Annual Report, 2016-17

105

annual

report

16-17

kajaria

ceramics

corporate

overview

management

reports

Financial

statements

Notes on the standalone financial statements

for the year ended 31 March 2017

1. Corporate information

KAJARIA CERAMICS LIMITD (“KCL” or “the company”) is a limited company domiciled in India and was incorporated on 20th

December, 1985. Equity shares of the Company are listed in India on the Bombay stock exchange and the National stock

exchange. The registered office of the Company is located at SF-11, Second Floor, JMD Regent Plaza Mehrauli Gurgaon Road,

Village Sikanderpur Ghosi Gurgaon Haryana - 122001, India.

KCL is the largest manufacturers of ceramic and vitrified wall and floor tiles in the country and 9th largest in the world. The

company started its operation in 1988 with a capacity to produce 1 million sq mtr tiles per annum at Sikandrabad (U P). Today

it has got nine plants with an aggregate capacity of 68.90 million sq mtr per annum – one in Sikandrabad (UP), one in Gailpur

(Rajasthan), one in Malootana (Rajasthan), five in Morbi (Gujarat) and one in Vijaywada (AP).

The company, through its subsidiary Kajaria Bathware Pvt Ltd, has also forayed into manufacturing sanitaryware and faucet. It

has 5.40 million pieces of sanitaryware capacity in Morbi (Gujarat) and 10 million pieces of faucet facility in Gailpur (Rajasthan).

The financial statements of the company for the year ended 31st March 2017 were authorized for issue in accordance with a

resolution of the directors on 15th May, 2017.

2. SIGNIFICANT ACCOUNTING POLICIES

2.1. Basis of preparation

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS)

notified under the Companies (Indian Accounting Standards) Rules, 2015 and the Companies (Indian Accounting Standards)

(Amendment) Rules, 2016.

For all periods up to and including the year ended 31 March 2016, the Company prepared its financial statements in accordance

with Indian GAAP including accounting standards notified under section 133 of the Companies Act 2013, read together with

paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP). These financial statements for the year ended 31 March

2017 are the first being prepared in accordance with IndAS.

The financial statements have been prepared on a historical cost basis, except for the certain assets and liabilities which have

been measured at different basis and such basis has been disclosed in relevant accounting policy.

The financial statements are presented in INR and all values are rounded to the nearest crore (INR 0,000,000), except when

otherwise indicated.

2.2 Significant accounting policies

a. Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current / non-current classification.

An asset/liability is treated as current when it is:

• Expected to be realised or intended to be sold or consumed or settled in normal operating cycle

• Held primarily for the purpose of trading

• Expected to be realised/settled within twelve months after the reporting period, or

• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months

after the reporting period

• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting

period.

All other assets and liabilities are classified as non-current.

The Company classifies all other liabilities as non-current.