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Financial
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1. Corporate information
KAJARIA CERAMICS LIMITED
(“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 manufacturer 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 Malutana (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 lac pieces of sanitaryware capacity in Morbi (Gujarat) and 1 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 Basis of Consolidation
The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as at 31 March
2017. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee
and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if
and only if the Group has:
• Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee)
• Exposure, or rights, to variable returns from its involvement with the investee, and
• The ability to use its power over the investee to affect its returns
Generally, there is a presumption that a majority of voting rights result in control. To support this presumption and when
the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and
circumstances in assessing whether it has power over an investee, including:
• The contractual arrangement with the other vote holders of the investee
• Rights arising from other contractual arrangements
• The Group’s voting rights and potential voting rights
• The size of the group’s holding of voting rights relative to the size and dispersion of the holdings of the other voting rights
holders
Notes on the consolidated financial statements
for the year ended 31 March 2017