Kriti Industries 2019 PDF

BROADBASING
THE BUSINESS
Enhancing capacity. Broadening portfolio. Widening footprint.
Kriti Industries (India) Limited

29th Annual Report 2018-19
In this Annual Report, we have disclosed forward-looking
information to enable investors to comprehend our prospects
and take informed investment decisions. This report and other
statements – written and oral – that we periodically, ‘projects’,
‘intends’, ‘plans’, ‘believes’ and words of similar substance in
connection with any discussion of future performance. We
cannot guarantee that these forward-looking statements
will be realised, although we make, certain forward-looking
statements that set out anticipated results based on the
management’s plan and assumptions. We have tried wherever
possible to identify such statements by using words such as
‘anticipates’, ‘estimates’, ‘expects’ believe we have been prudent
in our assumptions. The achievement of results is subject to
risks, uncertainties and even inaccurate assumptions. Should
known or unknown risks or uncertainties materialise, or should
underlying assumptions prove inaccurate, actual results could
vary materially from those anticipated, estimated or projected.
Readers should bear this in mind. We undertake no obligation
to publicly update any forward-looking statements, whether as
a result of new information, future events or otherwise.
Contents
02 04
The exciting How the
world of Kriti Company
Industries (India) has grown its
Limited performance
08 12
Chairman and Governance
Managing and Kriti
Director’s Industries
strategic
overview
14 16
How we have Our business
transformed our model
business over
the years
20 25
Management Statutory
discussion and section
analysis
66
Financial
section
Broadbasing
the business
At Kriti Industries (India) Limited,
we are at an exciting inflection point.
During 2018-19, the Company engaged in three
decisive initiatives - enhanced its manufacturing
capacity, broadened its product portfolio and
widened its geographic footprint – to accelerate
its multi-year growth journey.
Just when India seeks to make its biggest ever
investment in water security, Kriti Industries
is broadbasing its business, seeding new
revenue streams and spreading risks wider with
the singular objective to enhance business
sustainability.
Strengthening the conviction that we are in the
right business in the right place at the right time.
The
exciting
world
of Kriti
Industries
(India)
Limited
Vision Mission Promoters

An energetic organisation on a Kriti undertakes to dedicate itself and The Company was promoted by Mr.
long haul, charting a distinct course all its resources to achieving global Shiv Singh Mehta in 1982, who is the
for customer admiration, led by a excellence in the present sectors of Chairman and Managing Director. He is
disciplined team of vibrant people. operations and seeking growth via assisted by senior executives and more
diversification. than 560 employees.
The Group governance Businesses Presence

The Kriti Group comprises three The Company is engaged in the The Company’s headquarters are
Companies of Kriti Industries (India) manufacture of polymer pipes, primarily based in Indore and manufacturing
Limited, Kriti Nutrients Limited and Kriti Poly Vinyl Chloride (PVC) and Poly facility in Pithampur. The Company’s
Auto Engineering & Plastics Pvt. Limited. Ethylene (PE), suitable for potable water sales footprint extends largely across
The Group companies are respected supply, irrigation, building construction Madhya Pradesh and Rajasthan.
for a high standard of governance, and infrastructure. The Company The Company enhanced its focus in
reflected in a defined corporate strategy, widened its product range to address additional states during the year under
strong Board of Directors, respected for a majority of sizes (small to large review, broadbasing its presence and
processes and proactive investment in diameter across classes and ratings). addressing a larger addressable market.
information technology, among other The Company also possesses the
initiatives. capability to manufacture a variety of
complementary PVC/HDPE fittings.
02 | Kriti Industries (India) Limited

Financial performance Listing Brand
The Company registered growth in The Company is listed on the Bombay The Company’s proprietary brand
revenues to H571.14 crore in 2018-19. Stock Exchange and National Stock Kasta commands a significant market
However, the charging of business Exchange. The Company’s market share in the States of its presence. The
development expenses to the Profit capitalisation was H104.50 crore as brand entered new States in 2018-19
& Loss Account resulted in a decline on 31st March 2019. The promoters and carved out attractive recall and
in Profit after Tax to H6.61 crore. The accounted for 65.80% stake of the visibility. The brand is respected for its
Company reported a cash profit of Company’s equity capital. consistency, product integrity, durability
H12.58 crore and EBITDA margin of and service.
5.46% during the year under review.
Corporate social responsibility Awards

The Company is a respected corporate citizen engaged The Company received the Arya Chaanakya Award from
in addressing grass-root realities in the health and the MP government for corporate governance and social
environment disciplines of the areas of its manufacturing responsibility.
and corporate presence.
Annual Report 2018-19 | 03

How the Company has
grown its performance
571.14 Definition compared with sectoral Value impact

464.25 Growth in sales, net of taxes. peers. Improved product offtake
447.25
enhanced the Company’s
363.03 Why this is measured What this means ability to cover fixed costs.
It is an index that showcases Aggregate revenues
the Company’s ability to increased 27.70% to a record
maximise revenues, which H571.14 crore in FY2018-
provides a basis against 19 due to increased brand
which the Company’s traction.
FY16 FY17 FY18 FY19 performance can be
Revenues (H crore)
39.21 Definition surplus after operating Value impact

32.24 Earnings before the costs, creating a basis for The Company reported a
30.01 31.20
deduction of fixed expenses comparison with sectoral 3.23% decline in EBITDA
(interest, depreciation, peers. in FY2018-19 on account
extraordinary items and tax). of business development
What this means expenses charged to the
Why this is measured Helps create a robust Profit & Loss account whose
It is a measure that surplus-generating engine benefits will gradually
showcases the Company’s that facilitates reinvestment. accrue.
FY16 FY17 FY18 FY19 ability to generate a
EBITDA (H crore)
11.69 Definition What this means Value impact

Profit earned during the year This indicates the quantum Modest realisations
8.87 9.22
after deducting all expenses, of cash available for and upfront business
6.61 taxes and provisions. reinvestment. development expenses
moderated profits.
Why this is measured
It highlights the strength
of the business model in
enhancing shareholder
FY16 FY17 FY18 FY19 value.
Net profit (H crore)
8.45 8.20 Definition accounting for interest and Value impact

7.21 EBITDA margin is a taxes) on each rupee of sale. The Company reported a
profitability measure to 175 bps decline in EBITDA
5.46
ascertain a Company’s What this means margin in FY2018-19 on
operating efficiency. This measure demonstrates account of various business
the buffer in the business, development costs being
Why this is measured which, when multiplied by written off.
The EBITDA margin provides scale, can enhance business
an index of how much a surplus.
FY16 FY17 FY18 FY19 Company earns (before
EBITDA margin (%)

39.00 Definition across companies based on Value impact
This financial ratio measures their capital efficiency. The Company reported a
26.74 the efficiency with which 582 bps decrease in RoCE in
25.19
capital is employed in the What this means FY2018-19 due to business
19.37 business. Enhanced RoCE can development costs being
potentially drive valuations written off from the P&L
Why this is measured and perception. account.
RoCE is an insightful metric
to compare profitability
FY16 FY17 FY18 FY19
RoCE (%)
0.33 0.35 Definition What this means Value impact

This is the ratio of debt to This indicates whether The Company’s gearing
net worth (less Revaluation the Company enhances stood at 0.35 in FY2018-19
0.22 Reserves). shareholder value by compared to 0.17 in FY2017-
0.17 keeping the equity side 18. This ratio should ideally
Why this is measured constant and progressively be read in conjunction with
This is one of the defining moderating debt. net debt/operating profit.
measures of a Company’s
solvency and liquidity.
FY16 FY17 FY18 FY19
Gearing (x)
3.03 2.93 3.04 Definition What it means in FY2017-18 to 2.52x in

2.52 This is derived through the A Company’s ability to meet FY2018-19 following the
division of EBITDA by interest its interest obligations is expensing of business
outflow. one of the most important development costs from the
measures leading to P&L Account.
Why this is measured shareholder returns.
Interest cover indicates the
solvency available to service Value impact
interest – the higher the The Company’s interest
FY16 FY17 FY18 FY19 better. cover weakened from 3.04x
Interest cover (x)

“Kasta ki
khardeeaari me
samajhdaari hai”
MOHANLAL PATWA IS A FARMER IN THE DEWAS REGION OF
MADHYA PRADESH.
He has been engaged in has continued to be Kasta
the business of growing consistently for more than Mohanlal ji sums Kasta up:
soyabean for four decades. three decades.
The world has The decision has been
‘Ek baar
transformed in this period: based on a validated ka lagaiyye.
new seed varieties, drip
irrigation, advanced
experience. The Kasta pipe
that he laid five feet below Zindagi-
agricultural practices and
higher farmer yields.
the ground three decades
ago continues to be in
bhar aaram
The one thing that has not
use. No repair. No change. paiyye!’
No additional joint sealing.
changed is his selection of
No significant decline in
the PVC pipes that he uses
water throughput.
across his farm. The brand

Chairman and Managing Director’s strategic overview
At Kriti Industries,
we believe that by
investing decisively
in our future, the
Company has
entered a new
phase in its growth
journey.
Overview with the Company’s objective to keep The other sectoral game-changer has
growing across market cycles. I am happy been the introduction of the Goods &
I am pleased to present the performance
to communicate that by continuing Services Tax in 2017. For a number of
of Kriti Industries (India) Limited for 2018-
to make selective investments, we are years, organised players in the country’s
19.
in a stronger position to sustain our polymer processing sector operated at
Even as the year under review proved momentum, which should reflect in a disadvantage related to tax treatment.
challenging on account of a slowdown improved performance from 2019-20 Most unorganised players in the sector
from the second half of 2018-19, the onwards. operated outside the tax system while
Company reported growth that was organised players incurred a higher
considerably higher than the percentage Sectoral landscape compliance cost.
growth of the PVC pipes sector in At Kriti Industries, we believe that a Following the introduction of the GST,
India and growth of the overall Indian company’s performance is largely the tax disadvantage that organised
economy. influenced by the sectoral landscape. players had long suffered from declined,
The Company’s principal business- I am pleased to communicate that enhancing their competitiveness. This
strengthening initiative was its extension our sectoral context has become transition is reflected in the growth
into new markets. This represented the progressively stronger in the last few of the organised polymer processing
most decisive such initiative in years years. sector, which grew 16%, following GST
and provides the Company with a wider introduction.
platform to build sustainable growth. There is a greater recognition that a
change in global climatic patterns has This sectoral inflection point provides
The business development costs enhanced monsoonal erraticity. The long-term players with an incentive
incurred by the Company were charged Indian monsoon has been affected by to invest wider and deeper in their
to the Profit & Loss Account in 2018-19, a variation in the rainfall quantum and businesses, strengthening their
moderating margins and profitability but timing across regions. This phenomenon sustainability.
whose benefits will become progressively has increased the premium on water
visible. transfer from regions of high precipitation Broadbasing the business
The result is that the Company reported and high water storage to deficient At Kriti Industries, we addressed
a 27.70% growth in revenues and a regions. this sectoral inflection point with a
28.29% decline in Profit after Tax during corresponding speed and seriousness.
This recognition has translated into
the year under review. What made the a decisive priority related to water Our seriousness comprised a strategic
performance creditable is that despite resource management. These policies ‘broadbasing’ that will achieve two things
the prevailing economic challenges, the have been directed at adequate water – seed the business with new initiatives
Company selected to make significant storage, timely water transmission and that provide additional revenue engines
investments in strengthening its business responsible water use, each of which and widen the Company’s risk profile
for the foreseeable future. warrants a large use of polymer extruded across a larger number of variables.
This proactive investment was in line products. This broadbasing is aligned with our

Broadbasing our business
Larger capacity Wider portfolio Increased markets Additional sectors

The Company enhanced The Company widened The Company expanded The Company intends
its manufacturing its value-added portfolio its presence from a to widen its sectoral
capacity to generate to enhance realisations handful of States to presence from water
attractive revenue per extruded tonne multiple contagious transportation to telecom
growth starting States and gas
2019-20
governance commitment directed at Pradesh, Rajasthan, UP and Haryana of fluid transportation. The Company
enhancing business sustainability and to multiple contiguous states. This intends to manufacture extruded
stakeholder value. represented a significant development, products for application in the large
coming as it did after 35 years of focus natural and rapidly growing gas and
During the year under review, we
principally on two Indian states. The telecom sectors.
broadbased our Company through
organisation has matured to a point –
a three-pronged initiative: timely India is likely to invest H1.1 trillion
scale, brand, bandwidth, distribution
investments in infrastructure, product [Source : PM Ujjwala Yojana] to build a
and Balance Sheet – where a wider
portfolio and geographic presence. pan-country gas distribution network;
geographic footprint will accelerate
The integrated complement of these the Company will manufacture pipes
profitability and competitiveness.
initiatives will make it possible for us to of a larger diameter for this application.
This extension will also transform the
process a larger quantity, manufacture a Besides, India’s digitalisation focus
Company from a regional brand into a
wider product range and market across is expected to create US$435 billion
multi-zonal organisation and a pan-India
a larger footprint. We believe that these opportunity for optic fibres by 2025,
presence in the foreseeable future.
initiatives will accelerate our growth, which the Company intends to address
strengthen revenue quality and enhance with a customised product range.
Prudent funding
our brand.
The Company made a sizable investment The Company’s water transmission
Manufacturing capacity: During the year in fixed assets and intangibles, products provide the foundation on
under review, the Company broadbased broadbasing its business during the which to broadbase synergically into
its manufacturing capacity through a year under review. The Company different sectors, strengthening business
brownfield expansion. The Company strengthened its distribution network sustainability.
targets to augment its infrastructure to in newly-entered markets, creating a
process polymers in excess of 100,000 TPA platform for long-term growth. Stakeholder value
at its Pithampur manufacturing facility. At Kriti Industries, we believe that by
Since the business development
Product portfolio: The Company’s investing decisively in our future, the
expenses in this regard were expensed
portfolio broadbasing comprised the Company has entered a new phase in its
from the Profit & Loss Account of 2018-19,
addition of synergic and value-added growth journey. The Company resisted
the performance for the year represented
products. This addition has strengthened the temptation to maximise profits for
a conservative view of the Company’s
our brand recall as a one-stop solution the short-term but reinforced long-term
business health.
provider offering a range of products, prospects, which should translate into
enhanced value for all those associated
increasing our ability to address a larger Reinventing our personality
share of the customer’s wallet. with the Company.
At Kriti Industries, we believe the time
Geographic footprint: The Company’s has come to broadbase our personality
geographic broadbasing extended from beyond water transportation applications Shiv Singh Mehta
a longstanding presence in Madhya towards the more holistic platform Chairman & Managing Director

The management’s
operational review
Q: Was the management experienced virtually no product returns Q: What is the outlook for
pleased with the and provided the opportunity to add the Company in 2019-20?
performance of the other dealerships to their profile. The
A: The Company’s prospects are
result is that the Kriti associated has
Company during the year optimistic. The Company will invest in
proved beneficial for their respect, status
under review? and business.
expanding its footprint. The distribution-
A: The management was pleased with the related expenses could moderate
performance of the Company in 2018-19: We embarked on the creation of a following the initial spending. The benefit
the revenue growth of 27.70% was in similar network in the new States of our of payback could commence from the
line with the business plan. What makes presence through a prudent selection current year. As the distribution network
the Company’s performance creditable of distribution partners based on their stabilises in new pockets, we intend to
is that it invested decisively in growing integrity, financial depth and long-term extend into more contiguous districts.
its business (increased manufacturing commitment to the business.
capacity, products portfolio and Q: How will these initiatives
geographic presence). But for these Q: How did the Company translate into financial
business-development investments, perform in these new growth?
the Company’s profits would have been markets in 2018-19?
A: The Company expects to generate
higher. A: At Kriti Industries, we believe that the attractive sector-outperforming revenue
new States of our presence represent the growth through manufacturing capacity
Q: What was the highlight of springboard of our future. These markets expansion completed in 2018-19. Margins
the Company’s performance account for a sizable share of the Indian could trend higher as one-time market-
in 2018-19? extruded polymer products market. building expenses taper. In view of this,
A: The highlight of our performance Some of these States have been affected the Company’s volume-value proposition
was Project Udaan (Project Flight). The by drought and erratic monsoons, should enhance stakeholder value across
name of the project encapsulated the making water storage and transmission the foreseeable future.
Company’s direction and intent: we imperative for agricultural survival. The
believe that the time has come for the Company engaged in confidence-
Company to graduate from one level building mechanisms among prospective
to another. The project comprised our dealers and achieved its target a quarter
extension into multiple States with a ahead of schedule.
corresponding distribution network and
upfront expenses. The Company reported Q: What other business-
a reasonable traction in these States, strengthening initiatives
providing the optimism that growth from were undertaken by the
these markets will become increasing Company in 2018-19?
visible across the foreseeable future.
A: The Company leveraged its rich
experience in product design and
Q: How did the Company
manufacture to graduate to larger-
select to build this diameter pipes. The Company possesses
distribution network? capabilities to manufacture pipes up
A: Firstly, let me explain the importance to 710 mm diameter, addressing larger
of a distribution network beyond merely water throughput requirements and
being a conduit for product sale. In our larger government outlays. In a synergic
existing market of Madhya Pradesh and extension, the Company also developed
Rajasthan, our primary customers (trade larger diameter pipes addressing the gas
partners) are Kasta’s biggest ambassadors: sector.
they have worked with us for years,

Kasta’s brand attributes
‘Expert ka ‘Peace
‘Bharosa’ ‘Superior’ ‘Best’
vishwaas’ of mind’
MODERN INDIA: FASTEST GROWING GLOBAL ECONOMY
Agriculture a Telecom on the verge City gas distribution

growth area of rapid growth a positive catalyst
Kriti Industries: Attractive proxy of India’s agriculture sector (through PVC

pipes) and now widening presence from agriculture to telecom and oil & gas
Growing Modern Widening Large Trusted

capacity assets footprint products brand
portfolio
Loyal
Cost Conservative High referral
distribution
leadership Balance Sheet value
partners
Revenue growth faster than India’s

PVC pipes sector growth average
KRITI: EMERGING FLUID TRANSPORTATION SOLUTIONS PROVIDER

Governance
and Kriti
Industries
AT KRITI INDUSTRIES, WE BELIEVE THAT
THE ROLE OF GOVERNANCE IS INTEGRAL
ESPECIALLY AS WE ARE ENGAGED IN THE
MANUFACTURE OF A PRODUCT SOLD ON
THE BASIS OF TRUST, WHERE EFFICACY
IS TESTED ACROSS THE LONG-TERM
AND WHERE THE COST OF PRODUCT
REPLACEMENT CAN BE HIGH IN THE CASE
OF QUALITY UNDER-DELIVERY. AT KRITI, THIS
GOVERNANCE FRAMEWORK COMPRISES A
NUMBER OF PRIORITIES, SOME WHICH HAVE
BEEN EXPLAINED IN THIS SECTION.
At Kriti, we invest in every initiative keeping the long-term in mind, the basis of our approach towards
governance. This has been influenced by our investments in brands, people, technology, locations,
Think products and selection of trade partners. Inevitably, these investments have translated into the highest
long-term standards of technology, integrity and competencies, which represent the basis of our business
sustainability.
At Kriti, we are principally a fluid transmission products company that manufactures PVC/HDPE
Singular pipe and fittings. This insight into extrusion is now being leveraged to manufacture pipes of larger
focus diameters and diverse downstream applications (telecom / gas). This singular focus has deepened
excellence, attracted specialists, enriched knowledge, strengthened research and enhanced scale.
At Kriti, we believe in growth consistency, marked by incremental investments derived from our
accruals that do not stretch our Balance Sheet or our management bandwidth. This makes it possible
Steady to report consistently controlled and relatively de-risked growth as opposed to one-off spikes.
growth The result is that this business model generates steady growth year-on-year, enhancing business
predictability.
At Kriti, we believe in doing things the right way in addition to doing the right things. The focus
on the former is the result of an integrity-first approach that enhances strategic predictability and
Doing things consistency for all stakeholders. The result is that we have attracted like-minded partners resulting in
the right way long-term engagement. This focus on the intensive (as opposed to the extensive) has catalysed our
mindset.

At Kriti, our business sustainability is to a large extent influenced by the composition of our Board
Board of of Directors. The Board comprises professionals and industrialists of standing who have enriched our
Directors values, experience pool, ground-level business understanding and strategic direction.
At Kriti, we believe we are in business to enhance a sense of trust – with our customers through
superior products, with employees through the assurance of stable career growth, with vendors
Trust through an emphasis on the use of the highest product quality standards and with communities
through the use of responsible practices and supportive engagement.
At Kriti, we employ a business approach that can be described as a balance of conservatism and
measured aggression. The result is a de-risked approach, focus on short-term payback, priority to
maximise cash flows, ongoing reinvestment and adequate buffers that protect our profitability across
Balanced market cycles. This is best reflected in an attractively low gearing and the ability to fund a sizable part
approach of expansions through accruals. We believe that large debt on our books could influence our strategic
thinking away from the values we have cherished – of remaining a focused quality- and knowledge-
driven player in addition to protecting Balance Sheet integrity.
At Kriti, we believe that an overarching culture of excellence is derived from the components of
Culture of excellence across the organisation. The result of this commitment is that no improvement initiative
excellence is considered too small as we believe that every good thing is connected to another, which, in turn,
strengthens mindsets and competitiveness.
At Kriti, we address a market that is annually growing in modest single-digits. To expand aggressively
in this market implies that we would need to price below established players that could disturb market
Expand stability or nurse large unutilised capacity until a time that market growth caught up with our installed
incrementally base. We believe that steady growth is the safest response: makes it possible to address expenditure
through accruals, does not compel us to disturb market pricing and does not stretch our managerial
bandwidth in a business marked by a premium on the availability of specialised professionals.
At Kriti, we believe that it is not enough to be profitable only for the moment but to be sustainable
Continuous across all market-cycles. This sustainability is largely influenced by a culture of austerity coupled with an
cost obsessive commitment to moderate costs or eliminate waste at all levels. Over the years, we have made
management prudent investments in this direction, making it possible to enhance manufacturing efficiency (reflected
in optimal input-output ratios), and seek superior processes that conserve time and material use.
At Kriti, In a business that has been promoted by entrepreneurs, we believe that growth can be best
derived when the promoter charts out a strategic direction and monitors periodic progress while
Process- delegating day-to-day management to professionals. The Company invested in processes and systems
driven that enhanced decision-making predictability within enunciated guidelines. This predictability has
been reinforced through a progressive investment in information technology tools and support.

How we have
transformed
our business
over the years
Broad-basing portfolio
WE FOCUSED ON
A WIDE RANGE
OF PRODUCTS We established We widened We strengthened
a brand around our recall across our positioning as a
product a range of one-stop solutions
dependability products provider
Widening presence
WE FOCUSED
ON REGIONAL
MARKETS Our brand was We entered This is a
strong enough new markets in precursor to
(MADHYA to extend to 2018-19 (multi- emerging as a
PRADESH AND other States zonal presence) pan-India brand
RAJASTHAN)
Moderating debt
THE COMPANY
INVESTED
ACCRUALS The Company Nearly 43% of
Gearing was
invested H56.63 this investment
IN BUSINESS crore in three was derived
0.35 at the close
GROWTH of 2018-19
years from accruals

Strengthening credit rating
THE COMPANY
LEVERAGES A
LIQUID UNDER- The Company The superior A moderated
was rated BBB+ by rating will debt cost can
BORROWED a prominent credit- moderate debt potentially enhance
BALANCE SHEET rating agency cost margins
Investing in growth avenues

THE COMPANY
IS EXTENDING The Company The Company
FROM WATER is seeking is seeking to
This sectoral
broadbasing will
TRANSPORTATION opportunities in service the urban
enhance business
SOLUTIONS the telecom piped gas
sustainability
sector market

Our business model
AT KRITI INDUSTRIES, WE HAVE PROGRESSIVELY INVESTED
IN DISTINCTIVE CONDUCT, COMPLIANCE AND STRATEGY
DIRECTED TO GENERATE LONG-TERM BUSINESS
SUSTAINABILITY.
The sectoral context
Water-stress Depletion Rain-fed Climate

Nearly 600 million Indians Critical groundwater Indian agriculture India’s Economic Survey
face high-to-extreme resources (40% of India’s is largely rain-fed, warned that climate
water stress due to water supply) are being with only a third of change could shrink
inadequate potable water. depleted at unsustainable agricultural activities India’s agricultural income
rates; up to 70% of in India depending on 25% in un-irrigated
India’s water supply is groundwater for irrigation farmlands and 18% in
‘contaminated’, making (Census 2011). irrigated areas across eight
water transportation decades. An IMF study
critical. says that for emerging
market economies, a 1°C
increase in temperature
could reduce agricultural
growth 1.7%, and a 100
mm reduction in rain
could reduce growth by
0.35%.
What makes India’s water sector a nationally-critical growth story
600 75 84 70 120
Million, people facing %, Indian households %, Rural Indian %, India’s water that is Rank, India in the
high-to-extreme water without residential households without contaminated Water Quality Index
stress drinking water piped water access out of 122 countries
60 50 ~ 20-30 42
%, Indian States (15 of %, proportion of %, of India’s agri % of India’s land area
24) classified as ‘low’ India’s population in output coming from facing drought
performers States classified as ‘low States classified as ‘low
performers’ on the performers’
Water Index

Water productivity Water table Telecom Piped gas
India consumes 2-4 times In 1951, per capita water The optical fibre market Following the completion
more water than China availability was 5,177 cubic in India is projected at of the ninth city gas
and Brazil to produce a metres. In 2011 Census US$424 million by 2020 distribution bidding round,
unit of major food crops, figures, this came down on account of growing city gas distribution would
making micro-irrigation to 1,545 cubic metres adoption of smartphones, be available in 178 GAs
necessary. -- a decline of about 70% broadband services and comprising 280 districts
in 60 years. The average 5G roll-out. The optic fibre spread over 26 States and
annual per capita water cable comprises tens Union Territories covering
availability in 2001 was of strands of glass fibre, more than 50% of India’s
1,820 cubic metres and each no thicker than a population and 35% of its
the government estimates human hair and capable GA. India also launched the
that this may reduce to of transmitting the entire tenth city gas distribution
1,341 cubic metres by 2025 Encyclopaedia Britannica’s bidding round in 50 GAs
and 1,140 cubic metres by contents in less than a spread over 124 districts
2050, making the use of second. (Source: TechSci in 14 States to potentially
submersible pumps and Research). reach piped gas to 200 lakh
PVC pipes necessary. households.
6 500 60 69.5 7.73

% of India’s land Million, population of % of India’s districts Million hectares, Million hectares, India’s
area classified as India’s ‘low performer’ not prepared for India’s micro-irrigation estimated areas with
exceptionally dry (4x States in water drought potential area drip irrigation
the spatial extent availability
of drought in the
previous year)
21 100 65 85 Sources: Drought Early

Warning System, IIT-
Indore, IIT-Guwahati,
Intergovernmental Panel
Number of Indian Million, estimated % of India’s irrigation % of India’s drinking on Climate Change, India
cities facing water number of people that supply supported by water supply Spend, Niti Aayog and
shortage and could could be affected if only ground water supported by South Asia Groundwater
run out of ground two Indian cities run out groundwater Forum
water by 2020 of water by 2021

The
relevance
of our
business
model
Strategic
National relevance Location Broadbasing
We grew our business in national priority The Company is present in Madhya We believe that any-market
areas likely to attract government policies Pradesh where 70% of the state’s competitiveness is derived from business
and consumer traction. In view of this, population depends on agriculture. broadbasing. The Company broadbased
our polymer extrusion business addresses its manufacturing infrastructure through
increasingly relevant downstream New markets capacity addition, widened its products
interventions (water transmission, gas The Company has extended to new portfolio, expanded its geographic
transportation and optic fibre ducts). markets with a low consumption season footprint and intends to widen its
overlap (extending the peak season presence across downstream sectors
offtake period) (beyond water transmission).
Intangibles
Trust other attributes. A high level of practiced under-performance (leak or break) can
The Company’s product quality has integrity has helped the Company create affect soil quality through the farms it
been validated across more than two a robust eco-system. passes under.
generations for endurance, visibility and
service. The Kriti brand stands for long- Brand Holistic
term dependability in the markets of its The Company generates about 69% Kriti Industries has graduated from a
presence. revenues from trade partners who retail water transmission products company to
to consumers. The Company’s Kasta a fluid transportation products company.
Integrity brand generates a consumer pull without The extrusion of polymer products is
At Kriti Industries, governance has been any price discount. The brand stands for being adapted to other areas (gas and
marked by a commitment to trust, ethics, positive attributes (‘Expert ka vishwaas’, optic fibre cables).
transparency, partnership, team-working, ‘bharosa’, ‘superior’, ‘best’ and ‘peace
dependability and sustainability, among of mind’). This recall is critical; any pipe

Product
One-stop Customisation a lower price/quality of raw material to
The Company is a one-stop provider The Company focuses on product enhance profitability. This addressed
of polymer extruded products – from customisation to terrains marked by a the growing emergence of discerning
20 mm to 710 mm diameter and disproportionate increase in offtake. farmers who would prefer to invest in a
applications extending from water to premium quality product when making
drip irrigation to gas to telecom. This Quality a long-term capital expenditure (as
has enhanced our share of the primary The Company manufactured product of a opposed to buying low-priced products
customer’s wallet (distributors). highly consistent quality standard (across of suspect quality).
narrow tolerances), resisting the use of
Infrastructure
State-of-the art Phased investment Logistical competitiveness
The Company consciously invested in The Company grew the business in The Company is engaged in the
state-of-the-art manufacturing facilities phases –adequate for the expansion manufacture of a hollow product,
- a higher one-time investment in to be funded largely from accruals and making it imperative to market as close
exchange for a sustainable advantage moderate debt. to the plant as possible, moderating
(productivity, quality and efficiency). transportation costs.
Market Presence
Pan-India Project Management Office Contiguous growth
The Company was a regional player with This team of specialists focuses on on- The Company believes in incremental
a presence in a handful of Indian states ground programmes to drive quarter-on- geographic expansion: from one district
across 35 years. In the last few years, the quarter growth in new markets. to the contiguous other, leveraging
Company widened its presence across economies of brand spending,
multiple contiguous States with the long- Penetration distribution presence and managerial
term objective of emerging as a pan-India The Company is directly present through bandwidth.
brand. trade partners right down to tehsil levels
(as opposed to taluka levels for most). Value-added
Micro focus The Company is a value-added player
The Company has treated each district Market share in a commoditised space. The Company
as a unique market, helping map the The Company is the market leader right manufactured products addressing the
growing needs of individual farmers. down to the taluka level across Madhya highest quality standard and generating
Pradesh (65%) and Rajasthan (45%). a premium.
Finance
Financial conservatism business through accruals, paying down Competitiveness
The Company believes in any-market long-term debt and moderating its The Company’s cost leadership is
competitiveness derived from a receivables. validated through robust competitiveness
conservative Balance Sheet. The across market cycles, geographies and
Company invested in building its user segments.
Outcomes of our business model

EBITDA margins rating and the strength of the Company’s BBB to BBB+, which helped moderate the
There was a moderate and temporary Balance Sheet. cost of funds.
decline in margins on account of upfront
business development costs charged to Liquidity Gearing
the P&L account, which should translate Working capital drawal was The Company’s gearing increased to 0.35
into increased output and revenues that approximately 75% of the sanctioned during the year under review, reflecting
amortise fixed costs effectively. amount in FY2018-19. investments in enhanced manufacturing
capacity. The total long-term debt during
Debt cost Credit rating the year under review was only H29.95
There was a decline in debt cost The Company’s business fundamentals crore (as on 31st March 2019).
following a superior leverage of the credit resulted in a superior credit rating – from

Management
discussion
and analysis
Global economic overview

Following 3.8% growth in 2017, the Crude prices remained volatile since demand. Oil prices dropped from a four-
global economy slowed in the second August 2018 as a result of multiple factors year peak of US$ 81 per barrel in October
half of 2018, reflecting a confluence including the American policy related 2018 to US$ 61 per barrel in February
of factors affecting major economies to Iranian exports and softening global 2019.
like the failure of Brexit negotiations,
tightened financial conditions, trade wars, Global economic growth over six years
geopolitical tensions and higher crude Year 2015 2016 2017(E) 2018(E) 2019 (P)
oil costs. The global economic growth
Real GDP growth (%) 3.2 3.1 3.8 3.6 3.3
in 2018 was estimated at 3.6% and
projected to slow to 3.3% in 2019. [Source: World Economic Outlook, January 2019] E: Estimated; P: Projected
Indian economic overview

India emerged as the sixth-largest was on account of a large non-banking trade war opened a new opportunity
economy and retained its position as the financial company announcing its for India. Inflation (including food and
fastest-growing trillion-dollar economy. inability to address liabilities. This affected energy prices) was pegged at 2.6% on an
However, after growing 7.2% in 2017-18, credit expansion, financial markets and annual basis, one of the lowest in years.
the Indian economy was expected to consumer sentiment, which resulted in The rupee rebounded after touching
grow at 6.8% in 2018-19. slower GDP growth. a low of H74.45 to a dollar to close the
financial year at H69.44. During the fiscal
The principal developments during the In 2018, the country attracted more
under review, the Indian Government
year under review comprised a sustained foreign inflows than China - ~US$ 38
continued to invest deeper in digitisation,
increase in per capita incomes, decline billion, higher than China’s US$ 32 billion.
renewable energy capacity generation
in national inflation, steadying interest India witnessed a 23-notch increase
and infrastructure building.
rates, and weakened consumer sentiment to 77th position in the World Bank’s
starting from the second half of the report on the ease of doing business.
financial year. The weaker sentiment The commencement of the US-China
Key Indian government initiatives

Bank recapitalisation scheme: In Increasing MSPs: The Indian Indian Government to provide them a
addition to infusing H2.1 lakh crore Government fixed MSPs of 22 mandated special dispensation under the code.
in public sector units, the Indian kharif and rabi crops and FRP for
Pradhan Mantri Kisan Samman Nidhi:
Government announced a capital sugarcane. The Indian Government
The Indian Government announced in
infusion of H41,000 crore through committed to provide a 50% return over
February 2019 the Pradhan Mantri Kisan
recapitalisation bonds in FY2018-19. the cost of production for all mandated
Samman Nidhi, a scheme promising
crops, strengthening the rural economy.
Expanding infrastructure: The an annual assured income of H6,000
Government of India invested H1.52 The Insolvency and Bankruptcy code (US$84.5) to any farmer owning ≤2
trillion to construct 6,460 kilometres (Amendment), Ordinance 2018: hectares of farmland. The budget for fiscal
of roads in 2018. Its expenditure of Passed in June 2018, the ordinance year 2020 allocated H75,000 crore for the
H5.97 trillion (US$89.7 billion) towards provides significant relief to home- scheme, benefiting ~120 million land-
infrastructural development for 2018-19 buyers by recognising their status as owning farmer households.
is expected to strengthen the national financial creditors. The major beneficiary
Direct Benefit Transfer: The Direct
economy. comprised MSMEs, empowering the

THE PRINCIPAL DEVELOPMENTS DURING
THE YEAR UNDER REVIEW COMPRISED
A SUSTAINED INCREASE IN PER CAPITA
INCOMES, DECLINE IN NATIONAL
INFLATION, STEADYING INTEREST RATES,
AND WEAKENED CONSUMER SENTIMENT
STARTING FROM THE SECOND HALF OF
THE FINANCIAL YEAR.
Benefit Transfer initiative re-engineered to have transferred >H314,465 crore and FY2019-20 than in the previous year on
the cash disbursement process in welfare the gains to have accrued since scheme account of the lingering sluggishness in
schemes through simpler and faster implementation estimated at more than consumer sentiment. (Source: CSO, Fitch,
flow of information/funds to ensure H120,000 crore. Economic Times, Business Standard, IBEF,
accurate targeting of beneficiaries, de- Business Today, India Today)
duplication and reduction of fraud. In Outlook
2018-19 alone, this scheme is estimated India is expected to grow slower in
Indian pipes industry overview

The Indian pipes industry is catalysed by The Indian market for pipes is being
the need to transport fluids – water, gas catalysed by a growing population, realty ADVANTAGES OF PVC PIPES
sewage and chemicals – from one point construction, improved lifestyles, growing PVC pipes are durable, marked
to another across the agriculture, realty, water stress and increasing irrigation by low maintenance and
general industry, petroleum and telecom focus in India’s agricultural sector. Nearly installation costs
sectors. 70% of the demand for plastic pipes is
PVC pipes are safe for drinking
derived from the agricultural sector, while
Among the available varieties (concrete, water transmission due to their
30% demand is drawn from the non-
and steel), plastic pipes are being high inertness and corrosion
agricultural spaces. resistance.
increasingly preferred for their lightness,
durability, imperviousness, chemical In the last few years, the PVC pipes PVC is a low carbon plastic that
resistance, recyclability and a superior market has been catalysed by a growing requires less energy and few
price-value proposition. These pipes can government priority in strengthening resources to manufacture (making
replace wood, metal, concrete and clay the country’s agriculture sector. it eco-friendly).
across applications. This priority has been showcased in PVC pipes are recyclable.
the announcement of prominent
India ranks among the three leading PVC pipes are significantly light,
government programs (Pradhan Mantri
global pipe manufacturing hubs. enhancing installation ease,
Krishi Sinchai Yojana and Swachh Bharat
In addition to a growing domestic without the risk of injury or a large
Abhiyan etc.).
consumption, India exports pipes to team of workers
countries like US, Europe, Malaysia,
PVC pipes are equipped
Thailand, the Middle East, and Indonesia, Indian plastic pipes market with superior resistance to
on account of competitive pricing, harmful chemical reagents and
superior quality and locational advantage. PP
Others 1% disinfectants;
1% CPVC
Indian polyvinyl chloride (PVC) 1% PVC pipes are resistant to flame.
pipes and fittings The temperature that they need
PE for spontaneous ignition is a high
The Indian PVC pipes and fittings market 17% 450 degrees Celsius.
continues to grow and is anticipated to
register a double digit CAGR of ~14.7% The PVC pipes utilise innovative
by revenue between FY2018 and FY2026. techniques resulting in the
tightest joints. PVC is equipped
The India PVC pipes market (chlorinated
with deep insertion, monolithic
PVC, unplasticised polyvinyl chloride PVC
80% sealed, and push together gasket
or uPVC and plasticised PVC) addresses as well as solvent cement joints
heavy-duty plumbing, sewerage & so that they offer optimum safety
drainage and HVAC applications. and resistance.

Sectoral demand drivers
Agriculture: Agriculture is the primary of Secretaries, 2017, outlined a target to
source of livelihood for ~58% of India’s cover 10 million hectares under micro- Projected growth of India’s
population. India is the world’s second irrigation over five years (2017-18 to real estate sector
largest producer of agriculture products 2021-22).
(7.39% of total global agricultural output).
Real estate: Real estate (housing, retail,
Gross irrigated area stood at 68.4 million
hospitality and commercial) is a driver
2017 US$120 billion
hectares in FY18. With discussions
of PVC pipes. The market for commercial
centred around increasing farm stress,
space in India has been driven by ITeS/
the Indian government has launched
a number of schemes to irrigate every
IT, BFSI, consulting and manufacturing 2025 US$650 billion
sectors. Besides, the growth of this
farmer’s field (18.8 million hectares)
segment has been driven by initiatives
and help double farmers’ incomes by
2022. As per the Union Budget 2019-20,
like Pradhan Mantri Awas Yojana, Housing
for All and 100 Smart City projects.
2028 US$850 billion
H140,764 crore was allocated to India’s
Under the Pradhan Mantri Awas Yojana
agriculture sector, which is expected to
(PMAY) - Urban, some 6,028,608 houses
catalyse the market for PVC pipes. There
is a growing traction for micro-irrigation,
were sanctioned for construction up to 2030 US$1 trillion
September 2018. The sector is expected
ensuring the precise application of water
to grow to US$1 trillion by 2030,
into the soil for germination, helping
strengthening the market for PVC pipes.
optimise the soil’s air and water balance
[Source: IBEF; The Economic Times]
facilitating root development. The Group
Landmark government schemes

At Kriti Industries, we see a multi-year traction building up for the country’s PVC pipes market on account of growing consumer
demand, but more importantly, a rising government investment in various projects expected to make a greater use of PVC pipes and
fittings.
Pradhan Mantri Awas Smart City Mission AMRUT Pradhan Mantri Gram
Yojana Government investment: Government investment: Sinchai Yojana
Government investment: H2.05 lakh crore H7,300 crore Government investment:
H26,405 crore in 2018 H50,000 crore
Doubling farm incomes Swachh Bharat Mission

Government investment: Objective: To accelerate universal sanitation coverage across over 4,000 cities and towns,
H58,080 crore (Union enhancing cleanliness and sanitation (solid and liquid waste management and making gram
Budget 2018-19) panchayats open defecation-free).
The Company’s overview

The Company operates in the polymer segment catering to agriculture, building products, micro irrigation and infrastructure. Over
decades, the Company has emerged as a reputed manufacturer of plastic polymer piping systems, moulded plastic products, wires/
cables and accessories.
The product applications comprise the following:
Applications Products
Agriculture RPVC pipe and fittings, casing pipe, PE coils, sprinkler systems, submersible pipe, suction and garden pipe.
Building products SWR and drainage pipe and fittings, CPVC and plumb pipe and fittings, garden pipe and water tank.
Micro irrigation Micro-irrigation lateral (inline and online), sprinkler systems, RPVC pipes and fittings.
Infrastructure & RPVC ring fit pipe (elastomeric) and fittings, HDPE and MDPE (PE) Pipes and Fittings, PLB telecom duct and
Datacom micro-ducts.

Financial review
Operational performance The Company’s Profit before Tax was 2017-18.
The Company reported a turnover of H10.47 crore and Profit after Tax was H6.61
The Company ended the year under
H569.01 crore, which was 28.09% higher crore in 2018-19. The Company reported
review with a gearing of 0.35 compared
than in the previous year. The Company an EBITDA margin of 5.46% in 2018-19.
with the previous financial year’s 0.17. The
reported 100% of its revenues from The Company’s Earning per Share was total interest outflow was H14.77 crore as
within India. H1.33 in 2018-19 compared with H1.86 in against H12.53 crore in the previous year.
Risk management
Economy risk Infrastructure spending risk Competence risk

The business may underperform The business may under-deliver if the The Company may not possess the
on account of the economic government selects to invest less in capability to manufacture different
slowdown. the infrastructure. products.
Mitigation: Over the last few years, Mitigation: The government is Mitigation: The Company (in
India has been consistently reporting focusing on infrastructure creation, operation since 1982) is respected
a GDP of around 7%, making it evolving from a consumption-driven for being a product ‘supermarket’ in
the world’s fastest growing major economy to an infrastructure-driven its business space. This position has
economy. However, in the event one. In the Union Budget 2019-20, been achieved through a widening
of an economic slowdown, there the government allocated H4.56 lakh portfolio of products addressing
is a possibility that spending on crore for infrastructure creation. The diverse needs (across sizes, segment
agriculture and water security could government’s flagship Housing for All and applications). The Company’s
be insulated, protecting prospects programme is expected to catalyse portfolio comprises a large range of
for PVC pipe manufacturers like Kriti the demand for PVC pipes; the products addressing applications
Industries. The year under review government’s increased spending on across diverse downstream sectors.
is indicative; even as the Indian the agriculture sector is expected to
economy slowed, especially in the strengthen offtake.
second half, Kriti Industries reported
31% revenue growth.
Subsidary company
Kriti Auto & Engineering Plastics Private H18.64 crore (previous year H19.30 crore) the year. The diversifying product basket
Limited, a wholly-owned subsidiary of the and incurred a net loss after tax of H0.61 is expected to generate a cash surplus
Company, achieved a gross turnover of crore (previous year H0.03 crore) during during the current financial year.
Information technology
SAP HANA was implemented successfully line with overall growth objective and CRM, HRM, Sales Force Mobility for
and helping in business analytics and strengthening of infrastructure base, leveraging its business values. Through
efficiency. Your Company views these the Company continues to invest in the implementation of these softwares
investments as a strategic tool to Information Technology (IT) viz. SAP the Company has improved its efficiency.
enhance its operational efficiencies. In Enterprising Resource Planning System,
Internal control systems and their adequacy

The Company’s robust and intricate internal audit frame work which actively engage in the evaluation and
internal control systems ensure there extensively covers all aspects of financial improvement of various functions and
is efficient use and protection of and operational controls, covering all activities of the Company including
resources and compliance with policies, units, functions and departments. The restaurant operations and other support
procedures and statutory requirements. Company also has an efficient financial functions and departments. The
We have developed well-documented reporting system in place. Our internal Company also has an Internal Audit cell
guidelines, procedures for authorisation audit team consists of senior members which supports the Audit Committee
and approvals which include processes across various functional departments besides the independent review of
such as audits. Integral to the overall some of whom are also key managerial internal controls, operating systems and
governance, we have a well-established personnel of the Company. They procedures by external auditors.

Human resources
The Company employed 561 officers and The Company implemented programs employees were implemented, resulting
workmen as on 31st March 2019. Increase and projects related to skill development in enhanced quality, cost optimisation
in the value of human capital through the and up gradation of employee and productivity.
development of individual and collective competence. Programmes of knowledge
competencies has helped the Company sharing were conducted. A number
stay in step with market developments. of innovative ideas received from
Cautionary statement
The statements in the ‘Management for growth, product development, from those projected in such forward-
Discussion & Analysis’ section market positioning, expenditures and looking statements. The Company
describing the Company’s objectives, financial results, are based on certain assumes no responsibility to publicly
projections, estimates and prediction assumptions and expectations of future amend, modify or revise any forward-
may be considered as forward looking events. The Company cannot guarantee looking statement on the basis of any
statements. All statements that address that these assumptions and expectations subsequent developments, information
expectations or projections about the are accurate or will be realised. The or events.
future, including but not limited to Company’s actual results, performance or
statements about the Company’s strategy achievement may thus differ materially

Statutory
Section

Notice
NOTICE IS HEREBY GIVEN that the 29TH ANNUAL GENERAL section 197 and 198 of the Companies Act, 2013 Shri Shiv
MEETING (AGM) of the Members of KRITI INDUSTRIES (INDIA) Singh Mehta shall have the option from which company Kriti
LIMITED will be held on will be held on Wednesday, the 14th Day Industries (India) Ltd and/or Kriti Nutrients Ltd. he wants to
of August, 2019 at 04:00 PM at 8th Floor, Brilliant Sapphire Plot take the amount of incentive /commission as recommended
no.10, PSP, IDA, Scheme No.78, Part II, Indore (M.P.) to transact the by Nomination &Remuneration Committee and approval by
following businesses: the Board, which shall be paid at the end of the financial year.
RESOLVED FURTHER that Shri Shiv Singh Mehta shall also

ORDINARY BUSINESS
be eligible to the following perquisites which shall not be
1. To consider and adopt the Standalone & Consolidated
included in the computation of the ceiling on minimum
Audited Financial Results of the Company for the Financial
remuneration specified here-in-above in accordance with
Year ended 31st March 2019 and the reports of the Board of
the provisions of Schedule V to the Companies Act, 2013 as
Directors and Auditors thereon..
amended from time to time or any re-enactment thereof, if the
2. To declare dividend on the equity shares for the Financial Company has no profits or its profits are inadequate:
Year ended 31st March, 2019.
a) contribution to provident, superannuation or annuity
3. To appoint a Director in place of Mr. Saurabh Singh Mehta fund to the extent these either singly or put together are
(DIN: 00023591), who retires by rotation at this Annual General not taxable under the Income Tax Act, 1961;
Meeting and being eligible offers himself for re-appointment.
b) gratuity payable at a rate not exceeding half a month’s
SPECIAL BUSINESS salary for each completed year of service; and
4. REVISION IN THE REMUNERATION OF SHRI SHIV SINGH c) encashment of un-availed leave at the end of the tenure.
MEHTA (DIN: 00023523) THE CHAIRMAN & MANAGING
RESOLVED FURTHER THAT the aforesaid Salary, perquisites,
DIRECTOR OF THE COMPANY:
incentives/Commission and other benefits/ allowances (as
To consider and if thought fit to pass with or without per the rules of the Company) as may be decided by the
modification(s) the following Resolution as a Special Committee from time to time subject to further approval of
Resolution: the Board of Directors from time to time subject in aggregate
“RESOLVED THAT in pursuant to the Articles of Association to the minimum remuneration as provided in the Schedule
of the Company and in accordance with the provisions of V or the maximum of 5% of the net profits of the Company
section 196-197 and 203 read with the Schedule V of the calculated in accordance with the provisions of Section 197
Companies Act, 2013 and other applicable provisions, if any, of the Companies Act, 2013 whichever may be higher.
of the Companies Act, 2013 as amended from time to time or FURTHER RESOLVED that Shri Shiv Singh Mehta and/or the
any re-enactment thereof and upon the recommendation/ Company may decide the remuneration to be paid to him
approval of the Nomination and Remuneration Committee from the Company or the other Company Kriti Nutrients Ltd.,
and the Board of Directors, Company do hereby approves the in which he is also a Chairman and Managing Director subject
revision in the remuneration payable Shri Shiv Singh Mehta to the maximum sanctioned limit in any of the Company Kriti
(DIN:00023523) the Chairman & Managing Director of the Industries (India) Ltd. or Kriti Nutrients Ltd.
Company (Who is also the Chairman and Managing Director
FURTHER RESOLVED THAT The Company Secretary and/
of Kriti Nutrients Ltd.) who was re-appointed at the Annual
or CFO or the Chairman and Managing Director be and is
General Meeting held on 11th August, 2016 for a term of 5
hereby authorized to do all such acts, matters, deeds and
years with effect from 1st Oct., 2016 to 30th Sept., 2021 for the
things to implement the aforesaid Resolution for and on
remaining part of his tenure from 1st April, 2019 to 30th Sept.,
behalf of the Company.
2021 as under;
1. Salary: Upto H5.00 lakhs Per Month 5. RE-APPOINTMENT OF MRS. PURNIMA MEHTA (DIN:
00023632) AS THE WHOLE-TIME DIRECTOR OF THE
2. Perquisite: Upto H0.50 lakhs Per Month
COMPANY:
3. Incentive/Commission
To consider and if thought fit to pass with or without
The aforesaid salary, perks and incentives/ commission shall
modification(s) the following resolution as an Special
be subject to the maximum amount of 5% of the net profits
Resolution:
of the Company in the financial year as determined under
“RESOLVED THAT in pursuant to the Articles of Association

of the Company and in accordance with the provisions of 6. RE-APPOINTMENT OF CA MANOJ FADNIS (DIN: 01087055)
section 196-197 and 203 read with the Schedule V of the AS AN INDEPENDENT DIRECTOR:
Companies Act, 2013 and other applicable provisions, if any,
To consider and, if thought fit to pass with or without
of the Companies Act, 2013 as amended from time to time or
modification(s), the following resolution as a Special
any re-enactment thereof and upon the recommendation/
Resolution:
approval of the Nomination and Remuneration Committee
and the Board of Directors, the Company hereby approves “RESOLVED THAT pursuant to the provisions of sections
the re-appointment and the remuneration payable to Mrs. 149 and 152 read with Schedule IV and other applicable
Purnima Mehta (DIN:00023632) as the Whole-time Director of provisions, if any, of the Companies Act, 2013 and the
the Company for a term of 3 years with effect from 1st July, Companies (Appointment and Qualification of Directors)
2019 to 30th June, 2022 on the following remuneration; Rules, 2014 and the applicable provisions of the SEBI (LODR)
Regulations, 2015 (including any statutory modification(s)
1. Salary: Upto H4.00 lakhs Per Month
or re-enactment(s) thereof, for the time being in force), CA
2. Perquisite: Upto H0.50 lakhs Per Month Manoj Fadnis (DIN: 01087055), who was appointed as an
Independent Director upto the 1st term of 5 years ended
3. Incentive/Commission
on 31st March, 2019 and being eligible, and has submitted a
The aforesaid salary, perks and incentive/commission shall declaration for his independence and upon recommendation
be subject to the maximum amount of 5% of the net profits of the Nomination and Remuneration Committee and the
of the Company in the financial year as determined under Board of directors, CA Manoj Fadnis (DIN: 01087055) be and
section 197 and 198 of the Companies Act, 2013, which shall is hereby re-appointed as an Independent Director of the
be paid at the end of the financial year. Company, not liable to retire by rotation and to hold office
RESOLVED FURTHER that Mrs. Purnima Mehta shall also for a second term of 5 (five) consecutive years, w.e.f. 1st April,
be eligible to the following perquisites which shall not be 2019 to 31st March, 2024.”
included in the computation of the ceiling on minimum 7. RE-APPOINTMENT OF SHRI RAKESH KALRA (DIN: 00780354)
remuneration specified here-in-above in accordance with AS AN INDEPENDENT DIRECTOR:
the provisions of Schedule V to the Companies Act, 2013 as
To consider and, if thought fit to pass with or without
amended from time to time or any re-enactment thereof, if the
modification(s), the following resolution as a Special
Company has no profits or its profits are inadequate:
Resolution:
d) contribution to provident, superannuation or annuity
“RESOLVED THAT pursuant to the provisions of sections
fund to the extent these either singly or put together are
149 and 152 read with Schedule IV and other applicable
not taxable under the Income Tax Act, 1961;
provisions, if any, of the Companies Act, 2013 and the
e) gratuity payable at a rate not exceeding half a month’s Companies (Appointment and Qualification of Directors)
salary for each completed year of service; and Rules, 2014 and the applicable provisions of the SEBI (LODR)
f) encashment of un-availed leave at the end of the tenure. Regulations, 2015 (including any statutory modification(s)
or re-enactment(s) thereof, for the time being in force), Shri
RESOLVED FURTHER THAT the aforesaid Salary, perquisites, Rakesh Kalra (DIN: 00780354), who was appointed as an
incentives/commission and other benefits/ allowances (as Independent Director upto the 1st term of 5 years ended
per the rules of the Company) as may be decided by the on 31st March, 2019 and is eligible, and has submitted a
Committee from time to time subject to further approval of declaration for his independence and upon recommendation
the Board of Directors from time to time subject in aggregate of the Nomination and Remuneration Committee and the
to the minimum remuneration as provided in the Schedule Board of directors, Shri Rakesh Kalra (DIN: 00780354) be and
V or the maximum of 5% of the net profits of the Company is hereby re-appointed as an Independent Director of the
calculated in accordance with the provisions of Section 197 Company, not liable to retire by rotation and to hold office for
of the Companies Act, 2013 whichever may be higher. a second term of 5 (five) consecutive years, w.e.f. 01st April,
FURTHER RESOLVED THAT The Company Secretary and/ 2019 to 31st March, 2024.”
or CFO or the Chairman and Managing Director be and is 8. TO RATIFY THE REMUNERATION OF COST AUDITORS FOR
hereby authorized to do all such acts, matters, deeds and THE FINANCIAL YEAR ENDING 31ST MARCH, 2019.
things to implement the aforesaid resolution for and on
behalf of the Board of the Company. To consider and if thought fit to pass with or without

modification(s) the following resolution as an Ordinary conduct the audit of the cost records of the Company for the
Resolution: Financial Year ending 31st March, 2020.”
“RESOLVED THAT pursuant to the provisions of Section 148 “RESOLVED FURTHER THAT the Board of Directors of the
and all other applicable provisions of the Companies Act, 2013 Company be and is hereby authorised to do all acts and take
read with the Companies (Audit and Auditors) Rules, 2014 all such steps as may be necessary, proper or expedient to
(including any statutory modification(s) or reenactment(s) give effect to this resolution.
thereof, for the time being in force), the members of the
Company be and hereby ratify the payment of remuneration
of H30,000/-, plus applicable taxes and reimbursement of
Date: 16th May, 2019 By order of the Board,
out of pocket expenses at actuals to Mr. S.P.S Dangi, Cost
Accountant, Indore (Registration No. 100004) appointed by Registered Office:
the Board of Directors of Company on the recommendation Regd. Office: Mehta Chamber, 34 Siyaganj, Preeti Sharma
of the Audit Committee of the Board, as Cost Auditors to Indore-452007 Company Secretary
NOTES:
1. The Explanatory Statement pursuant to Section 102 of the Company will remain closed from 08th August, 2019 to 14th
Companies Act, 2013, which sets out details relating to August, 2019 (both days inclusive) for the Annual General
special business at the meeting is annexed and forms part of Meeting.
the Notice.
7. Relevant documents referred to in the accompanying Notice
2. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE and the Statements are open for inspection by the Members
MEETING IS ENTITILED TO APPOINT A PROXY/IES TO at the Registered Office of the Company on all working days,
ATTEND AND VOTE INSTEAD OF HIMSELF/ HERSELF. THE except Saturdays, during business hours up to the date of the
PROXY NEED NOT BE A MEMBER OF THE COMPANY. A Meeting.
BLANK FORM OF PROXY IS ATTACHED HEREWITH AND, IF
8. Members desirous of obtaining any information concerning
INTENDED TO BE USED, IT SHOULD BE RETURNED DULY
Accounts and Operations of the Company are requested to
COMPLETED AND SIGNED AT THE REGISTERED OFFICE OF
address their questions in writing to the Company at least 7
THE COMPANY NOT LESS THAN 48 HOURS BEFORE THE
days before the date of the Meeting so that the information
SCHEDULED TIME OF THE COMMENCEMMENT OF 29TH
required may be made available at the Meeting.
ANNUAL GENERAL MEETING.
9. Electronic copy of the Annual Report 2018-19 is being sent
3. A PERSON CAN ACT AS A PROXY ON BEHALF OF MEMBERS NOT
to the members whose email Ids are registered with the
EXCEEDING 50 IN NUMBERS AND HOLDING IN AGGREGATING
Company/Depository Participant(s) for communication
NOT MORE THAN 10% OF THE TOTAL SHARE CAPITAL OF THE
purpose unless any member has requested for a physical
COMPANY CARRYING VOTING RIGHTS. HOWEVER, A MEMBER
copy of the same.
HOLDING MORE THAN 10% OF THE TOTAL SHARE CAPITAL
OF THE COMPANY CARRYING VOTING RIGHTS MAY APPOINT 10. The Members are requested to:
A SINGLE PERSON AS A PROXY AND SUCH PERSON SHALL a) Intimate changes, if any, in their registered addresses
NOT ACT AS A PROXY FOR ANY OTHER PERSON OR MEMBER. immediately.
4. Corporate Members are requested to send Board resolution b) Quote their ledger folio number in all their
duly certified, authorizing their representative to attend and correspondence.
vote on their behalf at the AGM. c) Hand over the enclosed attendance slip, duly signed
in accordance with their specimen registered with the
5. Pursuant to SEBI (Listing Obligations and Disclosure
Company for admission to the meeting place.
Requirements) Regulations, 2015, particulars of Directors
seeking appointment / re-appointment/continuance of d) Bring their Attendance Slips with them at the EGM
appointment at this meeting are annexed hereto. venue.
6. Register of Members and Share Transfer Books of the 11. Members are requested to notify immediately any change

in their address and also intimate their active E-Mail ID to electronically. The e-voting module shall be disabled
their respective Depository Participants (DPs) in case the by CDSL for voting thereafter.
shares are held in demat form and in respect of shares held
(ii) The shareholders should log on to the e-voting website
in physical form to the Registrar and Share Transfer Agent
www.evotingindia.com.
Ankit Consultancy Pvt. Ltd., Plot No. 60, Electronic Complex,
Pardeshipura, Indore (M.P.) having email Id ankit_4321@ (iii) Click on Shareholders / Members
yahoo.com, rtaindore@gmail.com to receive the soft copy (iv) Now Enter your User ID
of all communication and notice of the meetings etc., of the
a. For CDSL: 16 digits beneficiary ID,
Company.
b. For NSDL: 8 Character DP ID followed by 8 Digits
12. Voting through electronic means Client ID,
In compliance with the provisions of section 108 of the c. Members holding shares in Physical Form should
Companies Act, 2013 and the Rule 20 of the Companies enter Folio Number registered with the Company.
(Management and Administration) Amendment Rules,
(v) Next enter the Image Verification as displayed and Click
2015 and regulation 44 of SEBI (LODR) Regulation, 2015
on Login.
the Company is pleased to provide its members the facility
to exercise their right to vote at the 29th Annual General (vi) If you are holding shares in demat form and had logged
Meeting (AGM) by electronic means and the business may on to www.evotingindia.com and voted on an earlier
be transacted through e-Voting Services provided by Central voting of any company, then your existing password is
Depository Services Limited (CDSL). to be used.
The Company shall provide facility for voting through polling (vii) If you are a first time user follow the steps given below:
paper which shall be available at the meeting and members For Members holding shares in Demat Form
attending the meeting who have not already casted their and Physical Form
vote by remote e-voting shall be able to exercise their right to PAN Enter your 10 digit alpha-numeric PAN issued
vote at the meeting. by Income Tax Department (Applicable for
both demat shareholders as well as physical
The Members who have casted their vote by remote e-voting
shareholders)
prior to the meeting may also attend the meeting but shall
• Members who have not updated their PAN
not be entitled to cast their vote again.
with the Company/Depository Participant
The cut-off date for the purpose of voting (including remote are requested to use the first two letters of
e-voting) is 7th August, 2019 (Wednesday). their name and the 8 digits of the sequence
number in the PAN field.
The remote e-voting facility will be available during the
• In case the sequence number is less than
flowing period after which the portal shall forthwith be 8 digits enter the applicable number of
blocked and shall not be available:- 0’s before the number after the first two
Commencement of remote 11th August, 2019 (Sunday) characters of the name in CAPITAL letters. Eg.
e-voting If your name is Ramesh Kumar with sequence
number 1 then enter RA00000001 in the PAN
End of remote e-voting 13th August, 2019 (Tuesday)
field.
Once the vote on a resolution is casted by the member, the Dividend Enter the Dividend Bank Details or Date of Birth
member shall not be allowed to change it subsequently. Bank Details (in dd/mm/yyyy format) as recorded in your
demat account or in the Company records in
Members are requested to carefully read the below OR Date of
order to login.
mentioned instructions for remote e-voting before casting Birth (DOB)
• If both the details are not recorded with the
their vote.
depository or company please enter the
(i) The voting period begins on 11th August, 2019 (Sunday) member id / folio number in the Dividend
and ends on 13th August, 2019 (Tuesday). During this Bank details field as mentioned in instruction
(iv).
period shareholders’ of the Company, holding shares
either in physical form or in dematerialized form, as (viii) After entering these details appropriately, click on
on the cut-off date (record date) may cast their vote “SUBMIT” tab.

(ix) Members holding shares in physical form will then instructions as prompted by the mobile app while
directly reach the Company selection screen. However, voting on your mobile.
members holding shares in demat form will now reach
(xix) Note for Non – Individual Shareholders and Custodians
‘Password Creation’ menu wherein they are required
• Non-Individual shareholders (i.e. other than
to mandatorily enter their login password in the new
Individuals, HUF, NRI etc.) and Custodian are required
password field. Kindly note that this password is to be
to log on to www.evotingindia.com and register
also used by the demat holders for voting for resolutions
themselves as Corporates.
of any other company on which they are eligible to
vote, provided that company opts for e-voting through • A scanned copy of the Registration Form bearing the
CDSL platform. It is strongly recommended not to stamp and sign of the entity should be emailed to
share your password with any other person and take helpdesk.evoting@cdslindia.com.
utmost care to keep your password confidential. • After receiving the login details a Compliance
User should be created using the admin login and
(x) For Members holding shares in physical form, the
password. The Compliance User would be able to
details can be used only for e-voting on the resolutions
link the account(s) for which they wish to vote on.
contained in this Notice.
• The list of accounts linked in the login should be
(xi) Click on the EVSN for the relevant Kriti Industries (India)
mailed to helpdesk.evoting@cdslindia.com and on
Limited on which you choose to vote.
approval of the accounts they would be able to cast
(xii) On the voting page, you will see “RESOLUTION their vote.
DESCRIPTION” and against the same the option • A scanned copy of the Board Resolution and Power
“YES/NO” for voting. Select the option YES or NO as of Attorney (POA) which they have issued in favour
desired. The option YES implies that you assent to the of the Custodian, if any, should be uploaded in PDF
Resolution and option NO implies that you dissent to format in the system for the scrutinizer to verify the
the Resolution. same.
(xiii) Click on the “RESOLUTIONS FILE LINK” if you wish to (xx) In case you have any queries or issues regarding
view the entire Resolution details. e-voting, you may refer the Frequently Asked
(xiv) After selecting the resolution you have decided to Questions (“FAQs”) and e-voting manual available at
vote on, click on “SUBMIT”. A confirmation box will be www.evotingindia.com, under help section or write an
displayed. If you wish to confirm your vote, click on email to helpdesk.evoting@cdslindia.com.
“OK”, else to change your vote, click on “CANCEL” and 13. You can also update your mobile number and e-mail id in the
accordingly modify your vote. user profile details of the folio which may be used for sending
(xv) Once you “CONFIRM” your vote on the resolution, you future communication(s).
will not be allowed to modify your vote. 14. The voting rights of members shall be in proportion to their
(xvi) You can also take a print of the votes cast by clicking on shares of the paid up equity share capital of the Company as
“Click here to print” option on the Voting page. on the cut-off date 07th August,2019 (Wednesday).
(xvii) If a demat account holder has forgotten the changed 15. Any person, who acquires shares of the Company and
login password then Enter the User ID and the image become member of the Company after dispatch of the
verification code and click on Forgot Password & enter notice and holding shares as on the cut-off date i.e. 07th
the details as prompted by the system. August,2019 (Wednesday)., may obtain the login ID and
password by sending a request at evoting@nsdl.co.in or RTA.
(xviii) Shareholders can also cast their vote using CDSL’s
mobile app m-Voting available for android based 16. A member may participate in the AGM even after exercising
mobiles. The m-Voting app can be downloaded from his right to vote through remote e-voting but shall not be
Google Play Store. Apple and Windows phone users allowed to vote again at the AGM.
can download the app from the App Store and the 17. A person, whose name is recorded in the register of members
Windows Phone Store respectively. Please follow the or in the register of beneficial owners maintained by the

depositories as on the cut-off date only shall be entitled to who shall countersign the same and declare the result of the
avail the facility of remote e-voting as well as voting at the voting forthwith.
AGM through ballot paper.
21. The Results declared alongwith the report of the Scrutinizer
18. CS Ishan Jain, Practicing Company Secretary (M. No. ACS shall be placed on the website of the Company kiil.kritiindia.
29444 & C.P. No. 13032) and Proprietor of M/s. Ishan Jain & com and on the website of NSDL immediately after the
Co., Company Secretaries, Indore has been appointed as declaration of result by the Chairman or a person authorized
the Scrutinizer for providing facility to the members of the by him in writing. The results shall also be immediately
Company to scrutinize the voting and remote e-voting forwarded to the BSE Limited, Mumbai.
process in a fair and transparent manner.
22. For any other queries relating to the shares of the Company,
19. The Chairman shall, at the AGM at the end of discussion on you may contact the Share Transfer Agents at the following
the resolutions on which voting is to be held, allow voting address:
with the assistance of scrutinizer, by use of “Ballot Paper” for
M/s. Ankit Consultancy Pvt. Ltd.
all those members who are present at the AGM but have not
60, Electronic Complex,
cast their votes by availing the remote e-voting facility.
Pardeshipura, Indore (M.P.) 452010
20. The Scrutinizer shall after the conclusion of voting at the Tel: 0731-4281333, 4065797/99
general meeting, will first count the votes cast at the meeting E-mail: ankit_4321@yahoo.com, info@ankitonline.com
and thereafter unblock the votes cast through remote
23. Members may also note that the Notice of the 29th AGM
e-voting in the presence of at least two witnesses not in
and the Kriti Industries (India) Ltd. Annual Report 2018-19 will
the employment of the Company and shall make, not later
be available on the Company’s website www.kritiindia.com.
than two days of the conclusion of the AGM, a consolidated
Members who require communication in physical form in
scrutinizer’s report of the total votes cast in favour or against, if
addition to e-communication, or have any other queries, may
any, to the Chairman or a person authorized by him in writing,
write to us at: cs@kritiindia.com.
EXPLANATORY STATEMENT IN RESPECT OF SPECIAL BUSINESS

PURSUANT TO SECTION 102 OF THE COMPANIES ACT, 2013
Item No. 4: greatly in the Company achieving its present position. The
Shri Shiv Singh Mehta was last re-appointed as Chairman & Company has exhibited a fair and stable performance during his
Managing Director of the Company with effect from 01st October, tenure.
2016 for a period of 5 years.
Shri Shiv Singh Mehta shall subject to superintendence, control
The Remuneration & Nomination Committee and the Board of and direction of the Board of Directors, be entrusted with
Directors at their respective meetings held on 16th May, 2019 substantial powers of management in respect of the whole of the
have unanimously recommended for revision in the remuneration affairs of the Company and shall perform such duties and exercise
payable to Shri Shiv Singh Mehta (DIN:00023523), the Chairman & such powers as have been or may be entrusted to or conferred
Managing Director of the Company (Who is also the Chairman and upon him by the Board from time to time.
Managing Director of Kriti Nutrients Ltd.) who was re-appointed
The Board of Directors of the Company considers that the re-
at the Annual General Meeting held on 11th August, 2016 for
appointment of Shri Shiv Singh Mehta as Chairman & Managing
a term of 5 years with effect from 1st Oct., 2016 to 30th Sept.,
Director will prove beneficial to the Company and accordingly
2021 for the remaining part of his tenure from 1st April, 2019 to
recommends the resolution, as set out at Item No. 4 of the Notice
30th Sept., 2021, on the payment of remuneration as proposed
convening this meeting, for your approval.
in the resolution, subject to the approval of the Members of the
Company in General Meeting. In accordance with the requirements of Schedule V to the
Companies Act, 2013, a statement providing the required
Shri Shiv Singh Mehta’s is the main promoter of the Company
information for the revision in remuneration to Shri Shiv Singh
having rich experience of the industry and he has contributed
Mehta is given hereunder:

I. General Information:
1 Nature of Industry Manufacturing of Plastic Products
2 Date or Expected date of commencement of commercial production Existing Unit since 1990
3 In case of new companies, expected date of commencement of activities as Not Applicable
per projects approved by financial institutions appearing in the prospectus
4 Financial performance based on given indicators The turnover and net profit after tax for last
three years were as follows:
(in H lakhs)
Year Revenue Net Profit
After Tax
2018-19 57113.69 661.50
2017-18 44724.59 922.46
2016-17 40779.78 871.45
5 Foreign Investments or Collaborations, if any Not Applicable
II. Information about appointee:

1 Background details Shri Shiv Singh Mehta is the main promoter of the Company having rich experience
of plastic and polymer pipes and products business. During his leadership Company
achieved new milestone in plastic pipe industry. He holds a Bachelors degree in
Engineering and a Masters degree in Management.
2 Past remuneration During FY2018-19, Mr. Shiv Singh Mehta was paid Salary of H3,50,000 per month plus
perquisites of H50,000 per month and commission within overall ceiling of 5% of the
net profits of the Company.
3 Recognition or Awards Served as past President of Indore Management Association.
Arya Chanakya Award of MP Govt. for corporate governance and social responsibilities.
4 Job Profile and its Suitability He is the Chairman & Managing Director subject to the superintendence, control and
direction of Board of Directors, entrusted with substantial powers of management
in respect of the whole of the affairs of the Company and shall perform such duties
and exercise such powers as have been or may be entrusted to or conferred upon
him by the Board from time to time. He has been associated with the business of
the Company since inception. Considering his background and experience, he is
eminently suitable to continue to hold the position of the Chairman & Managing
Director of the Company.
5 Remuneration proposed As per details contained in the Notice for the Annual General Meeting.
6 Comparative remuneration with The proposed remuneration is in line with remuneration payable to Directorial
respect to Industry Standards personnel holding similar stature/position in the Industry.
7 Any Pecuniary Relationship Besides remuneration, Shri Shiv Singh Mehta holds 2028799 (4.09%) of the Equity
Shares of the Company.
III. Other Information:
1 Reasons for loss or inadequate profit The Company reported a profit in the current year, and has been consistently earning
profits since inception, and has a strong net worth and effective capital.
2 Steps taken/ proposed to be taken for Your approval is sought by special resolution as stipulated under Part II Section II Para
improvement (A) of Schedule V to the Companies Act, 2013.
3 Expected Increase in productivity and
profits in measurable terms
IV. Disclosures:
The Remuneration details are given in the proposed resolution and Corporate Governance Report.

Item No.5: she has contributed greatly in the Company achieving its present
Smt. Purnima Mehta was last re-appointed as Whole Time Director position.
of the Company with effect from 01st July, 2016 for a period of 3
Smt. Purnima Mehta shall subject to superintendence, control and
years.
direction of the Board of Directors and shall perform such duties
The Remuneration & Nomination Committee and the Board of and exercise such powers as have been or may be entrusted to or
Directors at their respective meetings held on 16th May, 2019 have conferred upon her by the Board from time to time.
unanimously recommended for reappointment of Smt. Purnima
The Board of Directors of the Company considers that the re-
Mehta as Whole Time Director of the Company as per provisions of
appointment of Smt. Purnima Mehta as Whole Time Director will
Sections 196, 197, 203 read with Schedule V and other applicable
prove beneficial to the Company and accordingly recommends
provisions of the Companies Act, 2013 as amended from time to
the resolution, as set out at Item No. 5 of the Notice convening this
time as a for a period of five years with effect from 01st July, 2019
meeting, for your approval.
on the payment of remuneration as proposed in the resolution,
subject to the approval of the Members of the Company in In accordance with the requirements of Schedule V to the
General Meeting. Companies Act, 2013, a statement providing the required
information for the re-appointment and payment of remuneration
Smt. Purnima Mehta is having rich experience of the industry and
to Smt. Purnima Mehta is given hereunder:
I. General Information:
1 Nature of Industry Manufacturing of Plastic Products
2 Date or Expected date of commencement of commercial production Existing Unit since 1990
3 In case of new companies, expected date of commencement of activities as Not Applicable
per projects approved by financial institutions appearing in the prospectus
4 Financial performance based on given indicators The turnover and net profit after tax for last
three years were as follows:
(in H lakhs)
Year Revenue Net Profit
After Tax
2018-19 57113.69 661.50
2017-18 44724.59 922.46
2016-17 40779.78 871.45
5 Foreign Investments or Collaborations, if any Not Applicable
II. Information about appointee:

1 Background details Smt. Purnima Mehta is the promoter of the Company having rich experience of
business. During her tenure the Company achieved new milestone in progress. She
holds a Bachelors degree in Arts (Hons.) and PGDBM
2 Past remuneration During FY2018-19, Smt. Purnima Mehta was paid a salary of H2,50,000 per month plus
perquisites of H50,000 per month and a commission within overall ceiling of 3% of the
net profits of the Company.
3 Recognition or Awards Active in business management and social activities at large.
4 Job Profile and its Suitability She is the Whole Time Director subject to the superintendence, control and direction
of the Board of Directors and shall perform such duties and exercise such powers as
have been or may be entrusted to or conferred upon her by the Board from time to
time. She has been associated with the business of the Company since inception.
Considering her background and experience, she is eminently suitable to continue to
hold the position of the Whole Time Director of the Company.
5 Remuneration proposed As per details contained in the Notice for the Annual General Meeting.
6 Comparative remuneration with The proposed remuneration is in line with remuneration payable to the Directorial
respect to Industry Standards personnel holding similar stature/position in the Industry.
7 Any Pecuniary Relationship Besides remuneration, Smt. Purnima Mehta holds 125609 (0.25%) of the Equity Shares
of the Company.

III. Other Information:
1 Reasons for loss or inadequate profit The Company reported a profit in the current year, and has been consistently earning
profits since inception, and has a strong net worth and effective capital.
2 Steps taken/ proposed to be taken for Your approval is sought by special resolution as stipulated under Part II Section II Para
improvement (A) of Schedule V to the Companies Act, 2013.
3 Expected Increase in productivity and
profits in measurable terms
IV. Disclosures:
The Remuneration details are given in the proposed resolution and Corporate Governance Report.
Item No. 6 & 7: The aforesaid directors may be deemed to be interested in the
CA Manoj Fadnis (DIN 01087055) and Shri Rakesh Kalra (DIN resolution to the extent of the fee for attending the meetings
00780354) were appointed as the Independent Directors of the as may be payable and their shareholding interest, if any, in the
Company to holds office as Independent Director up to 31st Company. Save and except the above, none of the other Directors/
March, 2019 (“first term”). Key Managerial Personnel of the Company / their relatives are, in
any way, concerned or interested, financially or otherwise, in the
The Nomination and Remuneration Committee of the Board of
resolution.
Directors, on the basis of the report of performance evaluation,
has recommended for their re-appointment as the Independent Your directors recommend to pass resolutions as set out in the
Directors for a second term of 5 (five) consecutive years on the Item No. 6 to 7 by way of special resolution.
Board of the Company.
Item No. 8:
The Board, based on the performance evaluation and as per
Members are hereby informed that on the recommendation
the recommendation of the Nomination and Remuneration
of the Audit Committee, Board of Directors of your Company
Committee, considers that, given his background and experience
re-appointed Mr. S.P.S. Dangi, Cost Accountant, Indore as Cost
and contributions made by him during their tenure, the continued
Auditors of the Company for the year 2019-20 on the remuneration
association would be beneficial to the Company and it is desirable
of H30,000/-, plus applicable taxes and reimbursement of out of
to continue to avail their services as an Independent Directors.
pocket expenses at actual.
Accordingly, it is proposed to re-appoint them as Independent
Consent Cum Declaration issued by the above Auditor regarding
Directors of the Company, not liable to retire by rotation, for a
his consent and eligibility for appointment as Cost Auditor will be
second term of 5 (five) consecutive years w.e.f. 1st April, 2019 on
available for inspection of the Members at the Registered Office
the Board of the Company.
of the Company on all working days, except Saturdays, during
All the aforesaid independent directors proposed for re- business hours up to the date of the Meeting.
appointment are not disqualified as a Director in terms of Section
As per Section 148 (3) read with Rule 14 of Companies (Audit
164 of the Act and other applicable laws and has given their
and Auditors) Rules 2014, the remuneration payable to the Cost
consent to act as a Director. The Company has also received
Auditors is to be ratified by the Shareholders in General Meeting.
declaration from them that they meet the criteria of independence
Thus, the Members approval is solicited for the resolution set out
as prescribed both under Section 149(6) of the Act and under the
in Item No. 8 of the Notice by way of an Ordinary Resolution.
SEBI (LODR) Regulations, 2015. In the opinion of the Board, these
directors fulfils the conditions for appointment as an Independent None of the Directors / Key Managerial personnel/ their relatives is
Director as specified in the Companies Act, 2013 and the SEBI interested in the above resolution.
(LODR) Regulation, 2015.
They shall be paid remuneration by way of fee for attending Date: 16th May, 2019 By order of the Board,
meetings of the Board. Copy of draft letter of appointment of
Registered Office:
them setting out the terms and conditions of appointment is
Regd. Office: Mehta Chamber, 34 Siyaganj, Preeti Sharma
available for inspection by the members at the registered office
Indore-452007 Company Secretary
of the Company.

ANNEXURE
DETAILS OF DIRECTORS SEEKING APPOINTMENT/RE-APPOINTMENT/CONTINUANCE OF APPOINTMENT AT FORTHCOMING ANNUAL
GENERAL MEETING
Name of the Directors Mrs. Purnima Mehta Mr. Saurabh Singh Mehta Mr. Rakesh Kalra CA Manoj Fadnis
DIN 00023632 00023591 01087055 00780354
Date of Birth 25.05.1960 29.07.1981
Designation Whole Time Director Director Independent Director Independent Director
Date of Appointment 01.10.1999 07.02.2018 24.06.2006 24.06.2006
Qualification B.A. (Hons), PGDBM B.E., M.B.A. B.E. FCA
Expertise in specific area Accounts, Purchase, HR Administration, Mechanical Company Law,
and Administration Marketing and IT Engineering/ Business Taxation and
Strategy/Leadership Accounting
Training
List of Outside Sakam Trading Private Sakam Trading Private Kriti Nutrients Ltd., Kriti Nutrients Ltd.,
Directorship held Limited, Limited, Jamna Auto Industries Kriti Auto and
Kriti Nutrients Ltd., Kriti Nutrients Ltd., Limited, Engineering Plastics
Kriti Specialities Private Kriti Auto and Minda Stoneridge Private Limited,
Limited Engineering Plastics Instruments Limited, Yes Securities (India)
Private Limited Minda Automotive Limited,
Solutions Limited, Yes Asset Management
Automotive Axles (India) Limited
Limited Confederation of Asia
Pacific Accountants
Hong Kong (Co limited
by gurantee- nominated
by ICAI)
Chairman / Member of Chairman:- Chairman:- Chairman:- Chairman:-
the Committees of the Nil Nil 1. Audit Committee Nil
Board of Directors of the Member:- Member:- 2. Nomination and Member:-
Company 1. Audit Committee 1. Stakeholder Remuneration 1. Audit Committee
2. Stakeholder Relationship Committee 2. Nomination and
Relationship Committee 3. Independent Remuneration
Committee Directors Committee Committee
3. Corporate Social Member:- 3. Corporate Social
Responsibility 1. Stakeholder Responsibility
Relationship 4. Independent
Committee Directors Committee
5. Financial Committee
No. of Equity Shares held 1,25,609 30,423 Nil Nil

DIRECTORS‘ REPORT
Your Directors are pleased to present their 29th Annual Report on the operations of the Company together with Audited Financial
Statements for the year ended on 31st March, 2019.
1. Financial Highlights:
The summarized financial results for the year vis-a-vis the previous year are as follows: (H in lakhs)
PARTICULARS STANDALONE CONSOLIDATED
2018-19 2017-18 2018-19 2017-18
Revenue from Operations 56901.57 44424.55 58765.93 46354.96
Other Income 212.12 300.04 214.80 300.71
Total Revenue 57113.69 44724.59 58980.73 46655.67
Operating Expenses 53993.39 41500.08 55840.32 43373.76
EBIDTA 3120.30 3224.51 3140.41 3281.91
Finance Cost 1477.20 1252.94 1517.16 1301.85
Depreciation 596.29 561.83 624.63 590.90
Profit/ (Loss) before Tax 1046.81 1409.74 998.62 1389.16
Tax Expenses 385.31 487.28 397.95 469.75
Profit/ (Loss) after Tax 661.50 922.46 600.67 919.41
2. Operational Performance the forthcoming Annual General Meeting.

During the Financial Year ended on 31st March, 2019, your
Company embarked on expanding its business across
4. Change In Control
There was no change in control during the period under
new regions, resulting in turnover growth by 28.08% on a
review.
standalone basis to H56901.57 lakhs as against a turnover
of H44424.55 lakhs in the previous Financial Year. However, 5. Business Transfer
due to business development expenses that needed to be There was no transfer of business during the period under
incurred upfront, Profit after Tax declined to H661.50 lakhs as review.
against H922.46 lakhs in the previous Financial Year.
6. Deposit
On a consolidated basis your Company achieved a turnover
The Company did not receive / accept any deposits from
of H58765.93 as against a turnover of H46354.96 lakhs in the
Directors of the Company.
previous Financial Year; Profit after Tax was H600.67 lakhs
as against Profit after Tax of H919.41 lakhs in the previous 7. Auditors & their Report
Financial Year. The shareholders at their 25th Annual General Meeting (AGM)
held on 24th September, 2015 had approved the appointment
3. Dividend
of M/s. Rakesh Kumar & Associates, Chartered Accountants
Your Directors have recommended a dividend of @ 15%
(FRN: 002150C), Indore, as Statutory Auditors to hold office for
(H0.15 per equity shares of H1 each on 49603520 Equity Shares)
a period of five years from the conclusion of 25th AGM till the
for the Financial Year 2018-19 aggregating to H74.40 lakhs,
conclusion of the 30th Annual General Meeting.
payable to those Shareholders whose names appear in the
Register of Members as on the Book Closure / Record Date. The Auditors in their Audit Report did not make any adverse
This announcement is subject to the approval of members at remark, qualification or reservation.

8. Directors and Key Managerial Personnel ii) Mrs. Purnima Mehta (DIN 00023632), Whole Time
Directors Director,
During the period under review, the Members at the 28th
iii) Mr. Vinod Kumar Mittal, Chief Financial Officer (ceased
Annual General Meeting of the Company held on 31st July,
w.e.f. 9th November, 2018),
2018, pursuant to the provisions of Section 152, approved
the appointment of Mrs. Purnima Mehta (00023632), Whole iv) Mr. Kamal Kanodia, Chief Financial Officer (appointed
Time Director, who was liable to retire by rotation and being w.e.f. 10th November, 2018),
eligible offered herself for reappointment. v) Mrs. Priyanka Gupta, Company Secretary and Compliance
For the operational convenience the Company re-designated Officer (ceased w.e.f. 31st May, 2018,
Mr. Shiv Singh Mehta (DIN 00023523), Managing Director, as vi) Ms. Vibha Vyas, Company Secretary and Compliance
Chairman & Managing Director with effect from 31st July, Officer (ceased w.e.f. 20th December, 2018) and
2018.
vii) Ms. Preeti Sharma, Company Secretary and Compliance
In accordance with the provisions of the Companies Act, 2013 Officer (appointed w.e.f. 21st December, 2018).
and the Articles of Association of the Company, Mr. Saurabh
Singh Mehta (DIN 00023591), Director of the Company, is liable Board Evaluation
to retire by rotation at the ensuing Annual General Meeting The Board of Directors of the Company is committed
and, being eligible, offered himself for re-appointment. to its performance evaluation to identify strengths and
improvement areas. To that end, the Nomination and
The Board of Directors at its meeting on 16th May, 2019, passed Remuneration Committee established the process for
a resolution for a revision in the remuneration payable Shri evaluation of the performance of Directors, including
Shiv Singh Mehta (DIN:00023523) the Chairman & Managing Independent Directors, Board and its Committees. The
Director of the Company (also Chairman and Managing evaluation of performance of Executive Directors was done
Director of Kriti Nutrients Ltd.) who was re-appointed at by Independent Directors.
the Annual General Meeting held on 11th August, 2016 for
a term of five years with effect from 1st October 2016 to The Company devised a policy for the performance evaluation
30th September 2021 for the remaining part of his tenure of Independent Directors, Board, Committees and other
from 1st April, 2019 to 30th September 2021. as proposed individual Directors, which includes criteria and process for
in the resolution, subject to the approval of Members of the performance evaluation of the Non-Executive Directors and
Company in the Annual General Meeting. Executive Directors to judge the knowledge to perform the
role, time and level of participation, performance of duties,
The Board of Directors at ots meeting on 16th May 2019 professional conduct, independence etc. The appointment/
passed a resolution for the reappointment of Smt. Purnima re-appointment/ continuation of Directors on the Board shall
Mehta as Whole Time Director of the Company as per be based on the outcome of this evaluation process.
provisions of Sections 196, 197, 203 read with Schedule V and
other applicable provisions of the Companies Act, 2013 as During the year under review as per the policy for
amended from time to time for a period of three years with performance evaluation, a formal evaluation of the
effect from 01st July, 2019 on the payment of remuneration performance of Directors, including Independent Directors,
as proposed in the resolution, subject to the approval of the Board and Committees was made by Independent Directors
Members of the Company in the Annual General Meeting. and the Nomination and Remuneration Committee in their
respective meetings and the evaluation result was placed
Necessary information on the Director (s) seeking before the Board for its information and consideration.
appointment/ reappointment has been given in the Notice
of the ensuing Annual General Meeting. Meetings
During the year five Board meetings and five Audit Committee
The Company received declarations from all the Independent Meetings were convened and held. The details of these
Directors of the Company confirming that they met the meetings are given in the Corporate Governance Report. The
criteria of independence as prescribed both under Section intervening gap between the meetings was within the period
149 (6) of the Companies Act, 2013 and the SEBI Listing prescribed under the Companies Act, 2013 / SEBI (Listing
Regulations. Obligations and Disclosure Requirements) Regulations, 2015.
Key Managerial Personnel Nomination & Remuneration Policy
The following comprised Key Managerial Personnel of the
The Company has a policy for the selection and appointment
Company during the period under review:
of Directors, key managerial personnel and senior
i) Mr. Shiv Singh Mehta (DIN 00023523), Chairman & management personnel as well as for the determination of
Managing Director, their remuneration. The salient features of the Nomination &

Remuneration Policy are stated in the Corporate Governance 14. Particulars of Loans, Guarantees and Investments
Report. The details of Loans, Guarantees and Investment are given in
the notes 5 & 13 to the Financial Statements.
The Nomination & Remuneration Policy, duly approved by
the Board, has been posted on the Company’s website www. 15. Corporate Governance
kritiindia.com. The report on Corporate Governance as stipulated under
Regulation 34 (3) read with Schedule V of the SEBI (Listing
9. Subsidiary Company and Associate Company
Obligations and Disclosure Requirements) Regulations, 2015
Statement in respect of Kriti Auto & Engineering Plastics
along with the requisite certificate from the Statutory Auditor
Private Limited, a Wholly Owned Subsidiary Company under of the Company confirming compliance with the conditions
Section 129 of the Companies Act, 2013, read with Rule 5 of corporate governance is appended and forms a part of this
of the Companies (Accounts) Rules, 2014 in Form AOC-I, is report.
attached as Annexure A and forms part of this report.
16. Risk Management
10. Related Party Transactions: The Company has well-defined processes to ensure the
During the period under review, all related party transactions risks are identified and mitigation steps are put in place. The
were entered on an arm’s length basis and in the ordinary Company’s Risk Management process focuses on ensuring
course of business. There were no materially significant that these risks are identified on a timely basis and reasonably
related party transactions made by the Company with addressed.
Promoters, Directors, key managerial personnel or other
The Audit Committee oversees financial risks and controls.
designated persons, which may have a potential conflict with
Major risks are identified by the businesses and functions
the interests of the Company at large. and these are systematically addressed through mitigating
Separate disclosures as per regulation 34 (3) and 53 (f) of SEBI actions on a continuing basis.
(Listing obligations and Disclosure Requirement) Regulations,
17. Vigil Mechanism / Whistle Blower Policy
2015 were made in the report. AOC-II is attached as Annexure
The Company has established a Vigil Mechanism that enables
B and forms a part of this Report.
the Directors and Employees to report genuine concerns. The
The policy on Related Party Transactions duly approved by Vigil Mechanism provides for
the Board on the recommendation of the Audit Committee (a) adequate safeguards against victimization of persons
has been posted on the Company’s website www. kritiindia. who use the Vigil Mechanism; and
com. (b) direct access to the Chairperson of the Audit Committee
of the Board of Directors of the Company in appropriate
11. Corporate Social Responsibility:
or exceptional cases.
The Annual Report on CSR activities is attached as Annexure
C and forms a part of this Report. The salient features of CSR Details of the Vigil Mechanism Policy are made available on
policy is stated in Annual Report on CSR activities. the Company’s website www. kritiindia.com and have also
been provided in the Corporate Governance Report forming
The policy on CSR duly approved by the Board has been
part of this Report.
posted on the Company’s website www.kritiindia.com.
18. Directors’ Responsibility Statement
12. Particulars of Employees and Related Disclosure: Pursuant to Section 134(3)(c) read with Section 134(5) of the
The information required pursuant to Section 197(12) of the Companies Act, 2013, the Board of Directors, to the best of
Companies Act, 2013 read with Rule 5 of The Companies their knowledge and ability, confirm:-
(Appointment and Remuneration of Managerial Personnel)
a) That in the preparation of the annual financial statements
Rules, 2014 as amended in respect of employees of the for the year ended 31st March, 2019, the applicable
Company forming part of Directors’ Report is given in accounting standards have been followed along with
Annexure D to this Report. proper explanation relating to material departures, if any;
13. Conservation of Energy, Technology Absorption, b) That the Directors have selected such accounting
Foreign Exchange Earnings & Outgo policies and applied them consistently and have made
The information on conservation of energy, technology judgment and estimates that are reasonable and
absorption and foreign exchange earnings and outgo 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
stipulated under Section 134(3)(m) of the Companies Act,
ended 31st March, 2019 and of the statement of profit
2013 read with Rule 8 of The Companies (Accounts) Rules,
and loss of the Company for that period;
2014, is attached as Annexure E and forms part of this report.

c) That proper and sufficient care has been taken for During the Financial Year, no frauds were reported by auditors
the maintenance of adequate accounting records in in terms of section 143 (12) of the Companies Act, 2013.
accordance with the provisions of the Companies Act,
2013 for safeguarding the assets of the Company and for 20. Extract of Annual Return
preventing and detecting fraud and other irregularities; The extract of the Annual Return in Form MGT - 9 under
section 92 of the Companies Act 2013 for the financial Year
d) That the annual financial statements have been prepared
ending 31st March, 2019 is annexed hereto as Annexure F
on a going concern basis;
and forms a part of this Report.
e) That proper internal financial controls were in place
and that the financial controls were adequate and were Cost Auditor
operating effectively. In pursuance of Section 148 of the Companies Act, 2013, your
Directors appointed Mr. SPS Dangi, Cost Accountant, Indore,
f) That the Directors have devised proper systems to
to conduct the Audit of the Cost Accounting records for the
ensure compliance with the provisions of all applicable
financial year 2018-19.
laws and that such systems are adequate and operating
effectively. The Board of Directors of the Company on the
recommendation of the Audit Committee, at its meeting held
19. Internal Control and their Adequacy: on 16th May, 2019 re-appointed Mr. SPS Dangi as the Cost
The Board of Directors of the Company is responsible for Auditors of the Company, to conduct the Audit of the Cost
ensuring that internal financial controls have been established Accounting records for the financial year 2019-20. As required
in the Company and that such controls are adequate and under Section 148 (3) of the Companies Act, 2013 read with
operating effectively. The Company has laid down certain Rule 14 of the Companies (Audit and Auditors) Rules, 2014,
guidelines and processes which enables implementation of the remuneration payable to the Cost Auditors is to be
appropriate internal financial controls across the organisation. ratified by the shareholders. Therefore, the Board of Directors
Such internal financial controls encompass policies and recommend the remuneration payable to Mr. SPS Dangi, Cost
procedures adopted by the Company for ensuring orderly Auditors for the financial year 2019-20 for the ratification by
and efficient conduct of business, including adherence to its the Members in the ensuing Annual General Meeting.
policies, safeguarding of its assets, prevention and detection
of frauds and errors, the accuracy and completeness of 21. Secretarial Auditor
accounting records and the timely preparation of reliable Pursuant to the provisions of Section 204 of the Companies Act,
financial information. 2013 and the Companies (Appointment and Remuneration
of Managerial Personnel) Rules, 2014 the Board appointed
The Statutory Auditors in their audit report opined that these
M/s. Kaushal Agrawal & Co., Company Secretaries, Indore, to
controls are operating effectively. The Internal Audit team
conduct Secretarial Audit for the financial year 2018-19.
develops an audit plan based on the risk profile of the business
activities. The annual internal audit plan is approved by the The Board of Directors of the Company on the
Audit Committee, which also reviews compliance to the plan. recommendation of the Audit Committee, at its meeting held
The Internal Audit team monitors and evaluates the efficacy on 16th May, 2019 has appointed Kaushal Agrawal & Co. to
and adequacy of internal control systems in the Company, its conduct Secretarial Audit for the financial year 2019-20.
compliance with operating systems, accounting procedures
The Secretarial Audit Report for the financial year ended 31st
and policies at all locations of the Company. Based on the report
March, 2019 in Form MR-3 is attached as Annexure G and
of internal audit function, process owners undertake corrective
forms part to this Report. The Secretarial Audit Report does
action(s) in their respective area(s) and thereby strengthen the
not contain any qualification, reservation or adverse remark.
controls. Significant audit observations and corrective action(s)
thereon are presented to the Audit Committee. 22. Significant and Material Orders Passed by the
Regulators or Courts or Tribunals
The Audit Committee reviews the reports submitted by the
No significant or material orders were passed by the
Internal Auditors.
Regulators or Courts or Tribunals, which impact the going
The Board implemented systems to ensure compliance of all concern status and Company’s operations in future.
applicable laws. These systems were effective and operative.
At every quarterly interval, the Managing Director and the 23. Investor Education and Protection Fund (IEPF)
Company Secretary place before the Board a certificate certifying An amount of H207268 in respect of unpaid/unclaimed
compliance of laws and regulations as applicable to the business dividend declared in FY 2010-2011 was transferred to the
and operations of the Company after obtaining confirmation Investor Education and Protection Fund by the Company
from all business unit and functional heads responsible for during the year ended 31st March 2019.
compliance of such applicable laws and regulations. Some 817571 equity shares of face value of H1 each, in respect

of unpaid/unclaimed dividend declared in FY 2009-2010, b) There was no change in the share capital of the Company.
and 74843 equity shares of face value of H1 each, in respect
c) The Company had not issued equity shares with differential
of unpaid/unclaimed dividend declared in FY 2010-2011
rights as to dividend, voting or otherwise.
(aggregating to 892414 Equity Shares) has been transferred
to the IEPF. d) The Company had not issued shares (including sweat equity
shares) to employees of the Company under any scheme.
An amount of H122635.45 has been transferred to IEPF in
respect of dividend declared on the shares transferred to the e) Neither the Managing Director nor the Whole-time Directors
IEPF. of the Company receive any remuneration or commission
from its subsidiary.
The details of the nodal officer appointed by the Company
under the provisions of IEPF is available on the Company’s f) The Company has complied with the applicable Secretarial
website at www.kritiindia.com Standards under the Companies Act, 2013.
24. Sexual Harassment of Women at the Workplace g) The cost records as specified by the Central Government
(Prevention, Prohibition & Redressal) Act, 2013: under sub-section (1) of section 148 of the Companies
The Company has complied with provisions relating to the Act, 2013, is required to be maintained by the Company
constitution of Internal Complaints Committee under the and accordingly such accounts and records are made and
Sexual Harassment of Women at Workplace (Prevention, maintained.
Prohibition and Redressal) Act, 2013. Internal Complaints h) There have been no material changes and commitments
Committee (ICC) has been set up to redress complaints affecting the financial position of the Company which have
received regarding sexual harassment. All employees occurred between financial year ended on 31st March, 2019,
(permanent, contractual, temporary, trainees) are covered to which the financial statements relate and the date of this
under this policy. The following is a summary of sexual report.
harassment complaints received and disposed of during the
year: 26. Acknowledgement
Your Directors place on record, their sincere appreciation and
Sr. Particulars No. of gratitude for all the co-operation extended by Government
No. Complaints Agencies, Bankers, Financial Institutions, Business Associates
1. Number of complaints pending at the - and Shareholders. The Directors also record their appreciation
beginning of the year for the dedicated services rendered by all the Executive Staff
2. Number of complaints received during - and Workers of the Company at all levels in all units and for
the year their valuable contribution in the working of the Company
3. Number of complaints disposed off -
during the year
4. Number of cases pending at the end of -
the year.
For and on behalf of the Board of Directors
25. General
Your Directors state that during the year under review:
Shiv Singh Mehta
a) The Company had no deposits covered under Chapter V of Date: 16th May, 2019 Chairman & Managing Director
the Companies Act, 2013. Place: Indore (DIN: 00023523)

ANNEXURE A
FORM AOC-I
(Pursuant to first proviso to sub-section (3) of Section 129 read with rule 5 of Companies (Accounts) Rules, 2014)
STATEMENT CONTAINING SALIENT FEATURES OF THE FINANCIAL STATEMENT OF
SUBSIDIARIES/ASSOCIATE COMPANIES/JOINT VENTURES AS ON 31.03.2019
Part “A”: Subsidiaries

(Information in respect of each subsidiary to be presented with amounts in H)
Sr. No. Particulars

1. Name of the subsidiary Kriti Auto Engineering & Plastics Private Limited
2. Reporting period for the subsidiary concerned, if different from the NA
holding company's reporting period
3. Reporting currency and Exchange rate as on the last date of the relevant NA
financial year in the case of foreign subsidiaries.
4. Share capital Authorized: 50000000
Paid up: 38850000
5. Reserves & surplus (1015933)
6. Total assets 136760722
7. Total Liabilities 136760722
8. Investments -
9. Turnover including other income 186703600
10. Profit before taxation (4822292)
11. Provision for taxation 1263646
12. Profit after taxation (6085938)
13. Proposed Dividend -
14. % of shareholding 100
15. Names of subsidiaries which are yet to commence operations -
16. Names of subsidiaries which have been liquidated or sold during the year -
Part “B”: Associates and Joint Ventures

Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to Associate Companies and Joint Ventures
NOT APPLICABLE
The Company do not have any Associates and Joint Ventures as on 31st March, 2019.
Sr. No. Particulars
1. Names of associates or joint ventures which are yet to commence -
operations
2. Names of associates or joint ventures which have been liquidated or sold -
during the year

ANNEXURE B
FORM AOC-II
(Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014)
FORM FOR DISCLOSURE OF PARTICULARS OF CONTRACTS/ARRANGEMENTS ENTERED INTO BY THE COMPANY
WITH RELATED PARTIES REFERRED TO IN SUBSECTION (1) OF SECTION 188 OF THE COMPANIES ACT, 2013
INCLUDING CERTAIN ARMS LENGTH TRANSACTIONS UNDER THIRD PROVISO THERETO
1. DETAILS OF CONTRACTS OR ARRANGEMENTS OR TRANSACTIONS NOT AT ARM’S LENGTH BASIS:

Your Company has not entered into any contract or arrangement or transaction with its related parties which is not at arm’s length
during Financial Year 2018-19.
2. DETAILS OF MATERIAL CONTRACTS OR ARRANGEMENT OR TRANSACTIONS AT ARM’S LENGTH BASIS:

There are no material contracts or arrangement or transactions with related parties made by the Company as per explanation
provide in Regulation 23 of SEBI (LODR), 2015.As per Sec 188 of Companies Act 2013 Disclosure of Related party transaction are as
follows :
Nature of contracts / Duration of Salient terms of Date(s) of approval by

arrangements the contracts / the contracts or the Board
arrangements arrangements or
transactions including
the value, if any:
Kriti Nutrients Ltd. Purchase Export Ongoing Transactions were entered into, in the ordinary
incentive License course of business and on arm’s length basis
Kriti Nutrients Ltd. Sale of Consumable Ongoing Transactions were approved by the Board in their
Item meetings held on:
Kriti Nutrients Ltd. Purchase of Ongoing 16.05.2018
Consumable Item 31.07.2018
Sakam Trading Pvt. Ltd. Rent Paid Ongoing 25.10.2018
Kriti Auto Engineering Purchase of Ongoing 24.01.2019
Pvt. Ltd. Consumable Item 18.02.2019
Note
1. Approval has been taken for related party transaction
2. Advance Paid -NIL

ANNEXURE C
ANNUAL REPORT ON
CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES
1. A brief outline of the Company’s CSR policy, including d. fix the timelines, monitoring and implementation
overview of projects or programs proposed to be mechanism with respect to CSR activities.
undertaken and a reference to the web-link to the The CSR Policy of the Company is available on Company
CSR policy and projects or Programme: Website at: www. kritiindia.com.
The Corporate Social Responsibility Policy (“Policy”) of the
2. The Composition of CSR Committee is as follows:
Company is in line with the provisions of Section 135 of the
I. Mr. Shiv Singh Mehta, Chairman
Companies Act 2013 (“Act”) read with Schedule VII to the Act
and the Companies (Corporate Social Responsibility Policy) II. Mrs. Purnima Mehta, Member
Rules, 2014 (“Rules”). III. Mr. Rakesh Kalra, Member
The Policy lays down the guiding principles that shall be 3. Average Net Profit of the Company for last three
applicable to the CSR projects / programme / activities of the financial years: H1549.92 lakhs
Company.
4. Prescribed CSR Expenditure
The Board of Directors approved this Policy, on the basis of (two percent of the average Net Profit of the Company for
the recommendations of the CSR Committee. the last three financial years) : H31.00 lakhs
Objective of the Policy: 5. Details of CSR expenditure for the financial year
a. Lay down the broad guidelines for the Company to 2018-19:
undertake its CSR projects / programme / activities; I. Total amount spent during the financial year : H1.60
b. set up the approach of the Company towards the CSR lakhs
initiatives; II. Amount unspent, if any : H29.40 lakhs
c. define the CSR activities that the Company undertakes III. Manner in which the amount spent during the
to carry out and financial year 2018-19 is detailed below:
Sr. Projects / Sector in Location Amount Outlay Amount Spent Cumulative Amount spent:
No. Activities which the (Budget) Project on the project Expenditure *Direct or through
Project is or Programs or programs upto reporting implementing
covered Wise period agency
District (H in lakhs) (H in lakhs) (H in lakhs) (H in lakhs)
1. Health check- Health Care Indore 1.50 1.50 1.50
up camps
31.00
2. Environment Environmental Indore 0.10 0.10 0.10
day programs Sustainability
6. In case the Company has failed to spend the two 7. Responsibility statement of the CSR Committee that
per cent of the average net profit of the last three the implementation and monitoring of CSR Policy, is
financial years or any part thereof, the Company shall in compliance with CSR objectives and Policy of the
provide the reasons for not spending the amount in Company:
its Board report: The CSR Committee affirms that the implementation and
The Company endeavored to ensure full utilization of the monitoring of CSR Policy is in compliance with the CSR Policy
allocated CSR budget. The CSR activities are scalable with few and Objectives of the Company.
new initiatives that may be considered in future and moving

forward the Company will endeavor to spend the amount on
Date: 16th May, 2019 Shiv Singh Mehta
CSR activities in accordance with the statutory requirements.
Place: Indore Chairman - CSR Committee

ANNEXURE D
INFORMATION PURSUANT TO SECTION 197(12)
OF THE COMPANIES ACT, 2013 READ WITH RULE 5 OF THE COMPANIES
(APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) RULES, 2014 AS AMENDED AND FORMING PART
OF THE DIRECTORS’ REPORT FOR THE YEAR ENDED 31ST MARCH, 2019.
1. The ratio of remuneration of each Director to the median remuneration of the employees of the Company for the financial year
2018-19:
Sr. No. Name of Directors Ratio
1. Mr. Shiv Singh Mehta 37.00
2. Mrs. Purnima Mehta 22.92
3. Mr. Saurabh Singh Mehta 0.59
4. Mr. Rakesh Kalra 0.62
5. CA Manoj Fadnis 0.62
6. Mr. Chandrasekharan Bhaskar 0.59
2. The percentage increase in remuneration of each Director, Chief Financial Officer, Company Secretary in the financial year
2018-19:
Sr. No. Name of Directors/KMP Designation % increase (Decrease)
in Remuneration Paid
1 Mr. Shiv Singh Mehta Chairman & Managing Director (18.20)
2 Mrs. Purnima Mehta Whole Time Director (17.88)
3 Mr. Saurabh Singh Mehta Director -
4 Mr. Rakesh Kalra Independent Director -
5. CA Manoj Fadnis Independent Director -
6. Mr. Chandrasekharan Bhaskar Independent Director -
7. Mr. Vinod Kumar Mittal* Chief Financial Officer -
(upto 9th November, 2019)
8. Mr. Kamal Kanodia** Chief Financial Officer -
(w.e.f. 10th November, 2019)
7. Mrs. Priyanka Gupta* Company Secretary and Compliance Officer -
(upto 31st May, 2018)
8. Ms. Vibha Vyas* Company Secretary and Compliance Officer -
(upto 20th December, 2018)
9. Ms. Preeti Sharma** Company Secretary and Compliance Officer -
(w.e.f 21st December, 2018)
* Mr. Vinod Kumar Mittal (Chief Financial Officer), Mrs. Priyanka Gupta (Company Secretary & Compliance Officer) and Ms. Vibha Vyas (Company Secretary &
Compliance Officer) resigned during the Financial Year, hence percentage increase is not comparable, and as such this section is not applicable
** Mr. Kamal Kanodia (Chief Financial Officer) and Ms. Preeti Sharma (Company Secretary & Compliance Officer) appointed during the Financial Year, hence
percentage increase is not comparable, and as such this section is not applicable
3. The percentage increase in the median remuneration of academic background, industry trends, economic situation
employee(s) in the financial year 2018-19: 8% and future growth prospects etc. besides Company’s
performance. There were no exceptional circumstances for
4. The number of permanent employees on the role of the
the increase in managerial remuneration in comparison to
Company as on 31st March, 2019: 561
remuneration of other employees.
5. Average percentile increase already made in the salaries
4. The remuneration paid to the Directors is as per the
of employees other than the managerial personnel in the
Remuneration Policy of the Company.
last financial year and its comparison with the percentile
increase in the managerial remuneration and justification 5. Statement of Particulars of Employees as per Section
thereof and point out if there are any exceptional 197 of The Companies Act, 2013 read with rule 5(2) and
circumstances for increase in the managerial remuneration: (3) of the Companies (Appointment and Remuneration
of Managerial Personnel) Rules, 2014 as amended, and
The increase in remuneration is not solely based on Company’s
forming part of the Directors’ Report for the year ended
performance but also includes various other factors like
31st March, 2018: Not Applicable
individual performance, experience, relevant expertise, skills,

ANNEXURE E
PARTICULARS OF ENERGY CONSERVATION,
TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
AS PER SECTION 134 (3) (M) OF THE COMPANIES ACT, 2013 AND RULE 8 OF THE
COMPANIES (ACCOUNTS) RULES, 2014.
A. Conservation Of Energy 2. Discussed on the projects of replacement of
1) Steps taken or impact on conservation of energy: conventional heating system with induction/
1. Installation of VFD for vacuum pump resulting in infrared heating systems to improve the
energy saving of approx. 70%. productivity with efficient and latest technologies
with the reduction in specific energy consumption.
2. Automation in RPVC for water supply resulting in
Implemented induction heaters in more than 50%
saving of energy by maintaining constant flow.
machinery while other is in process.
3. Automation of Compressed Air System in HDPE
3. Procured latest machines where the process is linear
plant resulting in energy saving approx. of 10%
instead of Rotary during the year under review to
4. LED Installed in most of the areas by replacing improve socketing process resulting in improved
conventional fittings. quality of socket.
5. Automation of cooling tower fan to save energy in 2) Technology imported during the last three years
suitable ambient conditions. reckoned from beginning of the financial year:
6. Modification of water line and addition of cooling During the last three years reckoned from beginning of
tower to reduce chiller power consumption. the financial year, the flowing technology imported:
7. Installation of induction heater on 09 RPVC 1. Material Recycling Plant
Machines resulting in energy saving of approx. 30%
3) Expenditure incurred on Research and Development:
8. Modification of RPVC Pipe lifter to reduce the travel Nil
time and energy saving.
C. Foreign Exchange Earning & Outgo
2) Steps taken by the Company for utilising alternate
Sr. Particulars Amount (H in lakhs)
sources of energy:
No. earned/spent in FY
1. Approx. 36 lakhs unit generated from solar power
2018-19
by using open power supply.
1. Foreign Exchange earned in -
2. Proposal for installing PV Panels at roof top is under terms of Actual Inflows
consideration.
2. Foreign Exchange spent in terms 9138.93
3) Capital investment on energy conservation of Actual Outflows
equipment: Approx H20 lakhs
B. Technology Absorption
1) Efforts made towards technology absorption:
1. Visited Plast India held at Gandhinagar to improve
the process using latest technologies.

ANNEXURE F
FORM NO. MGT-9
EXTRACT OF ANNUAL RETURN
as on the financial year ended on 31st March, 2019
[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Management and Administration) Rules, 2014]
I. REGISTRATION AND OTHER DETAILS:

i) CIN L25206MP1990PLC005732
ii) Registration Date 12th March, 1990
iii) Name of the Company Kriti Industries (India) Limited
iv) Category/Sub-Category of the Company Company having Share Capital
v) Address of the Registered office and Mehta Chambers, 34-Siyaganj, Indore-452007,
contact details Tel. No. 0731-2719126
E mail id: cs@kritiindia.com
Website: www.kritiindia.com
vi) Whether Listed Company Yes
vii) Name, Address and Contact details of Ankit Consultancy Pvt. Ltd,
Registrar and Transfer Agent if any Plot No. 60, Electronic Complex, Pardeshipura, Indore- 452010
Tel. No. 0731-4281333, 4065797/99
E mail id: ankit4321@yahoo.com, info@ankitonline.com
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:-
Sl. Name and Description of main products / services NIC Code of the % to total turnover
No. Product/ service of the Company
1 Manufacture of other plastics products n.e.c. 22209 100%
III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES:

Sl. NAME AND ADDRESS OF THE COMPANY CIN/GLN HOLDING/ SUBSIDIARY/ % of shares Applicable
No. ASSOCIATE held
1 Sakam Trading Pvt. Ltd. U65993MP1986PTC003517 Holding 52.10 2(46)
2 Kriti Auto & Engineering Plastics Pvt. Ltd. U25206MP2007PTC019323 Subsidiary 100.00 2(87)
IV. SHARE HOLDING PATTERN (EQUITY SHARE CAPITAL BREAKUP AS PERCENTAGE OF TOTAL EQUITY):
1. Category-wise Share Holding:
Category of No. of Shares held at the beginning of the year No. of Shares held at the end of the year %
Shareholder (As on 01.04.2018) (As on 31.03.2019) Change
Demat Physical Total % of Total Demat Physical Total % of Total during
Shares Shares the year
A. Promoter &
Promoter Group
(1) Indian
a) Individual / HUF 2304847 - 2304847 4.65 2304847 - 2304847 4.65 0.00
b) Central Govt. - - - - - - - - -
c) State Govt.(s) - - - - - - - - -
d) Bodies Corporate 30312931 - 30312931 61.11 30332466 - 30332466 61.15 0.04
e) Banks / FI - - - - - - - - -
f) Any Other - - - - - - - - -
Sub-Total (A)(1): 32617778 - 32617778 65.76 32637313 - 32637313 65.80 0.04

Category of No. of Shares held at the beginning of the year No. of Shares held at the end of the year %
Shareholder (As on 01.04.2018) (As on 31.03.2019) Change
Demat Physical Total % of Total Demat Physical Total % of Total during
Shares Shares the year
(2) Foreign
a) NRIs - Individuals - - - - - - - - -
b) Other - Individuals - - - - - - - - -
c) Bodies Corporate - - - - - - - - -
d) Banks / FI - - - - - - - - -
e) Any Other - - - - - - - - -
Sub-Total (A)(2) - - - - - - - - -
Total Shareholding of 32617778 - 32617778 65.76 32637313 - 32637313 65.80 0.04
Promoters (A) = (A)
(1)+(A)(2)
B. Public
Shareholding
1 Institutions
a) Mutual Funds - - - - - - - - -
b) Banks / FI 5600 - 5600 0 1681 - 1681 0 0.00
c) Central Govt - - - - - - - - -
d) State Govt(s) - - - - - - - - -
e) Venture Capital - - - - - - - - -
Funds
f) Insurance - - - - - - - - -
Companies
g) FIIs - - - - - - - - -
h) Foreign Venture - - - - - - - - -
Capital Funds
i) Others (specify) - - - - - - - - -
Sub-total (B)(1):- 5600 - 5600 0 1681 - 1681 0 0.00
2. Non- Institutions
a) Bodies Corp.
i) Indian 970986 17600 988586 1.99 914774 4800 919574 1.85 (0.14)
ii) Overseas - - - -
b) Individuals
i) Individual 6060872 2791280 8852152 17.85 6714097 1521680 8235777 16.60 (1.25)
shareholders holding
nominal share capital
upto H2 lakh
ii) Individual 6622369 - 6622369 13.35 6377369 - 6377369 12.86 (0.49)
shareholders holding
nominal share capital
in excess of Rs 2 lakh
c) Others (NRI & OCB) 479928 - 479928 0.97 530984 - 530984 1.07 0.10
d) Clearing Member 37124 - 37124 0.07 8408 - 8408 0.02 (0.05)
e) IEPF, MCA - - - - 892414 - 892414 1.80 1.80
Sub-total (B)(2):- 14171279 2808880 16980159 34.23 15438046 15442840 16964526 34.20 (0.03)
Total Public 14176879 2808880 16985759 34.24 15439727 15442840 16966207 34.20 (0.04)
Shareholding (B)=(B)
(1)+ (B)(2)
C. Shares held by - - - - - - - - -
Custodian for GDRs
& ADRs
Grand Total(A+B+C) 46794640 2808880 49603520 100.00 48077040 1526480 49603520 100.00 0.00

2. Shareholding of Promoters
Sl. Shareholder’s Name Shareholding at the beginning of the Shareholding at the end of the year %
No. year (As on 01.04.2018) (As on 31.03.2019) change
No. of % of total %of Shares No. of % of total %of Shares in share
Shares Shares Pledged / Shares Shares Pledged / holding
of the encumbered of the encumbered during
Company to total Company to total the year
shares shares
1 Sakam Trading Pvt. Ltd. 25843673 52.10 - 25843673 52.10 - -
2 Chetak Builders Pvt. Ltd. 4469258 9.01 - 4488793 9.05 - 0.04
3 Mr. Shiv Singh Mehta 2028799 4.09 - 2028799 4.09 - -
4 Mrs. Purnima Mehta 125592 0.25 - 125609 0.25 - -
5 Mrs. Raj Kumari Kothari 83280 0.17 - 83280 0.17 - -
6 Mrs. Devki Mehta Hirawat 36736 0.07 - 36736 0.07 - -
7 Mr. Saurabh Singh Mehta 30423 0.06 - 30423 0.06 - -
Total 32617761 65.76 - 32637313 65.80 - 0.04
3. Change in Promoters’ Shareholding (please specify, if there is no change)

Particular Shareholding at the beginning of the year Cumulative Shareholding during the year
(As on 01.04.2018)
No. of shares % of total shares of No. of shares % of total shares of
the Company the Company
At the beginning of the year 32617778 65.76 32617778 65.76
Increase / Decrease in Promoters 19535 0.04 - -
Shareholding during the year
At the End of the year 32637313 65.80 32637313 65.80
4. Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs):
Sl. Name of Shareholders Shareholding at the beginning Shareholding at the end of the
No. of the year (As on 01.04.2018) year (As on 31.03.2019)
No. of Shares % of total No. of Shares % of total
shares of the shares of the
Company Company
1. Mr. Pravin Kumar Kasliwal 1401407 2.83 1401407 2.83
2. Mr. Bhavesh Shah 1197329 2.41 1197329 2.41
3. Investor Education and Protection Fund Authority - - 892414 1.80
4. Mr. Rahul Chandrasingh Mehta 683958 1.38 683958 1.38
5. Chartered Finance and Leasing Limited 747397 1.51 747397 1.51
6. Ms. Jyoti Kasliwal 661737 1.33 661737 1.33
7. Ms. Varsha Bhavesh Shah 445615 0.90 445615 0.90
8. Ms. Sheetal Rahul Mehta 416000 0.84 416000 0.84
9. Mr. Sanjay Kothari 400000 0.81 400000 0.81
10. Ms. Juhi Singhvi 378411 0.76 378411 0.76
Total 6164869 12.43 7057283 14.23

5. Shareholding of Directors and Key Managerial Personnel
Sl. Name of Shareholders Shareholding at the beginning Shareholding at the end of the
No. of the year (As on 01.04.2018) year (As on 31.03.2019)
No. of Shares % of total No. of Shares % of total
shares of the shares of the
Company Company
1. Mr. Shiv Singh Mehta, Chairman & Managing Director 2028799 4.09 2028799 4.09
2. Mrs. Purnima Mehta, Whole-time Director 125592 0.25 125609 0.25
3. Mr. Saurabh Singh Mehta, Director 30423 0.06 30423 0.06
4. Mr. Rakesh Kalra, Independent Director - - - -
5. CA Manoj Fadnis, Independent Director - - - -
6. Mr. Chandrasekharan Bhaskar Independent, Director - - - -
7. Mr. Vinod Kumar Mittal, Chief Financial Officer 5 - 5 -
(ceased w,e,f 9th November, 2018)
8. Mr. Kamal Kanodia, Chief Financial Officer - - - -
(appointed w.e.f 10th November, 2018)
9. Mrs. Priyanka Gupta, Company Secretary & Compliance 5 - 5 -
Officer (Ceased w.e.f. 31st May, 2018)
10. Mr. Vibha Vyas, Company Secretary & Compliance Officer - - - -
(Ceased w.e.f. 20th December, 2018)
11. Ms. Preeti Sharma, Company Secretary & Compliance - - - -
Officer (appointed w.e.f. 21st December, 2018)
V. INDEBTEDNESS:
Indebtedness of the Company including interest outstanding/accrued but not due for payment (H in lakhs)
Particular Secured Loans Unsecured Deposits Total
excluding Loans Indebtedness
deposits
Indebtedness at the beginning of the financial year (01.04.2018)
i) Principal Amount 5361.18 996.52 - 6357.70
ii) Interest due but not paid - - - -
iii) Interest accrued but not due - - - -
TOTAL (i + ii + iii) 5361.18 996.52 6357.70
Change in Indebtedness during the financial year
Addition 821.39 1249.92 - 2071.31
Reduction - - - -
Net Change 821.39 1249.92 - 2071.31
Indebtedness at the end of the financial year (31.03.2019)
i) Principal Amount 6182.57 2246.44 - 8429.01
ii) Interest due but not paid - - - -
iii) Interest accrued but not due - - - -
TOTAL (i + ii + iii) 6182.57 2246.44 - 8429.01

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
A. Remuneration to Managing Director, Whole-time Directors and/or Manager: (H in lakhs)
Sl. Particulars of Remuneration Mr. Shiv Singh Mehta Mrs. Purnima Mehta Total
No. Chairman & Managing Whole Time Director Amount
Director
1. Gross Salary
(a) Salary as per provisions contained in section 17(1) of 40.32 26.88 67.20
the Income-tax Act, 1961
(b) Value of perquisites u/s 17(2) of Income-tax Act, 1961 6.00 6.00 12.00
(c) Profits in lieu of salary under section 17(3) of Income- - - -
tax Act, 1961
2. Stock Option - - -
3. Sweat Equity - - -
4. Commission
- as % of Profits 12.20 3.15 15.35
Total (A) 58.52 36.03 94.55
B. Remuneration to other Directors: (H in lakhs)

Sl. Particulars of Remuneration Name of Directors Total
No. Amount
1. Independent Directors Mr. Rakesh Kalra CA Manoj Fadnis Mr. Chandrasekharan
Bhaskar
Fee for attending Board/ Committee meetings 1.05 1.05 1.00 3.10
Commission - - - -
Others, please specify - - - -
Total (1) 1.05 1.05 1.00 3.10
2. Other Non-Executive Directors Mr. Saurabh Singh Mehta
Fee for attending Board/ Committee meetings 1.00 1.00
Commission - -
Others, please specify - -
Total (2) 1.00 1.00
Total (B)=(1+2) 4.10
Total Managerial Remuneration(A+B) 105.85
Overall Ceiling as per the Act Being 11% of the Net Profits of the Company calculated as per Section 198 of the
Companies Act, 2013) and for Sitting Fee H1.00 Lakh per meeting of the Board
Audit Committee Meetings.

C. Remuneration To Key Managerial Personnel Other Than MD/Manager/WTD (H in lakhs)
Sl. Particulars of Remuneration Mr. Vinod Mr. Kamal Mrs. Priyanka Ms. Vibha Vyas Ms. Preeti Total
No. Kumar Mittal Kanodia Gupta Company Sharma Amount
Chief Financial Chief Financial Company Secretary Company
Officer Officer Secretary (upto 20.12.18) Secretary
(upto 09.11.18) (w.e.f. 10.11.18) (upto 31.05.18) (w.e.f 21.12.18)
1. Gross Salary
(a) Salary as per provisions 16.20 15.03 0.56 0.55 0.38 32.72
contained in section 17(1)
of the Income-tax Act, 1961
(b) Value of perquisites u/s - - - - - -
17(2) of Income-tax Act,
1961
(c) Profits in lieu of salary under - - - - - -
section 17(3) of Income- tax
Act, 1961
2. Stock Option - - - - - -
3. Sweat Equity - - - - - -
4. Commission
- as % of Profits - - - - - -
- others, specify - - - - - -
Total (A) 16.20 15.03 0.56 0.55 0.38 32.72
VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:

Type Section of the Brief Details of Authority Appeal made,
Companies Act Description Penalty / [RD / NCLT / if any (give
Punishment / COURT] details
Compounding
fees imposed
A. COMPANY / DIRECTORS / OTHER OFFICERS IN DEFAULT
Penalty - - - -
Punishment - - - -
Compounding -
Shiv Singh Mehta

Date: 16th May, 2019 Chairman & Managing Director
Place: Indore (DIN: 00023523)

ANNEXURE G
CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS
(Pursuant to Regulation 34(3) and Schedule V Para C clause (10)(i) of the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015)
To,
The Members of
Kriti Industries (India) Limited,
CIN: L25206MP1990PLC005732
Mehta-Chamber34, Siya Ganj, Indore MP-452007.
I have examined the relevant registers, records, forms, returns and disclosures received from the Directors of Kriti Industries (India)
Limited, having CIN L25206MP1990PLC005732 and having registered office at Mehta-Chamber34, Siya Ganj, Indore MP-452007
(hereinafter referred to as ‘the Company’), produced before me by the Company for the purpose of issuing this Certificate, in accordance
with Regulation 34(3) read with Schedule V Para-C Sub clause 10(i) of the Securities Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015.
In my opinion and to the best of my information and according to the verifications (including Directors Identification Number (DIN)
status at the portal www.mca.gov.in) as considered necessary and explanations furnished to me by the Company & its officers, I hereby
certify that none of the Directors on the Board of the Company as stated below for the Financial Year ending on 31st March, 2019 have
been debarred or disqualified from being appointed or continuing as Directors of companies by the Securities and Exchange Board of
India, Ministry of Corporate Affairs or any such other Statutory Authority.
Sr. No. Name of Director DIN/PAN Date of appointment in Company

1. Shiv Singh Mehta 00023523 01/10/2010
2. Saurabh Singh Mehta 00023591 07/02/2018
3. Purnima Mehta 00023632 01/10/1999
4. Rakesh Kalra 00780354 24/06/2006
5. Manoj Fadnis 01087055 24/06/2006
6. Chandrasekharan Bhaskar 00003343 12/05/2016
Ensuring the eligibility of for the appointment / continuity of every Director on the Board is the responsibility of the management of
the Company. Our responsibility is to express an opinion on these based on our verification. This certificate is neither an assurance as to
the future viability of the Company nor of the efficiency or effectiveness with which the management has conducted the affairs of the
Company.
For: D.P. Yadav & Associates
Date: 16.05.2019 CS D.P. Yadav

Place: Indore MN. 36395

ANNEXURE H
FORM NO. MR-3
SECRETARIAL AUDIT REPORT
For the financial year ended 31st March, 2019
[Pursuant to section 204(1) of the Companies Act, 2013 and rule No.9 of the Companies
(Appointment and Remuneration Personnel) Rules, 2014]
To
The Members
KRITI INDUSTRIES (INDIA) LIMITED
CIN: L25206MP1990PLC005732
Registered Office: Mehta Chambers,
34-Siyagunj, Indore (M.P.) - 452007
We have conducted the Secretarial Audit of the compliances (v) The following Regulations and Guidelines prescribed under
of applicable statutory provisions and the adherence to the Securities and Exchange Board of India Act, 1992 (‘SEBI
good corporate practices by KRITI INDUSTRIES (INDIA) Act’):-
LIMITED (hereinafter called the Company) having CIN-
a. The Securities and Exchange Board of India (Substantial
L25206MP1990PLC005732. Secretarial Audit was conducted in
Acquisition of Shares and Takeovers) Regulations, 2011;
a manner that provided us a reasonable basis for evaluating the
corporate conducts/statutory compliances and expressing our b. The Securities and Exchange Board of India (Prohibition
opinion thereon of Insider Trading) Regulations, 1992;
Based on our verification of the books, papers, minute books, forms c. The Securities and Exchange Board of India (Issue of
and returns filed and other records maintained by the Company Capital and Disclosure Requirements) Regulations, 2009;
and also the information provided by the Company,its officers, d. The Securities and Exchange Board of India (Employee
agents, KMPs, Directors and authorized representatives during the Stock Option Scheme and Employee Stock Purchase
conduct of secretarial audit, we hereby report that in our opinion, Scheme) Guidelines, 1999; (Not Applicable to the
the Company has, during the audit period covering the financial Company during the audit period)
year ended on 31st March, 2019, generally complied with the
statutory provisions listed hereunder and also that the Company e. The Securities and Exchange Board of India (Issue and
has proper Board-processes and compliance mechanism in place Listing of Debt Securities) Regulations, 2008; (Not
to the extent, in the manner and subject to reporting made Applicable to the Company during the audit period)
hereinafter. f. The Securities and Exchange Board of India (Registrars
We have examined the books, papers, minute books, forms and to an Issue and Share Transfer Agents) Regulations, 1993
returns filed and other records maintained by KRITI INDUSTRIES regarding the Companies Act and dealing with client;
(INDIA) LIMITED for the financial year ended on 31st March, 2019, g. The Securities and Exchange Board of India (Delisting of
according to the provisions of: Equity Shares) Regulations, 2009; and (Not applicable to
(i) The Companies Act, 2013 (the Act) and the rules made there the Company during the audit period)
under: h. The Securities and Exchange Board of India (Buyback
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and of Securities) Regulations, 1998; (Not applicable to the
the rules made there under; Company during the audit period)
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws (vi) other laws are applicable specifically to the Company are as
framed there under; under:
(iv) Foreign Exchange Management Act, 1999 and the rules (a) The Environment (Protection) Act, 1986;
and regulations made there under to the extent of Foreign (b) The water (Prevention and Control of Pollution) Act,
Direct Investment, Overseas Direct Investment and External 1974;
Commercial Borrowings;

(c) The Air (Prevention and Control of Pollution) Act, 1981; (iii) The Company has not expend full amount of CSR required
under section 135 of the Act and the amount of H29.40
(d) The Hazardous Waste (Management, Handling &
lakhs for the current financial year remains unexpended till
Transboundary Movement) Rules, 2008;
31.03.2019.
(e) Factories Act, 1948;
We further report that the Board of Directors of the Company is
(f) Industrial Dispute Act, 1947; duly constituted with proper balance of Executive Directors, Non-
(g) The Payment of Wages Act, 1936; Executive Directors and Independent Directors. The changes in
the composition of the Board of Directors that took place during
(h) The Minimum Wages Act, 1948; the period under review were carried out in compliance with the
(i) The Employee State Insurance Act, 1948; provisions of the Act.
(j) The Employee Provident Fund and Miscellaneous Adequate notice is given to all directors to schedule the Board
Provision Act,1952; Meetings, agenda and detailed notes on agenda were sent
adequately in advance and a system exists for seeking and
(k) The Payment of Bonus Act, 1965;
obtaining further information and clarifications on the agenda
(l) The Payment of Gratuity Act, 1972; items before the meeting and for meaningful participation at the
meeting.
(m) The Income Tax Act, 1961;
Majority decisions are carried through while the dissenting
(n) Contract Labour (Regulation and Abolition) Act, 1970;
members’ views, if any are captured and record as part of the
(o) The Industrial Employment (Standing Orders) Act, 1946; minutes.
(p) The Goods and Service Tax We further report that as per the explanations given to us and
We have also examined compliance with the applicable clause of the representations made by the Management and relied upon
the following: by us there are adequate systems and processes in the Company
commensurate with the size and operations of the Company
1. Secretarial Standard issued by the Institute of Company
to monitor and ensure compliance with applicable laws, rules,
Secretaries of India (ICSI) and applicable mandatorily.
regulations and guidelines.
2. Listing Obligations and Disclosure Requirements Regulations,
We further report that during the audit period there was no
2015 as amended from time to time. (Earlier The Listing
specific events in pursuance of the above referred laws, rules,
Agreement entered into by the Company with BSE Limited
regulations, guidelines having major bearing on the Company’
read with the Securities and Exchange Board of India)
affairs.
During the year under review, the Company has complied with
the provision of the Act, Rules, Regulations, Guidelines, standard
etc. mentioned above subject to the following observations: For Kaushal Agrawal& Co.,
Practising Company Secretaries
(i) Some of the e-Forms /Returns/ information required to file
by the Company to Registrar /other authorities have filed
belatedly with requisite amount of “additional fees” (whether
applicable). CS Kaushal Kumar Agrawal
Place: Indore M. No. F4985
(ii) Certain registered charge (charge ID No. 100019340, Dated: 16th May, 2019 C.P. No. 3457
100176071, 100175539, 10017474) have been satisfied in
full/ the same property mortgaged again and registered by
afresh “instrument creating the charge, but registration of This report is to be read with our letter of even date which is
satisfaction of which have still been pending. annexed as ‘Annexure 1’ and forms an integral part of this report.

‘ANNEXURE -1’
To,
The Members
Kriti Industries (India)Limited
CIN-L25206MP1990PLC005732
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 processes 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 processes 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 and whether
applicable reliance have been made on the reports, certificates etc given to the Company by other professionals, competent to
issue those certificates to 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 procedures on test basis.
6. The Secretarial Audit report is neither an assurance as to the future viability of the Company or of the efficacy or effectiveness with
which the management has conducted the affairs of the Company.
For Kaushal Agrawal& Co.,

CS Kaushal Kumar Agrawal

Place: Indore M. No. F4985
Dated: 16th May, 2019 C.P. No. 3457

CORPORATE
GOVERNANCE REPORT
I. Company’s Philosophy on Corporate Governance goals, targets, policies, governance standards, reporting
Kriti Industries (India) Limited (Kriti) is committed to the mechanism, accountability and decision making process to
adoption of best governance practices. The Company’s be followed.
vision document spells out a direction for the policies and
(ii) Committees of Directors: The Audit Committee, Nomination
procedures, which ensure long-term sustainability. Value- & Remuneration Committee, CSR Committee etc. are focused
creation for stakeholders is thus a continuous endeavor at Kriti. on financial reporting, audit & internal controls, compliance
On the same lines, the Company has always followed fair issues, appointment and remuneration of Directors and senior
business and corporate practices while addressing the needs management employees, implementation and monitoring of
of shareholders, employees, customers, creditors, lenders and CSR activities.
society at large. (iii) Executive management: The entire business including the
In harmony with this philosophy, the Company relentlessly support services are managed with clearly demarcated
responsibilities and authorities at different levels.
strives for excellence by benchmarking itself with esteemed
companies practising good corporate governance. Your III. Board of Directors
company is compliant with all the provisions SEBI (LODR) The Board of Directors of the Company consists of an optimum
Regulations, 2015. combination of executive, non-executive and independent
Directors, to ensure the independent functioning of the Board.
II. The Governance Structure
The composition of the Board also complies with the provisions
Kriti’s governance structure is based on the principles of
of the Companies Act, 2013 and Listing Regulations. As at the end
freedom provided to the executive management within
of corporate financial year 2018-19, the total Board consisted of
a given framework to ensure that the powers vested in six Directors, out of which four were non-executive Directors and
the executive management are exercised with due care out of the four non-executive directors, three were Independent
and responsibility so as to meet the expectation of all the Directors.
stakeholders. In line with these principles, the Company
The names and categories of the Directors on the Board, their
formed three tiers of Corporate Governance structure:
attendance at Board meetings during the year under review
(i) The Board of Directors: The primary role of the Board is to and at the last Annual General Meeting, as also the number of
protect the interest and enhance value for all stakeholders. It Directorships and Committee Memberships held by them in other
conducts overall strategic supervision and control by setting companies are given below:
Sr. Name of Directors Category No. of Attended No. of No. of Memberships

No. Board last AGM Directorship Chairmanship in
Meeting held on in other public Committee of
Attended 31.07.2018 Companies Directors in all
As on Companies**
31.03.2019 Chairman Member
1. Mr. Shiv Singh Mehta, Chairman & Managing Promoter 5 Yes Three Nil Three
Director (DIN: 00023523) Executive
2. Mrs. Purnima Mehta, Promoter 5 Yes One Four One
Whole Time Director (Din: 00023632) Executive
3. Mr. Saurabh Singh Mehta Promoter 5 Yes Two Nil One
Director (DIN: 00023591) Non-Executive

Sr. Name of Directors Category No. of Attended No. of No. of Memberships
No. Board last AGM Directorship Chairmanship in
Meeting held on in other public Committee of
Attended 31.07.2018 Companies Directors in all
As on Companies**
31.03.2019 Chairman Member
4. Mr. Rakesh Kalra Independent 5 Yes Five Four Nil
5. CA Manoj Fadnis Independent 5 Yes Four Two Three
6. Mr. Chandrasekharan Bhaskar Independent 5 Yes Three One Three
* Includes only Audit Committee and Stakeholders’ Relationship Committee.
None of the Directors of the Company are inter-se related IV. Audit Committee
to each other except Mr. Shiv Singh Mehta, Chairman & The Board constituted a well-qualified Audit Committee. All
Managing Director, Mrs. Purnima Mehta, Whole Time Director members of the Committee are Non-Executive Directors with
and Mr. Saurabh Singh Mehta, Non Executive Director who a majority Independent Directors including the Chairman.
are wife and son respectively of Mr. Shiv Singh Mehta. They possess a sound knowledge of accounts, audit, finance,
taxation and internal controls etc.
Details about Directors seeking Appointment /
Reappointments at the forthcoming Annual General Meeting The Audit Committee of the Board of Directors in compliance
are given separately along with Notice convening the said with Regulation 18 of the SEBI (Listing Obligations and
Meeting. Disclosure Requirements) Regulations, 2015 and Section 177
of the Companies Act, 2013 is in place.
Ms. Preeti Sharma is Company Secretary & Compliance Officer
of the Company. The particulars of Members of the Committee, and the
number of meetings attended by them during the year are as
Five meetings of the Board of Directors were held during
follows:
the year ended 31.03.2019. The dates of the meetings were
decided in advance and key information was placed before Sr. Name of the Designation No. of Meetings
the Board. The Board meetings were held on i) 16th May, No. Members Attended
2018, ii) 31st July, 2018, iii) 25th October, 2018, iv) 24th 1. CA Manoj Fadnis Chairman 5
January, 2019 and v) 18th February, 2019.
2. Mr. Rakesh Kalra Member 5
FAMILIARISATION PROGRAMME FOR INDEPENDENT 3. Mrs. Purnima Mehta Member 5
DIRECTORS
During the year under review, the Committee met on i) 15th
The Company adopted a familiarization program for
May, 2018, ii) 31st July, 2018, iii) 25th October, 2018, iv) 24th
Independent Directors to provide them with an opportunity
January, 2019 and v) 18th February, 2019.
to familiarize themselves with the Company, its management,
operations and the industry in which the Company operates. All three members of the Audit Committee are Non-executive
On his appointment, an Independent Director receives a Directors and two of them are Independent.
formal letter of appointment, setting out in detail the role,
The Company Secretary acts as Secretary to the Committee
functions, duties and responsibilities expected of him /
her as an Independent Director of the Company. Further, CA Manoj Fadnis, Chairman of the Audit Committee, was
the Directors of the Company are updated on changes/ present at the last Annual General Meeting to answer
developments in domestic/ global corporate and industry shareholders queries.
scenario including those pertaining to statutes/ legislations The roles and terms of reference of the Audit Committee are:
and economic environment and on matters related to
1. Examination of the financial statements and the Auditors’
the Company covering its plants, products, marketing,
Report thereon,
competitors and other functions.

2. To ensure compliance of internal control systems, ii) Took note of resolution passed on 30th July, 2018,
by circulation for appointment of Ms. Vibha Vyas
3. Investigating into any matters as may be referred to it by
as Company Secretary & Compliance Officer of the
the Board,
Company with effect from31st July, 2018.
4. To seek information from employees, obtain outside
iii) Acceptance of resignation of Mr. Vinod Kumar Mittal as
legal / professional advice on the matters before it,
Chief Financial Officer of the Company with effect from
5. To review internal financial control and risk management 09th November, 2018
policies of the Company,
iv) Appointment of Mr. Kamal Kanodia as Chief Financial
6. The recommendation for appointment, remuneration Officer of the Company with effect from 10th November,
and terms of appointment of auditors of the Company, 2018.
7. To review and monitor the auditor’s independence and At the meeting held on 20th December, 2018, the
performance, and effectiveness of audit process, Committee reviewed and recommended the following:
8. Approval or any subsequent modification of transactions i) Acceptance of resignation of Ms. Vibha Vyas as Company
of the Company with related parties, Secretary & Compliance Officer of the Company with
effect from 20th December, 2018.
9. Scrutiny of inter-corporate loans and investments,
ii) Appointment of Ms. Preeti Sharma as Company Secretary
10. Valuation of undertakings or assets of the Company,
& Compliance Officer of the Company with effect from
wherever it is necessary,
21st December, 2018.
11. To perform all other functions as are required under the
Performance evaluation criteria for Directors including
Listing Regulations.
Independent Directors
V. Nomination & Remuneration Committee The Company devised a policy for performance evaluation
The Nomination and Remuneration Committee of the of Independent Directors, Board, Committees and other
Board of Directors in compliance with Regulation 19 of the individual Directors, which includes criteria and process for
SEBI (Listing Obligations and Disclosure Requirements) performance evaluation of the Non-Executive Directors
Regulations, 2015 and Section 178 of the Companies Act, including Independent Directors and Executive Directors to
2013 is in place. judge the knowledge to perform the role, time and level of
The particulars of Members of the Committee, and the participation, performance of duties, professional conduct,
number of meetings attended by them during the year are as independence etc. The appointment/re-appointment/
follows: continuation of Directors on the Board shall be based on the
outcome of evaluation process.
Sr. Name of the Designation No. of Meetings
POLICY FOR SELECTION AND APPOINTMENT OF DIRECTORS
No. Members Attended
AND THEIR REMUNERATION
1. Mr. Rakesh Kalra Chairman 2
The Nomination and Remuneration Committee has adopted
2. CA Manoj Fadnis Member 2
a policy which, inter-alia, deals with the manner of selection
3. Mr. Chandrasekharan Member 2 of members of the Board including Executive and Non-
Bhaskar Executive Directors, Key Managerial Personnel and Senior
All three members of the Remuneration Committee are Non- Management Personnel and their remuneration. The said
executive and Independent Directors. policy is available on the Company’s Website at - http://
kritiindustries.com/wp-content/uploads/2019/03/KI_NIMI.
During the year under review, the Committee met on i) 25th
pdf. The details of the policy are as follows:
October, 2018, iv) 20th December, 2018.
1. APPOINTMENT CRITERIA AND QUALIFICATION:
At the meeting held on 25th October, 2018, the Committee
a. The NRC shall identify and ascertain the integrity,
reviewed and recommended the following:
qualification, expertise and experience of the person
i) Took note of resolution passed on 05th February, 2018, for appointment as Director, key management
by circulation for appointment of Mr. Saurabh Singh personnel or senior management level and
Mehta as an Additional Director of the Company with recommend to the Board his/her appointment.
effect from 07th February, 2018.

b. A person should possess adequate qualification, c. Remuneration to KMP (except MD/WTD) and
expertise and experience for the position he / she Senior Management Personnel:
is considered for appointment. The Committee has i) The remuneration for KMP (except WTD/
discretion to decide whether qualification, expertise MD) and senior management personnel
and experience possessed by a person is sufficient / is determined on the basis of the role and
satisfactory for the concerned position. position of the individual employee, including
professional experience, responsibility, job
c. The Company shall not appoint or continue the complexity and market conditions.
employment of any person as Managing Director or
Whole- time Director who has attained the age of ii) The various remuneration components,
basic salary, allowances, perquisites etc. may
70 (seventy years) and the Non-executive Director
be combined to ensure an appropriate and
who has attained the age of 75 (seventy five years).
balanced remuneration package.
Provided that the term of the person holding this
position(s) may be extended beyond the age of iii) The annual increments to the remuneration
seventy/seventy five years as the case may be with paid to KMP (except MD/WTD) and senior
the approval of shareholders by passing a special management personnel shall be determined
resolution based on the explanatory statement based on their performance as reviewed by the
annexed to the notice for such motion indicating committee.
the justification for extension of appointment 3. TERM
beyond seventy/seventy five years. a. Managing Director/Whole-time Director:
d. The Committee shall confirm and verify that a The Company shall appoint or re-appoint any
person proposed for appointment as director is person as its Executive Chairman, Managing Director
or Executive Director for a term not exceeding five
not debarred from holding the office of Director
years at a time subject to the approval by way
pursuant to any SEBI order and in case an existing
of ordinary/special resolution if any as may be
Director is restrained from acting as a director by
required. No reappointment shall be made earlier
virtue of any SEBI order or any other such authority,
than one year before the expiry of term.
the committee shall intimate such Director for his/
her voluntarily resignation with immediate effect b. Independent Director:
and if such director does not resign then in that An Independent Director shall hold office for a term
case committee shall inform the Board to initiate up to five consecutive years on the Board of the
the process of removal of such Director in terms of Company and will be eligible for re-appointment
relevant sections of the Companies Act, 2013. on passing of a special resolution by the Company
and disclosure of such appointment in the Board’s
2. REMUNERATION report. No Independent Director shall hold office for
a. Remuneration to Managing/ Whole-Time / more than two consecutive terms of up to maximum
Executive/Managing Director: of five years each, but such Independent Director
The Remuneration/ Compensation/ Commission shall be eligible for appointment after expiry of
etc. to be paid to Director/Managing Director three years of ceasing to become an Independent
etc. shall be governed as per provisions of the Director. Provided that an Independent Director
Companies Act, 2013 and rules made there under shall not, during the said period of three years, be
or any other enactment for the time being in force. appointed in or be associated with the Company in
any other capacity, either directly or indirectly
b. Remuneration to Non-Executive/Independent
Director: 4. REMOVAL:
The Non-Executive/Independent Director may Due to reasons for any disqualifications mentioned
receive remuneration/ compensation/ commission in the Act or under any other applicable Act, rules
as per the provisions of the Companies Act, 2013. and regulations there under, the Committee may
The amount of sitting fees shall be subject to limits recommend, to the Board with reasons recorded in
as provided under the Companies Act, 2013 and writing, removal of a Director, KMP or senior management
personnel subject to the provisions and compliance of
rules made there under or any other enactment for
the said Act, rules and regulations.
the time being in force.

5. DETAILS OF REMUNERATION PAID TO THE DIRECTORS:
The details of Remuneration to Directors during the financial year 2018-19 are as follows:
Sr. Name of Directors Designation Service Contract Remuneration drawn Stock

No. Amount (H in lakhs) Options
Stock option Details Granted
Salary, Sitting
Allowances Fees
& Perquisites
1. Mr. Shiv Singh Mehta Chairman & Managing 01.10.2016 to 46.32 - -
Director 30.09.2021*
2. Mrs. Purnima Mehta Whole Time Director 01.07.2016 to 32.88 - -
30.06.2019
3. Mr. Saurabh Singh Mehta Non Executive Director - - 1.00 -
4. Mr. Rakesh Kalra Independent Director 01.04.2014 to - 1.05 -
31.03.2019
5. CA Manoj Fadnis Independent Director 01.04.2014 to - 1.05 -
31.03.2019
6. Mr. Chandrasekharan Bhaskar Independent Director 12.05.2016 to - 1.00 -
11.05.2021
*Proposed revision in remuneration for remaining period from 01st April, 2019 to 30th September, 2021 subject to the approval of
shareholders.
VI. STAKEHOLDERS’ RELATIONSHIP COMMITTEE VII. CORPORATE SOCIAL RESPONSIBILITY

The Company has a Stakeholders Relationship Committee. The role of CSR Committee of the Board is to review,
The terms of reference of the Committee are to consider and monitor and provide strategic direction to the Company’s
approve the transfer of shares, consolidation / split of share CSR practices. The Committee seeks to guide the Company
certificates, issue of duplicate share certificates and other in integrating its social and environmental objectives with
allied matters. The Committee is also empowered to look its business strategies. The Committee has formulated and
into and address shareholders, security holders and investors’ monitors the CSR policy and recommends to the Board
grievances in compliance with the SEBI (Listing Obligations the annual CSR plan comprising the CSR Budget and CSR
and Disclosure Requirements) Regulations, 2015. activities of the Company in terms of Companies Act, 2013.
During the financial year ended 31st March, 2019, ninety one
The composition of the Corporate Social Responsibility
(91) complaints were received from shareholders and the
Committee and the attendance of Members at the Corporate
same were redressed to the satisfaction of the shareholders
Social Responsibility Committee meetings is as below:
and no such complaint was pending as on 31st March, 2019.
Sr. Name of the Designation No. of Meetings
Presently, Mr. Chandrasekharan Bhaskar, Non-Executive-
No. Members Attended
Independent Director, is the Chairman of the Committee.
While Mr. Shiv Singh Mehta, Chairman & Managing Director, 1. Mr. Shiv Singh Mehta Chairman 1
Mrs. Purnima Mehta, Whole Time Director and Mr. Saurabh 2. Mrs. Purnima Mehta Member 1
Singh Mehta*, Non-Executive Director are members. 3. Mr. Rakesh Kalra Member 1
The Committee has periodic interactions with representatives During the year under review, Corporate Social Responsibility
of the Registrar and Transfer Agent of the Company. During Committee met one (1) time on 24th October 2018
the financial year ended 31st March, 2019 the Committee met
The terms of reference of Corporate Social Responsibility
eleven (11) times on i) 11th May, 2018, ii) 23rd May, 2018, iii)
07th July, 2018, iv) 29th August, 2018, v) 03rd October, 2018, Committee are as under:
vi) 30th October, 2018, vii) 09th November, 2018, viii) 23rd 1. To formulate and recommend to the Board a Corporate
November, 2018, ix) 26th December, 2018, x) 28th February, Social Responsibility Policy which shall indicate the CSR
2019, and xi) 15th March, 2019 activities that the Company shall pursue within the
* Mr. Saurabh Singh Mehta appointed as the member of the framework of activities mentioned in Schedule VII of the
Committee on 25th October, 2018. Companies Act, 2013 as amended from time to time.

2. To recommend the amount of expenditure to be VIII. INDEPENDENT DIRECTORS’ MEETING
incurred by the Company on the activities proposed to The Statutory role of Independent Directors Meeting is to
be carried out under the head CSR during the relevant review the performance of Non-Independent Directors, the
financial year. Board and the Chairman of the Company and also to assess
3. To monitor the Corporate Social Responsibility Policy of quality, content and timeliness of the flow of information
between the Company Management and the Board and its
the Company from time to time.
Committees. Meeting of the Independent Directors of the
4. To comply with the directions of the Board as may be Company was held on 25th October, 2018 to review the
given from time to time in connection with pursuing performance of Non-Independent Directors including the
CSR activities, expenditure thereon and such other Chairman and the Board as a whole and was attended by all
matters related thereto. the Independent Directors of the Company.
IX. GENERAL MEETINGS

The location, date and time of the last General Meetings held during the last three financial years are as under:
Year Location Date Type of Time Special Special resolution
General Resolutions through postal Ballot
Meeting
2017-2018 4th Floor, Chetak Chamber, 31st July, 2018 AGM 03:00 P.M. - -
14, RNT Marg, Indore
2016-2017 4th Floor, Chetak Chamber, 12th September, 2017 AGM 03:00 P.M. - -
2015-2016 4th Floor, Chetak Chamber, 11th August, 2016 AGM 04:00 P.M. One -
During the year under review, no extra ordinary general meeting was held as well as no resolution was passed through the Postal
Ballot process.
X. MEANS OF COMMUNICATION designed for corporate. All periodical compliance filings like
Effective communication of consistent, comparable, relevant shareholding pattern, corporate governance report, etc. are
and reliable information is an effective component of also filed electronically on the Listing Centre.
Corporate Governance. It is a process of sharing information,
SEBI Complaints Redress System (SCORES): The investor
thoughts, opinion, and plans to all stakeholders which
complaints are processed in a centralized web-based
promote management-shareholder relations.
complaints redress system. The salient features of this system
Quarterly results: The Company’s quarterly results are are: Centralized data base of all complaints, online upload of
published in ‘Business Standard and Nai Duniya newspapers Action Taken Reports (ATRs) by concerned companies and
and displayed on its website (www.kritiindia.com). online viewing by investors of actions taken on the complaint
and its current status.
Website: The Company’s website (www. kritiindia.com)
contains a separate dedicated section called ‘Investor Desk’ XI. OTHER DISCLOSURES
where shareholders’ information is available. The Company’s 1. All transactions entered into with Related Parties as
Annual Report is also available in a user-friendly and defined under the Companies Act, 2013 and SEBI (Listing
downloadable form. Obligations & Disclosure Requirements) Regulations,
Annual Report: The Annual Report containing, inter alia, 2015, during the financial year were in the ordinary
Audited Annual Financial Statements, Directors’ Report, course of business and on an arm’s length pricing basis.
Auditors’ Report and other important information is circulated As a matter of abundant precaution the transactions
to members and others entitled thereto. The Management’s between the Company There were no materially
Discussions and Analysis Report forms part of the Annual significant transactions with related parties during the
Report and is displayed on the Company’s website (www. financial year which were in conflict with the interest
kritiindia.com). of the Company. Suitable disclosure as required by the
Ind-AS has been made in the notes to the Financial
BSE Corporate Compliance and Listing Centre (the ‘Listing Statements.
Centre’): BSE’s Listing Centre is a web-based application

The Board approved a policy for related party Company by the Ministry of Corporate Affairs (MCA) is
transactions, which has been uploaded on the L25206MP1990PLC005732.
Company’s website. Weblink - http://kritiindustries.com/
2. Annual General Meeting
wp-content/uploads/2019/03/KI_RELATED.pdf
Date 31st July, 2018
2. During the last three years, no non-compliance has Time 03.00 P.M.
been made by the Company and no penalties, strictures Venue 04th Floor, Chetak Chambers, 14 RNT Marg,
imposed on the Company by the stock exchange, SEBI or Indore,
any statutory authority in respect of any matter related
to the capital market. 3. Book Closure Date :
25th July, 2018 to 31st July, 2018 (both days inclusive)
3. The Company promotes ethical behaviour in all its
business activities and has put in place a mechanism 4. Dividend Payment Date:
for reporting illegal or unethical behaviour. The 06th August, 2018
Company has a Vigil Mechanism and Whistle Blower 5. Financial Year:
Policy under which the employees are free to air their 1st April to 31st March
views on the accounting policies and practices of the
6. Financial Calendar for the Year ending :
Company, report unethical or undesirable behavior or
31st March, 2020
practices, actual and suspected fraud taking place in the
Company, violations of Company’s Code of Conduct or 7. Listing on Stock Exchange:
ethics policy. The reportable matters may be disclosed BSE Limited
to the Audit Committee through Company Secretary. In Phiroze Jeejeebhoy Towers, Dalal Street,
exceptional cases, employees may also report directly to Mumbai – 400 001
the Chairman of the Audit Committee. During the year Scrip Code – 526423
under review, no employee was denied access to the ISIN - INE479D01038
Audit Committee.
8. Annual Listing fees for the year 2019-20 have been duly
XII. CONFIRMATION OF COMPLIANCE paid to the above Stock Exchange.
1. The Company has complied with the requirements 9. Annual Custody / Issuer fee for the year 2019-20 has
specified in Regulations 17 to 20, 22 to 27 of the Listing been paid to CDSL & NSDL.
Regulations.
10. Stock Market Data:
2. The Company has laid down Code of Conduct for the Data on the closing share prices of the Company on
Directors and Senior Management Personnel of the Stock Exchanges during the year under review is as
Company and they have affirmed to the Board that follows:
they have adhered to the Code of Conduct during the
BSE Limited share price:
year ended 31st March, 2019 and the declaration to that
effect from Chairman & Managing Director is annexed to Month/Year High (H) Low (H)
this report. Apr 2018 61.00 54.00
3. The Statutory Auditors’ Certificate that the Company has May 2018 59.25 41.50
complied with the conditions of Corporate Governance June 2018 47.95 39.80
is annexed to the Report of the Board of Directors. July 2018 49.50 39.00
Aug 2018 50.65 42.15
4. Matters required to be covered under Management
Sep 2018 50.95 36.00
Discussion and Analysis report are covered in the Report
Oct 2018 40.50 29.90
of the Board of Directors under relevant heads, hence
not been given separately. Nov 2018 38.65 29.25
Dec 2018 34.00 30.30
XIII. GENERAL SHAREHOLDER INFORMATION Jan 2019 33.95 25.55
1. The Company is registered in the State of Madhya Feb 2019 30.40 23.50
Pradesh, India, with the Registrar of Companies, Gwalior.
Mar 2019 33.00 25.20
The Corporate Identity Number (CIN) allotted to the

11. Dividend History:
The dividend declared and paid during the last five financial years is as under:
Sr. No. Financial Year % of Interim Dividend % of Final Dividend % of Total Dividend Dividend Amount
in lakhs
1. 2017-18 - 15 15 74.40
2. 2016-17 - 15 15 74.41
3. 2015-16 18 - 18 89.29
4. 2014-15 - - - -
5. 2013-14 - 15 15 74.41
12. Registrar & Transfer Agent: form. Requests received from Shareholders through their
Ankit Consultancy Pvt. Limited Depository Participants for dematerializing the Equity
Plot No. 60, Electronic Complex, Pardeshipura Shares of the Company are processed by the Registrar
Indore- 452 010 (M.P) within a period of 30 days from the date of receipt of
SEBI Reg. No. NR000000767 such requests and are approved where requests are
Tel: 0731-4065797/ 0731-4065799 complete and in order in all respect.
E-mail: ankit4321@yahoo.com, info@ankitonline.com,
14. Distribution of Shareholding as on 31st March, 2019:
support@ankitonline.com
Shares Holding of No. of % of
13. Share Transfer and Investors Grievances Redressal Nominal Value of H Shareholders Shareholding
System Equity Shares:
1-1000 4458 71.49
a. Physical Form 1001-2000 877 14.06
The Company has appointed Ankit Consultancy Pvt. 2001-3000 301 4.83
Ltd. as its Registrar and Transfer Agent to look into
3001-4000 216 3.46
various issues relating to the investors including
4001-5000 81 1.30
share transfers. Share transfers in physical form are
5001-10000 175 2.81
registered and returned within a period of 30 days
10001-20000 67 1.07
from the date of receipt, subject to the documents
20001-30000 17 0.27
being valid and complete in all respects. The
Company gets report of the share transfers, etc. 30001-40000 11 0.18
periodically from Registrar and Transfer Agent. 40001-50000 4 0.06
50001-100000 7 0.11
During the year, the Company received Ninety One
100000 Above 22 0.35
(91) investor complaints, regarding non-receipt of
Total 6236 100.00
exchanged share certificates and non-receipt of
Annual Report. The complaints/grievances were 15. Dematerialisation of shares:
duly addressed and resolved within 15 days from 48077040 Equity Shares i.e. 96.92% of the total Equity
the date of receipt. Shares have been dematerialized up to 31st March, 2019.
b. Electronic Form Presently, trading in Equity Shares of the Company on

The Company’s Equity Shares are admitted into Stock Exchanges is permitted only in a dematerialised
the Depository System of National Securities form as per the Directions issued by the Securities and
Depository Limited and Central Depository Services Exchange Board of India in that behalf.
(India) Limited, as an eligible security under the
16. Company has no outstanding GDRs, ADRs, warrants or
Depositories Act, 1996.
any other convertible instruments.
As such, facilities for dematerialization of the
17. Commodity price risk or foreign exchange risk and
Company’s Equity Shares is already operational vide
hedging activities:
ISIN: INE479D01038 at both the Depositories. Investors
The Company does not have any exposure hedged
are required to establish an account with a Depository
through commodity derivatives. During the year 2018-
Participant to hold and trade shares in the dematerialized
19, the Company had managed the foreign exchange

risk and hedged to the extent considered necessary. • Corporate Support Centre:
The Company enters into forward contracts for hedging Kriti Industries (India) Limited
foreign exchange exposures against imports. 04th Floor, Chetak Chambers, 14 RNT Marg
Indore 452001 (M.P.)
18. The Certificate of Non Disqualification of Directors under
Tel: 0731-2719100
Regulation 34 (3) read with Schedule V of the SEBI (Listing
Email: cs@kritiindia.com
Obligations and Disclosure Requirements) Regulations,
2015 is attached as “Annexure H” and forms a part of this • Registrar & Transfer Agent:
Report. Ankit Consultancy Pvt. Limited
Plot No. 60, Electronic Complex, Pardeshipura
19. Plant Location:
Indore- 452 010 (M.P)
13/1 Tarpura, 75-86, Sector No. 2,
SEBI Reg. No. NR000000767
Industrial Area, Pithampur, Dist. Dhar (M.P)-454775
Tel: 0731-4065797/ 0731-4065799
20. Address for Investor Correspondence: E-mail: ankit4321@yahoo.com, info@ankitonline.com,
• Registered Office: support@ankitonline.com
34, Mehta Chambers, Siyagunj
Indore 452007 (M.P.) Shiv Singh Mehta
Tel: 0731-2540963 Date: 16th May, 2019 Chairman & Managing Director
Email: cs@kritiindia.com Place: Indore (DIN: 00023523)
MD/CFO CERTIFICATE
To,
The Board of Directors,
We Shiv Singh Mehta, Chairman & Managing Director and Kamal evaluated the effectiveness of internal control systems of
Kanodia, Chief Financial Officer of Kriti Industries (India) Limited the Company pertaining to financial reporting and have not
certify that: noticed any deficiency that need to be rectified or disclosed
to the Auditors.
A. We have reviewed the financial statements and cash flow
statement for the year ended on 31st March, 2019 and to the D. I. There has not been any significant change in internal
best of our knowledge and belief : control over financial reporting during the year under
review;
I. These statements do not contain any materially untrue
statement or omit any material fact or contain statements II. There has been not any significant change in accounting
that might be misleading; policies during the year under review and
II. These statements together present a true and fair view III. We are not aware of any instance during the year, of any
of the Company’s affairs and are in compliance with significant fraud with involvement therein of the
existing Accounting Standards, applicable laws and management or any employee having a significant role
regulations. in the Company’s internal control system over financial
reporting.
B. To the best of our knowledge and belief, no transactions
entered into by the Company during the financial year ended
Shiv Singh Mehta Kamal Kanodia
on 31st March, 2019 are fraudulent, illegal or violate the
Chairman & Managing Director Chief Financial Officer
Company’s code of conduct.
(DIN: 00023523)
C. We accept responsibility for establishing and maintaining Date: 16th May, 2019
internal controls for financial reporting and that they have Place: Indore

REPORT ON COMPLIANCE OF CONDITIONS OF
CORPORATE GOVERNANCE
To
The Members of
CIN: L25206MP1990PLC005732
1. We, Kaushal Agrawal & Co., Practicing Company Secretaries, have examined the compliance of conditions of Corporate Governance
by the Company, for the year ended on 31st March, 2019, as stipulated in regulations 17 to 27 and clauses (b) to (i) of regulation
46(2) and para C and D of Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘SEBI Listing
Regulations’).
Managements’ Responsibility
2. The compliance of conditions of Corporate Governance is the responsibility of the Management. This responsibility includes the
design, implementation and maintenance of internal control and procedures to ensure the compliance with the conditions of the
Corporate Governance stipulated in the SEBI Listing Regulations.
Our Responsibility
3. Our responsibility is limited to examining the procedures and implementation thereof, adopted by the Company for ensuring
compliance with the conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the financial
statements of the Company.
4. We have examined the books, papers, minutes books, forms, returns and other relevant records and documents maintained by the
Company for the purposes of providing reasonable assurance on the compliance with Corporate Governance requirements by the
Company.
Opinion
5. Based on our examination of the relevant records and according to the information and explanations provided to us and the
representations provided by the Management, we certify that the Company has complied with the conditions of Corporate
Governance as stipulated in regulations 17 to 27 and clauses (b) to (i) of regulation 46(2) and para C and D of Schedule V of the SEBI
Listing Regulations during the year ended 31st March, 2019.
6. We state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness
with which the Management has conducted the affairs of the Company.
For Kaushal Agrawal& Co.,

CS Kaushal Kumar Agrawal

Proprietor
Date: 16.05.2019 M. No. F4985
Place: Indore C.P. No. 3457

Standalone
Financial Statements

Independent Auditor’s Report
To
The Members,
Report on Audit of the Standalone Financial Statements:
Opinion under Section 143(10) of the Companies Act, 2013. Our

We have audited the accompanying standalone financial statements Responsibilities under those Standards are further described in
of KRITI INDUSTRIES (INDIA) LIMITED (“the Company”), which the Auditor’s Responsibilities for the Audit of the Standalone
comprise the Balance Sheet as at 31st March 2019, the Statement Financial Statements section of our report. We are independent
of Profit and Loss (including other Comprehensive Income), the of the Company in accordance with the Code of Ethics issued by
Statement of Changes in Equity and the Statement of Cash Flows the Institute of Chartered Accountants of India together with the
for the year then ended, and notes to the financial statements, ethical requirements that are relevant to our audit of the standalone
including a summary of significant accounting policies and other financial statements under the provisions of the Companies Act,
explanatory information. 2013 and the Rules thereunder, and we have fulfilled our other
ethical responsibilities in accordance with these requirements and
In our opinion and to the best of our information and according
the Code of Ethics. We believe that audit evidence we have obtained
to the explanations given to us, the aforesaid standalone financial
is sufficient and appropriate to provide a basis for our opinion on
statements give the information required by the Companies Act,
our standalone financial statements.
2013 in the manner so required and give a true and fair view in
conformity with the Indian Accounting Standards prescribed under Key Audit Matters
Section 133 of the Act read with the Companies (Indian Accounting Key audit matters are those matters that, in our professional
Standards) Rules , 2015 as amended, (“Ind AS”) and other accounting judgment, were of most significance in our audit of the financial
principles generally accepted in India, of the state of affairs of the statements of the current period. These matters were addressed in
Company as at 31st March 2019, the profit and total comprehensive the context of our audit of the financial statements as a whole, and
income, changes in equity and its cash flows for the year ended on in forming our opinion thereon, and we do not provide a separate
that date. opinion on these matters. We have determined the matters
described below to be the key audit matters to be communicated
Basis for Opinion
in our report.
We conducted our audit of the Standalone financial statements
in accordance with the Standards on Auditing (SAs) specified
Key Audit Matter Auditor’s Response

Provisions and Contingent liabilities in respect of certain litigations Our audit approach involved :-
including Direct and Indirect Taxes not acknowledged as debt. a. Understanding the current status of the litigations/tax
(Note No. 32.3 read with Note No. 2.2.9 and 2.2.11 to the standalone assessments;
financial statements):
b. Examining communication received from various Tax
The Company has material uncertain tax positions including Authorities/ Judicial forums and follow up action thereon;
matters under dispute which involves significant judgment
c. Evaluating the merit of the subject matter under consideration
to determine the possible outcome of these disputes. The
with reference to available independent legal / tax advice;
Company’s assessment is supported by the facts of matter, their
and
own judgment, past experience, and advices from legal and
d. Review and analysis of evaluation of the contentions of the
independent tax consultants wherever considered necessary.
Company through discussions, collection of details of the
Accordingly, unexpected adverse outcomes may significantly
subject matter under consideration and the likely outcome.
impact the Company’s reported profit and the Balance Sheet.
We determined the above area as a Key Audit Matter in view of
associated uncertainty relating to the outcome of these matters.

Information Other than the Standalone Financial Auditor’s Responsibilities for the Audit of the Standalone
Statements and Auditor’s Report Thereon : Financial Statements:
The Company’s Board of Directors is responsible for the preparation Our objectives are to obtain reasonable assurance about whether the
of the other information. The other information comprises the financial statements as a whole are free from material misstatement,
information included in the Management Discussion and Analysis, whether due to fraud or error, and to issue an auditor’s report
Board’s Report including Annexures to Board’s Report, Business that includes our opinion. Reasonable assurance is a high level
Responsibility Report, Corporate Governance and Shareholder’s of assurance, but is not a guarantee that an audit conducted in
Information (‘’the Other Information”), but does not include the accordance with the SAs will always detect a material misstatement
standalone financial statements and our auditor’s report thereon. when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could
Our opinion on the standalone financial statements does not cover
reasonably be expected to influence the economic decisions of the
the other information and we do not express any form of assurance
users taken on the basis of these financial statements.
conclusion thereon.
As part of an audit in accordance with SAs, the auditor exercises
In connection with our audit of the standalone financial statements,
professional judgment and maintains professional skepticism
our responsibility is to read the other information and, in doing so,
throughout the audit. We also:
consider whether the other information is materially inconsistent
with the standalone financial statements or our knowledge • Identify and assess the risks of material misstatement of the
obtained during the course of our audit or otherwise appears to be standalone financial statements, whether due to fraud or
materially misstated. error; to design and perform audit procedures responsive
to those risks; and to obtain audit evidence that is sufficient
If, based on the work we have performed, we conclude that there is
and appropriate to provide a basis for our opinion. The risk of
a material misstatement of this other information, we are required
not detecting a material misstatement resulting from fraud is
to report that fact. We have nothing to report in this regard.
higher than for one resulting from error, as fraud may involve
Responsibilities of Management and Those Charged with collusion, forgery, intentional omissions, misrepresentations, or
Governance for the Standalone Financial Statements: the override of internal control.
The Company’s Board of Directors is responsible for the matters • Obtain an understanding of internal financial controls relevant
stated in Section 134(5) of the Companies Act, 2013 (“the Act”) to the audit in order to design audit procedures that are
with respect to the preparation of these standalone financial appropriate in the circumstances. Under section 143(3)(i) of the
statements that give a true and fair view of the financial position, Companies Act, 2013, we are also responsible for expressing
financial performance, total comprehensive income, changes our opinion on whether the Company has adequate
in equity and cash flows of the Company in accordance with the internal financial controls system in place and the operating
accounting principles generally accepted in India, including the effectiveness of such controls.
Indian Accounting Standards specified under Section 133 of the
Act. This responsibility also includes maintenance of adequate • Evaluate the appropriateness of accounting policies used
accounting records in accordance with the provisions of the Act for and the reasonableness of accounting estimates and related
safeguarding of the assets of the Company and for preventing and disclosures made by management.
detecting frauds and other irregularities; selection and application of • Conclude on the appropriateness of management’s use of the
appropriate accounting policies; making judgments and estimates going concern basis of accounting and, based on the audit
that are reasonable and prudent; and design, implementation and evidence obtained, whether a material uncertainty exists
maintenance of adequate internal financial controls, that were related to events or conditions that may cast significant doubt
operating effectively for ensuring the accuracy and completeness on the entity’s ability to continue as a going concern. If we
of the accounting records, relevant to the preparation and conclude that a material uncertainty exists, we are required
presentation of the standalone financial statements that give a true to draw attention in our report to the related disclosures in
and fair view and are free from material misstatement, whether due the standalone financial statements or, if such disclosures are
to fraud or error. inadequate, to modify the opinion. Our conclusions are based
In preparing the standalone financial statements, the Board of on the audit evidence obtained up to the date of our audit
Directors is responsible for assessing the Company’s ability to report. However, future events or conditions may cause an
continue as a going concern, disclosing, as applicable, matters entity to cease to continue as a going concern.
related to going concern and using the going concern basis for • Evaluate the overall presentation, structure and content of the
accounting unless the Board of Directors either intends to liquidate financial statements, including the disclosures, and whether
the Company or to cease operations, or has no realistic alternative the financial statements represent the underlying transactions
but to do so. and events in a manner that achieves fair presentation.
The Board of Directors are also responsible for overseeing the Materiality is the magnitude of misstatements in the standalone
Company’s financial reporting process. financial statements that , individually or in aggregrate , makes

it probable that the economic decisions of a reasonably (d) In our opinion, the aforesaid standalone financial
knowledgeable user of the financial statements may be influenced. statements comply with the Indian Accounting Standards
We consider quantitative materiality and qualitative factors in specified under Section 133 of the Act, read with Rule 7 of
(i) planning the scope of our audit work and in evaluating the the Companies (Accounts) Rules, 2014.
results of our work; and (ii) to evaluate the effect of any identified
(e) On the basis of the written representations received from
misstatements in the financial statements.
the directors as on 31st March 2019 taken on record by the
We communicate with those charged with governance regarding, Board of Directors, none of the directors is disqualified as
among other matters, the planned scope and timing of the audit on 31st March 2019 from being appointed as a director in
and significant audit findings, including any significant deficiencies terms of Section 164 (2) of the Act.
in internal control that we identify during our audit.
(f ) With respect to the adequacy of the internal financial
We also provide those charged with governance with a statement controls over financial reporting of the Company and
that we have complied with relevant ethical requirements regarding the operating effectiveness of such controls , refer to our
independence and communicate with them all relationships and separate report in “Annexure – B”. Our report expresses an
other matters that may reasonably be thought to bear on our unmodified opinion on the adequacy and the operating
independence, and where applicable, related safeguards. effectiveness of the Company’s internal financial controls
over financial reporting.
From the matters communicated with those charged with
governance, we determine those matters that were of most (g) With respect to the other matters to be included in
significance in the audit of the financial statements of the current the Auditor’s Report in accordance with Rule 11 of the
period and are therefore the key audit matters. We describe these Companies (Audit and Auditors) Rules, 2014, in our
matters in our auditor’s report unless law or regulation precludes opinion and to the best of our information and according
public disclosure about the matter or when, in extremely rare to the explanations given to us:
circumstances, we determine that a matter should not be
i. The Company has disclosed the impact of pending
communicated in our report because the adverse consequences
litigations on its financial position in its standalone
of doing so would reasonably be expected to outweigh the public
Ind AS financial statements - Refer Note 32.3 to the
interest benefits of such communication.
standalone Ind AS financial statements.
Report on Other Legal and Regulatory Requirements: ii. The Company did not have any long-term contracts
1) As required by the Companies (Auditor's Report) Order, 2016 including derivative contracts for which there were
("the Order") issued by the Central Government of India in any material foreseeable losses.
terms of sub-section (11) of section 143 of the Act, we give
iii. There was no delay in transferring the amount,
in the “Annexure A” a statement on the matters specified in
required to be transferred to the Investor Education
paragraphs 3 and 4 of the Order.
and Protection Fund by the Company during the year
2) As required by Section 143 (3) of the Act, we report that: ended 31st March 2019.
(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 it appears from
our examination of those books. FOR RAKESH KUMAR & ASSOCIATES
Chartered Accountants
(c) The Balance Sheet, the Statement of Profit and Loss
Firm Reg. No. : 002150C
including Other Comprehensive Income, Statement of
Changes in Equity and the Statement of Cash Flow dealt CA. RAKESH KUMAR GUPTA
with by this Report are in agreement with the books of Place: Indore Partner
account. Date: 16th May 2019 Membership No. : 070906

“Annexure A” to the Auditor’s Report
The Annexure referred to in paragraph 1 under “Report on other Legal and Regulatory Requirements” of our Independent Auditor’s Report of
even date on the standalone Ind AS financial statements to the members of Kriti Industries (India) Limited for the year ended 31st March
2019, we further report that :
(i) a. As informed to us, the Company has maintained proper (iv) As per information and explanation given to us, the Company
records, on yearly basis, showing full particulars, including has complied all provisions in respect of loans, investment and
quantitative details and situation of fixed assets. guarantees covered under section 185 to section 186 of the
Companies Act, 2013.
b. As informed to us, the management of the Company
has done physical verification of certain fixed assets at (v) In our opinion and according to the information and
reasonable intervals in accordance with programme of explanations given to us, the Company neither accepted nor
verification, which in our opinion is reasonable, having invited any deposits from public within the provision of Section
regard to the size of the Company and nature of its assets 73 to 76 of Companies Act, 2013 and rules made there under.
and no material discrepancies were noticed on such
(vi) We have broadly reviewed the books of account maintained
verification.
by the Company pursuant to the rules made by the Central
c. The title deeds of immovable properties are held in the Government for the maintenance of the cost records under
name of the Company. section 148 (1) of the Companies Act, 2013 and are of the
opinion that prima facie, the prescribed accounts and records
(ii) As informed to us, the inventory of the Company has been
have been made and maintained. We have, however, not made
physically verified during the year by the management at
detailed examinations of the records with a view to determine
reasonable intervals. Discrepancies noticed during the physical
whether they are accurate or complete.
verification of stock were not material and have been properly
dealt with in the books of accounts of the Company. (vii) a. According to the information and explanation given to
us, the Company has been generally regular in depositing
(iii) As per information and explanation given to us, the Company
undisputed dues relating to Provident Fund, Employees’
has granted unsecured loan to one (1) company covered in the
State Insurance, Income Tax, Sales Tax, Service Tax, Duties
register maintained under section 189 of the Companies Act,
of Customs, Duties of Excise, Value Added Tax, Cess
2013.
and other material statutory dues applicable to it with
a. In respect of loan granted to the body corporate, the terms appropriate authorities. There are no undisputed statutory
and conditions of the loans are prima facie not prejudicial dues payable which are outstanding as at 31st March 2019
to the interest of the Company. for a period of more than 6 months from the date they
b. The terms of arrangement do not stipulate any repayment became payable.
schedule and also the loan is repayable on demand. The b. According to the information and explanations given to
borrower has been regular in the payment of interest as us, following dues of Income Tax, Sales Tax, Service Tax,
stipulated. duties of Customs, duties of Excise or Value Added Tax has
c. As there is no specified repayment schedule of the loan not been deposited on account of any dispute :–
granted to the body corporate, the clause (iii) (c) of the
order is not applicable to the Company.
Name of the Statute Forum where Matter is pending Period to which the 2018-19
(Nature of the Dues) amounts relates
Central Sales Tax High Court of MP 2005-06 7238189
Central Sales Tax High Court of MP 2006-07 1335795
Entry Tax High Court of MP 2007-08 1355843
Central Sales Tax Appellate Board , Bhopal 2008-09 76424
M.P. Commercial Tax Appellate Board , Bhopal 2009-10 741835

Name of the Statute Forum where Matter is pending Period to which the 2018-19
(Nature of the Dues) amounts relates
Entry Tax Appellate Board , Bhopal 2012-13 380439
Central Sales Tax Deputy Commissioner, Indore 2016-17 431816
Central Sales Tax Deputy Commissioner, Indore 2014-15 269734
M.P. Commercial Tax Additional Commissioner, Indore 2014-15 49995
Central Sales Tax Additional Commissioner, Indore 2015-16 846438
M.P. Commercial Tax Additional Commissioner, Indore 2015-16 170987
(viii) According to information and explanations given to us by the (xiii) According to the information and explanation given to us, and
management and according to the records of the Company based on document provided to us, all transactions with the
examined by us, we are of the opinion that the Company related parties are in compliance with section 188 & section
has not defaulted in repayment of any loan from Financial 177 of the Companies Act 2013 where applicable and details
Institutions, Banks or debenture holders. of such transactions to the extent required has been disclosed
in the standalone Ind AS financial statements as required by
(ix) To the best of our knowledge and belief and according to
applicable accounting standards.
the information and explanations given to us and based on
documents provided to us, the Company has not raised any (xiv) According to the information and explanation given to us, the
money by way of initial public offer or further public offer Company has not made any preferential allotment/private
(including debt instruments) during the year. However, term placement of shares or fully or partly convertible debenture
loan availed by the Company were, prima-facie, applied by the during the year.
Company for the purposes for which the loans were obtained.
(xv) According to the information and explanation given to us, the
(x) During the course of our examination of the books of accounts Company has not entered into any non-cash transactions with
and records of the Company, carried out in accordance with the Directors or Persons connected with him.
generally accepted auditing practices in India, and according to
(xvi) In our opinion and according to explanations given to us, the
the information and explanations given to us, we have neither
Company is not required to get registered under section 45-IA
come across any instance of material fraud on the Company by
of the Reserve Bank of India Act, 1934.
its officers/employees or by the Company, noticed or reported
during the year, nor have we been informed of any such case
by the Management.
(xi) According to the information and explanation given to us,

and based on documents provided to us, the managerial
remuneration has been paid /provided in accordance with the FOR RAKESH KUMAR & ASSOCIATES
requisite approvals mandated by the provisions of section 197 Chartered Accountants
read with schedule V to the Companies Act 2013. Firm Reg. No. : 002150C
(xii) In our opinion and according to the information and CA. RAKESH KUMAR GUPTA
explanations given to us, the Company is not a nidhi company. Place: Indore Partner
Accordingly, paragraph 3(xii) of the Order is not applicable. Date: 16th May 2019 Membership No. : 070906

“Annexure B” to the Auditor’s Report
The Annexure referred to in paragraph 2(f ) under “Report on other Legal and Regulatory Requirements” of our Independent Auditor’s Report
of even date on the standalone Ind AS financial statements to the members of Kriti Industries (India) Limited for the year ended 31st March
2019.
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 of internal financial controls over financial reporting included
reporting of Kriti Industries (India) Limited (“the Company”) as of obtaining an understanding of internal financial controls over
31st March 2019 in conjunction with our audit of the standalone financial reporting, assessing the risk that a material weakness exists,
Ind AS financial statements of the Company for the year ended on and testing and evaluating the design and operating effectiveness of
that date. internal control based on the assessed risk. The procedures selected
depend on the auditor’s judgment, including the assessment of the
Management’s Responsibility for Internal Financial risks of material misstatement of the financial statements, whether
Controls due to fraud or error.
The Company’s management is responsible for establishing and
We believe that the audit evidence we have obtained is sufficient
maintaining internal financial controls based on the internal control
and appropriate to provide a basis for our audit opinion on the
over financial reporting criteria established by the Company
internal financial controls system over financial reporting.
considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls Meaning of Internal Financial Controls Over Financial
Over Financial Reporting issued by the Institute of Chartered Reporting
Accountants of India (“ICAI”). These responsibilities include the A company's internal financial control over financial reporting is a
design, implementation and maintenance of adequate internal process designed to provide reasonable assurance regarding the
financial controls that were operating effectively for ensuring the reliability of financial reporting and the preparation of standalone
orderly and efficient conduct of its business, including adherence Ind AS financial statements for external purposes in accordance with
to company’s policies, the safeguarding of its assets, the prevention generally accepted accounting principles. A company's internal
and detection of frauds and errors, the accuracy and completeness financial control over financial reporting includes those policies and
of the accounting records, and the timely preparation of reliable procedures that:
financial information, as required under the Companies Act, 2013.
1. pertain to the maintenance of records that, in reasonable detail,
Auditors’ Responsibility accurately and fairly reflect the transactions and dispositions of
Our responsibility is to express an opinion on the Company's internal the assets of the Company;
financial controls over financial reporting based on our audit. We
2. provide reasonable assurance that transactions are recorded
conducted our audit in accordance with the Guidance Note on
as necessary to permit preparation of financial statements in
Audit of Internal Financial Controls Over Financial Reporting (the
accordance with generally accepted accounting principles,
“Guidance Note”) and Standards on Auditing, and deemed to
and that receipts and expenditures of the Company are being
be prescribed under Section 143(10) of the Act, to the extent
made only in accordance with authorizations of management
applicable to an audit of internal financial controls , both applicable
and directors of the Company; and
to an audit of Internal Financial Controls and , both issued by ICAI
. Those Standards and the Guidance Note require that we comply 3. provide reasonable assurance regarding prevention or timely
with ethical requirements and plan and perform the audit to obtain detection of unauthorized acquisition, use, or disposition of
reasonable assurance about whether adequate internal financial the Company's assets that could have a material effect on the
controls over financial reporting was established and maintained financial statements.
and if such controls operated effectively in all material respects.
Inherent Limitations of Internal Financial Controls Over
Our audit involves performing procedures to obtain audit evidence Financial Reporting
about the adequacy of the internal financial controls system over Because of the inherent limitations of internal financial controls over
financial reporting and their operating effectiveness. Our audit financial reporting, including the possibility of collusion or improper

management override of controls, material misstatements due to the essential components of internal control stated in the Guidance
error or fraud may occur and not be detected. Also, projections Note on Audit of Internal Financial Controls Over Financial Reporting
of any evaluation of the internal financial controls over financial issued by the Institute of Chartered Accountants of India.
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.
FOR RAKESH KUMAR & ASSOCIATES
Opinion Chartered Accountants
In our opinion, the Company has, in all material respects, an adequate Firm Reg. No. : 002150C
internal financial controls system over financial reporting and such
internal financial controls over financial reporting were operating CA. RAKESH KUMAR GUPTA
effectively as at 31st March 2019, based on the internal control over Place: Indore Partner
financial reporting criteria established by the Company considering Date: 16th May 2019 Membership No. : 070906

KRITI INDUSTRIES (INDIA ) LIMITED
CIN: L25206MP1990PLC005732
Balance Sheet as on 31.03.2019

(H in lakhs)
Sr. Particulars Note No As at As at
No 31.03.2019 31.03.2018
ASSETS
(1) NON CURRENT ASSETS
(a) Property, Plant and Equipment 3 9432.35 7890.64
(b) Capital work-in-progress 67.19 49.39
(c) Other Intangible assets 4 21.20 24.51
(d) Financial Assets
(i) Investments 5 778.15 778.15
(ii) Loans 6 191.96 163.72
(iii) Other financial assets 7 0.74 41.84
(e) Other non current assets 8 246.46 222.00
Total Non Current Assets 10738.05 9170.25
(2) Current assets
(a) Inventories 9 11023.58 9440.31
(b) Financial Assets
(i) Trade receivables 10 6200.80 4358.30
(ii) Cash and cash equivalents 11 116.28 119.80
(iii) Bank balances other than (ii) above 12 1076.44 968.69
(iv) Loans 13 1488.02 1126.09
(c) Other current assets 14 119.78 272.18
Total Current Assets 20024.90 16285.37
Total Assets 30762.95 25455.62
EQUITY AND LIABILITIES
Equity
(a) Equity Share capital 15 496.04 496.04
(b) Other Equity 16 8033.17 7461.08
Total Equity 8529.21 7957.12
LIABILITIES
(1) Non-current liabilities
(a) Financial Liabilities
(i) Borrowings 17 2194.78 1330.03
(b) Deferred tax liabilities (Net) 18 1271.56 1073.23
(c) Other non-current liabilities 19 1033.44 211.52
Total non current Liabilities 4499.78 2614.78
(2) Current liabilities
(i) Borrowings 20 4415.52 3933.51
(ii) Trade payables
(a) Total outstanding dues of micro enterprises and small enterprises 0.00 0.00
(b) Total outstanding dues of creditors other than micro and small 21 11989.49 9578.07
enterprises
(iii) Others 22 801.28 898.93
(b) Other current liabilities 23 442.20 395.93
(c) Provisions 24 85.47 77.28
Total current Liabilities 17733.96 14883.72
Total Equity and Liabilities 30762.95 25455.62
Siginificant accounting policies & Notes to the accounts 1 -48
As per our Report of even date attached
For Rakesh Kumar & Associates For and on behalf of the Board of Directors
F.R.N. 002150C
Rakesh Kumar Gupta Shiv Singh Mehta Purnima Mehta Kamal Kanodia Preeti Sharma
Partner Chairman and Managing Director Executive Director Chief Financial officer Company Secretary
M.No. 070906 DIN: 00023523 DIN: 00023632
Place: Indore
Date: 16th May, 2019

CIN: L25206MP1990PLC005732
Statement of Profit & Loss for the period ended 31.03.2019

(H in lakhs)
Particulars Note No For the year ended For the year ended
31.03.2019 31.03.2018
REVENUE
Revenue From Operations 25 56901.57 44424.55
Other Income 26 212.12 300.04
Total Income 57113.69 44724.59
EXPENSES
Cost of materials consumed 47873.64 35125.81
Changes in inventories of finished goods, (1517.83) (646.35)
Excise Duty 27 0.00 1660.78
Employee benefits expense 28 2178.18 1710.99
Finance costs 29 1477.20 1252.94
Depreciation and amortization expense 3-4 596.29 561.83
Other expenses 30 5459.40 3648.85
Total Expenses 56066.88 43314.85
Profit/(loss) before exceptional items and tax 1046.81 1409.74
Exceptional Items 0.00 0.00
Profit/(loss) before tax 1046.81 1409.74
Tax expense:
(1) Current tax 186.98 327.27
(2) Deferred tax 198.33 160.01
Total Tax Expenses 385.31 487.28
Net Profit/(Loss) for the period from continuing operations 661.50 922.46
Profit/(Loss) for the period from discontinued operations 0.00 0.00
Tax expense:
(i) Current tax 0.00 0.00
(ii) Deferred tax 0.00 0.00
(iii) Income Tax related earlier year 0.00 0.00
Net Profit/(Loss) for the period from discontinued operations 0.00 0.00
Net Profit/(Loss) for the period 661.50 922.46
Other Comprehensive Income
Items that will not be reclassified to profit or loss
Remeasurement of Defined Benefit Plan 0.29 (4.20)
Effective portion of Cash Flow Hegde
Total Other Comprehensive Income 0.29 (4.20)
Total Comprehensive Income for the period 661.79 918.26
Earnings per equity share
(1) Basic 1.33 1.86
(2) Diluted 1.33 1.86
Siginificant accounting policies & Notes to the accounts 1-48
F.R.N. 002150C
M.No. 070906 DIN: 00023523 DIN: 00023632
Place: Indore

CIN: L25206MP1990PLC005732
Cash Flow Statement as on 31.03.2019

(H in lakhs)
Particulars Year ended 31.03.2019 Year ended 31.03.2018
Amount Amount Amount Amount
Cash Flow From Operating Activities
Net Profit before Tax 1046.81 1,409.74
Adjustments for :
Depreciation 596.29 561.83
(Profit)/ Loss on Sale of Fixed Assets - -
Financial Income (125.59) (93.52)
Financial Expense 1477.20 1947.90 1,252.94 1721.25
Cash Operating Profit before working capital changes 2994.71 3130.99
(Increase) / Decrease in Inventories (1582.97) (1,344.33)
(Increase) / Decrease in Trade Receivables (1842.50) 73.74
(Increase) / Decrease in Deposit given (361.94) 439.56
(Increase) / Decrease in Other Current Assets 377.40 556.60
(Increase) / Decrease in Loan Given (28.24) 6.69
(Increase) / Decrease in other Financial assets 41.10 (37.24)
(Increase) / Decrease in Other Non Current Assets (24.46) (122.00)
Increase / (Decrease) in Trade Payables 2411.42 1,702.96
Increase / (Decrease) in Other Financial Liabilities (97.66) (446.24)
Increase / (Decrease) in Other Current Liabilities 46.27 (443.59)
Increase / (Decrease) in Provisions (178.77) (1.83)
(1240.35) 14.79
Tax Paid (225.00) (273.54)
Net Cash From Operating Activities (A) 1529.36 2872.24
Cash Flow From Investing Activities
Financial Income 125.59 93.52
Sale Proceed Of Fixed Assets (Net) 20.61 6.23
Purchase of Fixed Assets (2173.10) (1,094.46)
Investment in Fixed Deposits having maturity of more (107.75) (144.74)
than three months
(Increase) / Decrease in Non Current Investment 0.00 -
Net Cash Used In Investing Activities (B) (2134.65) (1139.44)
Cash Flow From Financing Activities
Proceeds from Long Term Borrowings 1650.00 750.00
Repayment of Long Term Borrowings (785.25) (911.02)
Net Increase / (Decrease) in Long Term Borrowings 864.75 (161.02)
Increase / (Decrease) in Other Non Current Liability 821.91 2.89
Increase / (Decrease) in Short Term Borrowings 482.01 (134.79)
Dividend Paid on Equity Shares (74.41) (74.40)
Dividend Distribution Tax Paid (15.29) (15.16)
Financial Expenses (1477.20) (1252.94)
Net Cash Used In Financing Activities (C) 601.77 (1635.41)
Net Decrease In Cash and Cash Equivalents (A + B + C) (3.52) 97.39
ADD : Cash and cash equivalents - Opening - 1st April 119.80 22.44
Cash and cash equivalents - Closing - 31st March 2019 116.28 119.80

Cash Flow Statement as on 31.03.2019
(H in lakhs)
Footnote to Cash Flow Statement:
1. Components of Cash and Cash Equivalents are produced as under:
Particulars 2018-19 2017-18
Cash & Cash Equivalents
Balances with Banks
Current Account 0.60 10.02
FDRs 113.30 107.93
Cash on hand 2.38 1.85
F.R.N. 002150C
M.No. 070906 DIN: 00023523 DIN: 00023632
Place: Indore

Statement of Change in Equity for the year ended 31.03.2019
Share capital (H in lakhs)
Equity Share Capital Balances as at Changes in Balance as at Balances as at Changes in Balance as at
1st April 2017 equity share 31st March 1st April 2018 equity share 31st March
capital during 2018 capital during 2019
the year the year
Paid up Capital 496.04 0.00 496.04 496.04 0.00 496.04
Other Equity
Particulars Reserves and Surplus Other Comprehensive Total
Income
General Share Contingency Share Retained Total Effective
Reserve Premium Reserve Forfeiture Earnings Cash Flow Hedge
Account Account
Balances as at 1st April 2018 3,175.00 466.14 - 2.73 2,988.50 6,632.37 (93.61) 6,538.76
Profit for the year 922.46 922.46 - 922.46
Other Comprehensive Income: (4.20) (4.20) 93.61 89.41
Final Dividend paid including (89.56) (89.56) - (89.56)
corporate dividend tax for FY
2017-18
Interim Dividend paid including - - -
corporate dividend tax
Transfer to General Reserve 200.00 (200.00) - - -
Transfer from Statement of - - -
Profit & Loss
Balance as at 31st March 2019 3,375.00 466.14 - 2.73 3,617.20 7,461.07 - 7,461.07
Profit for the year 661.50 661.50 661.50
Other Comprehensive Income: 0.29 0.29 0.29
Final Dividend paid including (89.70) (89.70) (89.70)
Transfer to General Reserve 50.00 (50.00) - -
Profit & Loss
General Reserve
General reserves are the retained earnings of a company which are kept aside out of company's profits to meet future (known or unknown) obligations.
Share Premium Account

Share premium to be used in future to pay the expenses of issuing equity, such as underwriter fees or for issuing bonus shares to shareholders
Contingency Reserve
Contingency Reserve is created to meet any known unknowns risk which may occur in future.
Share Forfeiture Account

to use stock purchase plans to inspire employee loyalty.

Significant accounting policies and notes to the accounts 31.03.2019
1. Corporate Information
Kriti Industries (India) Ltd., a public limited company domiciled in India and incorporated under the provisions of the Companies Act,
1956 on 12.03.1990 and having its Registered office in Indore (MP). The Company’s shares are listed in the Bombay Stock Exchange (BSE).
2. Significant Accounting Policies Basis of Preparation and Presentation

The financial statements have been prepared on the historical cost basis except for following assets and liabilities which have been
measured at fair value:
i) Certain financial assets and liabilities (including derivative instruments),
ii) Defined benefit plans - plan assets
The financial statements of the Company have been prepared to comply with the Indian Accounting standards (‘Ind AS’), including the
rules notified under the relevant provisions of the Companies Act, 2013.
Company’s financial statements are presented in Indian Rupees (INR), which is also its functional currency.
2.2. Summary of Significant Accounting Policies

2.2.1. Property, Plant and Equipment
a) Property, Plant and Equipment(PPE) are stated at cost, net of recoverable taxes, trade discount and rebates less
accumulated depreciation and impairment losses, if any. Such cost includes purchase price, borrowing cost and any cost
directly attributable to bringing the assets to its working condition for its intended use, net charges on foreign exchange
contracts and adjustments arising from exchange rate variations attributable to the assets.
b) Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when
it is probable that future economic benefits associated with the item will flow to the entity and the cost can be measured
reliably. In the carrying amount of an item of PPE, the cost of replacing the part of such an item is recognized when that
cost is incurred if the recognition criteria are met. The carrying amount of those parts that are replaced is derecognized in
accordance with the derecognition principles.
c) Expenses incurred relating to project, net of income earned during the project development stage prior to its intended
use, are considered as pre - operative expenses and disclosed under Capital Work - in - Progress.
d) Depreciation on property, plant and equipment is provided using straight line method. Depreciation is provided based
on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013. Each part of an item of Property, Plant
& Equipment with a cost that is significant in relation to total cost of the Machine is depreciated separately, if its useful life
is different than the life of the Machine.
e) Based on the technical evaluation, the management belives that the useful life of Dies and Moulds is 6 years.
f ) The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each
financial year end and adjusted prospectively, if appropriate.
g) Gains or losses arising from derecognition of a property, plant and equipment are measured as the difference between
the net disposal proceeds and the carrying amount of the asset and are recognised in the Statement of Profit and Loss
when the asset is derecognised.
h) Spare parts procured along with the Plant & Machinery or subsequently which meet the recognition criteria are capitalized
and added in the carrying amount of such item. The carrying amount of those spare parts that are replaced is derecognized
when no future economic benefits are expected from their use or upon disposal. Other machinery spares are treated as
“stores & spares” forming part of the inventory.
2.2.2. Leases
a) Leases are classified as finance leases wherever the terms of the lease, transfers substantially all the risks and rewards of
ownership to the lessee. All other leases are classified as operating leases.
b) Leased assets: Assets held under finance leases are initially recognised as assets of the Company at their fair value at the
inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the
lessor is included in the balance sheet as a finance lease obligation.
c) Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve
a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately in

Statement of Profit and Loss, unless they are directly attributable to qualifying assets, in which case they are capitalized.
Contingent rentals are recognised as expenses in the periods in which they are incurred.
d) 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 estimated useful life of
the asset and the lease term.
e) Operating lease payments are recognised as an expense in the Statement of Profit and Loss on a straight-line basis over
the lease term except where another systematic basis is more representative of time pattern in which economic benefits
from the leased assets are consumed.
2.2.3. Intangible assets

a) Intangible Assets are stated at cost of acquisition net of recoverable taxes, trade discount and rebates less accumulated
amortization /depletion and impairment loss, if any. Such cost includes purchase price, borrowing costs, and any cost
directly attributable to bringing the asset to its working condition for the intended use, net charges on foreign exchange
contracts and adjustments arising from exchange rate variations attributable to the intangible assets.
b) Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when
it is probable that future economic benefits associated with the item will flow to the entity and the cost can be measured
reliably.
c) Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal
proceeds and the carrying amount of the asset and are recognised in the Statement of Profit and Loss when the asset is
derecognised.
2.2.4. Capital Work in Progress

a) Expenditure incurred on assets under construction (including a project) is carries at cost under Capital Work in Progress.
Such costs comprises purchase price of asset including import duties and non-refundable taxes after deducting trade
discounts and rebates and costs that are directly attributable to bringing the asset to the location and condition necessary
for it to be capable of operating in the manner intended by management.
b) Cost directly attributable to projects under construction include costs of employee benefits, expenditure in relation to
survey and investigation activities of the projects, cost of site preparation, initial delivery and handling charges, installation
and assembly costs, professional fees, expenditure on maintenance and up-gradation etc. of common public facilities,
depreciation on assets used in construction of project, interest during construction and other costs if attributable to
construction of projects. Such costs are accumulated under “Capital works in progress” and subsequently allocated on
systematic basis over major assets, other than land and infrastructure facilities, on commissioning of projects.
c) Capital Expenditure incurred for creation of facilities, over which the Company does not have control but the creation
of which is essential principally for construction of the project is capitalized and carried under “Capital work in progress”
and subsequently allocated on systematic basis over major assets, other than land and infrastructure facilities, on
commissioning of projects, keeping in view the “attributability” and the “Unit of Measure” concepts in Ind AS 16- “Property,
Plant & Equipment”. Expenditure of such nature incurred after completion of the project, is charged to Statement of Profit
and Loss.
2.2.5. Research and Development Expenditure

Revenue expenditure pertaining to research is charged to the Statement of Profit and Loss. Development costs of products are
charged to the Statement of Profit and Loss unless a product’s technological and commercial feasibility has been established,
in which case such expenditure is capitalised.
2.2.6. Finance Cost

a) Borrowing costs include exchange differences arising from foreign currency borrowings to the extent they are regarded as
an adjustment to the interest cost. Borrowing costs directly attributable to the acquisition, construction or production of
an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of
the cost of the asset. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended
use.

b) Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying
assets is deducted from the borrowing costs eligible for capitalisation.
c) All other borrowing costs are expensed in the period in which they occur.
2.2.7. Inventories
a) Items of inventories are measured at lower of cost and net realisable value after providing for obsolescence, if any, except
in case of by-products which are valued at net realisable value. Cost of inventories comprises of cost of purchase, cost of
conversion and other costs including manufacturing overheads, net of recoverable taxes incurred in bringing them to
their respective present location and condition.
b) Cost of Inventory of raw materials, stores and spares, packing materials, trading and other products are determined using
the First-In, First-Out (FIFO) basis on moving average prices.
2.2.8. Impairment of non-financial assets - property, plant and equipment and intangible assets
a) The Company assesses at each reporting date as to whether there is any indication that any property, plant and equipment
and intangible assets or group of assets, called Cash Generating Units (CGU) may be impaired. If any such indication exists the
recoverable amount of an asset or CGU is estimated to determine the extent of impairment, if any. When it is not possible to
estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the CGU to which
the asset belongs.
b) An impairment loss is recognised in the Statement of Profit and Loss to the extent, asset’s carrying amount exceeds its
recoverable amount. The recoverable amount is higher of an asset’s fair value less cost of disposal and value in use. Value in use
is based on the estimated future cash flows, discounted to their present value using pre-tax discount rate that reflects current
market assessments of the time value of money and risk specific to the assets.
c) The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable
amount.
2.2.9. Provisions, Contingent Liabilities and Contingent Assets and Commitments

a) Provisions are recognised when the Company has 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. Such provisions are determined based on management
estimate of the amount required to settle the obligation at the balance sheet date. When the Company expects some or
all of a provision to be reimbursed, the reimbursement is recognised as a standalone asset only when the reimbursement
is virtually certain.
b) 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 recognised as a finance cost.
c) Contingent liabilities are disclosed on the basis of judgment of management. These are reviewed at each balance sheet
date and are adjusted to reflect the current management estimate.
d) Contingent assets are not recognized but are disclosed in the financial statements when inflow of economic benefits is
probable.
2.2.10. Employee Benefits Expense

Short Term Employee Benefits
a. The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by
employees are recognised as an expense during the period when the employees render the services.
Post-Employment Benefits
Defined Contribution Plans
b. A defined contribution plan is a post-employment benefit plan under which the Company pays specified contributions
to a separate entity. The Company makes specified monthly contributions towards Provident Fund, Superannuation Fund
and Pension Scheme. The Company’s contribution is recognised as an expense in the Statement of Profit and Loss during
the period in which the employee renders the related service.

Defined Benefit Plans
c. The cost of the defined benefit plan and other post-employment benefits and the present value of such obligation are
determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from
actual developments in the future. These include the determination of the discount rate, future salary increases, mortality
rates and future pension increases. Due to the complexities involved in the valuation and its long-term nature, a defined
benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting
date.
d. The Company pays gratuity to the employees whoever has completed five years of service with the Company at the time
of resignation/superannuation. The gratuity is paid @15 days salary for every completed year of service as per the Payment
of Gratuity Act 1972.
e. The gratuity liability amount is contributed to the approved gratuity fund formed exclusively for gratuity payment to the
employees.
f. The liability in respect of gratuity and other post-employment benefits is calculated using the Projected Unit Credit
Method and spread over the period during which the benefit is expected to be derived from employees’ services.
g. Re-measurement of defined benefit plans in respect of post- employment are charged to the Other Comprehensive
Income.
2.2.11. Tax Expenses

a. The tax expense for the period comprises current and deferred tax. Tax is recognised in Statement of Profit and Loss,
except to the extent that it relates to items recognised in the other comprehensive income or in equity. In which case, the
tax is also recognised in other comprehensive income or equity.
- Current tax
b. Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation
authorities, based on tax rates and laws that are enacted or substantively enacted at the Balance Sheet date.
- Deferred tax
c. Deferred tax is recognised on temporary 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.
d. 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 realised, based on tax rates (and tax laws) that have been enacted or substantively enacted
by the end of the reporting period. The carrying amount of deferred tax liabilities and assets are reviewed at the end of
each reporting period.
2.2.12. Foreign currencies transactions and translation

a. Transactions denominated in foreign currency are recorded at the exchange rate prevailing on the date of transactions.
Exchange differences arising on foreign exchange transactions settled during the year are recognized in the Statement of
profit and loss account of the year.
b. Monetary assets and liabilities in foreign currency, which are outstanding as at the year-end, are translated at the closing
exchange rate/ forward contract booked (if any) and the resultant exchange differences are recognized in the Statement
of profit and loss account.
c. Realized gain or loss on cancellation of forward exchange contract is recognized in the Statement of Profit and Loss for the
year.
d. Gain/ Loss on exchange difference on pending forward exchange contract which are yet to be executed are measured
on the basis of difference between spot rate at year end and with forward contract exchange rate (premium adjusted) of
respective date through “Designated Cash Flow Hedge Reserve”.
2.2.13. Revenue recognition

a. Revenue from sale of goods is recognised when the significant risks and rewards of ownership have been transferred to
the buyer, recovery of the consideration is probable, the associated cost can be estimated reliably, there is no continuing
effective control or managerial involvement with the goods, and the amount of revenue can be measured reliably.

b. Revenue from rendering of services is recognised when the performance of agreed contractual task has been completed.
c. Revenue from sale of goods is measured at the fair value of the consideration received or receivable, taking into account
contractually defined terms of payment and excluding taxes or duties collected on behalf of the government.
d. Revenue from operations includes sale of goods, services and adjusted for discounts (net), and gain/ loss on corresponding
hedge contracts.
Ind AS 115- Revenue from contracts with customers, mandatory for reporting period beginning on or after 1st April
2018 replaces existing revenue recognition requirements. Under the modified retrospective approach, there were no
significant adjustments required to the retained earning as at 1st April 2018. Also the application of Ind AS 115 did not
have any significant impact on recognition and measurement of revenue and related items in the financial results of the
Company.
Interest income
e. Interest income from a financial asset is recognised using effective interest rate (EIR) method.
Dividends
f. Revenue is recognised when the Company’s right to receive the payment has been established, which is generally when
shareholders approve the dividend.
2.2.14. Insurance Claims

Insurance claims are accounted for on the basis of claims admitted/ expected to be admitted to the extent that there is no
uncertainty in receiving the claims.
2.2.15. Governemnt Grants

Government grants, including non- monetary grants at fair value, are recognised when there is resonable assurance that the
Company will comply with the conditions attaching to them and that the grants will be received.
2.2.16. Financial instruments

I. Financial Assets
a. Initial recognition and measurement

All financial assets and liabilities are initially recognized at fair value. Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial liabilities, which are not at fair value through profit or loss, are adjusted
to the fair value on initial recognition. Purchase and sale of financial assets are recognised using trade date accounting.
b. Subsequent measurement
i. Financial assets carried at amortised cost (AC)
A financial asset is measured at amortised cost if it is held within a business model whose objective is to hold the
asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified
dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
ii. Financial assets at fair value through other comprehensive income (FVTOCI)
A financial asset is measured at FVTOCI if it is held within a business model whose objective is achieved by both
collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give
rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount
outstanding.
iii. Financial assets at fair value through profit or loss (FVTPL)

A financial asset which is not classified in any of the above categories are measured at FVTPL.
c. Investment in subsidiaries, Associates and Joint Ventures

The Company has elected to measure investment in subsidiaries, joint venture and associate at cost.
d. Other Equity Investments

All other equity investments are measured at fair value, with value changes recognised in Statement of Profit and
Loss, except for those equity investments for which the Company has elected to present the value changes in ‘Other
Comprehensive Income’.

e. Impairment of financial assets
i. In accordance with Ind AS 109, the Company uses ‘Expected Credit Loss’ (ECL) model, for evaluating impairment of
financial assets other than those measured at fair value through Statement of profit and loss (FVTPL).
ii. Expected credit losses are measured through a loss allowance at an amount equal to:
• The 12-months expected credit losses (expected credit losses that result from those default events on the
financial instrument that are possible within 12 months after the reporting date); or
• Full lifetime expected credit losses (expected credit losses that result from all possible default events over the life
of the financial instrument)
iii. For trade receivables Company applies ‘simplified approach’ which requires expected lifetime losses to be recognised
from initial recognition of the receivables. The Company uses historical default rates to determine impairment loss on
the portfolio of trade receivables. At every reporting date these historical default rates are reviewed and changes in
the forward looking estimates are analysed.
iv. For other assets, the Company uses 12 month ECL to provide for impairment loss where there is no significant
increase in credit risk. If there is significant increase in credit risk full lifetime ECL is used.
II. Financial liabilities
a. Initial recognition and measurement

All financial liabilities are recognized at fair value and in case of loans, net of directly attributable cost. Fees of recurring
nature are directly recognised in the Statement of Profit and Loss as finance cost.
b. Subsequent measurement
Financial liabilities are carried at amortized cost using the effective interest method. For trade and other payables maturing
within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of
these instruments.
i. Hedge Accounting
Hedges that meet the criteria for hedge accounting are accounted for as follows:
(a)
Cash flow hedge
The Company designates derivative contracts or non derivative financial assets / liabilities as hedging instruments
to mitigate the risk of movement in interest rates and foreign exchange rates for foreign exchange exposure on
highly probable future cash flows attributable to a recognised asset or liability or forecast cash transactions. When a
derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the
derivative is recognized in the cash flow hedging reserve being part of other comprehensive income. Any ineffective
portion of changes in the fair value of the derivative is recognized immediately in the Statement of Profit and Loss. If
the hedging relationship no longer meets the criteria for hedge accounting, then hedge accounting is discontinued
prospectively. If the hedging instrument expires or is sold, terminated or exercised, the cumulative gain or loss on
the hedging instrument recognized in cash flow hedging reserve till the period the hedge was effective remains in
cash flow hedging reserve until the underlying transaction occurs. The cumulative gain or loss previously recognized
in the cash flow hedging reserve is transferred to the Statement of Profit and Loss upon the occurrence of the
underlying transaction. If the forecasted transaction is no longer expected to occur, then the amount accumulated
in cash flow hedging reserve is reclassified in the Statement of Profit and Loss.
(b)
Fair Value Hedge
The Company designates derivative contracts or non derivative financial assets / liabilities as hedging instruments
to mitigate the risk of change in fair value of hedged item due to movement in interest rates, foreign exchange rates
and commodity prices.
Changes in the fair value of hedging instruments and hedged items that are designated and qualify as fair value
hedges are recorded in the Statement of Profit and Loss. If the hedging relationship no longer meets the criteria for
hedge accounting, the adjustment to the carrying amount of a hedged item for which the effective interest method
is used is amortised to Statement of Profit and Loss over the period of maturity.

ii. Derecognition of financial instruments
The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire
or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability (or a part
of a financial liability) is derecognized from the Company's Balance Sheet when the obligation specified in the contract is
discharged or cancelled or expires.
2.2.17. Operating Cycle

a. The Company presents assets and liabilities in the balance sheet based on current / non-current classification based on
operating cycle.
An asset is treated as current when it is:
i. Expected to be realized or intended to be sold or consumed in normal operating cycle;
ii. Held primarily for the purpose of trading;
iii. Expected to be realized within twelve months after the reporting period, or
iv. Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months
after the reporting period
All other assets are classified as non-current.
b. A liability is current when:
i. It is expected to be settled in normal operating cycle;
ii. It is held primarily for the purpose of trading;
iii. It is due to be settled within twelve months after the reporting period, or
iv. There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting
period
All other liabilities are classified as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities.
The Company has identified twelve months as its operating cycle.
2.2.18. Earnings Per Share

a. Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders
by weighted average number of equity shares outstanding during the period. The weighted average number of equity
shares outstanding during the period are adjusted for events of bonus issue; bonus element in a right issue to existing
shareholders.
b. For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity
shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all
dilutive potential equity shares.
2.2.19. Dividend Distribution

Dividend distribution to the Company’s shareholders is recognised as a liability in the Company’s financial statements in the
period in which the dividends are approved by the Company’s shareholders.
2.2.20. Statement of Cash Flows

a. Cash and Cash equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, other
short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known
amounts of cash and which are subject to an insignificant risk of changes in value.
b. Statement of Cash Flows is prepared in accordance with the Indirect Method prescribed in the relevant Accounting
Standard.

2.3. Critical accounting Judgment and key sources of estimation uncertainty
The preparation of the financial statements in conformity with the Ind AS requires management to make judgments, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities and disclosures as at date of
the financial statements and the reported amounts of the revenues and expenses for the years presented. The estimates and associated
assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these
estimates under different assumptions and conditions. The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or
in the period of the revision and future periods if the revision affects both current and future periods.
2.3.1. Depreciation / amortisation and useful lives of property plant and equipment / intangible assets
Property, plant and equipment / intangible assets are depreciated / amortised over their estimated useful lives, after
taking into account estimated residual value. Management reviews the estimated useful lives and residual values of the assets
annually in order to determine the amount of depreciation / amortisation to be recorded during any reporting period. The
useful lives and residual values are based on the Company’s historical experience with similar assets and take into account
anticipated technological changes. The depreciation / amortisation for future periods is revised if there are significant changes
from previous estimates.
2.3.2. Recoverability of trade receivable

Judgements are required in assessing the recoverability of overdue trade receivables and determining whether a provision
against those receivables is required. Factors considered include the credit rating of the counterparty, the amount and timing
of anticipated future payments and any possible actions that can be taken to mitigate the risk of non-payment.
2.3.3. Provisions
Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds
resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition
and quantification of the liability requires the application of judgment to existing facts and circumstances, which can be
subject to change. The carrying amounts of provisions and liabilities are reviewed regularly and revised to take account of
changing facts and circumstances.
2.3.4. Impairment of non-financial assets

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication
exists, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or Cash
Generating Units (CGU’s) fair value less costs of disposal and its value in use. It is determined for an individual asset, unless the
asset does not generate cash inflows that are largely independent of those from other assets or a groups of assets. Where 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.
In assessing value in use, the estimated future cash flows are discounted to their present value using pre-tax discount rate that
reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less
costs of disposal, recent market transactions are taken into account, if no such transactions can be identified, an appropriate
valuation model is used.
2.3.5. Impairment of financial assets

The impairment provisions for financial assets are based on assumptions about risk of default and expected cash loss rates.
The Company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on
Company’s past history, existing market conditions as well as forward looking estimates at the end of each reporting period.

Schedule Forming Part of the Balance Sheet and Profit & Loss Accounts
(As per companies act 2013)
Note 3-4 Property, Plant and Equipment (2017-18) (H in lakhs)

Note Particular Gross Block Depreciation Net Block
01.04.2017 Addition Deduction Total 01.04.2017 For the year Written Total 31.03.2018 31.03.2017
back
4 Tangible Asset
4.1 Land
4.1.1 Free hold Land 188.00 32.08 - 220.08 - - - - 220.08 188.00
4.1.2 LeasedHold Land 36.66 - - 36.66 0.49 0.49 - 0.98 35.68 36.17
4.2 F Building 1,451.92 85.64 - 1,537.56 48.03 62.25 - 110.28 1,427.28 1,403.89
4.3 plant & machinery 6,086.43 902.69 2.59 6,986.53 395.72 454.52 0.83 849.41 6,137.12 5,690.71
4.4 Furniture 12.81 1.82 - 14.63 3.98 3.47 - 7.45 7.18 8.83
4.5 Vehicles 24.35 - - 24.35 4.74 4.74 - 9.48 14.87 19.61
4.6 Office Equipment 70.79 15.54 0.02 86.31 13.65 24.25 0.02 37.88 48.43 57.14
Total H 7,870.96 1,037.77 2.61 8,906.12 466.61 549.72 0.85 1,015.48 7,890.64 7,404.35
5 Other Intangible Assets
5.1 Software 41.06 5.29 - 46.35 9.73 12.11 - 21.84 24.51 31.33
Grand Total 7,912.02 1,043.06 2.61 8,952.47 476.34 561.83 0.85 1,037.32 7,915.15 7,435.68
Note 3-4. Property, Plant and Equipment (2018-19) (H in lakhs)

back
4 Tangible Asset
4.1 Land
4.1.1 Free hold Land 220.09 0.73 - 220.82 - - - - 220.82 220.09
4.1.2 LeasedHold Land 36.66 - - 36.66 0.97 0.49 - 1.46 35.20 35.69
4.2 F Building 1,537.55 615.60 - 2,153.15 110.28 68.12 - 178.40 1,974.74 1,427.27
4.3 plant & machinery 6,986.53 1,470.20 21.43 8,435.29 849.41 487.57 0.32 1,336.66 7,098.63 6,137.12
4.4 Furniture 14.63 37.90 - 52.53 7.44 2.41 - 9.86 42.67 7.19
4.5 Vehicles 24.35 - - 24.35 9.49 4.51 - 14.00 10.35 14.86
Total (4) 8,906.12 2,151.26 21.56 11,035.82 1,015.48 588.43 0.44 1,603.47 9,432.35 7,890.64
5.1 Software 46.35 4.56 - 50.91 21.84 7.86 - 29.70 21.20 24.51
Total (4+5) 8,952.47 2,155.81 21.56 11,086.72 1,037.32 596.29 0.44 1,633.17 9,453.55 7,915.15
Note 5. Investment (H in lakhs)

31.03.2019 31.03.2018
5.1.1 National Saving Certificate 0.14 0.14
5.2 Unquoted
Non Trade Investment in equity instruments
5.2.1 Sahkari Audhyogik Vasahat LIMITED 0.01 0.01
(1 Share of H.500/-)
5.2.2 The Cosmos Co-operative Bank Ltd.
(1000 Equity Shares of H100/- each) 1.00 1.00
Trade Investment in equity instruments
5.2.3 Kriti Auto Engineering & Plastic Private Limited (100% Subsidiary) 777.00 777.00
(3885000 Shares of H10/- each )
Total 778.15 778.15

Note 6. Loans (H in lakhs)

31.03.2019 31.03.2018
6.1 Security Deposits 191.96 163.72
Total 191.96 163.72
Note 7. Other Financial Assets

31.03.2019 31.03.2018
7.1 Fixed deposit with banks having maturity more than 12 months 0.74 41.84
Total 0.74 41.84
Note 8. Other Non Current Assets

31.03.2019 31.03.2018
8.1 Deposit to wholly owned subsidiary company 206.00 222.00
8.2 Met Credit Entitlement 40.46 -
Total 246.46 222.00
Note 9. Inventories
31.03.2019 31.03.2018
9.1 Raw Material 3,157.14 3,150.16
9.2 Finished Goods 7,435.63 5,917.80
9.3 Stores and Spares & others 430.81 372.35
Total 11,023.58 9,440.31
Note 10. Trade Receivables

31.03.2019 31.03.2018
10.1 Trade Receivables
Unsecured considered good 6,200.80 4,358.30
Total 6,200.80 4,358.30
Trade receivables
Secured, considered good - -
Unsecured, considered good 6,200.80 4,358.30
Trade Receivables which have significant increase in Credit Risk - -
Less: Impairment for trade receivable
Trade Receivables - credit impaired -
Current trade receivables 6,200.80 4,358.30
No trade or other receivable are due from directors or other officers of the Company either
severally or jointly with any other person. Nor any trade or other receivable are due from firm
or private companies respectively in which any director is a partner, a director or a member
other than stated above.
Note 11. Cash and Cash Equivalents

31.03.2019 31.03.2018
11.1 Balances with Banks 0.60 10.02
11.2 Fixed deposit with banks against margin money (Maturity less than 3 months) 113.30 107.93
11.3 Cash on hand 2.38 1.85
Total 116.28 119.80

Note 12. Other Bank Balances (H in lakhs)

31.03.2019 31.03.2018
12.1 Unpaid dividend 16.02 16.30
12.2 Fixed deposit with banks against margin money (Maturity less than 12 months) 1,060.42 952.39
Total 1,076.44 968.69
Note 13. Loans

31.03.2019 31.03.2018
13.1 Unsecured, Considered good 1,488.02 1,126.09
Advances recoverable in cash or kind or for value to be recieved
Total 1,488.02 1,126.09
Note 14. Other Current Assets

31.03.2019 31.03.2018
14.1 Sundry Deposits 26.99 22.58
14.2 Advance Tax/ Tax Deducted at source 15.87 36.07
14.3 CENVAT 16.74 15.52
14.4 Accrued Interest/ Income 60.18 198.01
Total 119.78 272.18
Note 15. Share Capital

31.03.2019 31.03.2018
15.1 AUTHORIZED
15.1.1 80000000 Equity Shares of H1/- each 800.00 800.00
15.1.2 16000000 Optional convertible Preference Shares of H10/- each 200.00 200.00
15.2 ISSUED, SUBSCRIBED AND PAID UP
15.2.1 49603520 equity shares of H1/- each fully paid up. which are issued as fully paid up
Shares on 27.01.2010 on account of scheme of arrangement as approved by the
Hon'ble High Court of M.P. Indore Bench
15.2.2 Reconciliation of shares
15.2.2.1 Opening Balance of 49603520 shares of H1/- each Total 496.04 496.04
15.2.2.2 Issued during the year - -
15.2.2.3 Closing Balance 49603520 shares of H1/- each 496.04 496.04
The Company has issued only one class of shares referred to as equity shares having a par
value of H1 each. Holder of the equity share as referred in the records of the Company as of
date of the shareholder's meeting is referred to one vote in respect of each share held for
all matters submitted to vote in the shareholder's meeting. The Company declares and pays
dividends in Indian rupees. In the event of liquidation of the Company the holders of equity
shares will be entitled to receive any of the remaining assets of the Company after distribution
of all preferential amounts.
496.04 496.04
15.3 Shareholder holding more than 5 % of shares of the Company and its percentage
15.3.1 Sakam Trading Private Limited
No. of Shares 25843673 25843673
% of Shares 52.10% 52.10%
Pursuant to the Hon'ble High Court of M.P. order dated 1.11.2011 approving the scheme of
amalgamation of promoter group companies viz Kriti Corporate Services Pvt.Ltd., Kriti Auto
Accessories Private Ltd., Kasta Pipes Pvt.Ltd.and Shipra Pipes Pvt Ltd. with Sakam Trading Pvt.
Ltd., the Shareholding of the above transferor companies are vested in Sakam Trading Pvt.
Ltd. Thus Sakam Trading Pvt.Ltd. becomes holding company w.e.f.27.02.12 of Kriti Industries
(I) Ltd.
15.3.2 Chetak Builders Private Limited
No. of Shares 4488793 4469258
% of Shares 9.05% 9.01%

Note 16. Reserves & Surplus (H in lakhs)

31.03.2019 31.03.2018
16.1 RESERVES
16.1.1 General Reserve
16.1.1 Opening Balance 3,375.00 3,175.00
167.1.2 Add: Transfer from P&L 50.00 200.00
16.1.3 Add: Transfer from Contingency Reserves -
16.1.4 Closing Balance 3,425.00 3,375.00
16.2 SHARE PREMIUM ACCOUNT
16.2.1 Opening Balance 466.14 466.14
16.2.2 Add: Transfer from P&L - -
16.2.3 Closing Balance 466.14 466.14
16.3 SHARE FOREFEITURE ACCOUNT
16.3.1 Opening Balance 2.73 2.73
16.3.3 Closing Balance 2.73 2.73
16.4 SURPLUS
16.4.1 Statement of Profit & Loss
16.4.1 Opening Balance 3,617.20 2,988.50
16.4.1.2 Add Profit & Loss during the period 661.50 922.46
4,278.70 3,910.96
Less:
16.4.2 Final Dividend @ H0.15 per share 74.41 74.40
16.4.3 Corporate Dividend Tax 15.29 15.16
16.4.4 Transferred to General Reserve 50.00 200.00
16.4.5 Amortization of Leasehold Land
16.4.6 Amortization of Term Loan Fees
16.4.7 Other Comprehensive Income 4.20
Balance in Surplus 4,139.01 3,617.20
16.5.1 Opening Balance - 3.08
16.5.2 Movement in OCI during the year 0.29 (3.08)
16.5.3 Closing Balance 0.29 -
Total 8033.17 7461.08
Note 17. Financial Liabilities

31.03.2019 31.03.2018
17.1 TERM LOAN
(Installment due within 12 months shown in Current Liabilities)
17.1.1 SECURED
17.1.1.1 From Banks
Term of Repayment of Long Term Borrowings
Particulars Total tenure Rate of Interest
HDFC 24 Quarterly Installment 11.50% 400.00 600.00
HDFC 21 Monthly Installment 9.80% 0.00 124.44
Yes Bank 9 Quarterly Installment 10.50% (0.00) 89.98
Yes Bank 6 Quarterly Installment 10.50% - (0.00)
Yes Bank 16 Quarterly Installment 10.50% 328.13 515.62
HDFC BANK T/L(16.5) 18 Quarterly Installment 10.30% 1,466.65 -
Total 2,194.78 1,330.03
(Above loans are secured by First charge/ Mortgage on fixed assets of the Company and personal guarantee of Managing Director)

Note 18. Deferred Tax Liability Net (H in lakhs)

31.03.2019 31.03.2018
18.1 Deferred Tax Liability (Net)
On account of tax effects on timing difference arising due to difference in Depreciation 1,271.56 1,073.23
Total 1,271.56 1,073.23
Note 19. Other Non Current Liabilities (H in lakhs)

31.03.2019 31.03.2018
19.1.2 Loans & Advances from Related parties 800.00 -
(Long Term Deposit received from Kriti Nutrients Ltd.)
19.1.1 Other Loans and advances 233.44 211.52
(Security Deposit received from dealers)
Total 1,033.44 211.52
Note 20. Short Term Borrowings

31.03.2019 31.03.2018
20. 1 Loans repayble on Demand
20.1.1 SECURED
From banks 3,202.52 3,148.51
(Secured by hypothecation of finished goods, Raw material, Stock in process, store and spares,
sundry debtors, export bills, receivables and second charge on fixed assets of the Company
and personal gurantee of Managing director)
20.1.2 UNSECURED
20.1.2.1 From banks 800.00 500.00
20.1.2.2 From others - 75.00
20.1.2.3 Loans & Advances from Related parties 413.00 210.00
Total 4,415.52 3,933.51
Note 21. Trade Payables

31.03.2019 31.03.2018
21.1 Trade Payables
(a) Total outstanding dues of micro enterprises and small enterprises -
(b) Total outstanding dues of creditors other than micro and small enterprises 11,989.49 9,578.07
Total 11,989.49 9,578.07
Note 22. Other

31.03.2019 31.03.2018
22.1 Current maturities of Long term debt 785.26 882.63
22.2 Unpaid dividends 16.02 16.30
Total 801.28 898.93
Note 23. Other Current Liabilities

31.03.2019 31.03.2018
23.1 Outstanding Expenses 103.62 150.79
23.2 Statutory Liabilities 92.99 83.94
23.3 Employee Payable 245.59 161.20
Total 442.20 395.93

Note 24. Provisions (H in lakhs)

31.03.2019 31.03.2018
24.1 Provision for Employees Benefits (Bonus) 74.12 65.90
24.2 Provision for Doubtful debts 11.35 11.38
Total 85.47 77.28
Note 25. Revenue from Operations

31.03.2019 31.03.2018
25.1 Sale of Products 56,864.74 44,380.44
25.2 Other operating revenues 36.83 44.11
Total 56,901.57 44,424.55
Note 26. Other Income

31.03.2019 31.03.2018
26.1 Interest Income 125.59 93.52
26.2 Dividend Income - -
26.3 VAT/CST Reimbur 28.30 167.63
26.4 Net gain on sale of Asset - 4.47
26.5 Net loss on foreign currency transactions 38.68 -
26.6 Other Non-operating Income 19.53 34.42
Total 212.12 300.04
Note 27. Excise Duty

31.03.2019 31.03.2018
27.1 Excise Duty - 1,660.78
Total - 1,660.78
Note 28. Employee Benefits Expenses

31.03.2019 31.03.2018
28.1 Salaries & Wages 1,833.67 1,434.14
28.2 Contribution to provident and other fund 166.83 91.00
28.3 Staff Welfare Expenses 83.12 61.65
28.4 Director Remuneration 87.36 117.00
28.5 P.F on Director Remuneration 7.20 7.20
Total 2,178.18 1,710.99
Note 29. Financial Cost

31.03.2019 31.03.2018
29.1 Interest Expenses 1,238.43 1,061.81
29.2 Other Borrowing Cost 238.77 191.13
Total 1,477.20 1,252.94

Note 30. Other Expenses (H in lakhs)

31.03.2019 31.03.2018
(I)
30.1 Stores and Spares Consumed 287.15 253.51
30.2 Power Charges 1,778.72 1,405.26
30.3 Freight & Cartage 522.91 322.89
30.4 Repairs & Maintenance 134.29 145.93
30.5 Insurance Charges 19.11 21.55
30.6 Water Charges 34.89 20.76
30.7 Loss on Sale of Fixed asset 0.51 -
30.8.1 Excise Duty on Closing Stock - -
30.8.2 Excise Duty on Opening Stock - (477.33)
30.9 Job Work Charges 137.48 92.97
30.10 Miscellaneous Manufacturing Expenses 121.51 55.23
Sub Total (I) 3,036.57 1,840.77
(II)
30.11 Stationery & Printing 8.75 7.26
30.12 Computer Expense 5.71 10.76
30.16 Rent, Rates and Taxes 71.52 63.84
30.14 Postage, Telegram and Telephones 16.83 20.03
30.15 Auditor's Fees 2.50 2.50
30.16 Conveyance Expenses 106.75 73.52
30.17 Legal & Professional Charges 187.59 63.35
30.18 Miscellaneous Expenses 43.66 51.95
30.19 Director's Meeting Fee 4.10 2.70
30.20 Net loss on foreign currency transactions - 44.14
30.21 Corporate Social Responsibility 1.60 7.26
Sub Total (II) 449.01 347.29
(III)
30.22 Advertisement & Publicity 0.36 0.10
30.23 Sales Promotion Expenses 200.64 245.92
30.24 Market Development Expenses 163.06 138.81
30.25 Brokerage & Commission 12.53 15.01
30.26 Service Charges 96.30 178.51
30.27 Freight Outward 1,218.57 391.46
30.28 Statutory Levies 10.37 320.72
30.29 Travelling Expenses 266.72 166.53
30.30 Expected credit Loss - 3.72
30.31 Bad Debts 5.27 -
Sub Total (III) 1,973.82 1,460.78
TOTAL ( I+II+III ) 5,459.40 3,648.85

Note 31. In the opinion of the Board of Directors of the Company, the Current Assets, Loans and Advances have a value realizable in the
ordinary course of business at least equal to the amount at which they are stated and provisions for all known liabilities are adequate and not
in excess of the amount reasonably necessary.
Note 32. Contingent liabilities

32.1 Estimated amount of contracts remaining to be executed on Capital Account H39.02 lakhs net of advance given (Previous Year H229.55
lakhs)
32.2 Bank has given guarantee on behalf of the Company to various parties to the extent of H871.73 lakhs (Previous Year H258.68 lakhs.)
32.3 Claims not acknowledge by the Company on Commercial tax matters H245.63 lakhs (total demand H461.43 lakhs less demand deposited
H215.80 lakhs) (Previous Year 243.50 lakhs).
Note 33. Remuneration Paid/Payable to Managing Director / Executive Director (H in lakhs)

Paid / Payable (HIn lakhs) Current Year Previous year
Remuneration 79.20 79.20
Commission 15.36 45.00
Total 94.56 124.20
Note 34. Unpaid overdue amount due on 31st March 2019 to Micro Small and Medium Enterprises and/or ancillary industrial suppliers on
account of principal together with interest aggregate to H Nil.
This disclosure is on the basis of the information available with the Company regarding the status of the suppliers as defined under the
Micro, Small and Medium Enterprises Development Act, 2006.
Note 35. The amount of Foreign Exchange gain/ (loss) included in the profit & loss account is H38.68 lakhs (Previous Year gain/ (loss) H(44.14)
lakhs).
Note 36. Corporate Social Responsibility

Paid / Payable (H In lakhs) 2018-19 2017-18
Amount required to be spent 31.00 24.49
Amount spent during the year 1.60 7.26
Note 37. The disclosure required as per Indian Accounting Standard (IndAS) 19 “Employees Benefit” issued by the Institute of Chartered
Accountants of India (ICAI) and as specified under section 133 of the Companies Act, 2013 ( The Act ) read with rule 7 of the Companies
(Accounts ) Rules, 2014., and based on the report generated by Life Insurance Corporation of India (LIC) is as under
(a) The Company has taken Group Gratuity and Cash Accumulation Policy issued by the LIC, which is a defined benefit plan.
31/03/2019 31/03/2018
(b) Table showing changes in present value of obligations as on
Present value of obligations as at beginning of the year 170.96 149.93
Interest Cost 13.68 11.99
Current Service Cost 18.32 16.87
Benefit Paid (25.11) (12.03)
Actuarial (gain)/loss on obligations (0.29) 4.20
Present value of obligations as at end of the year 177.55 170.96
(c) Table showing changes in the fair value of plan assets as on
Fair value of the plan assets at the begining of the year 192.62 168.44
Expected return on plan assets 14.80 13.20
Contribution 13.77 23.01
Benefit Paid (25.11) (12.03)
Actuarial gain/ (loss) on plan assets NIL NIL
Fair value of the plan assets at the end of the year 196.09 192.62
(d) Table showing fair value of plan assets as on

31/03/2019 31/03/2018
Fair value of plan assets at beginning of the year 192.62 168.44
Actual return on plan assets 14.80 13.20
Contribution 13.77 23.01
Benefit Paid (25.11) (12.03)
Fair value of the plan assets at the end of the year 196.09 192.62
Funded status 18.54 21.66
Excess of actual over estimated return on plan assets NIL NIL
(Actual Rate of return estimated rate of return as ARD falls on 31/03/2019)
(e) Actuarial Gain/Loss recognized as on
Actuarial (Gain)/Loss for the year-obligation 0.29 (4.20)
Actuarial (Gain)/Loss for the year-plan assets NIL NIL
Acturial (Gain)/Loss for the year (0.29) 4.20
Actuarial (Gain)/Loss recognized for the year (0.29) 4.20
(f ) Expenses recognised during the year
In statement of profit and loss
Current Service Cost 18.32 16.87
Interest cost 13.68 11.99
Expected return on Plan Asset (14.80) (13.20)
Net Cost 16.90 15.66
In other Comprehensive Income
Acturial (Gain)/Loss on obligation for the period (0.29) 4.20
Net (income)/Expense for the period recognised in OCI (0.29) 4.20
(g) Assumption
Discount rate 7.50% 8.00%
Salary Escalation 7.00% 7.00%
Note 38. Deferred Tax Calculations

Sr. DEFFERED TAX LIABILITY/ (ASSETS) Current Year Previous Year
No.
a. DEFFERED TAX LIABILITY (NET) FOR THE YEAR 198.33 160.01
b. OPENING BAL. OF DEFFERED TAX LIABILITY 1073.23 913.22
c. CLOSING BAL. OF DEFFERED TAX LIABILITY 1271.56 1073.23
Note 39. Operating Leases

(a) the total of future minimum lease payments under non- cancellable operating leases for each of the following periods:
(i) not later than one year; H16.59 lakhs
(ii) later than one year and not later than five years; NIL
(iii) later than five years. NIL
(b) The total of future minimum sublease payments expected to be received under non- cancellable subleases at NIL
the end of the reportning period.
c) lease and sublease payments recognised as an expense in the period, with separate amounts for minimum lease H14.82 lakhs
payments, contingent rents, and sublease payments.
(d) The Company pays rent for office premises at Indore & depots in other cities. The lease period is for 11months with option to renew.
The payments for office premises at Indore are to related parties. None of the lease agreements have any restrictions concerning dividend,
additional debt and further issues.
40. Since the Company has presented Consolidated Financial Statements, it is not required to present segment information in the standalone
financial statements as per Ind AS 108- Operating Segments.

Note 41. Earning per Share

The Company’s share capital consists of equity share. The basic and diluted earnings per share is calculated as under:
Sr. Nature of Transaction Current Year Previous Year

No.
1. Number of Shares 49603520 49603520
2. Profit contribution for Basic EPS (H in lakhs) 661.50 922.46
3. Basic Earning Per Share 1.33 1.86
4. Diluted Earning Per Share 1.33 1.86
5. Nominal Value Per Share 1.00 1.00
Note 42. In accordance with the Indian Accounting Standard (IndAS) 24 “Related Party Disclosures” ssued by The Institute of Chartered
(Accounts ) Rules, 2014.The names of the related parties and the relevant disclosure is as under:-
(a) Name of the related party and description of relationship:
i. Key Management Personnel:

Shri Shiv Singh Mehta, Chairman & Managing Director
Smt. Purnima Mehta, Executive Director
Shri Kamal Kanodia, Chief Financial Officer
Ms. Preeti Sharma, Company Secretary
ii. Relatives of Key Management Personnel

Shri Saurabh Singh Mehta (Son of Chairman & Managing Director / Executive Director)
Smt. Devki Hirawat (Daughter of Chairman & Managing Director / Executive Director)
iii. Subsidiary Company

1) Kriti Auto & Engineering Plastics Pvt. Ltd (Wholly owned Subsidiary Company)
iv Companies/entities under the control of Key Management Personnel

1) Sakam Trading Pvt. Ltd. (Holding Company)
2) Kriti Nutrients Ltd. (Fellow Subidiary)
3) Chetak Builders Pvt. Ltd. (Fellow Subidiary)
4) Sakam Charitable Trust, Indore
The following transaction were carried out with the related parties in the ordinary course of business
(HIn lakhs)
Sr. Nature of Transaction Subsidiary Key Management Relatives of Key Companies/
No. Personnel Management entities under
Personnel the control of
Key Management
Personnel
1 DEPB License purchased NIL NIL NIL 624.99
(NIL) (NIL) (NIL) (513.55)
2 Sale of Consumable Items NIL NIL NIL 29.84
(0.38) (NIL) (NIL) (54.68)
3 Sale of Capital Goods NIL NIL NIL 0.00
(NIL) (NIL) (NIL) (2.00)
4 Purchase of Consumable Items 6.56 NIL NIL 0.11
(NIL) (NIL) (NIL) (20.96 )
5 Purchase of Capital Goods NIL NIL NIL NIL
(NIL) (NIL) (NIL) (NIL)

(HIn lakhs)
Sr. Nature of Transaction Subsidiary Key Management Relatives of Key Companies/
No. Personnel Management entities under
Personnel the control of
Key Management
Personnel
6 Remuneration NIL 94.56 NIL NIL
(NIL) (151.99) (NIL) (NIL)
7 Rent Paid NIL NIL NIL 14.82
(NIL) (NIL) (NIL) (14.14)
8 Unsecured Loan
86.00 NIL NIL NIL
Given
(249.00) (NIL) (NIL) (NIL)
Taken NIL 203.00 NIL 800
(NIL) (111.00) (NIL) (313.5)
9 Interest Received 18.91 NIL NIL NIL
(16.33) (NIL) (NIL) (NIL)
10 Interest Given NIL 35.30 NIL 10.51
(NIL) (18.57) (NIL) (NIL)
11 CSR Expenses NIL NIL NIL NIL
(NIL) (NIL) (NIL) (NIL)
*The figures mentioned in the brackets are previous year figures.

The related party transactions were made on terms equivalent to those that prevail in an arm's length transactions.
Note 43. Auditor’s Remuneration

Sr. Auditor’s Remuneration 31.03.2019 31.03.2018
No.
a. Statutory Audit/ Tax Audit Fees 2.50 2.50
b Taxation & Other matters including Legal & Professional Expenses. 0.11 0.25
Total 2.61 2.75
Figures are exclusive of taxes
Note 44. A. Capital Management

For the purpose of Company’s Capital Management, capital includes Issued Equity Capital, Securities Premium, and all other Equity Reserves
attributable to the Equity Holders of the Company. The primary objective of the Company’s Capital Management is to maximise the Share
Holder Value.
The Company monitors using a gearing ratio which is net debts divided by total capital plus net debt. The Company includes within net debt,
interest bearing loans and borrowings, less cash and short term deposit.
Particulars As at As at
31st March 2019 31st March 2018
Interest Bearing Loans and Borrowings 2194.78 1330.03
Current maturities of Long Term debts 785.26 882.63
Gross Debt 2980.04 2212.66
Less: Cash and Cash Equivalents 116.28 119.80
Net Debt(A) 2863.76 2092.86
Total Equity (as per Balance Sheet) (B) 8529.21 7957.12
Net Gearing (A/B) 0.34 0.26

B. Financial Risk Management

The Company’s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial
liabilities is to finance the operations of the Company. The principal financial assets include trade and other receivables and cash and short
term deposits.
The Company has assessed market risk, credit risk and liquidity risk to its financial liabilities.
i. Market Risk
Is the risk of loss of future earnings, fair values or cash flows that may result from change of interest rates, foreign exchange rates and
other price risks. Financial instruments affected by market risks, primarily include loans & borrowings and foreign currency payables.
Company’s Term Loans & Working Capital interest rates are linked to 1 year MCLR rate, reset annually. Short Term Borrowings as and when
taken are governed by prevailing rates at the time of disbursement.
If the interest rates had been 1% higher / lower and all other variables held constant, the Company’s profit for the year ended 31st March
2019 would have been decreased/ increased by H125.73 lakhs.
The Company is exposed to risk with regard to foreign currency payables.
The Company is affected by the price volatility of Polymer prices. The Company enters into purchase contracts on a short term and
forward foreign exchange contracts(matching the purchase contracts) are entered into to minimise price fluctuations.
ii. Credit Risk

Is the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Company. It arises from cash
and cash equivalents as well as credit exposure to customers.
The Company holds cash and cash equivalents with banks which are having highest safety rankings and hence has a low credit risk.
Company’s marketing policies & credit period is determined on the basis of segments sales history and credit worthiness of the
customers. The sales affected through dealer network is normally 7-10 days credit period & in institutional sales some customers open
Letters of Credit and some large corporate enjoys the credit facilities ranging 30-90 days.
iii. Liquidity Risk

The Company manages liquidity risk by maintaining adequate surplus, banking facilities and reserve borrowings facilities by continuously
monitoring forecasts and actual cash flows.
The Company has a system of forecasting next month cash inflow and outflow and all liquidity requirements are planned.
All Long term borrowings are for a fixed tenor and generally these cannot be foreclosed.
The Company has access to various source of Short term funding and debit maturing within 12 months can be rolled over with existing
lenders/new lenders, or repaid based on short term requirements. Trade and other payables are plugged as per credit terms and paid
accordingly.
All payments are made along due dates and requests for early payments are entertained after due approval and availing early payment
discounts
Note 45. The Board of Directors have recommended dividend of H 0.15/- Per fully paid up equity share of H1/- each, aggregating H8969950/-
including H1529417/- dividend distribution tax for the financial year 2018-19, which is based on The actual dividend amount will be dependent
on the relevant share capital outstanding as on the record date/book closure relevant share capital as on 31st March 2019.
Note 46. The amendments to standards that are issued, but not yet effective, up to the date of issuance of the Company’s financial
statements are disclosed below. The Company intends to adopt these standards, if applicable, when they become effective. The Ministry
of Corporate Affairs (MCA) has issued the Companies (Indian Accounting Standards) Amendment Rules, 2017 and Companies (Indian
Accounting Standards) Amendment Rules, 2018 amending the following standard:
I) Ind AS 116 Leases

Ind AS 116 Leases was notified by MCA on 30 March 2019 and it replaces Ind AS 17 Leases, including appendices thereto. Ind AS 116
is effective for annual periods beginning on or after 1 April 2019. Ind AS 116 sets out the principles for the recognition, measurement,
presentation and disclosure of leases and requires lessees to account for all leases under a single on-balance sheet model similar to the
accounting for finance leases under Ind AS 17. The standard includes two recognition exemptions for lessees – leases of ‘low-value’ assets
(e.g., personal computers) and short-term leases (i.e., leases with a lease term of 12 months or less). At the commencement date of a lease, a

lessee will recognise a liability to make lease payments (i.e., the lease liability) and an asset representing the right to use the underlying asset
during the lease term (i.e., the right-of-use asset). Lessees will be required to separately recognise the interest expense on the lease liability
and the depreciation expense on the right-of-use asset.
Lessees will be also required to remeasure the lease liability upon the occurrence of certain events (e.g., a change in the lease term, a change
in future lease payments resulting from a change in an index or rate used to determine those payments). The lessee will generally recognise
the amount of the remeasurement of the lease liability as an adjustment to the right-of-use asset.
Lessor accounting under Ind AS 116 is substantially unchanged from today’s accounting under Ind AS 17. Lessors will continue to classify
all leases using the same classification principle as in Ind AS 17 and distinguish between two types of leases: operating and finance leases.
The Company intends to adopt these standards from 1 April 2019. The impact on adoption of Ind AS 116 on the financial statements is not
material. Accordingly, comparatives for the year ending or ended 31st March 2019 will not be retrospectively adjusted.
Note 47. Approval of Financial Statements

The financial statements are approved for issue by the Board of Directors in their meeting held on 16.05.2019.
Note 48. Previous year figures have been reclassified / regrouped wherever necessary.
F.R.N. 002150C
M.No. 070906 DIN: 00023523 DIN: 00023632
Place: Indore

Consolidated
Financial Statements

Independent Auditor’s Report
To
The Members,
Report on the Audit of the Consolidated Financial Statements:
Opinion Basis for Opinion

We have audited the accompanying consolidated financial We conducted our audit of the Consolidated financial statements
statements of KRITI INDUSTRIES (INDIA) LIMITED (“the Company”) in accordance with the Standards on Auditing (SAs) specified
and its subsidiary (the Company and its subsidiary together referred under Section 143(10) of the Companies Act, 2013. Our
to as “the Group”), which comprises the Consolidated Balance Sheet Responsibilities under those Standards are further described in
as at 31st March 2019, the Consolidated Statement of Profit and the Auditor’s Responsibilities for the Audit of the Consolidated
Loss (including other Comprehensive Income), the Consolidated Financial Statements section of our report. We are independent
Statement of Changes in Equity and the Consolidated Statement of the Group in accordance with the Code of Ethics issued by the
of Cash Flows for the year then ended, and notes to the financial Institute of Chartered Accountants of India together with the ethical
statements, including a summary of significant accounting policies requirements that are relevant to our audit of the consolidated
and other explanatory information (hereinafter referred to as “the financial statements under the provisions of the Companies Act,
Consolidated Financial Statements”). 2013 and the Rules thereunder, and we have fulfilled our other
ethical responsibilities in accordance with these requirements and
In our opinion and to the best of our information and according
the Code of Ethics. We believe that audit evidence we have obtained
to the explanations given to us, the aforesaid consolidated financial
is sufficient and appropriate to provide a basis for our opinion on
statements give the information required by the Companies Act,
our consolidated financial statements.
2013 in the manner so required and give a true and fair view in
conformity with the Indian Accounting Standards prescribed under Key Audit Matters
Section 133 of the Act read with the Companies (Indian Accounting Key audit matters are those matters that, in our professional
Standards) Rules , 2015 as amended, (“Ind AS”) and other accounting judgment, were of most significance in our audit of the consolidated
principles generally accepted in India, of the consolidated state of financial statements of the current period. These matters were
affairs of the Group as at 31st March 2019, the consolidated profit addressed in the context of our audit of the consolidated financial
, consolidated total comprehensive income, consolidated changes statements as a whole, and in forming our opinion thereon, and
in equity and its consolidated cash flows for the year ended on that we do not provide a separate opinion on these matters. We have
date. determined the matters described below to be the key audit
matters to be communicated in our report.
Key Audit Matter Auditor’s Response

Provisions and Contingent liabilities in respect of certain litigations Our audit approach involved:-
including Direct and Indirect Taxes not acknowledged as debt. a. Understanding the current status of the litigations/tax
(Note No. 32.3 read with Note No. 2.3 to the consolidated financial assessments;
statements):
b. Examining communication received from various Tax
The Group has material uncertain tax positions including matters
Authorities/ Judicial forums and follow up action thereon;
under dispute which involves significant judgment to determine
c. Evaluating the merit of the subject matter under consideration
the possible outcome of these disputes. The Group’s assessment
with reference to available independent legal / tax advice;
is supported by the facts of matter, their own judgment, past
and
experience, and advices from legal and independent tax consultants
wherever considered necessary. Accordingly, unexpected adverse d. Review and analysis of evaluation of the contentions of the
outcomes may significantly impact the Group’s reported profit and Group through discussions, collection of details of the subject
the Balance Sheet. matter under consideration and the likely outcome.
We determined the above area as a Key Audit Matter in view of
associated uncertainty relating to the outcome of these matters.

Information Other than the Consolidated Financial Board of Directors either intends to liquidate the Group or to cease
Statements and Auditor’s Report Thereon: : operations, or has no realistic alternative but to do so.
The Company’s Board of Directors is responsible for the preparation
The respective Board of Directors of the companies included in the
of the other information. The other information comprises the
Group are also responsible for overseeing the financial reporting
information included in the Management Discussion and Analysis,
process of the Group.
Board’s Report including Annexures to Board’s Report, Business
Responsibility Report, Corporate Governance and Shareholder’s Auditor’s Responsibilities for the Audit of the Consolidated
Information (“the Other Information”), but does not include the Financial Statements:
consolidated financial statements and our auditor’s report thereon. Our objectives are to obtain reasonable assurance about whether
the consolidated financial statements as a whole are free from
Our opinion on the consolidated financial statements does not
material misstatement, whether due to fraud or error, and to issue
cover the other information and we do not express any form of
an auditor’s report that includes our opinion. Reasonable assurance
assurance conclusion thereon.
is a high level of assurance, but is not a guarantee that an audit
In connection with our audit of the consolidated financial conducted in accordance with the SAs will always detect a material
statements, our responsibility is to read the other information and, misstatement when it exists. Misstatements can arise from fraud or
in doing so, consider whether the other information is materially error and are considered material if, individually or in the aggregate,
inconsistent with the consolidated financial statements or our they could reasonably be expected to influence the economic
knowledge obtained during the course of our audit or otherwise decisions of the users taken on the basis of these consolidated
appears to be materially misstated. financial statements.
If, based on the work we have performed, we conclude that there is As part of an audit in accordance with SAs, the auditor exercises
a material misstatement of this other information, we are required professional judgment and maintains professional skepticism
to report that fact. We have nothing to report in this regard. throughout the audit. We also:
Responsibilities of Management and Those Charged with • Identify and assess the risks of material misstatement of the
Governance for the Consolidated Financial Statements: consolidated financial statements, whether due to fraud or
The Holding Company’s Board of Directors is responsible for the error; to design and perform audit procedures responsive
preparation and presentation of these consolidated financial to those risks; and to obtain audit evidence that is sufficient
statements in terms of requirements of the Companies Act , and appropriate to provide a basis for our opinion. The risk of
2013 (“the Act”) that give a true and fair view of the consolidated not detecting a material misstatement resulting from fraud is
financial position, consolidated financial performance, consolidated higher than for one resulting from error, as fraud may involve
total comprehensive income, consolidated changes in equity collusion, forgery, intentional omissions, misrepresentations, or
and consolidated cash flows of the Group in accordance with the the override of internal control.
accounting principles generally accepted in India, including the
• Obtain an understanding of internal financial controls relevant
Indian Accounting Standards specified under Section 133 of the
to the audit in order to design audit procedures that are
Act. The respective Board of Directors of the companies included
appropriate in the circumstances. Under section 143(3)(i) of the
in the Group are responsible for the maintenance of the adequate
Companies Act, 2013, we are also responsible for expressing
accounting records in accordance with the provisions of the Act
our opinion on whether the Company and its subsidiary has
for safeguarding of the assets of the Group and for preventing and
adequate internal financial controls system in place and the
detecting frauds and other irregularities; selection and application of
operating effectiveness of such controls.
appropriate accounting policies; making judgments and estimates
that are reasonable and prudent; and design, implementation and • Evaluate the appropriateness of accounting policies used
maintenance of adequate internal financial controls, that were and the reasonableness of accounting estimates and related
operating effectively for ensuring the accuracy and completeness of disclosures made by management.
the accounting records, relevant to the preparation and presentation • Conclude on the appropriateness of management’s use of the
of the consolidated financial statements that give a true and fair going concern basis of accounting and, based on the audit
view and are free from material misstatement, whether due to fraud evidence obtained, whether a material uncertainty exists
or error which have been used for the purpose of preparation of the related to events or conditions that may cast significant doubt
consolidated financial statements by the Directors of the Holding on the ability of the Group to continue as a going concern. If
Company, as aforesaid. we conclude that a material uncertainty exists, we are required
In preparing the consolidated financial statements, the respective to draw attention in our report to the related disclosures in the
Board of Directors of the companies included in the Group is consolidated financial statements or, if such disclosures are
responsible for assessing the Group’s ability to continue as a going inadequate, to modify the opinion. Our conclusions are based
concern, disclosing, as applicable, matters related to going concern on the audit evidence obtained up to the date of our audit
and using the going concern basis for accounting unless the report. However, future events or conditions may cause the
Group to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the Comprehensive Income, Consolidated Statement of
consolidated financial statements, including the disclosures, Changes in Equity and the Consolidated Statement of
and whether the consolidated financial statements represent Cash Flow dealt with by this Report are in agreement with
the underlying transactions and events in a manner that the relevant books of account maintained for the purpose
achieves fair presentation. of preparation of the consolidated financial statements.
• Obtain sufficient appropriate audit evidence regarding the (d) In our opinion, the aforesaid consolidated financial
financial information of the entities or business activities within statements comply with the Indian Accounting Standards
the Group to express an opinion on the consolidated financial specified under Section 133 of the Act, read with Rule 7 of
statements. We are responsible for the direction, supervision the Companies (Accounts) Rules, 2014.
and performance of the audit of the financial statements of
(e) On the basis of the written representations received from
such entities included in the consolidated financial statements
the directors of the Holding Company and its Subsidiary
of which we are the independent auditors.
as on 31st March 2019 taken on record by the respective
Materiality is the magnitude of misstatements in the consolidated Board of Directors of the Company, none of the directors
financial statements that , individually or in aggregate , makes of the companies included in the Group is disqualified as
it probable that the economic decisions of a reasonably on 31st March 2019 from being appointed as a director in
knowledgeable user of the financial statements may be influenced. terms of Section 164 (2) of the Act.
We consider quantitative materiality and qualitative factors in
(f ) With respect to the adequacy of the internal financial
(i) planning the scope of our audit work and in evaluating the
controls over financial reporting of the Company and
results of our work; and (ii) to evaluate the effect of any identified
the operating effectiveness of such controls , refer to
misstatements in the financial statements.
our separate report in “Annexure – A” which is based
We communicate with those charged with governance regarding, on the auditor’s report of the Holding Company and its
among other matters, the planned scope and timing of the audit subsidiary. Our report expresses an unmodified opinion
and significant audit findings, including any significant deficiencies on the adequacy and the operating effectiveness of the
in internal control that we identify during our audit. internal financial controls over financial reporting of those
companies , for reasons stated therein.
We also provide those charged with governance with a statement
that we have complied with relevant ethical requirements regarding (g) With respect to the other matters to be included in
independence and communicate with them all relationships and the Auditor’s Report in accordance with Rule 11 of the
other matters that may reasonably be thought to bear on our Companies (Audit and Auditors) Rules, 2014, in our
independence, and where applicable, related safeguards. opinion and to the best of our information and according
to the explanations given to us:
From the matters communicated with those charged with
governance, we determine those matters that were of most i. The Consolidated financial statements has disclosed
significance in the audit of the consolidated financial statements the impact of pending litigations on the consolidated
of the current period and are therefore the key audit matters. We financial position of the Group - Refer Note 32.3 to the
describe these matters in our auditor’s report unless law or regulation consolidated Ind AS financial statements.
precludes public disclosure about the matter or when, in extremely
ii. The Group did not have any long-term contracts
rare circumstances, we determine that a matter should not be
including derivative contracts for which there were
communicated in our report because the adverse consequences
any material foreseeable losses.
of doing so would reasonably be expected to outweigh the public
interest benefits of such communication. iii. There was no delay in transferring amounts , required
to be transferred to the Investor Education and
Report on Other Legal and Regulatory Requirements: Protection Fund by the Holding Company and there
1) As required by Section 143 (3) of the Act, we report that: was no amount required to be transferred by the
(a) We have sought and obtained all the information and subsidiary during the year ended 31st March 2019.
explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit of the
.
aforesaid consolidated financial statements.
FOR RAKESH KUMAR & ASSOCIATES
(b) In our opinion, proper books of account as required by law
relating to the preparation of the aforesaid consolidated
Firm Reg. No. : 002150C
financial statements have been kept so far as it appears
from our examination of those books. CA. RAKESH KUMAR GUPTA
(c) The Consolidated Balance Sheet, the Consolidated Place: Indore Partner
Statement of Profit and Loss including Other Date: 16th May 2019 Membership No. : 070906

“Annexure A” to the Auditor’s Report
The Annexure referred to in paragraph 1(f ) under “Report on other Legal and Regulatory Requirements” of our Independent Auditor’s Report
of even date on the consolidated Ind AS financial statements to the members of Kriti Industries (India) Limited for the year ended 31st March
2019.
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 Ind AS financial of internal financial controls over financial reporting included
statements of the Company as of and for the year ended 31 March obtaining an understanding of internal financial controls over
2019, we have audited the internal financial controls over financial financial reporting, assessing the risk that a material weakness exists,
reporting of KRITI INDUSTRIES (INDIA) LIMITED (“the Holding and testing and evaluating the design and operating effectiveness of
Company”) and its subsidiary company which are companies internal control based on the assessed risk. The procedures selected
incorporated in India, as of that date. depend on the auditor’s judgment, including the assessment of the
risks of material misstatement of the financial statements, whether
Management’s Responsibility for Internal Financial due to fraud or error.
Controls
The Respective Board of Directors of the Holding Company and its We believe that the audit evidence we have obtained is sufficient
subsidiary company, which are companies incorporated in India, and appropriate to provide a basis for our audit opinion on the
are responsible for establishing and maintaining internal financial Company’s internal financial controls system over financial reporting.
controls based on the internal control over financial reporting criteria
Meaning of Internal Financial Controls over Financial
established by the Company considering the essential components
Reporting
of internal control stated in the Guidance Note on Audit of Internal
A company's internal financial control over financial reporting is a
Financial Controls over Financial Reporting issued by the Institute of
process designed to provide reasonable assurance regarding the
Chartered Accountants of India (“ICAI’). These responsibilities include
reliability of financial reporting and the preparation of financial
the design, implementation and maintenance of adequate internal
statements for external purposes in accordance with generally
financial controls that were operating effectively for ensuring the
accepted accounting principles. A company's internal financial
orderly and efficient conduct of its business, including adherence
control over financial reporting includes those policies and
to respective company’s policies, the safeguarding of its assets, the
procedures that :
prevention and detection of frauds and errors, the accuracy and
completeness of the accounting records, and the timely preparation (1) pertain to the maintenance of records that, in reasonable detail,
of reliable financial information, as required under the Companies accurately and fairly reflect the transactions and dispositions of
Act, 2013. the assets of the Company;
(2) provide reasonable assurance that transactions are recorded

Auditors’ Responsibility
as necessary to permit preparation of financial statements in
Our responsibility is to express an opinion on the Company's
accordance with generally accepted accounting principles,
internal financial controls over financial reporting based on our
and that receipts and expenditures of the Company are being
audit. We conducted our audit in accordance with the Guidance
made only in accordance with authorisations of management
Note on Audit of Internal Financial Controls over Financial Reporting
and directors of the Company; and
(the “Guidance Note”) issued by ICAI and the Standards on Auditing,
issued by ICAI and deemed to be prescribed under section 143(10) (3) provide reasonable assurance regarding prevention or timely
of the Companies Act, 2013, to the extent applicable to an audit detection of unauthorised acquisition, use, or disposition of
of internal financial controls, both issued by ICAI. Those Standards the Company's assets that could have a material effect on the
and the Guidance Note require that we comply with ethical financial statements.
requirements and plan and perform the audit to obtain reasonable
assurance about whether adequate internal financial controls over Inherent Limitations of Internal Financial Controls Over
financial reporting was established and maintained and if such Financial Reporting
controls operated effectively in all material respects. Because of the inherent limitations of internal financial controls over
financial reporting, including the possibility of collusion or improper
Our audit involves performing procedures to obtain audit evidence management override of controls, material misstatements due to
about the adequacy of the internal financial controls system over error or fraud may occur and not be detected. Also, projections
financial reporting and their operating effectiveness. Our audit of any evaluation of the internal financial controls over financial

reporting to future periods are subject to the risk that the internal control stated in the Guidance Note on Audit of Internal Financial
financial control over financial reporting may become inadequate Controls Over Financial Reporting issued by the ICAI.
because of changes in conditions, or that the degree of compliance
with the policies or procedures may deteriorate.
Opinion
In our opinion, the Holding Company and its subsidiary company, FOR RAKESH KUMAR & ASSOCIATES
which are companies incorporated in India, have, in all material Chartered Accountants
respects, an adequate internal financial controls system over Firm Reg. No. : 002150C
financial reporting and such internal financial controls over financial
reporting were operating effectively as at 31 March 2019, based CA. RAKESH KUMAR GUPTA
on the internal control over financial reporting criteria established Place: Indore Partner
by the Company considering the essential components of internal Date: 16th May 2019 Membership No. : 070906

Consolidated Balance Sheet as on 31.03.2019
(H in lakhs)
Sr. Particulars Note No As at As at
No 31.03.2019 31.03.2018
ASSETS
(1) NON CURRENT ASSETS
(a) Property, Plant and Equipment 3 9839.22 8321.68
(b) Capital work-in-progress 67.18 49.39
(c) Other Intangible assets 4 21.20 24.51
(d) Financial Assets
(i) Investments 5 2.15 2.15
(ii) Loans 6 208.22 179.98
(iii) Other financial assets 7 0.74 41.84
(e) Other non current assets 8 40.46 0.00
Total Non Current Assets 10179.17 8619.55
(2) Current assets
(a) Inventories 9 11309.92 9754.53
(b) Financial Assets
(i) Trade receivables 10 6824.15 4841.01
(ii) Cash and cash equivalents 11 117.03 159.77
(iii) Bank balances other than (ii) above 12 1097.58 988.70
(iv) Loans 13 1495.79 1132.23
(c) Other current assets 14 124.94 276.95
Total Current Assets 20969.41 17153.19
Total Assets 31148.58 25772.74
EQUITY AND LIABILITIES
Equity
(a) Equity Share capital 15 496.04 496.04
(b) Other Equity 16 7635.53 7125.72
Total Equity 8131.57 7621.76
LIABILITIES
(1) Non-current liabilities
(i) Borrowings 17 2194.79 1330.04
(b) Deferred tax liabilities (Net) 18 1347.25 1136.28
(c) Other non-current liabilities 19 1033.42 211.52
Total non current Liabilities 4575.46 2677.84
(2) Current liabilities
(i) Borrowings 20 4614.15 4111.51
(ii) Trade payables
(a) Total outstanding dues of micro enterprises and small enterprises
(b) Total outstanding dues of creditors other than micro and small 21 12427.85 9941.87
enterprises
(iii) Other Financial Liabilities 22 801.28 898.93
(b) Other current liabilities 23 507.86 439.05
(c) Provisions 24 90.41 81.78
Total current Liabilities 18441.55 15473.14
Total Equity and Liabilities 31148.58 25772.74
Siginificant accounting policies & Notes to the accounts 1 -38
F.R.N. 002150C
M.No. 070906 DIN: 00023523 DIN: 00023632
Place: Indore

Consolidated Statement of Profit & Loss for the period ended 31.03.2019
(H in lakhs)
Particulars Note No For the year ended For the year ended
31.03.2019 31.03.2018
REVENUE
Revenue From Operations 25 58765.93 46354.96
Other Income 26 214.80 300.71
Total Income 58980.73 46655.67
EXPENSES
Cost of materials consumed 49237.03 36437.96
Changes in inventories of finished goods, (1519.13) (628.92)
Excise Duty 27 0.00 1725.87
Employee benefits expense 28 2322.67 1859.53
Finance costs 29 1517.16 1301.85
Depreciation and amortization expense 3-4 624.63 590.90
Other expenses 30 5799.75 3979.32
Total Expenses 57982.11 45266.51
Profit/(loss) before exceptional items and tax 998.62 1389.16
Exceptional Items 0.00 0.00
Profit/(loss) before tax 998.62 1389.16
Tax expense:
(1) Current tax 186.98 327.27
(2) Deferred tax 210.97 142.48
Total Tax Expenses 397.95 469.75
Net Profit/(Loss) for the period from continuing operations 600.67 919.41
Profit/(Loss) for the period from discontinued operations 0.00 0.00
Tax expense:
(i) Current tax 0.00 0.00
(ii) Deferred tax 0.00 0.00
(iii) Income Tax related earlier year 0.00 0.00
Net Profit/(Loss) for the period from discontinued operations 0.00 0.00
Net Profit/(Loss) for the period 600.67 919.41
Other Comprehensive Income
Items that will not be reclassified to profit or loss
Remeasurement of Defined Benefit Plan (1.17) (6.15)
Effective portion of Cash Flow Hegde
Total Other Comprehensive Income (1.17) (6.15)
Total Comprehensive Income for the period 599.50 913.26
Earnings per equity share
(1) Basic 1.21 1.85
(2) Diluted 1.21 1.85
F.R.N. 002150C
M.No. 070906 DIN: 00023523 DIN: 00023632
Place: Indore

Consolidated Cash Flow Statement as on 31.03.2019
(H in lakhs)
Particulars Year ended 31.03.2019 Year ended 31.03.2018
Amount Amount Amount Amount
Cash Flow From Operating Activities
Net Profit before Tax 998.62 1,389.16
Adjustments for :
Depreciation 624.60 590.90
(Profit)/ Loss on Sale of Fixed Assets - -
Financial Income 128.27 (94.20)
Financial Expense 1517.15 2270.02 1,301.85 1798.55
Cash Operating Profit before working capital changes 3268.64 3187.71
(Increase) / Decrease in Inventories (1556.64) (1,323.18)
(Increase) / Decrease in Trade Receivables (1983.13) 282.89
(Increase) / Decrease in Deposit given (28.24) 437.92
(Increase) / Decrease in Other Current Assets 152.00 563.13
(Increase) / Decrease in Loan Given (363.56) 6.69
(Increase) / Decrease in other Financial assets 41.10 (37.24)
(Increase) / Decrease in Other Non Current Assets (40.46) -
Increase / (Decrease) in Trade Payables 2485.99 1,508.18
Increase / (Decrease) in Other Financial Liabilities (97.66) (446.24)
Increase / (Decrease) in Other Current Liabilities 68.80 (468.39)
Increase / (Decrease) in Provisions 46.29 (1.86)
(1275.51) 152.38
Tax Paid (224.63) (273.54)
Net Cash From Operating Activities (A) 1768.50 3066.55
Cash Flow From Investing Activities
Financial Income (128.27) 94.20
Sale Proceed of Fixed Assets (Net) 20.61 6.23
Purchase of Fixed Assets (2177.29) (1,099.31)
Investment in Fixed Deposits having maturity of more (108.89) (153.52)
than three months
(Increase) / Decrease in Non Current Investment 0.00 -
Net Cash Used In Investing Activities (B) (2393.84) (1152.41)
Cash Flow From Financing Activities
Proceeds from Long Term Borrowings 1650.00 750.00
Repayment of Long Term Borrowings (785.25) (911.02)
Net Increase / (Decrease) in Long Term Borrowings 864.75 (161.02)
Increase / (Decrease) in Other Non Current Liability 821.91 2.89
Increase / (Decrease) in Short Term Borrowings 502.64 (229.20)
Dividend Paid on Equity Shares (89.55) (89.55)
Dividend Distribution Tax Paid - -
Financial Expenses (1517.15) (1301.85)
Net Cash Used In Financing Activities (C) 582.60 (1778.74)
Net Decrease In Cash and Cash Equivalents (A + B + C) (42.74) 135.40
ADD :Cash and cash equivalents - Opening - 1st April 159.77 24.37
Cash and cash equivalents - Closing - 31st March 2019 117.03 159.77

Consolidated Cash Flow Statement as on 31.03.2019
Footnote to Cash Flow Statement:
1. Components of Cash and Cash Equivalents are
produced as under:
Particulars 2018-19 2017-18
Cash & Cash Equivalents
Balances with Banks
Current Account 1.04 49.56
FDRs 113.30 107.93
Cash on hand 2.69 2.29
Total of Cash & Cash Equivalent 117.03 159.77
F.R.N. 002150C
M.No. 070906 DIN: 00023523 DIN: 00023632
Place: Indore

Consolidated Statement of Change in Equity for the year ended 31.03.2019
Share capital (H in lakhs)
Equity Share Capital Balances as at Changes in Balance as at Balances as at Changes in Balance as at
1st April 2017 equity share 31st March 2018 1st April 2018 equity share 31st March 2019
capital during capital during
the year the year
Paid up Capital 496.04 - 496.04 496.04 - 496.04
Other Equity
Particulars Reserves and Surplus Other Comprehensive Total
Income
General Share Contingency Share Retained Total Effective
Reserve Premium Reserve Forfeiture Earnings Cash Flow Hedge
Account Account
Balances as at 1st April 2018 3,175.00 466.14 - 2.73 2,658.15 6,302.02 (93.61) 6,208.41
Profit for the year 919.41 919.41 - 919.41
Other Comprehensive Income: (6.15) (6.15) 93.61 87.46
Final Dividend paid including (89.56) (89.56) - (89.56)
corporate dividend tax for FY
2017-18
Interim Dividend paid including - - -
Transfer to General Reserve 200.00 (200.00) - - -
Profit & Loss
Profit for the year 600.67 600.67 600.67
Other Comprehensive Income: 1.75 1.75 1.75
Final Dividend paid including (92.60) (92.60) (92.60)
Transfer to General Reserve 50.00 (50.00) - -
Profit & Loss
General Reserve
General reserves are the retained earnings of a company which are kept aside out of company's profits to meet future (known or unknown) obligations.
Share Premium Account

Share premium to be used in future to pay the expenses of issuing equity, such as underwriter fees or for issuing bonus shares to shareholders
Contingency Reserve
Contingency Reserve is created to meet any known unknowns risk which may occur in future.
Share Forfeiture Account

To use stock purchase plans to inspire employee loyalty.

1. Corporate Information
Kriti Industries (India) Ltd., a public limited company domiciled in India and incorporated under the provisions of the Companies Act,
1956 on 12.03.1990 and having its Registered office in Indore (MP). The Company’s shares are listed in the Bombay Stock Exchange (BSE).
2. Statement of Accounting Policies

2.1 Basis of Accounting
The financial statements have been prepared on the historical cost basis except for following assets and liabilities which have been
measured at fair value:
i) Certain financial assets and liabilities (including derivative instruments),
ii) Defined benefit plans - plan assets The financial statements of the Company have been prepared to comply with the Indian
Accounting standards (‘Ind AS’), including the rules notified under the relevant provisions of the Companies Act, 2013.
Upto the year ended 31st March 2017, the Company has prepared its financial statements in accordance with the requirement of Indian
Generally Accepted Accounting Principles (GAAP), which include Standards notified under the Companies (Accounting Standards)
Rules, 2006 and considered as “Previous GAAP”.
These financial statements are the Company`s first Ind AS Consolidated financial statements.
Company’s financial statements are presented in Indian Rupees (INR), which is also its functional currency.
2.2. Principles of consolidation

2.2.1. The consolidated financial statements relate to Kriti Industries (India) Limited (company) and its wholly owned subsidiary Kriti Auto
& Engineering Plastics Pvt. Ltd (KAEPPL). The consolidated financial statements have been prepared on the following basis.
a. The financial statements of the Company and its subsidiary have been combined on a line-by-line basis by adding together the
book values of like items of assets, liabilities, income and expenses, after fully eliminating intra-group balances and intra-group
transaction resulting in unrealized profits or losses.
b. The consolidated financial statements have been prepared using uniform accounting policies for like transaction and other
events in similar circumstances and are presents to the extent possible, in the same manner as the Company's separate
financial statements.
2.2.2. The subsidiary considered in the consolidated financial statements is:

Name of Company Country of incorporation % Voting Power held as at % Voting power held as at
31st March 2019 31st March 2018
Kriti Auto & Engineering India 100 100
Plastics Pvt. Ltd (KAEPPL)

2.3. Other Significant accounting Policies
These are set out in the notes to the financial statements under “Statement of accounting Policies” of financial statements of the Company
and KAEPPL.

Consolidated Notes Forming Part of the Balance Sheet and Profit & Loss Accounts
Note 3-4 Property, Plant and Equipment (2017-18) (H in lakhs)
back
3 Tangible Asset
3.1 Land
3.1.1 Free hold Land 188.00 32.08 - 220.08 - - - - 220.08 188.00
3.1.2 LeasedHold Land 85.56 - - 85.56 1.07 1.07 - 2.14 83.42 84.49
3.2 Building 1,584.59 85.64 - 1,670.23 54.66 68.88 - 123.54 1,546.69 1,529.93
3.3 Plant & machinery 6,388.80 904.23 2.59 7,290.44 418.95 474.94 0.83 893.06 6,397.38 5,969.85
3.4 Furniture 13.35 1.82 - 15.17 4.40 3.58 - 7.98 7.19 8.95
3.5 Vehicles 24.35 - - 24.35 4.74 4.74 - 9.48 14.87 19.61
Total (3) 8,358.39 1,042.63 2.61 9,398.41 498.79 578.79 0.85 1,076.73 8,321.68 7,859.60
4.1 Computer Software 41.06 5.29 - 46.35 9.73 12.11 - 21.84 24.51 31.33
TOTAL (3+4) 8,399.45 1,047.92 2.61 9,444.76 508.52 590.90 0.85 1,098.57 8,346.19 7,890.93
Note 3-4. Property, Plant and Equipment (2018-19)

back
3 Tangible Asset
3.1 Land
3.1.1 Free hold Land 220.08 0.73 - 220.81 - - - - 220.81 220.08
3.1.2 LeasedHold Land 85.56 - - 85.56 2.14 1.08 - 3.22 82.34 83.42
3.2 F Building 1,670.23 615.59 - 2,285.82 123.54 74.75 - 198.29 2,087.53 1,546.69
3.3 plant & machinery 7,290.44 1,472.20 21.43 8,741.21 893.06 507.49 0.32 1,400.23 7,340.98 6,397.38
3.4 Furniture 15.17 37.90 - 53.07 7.98 2.41 - 10.39 42.68 7.19
3.5 Vehicles 24.35 - - 24.35 9.48 4.51 - 13.99 10.36 14.87
Total (3) 9,398.41 2,155.49 21.63 11,532.27 1,076.73 616.77 0.45 1,693.05 9,839.22 8,321.68
4.1 Software 46.35 4.55 - 50.90 21.84 7.86 - 29.70 21.20 24.51
Total (3+4) 9,444.76 2,160.04 21.63 11,583.17 1,098.57 624.63 0.45 1,722.75 9,860.42 8,346.19
Note 5. Investment
31.03.2019 31.03.2018
5.1.1 National Saving Certificate 0.14 0.14
5.2 Unquoted
Non Trade Investment in equity instruments
5.2.1 Sahkari Audhyogik Vasahat LIMITED 0.01 0.01
(1 Share of H500/-)
5.2.2 The Cosmos Co-operative Bank Ltd.
(1000 Equity Shares of H100/- each) 1.00 1.00
Trade Investment in equity instruments
5.2.3 Kriti Auto Engineering & Plastic Private Limited ( 100% Subsidiary ) 1.00 1.00
(3885000 Shares of H10/- each )
Total 2.15 2.15

Note 6. Loans (H in lakhs)
31.03.2019 31.03.2018
6.1 Security Deposits 208.22 179.98
Total 208.22 179.98
Note 7. Other Financial Assets

31.03.2019 31.03.2018
7.1 Fixed deposit with banks having maturity more than 12 months 0.74 41.84
Total 0.74 41.84
Note 8. Other Non Current Assets

31.03.2019 31.03.2018
8.1 Deposit to wholly owned subsidiary company - -
8.2 Met Credit Entitlement 40.46 -
Total 40.46 -
Note 9. INVENTORIES
31.03.2019 31.03.2018
9.1 Raw Material 3,278.54 3,278.23
9.2 Finished Goods 7,538.08 6,018.95
9.3 Stores and Spares & others 493.30 457.36
Total 11,309.92 9,754.53
Note 10. Trade Receivables

31.03.2019 31.03.2018
10.1 Trade Receivables
Unsecured considered good 6,824.15 4,841.01
Total 6,824.15 4,841.01
Trade receivables
Secured, considered good - -
Unsecured, considered good 6,824.15 4,841.01
Trade Receivables which have significant increase in Credit Risk - -
Less: Impairment for trade receivable
Trade Receivables - credit impaired -
Current trade receivables 6,824.15 4,841.01
No trade or other receivable are due from directors or other officers of the Company either
severally or jointly with any other person.Nor any trade or other receivable are due from firm
or private companies respectively in which any director is a partner,a director or a member
other than stated above.
Note 11. Cash and Cash Equivalents

31.03.2019 31.03.2018
11.1 Balances with Banks 1.04 49.56
11.2 Fixed deposit with banks against margin money (Maturity less than 3 months) 113.30 107.92
11.3 Cash on hand 2.69 2.29
Total 117.03 159.77

Note 12. Other Bank Balances (H in lakhs)

31.03.2019 31.03.2018
12.1 Unpaid dividend 16.02 16.30
12.2 Fixed deposit with banks against margin money (Maturity less than 12 months) 1,081.56 972.39
Total 1,097.58 988.70
Note 13. Loans

31.03.2019 31.03.2018
13.1 Unsecured, Considered good 1,495.79 1,132.23
Advances recoverable in cash or kind or for value to be recieved
Total 1,495.79 1,132.23
Note 14. Other Current Assets

31.03.2019 31.03.2018
14.1 Sundry Deposits 28.04 23.28
14.2 Advance Tax/ Tax Deducted at source 19.60 39.80
14.3 CENVAT 16.74 15.52
14.4 Accrued Interest/ Income 60.56 198.35
Total 124.94 276.95
Note 15. Share Capital

31.03.2019 31.03.2018
15.1 AUTHORIZED
15.1.1 80000000 Equity Shares of H1/- each 800.00 800.00
15.1.2 16000000 Optional convertible Preference Shares of H10/- each 200.00 200.00
15.2 ISSUED, SUBSCRIBED AND PAID UP
15.2.1 49603520 equity shares of H1/- each fully paid up. which are issued as fully paid up
Shares on 27.01.2010 on account of scheme of arrangement as approved by the
Hon'ble High Court of M.P. Indore Bench
15.2.2 Reconciliation of shares
15.2.2.1 Opening Balance of 49603520 shares of H1/- each Total 496.04 496.04
15.2.2.2 Issued during the year - -
15.2.2.3 Closing Balance 49603520 shares of H1/- each 496.04 496.04
The Company has issued only one class of shares referred to as equity shares having a par
value of H1 each. Holder of the equity share as referred in the records of the company as
of date of the shareholder's meeting is referred to one vote in respect of each share held
for all matters submitted to vote in the shareholder's meeting. The Company declares and
pays dividends in Indian rupees. In the event of liquidation of the Company the holders of
equity shares will be entitled to receive any of the remaining assets of the Company after
distribution of all preferential amounts.
496.04 496.04
15.3 Shareholder holding more than 5 % of shares of the Company and its percentage
15.3.1 Sakam Trading Private Limited
No. of Shares 25843673 25843673
% of Shares 52.10% 52.10%
Pursuant to the Hon'ble High Court of M.P. order dated 1.11.2011 approving the scheme of
amalgamation of promoter group companies viz Kriti Corporate Services Pvt. Ltd., Kriti Auto
Accessories Private Ltd., Kasta Pipes Pvt.Ltd.and Shipra Pipes Pvt Ltd. with Sakam Trading Pvt.
Ltd., the Shareholding of the above transferor companies are vested in Sakam Trading Pvt.Ltd.
Thus Sakam Trading Pvt.Ltd. becomes holding company w.e.f. 27.02.12 of Kriti Industries (I)
Ltd.
15.3.2 Chetak Builders Private Limited
No. of Shares 4488793 4469258
% of Shares 9.05% 9.01%

Note 16. Reserves & Surplus (H in lakhs)

31.03.2019 31.03.2018
16.1 RESERVES
16.1.1 General Reserve
16.1.1 Opening Balance 3,375.00 3,175.00
167.1.2 Add: Transfer from P&L 50.00 200.00
16.1.3 Add: Transfer from Contingency Reserves - -
16.1.4 Closing Balance 3,425.00 3,375.00
16.2 SHARE PREMIUM ACCOUNT
16.2.1 Opening Balance 466.14 466.14
16.2.3 Closing Balance 466.14 466.14
16.3 Contingency Reserve
16.3.1 Opening Balance - -
16.3.2 Less: Transfer to General Reserve - -
16.3.3 Closing Balance - -
16.4 SHARE FOREFEITURE ACCOUNT
16.4.1 Opening Balance 2.73 2.73
16.4.3 Closing Balance 2.73 2.73
16.5 SURPLUS
16.5.1 Statement of Profit & Loss
16.5.1 Opening Balance 3,281.85 2,658.15
16.5.1.2 Add Profit & Loss during the period 600.67 919.41
3,882.52 3,577.57
Less:
16.5.2 Final Dividend @ H0.15 per share 76.40 78.31
16.5.3 Corporate Dividend Tax 16.21 15.16
16.5.4 Transferred to General Reserve 50.00 200.00
16.5.5 Amortization of Leasehold Land - -
16.5.6 Amortization of Term Loan Fees - -
16.5.7 Other Comprehensive Income (1.46) 2.25
Balance in Surplus 3741.37 3281.85
16.6 Other Comprehensive Income
16.6.1 Opening Balance - 3.08
16.6.2 Movement in OCI as per Last Balance Sheet 0.29 (3.08)
16.6.3 Closing Balance 0.29 -
Total 7635.53 7125.72

Note 17. Financial Liabilities (H in lakhs)
31.03.2019 31.03.2018
17.1 TERM LOAN
( Installment due within 12 months shown in Current Liabilities )
17.1.1 SECURED
17.1.1.1 From Banks
Term of Repayment of Long Term Borrowings
Particulars Total tenure No. of Installment 31.03.2019 31.03.2018
Payable as on 31/03/2018
HDFC 24 Quarterly Installment 15 400.00 600.00
HDFC 21 Monthly Installment 16 0.00 124.44
Yes Bank 9 Quarterly Installment 6 (0.00) 89.98
Yes Bank 6 Quarterly Installment 3 - (0.00)
Yes Bank 16 Quarterly Installment 14 328.13 515.62
HDFC BANK T/L(16.5) 18 Quarterly Installment 1,466.66 -
Total 2,194.79 1,330.04
(Above loans are secured by First charge/ Mortgage on fixed assets of the Company and personal guarantee of Managing Director)
Note 18. Deferred Tax Liability Net

31.03.2019 31.03.2018
18.1 Deferred Tax Liability (Net)
On account of tax effects on timing difference arising due to difference in Depreciation 1,347.25 1,136.28
Total 1,347.25 1,136.28
Note 19. Other Non Current Liabilities

31.03.2019 31.03.2018
19.1.2 Loans & Advances from Related parties
(Long Term Deposit received from Kriti Nutrients Ltd.)
19.1.1 Other Loans and advances 1,033.42 211.52
(Security Deposit received from dealers )
Total 1,033.42 211.52
Note 20. Short Term Borrowings

31.03.2019 31.03.2018
20. 1 Loans repayble on Demand
20.1.1 SECURED
From banks 3,207.65 3,148.51
(Secured by hypothecation of finished goods, Raw material, Stock in process, store and spares, - -
sundry debtors, export bills, receivables and second charge on fixed assets of the Company
and personal gurantee of Managing director)
20.1.2 UNSECURED - -
20.1.2.1 From banks 993.50 678.00
20.1.2.2 From others - 75.00
20.1.2.3 Loans & Advances from Related parties 413.00 210.00
Total 4,614.15 4,111.51

Note 21. Trade Payables (H in lakhs)
31.03.2019 31.03.2018
21.1 Trade Payables
(a) Total outstanding dues of micro enterprises and small enterprises - -
(b) Total outstanding dues of creditors other than micro and small enterprises 12,427.85 9,941.87
Total 12,427.85 9,941.87
Note 22. Others

31.03.2019 31.03.2018
22.1 Current maturities of Long term debt ( Refer point no. of note no. 785.26 882.63
22.2 Unpaid dividends 16.02 16.30
Total 801.28 898.93
Note 23. Other Current Liabilities

31.03.2019 31.03.2018
23.1 Outstanding Expenses 151.84 174.54
23.2 Statutory Liabilities 110.43 103.32
23.3 Employee Payable 245.59 161.19
Total 507.86 439.05
Note 24. Provisions

31.03.2019 31.03.2018
25.1 Provision for Employees Benefits (Bonus) 77.61 68.96
24.2 Provision for Doubtful debts 12.80 12.82
Total 90.41 81.78
Note 25. Revenue from Operations

31.03.2019 31.03.2018
25.1 Sale of Products 58,726.24 46,307.75
25.2 Other operating revenues 39.69 47.21
Total 58,765.93 46,354.96
Note 26. Other Income

31.03.2019 31.03.2018
26.1 Interest Income 128.27 94.20
26.2 Dividend Income - -
26.3 VAT/CST Reimbur 28.30 167.63
26.4 Net gain on sale of Asset - 4.47
26.5 Net loss on foreign currency transactions 38.68 -
26.6 Other Non-operating Income 19.55 34.41
Total 214.80 300.71

Note 27. Excise Duty (H in lakhs)
31.03.2019 31.03.2018
27.1 Excise Duty - 1,725.87
Total - 1,725.87
Note 28. Employee Benefits Expenses

31.03.2019 31.03.2018
28.1 Salaries & Wages 1,958.91 1,563.10
28.2 Contribution to provident and other fund 173.22 98.62
28.3 Staff Welfare Expenses 95.98 73.61
28.4 Director Remuneration 87.36 117.00
28.5 P.F on Director Remuneration 7.20 7.20
Total 2,322.67 1,859.53
Note 29. Financial Cost

31.03.2019 31.03.2018
29.1 Interest Expenses 1,238.75 1,085.76
29.2 Other Borrowing Cost 278.41 216.09
Total 1,517.16 1,301.85
Note 30. Other Expenses

31.03.2019 31.03.2018
(I)
30.1 Stores and Spares Consumed 323.96 280.60
30.2 Power Charges 1,913.09 1,525.64
30.3 Freight & Cartage 612.67 411.05
30.4 Repairs & Maintenance 138.49 152.11
30.5 Insurance Charges 19.87 22.44
30.6 Water Charges 37.71 23.89
30.7 Loss on Sale of Fixed asset 0.51 -
30.8.1 Excise Duty on Closing Stock - -
30.8.2 Excise Duty on Opening Stock - (477.33)
30.9 Job Work Charges 141.19 101.17
30.10 Miscellaneous Manufacturing Expenses 131.54 65.14
Sub Total (I) 3,319.03 2,104.70
(II)
30.11 Stationery & Printing 12.29 10.45
30.12 Computer Expense 5.71 10.76
30.16 Rent, Rates and Taxes 73.42 66.40
30.14 Postage, Telegram and Telephones 18.75 22.31
30.15 Auditor's Fees 3.00 3.00
30.16 Conveyance Expenses 109.48 76.64
30.17 Legal & Professional Charges 193.40 73.95
30.18 Miscellaneous Expenses 44.42 52.98
30.19 Director's Meeting Fee 4.10 2.70
30.20 Net loss on foreign currency transactions - 44.14
30.21 Corporate Social Responsibility 1.60 7.26
Sub Total (II) 466.17 370.59

Note 30. Other Expenses (Contd.)

31.03.2019 31.03.2018
(III)
30.22 Advertisement & Publicity 0.36 0.10
30.23 Sales Promotion Expenses 202.54 248.39
30.24 Market Development Expenses 163.07 138.81
30.25 Brokerage & Commission 12.53 15.01
30.26 Service Charges 96.30 178.51
30.27 Freight Outward 1,256.45 430.36
30.28 Statutory Levies 10.54 320.79
30.29 Travelling Expenses 267.50 168.25
30.30 Bad Debts / Expected credit Loss 5.26 3.78
Sub Total (III) 2,014.55 1,504.02
TOTAL ( I+II+III ) 5,799.75 3,979.32
Note 31. In the opinion of the Board of Directors of the Company, the Current Assets, Loans and Advances have a value realizable in the
ordinary course of business at least equal to the amount at which they are stated and provisions for all known liabilities are adequate and not
in excess of the amount reasonably necessary.
Note 32. Contingent liabilities

32.1 Estimated amount of contracts remaining to be executed on Capital Account H39.02 lakhs net of advance given (Previous Year H229.55
lakhs)
32.2 Bank has given guarantee on behalf of the Company to various parties to the extent of H871.73 lakhs (Previous Year H258.68 lakhs.)
32.3 Claims not acknowledge by the Company on Commercial tax matters H245.63 lakhs (total demand H461.43 lakhs less demand deposited
H215.80 lakhs) (Previous Year 258.44 lakhs).
Note 33. The amount of Foreign Exchange gain/ (loss) included in the profit & loss account is H(38.68) lakhs (Previous Year gain/WW(loss)
H(44.14) lakhs).
Note 34. As per Ind AS 108- “Operating Segment”, segment information has been provided under the Notes to Financial Statement
2018-19 2017-18
(i) Revenue from external customers
With in India 58726.24 46307.75
Outstide India - -
Total 58726.24 46307.75
(ii) Non Current Assets
With in India 10179.17 8619.55
Outstide India - -
Total 10179.18 8619.55
(ii) Details of Revenue from Single customer more than 10% (standalone)
Revenue from 1 customer of Plastics segment amounting to H69.98 crores (previous year 73.18 crores) exceeded 10% of the total revenue of
the Company for FY 2017-18.

Note 35. Earning per Share

The Company’s share capital consists of equity share. The basic and diluted earnings per share is calculated as under:
Sr. Nature of Transaction Current Year Previous Year
No.
1. Number of Shares 49603520 49603520
2. Profit contribution for Basic EPS (H in lakhs) 600.67 919.41
3. Basic Earning Per Share 1.21 1.85
4. Diluted Earning Per Share 1.21 1.85
5. Nominal Value Per Share 1.00 1.00
Note 36. In accordance with the Indian Accounting Standard (IndAS) 24 “Related Party Disclosures” issued by The Institute of Chartered
(Accounts ) Rules, 2014.The names of the related parties and the relevant disclosure is as under:-
(a) Name of the related party and description of relationship:
i. Key Management Personnel:

Shri Shiv Singh Mehta, Chairman & Managing Director
Smt. Purnima Mehta, Executive Director
Shri Kamal kanodia, Chief Financial Officer
Ms. Preeti Shrama, Company Secretary
ii. Relatives of Key Management Personnel

Shri Saurabh Singh Mehta (Son of Chairman & Managing Director / Executive Director)
Smt. Devki Hirawat (Daughter of Chairman & Managing Director / Executive Director)
iii. Subsidiary Company

1) Kriti Auto & Engineering Plastics Pvt. Ltd (Wholly owned Subsidiary Company)
iv Companies/entities under the control of Key Management Personnel

1) Sakam Trading Pvt. Ltd. (Holding Company)
2) Kriti Nutrients Ltd. (Fellow Subidiary)
3) Chetak Builders Pvt. Ltd. (Fellow Subidiary)
4) Sakam Charitable Trust, Indore
The following transaction were carried out with the related parties in the ordinary course of business
(H In lakhs)
Sr. Nature of Transaction Key Management Relatives of Key Companies/entities
No. Personnel Management under the control of Key
Personnel Management Personnel
1 DEPB License purchased NIL NIL 624.99
(NIL) (NIL) (513.55)
2 Sale of Consumable Items NIL NIL 29.84
(NIL) (NIL) (54.68)
3 Sale of Capital Goods NIL NIL 0.00
(NIL) (NIL) (2.00)
4 Purchase of Consumable Items NIL NIL 0.11
(NIL) (NIL) (20.96 )
5 Purchase of Capital Goods NIL NIL NIL
(NIL) (NIL) (NIL)
6 Remuneration 94.56 NIL NIL
(151.99) (NIL) (NIL)

(H In lakhs)
Sr. Nature of Transaction Key Management Relatives of Key Companies/entities
No. Personnel Management under the control of Key
Personnel Management Personnel
7 Rent Paid NIL NIL 14.82
(NIL) (NIL) (15.17)
8 Unsecured Loan
NIL NIL NIL
Given
(NIL) (NIL) (NIL)
Taken 203.00 NIL 815.50
(111.00) (NIL) (NIL)
10 Interest Given 35.30 NIL 30.55
(17.02) (NIL) (NIL)
*The figures mentioned in the brackets are previous year figures.
Note 37. Auditor’s Remuneration

Sr. Auditor’s Remuneration 31.03.2019 31.03.2018
No.
a. Statutory Audit/ Tax Audit Fees 3.00 3.00
b Taxation & Other matters including Legal & Professional Expenses 0.11 0.25
Total 3.11 3.25
Note 38. Previous year figures have been re-classified/re-grouped wherever necessary.
F.R.N. 002150C
M.No. 070906 DIN: 00023523 DIN: 00023632
Place: Indore

Regd. Office: "Mehta Chambers", 34, Siyaganj, Indore - 452 007
ECS MANDATE FORM
I hereby authorize you to make all payments in respect of my holding in your Company to my bankers for crediting to my account as detailed
below:
1. Shareholder's name : ....................................................................................................................................................................................................................................................
(In Blockletters) (First holder)
2. Folio Number/ DPID : ....................................................................................................................................................................................................................................................

and Client ID No. (Joint holder, if any)
3. No. of Shares held : ....................................................................................................................................................................................................................................................
4. Name of the Bank : ....................................................................................................................................................................................................................................................
5. Branch Name and Address :
6. Account type : SB A/c Current A/c Others

(Please specify)
(Please specify)
7. Bank account number : ....................................................................................................................................................................................................................................................
8. IFSC code : ....................................................................................................................................................................................................................................................
9. PAN : ....................................................................................................................................................................................................................................................
10. E-mail ID : ....................................................................................................................................................................................................................................................
I/we hereby declare that the particulars given above are correct and complete. If credit is not effected for the reason (s) of incomplete or
incorrect information. I/we would not hod the Company responsible.
Note: Please attach cancelled cheque issued by your bank relating to your above account for verifying the accuracy of the code number.
Date Signature of the first holder

(as appearing in the Company records)
Certificate of the Investor's bank

Certificate that the particulars of the bank account furnished above are correct as per our records.
Signature of the first holder

(as appearing in the Company records)
PROXY FORM
FORM MGT- 11
[Pursuant to section 105(6) of the Companies Act, 2013 and rule 19(3) of the Companies (Management and Administration) Rules, 2014]
Name : KRITI INDUSTRIES (INDIA) LIMITED

CIN : L25206MP1990PLC005732
Regd office : MEHTA CHAMBER, 34 SIYAGANJ, INDORE-452007 (M.P)
Name of the member (s) :
Registered address :
E-mail Id :
Folio No/ Client Id :
DP ID :
I/We, being the member (s) of ................................................................................................................................ 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: ……………………………………………...........................................................................................................................................................................................
3. Name: …………………………..........................................................................................................................................................................................................................................
Address: ……………………………………………….......................................................................................................................................................................................
E-mail Id: ……………………………………………...........................................................................................................................................................................................
as my/our proxy to attend and vote on a poll for me/us and on my/our behalf at the 28th Annual General Meeting of the Company, to be
held on Wednesday, 14th August , 2019 at 04.00 P.M at 8th Floor, Brilliant Sapphire Plot no.10, PSP, IDA, Scheme No.78, Part II, Indore
(M.P.) and at any adjournment thereof in respect of such resolutions as are indicated below:
Resolutions
1. Consider and adopt Audited Statement of accounts, Reports of the Board of Directors and Auditor.
2. Declaration of Dividend on Equity shares for the financial year ended 31st March 2019.
3. To appoint a Director in place of Mr. Saurabh Singh Mehta (DIN: 00023591), who retires by rotation at this Annual General Meeting
and being eligible offers himself for re-appointment.
4. Revision In The Remuneration Of Shri Shiv Singh Mehta (Din: 00023523) The Chairman & Managing Director Of The Company:.
5. Re-appointment of Mrs. Purnima Mehta (din: 00023632) as the whole-time director of the Company
6. Re-Appointment Of Ca Manoj Fadnis (Din: 01087055) As An Independent Director:
Signed this…..............… day of……...........................… 2019
Affix H1
Revenue Stamp
--------------------------------------------- -----------------------------------------
Signature of shareholder Signature of Proxy holder(s)
Note: This form of proxy in order to be effective should be duly completed and deposited at the Registered Office of the Company, not less
than 48 hours before the commencement of the Meeting.
ATTENDANCE SLIP
R.F. No. ........................................................................................................................................
Mr./Mrs./Miss ...............................................................................................................................................................................................................................................................................................
(Shareholders’ name in block letters)
I/We certify that I/We am/are registered shareholder / proxy for the registered shareholder of the Company.
I/We hereby record my/our presence at the 29th Annual General Meeting of the Company at the registered office the Company at the
Registered office of the Company 14th August, 2019.
(If signed by proxy, his name should be written in block letters)
(Shareholders/proxy’s Signature)
Note:
1. Shareholders / proxy holders are requested to bring the attendance Slips with them when they come to the meeting and hand over
them at the entrance after affixing their signatures on them.
2. If it is intended to appoint a proxy, the form of proxy should be completed and deposited at the Registered Office of the Company at
least 48 hours before the Meeting.
Route Map
Corporate Information
Board of Directors Bankers
Shri Shiv Singh Mehta State Bank of India
Chairman & Managing Director IDBI Bank Ltd.
HDFC Bank Ltd.
Smt. Purnima Mehta Yes Bank Ltd.
Executive Director
Shri Saurabh Singh Mehta Company Secretary

Director Ms. Preeti Sharma
Shri Rakesh Kalra

Registered Office
Independent Director
Mehta Chambers, 34, Siyaganj
CA Manoj Fadnis Indore – 452 007 (M.P.)
Corporate Support Center
Shri Chandrasekharan Bhaskar
Chetak Chambers, 4th Floor, 14 RNT Marg,
Indore – 452 001 (M.P.)
Auditors Share Transfer Agent

Rakesh Kumar & Associates
M/s Ankit Consultancy Pvt. Ltd.
60, Electronic Complex, Pardeshipura,
“Navaratan”, 128-R, Khatiwala Tank,
Indore – 452 010 (M.P.)
Indore – 452 004 (M.P.)
www.kritiindia.com

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BROADBASING

Kriti Industries (India) Limited

Vision Mission Promoters

The Group governance Businesses Presence

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Corporate social responsibility Awards

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571.14 Definition compared with sectoral Value impact

39.21 Definition surplus after operating Value impact

11.69 Definition What this means Value impact

8.45 8.20 Definition accounting for interest and Value impact

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0.33 0.35 Definition What this means Value impact

3.03 2.93 3.04 Definition What it means in FY2017-18 to 2.52x in

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Larger capacity Wider portfolio Increased markets Additional sectors

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MODERN INDIA: FASTEST GROWING GLOBAL ECONOMY

Agriculture a Telecom on the verge City gas distribution

Kriti Industries: Attractive proxy of India’s agriculture sector (through PVC

Growing Modern Widening Large Trusted

Revenue growth faster than India’s

KRITI: EMERGING FLUID TRANSPORTATION SOLUTIONS PROVIDER

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Investing in growth avenues

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The sectoral context

Water-stress Depletion Rain-fed Climate

What makes India’s water sector a nationally-critical growth story

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6 500 60 69.5 7.73

21 100 65 85 Sources: Drought Early

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Outcomes of our business model

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Global economic overview

Indian economic overview

Key Indian government initiatives

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Indian pipes industry overview

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Landmark government schemes

Doubling farm incomes Swachh Bharat Mission

The Company’s overview

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Economy risk Infrastructure spending risk Competence risk

Internal control systems and their adequacy

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RESOLVED FURTHER that Shri Shiv Singh Mehta shall also

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