Notes to Accounts of Kuwer Industries Ltd.

Mar 31, 2024

h) Provisions and Contingent Liabilities

A provision is recognized if, as a result of a past event, the Company has a present legal or
constructive obligation that is reasonably estimable, and it is probable that an outflow of
economic benefits will be required to settle the obligation. Provisions are determined by
discounting the expected future cash flows at a pre-tax rate that reflects current market
assessments of the time value of money and the risks specific to the liability.

Contingent liabilities are not recognised but are disclosed by way of notes to the financial
statements, after careful evaluation by the management of the facts and legal aspects of
each matter involved. Contingent assets are neither recognised nor disclosed in the
financial statements.

i) Employee benefits

The undiscounted amount of short-term employee benefits expected to be paid in
exchange of services rendered by employees is recognised during the period when the
employee renders the services. These benefits include salaries, bonus and performance
incentives.

Short Term Employee Benefits:

All employee benefits payable wholly within twelve months of rendering the service are
classified as short term employee benefits and they are recognized in the period in which
the employee renders the related service. These benefits include salaries and wages,
bonus etc. The Company recognizes the undiscounted amount of short term employee
benefits expected to be paid in exchange for services rendered as a liability (accrued
expense) after deducting any amount already paid.

Post-Employment Benefits
Gratuity

The liability or asset recognised in the balance sheet in respect of defined benefit gratuity
plans is the present value of the defined benefit obligation at the end of the reporting
period less the fair value of plan assets. The Company’s liability is actuarially determined
(using the Projected Unit Credit method) at the end of each year. The present value of the
defined benefit obligation is determined by discounting the estimated future cash outflows
using interest rates of government bonds. Remeasurement gains and losses arising from
experience adjustments and changes in actuarial assumptions are charged or credited to
equity in other comprehensive income in the period in which they arise.

j) Taxation

Income tax expense represents the sum of the tax payable and deferred tax.

Current Tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs
from profit before tax as reported in the Statement of Profit and Loss because of items of
income or expense that are taxable or deductible in other years and items that are never
taxable or deductible. The Company’s current tax is calculated using tax rates that have
been enacted or substantively enacted by the end of the reporting period.

Deferred Tax

Deferred tax is recognised on temporary timing differences between the carrying amounts
of assets and liabilities in the financial statements and the corresponding tax bases used
in the computation of taxable profit. Deferred tax liabilities are generally recognised for all
taxable temporary differences. Deferred tax assets are generally recognised for all
deductible temporary differences to the extent that it is probable that taxable profits will
be available against which those deductible temporary differences can be utilised.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period
and reduced to the extent that it is no longer probable that sufficient taxable profits will
be available to allow all or part of the asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply
in the period in which the liability is settled or the asset is realized, based on the tax rates
(and tax laws) that have been enacted or substantively enacted by the end of the reporting
period.

The measurement of deferred tax liabilities and assets reflects the tax consequence that
would follow from the manner in which the Company expects, at the end of the reporting
period, to recover or settle the carrying amount of its assets and liabilities.

Deferred Tax Assets includes Minimum Alternate Tax (MAT) paid in accordance with the
tax laws in India, which is likely to give future economic benefits in the form of availability
of set off against future income tax liability. Accordingly, MAT is recognised as deferred

tax asset in the balance sheet when the asset can be measured reliably and it is probable
that the future economic benefit associated with the asset will be realized.

Current and deferred tax for the year

Current and deferred tax are recognised in the Statement of Profit and Loss, except
when they relate to items that are recognised in other comprehensive income or directly in
equity, in which case, the current and deferred tax are also recognised in other
comprehensive income or directly in equity respectively.

k) Revenue recognition

Revenue is measured at fair value of the consideration received or receivable. Amount
disclosed as revenue inclusive of excise duty and net of returns. Value of proposed
insurance claim has been reduced from the cost of material consumed accordingly income
has been recognized in this year.

l) Cash flow statement

The Cash Flow Statement is prepared by using the indirect method set out in Indian
Accounting Standard-7 on ''Cash Flow Statements'' and presents cash flows by operating,
investing and financing activities of the Company. The Company considers all highly
liquid financial instruments, which are readily convertible into cash, to be cash
equivalents.

m) Earnings per share

Basic earnings per share are calculated by dividing the net profit for the period
attributable to equity shareholders by the weighted average number of equity shares
outstanding during the period .The weighted average number of equity shares outstanding
during the period and for all periods presented is adjusted for events, such as bonus
shares, other than the conversion of potential equity shares that have changed the
number of equity shares outstanding without a corresponding change in resources. For
the purpose of calculating diluted earnings per share, the net profit for the period
attributable to equity shareholders and the weighted average number of shares
outstanding during the period is adjusted for the effects of all dilutive potential equity
shares.

As required by Ind AS 19 actuarial valuation is done using Projected Unit Credit Method.
Under this method, only benefits accrued till the date of valuation (i.e. based on service upto
date of valuation) are to be considered for valuation. Present value of Defined Benefit
Obligation is calculated by projecting salaries, exits due to death, resignation and other
decrements, if any, and project the benefit till the time of retirement of each active member
using assumed rates of salary escalation, mortality & employee turnover rates. The expected
benefit payments are then discounted back from the future date of payment to the date of
valuation using the assumed discount rate.

''Service Cost'' is calculated seperately in respect of benefit accured during the current period
using the same method as described above. However, instead of all accrued benefits, benefit
accrued over the current reporting period is considered.

During the year company has made provision of gratuity payable based on actuarial report as
per Indian Accounting Standard (Ind AS 19). In the previous years as the company has
reconsigned gratuity liability on the basis of Provision of Gratuity Act.

38. No provision for tax created during the year as there is no tax liability

39. The Company had received advance from customers prior to 31.03.2023, out of which
advances amounting to Rs.4.98 Lakhs are still payable in the books of accounts, and are
outstanding for more than 365 days. Consequently, these advances fall under the ambit of
Deemed Deposits as per the provisions of Companies act 2013. However the company has
classified it as advance from customers under current liabilities.

40. Related party disclosures

Pursuant to Indian Accounting Standard (Ind AS-24) on "Related Party Disclosures" issued by
the "Ministry of Corporate Affairs", Government of India following parties are to be treated as
related parties along with their relationships:

The management assessed that the fair values of short term financial assets and liabilities
significantly approximate their carrying amounts largely due to the short - term maturities of
these instruments. The fair value of the financial assets and liabilities is included at the
amount at which the instrument could be exchanged in a current transaction among willing
parties, other than in a forced or liquidation sale.

The Company maintains policies and procedures to value financial assets or financial
liabilities using the best and most relevant data available. In addition, the Company
internally reviews valuation, including independent price validation for certain instruments.

43. No transactions to report against the following disclosure requirements as notified by MCA
pursuant to amended Schedule III:

(a) Crypto Currency or Virtual Currency

(b) Benami Property held under Prohibition of Benami Property Transactions Act, 1988 and
rules made thereunder

(c) Registration of charges or satisfaction with Registrar of Companies

(d) Relating to borrowed funds:

i. Wilful defaulter

ii. Utilisation of borrowed funds & share premium

iii. Borrowings obtained on the basis of security of current assets

iv. Discrepancy in utilisation of borrowings

44. Corporate Social Responsibility (CSR) is not applicable on the company.

45. The company has complied with the number of layers prescribed under clause (87) of section
2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017

46. The Company did not have any material transactions with companies struck off under
Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956 during the
financial year.

47. During the year, the Company has not surrendered or disclosed any income in the tax
assessments under the Income Tax Act, 1961 (such as, search or survey or any other
relevant provisions of the Income Tax Act, 1961). Accordingly, there are no transaction which
are not recorded in the books of accounts.

48. Previous year figures have been regrouped/recast, where ever necessary, to confirm with this
year''s presentation.

49. The figures have been rounded off to nearest rupees in lakhs

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Mar 31, 2015

1. Previous year figures :

The previous year's figures have been reworked, regrouped, rearranged and reclassified wherever considered necessary to make their classification comparable with that of the current year.

2. Secured Loans:

i) Working Capital loan from State Bank of Bikaner and Jaipur is secured against all current & fixed assets.

ii) The Vehicle loans are secured by way of hypothecation of vehicles.

3. Provision of Income Tax:

Provision of Rs.12,18,599/- on account of Income Tax has been made for the year.

4. In the opinion of the Board the Current Assets, loans & Advances have a value on realization in the ordinary course of business at least equal to the amount at which they have been stated in the balance sheet.

5. Balances in accounts whether in debtors, creditors, and loans & advances are subject to verification and confirmations.

6. Contingent Liabilities:

(a) The company bankers has issued bank guarantee of Rs. 5.88 lacs for EPCG license margin held by the bank Rs 5.88 lacs

(b) Demand raised by Excise department and disputed by the company: Details are as under:

Demand of Rs. 114 lacs for the year 2007-08 and Rs. 111 lacs for the year 2011-12 has been raised by the excise department and the same is pending as on the year end. However the amount of Rs.40 lacs has been deposited by the company to Excise department for getting stay and also furnished security of company's machinery worth Rs 111 lacs.

(c) Demand raised by Income Tax Authorities and disputed by the company:

Details are as under:

Demand of Rs. 43, 71,630 has been raised by the Income Tax Authorities for the AY 2011-12 and the same is pending as on the year end. However the company has filled the appeal with The Commissioner of Income Tax (Appeals) and is pending as on the date of balance sheet.

7. Provision for Gratuity :

Provisions of Rs. 67,352/- has been made on account of Gratuity for the year.

8. Depreciation on Fixed Assets is provided in accordance with the rates as specified in Part C of Schedule II of the companies Act, 2013, on straight line method (SLM) on pro rata basis and on the basis of technical advice regarding useful life of Assets

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Mar 31, 2014

1) Previous year figures :

The previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever considered necessary to make their classification comparable with that of the current year.

2) Regarding share application money of Rs. 8, 75, 84,000 pending for allotment as at March 31, 2014:-

The Company has received ''In principal'' approval (vide: letter DCS/PREF/NJ/PRE/098/2014-15, dated May 14, 2014) from Bombay Stock Exchange under clause 24(a) of the listing agreement. Pursuant to this said ''In principal'' approval the company has allotted 39, 81,072 numbers of equity shares (of face value Rs. 10) at the premium of Rs. 12 per share on May 26, 2014.

2) Secured Loans:

i) Working Capital loan State Bank of Bikaner and Jaipur is secured against all current & fixed assets.

ii) The Vehicle loans are secured by way of hypothecation of vehicles.

3) Provision of Income Tax:

Provision of Rs.13, 53,635/- on account of Income Tax has been made for the year.

4) In the opinion of the Board the Current Assets, loans & Advances have a value on realization in the ordinary course of business at least equal to the amount at which they have been stated in the balance sheet.

5) Balances in accounts whether in debtors, creditors, and loans & advances are subject to verification and confirmations.

6) Contingent Liabilities:

(a) Letter of credit of Rs.14.86 lacs given by the company s banker and counter guaranteed by the company by way of margin money of Rs. 2.22 lacs.

(b) The company bankers has issued bank guarantee of Rs. 5.88 lacs for EPCG license margin held by the bank Rs 5.88 lacs

(c) Demand raised by sales tax department and disputed by the company:

Details are as under:

Demand of Rs. 25.91 lacs (net of deposits) has been raised by sales tax authorities and the same is pending as on the year end. However the company has filled appeal with the sales tax department and is pending as on the date of balance sheet.

(d) Demand raised by Excise department and disputed by the company:

Details are as under:

Demand of Rs. 114 lacs for the year 2007-08 and Rs. 111 lacs for the year 2011-12 has been raised by the excise department and the same is pending as on the year end. However the amount of Rs.40 lacs has been deposited by the company to Excise department for getting stay and also furnished security of company''s machinery worth Rs 111 lacs.

(e) Demand raised by Income Tax Authorities and disputed by the company:

Details are as under:

Demand of Rs. 43, 71,630 has been raised by the Income Tax Authorities for the AY 2011-12 and the same is pending as on the year end. However the company has filled the appeal with The Commissioner of Income Tax (Appeals) and is pending as on the date of balance sheet.

7) Provision for Gratuity:

Provisions of Rs. 67,135 /- has been made on account of Gratuity for the year.

8) Additional Information pursuant to the provisions of Paragraph 3,4C and 4D of Part -II of Schedule VI of the Companies Act, 1956.

A. Information in respect of capacity and class goods

Class of goods : Metallized Polyester & BOPP Films

Metallized Embossed Polyester & BOPP

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Mar 31, 2013

1 Corporate information

Kuwer Industries Ltd.is engaged in Metallizing & Embosing of Polyster and BOPP films. The company has been incorporated in the year 1993. The company''s registered office is in Delhi.

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Mar 31, 2012

1. Corporate information

Kuwer Industries Ltd.is engaged in Metallizing & Embosing of Polyster and BOPP films. The company has been incorporated in the year 1993. The company's registered office is in Delhi.

2) Previous year figures :

The previous year's figures have been reworked, regrouped, rearranged and reclassified wherever considered necessary to make their classification comparable with that of the current year.

3) Secured Loans:

i) Working capital & Term Loan from state bank of Bikaner and Jaipur is secured against all current & fixed assets.

ii) The vehicle loans are secured by way of hypothecation of vehicles.

4) Provision of Income Tax:

Provision of Rs. 11,19,152/- on account of Income Tax has been made for the year.

5) In the opinion of the Board the Current Assets, loans & Advances have a value on realization in the ordinary course of business at least equal to the amount at which they have been stated in the balance sheet.

6) Balances in accounts whether in debtors, creditors, and loans & advances are subject to verification and confirmations.

7) Contingent Liabilities:

(a) Letter of credit of Rs. 248.93 lacs given by the company's banker and counter guaranteed by the company by way of margin money of Rs. 37 lacs against letter of credit.

(b) The company bankers has issued bank guarantee of Rs. 5.88 lacs for EPCG licence margin held by the bank Rs. 5.88 lacs

(c) The company bankers has issued bank guarantee of Rs. 82500 for Sales tax and margin held by the bank Rs. 82,500.

(d) Demand raised by sales tax department and disputed by the company. Details are as under

S.no Financial year Amount demanded Deposit under (Rs. in lacs) protest (Rs. in lacs)

(a) 2006-07 8.84 4.42

(b) 2008-09 22.72 1.23

(c) 2010-11 11.53 11.53

However the company has filled appeal with the sales tax department and are pending as on the date of balance sheet.

(e) Demand raised by Excise department and disputed by the company. Details are as under:

SS.no Financial year Amount demanded Deposit under (Rs. in lacs) protest (Rs. in lacs)

(a) 2007-08 114 19.09

(b) 2011-12 111 5.00

Rs. 5 lacs deposited for stay and also furnished security of companies machinery worth Rs. 111 lacs. 35) Provision for Gratuity :

Provisions of Rs. 3,71,382/- has been made on account of Gratuity for the year.

8) Additional Information pursuant to the provisions of Paragraph 3, 4C and 4D of Part -II of Schedule VI of the Companies Act, 1956.

A. Information in respect of capacity and class goods

Class of goods : Metallized Polyster & BOPP Films Metallized Embossed Polyster & BOPP

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Mar 31, 2010

1. CONTINGENT LIABILITIES

(a) Letter of credit of Rs. 253.83 lacs given by the Company's bankers and counter guaranteed by the company by way of margin money of Rs. 39.33 lacs against letter of credit.

(b) Sales Tax

There is a demand of Rs. 4.42 lacs for the financial year 2006-07. The company has filed appeal to the department. However, the company has deposited Rs. 4.42 lacs under protest with the sales tax department and same has been shown under the head current asset in the balance sheet.

(c) Income tax

There is a demand of Rs.85.28 lacs against which Rs. 10 lacs has been deposited under protest with the department. The company has filed an appeal before the CIT (Appeals).

2. During the financial year 07-08 there was as excise checking conducted by the excise department on 16/10/07 at the factory premises of the company at A 71-72 sector-58, noida and at B-154,sector-6 noida. However the case is pending before the excise department till the signing of the balance sheet.

3. The provision for taxation has been made as per the provision of Income Tax Act 1961.

4. In the opinion of the board and to the best of their knowledge, the current assets, loan and advances shown in the Balance Sheet have a value on realization in the ordinary course of business at least equal to the amount stated therein. The provisions for all the known liabilities has been made are adequate

5. In accordance with the requirement of the Accounting Standards – 22 dealing with the taxes on Income issued by the institute of Chartered Accountants of India, the deferred tax liability increase for the current year Rs. 2,54,414/- (consisting mainly depreciation) has been adjusted.

6. Sundry Debtors and Creditors balance are subject to confirmation.

7 The previous year figures, have been re-grouped or re-arranged wherever consider necessary .

8 Related party disclosures in terms of Accounting Standard 18 issued by The Institute of Chartered Accountants of India:

Name of Related Party : Ellora Mechanicals Products Pvt. Ltd.

Description of relationship : Under the control of same management

Nature of transaction : Volume of transaction

(In Rs.) (a) Payment of Factory Rent : 780000

9. Additional Information pursuant to the provisions of the paragraph 3,4C & 4D of part –II of schedule VI of the Companies Act 1956.

A. Information in respect of capacity and class of goods manufactured.

(i) Class of goods - Metalized Polyester & BOPP Films

Metalized Embossed Polyester and BOPP

(ii) Licensed and - 2400 MT on 3 Shift basis Installed capacity

- Certified by the Management but not certified by the Auditors being a technical matter .

D. Information in respect of consumption of imported and indigenous material and percentage thereof.

Note :- Signatories are Schedule 1 to 18.

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Mar 31, 2009

1. CONTINGENT LIABILITIES

Letter of credit of Rs. 1,43,30,694/- given by the Company's bankers and counter guaranteed by the company by way of margin money of Rs. 26,10,640/- against letter of credit.

Sales Tax

There is a Central Sales Tax demand of Rs. 342000/- for the Assessment Year 2002-03 against which the company filed a writ petition in the Hon'able high court Allahabad. However the said demand is stayed by the Hon'able High Court Allahabad.

Further there is a demand of Rs. 268078/- for the financial year 2006-07 against which company has filed an appeal. Appeal is pending for decision.

2. During the previous year there was as excise checking conducted by the excise department on 16/10/07 at the factory premises of the company at A 71-72 sector-58, noida and at B-154,sector-6 noida. During the course of checking some discrepancies in stocks were noticed by the excise department and an excise demand of Rs.499033.68/- was raised. This demand was deposited by the company and the same has been debited to profit & loss account during the previous year. However the case is pending before the excise department till the signing of the balance sheet.

3. The provision for taxation has been made as per the provision of Income Tax Act 1961.

4. In the opinion of the board and to the best of their knowledge, the current assets, loan and advances shown in the Balance Sheet have a value on realization in the ordinary course of business at least equal to the amount stated therein. The provisions for all the known liabilities has been made are adequate

5. In accordance with the requirement of the Accounting Standards – 22 dealing with the taxes on Income issued by the institute of Chartered Accountants of India, the deferred tax liability increase for the current year Rs. 6,62,315/- (consisting mainly depreciation) has been adjusted.

6. Sundry Debtors and Creditors balance are subject to confirmation.

7 The previous year figures, have been re-grouped or re-arranged wherever consider necessary .

8 Related party disclosures in terms of Accounting Standard 18 issued by The Isntitute of Chartered Accountants of India:

Name of Related Party : Ellora Mechanicals Products Pvt. Ltd.

Description of relationship : Under the control of same management

Nature of transaction : Volume of transaction

(In Rs.) (a) Payment of Factory Rent : 780000

Earning per Share in terms of Accounting Standard 20 issued by The Institute of Chartered Accountant of India :

9. Additional Information pursuant to the provisions of the paragraph 3,4C & 4D of part –II of schedule VI of the Companies Act 1956.

A. Information in respect of capacity and class of goods manufactured.

(i) Class of goods - Metalized Polyester & BOPP Films Metalized Embossed Polyester and BOPP

(ii) Licensed and - 2400 MT on 3 Shift basis Installed capacity

- Certified by the Management but not certified by the Auditors being a technical matter .

B. Information in respect of consumption of imported and indigenous material and percentage thereof.

C. Other particulars

Note :- Signatories are Schedule 1 to 18.

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Mar 31, 2008

1 CONTINGENT LIABILITIES

(a) Letter of the credit of Rs. 1,59,67,317/- given by the Company's bankers and counter guaranteed by the company by way of margin money of Rs. 23,92,738/- against letter of credit.

b) Sales Tax : .

There was a central sales tax demand of Rs. 3,42,000 for the Assessment year 2002-03 against which company filed a writ petition in High Court, 100% of demand is stayed by the Hon'ble High Court, Allahabad.

There is a demand of Rs. 2,68,078. for the financial year 2006-07 against which company filed an appeal before the Joint Commissioner Appeal, Trade Tax, Noida

2 During the year there was an excise checking conducted by the excise department on 16/10/2007 at the factory premises of the company at A 71-72 sector-58, Noida and at B-154 , sector-6 Noida . During the course of checking, some discrepancies in stocks were noticed by the excise department and an excise demand of Rs 499033.68/- was raised. This demand was deposited by the company and the same has been debited to profit & loss account during the year. However the case is pending before the excise department till the signing of the balance sheet.

Further during the course of checking books of accounts and CPU , stock records, sale invoices and purchase invoices upto 16/10/2007 were seized by the excise department and the photocopies of the same were obtained and the audit has been conducted on the basis of photocopies of the said record produced by the company.

3. The provision for taxation has been made as per the provision of Income Tax Act 1961.

4. In the opinion of the board and to the best of their knowledge, the current assets, loan and advances shown in the Balance Sheet have a value on realization in the ordinary course of business at least equal to the amount stated therein. The provisions for all the known liabilities has been made are adequate

5. In accordance with the requirement of the Accounting Standards - 22 dealing with the taxes on Income issued by the Institute of Chartered Accountants of India, the deferred tax assets reversal for the current year Rs. 10,42,207/- (consisting mainly depreciation) has been adjusted.

6. Sundry Debtors and Creditors balance are subject to confirmation.

7. The previous year figures, have been re-grouped or re-arranged wherever consider necessary .

8. Related party disclosures in terms of Accounting Standard 18 issued by The Institute of Chartered Accountants of India:

Name of Related Party Ellora Mechanicals Products Pvt. Ltd.

Description of relationship Under the control of same management

Nature of transaction Volume of transaction

(In Rs.)

(a) Payment of Factory Rent : 8,40,000.00

Earning per Share in terms of Accounting Standard 20 issued by The Institute of Chartered Accountant of India :

9. Additional Information pursuant to the provisions of the paragraph 3,4C & 4D of part –II of schedule VI of the Companies Act 1956.

A. Information in respect of capacity and class of goods manufactured.

(i) Class of goods - Metallized Polyester & BOPP Films

Metallized Embossed Polyester and BOPP

(ii) Licensed and - 2400 MT on 3 Shift basis Installed capacity

1) Certified by the Management but not certified by the Auditors being a technical matter .

D. Information in respect of consumption of imported and indigenous material and percentage thereof.

Note :- Signatories are Schedule 1 to 20.