Home  »  Company  »  Huhtamaki PPL  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Huhtamaki PPL Ltd.

Dec 31, 2014

1. Terms / Rights attached to equity shares.

The company has only one class of Issued, Subscribed & Paid up Equity Capital having a par value of Rs. 2/- per share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31st December 2014, the amount of per share dividend recognised as distributions to equity shareholders was A 2.80 (31 December 2013 : Rs. 2.80)

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all Preferential amounts. The distribution will be in proportion to the number of equity shares held by the share holders. 31 December 31 December 2014 2013 2. CONTINGENT LIABILITIES

a Excise Duty

Matters in Appeal - Duty 5,016.95 5,202.50

- Penalties 419.52 147.01

Show Cause Notices - Duty 4,014.54 3,703.92

b Service Tax

Show Cause Notices - Service Tax 64.40 49.74

- Penalties 3.26 -

Matters in Appeal - Service Tax 24.10 84.26

- Penalties 14.45 58.12

c Income Tax Demands in Appeal 67.32 -

d Sales Tax Demands in Appeal 178.96 76.91

e Claims against the Company not acknowledged as debts 65.18 65.18

Note for (a) to (e): Future cash outflows / uncertainties, if any, in respect of the above are determinable only on receipt of judgements / decisions pending with various forums / authorities.

3. SEGMENT REPORTING

The Company''s sole business segment is consumer packaging and all activities of the Company are incidental to this sole business segment. Given this fact and that the Company services its domestic and export markets from India only, the financial statements reflect the information required by AS-17 Segment Reporting for the sole business segment of consumer packaging.

Secondary segments for the Company are geographic, namely domestic and exports. Revenue from geographic segments is based on the domicile of customers.

4. Defined Benefit Plans

The Company has classified the various benefit plans provided to employees as under :

I Gratuity Plan

Gratuity is payable to all eligible employees of the Company on superannuation, death and resignation, in terms of the provisions of the Payment of Gratuity Act or as per the Company''s Scheme whichever is more beneficial.

II Leave Plan

Eligible employees can carry forward and encash leave on superannuation, death, and resignation subject to maximum limits as per Company policy.

The following table summarises the components of the net benefit expense recognised in the statement of profit & loss and the funded status and amount recognised in the Balance sheet for the respective plans.

5. EXCEPTIONAL ITEM

Exceptional Income in the previous year comprises of gain realised on sale of office property at Nariman Point,Mumbai of Rs. 704.66 Lacs (Provision for Tax includes Rs. 239.51 lacs towards tax on this gain).

6. EXTRAORDINARY ITEM

Extra-Ordinary Item in the current year, represents Insurance claim for fire at Silvassa Plant during the year 2013. The claim has been settled in January 2015, resulting in surplus of Rs. 627.53 lacs (net of tax of Rs. 323.13 lacs). Out of the total claim an amount of Rs. 228.63 lacs (net of tax of R117.73 lacs) has been received subsequent to the year end.

7. On 8 July 2014, the Company and the Shareholders of Positive Packaging Industries Limited, India (''PPIL''), had entered into a definitive agreement, pursuant to which the Company on 30th January 2015, has acquired 100% of PPIL. This has been completed, after all necessary approvals and for a total enterprise value of Rupees 78,819 lacs inclusive of debt of Rs. 27,917 lacs, subject to closing adjustments.

The Company has funded the above acqusition through the following:-

* Issue of 10,024,744 Equity shares of R.2 each (face value) to Huhtavefa B.V. (''Holding Company'') on Preferential basis in August 2014 at a price of Rupees 134.08 per share. These funds as on 31st December 2014 were temporarily invested in liquid mutual funds.

* Issue of 7% Non-convertible Debentures of Rupees 38,500 lacs on 27th January 2015 on private placement basis to Huhtalux S A R. L. (''Huhtamaki Group entity'')

8. Since the Company Secretary has resigned w.e.f.20 September 2014 and the Company is in the process of appointing a new Company Secretary as required under Section 203 of the Companies Act, 2013, the financial statements have not been signed by a Company Secretary as required by section 215 of the Companies Act, 1956.

9. Previous year figures have been regrouped or reclassified wherever necessary, to conform to this year classifications.


Dec 31, 2013

1 SEGMENT REPORTING

The Company''s sole business segment is consumer packaging and all activities of the Company are incidental to this sole business segment. Given this fact and that the Company services its domestic and export markets from India only, the financial statements reflect the information required by AS-17 Segment Reporting for the sole business segment of consumer packaging.

Secondary segments for the Company are geographic, namely domestic and exports. Revenue from geographic segments is based on the domicile of customers.

2 EXCEPTIONAL INCOME

Exceptional Income comprises of gain realised on sale of office property at Nariman Point, Mumbai during the current year of a 705 Lacs (Provision for Tax includes a 239 lacs towards tax on this gain).

3 Previous year figures have been regrouped or reclassified wherever necessary, to conform to this year classifications.


Dec 31, 2012

A Terms /rights attached to equity shares.

The company has only one class of equity shares having a par value of a2/- per share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31st December 2012,the amount of per share dividend recognised as distributions to equity shareholders was a 2.60 (31 December 2011 : a 2.40)

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all Preferential amounts. The distribution will be in proportion to the number of equity shares held by the share holders.

31 December 2012 31 December 2011

1 CONTINGENT LIABILITIES

a) Excise Duty

Matters in Appeal - Duty 5,099.57 5,013.67

- Penalties 125.58 125.58

Show cause notices - Duty 3,221.53 2,948.66

- Penalties - 0.09

b) Service Tax

Show cause notices - Service Tax 34.47 108.89

Matters in Appeal - Service Tax 74.81 21.05

- Penalties 55.87 0.70

c) Sales Tax demands in appeal 117.24 208.94

d) Income Tax demands in appeal - 54.94

e) Claims against the company not acknowledged as debts 120.83 120.83 Note for (a) to (e): Future cash outflows / uncertainties, if any, in respect of the above are determinable only on receipt of judgments / decisions pending with various forums / authorities.

f) Bank guarantees issued by bankers on behalf of the Company 228.01 148.62

g) Contracts remaining to be executed on capital account 323.04 961.47 and not provided for (net of advances)

h) Letters of Credit issued by banks on behalf of the company 982.72 816.15 for import of goods

i) The company has obtained EPCG Licenses issued under and subject to conditions in Chapter 5 of the foreign trade Policy 2004-2009.These Licenses entitle the company to import Capital goods at concessional rates of Customs duty and accordingly duty concession obtained is Rs 418.54 Lacs ( Previous year Rs 383.15 Lacs).In accordance with the terms of the EPCG License the company has an export obligation of Rs 3,348.34 Lacs (Previous year Rs 3,288.32 Lacs) to be discharged over a period of 8 years. As at the year end the company has discharged export obligation of approximate value of Rs 1,376.03 Lacs (Previous year Rs 862.24 Lacs)

2 SEGMENT REPORTING

The Company''s sole business segment is consumer packaging and all activities of the Company are incidental to this sole business segment. Given this fact and that the Company services its domestic and export markets from India only, the financial statements reflect the information required by AS-17 Segment Reporting for the sole business segment of consumer packaging.

(iii) Defined Benefit Plans

The Company has classified the various benefit plans provided to employees as under :

I Gratuity Plan

Gratuity is payable to all eligible employees of the group on superannuation, death and resignation, in terms of the provisions of the Payment of Gratuity Act or as per the Company''s Scheme whichever is more beneficial.

II Leave Plan

Eligible employees can carry forward and encase leave on superannuation, death, and resignation subject to maximum limits as per Company policy.

III Long Service Award

Long Service Award benefit is payable to eligible employees who leave after completion of 20 years of service.(31 December 2011 - 25 years)

The following table summarizes the components of the net benefit expense recognised in the profit & loss account and the funded status and amount recognised in the Balance sheet for the respective plans.

3 LEASES

The Company has taken certain Office Premises and residential facilities under Operating Lease arrangements. All the lease agreements are cancellable and there are no restrictions imposed by lease arrangements. There are no sub leases.

4 EXTRAORDINARY ITEM IN THE PREVIOUS YEAR COMPRISE OF :

Insurance claim of Fire at Thane Plant was settled, resulting in surplus of a 294.17 Lacs (Net of Income Tax of a 141 Lacs)

5 Till the year ended 31 December 2011, the Company was using pre-revised schedule VI to the Companies Act, 1956 for preparation & presentation of its Financial statements.

During the year ended 31 December 2012 the revised schedule VI notified under the Companies Act, 1956 has become applicable. The Company has reclassified the previous year figures to conform this year''s classification.


Dec 31, 2009

1 SECURED LOANS

Working Capital Loans from Banks are secured by hypothecation of inventories, book-debts and bills.

2 SEGMENT REPORTING

The Companys sole business segment is consumer packaging and all activities of the Company are incidental to this sole business segment. Given this fact and that the Company services its domestic and export markets from India only, the financial statements reflect the information required by AS-17 Segment Reporting for the sole business segment of consumer packaging. The entire business assets of the Company are situated in India.

3 RELATED PARTY TRANSACTIONS

a) Related party where control exists :

Ultimate Parent Company Huhtamaki Oyj., Finland

Holding Company Huhtavefa B.V., Netherlands

b) Other Related Parties with whom transactions have taken place during the year:

Fellow Subsidiaries Huhtamaki New Zealand Ltd., New Zealand.

Huhtamaki Vietnam Ltd,

Vietnam Huhtamaki Australia Ltd.,

Australia Huhtamaki Deutschland Gmbh and Co.KG.,

Germany Huhtamaki Finance B.V.,

Netherlands Huhtamki South Africa Ltd.,

South Africa Huhtamaki Singapore Pte.Ltd.,

Singapore Huhtamaki (Thailand) Ltd., Thailand

c) Key Managerial Personnel

Mr. Suresh Gupta

Managing Director and Chief Executive Officer

Mr. C.N.Murthy

Executive Director and Chief Operating Officer

d) Relatives of Key Managerial Personnel

Mr. Suresh Gupta

Brig.V.P.Gupta-Father,

Mrs.Manmohini Gupta-Mother,

Mrs.Kumkum Gupta-Wife,

Ms.Ratna Gupta-Daughter,

Ms.Shivani Gupta-Daughter

Mr.Suresh Gupta as Excecutor of Jyoti Trust and Geeta Trust.

Mrs.Jayanthi Murthy-Wife

Mr. C.N.Murthy

4 CONTINGENT LIABILITIES

31 December 2009 31 December 2008

i) Excise Duty

a Matters in Appeal - Duty 497,382 497,382

- Penalties 7,148 7,148

b Show cause notices- Duty 225,242 189,392

- Penalties 1,179 776

ii) Customs Duty demands in appeal - 133 iii) Service Tax show cause notices 4,065 1,700

- Penalties 88 --

iv) Service Tax appeal - Service Tax 4,143 2,528

- Penalties 136 70

v) Sales Tax demands in appeal 22,998 19,546

vi) Claims against the company not acknowledged as debts 6,288 6,288

5 The Company has availed of unsecured interest free Sales tax deferred loan from the Government of Andhra Pradesh for its Hyderabad (Bollaram) factory, in accordance with their sales tax deferral scheme. 225,309 225,309

The above amount is repayable after 14 years from the date of availment of the loan. The first due date for repayment is 1 April 2011.

(iv) General Descriptions of significant defined benefit plans

I Gratuity Plan

Gratuity is payable to all eligible employees of the Company on superannuation, death and resignation, in terms of the provisions of the Payment of Gratuity Act or as per the Companys Scheme whichever is more beneficial.

II Leave Plan

Eligible employees can carry forward and encash leave on superannuation, death, and resignation subject to maximum accumulation of 90 days.

III Long Service Award

Long Service Award benefit is payable to eligible employees on completion of 25 years of service.

6 Previous year figures are appropriately reclassified to conform with current years classification.



 
Subscribe now to get personal finance updates in your inbox!