of the balance
sheet.
The policy is also adjusted based on underlying macro-economic factors affecting business environment, financial and market
conditions.
The Company monitors capital on the basis of the following debt equity ratio:
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Borrowings 1,87,06,045 3,67,68,655 2,82,66,311
Less: Cash and bank balances 1,12,23,653 28,31,824 16,51,422
Net debts 74,82,392 3,39,36,831 2,66,14,888
Total equity 26,92,02,728 23,80,93,474 21,03,71,307
Net debt to equity ratio 2.78% 14.25% 12.65%
Ecoplast Limited
134
B Fair value measurement hierarchy:
Particulars
As at 31st March, 2018 As at 1st April, 2016
Financial assets
At FVTPL - - - - - - - - - - -
At FVTOCI - - - - - - - - - - -
At Amortized cost
Trade Receivables 17,32,72,290 - - - 20,38,04,323 - - - 17,35,15,626 - - -
Cash and cash equivalents 1,12,23,653 - - - 28,31,824 - - - 16,51,422 - - -
Bank balances other than above 27,13,904 - - - 33,11,658 - - - 37,64,186 - - -
Loans 19,68,385 - - - 10,58,262 - - - 9,62,377 - - -
Other financial assets 8,97,421 - - - 19,40,918 - - - 15,18,150 - - -
Financial liabilities - - - - - - - - - - - -
At FVTPL - - - - - - - - - - - -
At Amortized cost - - - - - - - - - - - -
Borrowings 9,28,22,990 - - - 13,51,32,956 - - - 10,72,64,828 - - -
Trade payables 8,78,08,971 - - - 10,56,70,221 - - - 9,38,92,674 - - -
Other financial liabilities 1,29,13,683 - - - 1,27,91,552 - - - 89,31,389 - - -
- - - - - - - - - - - -
As at 31st March, 2017
CarryingAmount
Level of input used in
Level 1 Level 2 Level 3
CarryingAmount
Level of input used in
Level 1 Level 2 Level 3
CarryingAmount
Level of input used in
Level 1 Level 2 Level 3
The fair values of the financial assets and liabilities are defined as the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants at the measurement date. Methods and assumptions
used to estimate the fair values are consistent with those used for the year ended 31st March, 2017.
The financial instruments are categorized into three levels based on the inputs used to arrive at fair value measurements as
described below:
i) Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.
ii) Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques
which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant
inputs required to fair value an instrument are observable, the instrument is included in level 2. In the case of Derivative
contracts, the Company has valued the same using the forward exchange rate as at the reporting date.
iii) Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
C Calculation of fair values:
Financial assets and liabilities measured at fair value as at Balance Sheet date:
Other financial assets and liabilities:-
-Cash and cash equivalents , trade receivables, other financial assets , trade payables, and other financial liabilitieshave fair
values that approximate to their carrying amounts due to their short-term nature.
-Loans and Investments have fair values that approximate to their carrying amounts as it is based on the net present value of
the anticipated future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities.
Annual Report 2017 - 2018
135
30 Financial risk management
Risk management framework
The Company’s financial risk management is an integral part of how to plan and execute its business strategies. The Company’s business activities are exposed to a variety of financial risks, namely liquidity risk, market risks, commodity risk and credit risk. The Company’s senior management has the overall responsibility for establishing and governing the Company’s risk management framework. The Company has constituted a Risk Management Committee, which is responsible for developing and monitoring the Company’s risk management policies. The Company’s risk management policies are established to identify and analyze the risks faced by the Company, to set and monitor appropriate risk limits and controls, periodically review the changes in market conditions and reflect the changes in the policy accordingly. The key risks and mitigating actions are also placed before the Audit Committee of the Company.
The Company has exposure to the following risks arising from financial instruments:
A) Credit risk;
B) Liquidity risk;
C) Market risk; and
D) Interest rate risk
E) Commodity Risk
A Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual obligations.
Trade and other receivables
The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer and including the default risk of the industry, also has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.
Other than trade and other receivables, the Company has no other financial assets that are past due but not impaired.
The Company uses an allowance matrix to measure the expected credit losses of trade receivables. The loss rates are computed using a 'roll rate' method based on the probability of receivable progressing through successive stages of delinquency to write off.
The following table provides information about the exposure to credit risk and ECLs for trade receivables:
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Not due 12,06,95,674 15,76,29,225 13,41,81,935
1 - 180 Days 5,21,79,151 4,18,90,421 3,93,83,074
181-360 Days 4,10,329 42,76,173 -
361-500 Days 24,024 1,61,919 3,169
More Than 500 days 5,43,137 30,75,998 31,00,060
Allowance for doubtful trade receivables
(Expected credit loss allowance) (5,80,025) (32,29,413) (31,52,611)
Total 17,32,72,291 20,38,04,323 17,35,15,627
Ageing of Trade receivables
Particulars As at31st March,2018
As at31st March,2017
Opening provision (8,92,277) -
Additional provision made
Provision Reverse (3,12,252) (8,92,277)
Closing provision (5,80,025) (8,92,277)
Movement in provisions of doubtful debts
Ecoplast Limited
136
Cash and cash equivalents
The Company held cash and cash equivalents of Rs. 11223653 as at 31st March, 2018 (31st March, 2017: Rs. 2831824, 1st April, 2016 : Rs.1651422). The cash and cash equivalents are held with banks.
B Liquidity risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time, or at a reasonable price.
Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has built an appropriate liquidity risk management framework for the management of the Company's short, medium and long term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.
Exposure to liquidity risk
The following table shows the maturity analysis of the Company's financial liabilities based on contractually agreed undiscounted cash flows as at the Balance Sheet date:
ParticularsAs at 1st April, 2016
Non-derivative financial liabilities
Borrowings 10,72,64,828 7,89,98,517 2,82,66,311 -
Trade and other payables 9,38,92,674 9,38,92,674 - -
Other financial liabilities 89,31,389 89,31,389 - -
Derivative financial liabilities - - -
21,00,88,891 18,18,22,581 2,82,66,311 -
Carrying amount
Withinone year
Carryingamount
More thanfive years
One to fiveyears
ParticularsAs at 31st March, 2017
Non-derivative financial liabilities
Borrowings 13,51,32,956 9,83,64,301 3,67,68,655
Trade and other payables 10,56,70,221 10,56,70,221 - -
Other financial liabilities 1,27,91,552 1,27,91,552 - -
Derivative financial liabilities -
25,35,94,730 21,68,26,075 3,67,68,655 -
Carrying amount
Withinone year
Carryingamount
More thanfive years
One to fiveyears
ParticularsAs at 31st March, 2018
Non-derivative financial liabilities
Borrowings 9,28,22,990 7,41,16,945 1,87,06,045 -
Trade and other payables 8,78,08,971 8,78,08,971 - -
Other financial liabilities 1,29,13,683 1,29,13,683 - -
Derivative financial liabilities
19,35,45,644 17,48,39,599 1,87,06,045 -
Carrying amount
Withinone year
Carryingamount
More thanfive years
One to fiveyears
Annual Report 2017 - 2018
137
*Guarantees issued by the Company on behalf of joint venture/subsidiary are with respect to borrowings raised by the respective entity. These amounts will be payable on default by the concerned entity. As of the reporting date, none of the subsidiary/joint venture have defaulted and hence, the Company does not have any present obligation to third parties in relation to such guarantees.
C Market risk"Market risk is the risk that changes in market prices – such as foreign exchange rates, interest rates and equity prices – will affect the Company’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. "The Company operates internationally and portion of the business is transacted in several currencies. Consequently the Company is exposed to foreign exchange risk through its sales and services in overseas and purchases from overseas suppliers in various foreign currencies. Exports of the company are significantly lower in comparison to its imports.The Company holds derivative financial instruments such as foreign exchange forward contract to mitigate the risk of changes in exchange rates on foreign currency exposure. The exchange rate between rupee and foreign currency has changed substantially in recent years and may fluctuate substantially in future. Consequently, the results of the Company's operation are adversely affected as the rupee appreciates/ depreciates against these currencies.The carrying amounts of the Company’s foreign currency dominated monetary assets and monetary liabilities at the end of the reporting period are as follows:
Particulars Liabilities (Foreign currency)
In US Dollars (USD) 2,85,53,241 3,46,68,411 3,28,23,801 - 1,41,92,252 1,00,47,000
In Euro (EUR) - 12,85,931 21,34,324 - - -
As at31st March,
2018
Assets (Foreign currency)
As at31st March,
2017
As at1st April,
2016
As at31st March,
2018
As at31st March,
2017
As at1st April,
2016
Particulars Liabilities (Foreign currency)
In US Dollars (USD) 4,40,362 5,13,086 5,14,958 - 2,18,024 1,53,000
In Euro (EUR) - 18,036 28,176 - - -
As at31st March,
2018
Assets (Foreign currency)
As at31st March,
2017
As at1st April,
2016
As at31st March,
2018
As at31st March,
2017
As at1st April,
2016
Foreign currency sensitivity analysis
The Company is mainly exposed to the currency : USD, EUR
The following table details the Company’s sensitivity to a 5% increase and decrease in the Rupee against the relevant foreign currencies. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the reasonably possible change in foreign exchange rates. This is mainly attributable to the net exposure outstanding on receivables or payables in the Company at the end of the reporting period. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 5% charge in foreign currency rate. A positive number below indicates an increase in the profit or equity where the Rupee strengthens 5% against the relevant currency. For a 5% weakening of the Rupee against the relevant currency, there would be a comparable impact on the profit or equity, and the balances below would be negative.
Impact on profit or loss and total equity
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Increase in exchange rate by 5% (14,27,662) (10,23,808) (11,38,840)
Decrease in exchange rate by 5% 14,27,662 10,23,808 11,38,840
USD impact
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Increase in exchange rate by 5% - (64,297) (1,06,716)
Decrease in exchange rate by 5% - 64,297 1,06,716
Euro impact
Ecoplast Limited
138
The Company, in accordance with its risk management policies and procedures, enters into foreign currency forward contracts
to manage its exposure in foreign exchange rate variations. The counter party is generally a bank. These contracts are for a
period between one day and one year. The above sensitivity does not include the impact of foreign currency forward contracts
which largely mitigate the risk.
D Interest rate risk
There is no material interest risk relating to the Company’s financial liabilities which are detailed in note 11 and 15.1
31 Employee Benefits
[A] Defined contribution plans:
The Company makes Provident Fund and Superannuation Fund contributions to defined contribution plans for qualifying
employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the
benefits. The Company recognised Rs.33,67,842 (As at 31st March, 2017: Rs.31,72,950 ; As at 1st April, 2016:
Rs.29,37,815) for Provident Fund contributions and Rs.24,10,166 (As at 31st March, 2017: Rs. 22,57,061; As at 1st April,
2016: Rs.20,24,683) for Superannuation 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.
[B] Defined benefit plan:
The Employees' gratuity fund scheme managed by LIC of India . is a defined benefit plan. The present value of obligation for
gratuity and leave encashment is determined on the basis of Actuarial Valuation Report made at the year end.
i) On normal retirement / early retirement / withdrawal / resignation: As per the provisions of Payment of Gratuity Act, 1972 with
vesting period of 5 years of service.
ii) On death in service: As per the provisions of Payment of Gratuity Act, 1972 without any vesting period.
These plans typically expose the Company to acturial risks such as : investment risk , interest risk , longevity risk and salary
risk.
Investment risk:
The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to
market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create
plan deficit.
Interest risk:
A decrease in the bond interest rate will increase the plan liability; however, this will be partially off set by an increase in the plan
assets.
Longevity risk:
The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan
participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the
plan’s liability.
Salary risk:
The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As
such, an increase in the salary of the plan participants will increase the plan’s liability.
The following table sets out the status of the gratuity plan and the amounts recognized in the Company's financial statements
as at 31st March, 2018.
Annual Report 2017 - 2018
139
a) Changes in present value of obligations (PVO)31st March,2018 31st March,2017 1st April, 2016
Present Value of Benefit Obligation at the Beginning of the Period 1,69,96,022 1,37,84,401 1,11,03,052
Interest cost 12,35,611 11,15,158 8,82,693
Past Service Cost 5,38,615
Current service cost 17,18,678 6,61,406 4,72,661
Benefits paid from the fund (25,08,094) - (20,308)
Actuarial (Gains)/Losses on Obligations -
Due to Change in Financial Assumptions (10,04,719) 30,79,762 (1,31,859)
Actuarial (Gains)/Losses on Obligations - Due to Experience 8,18,783 (16,44,705) 14,78,162
PVO at the end of the year 1,77,94,896 1,69,96,022 1,37,84,401
Gratuity - Funded
b) Fair value of plan assets:31st March,2018 31st March,2017 1st April, 2016
Fair value of plan assets at the beginning of the year 1,55,72,629 1,32,03,293 1,06,45,001
Adjustment to opening fair value of plan assets - - -
Return on plan assets excl. interest income 74,312 26,127 58,547
Interest income 11,32,130 10,68,146 8,46,278
Contributions by the employer 16,55,931 12,75,063 16,73,775
Benefits paid from the fund (25,08,094) - (20,308)
Fair value of plan assets at the end of the year 1,59,26,908 1,55,72,629 1,32,03,293
Gratuity - Funded
c) Amount to be recognized in the balance sheet:31st March,2018 31st March,2017 1st April, 2016
PVO at the end of period 1,77,94,896 1,69,96,022 1,37,84,401
Fair value of plan assets at end of the period 1,59,26,908 1,55,72,629 1,32,03,293
Funded status (Surplus/(Deficit)) (18,67,988) (14,23,393) (5,81,108)
Net (Liability)/Asset Recognized in the Balance Sheet (18,67,988) (14,23,393) (5,81,108)
Gratuity - Funded
d) Expense recognized in the statement of profit or loss:31st March,2018 31st March,2017 1st April, 2016
Current service cost 17,18,678 6,61,406 4,72,661
Net interest Cost 1,03,481 47,012 36,415
Past Service Cost 5,38,615 - -
Expense recognized in the statement of profit or loss 23,60,774 7,08,418 5,09,076
Gratuity - Funded
e) Other comprehensive income (OCI):31st March,2018 31st March,2017 1st April, 2016
Actuarial (Gain)/Loss on Obligation for the period (10,04,719) 14,35,057 13,46,303
Return on plan assets excluding Interest Income (74,312) (26,127) (58,547)
Net (Income)/Expense For the Period Recognized in OCI (10,79,031) 14,08,930 12,87,756
Gratuity - Funded
f) Actual return on the plan assets:31st March,2018 31st March,2017 1st April, 2016
12,06,442 10,94,273 9,04,825
Gratuity - Funded
Ecoplast Limited
140
g) Category of Assets31st March,2018 31st March,2017 1st April, 2016
Insurance Fund 1,59,26,908 1,55,72,629 1,32,03,293
Gratuity - Funded
h) Assumption:31st March,2018 31st March,2017 1st April, 2016
Expected Rate on Plan Assets 7.85% 7.27% 8.09%
Rate of Discounting 7.85% 7.27% 8.09%
Rate of Salary Increase 8.00% 8.00% 8.00%
Rate of Employee Turnover 2.00% 2.00% 2.00%
Mortality Rate during employment IALM(2006-08) IALM(2006-08) IALM(2006-08)
Mortality Rate After employment N.A N.A N.A
Gratuity - Funded
Assumption:
1. Analysis of Defined Benefit Obligation
The number of members under the scheme have increased by 4.95%. Similarly the total salary increased by 7.69% during the accounting period. The resultant liability at the end of the period over the beginning of the period has decreased by 34.86%.
2. Expected rate of return basis
The scheme funds are invested with Trustee of the Company which is based on rate of return declared by fund managers.
3. Description of Plan Assets
100 % of the Plan Asset is entrusted to trustees of the Company under their Group Gratuity Scheme.
Year PVO Payouts31st March,2018
PVO Payouts31st March,2017
1st Following Year 14,00,101 45,27,895
2nd Following Year 4,76,950 5,30,122
3rd Following Year 22,96,740 5,64,533
4th Following Year 4,62,223 19,32,112
5th Following Year 4,92,934 3,22,565
Sum of years 6 to 10 58,89,247 60,83,911
Sum of years 11 and above 3,54,91,971 1,96,95,196
j) Sensitivity analysis
Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate and expected salary increase. The sensitivity analysis below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.
Particulars 31st March,2018 31st March,2017
Projected Benefit Obligation on Current Assumptions 1,68,54,056 1,69,96,022
Delta Effect of +1% Change in Rate of Discounting (15,22,245) (11,03,302)
Delta Effect of -1% Change in Rate of Discounting 17,96,415 12,79,138
Delta Effect of +1% Change in Rate of Salary Increase 14,59,688 12,57,276
Delta Effect of -1% Change in Rate of Salary Increase (13,13,941) (11,05,891)
Delta Effect of +1% Change in Rate of Employee Turnover 67,466 (67,948)
Delta Effect of -1% Change in Rate of Employee Turnover (74,879) 75,959
Annual Report 2017 - 2018
141
i) Expected Payout:
Although the analysis does not take account of the full distribution of cash flows expected under the plan, it does provide an approximation of the sensitivity of the assumptions shown.
Based on the actuarial valuation obtained in this respect, the following table sets out the status of the gratuity plan and the amounts recognised in the Company’s financial statements as at balance sheet date:
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Total employee benefit liabilities
Other current liabilities 13 - (14,23,393) (5,81,108)
Other current assets 6 (18,67,988) - -
Note
(k) General Assumptions
(i) Leave Policy:
Leave balance as at the valuation date and each subsequent year following the valuation date to the extent not availed by the employee accumulated up to 31 March 2018 is available for encashment on separation from the company upto a maximum of 90 days
(ii) The assumption of future salary increases, considered in actuarial valuations, takes account of inflation, seniority, promotion, supply and demand and other relevant factors.
(iii) Liability on account of long term absences has been actuarially valued as per Projected Unit Credit Method.
(iv) Short term compensated absences have been provided on actual basis.
32 Related Party Transactions
The disclosure of related party transactions is presented on an aggregate basis for shareholders and companies controlled by shareholders, joint ventures and associates. In addition, there may be additional disclosures of certain significant transactions (balances and turnover) with certain related parties
(I) Name of the related party and nature of relationship: -
Particulars
a) Key Managerial Personnel (KMP)
Managing Director
Mr.J.B.Desai
Remuneration Paid 75,62,796 68,00,796
Dividend Paid 1,23,650
Sale of Used Car 2,95,000
Mr. P. P. Kharas : Chairman
Sitting Fees Paid 1,40,000 1,60,000
Commission Paid on Profit 58,077 61,861
Dividend Paid 98,376
Mr. B. B. Desai : Non Executive Director
Sitting Fees Paid - -
Commission Paid on Profit - 61,861
Dividend Paid - -
Mrs. C. N. Patel : Non Executive Director
Sitting Fees Paid 80,000 1,20,000
Commission Paid on Profit 58,077 61,861
Dividend Paid 4,60,693
2017-18 2016-17Sr No
Ecoplast Limited
142
Particulars
Mr. B. M. Desai : Non Executive/Independent Director
Sitting Fees Paid 2,30,000 1,40,000
Commission Paid on Profit 58,077 61,861
Dividend Paid 120
Mr. M. B. Desai : Non Executive/Independent Director
Sitting Fees Paid 2,40,000 2,00,000
Commission Paid on Profit 58,077 61,861
Dividend Paid 11,580
Mr. D. T.. Desai : Non Executive/Independent Director
Sitting Fees Paid - -
Commission Paid on Profit - -
Dividend Paid - -
Mr. J. A. Moos : Non Executive/Independent Director
Sitting Fees Paid 2,10,000 2,00,000
Commission Paid on Profit 58,077 61,861
Dividend Paid 600 -
Others :
Mr. M. D. Desai : Chief Finance Officer
Remuneration Paid 26,31,348 24,35,376
Mr. Antony Alapat : Company Secrectory
Remuneration Paid 5,04,120 4,55,580
B) Relatives of KMP
- - -
C) Company in which KMP / Relatives of KMP can exercise significant influence
Propack Industries ( Prop.Kunal Plastics Pvt.Ltd.)
Sales of Goods 72,33,652 37,78,481
Purchase of Goods 31,74,252 66,25,597
Render Services 1,85,379 -
Receiving Services 10,79,090 11,06,894
Balance Receivable 17,659 -
Balance Payable 5,22,911 9,47,908
2017-18 2016-17Sr No
*As the liabilities for defined benefit plans are provided on actuarial basis for the Group as a whole, the amounts
pertaining to Key Management Personnel are not included.
Footnotes:
(i) All Related party transactions entered during the year were on ordinary course of business and are on arm's length basis.
(ii) Key Managerial Personnel are entitled to post-employment benefits and other long term employee benefits recognised as per
Ind AS 19 - ‘Employee Benefits’ in the financial statements. As these employee benefits are lump sum amounts provided on
the basis of actuarial valuation, the same is not included above.
Annual Report 2017 - 2018
143
33 (i) Capital Commitments
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
On account of Capital Commitments ( Net of advances) 64,53,142 - 1,38,53,610
TOTAL 64,53,142 - 1,38,53,610
Year ended
Estimated amount of contracts remaining to be executed on capital account and not provided for Rs 1,09,17,466 /- (March 2017 : ̀ NIL /- , March 2016 :` 1,77,15,110/-).
(ii) Contingent liabilities
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
The Company has given irrevocable and unconditional
Corporate Guarantee/ Collateral Securities to Bank of
Baroda-Bulsar on behalf of Synergy Films Pvt. Ltd., a
Subsidiary company in which the company is holding 100 %
of the equity shares as on 31/03/2018 as a collateral security
for Working capital. 4,06,50,497 4,05,69,598 4,08,63,282
On account of Income Tax/ Sales Tax and
Service Tax demand under contest 16,00,555 15,50,051 10,99,269
TOTAL 4,22,51,052 4,21,19,649 4,19,62,551
Year ended
34 Segment information :
The Company's sole business segment is Plastic Films and all activities are incidental to this sole business segment. Given
this fact and that the Company services its domestic and export markets from India only, the financial statements reflect the
information required by Ind AS 108 ‘Operating Segments’ for the sole business segment of Plastic Films. The whole of the
business assets are situated in India.
35 Leases
Operating lease:
The Company has acquired leasehold land from Assam Industrial Infrastructure Development Corporation under operating
lease. These rentals recognized in the Statement of Profit and Loss Account for the year is Rs.99,788 (31st March, 2017: Rs.
69,678). The future minimum lease payments and payment profile of non cancellable operating leases are as under:
Particulars As at31st March,2018
As at31st March,2017
As at1st April, 2016
Not later than one year 71,364 71,364 71,364
Later than one year but not later than five years 2,85,456 2,85,456 2,85,456
More than five years 31,40,016 32,11,380 32,82,744
Total 34,96,836 35,68,200 36,39,564
Ecoplast Limited
144
As per our Report of even date. For and on behalf of the Board of Directors
Chartered Accountants
JAYMIN B.DESAIPartner Chairman Managing Director
M. D. DESAIC.F.O.
For Y.B.Desai & Associates
Firm ICAI Registration No. 102368W
MAYANK Y. DESAI MUKUL DESAI
Membership No : 108310ANTONY ALAPATCompany Secretary
Place: Mumbai Place : MumbaiDate : 28th May,2018 Date : 28th May,2018
36 The Company has imported Plant and Machineries under Export Promotion Capital Goods Scheme (EPCG) without payment
of Custom Duty. In the event of non-fulfilment of export obligations as specified, Company may be held liable to pay custom
duty of Rs.32.21 lacs (Previous year Rs.65.65 lacs) in terms of the said Scheme. As on 31st March 2018 Company is not in any
default under the Scheme.
37 The Company prior to it being listed had issued Bonus shares on 29th June, 1994 for Rs. 10 Million (10,00,000 equity shares of
Rs. 10/- each) by capitalising part of its revaluation reserve. Accordingly, the paid up equity share capital of the company
stands increased by Rs. 10 Million and the revaluation reserve stands reduced by that amount. The issue of bonus shares as
aforesaid is contrary to the circular issued by the Department of Company Affairs issued in September, 1994 and the
recommendations of the Institute of Chartered Accountants of India issued in November, 1994. However, the Hon'ble
Supreme Court in the recent decision in the case of Bhagwati Developers Vs Peerless General Finance & Investment Co. &
others (2005) Comp LJ 377 (SC) has held that there is no specific bar under the Companies Act for issue of Bonus Shares out
of Revaluation Reserve and that the Department's Communique was advisory in nature, without any mandatory effect. The
Management is therefore of the opinion that both according to the accounting principles and provisions of Company Law, the
Company was justified in capitalizing its Revaluation Reserve.
38 Event occuring after Balance Sheet date:
The Board of Directors, at their meeting held on May 28, 2018, have proposed a dividend of Rs. 1.50 Per equity share for the
financial year ended March 31, 2018. The proposal is subject to the approval of shareholders at the ensuing Annual General
Meeting , and if approved, would result in a cash outflow of approximately Rs. 54,16,094/-, including Dividend Distribution Tax.
( Previous Year Rs.1.20 pre Equity Share resulting in to total Outgo of Rs. 43,32,874/- Including Dividend Distribution Tax)
39 Authorization of Financial Statements:
The Financial Statements were authorized for issue in accordance with a resolution of the Board of Directors in its meeting
held on 28th May, 2018.
Annual Report 2017 - 2018
145
Ecoplast Limited
146
Ecoplast Limited
Regd. Office: National Highway No. 8, Water Works Cross Road, Abrama, Valsad - 396 001
CIN: L25200GJ1981PLC004375
Tel: (02632) 226157
E-mail : [email protected] • Website : www.ecoplastindia.com
Attendance Slip
SIGNATURE OF THE ATTENDING MEMBER / PROXY
I hereby record my presence at the THIRTY SIXTH ANNUAL GENERAL MEETING of the Company at thethCountry Club, At P.O. Vashier, Valsad 396 001 on FRIDAY, 14 September 2018 at 12.00 p.m. noon.
Notes: 1. Shareholder /Proxyholder wishing to attend the meeting must bring the Attendance slip to the
meeting and hand it over at the entrance duly signed.
2. Shareholder/Proxyholder desiring to attend the meeting should bring his / her copy of the Annual
Report for reference at the meeting.
Annual Report 2017 - 2018
147
Form No. MGT-11
Proxy form
ECOPLAST LIMITED
Regd. Office: National Highway No. 8, Water Works Cross Road, Abrama, Valsad - 396 001
CIN: L25200GJ1981PLC004375
Name of the Member (s) : _______________________________________________________________
Registered address : __________________________________________________________________
E-mail Id : ___________________________________________________________________________
Folio No. / Client ID : _______________________________ DP ID No.: _________________________
I / We, being the member(s) of _________ equity shares of the above named company, hereby appoint
1. Name :
Address :
E-mail Id :
Signature : ,or failing him / her:
2. Name :
Address :
E-mail Id :
Signature : ,or failing him / her:
3. Name :
Address :
E-mail Id :
Signature : ,or failing him / her:
[Pursuant to section 105(6) of the Companies Act, 2013 and rule 19(3) of the Companies
(Management and Administration) Rules, 2014]
Tel: (02632) 226157
E-mail : [email protected] • Website : www.ecoplastindia.com
as my / our proxy to attend and vote (on a poll) for me / us and on my / our behalf at the 36th Annual General
Meeting of the Company at the Country Club, At P.O. Vashier, Valsad 396 001 on Friday, 14th September 2018
at 12.00 p.m.noon, and at any adjournment thereof, in respect of such resolutions set out in the Notice
convening the meeting, as are indicated below:
Ecoplast Limited
148
Signed this _________ day of __________, 2018
Signature of Shareholder
Signature of Proxy Holder (s)
Note :
Registered office of the Company, not less than 48 hours before the commencement of the
Meeting.
This form of proxy in order to be effective should be duly completed and deposited at the
1. Consider & adopt:
a) Audited Financial Statements, Reports of the Board of Directors and the Auditors
b) Audited Consolidated Financial Statements
2. Declare Dividend on Equity shares for the financial year ended 31st March, 2018
3. Reappointment of Ms. Charulata Patel (holding DIN 00233935) who retires by rotation.
4. Re-appointment of Mr. Jaymin Desai ( DIN 00156221) as Managing Director of the Company
for a period of three years with effect from 1st October, 2018 to 30th September 2021.
5. To approve the continual of the Directorship of Mr. Dhananjay T. Desai (holding
DIN:00049574) who has attained the age of seventy five year till his original tenure up to
September 11, 2020.
6. To approve the continual of the Directorship of Mr. Jehangir A. Moos (holding DIN:00020609)
who will attain the age of seventy five years till his original tenure up to September 19, 2019.
AffixRevenue
Stampof Rs. 1/-
Sr.No.
Resolutions